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8 Cards in this Set
- Front
- Back
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What are the two control techniques used by direct marketers?
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Testing
Budgeting |
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In Direct Marketing, what is being tested?
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Testing a campaign against a control campaign, and measurment (on a small scale) of the performance of individual campaign elements in order to maximize returns on rolled out full marketing campaigns
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What are the four biggest reasons to test dm campaigns?
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Minimize financial risks
Not subjecting all existing customers to a campaign that has not been tested Stimulate creativity - beat the control Understand the customer better |
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What are the important variables in testing?
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Target Audience
Offer/Creative Media |
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L=k*SQR(R/100-R))/N
This formula relates sample size to uncertainty. What do the different symbols stand for? |
L=limits to error
K=Confidence Level R=Response % obtained from test N=Sample Size |
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What is the formula for sample size?
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N=((R(100-R))*k^2/L^2
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What are the necessary tasks in testing and budgeting?
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Decide what to test? (which lists, what media, etc)
Determine total test budget Determine the number of responses required to achieve target Determine the estimated target response rates Decide which tests to implement Determine ROI for each test Roll out the test with highest ROI |
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What are some typical media types or lists that DM'ers test?
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Direct Mail to existing customers
Direct Mail using lifestyle lists Direct Mail using Mail order lists Telemarketing to existing customers Magazines DR TV DR Radio |
