direct marketing in the publishing business

Together, We Can

Direct Marketing in the Publishing Business

Goethe Insitut Cairo14th to 15th of June

Michael Freter

Together, We Can

A personal introduction

Master of economic geography Corporate culture vs. corporate identity vs. corporate image

WEKA International Data Group Verlag Neue Wirtschafts_Briefe LexisNexis Germany (Reed Elsevier) Reed Exhibition (Reed Elsevier)

= Me

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Who are you?

Name Company Function and role Your questions

= YOU ?

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Objectives

• Discuss with you the different Media Types• Discuss with you how to develop new products with the market• Discuss with you all the different direct marketing channels

– Pros and Cons– Future

• Discuss how to test effectively

• How to use different DM channels together

• How does Direct Marketing work from a customer point of view?

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Media Types

Which Media Types do you use?

I need your help!

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LexisNexis Online

• 34 years online experience

• 99,996% available

• >2 Mio. searches per day

• 55 Mio. new documents per month

1973

2007

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LexisNexis Wirtschaft

Täglich aktuelle und hochwertige Informationen für zuverlässige Business-Entscheidungen.

In über 32.000 Quellen und rund 5 Milliarden Volltext-Dokumenten:

- Informationen zu über 13 Mio. Unternehmen aller Branchen weltweit

- Zugriff auf mehr als 150 deutsche Presseerzeugnisse sowie die wichtigsten internationalen Medien

- Medienbeobachtung: Wir beobachten täglich bis zu 30.000 Presseartikel und liefern alle Ergebnisse zu individuellen Suchbegriffen

LexisNexisWirtschaft

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Growing competition!

News & Business

Risk Management

Free Websites

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Content

• Codes & Cases

• LexisNexis-commentary

• RechtsNews

• CD-Products

OwnContent

Content-partner

National International

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LexisNexis Germany

Legal MarketTarget Group:

Lawyers, tax advisers, corporate councils

Public SectorTarget Group: communities, ministry, justice,

associations, universities

Health MarketTarget Group:

Health insurances

CorporateTarget Group: Insurance companies, companies

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Growing Specialisation

• Smaller Target Groups force more individualisation (Mediatypes)

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Change in the market of special interest

Quelle: Diebold

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Value Chain

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Digital Media-Management

Schaffung,Redaktion undDigitalisierungvon Inhalten

Text & Pict

Video/Film

Audio

Web

Rezipient

privater

business

RezipientRezipient

privater

business

Vermarktungvon Inhalten

Darstellungvon Inhalten

Distribution

Usage

RezipientContent Usage everywere at any time on each client

PC

Handy

Web-Tablet

PDA

Lagerung von Inhalten

Distributionvon Inhalten

Media neutral production

Network Publishing:

Media House

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Times are Changing

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Today…

• Cost pressure in Sales and Marketing• Decreasing response rates in Direct Mail• Decreasing response rates and increasing legal issues in

Telesales• Reacting booksellers (not pro active)• Increasing consulting needs on client side• Pricing issues on clients side • Saturated markets Märkten smaller target groups

smaller circulations or subscriber base• Growing dominance of internet as a sales channel• Changing behaviour of target groups

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Conclusion

It is compelling for product development…

… market knowledge

… in depth knowledge of target group

… knowledge about media types and there pros & cons

… internal knowlwdge

… having a methodology for product development

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Media Types

How do you develop products?

I need your help!

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The Process in Steps

1. Idea

2. Prioritze

3. Concept

4. Decision

5. Production/ Marketing / Sales / Distribution

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1. Finding of Ideas

• Methodology: Market Research, Medienanalyse (ZS,), Expert Interviews, Authors, Competition, Industry-Analysis…

• Responsibility: Editor in Chief• Instruments: Project-Team, List of ideas, Product

development plan

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Product Development

• What is your Target Group?• How is your target group working?• What is the need of your target group?• What is the content?• How is the content presented?• Which media type?• Which sales arguments?• The USP?• The price and offer?

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Product Development

Content of Concept:

1. Target Group (Customer First)

2. Behaviour of Target Group

3. Interest (Needs of the Customer)

4. Content (Topics)

5. Form (Layout, Type)

6. Media (Technical Platform)

7. Sales Channels

8. USP

9. Order (Price)

SALES

MARKET MANAGER

MARKETING

TEAM-Building

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Target Group „Lawyers“

LargeLawfirms(30 +)

MidsizeLawfirms(5 - 29)

SmallLawfirms(1 - 4)

Corp. Councels

PublicInstitutions

Notaries TaxAdvisers

Universities

No. Of firms 70 2,200 56,700 n/a n/a n/a 40,000 n/a

No. Lawyers/Potential Users

6,700 16,300 78,000 43,000 57,000 10,000 70,000 n/a

Market Penetrationpaid servicesOnline-db

80% 25% 5% 30% 30% n/a n/a n/a

Information Budget p.a.

€15m €33m €143m €85m €61m €15m €30m €13m

Invest per lawyer p.a.

€2,200 €2,000 €1,800 €2,000 €1,100 €1,500 €400 n/a

Share 4% 8% 36% 22% 15% 4% 8% 3%

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Top Law Firms in Germany

Top Kanzleien in Deutschland

Kanzlei Anzahl Anwälte Kanzlei Anzahl Anwälte

Freshfields Bruckhaus Deringer

Clifford Chance Pünder

Linklaters Oppenhoff & Rädler

Luther Menold

CMS Hasche Sigle Eschenlohr Peltzer Schäfer

Lovells Boesebeck Droste

Haarmann Hemmelrath

Rödl & Partner

Beiten Burkhardt Goerdeler

Taylor Wessing

Gleiss Lutz

Hengeler Mueller

White & Case, Feddersen

Nörr Stiefenhofer Lutz

Baker & McKenzie

PricewaterhouseCoopers Veltins (Heussen)

Graf von Westphalen

Heuking Kühn Lüer Wojtek

Allen & Overy

Shearman & Sterling

Buse Heberer Fromm

Graf von Westphalen Bappert & Modest

Heuking Kühn Lüer Wojtek

Shearman & Sterling

Allan & Overy

519

425

354

340

308

281

244

216

210

206

201

192

180

173

168

157

135

131

131

126

121

113

106

101

96

Norton Rose Vieregge

Arcon

Göhmann Wrede Haas Kappus & Hartmann

Görg

Gassner Stockmann & Kollegen

Redeker Sellner Dahs & Widmaier

Mayer Brwon Rowe & Maw Gaedertz

Raupach & Wollert-Elmendorff

Latham & Watkins Schön Nolte

Ashurst Morris Crisp

Kappelmann und Partner

Cornelius Bartenbach Haesemann & Partner

Flick Gocke Schaumburg

Fritze Paul Schmitt

Bardehle Pagenberg Dost Altenburg Geissler Isenbruck

Dr. Eick & Partner

Schwarz Kurtze Schniewind Kelwing Wicke

Becker Büttner Held

Heiermann Franke Knipp

Janoes day Reavis & Pogue

Coudert Schürmann

Hölters & Elsing

Wilmer, Cutler & Pickering

P + P Pöllath + Partner

90

81

67

66

65

61

60

59

57

56

56

54

54

50

50

49

49

48

48

48

46

46

44

42

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Product Development

• What is your Target Group?• How is your target group working?• What is the need of your target group?• What is the content?• How is the content presented?• Which media type?• Which sales arguments?• The USP?• The price and offer?

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How to sell publishing products withDirect Marketing

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Objectives• Discuss with you all the different direct marketing channels

– Pros and Cons

– Future

• Discuss how to test effectively

• How to use different DM channels together

• How does Direct Marketing work from a customer point of view?

• Conclusion

I need your help!

Together, We Can

LexisNexis communication to the market via…

• Direktmarketing– Use of „classic marketing tools“ with response-elements

• Field Sales Force– Team segmentation by market

• Trade– Book sellers

• PR

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Quick Direct Marketing Media DiscussionB2C B2B Future?

Direct Mail Dying a death as a targeted medium – increasingly used as mass-market medium

Still highly relevant in combination with tele-marketing/sales support

If in B2C the price to target niches does not come down: no change and further use as mass-market medium

Telemarketing TPS has made effective use impossible

Highly relevant and useful Smart linkage with Direct Mail and building integrated campaigns

Door drops If DMA does not come up with a practice – councils will

Not relevant Opt-in medium via mailbox sticker?

Press inserts Still affordable for predominantly financial services companies

Not relevant The environment?

Press Effectiveness highly variable Trade press still very powerful Integrated campaigns?

TV Only effective for charities and companies who cannot identify their customers easily (and make disproportionate profits on 1 customer)

TV environment in Europe not suited yet for this

More American environment?

Field Marketing Effectives from sales perspective, not from usage perspective

Trade-shows/presentation important sales toolkit – although effectiveness not always measures

Developing markets?

E-mail marketing Difficult to scale up… Can be very effective with use of other campaigns

?

Banner advertising Behavioural targeting To be developed…. More usage by B2B?

Search engine marketing Role of integrators? Untapped market for paid for search?

?

………….

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How to test effectively?• Work-out your required samples sizes and model response before testing

– If you get < 2000 responses, difficult to start drawing conclusions– Implication that B2B testing can be quite a challenge

• Set up the right system/processes to track response– This is where most testing campaigns fall down

• Do not switch off common sense/business intuition– Purity of testing very attractive/academically satisfying for highly analytical work environments

• Some media not suited for testing on a single publication/mail-shot– Variability of press inserts and press is very high– Implication is to test longitudinally

• Data over longer periods of time probably more insightful– Implication for search engine marketing?

• …………………….

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Multichannel-Marketing

• More new channels in the last years (i.e. Second Life)• Identify channels that are used by the client• High correlation between main channels (ecc-Study 2006)

Integrated communication, the combination of Offline and Online communication leads to market share

No customer is using just one channel! (i.e. multi step concept LexisNexis)

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LexisNexis Kommunikationskanäle

• Direct Mail Direktverkauf, Leadgenerierung• Telesales Direktverkauf• Buchhandel Mittlervertrieb• Anzeigen Branding, Mehrstufenkonzepte• Internet Leadgenerierung, Direktverkauf• Coop Leadgenerierung, Direktverkauf• Events Branding, Direktverkauf• Direct Sales Direktverkauf über AD

The client comes on many ways!

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Test us 4 weeks!FREE without any risk!

Für weitere Fragen zu unseren unterschiedlichen Online-Datenbankenoder bei Interesse an einer persönlichen Präsentationen in Ihrer Kanzlei stehe ich Ihnen gerne jederzeit zur Verfügung:

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Campaign Objectives

• Branding• Generate leads• Direct Sales• Generate test clients (positive-/negative-option)

Meaning of single campaign is decreasing!Multistep concepts increasingInternet takes the lead

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How to test effectively?• Work-out your required samples sizes and model response before testing

– If you get < 2000 responses, difficult to start drawing conclusions– Implication that B2B testing can be quite a challenge

• Set up the right system/processes to track response– This is where most testing campaigns fall down

• Do not switch off common sense/business intuition– Purity of testing very attractive/academically satisfying for highly analytical work environments

• Some media not suited for testing on a single publication/mail-shot

– Variability of press inserts and press is very high– Implication is to test longitudinally

• Data over longer periods of time probably more insightful– Implication for search engine marketing?

• …………………….

My biggest learning in the context of testing:

Don’t get too hung up about the testing process. You can lose yourself easily in complexity/academics…

But there is always room to improve a campaign……

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How do Direct Marketing Media

work from a consumer

Perspective?

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What is effecting the behaviour of consumers in 2007?

• Busyness• Cognitive overload

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Cognitive Overload

• 20th Century: clutter

• 21st Century: cognitive Overload

• You can’t cut through clutter because clutter not really relevant anymore…

• But you can overcome cognitive overload

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• Busyness• Cognitive overload• Cognitive lock-in

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Cognitive Lock-in

• “Stickiness” of internet bank customers higher than non-internet users

• Same is true of the physical world (e.g. supermarkets loose business when they re-arrange things)

• Implications for customer retention activities: keep things comfortable and familiar, manage change carefully

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• Busyness• Cognitive overload• Cognitive lock-in• Post-Literacy

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The 21st Century Direct Marketing Media paradox

• How to adapt a very much verbal medium to an increasingly post-literate culture?

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• Busyness• Cognitive overload• Cognitive lock-in• Post-Literacy• Consumer concerns

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Some Consumer Concerns

• Control• Contact• Comfort• Context• Change• Cynicism• Complexity

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As a result of stress…

• Brand-literacy is key, especially, in customer communications…brand loyalty is a stress-reduction strategy on the part of consumer

• Communications must be clear, simple, straightforward, direct and most of all iconic: stress compromises attention spans

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The Brain

• Right hemisphere: involuntary, instant pattern recognition

• Left hemisphere: voluntary, linear, decisional

• The right hemisphere has to be engaged in order to generate attention and response

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The Brain

• Brain’s Right Hemisphere

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The Brain

• Brain’s Right Hemisphere… Icons

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Systematic use of icons…

• Can translate left hemisphere media (i.e. direct mail) into right hemisphere terms

• Can overcome cognitive overload

• Can squeeze out higher response rates in saturated direct marketing environment

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4 Kinds of Icons

1. Graphic

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♫

Graphic Icons

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A quick personal introduction

BBA/MSc in sociology Corporate culture vs. corporate identity vs. corporate image

Unilever INSEAD MBA Quick de-tour in management consulting Capital One Board Director of DMA (Direct Marketing Association)

LexisNexis (Reed Elsevier)

= Me

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= Me

Where did you look at on this slide?

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= Me

Where did you look at on this slide?

Implication = consider carefully how to use pictures/graphics in the light of the objectives of your campaign

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4 Kinds of Icons

1. Graphic

2. Numerical

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£49.95 vs. £50.00

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£5000 vs. £5000.00

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4 Kinds of Icons

1. Graphic

2. Numerical

3. Verbal

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Verbal Icons

• Yes• You• More • No• At last!• Best• New

• Finally• Big• Free• How to• Great• Now• Why

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When possible use Right Hemisphere words…

• “New”, not “Introducing”

• “Now”, not “Currently”

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What is the single most important verbal icon in

addressable media?

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What is the single most important verbal icon in

addressable media?

The person’s name!

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4 Kinds of Icons

1. Graphic

2. Numerical

3. Verbal

4. Personal

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Personal Icons

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As a result of stress, all marketing communications…

• Must be clear, simple, straightforward, direct and most of all iconic: stress compromises attention spans

• Must be consistently branded: brand loyalty is a stress-reduction strategy on the part of the consumer

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Some insights in average duration windows for Direct Mail

• Prospects: 7 seconds

• Customers: 12 seconds

• B-2-B Prospects: 10 seconds

• B-2-B Customers: 15 seconds

Source: USA DMA research 2004

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Evaluating Marketing Communications

• If it doesn’t get a strong benefit message across in a hurry, throw it out

• If it doesn’t have a strong call to action, question it

• Is the creative non-interchangeable with competitors?

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Evaluating Marketing Communications

• If it doesn’t get a strong benefit message across in a hurry, throw it out

• If it doesn’t have a strong call to action, question it

• Is the creative non-interchangeable with competitors?

• Can the branding be easily understood?

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The 4 Key Parts of the body for Direct Marketing Media

1. Brain’s Right Hemisphere

2. Eye

3. Hand

4. Brain’s Left Hemisphere

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Deconstructing every element of your campaign will help driving maximum response – for example the elements of a direct mailing

1. Front of outer envelope

2. Back of outer envelope

3. Response form

4. Above salutation in letter

5. First line, first paragraph of letter

6. P.S.

7. Front of brochure

8. Back of brochure

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• Brain’s right hemisphere …….Icons

• Eye……………………………..Surfaces/Screen

• Hand…....................................Tactile Involvement

• Brain’s left hemisphere……….Specificity

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What are the “so-what’s?” of today?• Think of the left and right brain hemisphere influence

– Use of humour in direct mail?– Use of pictures/graphics in direct mail/e-mail?

• Do not confuse “beauty” with “effectiveness”– Agencies generally like more conceptual and likeable communication– Ask yourself what you want to achieve and what the objectives are

• There is no easy answer around campaign integration– That’s why combining analytics with creativity/business intuition is key in my

opinion

• Set clear targets for a campaign, evaluate and improve– My experience that you can always improve at least 20%

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BRANDING

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Germany Website

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Value Proposition

The value proposition is defined as an implicit promise a company makes to its customers to deliver a particular combination of

values’.

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Solution Lines

Small Law

Research Solutions- LN Base Portal- LNR Premium

- Focussed Portals

Client Development- Anwalt24

Print (ZAP)

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Example: Lawyers Weekly

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Product Family

Product Family Research Solutions for Small Law

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The End

direct marketing in the publishing business

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