media in direct mrkng

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Success in DirectSuccess in Direct

MarketingMarketingIng. Janka Petrovičová, PhD.Ing. Janka Petrovičová, PhD.

Faculty of EconomicsFaculty of EconomicsMatej Bel UniversityMatej Bel University

Department of CorporateDepartment of CorporateEconomics and ManagementEconomics and Management



Success in DM -Success in DM -

1.Product1.ProductTraditional marketing questions:Traditional marketing questions:

Is there a need for a product?Is there a need for a product?

Is it practical and unique or exclusive at the same time?Is it practical and unique or exclusive at the same time? Is the product new (or would it be considered as a newIs the product new (or would it be considered as a newproduct?)product?)

Is it possible to chart/show the product interesting?Is it possible to chart/show the product interesting? Does it have specific features which can makeDoes it have specific features which can make

advertisement more interesting?advertisement more interesting?

Is it possible to distribute it easily?Is it possible to distribute it easily?

Is there a potential to be wrapped nicely?Is there a potential to be wrapped nicely? Has it been consumed during the consumption?Has it been consumed during the consumption? Is it under the fashion or season influence?Is it under the fashion or season influence? Is it normally available in common shops?Is it normally available in common shops?



Factors Influencing theFactors Influencing the

ImageImage Current productsCurrent products Quality of new productsQuality of new products

Price levelPrice level Presentation levelPresentation level Cover of the productsCover of the products

Level of the next communication withLevel of the next communication withthe customersthe customers

PR of the firmPR of the firm



SuccessSuccess in DM – 2.in DM – 2.

Segmentation andSegmentation and

PositioningPositioning

Tendency of theconsumers to generate

groups which consumer behaviour is relativelyhomogeneous

Fixation of product or service

supply which will take noticeableand worthy place in the mind of

consumer at the target market

Methods of customer

classification:

ABC analysis

Customer portfolio

Classification key

Customer value

Scoring models

= creative, psychological

decision making processrelating with differentiation

Emphasizing the features which

distinguish product (supply)

from the competition



SuccessSuccess in DM –in DM –

3.Supply3.Supply Price – price tacticsPrice – price tactics Order – post return, telephone, fax, e-mail,Order – post return, telephone, fax, e-mail,

smssms

Transport and manipulation – post and packing Transport and manipulation – post and packingratesrates Selling quantity – different packingSelling quantity – different packing Attributes variability – adaptation according toAttributes variability – adaptation according to

the customer needsthe customer needs

Buying conditions – cash, loanBuying conditions – cash, loan Stimuli – gifts, competitions, discountsStimuli – gifts, competitions, discounts Limitations – time, quantityLimitations – time, quantity GuarantiesGuaranties



Basic Forms of SupplyBasic Forms of Supply

Free informationFree information

Free-of-charge trialFree-of-charge trial

Determined purchaseDetermined purchase

Until restrictionUntil restriction

Yes-noYes-no

Time limitTime limit

Tell and gain a friendTell and gain a friend

CompetitionCompetition

DiscountsDiscounts

Negative limitNegative limit

Positive membershipPositive membership

Life membershipLife membership

Load everythingLoad everything

Free giftFree gift

Gift with paying by cashGift with paying by cash

Added supplyAdded supply

Luxury alternativeLuxury alternative

PrivilegePrivilege

Guaranty of redemptionGuaranty of redemption

MultiproductMultiproduct

Small addingSmall adding

Supplemented supplySupplemented supply

Good-better-bestGood-better-best

Optional term of repay abilityOptional term of repay ability



Success in DM – 4.Success in DM – 4.

MediumMedium

First-hand contactFirst-hand contact

1. Personal selling1. Personal selling Indirect contactIndirect contact

2. Printed media2. Printed media

- Direct mailDirect mail- Catalogues and catalogueCatalogues and catalogueexhibitoryexhibitory hallhall

- Magazines and newspapersMagazines and newspapers- CouponsCoupons3. Electronic media3. Electronic media

- BroadcastBroadcast- Television Television- Telecommunication devices Telecommunication devices

(telephone and fax)(telephone and fax)- Electronic media/holdersElectronic media/holders

(floppy disc, CD ROM, DVD)(floppy disc, CD ROM, DVD)-

PC networksPC networks

Product substance

Segment achievement/availability

Campaign budget

Medium effectiveness

•Personal selling

•Direct mail selling

•Catalogue selling

•Telemarketing

•Teleshopping

•Broadcast

•Kiosk selling

•On-line marketing

Form

sofD

irec

t

Mark

eting

Mediase

lecti o

n

Mediaselecti o

n

depend

on:

depend

on:



Personal SellingPersonal Selling

Process of identifying needs and desires of potentialProcess of identifying needs and desires of potentialcustomers and the way of product presentation whichcustomers and the way of product presentation which

motivates to purchasemotivates to purchase

1. Firm's premises:1. Firm's premises: Special equipped ones for ´product presentationSpecial equipped ones for ´product presentation Common premises for sellingCommon premises for selling Within expositions and trade fairsWithin expositions and trade fairs

2. Customer's premises:2. Customer's premises: In householdIn household In firmIn firm

3. Neutral premises:3. Neutral premises: RestaurantRestaurant Coffee-bar Coffee-bar

Club etc.Club etc.



Personal selling (processPersonal selling (process

and communication)and communication)

1.1. Searching for customer Searching for customer

2.2. Meeting negotiationMeeting negotiation

3.3. Needs investigationNeeds investigation

4.4. Providing with informationProviding with information5.5. Product presentationProduct presentation

6.6. Objections overcomingObjections overcoming

7.7. Explaining of product keeping andExplaining of product keeping and

maintenancemaintenance8.8. Guaranties confirmationGuaranties confirmation

9.9. Business contractionBusiness contraction

10.10. Image and reputation reinforcementImage and reputation reinforcement

MLM



Printed Media-DirectPrinted Media-Direct

mailmail

Written dialogue between seller and purchaser Written dialogue between seller and purchaser

1. Decision about direct mail content

2. Personal letter composition - content

3. Creative substantiation of direct mail (format, colourity,

graphics, weight)

4. Testing of particular components

5. Campaign completion

6. Campaign evaluation

• associated (compound) mailing

•addressless spread mailing



Direct mail designDirect mail design

Consists of Consists of :: envelope + personal letter + return + another onesenvelope + personal letter + return + another ones

(coupon, gift, sample)(coupon, gift, sample)

Letter layout and design:Letter layout and design:

Personal titlePersonal title

Similar lettering like typewriter Similar lettering like typewriter Align leftAlign left

Short sentences and paragraphsShort sentences and paragraphs

Handwriting signature by fountain-penHandwriting signature by fountain-pen



Direct mail - pros and consDirect mail - pros and cons

Direct mailDirect mail advantagesadvantages:: Fast feedbackFast feedback Convenient also for Convenient also for

potential customerspotential customers Database building-upDatabase building-up Break even pointBreak even point

calculationcalculation Possibility to accostPossibility to accost

customers in distantcustomers in distantareasareas

Easy internationalEasy internationaladaptationadaptation

Simple distributionSimple distribution Not much expensiveNot much expensive

Direct mailDirect mail disadvantagesdisadvantages::

One/two productsOne/two products

Highly risky purchaseHighly risky purchase

i d diP i d M di



Printed Media-Printed Media-

MagazinesMagazines

1. Magazines sorting1. Magazines sorting

(intuition, product segmentation)(intuition, product segmentation)

2. Magazine selection2. Magazine selection

(price leader)(price leader)3. Creative substantiation of advertising3. Creative substantiation of advertising

(largeness, colourity, placement)(largeness, colourity, placement)

4. Timing4. Timing (new products, seasonal products, another ones)(new products, seasonal products, another ones)

5. Frequency5. Frequency Whole group

revaluated + new added ones

leaders

segmentation



Printed Media-Printed Media-

NewspapersNewspapers

Differences in comparison with magazines:Differences in comparison with magazines: Advertising priceAdvertising price

More frequent periodMore frequent period

FocusingFocusing Internal structureInternal structure FormatFormat

Paper qualityPaper quality

The process is the same like with magazines!!!The process is the same like with magazines!!!

+ differences concern (placement, colourity,+ differences concern (placement, colourity,

timing, frequency)timing, frequency)



Printed Media-CouponsPrinted Media-Coupons

Written authority of the holder forWritten authority of the holder forcertain bonuses by productcertain bonuses by product

purchase (price discounts, free of purchase (price discounts, free of charge transport, present..)charge transport, present..)

Besides the promotion function itBesides the promotion function it

serves also like a tool of dataserves also like a tool of datacollection for marketingcollection for marketingdatabasesdatabases



Printed media-Printed media-

Catalogue sellingCatalogue selling

Catalogue

A list of complete or chosen

assortment with the precise

description and visual display

of the goods, determined

price conditions and

possibility to order product

Catalogue exposition hall

A sale unit, which sells

branded goods for lower

prices then the other shops

• Universal / special ones

• Paid / Free of charge

• Year / Seasonal/ Occasional

•Areas with high purchase density

•Products with high margin



Catalogue selling-prosCatalogue selling-pros

and consand consAdvantages of catalogues:Advantages of catalogues: Well-informedWell-informed Fast responseFast response

Broad supplyBroad supply Database buildingDatabase building From one catalogue moreFrom one catalogue more

customerscustomers Customer keepingCustomer keeping

Easy distributionEasy distribution Effective communicationEffective communication Fast break-even-point calculationFast break-even-point calculation Possibility to contact customers inPossibility to contact customers in

distant areasdistant areas

Easy international adaptationEasy international adaptation

Disadvantages of catalogues:Disadvantages of catalogues:

Rather expensiveRather expensive

Difficult actualizationDifficult actualization

media in direct mrkng

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