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Direct MarketingDirect MarketingDirect MarketingDirect Marketing

Chapter 9 & Chapter 10Chapter 9 & Chapter 10

陈珊婷陈珊婷0730803007308030

王冬梅王冬梅0730803207308032

邓慧娴邓慧娴0730803907308039

罗丹丹罗丹丹0730806407308064

LOGO

Chapter 9

Creating and marketing catalogues

Prepared by: 王冬梅 陈珊婷

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Learning Objectives

This chapter gives an overview of the main issues involved in the preparation and use of catalogues by direct marketers.

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SummarySummary

IntroductionThey won’t buy if they don’t read it

Why customers want catalogues

Catalogues objectives

Space allocation

Catalogues design

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Introduction

This Marketing catalogues is a marketing activity that marketers using catalog as the carrier to spread information, and distribute to target customers by direct-mail to gain a direct response from them.

Strictly speaking, catalogues just a specific form of direct mail marketing rather than an independent direct marketing media.

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http://www.m18.com/Catalog/091105_f90711/flash.html

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Why customers want catalogues

Customers buy from catalogues for a variety of reasons including:

Saving money

Being assured they made the right purchase decision

More profitable operations

Getting something free

Finding ideas for solutions to problems

Convenience

Obtaining something exclusive

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Immediate sales response

Generate inquiries and sales leads

Generate store traffic

Catalogues objectives

Gain access to customers beyond a normal retail trading area

Image building

Establishment of expertise

Serve as a long term first reference for customers and staff on a particular topic---like a university handbook.

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The types of Marketing Catalogue: According to the object of marketing catalog, it can be divided into two types which are focusing on the consumers and the organizations.

The features of marketing catalogue: 1. Large amounts of information about merchandise. 2. Beautifully printed of the catalogues. 3. The catalogues are generally saved by consumers.

The object of marketing catalogue:Catalog shoppers are usually well-educated, engaged in professional or managerial work; also they have a higher income and willing to accept new technologies, with stocks or bonds.

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Catalogue design

Design is constrained by the media that is chosen. Printed material is often the first media that springs to mind when catalogues are being considered – and at one time it was the only medium.

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Catalogue design

Some advantages and disadvantages of print-based catalogues

1. Long life2. Good control over presentation and design3. Convenient and portable4. No special reading equipment needed

Advantages

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Catalogue design

Some advantages and disadvantages of print-based catalogues

1. High cost and limited circulation 2. Adding items to a catalogue adds

to its costs putting in extra pages increases expenditure for printing, artwork etc, but keeping to a predetermined length may mean something will have to be deleted or have its space reallocated

3. Major changes and new editions of a catalogue are not done frequently

4. A catalogue needs to be sent out and then left with clients for some time before its costs are recovered and profit potential is realized

Disadvantages

5. Clients become used to the catalogue coming out at specific times when best sales results can usually be expected 6. Lead times to get catalogues out are longer than for advertisements or simple mail shots, as a lot more work has to be done on artwork, copy development and layout. Seventh, 7. Putting a new item into the line will usually have to wait until the next catalogue in the marketing schedule is being prepared

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Catalogue design

Read only CD drives -CD – ROMs are a lot cheaper to produce than big print – based

catalogues. They can hold a huge amount of text, pictures, movies, animations and sound clips

Internet -required to put up reasonable sized catalogues on a series of web pages

are becoming more affordable all the time. In fact, some service providers even offer free web pages.

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some different ways to organize a catalogue

Methods of organisationMethods of organisation

product demand; application or type of use; product type; the level at which each component fits into the overall system; price line; scarcity, featuring hard – to – get items; size; model number and alphabetically.

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Catalogue format

1.Mini-catalogue

2.Spread design

3.Space allocation

4.Affinity

The catalogue size

Catalogue copy

Merchandise arrangement

Visual presentation1.Grade of paper

2.Typeface

3.Pictures0rder form

Six aspects of catalogue design:

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Mini – catalogues

Mini – catalogues distributed through targeted alternative channels can generate a large number of new customers in a one – step effort featuring low printing and distribution costs.

The following distribution methods are suitable for mini catalogues, brochures, card packs, or any other information the company wishes to pass on to customers:

-Inserts with billing statements, order acknowledgements and invoices

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-Inserts with shipments to customers

-Inserts into magazines, company literature and catalogues from other firms

-Targeted co – op mailings – where material from several organizations targeting the same type of customer is sent out in the same envelope

-‘Take – one’ programs run by retail chains – where dispensers encourage customers to obtain information at the point of sale

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Grade of paper

Heavier coated paper

- allows much finer detail and colour in the printing process and can help project an upmarket image.

Uncoated paper

- usually looks a bit grey and cannot be used to print really fine detail as the ink may ‘bleed’.

Recycled paper

-can be a bit more expensive but may be a plus if people in the target market are environmentally minded.

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Size of paper stock

An oversize catalogue

-offers additional space for layouts and is more difficult for customers to mislay but probably will not fit into bookshelves or filing cabinets

A smaller book

-usually gets place on top of a pile of catalogues and other papers when people tidy up

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Typeface

Headlines

-done in exotic type styles can contribute to the

overall design theme of the book but should not be

used for body copy as they are more difficult to read

Serif typeface

-like those used in most newspaper, with their little fillips and tails, are easier to read than plain

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Serif front

30 point Times New Roman

Serif front

30 point Arial

Sans serif faces (without the fillips and tails)

-the type sizes are stick to sizes over 10 point to make your copy blocks easy to read

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Pictures

It is possible to put together a catalogue using vendor supplied material that can be pasted right into the desktop publishing document.

Unfortunately this can result in a mish mash of different styles and qualities of illustrations that lower the overall tone of the whole publication.

Line drawings are used in many retail flyers. Line illustrations can usually be printed on cheaper stock than high definition photographs, thus keeping costs down.

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Spread design

It is worthwhile designing the whole spread of two facing pages rather than single pages

A catalogue is a series of 4-page leaves so you can refresh it and update it easily by putting a different set of wrapping leaves on the outside for mailing purposes.

Many catalogues look like they have been laid out on a grid system with each product being allocated its own little rectangular space comprising a square picture with a square copy block underneath it.

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Others are laid out like magazines with illustrations and headlines that use the whole two page spread, testimonials from happy users, useful advice sections and even stories designed to appeal to the interests of target audience.

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Space allocation

1

Four to eight items per page is a rough average for many catalogues.

2

It can be a good idea to vary the amount and quality of space devoted to products from year to year as this may affect sales.

3

Some items may be featured in the catalogue for public relations purposes to help establish the image you are trying to project.

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Its sales history

Price levels and margin as compared to other items in the catalogue

Suppliers’ experience

Comparison with competitors’ catalogues and advertisement.

Often this can be approximated from:

Space allocation

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Figure 9.4 Relationship between space and sales follows a response function

Space allocation

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In order of sales importance these are:

1. Front cover – theme setter or for merchandise that sets the tone for the rest of the catalogue

2. Back cover – highly saleable lines only; also helps set tone for the catalogue.

3. Inside front cover spread 4. Second spread from the front 5. Centre spread 6. Inside back cover 7. Spread near order form 8. Order form itself - helps with add on and impulse sales.

Space allocation

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All customers need to be given reasons why they should buy-no matter whether you are using sales reps, television or catalogue copy as your medium. No one wants to read a page densely packed with incomprehensible technical jargon. Copy that sells is easy to read. The copy should have pictures and copy blocks if the page is at least 45 percent empty space. The more empty space the better. Short sentences are easier to read. So are simple, familiar words. Use short paragraphs with space between them or use indents for paragraphs. Don’t “drown” customers in technical jargon. Paint a mental picture of what the product will do for them using colorful, descriptive language bur don’t be so vague and colloquial that people don’t understand what you mean. Writing should be conversational in tone but specific.

How to do the copy

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Logical

Clear

Persuasive

Enough information included

① Copy points follow a logical sequence for each product Same logic applied to all products Logical sequence of ② ③

products

① What level of understanding is it aimed at? Does it ②make sense? Is it easy to read? Abbreviations and ③ ④technical language defined?

① Copy starts with a strong selling message Copy ②stresses benefits Selling message on cover Headlines ③ ④focus on problem solutions or benefits Reader drawn into ⑤descriptions

① To make a buying decision To order a specific product ② Easy to place an order ③

④ All important product details

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Consistent / accurate

Believable

Boilerplate copy

(copy that is standardised & used in each catalogue)

① Use of logos and trademarks Spelling and ②abbreviations Punctuation, grammar and ③capitalization Units of measure Table and ④ ⑤chart formats Layouts Copy style ⑥ ⑦ ⑧Visuals Technical accuracy checked by ⑨appropriate people Photos current …and so ⑩on

Product claims backed up

① Starting and finishing dates of price deals ②How to order Notification of possible price ③changes Payment terms and methods ④ ⑤Shipping and handling Return policy ⑥ ⑦Discounts Credit terms Sales tax ⑧ ⑨

Trademark information …and so on⑩

More details please open page 283-284

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Ordering Order form and/or request for more information included

Form collects all necessary information

Is it clear why you need the information?

Easy for reader to obtain and send required information

How to place an order explained

Enough space to write on the form

Business reply envelope

Phone, fax, email and website information

Easy to send for more information

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They won’t buy if they don’t read it

Catalogues customers need to know:

- What your products will do for them?

- How the products will solve their problems and make their lives easier.

- Why they should buy from you instead of someone else.

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You should: • Appeal to curiosity. • Sell the product line if you have items that competitors don’t. • Sell solutions by pointing out how easily you can solve common annoying problems. • Sell benefits or show how you can help satisfy customer needs. • Sell intangibles like price, convenience, trustworthiness, reputation, fast delivery, friendly sales people, guarantee, service and maintenance. • Stress name, image or reputation like David Jones often does. • Start the catalogue on the cover featuring a popular or hard-to-get item. • Put a friendly, personal letter on the cover. • Add a wrapper to shout a sales message about a new product, deal, location or service improvement.

They won’t buy if they don’t read it

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Summary

Catalogues range from simple monotone efforts to glossy full colour coffee table quality books.

It’s essential that all aspects of the catalogues be checked carefully prior to publication.

Catalogues are still published on paper but many are now being made available on CD-ROM and on the internet.

A well designed cover can enhance the readers’ willingness to look at what the book contains.

Successful modern catalogues provide specific niche markets with well targeted assortments of merchandise and levels of service and expertise not easily available elsewhere.

LOGO

Let’s go to Chapter 10 !

LOGO

CHAPTER 10

Direct marketing business Direct marketing business to businessto business

Prepared by:

07308039 邓慧娴07308064 罗丹丹

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This chapter gives an overview of how businesses use direct marketing strategies and what benefits are obtained from business to business direct marketing transactions.

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Definition Business to Business marketing is ‘Business that sells products

or provides services to other businesses’.

More details It offers a wide range of special areas where direct marketing

becomes and extremely cost effective and productive strategy. The areas are such as lead generation, lead qualification,

catalogue selling, telephone selling, internet selling and customer management.

Business to business marketing also covers such organizations as non profit bodies, public institutions, schools, churches and government departments.

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Compare with B2C

Base on basic elements

B2BB2B B2CB2C=Base on actual implementation

B2BB2B B2CB2C≠

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Users of the product

Influencers who set the product specifications

Deciders who make the actual purchase decision

Gatekeepers who control the flow of purchasing information

Buyers who process the purchase orders

Standards of choosing individuals

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Definition of users

Segmentation Division of potential customers into market segments according to how and for what purpose they use a product.

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Definition of influencersIndividuals who have the power to affect purchase decisions of others because of their (real or perceived) authority, knowledge, position, or relationship. In consumer spending, members of a peer group or reference group act as influencers. In business to business (organizational) buying, internal employees (engineers, managers, purchasers) or external consultants act as influencers

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Definition of decidersDeciders those who actually make the decision in the organizational buying process; the deciders are often difficult to identify because they may not necessarily have the formal authority to buy. See Buying Centre.

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Definition of gatekeepersMember of a decision-making unit or social group who acts to prevent or discourage a purchase by controlling the flow of information and/or access to people in the buying center. A mother who does not allow her child to choose a presweetened cereal at the supermarket is acting as a gatekeeper. A secretary who does not put calls through to the decision maker is a gatekeeper. Marketers must direct their advertisements not only to the end user, but also to any potential gatekeepers.

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Definition of buyersProfessional purchaser specializing in a specific group of materials, goods, or services, and experienced in market analysis, purchase negotiations, bulk buying, and delivery coordination.

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Weakness of B2B

There are many opportunities for business lists to become out of date.

It limits the opportunities for pre-testing effectiveness of any specific list for ratios of returns.

Many business to business campaigns in direct marketing involving the use of lists go untested.

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Don’t be afraid …

TO KEEP IN MIND:At the end of the day marketers are still dealing with people.

The business person is usually professionally trained in the skills of dealing with marketers and being more rational in

their purchase approach (actions) than when acting as consumers.

Many consumer tactics work in business to business direct marketing.

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Activities of B2B direct marketers

Four main activities

Acquiring new business leads

Lead qualification programs

Outsourcing lead generation

Lead tracking and management

Leads for in-house use

Leads for reseller agent’s use

Planning and managing lead generation programs

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Four main activities of B2B direct marketers

Lead generation

Lead qualification

Making the sale

Maintaining customer relationships

BACK

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Definition of lead generationLead generation is the use of a computer program, a database, the Internet, or a specialized service to obtain or receive information for the purpose of expanding the scope of a business, increasing sales revenues, looking for a job or for new clients, or conducting specialized research. Leads can consist of the names and addresses (or e-mail addresses) of individuals, corporations, institutions, or agencies. Lists of leads can be gathered or filtered from targeted databases such as telephone and Internet directories.

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Why acquiring new business leads?

Acquiring new customers is a major investment for any organization. Customers come from a base of many prospects. These need to be converted into leads.

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How to acquire new business leads?

Apply the Pareto principle (80/20 rule) Approximately 80 per cent of an organization’s business is

yielded by only about 20 per cent of its customers. Therefore it is fairly reasonable to assume that if you can profile

the 20 per cent of its customers. Therefore it is fairly reasonable to assume that if you can profile

the 20 per cent into similar variables, you will arrive at a homogeneous descriptor for the sorts of businesses your organization should be targeting for new business.

Seek out lists of businesses that fit your homogeneous descriptor These may represent a very significant number of businesses,

not all of whom will do business with your organization. These prospects need to be converted into leads and the leads

then qualified.

BACK

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The criteria of a qualified lead

Definition of qualified lead A potential customer who has expressed interest in

a product or service and meets general buying criteria

They must have a need for what it is your organization is offering.

The person with whom you negotiate must have the authority to purchase.

The organization you are negotiating with must be able to afford what it is your business is offering.

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How to seek out a qualified lead?

Profiled the sorts of businesses you wish to target

Seek out lists of similar business

Employ to qualify these leads Through telemarketing (To telephone the

organizations, which is quick and effective particularly if skilled telemarketers are used.)

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The information about your target organizations

Turnover Number of employees What business an organization is in Who are some of the main

executives within the organisation By wary of the dates of publication of such

information (it could easily be out of date) Addresses of their offices and plants

and so on …

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Why we need qualifying prospects/leads?

Help to contact the prospects via mail or another medium For example, advertising, email or internet

Help to exhibit in trade fairs relative to your business and industry.

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To remember …

You have found or qualified a lead, it must be followed up immediately.

To create an impression of professionalism and reliability early in the development of a relationship with a new customer.

BACK

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Outsourcing lead generation

Telemarketing and direct mail contractors can often conduct these activities more cost effectively than a business can in-house.

Both these activities require special skills and resources which many organizations may not have readily available.

BACK

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Lead tracking and management

WHY It is imperative that they are tracked

effectively and managed to ensure that the optimum conversion rate to customers is yielded.

And once they become customers their files are managed to maximize outcomes from them.

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HOW It must be recognized that an organization has

invested time and money into securing each qualified lead.

Keeping track of what has transpired relative to a lead since it was acquired.

• When was action taken to follow up the lead?• What was that action?• What further action was anticipated?• What are the expected outcomes for your organization?

Lead tracking and management

BACK

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Lead for in-house use

When an organization prospects for leads for its own sales team to follow up, it is relatively easy to keep track of them.

A simple database and accompanying software, together with an on the ball manager of the selling team can maintain a close watch on leads.

From the moment of initial action on a prospect through to generation of a qualified lead, any future requirements, activities or decisions to be made concerning a lead will be recorded and reported.

BACK

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Leads for reseller agent’s use

WEAKNESS

Leads obtained by the original manufacturer or supplier of goods and services, and passed on to the reselling agents are much harder to control.

It is difficult to motivate and/or control sales team members from an organization other than your own. Particularly this is so when that organization has opportunities to sell products other than yours.

These reseller businesses are independent and make decisions based on their perception of what is good for their business but not necessarily what is good for your brand or your business.

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The ‘carrot and stick’ approach usually works best. Definition: Carrot and stick is an idiom that

refers to a policy of offering a combination of rewards and punishment to induce behavior.

An incentive to report actions on

qualified leads within specified times to the original supplier of the leads.

BACK

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Planning and managing lead generation programs

Given that the original supplier of the goods or services for which a program is conducted has the greatest vested interest, it is appropriate for them to control and manage the programs for acquiring leads.

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Circumstances for the reseller to control the programs First, it may depend on the magnitude of the reseller’s

investment in the program compared to that of the original supplier’s (of goods or services) investment.

Second, it may be more practical for the resellers of the goods or services when the original supplier is distanced from the locale (and perhaps also the culture) and knowledge of the particular market region.

Planning and managing lead generation programs

BACK

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Definition of Databases

serve as a memory bank of everything that happens between a business and any other business.

includes transactions, frequency and size of orders, business contacts, addresses, any requests made for information or product improvement.

a complete history of the relationship between the organization with the database and all businesses they have transacted with since the inception of the database.

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The characteristics of business to business database

the number of customers and prospects of business-to-business (B2B) will be smaller than that of comparable business-to-consumer (B2C) companies.

rely on intermediaries, such as salespeople, agents, and dealers and the number of transactions per customer may be small.

may not have as much data at their disposal as business-to-consumer marketer are accustomed.

Customers in Business-to-Business environments often tend to be loyal since they need after-sales-service for their products and appreciate information on product upgrades and service offerings.

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Business to business appeals

Goods classification classification determines the way it will be bought and

type of appeal direct marketer could use.

Goods classifications refer the way that people buy products and how much trouble customers will go to when making the purchase.

Familiarity with the buying situation The prospects’ willingness to consider new suppliers also

depends on how familiar they are with making particular sorts of purchases.

Buy phases the phases gone through by a customer facing an entirely

new buying task are.

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Buy Classes

Buy Classes - buying situations categorized according to the prior experience of the buyer with the product and supplier; buy classes can be classified as straight re-buys, modified re-buys and new tasks.

New Task Buying - an organizational buying situation in which the organization has had no previous experience with the purchase of product of the kind required.

Modified Re-buy - a buying situation in which an individual or organization buys goods that have been purchased previously but changes either the supplier or some other element of the previous order.

Straight Re-buy - a purchase in which the customer buys the same goods in the same quantity on the same terms from the same supplier.

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Straight Re-buy

A straight re-buy situation arises when the customer has bought this sort of thing many times before and nothing important has changed.

The tendency is to purchase from the previous supplier.

The buyers have all the information needed, knows how to evaluate different proposals and is familiar with what is on the market.

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Buy phases

Phase1: recognize the problem Phase2: determine requirements Phase3 ： set specifications Phase4: search out alternative suppliers Phase5: acquire proposals from suppliers Phase6: analyze proposals and select

suppliers Phase7: select order routine Phase8: evaluate product and supplier

performance

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need recognition:need recognition: determine what needs are most important to the buyer

identify alternativesidentify alternatives for buying the product

evaluateevaluate those alternatives on certain criteria

make the decisionmake the decision to buy and related decisions pertaining to delivery, credit, etc.

post purchase post purchase decisions include evaluation of the supplier and of the product or service

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Buy phasesBuy classes

Phase 1:Recognise the problem Y Y Y

Phase 2:Determine requirements Y Maybe N

Phase 3:Set specifications Y Y N

Phase 4:Search out alternative suppliers Y Maybe N

Phase 5:Acquire proposals from suppliers Y Maybe N

Phase 6:Analyse proposals and select supplier Y Maybe N

Phase 7:Select order routine Y Maybe N

Phase 8: Evaluate product and supplier performance Y Y Y

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Media of direct marketing for business to business

Three main types of direct marketing include:

Telemarketing: Direct marketing that involves calling people at home or work to ask for donations, an opinion, or for sales purposes.

Email Direct Marketing: This form of direct marketing targets consumers through their Email accounts. Email addresses can be harvested from websites, forums, or purchased. Some companies require you to receive announcements to use their websites.

Direct Mail Marketing: Advertising material sent directly to business addresses.

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Telephone

May be used for both inbound and outbound communication.

The development of relationships with existing customers and leads.

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Electronic media

Become a popular means of direct communications in business to business.

It includes email, the internet and faxes.

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Catalogues

Catalogues could be classified as a version of direct mail.

They deserve a special mention as a medium of business to business direct marketing

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Trade shows

They are particularly good at generating

and qualifying leads as well as making direct sales from the floor of the trade fair.

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Summary

Direct marketing strategies and what benefits are obtained from business to business direct marketing transactions.

Business to business direct marketing activities.

The relationship between Databases and business to business.

Media

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