Direct Marketing Communications

1
Direct Marketing Communications

• Managing the direct marketing campaign
• Week 11
• MKT314J1

2
Planning a Direct Mail Campaign

• SOSTT 4Ms acronyms give focus and direction
• Situation - (where are we now?)
• Objectives - (where do we want to go?)
• Strategy - (how do we get there?)
• Tactics - (details of strategy)
• Targets - (segmentation and target markets)
• Men - (men and women required to do
  the above)
• Money - (budgets)
• Minutes - (time-scale)
• Measurement - (monitor effectiveness)

(Smith 2000)
3
Considerations

• 1 Timing
• 2 List selection
• 3 Creative mailings
• 4 Budgeting
• 5 Operational implications
• 6 Testing

4
MAILING SCHEDULE EXAMPLE
WEEK
CREATIVE
ARTWORK
PRINT
LISTS
COMPUTER BUREAU
LASER
creative brief
1
list brief
2
concept/ visuals
list proposal
3
approval/ amends
list order
4
letter text
artwork brief
print quotes
final copy/ design
5
6
selling proofs
receive lists
data prep
proofs/ approval
finished artwork
printer brief
7
8
merge/ prep
proofs
mail house brief
9
print
output files
live proofs
10
delivery
print
11
delivery
sort enclose
12
Notes 1 Print includes letters, brochures,
envelopes. 2 If large mail quantity
mail house need more notice. 3 If
envelopes special their make-up requires longer
lead time. (Source Direct Marketing Centre,
1992)
MAIL
5
1 Timing

• Minimum of 12 weeks preferable 6 months.
• The faster you need something done the more
  likely there will be mistakes. The answer is
  give more time or pay a great deal more money
  (Fill 2001)
• Decisions
• - Multi stage )
• )
• Single stage )
• ) All form part of overall strategy
• Multi media )
• )
• Single media )

6
Timing Considerations (cont)
Target markets - When do they buy?
- How do they buy? - How
often do they buy? - Is it a
seasonal market? -
When are they most receptive to a mail
shot?
7
2 List Selection

• Who are you trying to influence?
• What are you selling?
• Why should your prospect buy it?
• Where will you find your prospect?
• When should you speak to them?

8
4 Budgeting

• How much can the organisation afford to spend to
  recruit a new customer?
• How much is a new customer worth or what is the
  allowable cost per customer?
• What is their lifetime value?
• Multiply this by the number required Budget

9
Budgeting (cont)

• Rough estimate is to allow 50p per shot
• ? 500 per thousand
• Telesales (_at_ 10 10,000
• Door to door drop 250
• Inserts 100
• Magazine ads 50
• National press 10
• TV ads 1
• Costs per response and cost per order give the
• bottom line of
• success or failure.

10
5 Operational Implications

• Even if the response is fairly modest it can
  still be a strain on your office resources.
  Could your telephone system handle thousands of
  calls in an hour? Could your staff treat
  customers with enthusiasm at the end of a whole
  day of frantic answering? Do you have space for
  sackfuls of mail? Do you have time to answer
  every reply quickly? If not a specialist
  fulfilment company can help.
• The Royal Mail Guide to Successful Direct Mail

11
Use of Automation

• Few companies have automated any part of their
  marketing and sales function. Even fewer appear
  to understand the significant strategic benefits
  that can accrue from marketing and sales
  automation.

12
6 Testing

• One of the advantages of direct marketing is the
  ability to test, retest, change, monitor and
  learn what works best. (IDM)
• 10 of budget allocated to testing will be
• a good investment.

13
Impact of different direct mail variables on
response levels
Difference between best and worst produced a
result 58 times better than worst combination