Dart Marketing, LLC

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Dart Marketing, LLC Company Introduction
Services
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• We Provide Solutions to Your Toughest Challenges
  
•       Pricing Strategy - Identify price elastic
  products and customers       Mail Optimization
        Brand Mapping for better positioning,
  up-selling and new opportunities      Message
  Targeting      Custom Decision Making Tools for
  "what if" scenarios      "Natural Selection"
  Recommendation System
• OUR MISSION is to provide insightful and
  financially responsible marketing strategies,
  based on solid experience, sound market data, and
  state of the art statistical techniques and data
  analysis.
• OUR APPROACH is data driven and our results are
  measurable. We will better define and target your
  most profitable customers, increase your response
  rates, and improve your marketing results.
• OUR EXPERIENCE includes work with leading
  publishers (such as Hachette Filipacchi Media),
  loyalty programs (such as General Motors lease
  loyalty), subscription services (such as Gevalia
  Kaffe), and the largest direct mail new product
  launch ever (the GM Card).
• OUR GOAL is to return multiples of your cost in
  increased sales and efficiency.

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Services / Capabilities
Research      Customer behavior, program
evaluations, consumer studies     Market sizing,
product pricing and configuration, customer
segment definition      Test design, sample size
and definition, questionnaires and
reporting Targeting / Modeling     Maximize
objective using regression (i.e. response,
incremental sales, marketing mix, product
pricing)     Segmentation - cluster and factor
analysis     Significance testing Other
Services Custom Analytic Software   
Point-and-click" marketing and budgeting tools 
   Strategic decision making tools     New
business presentation models Internet   
 Website development, promotion, and strategic
assessment Creative     DM creative strategy,
copy, design, and consultation     Specializing
in publishing for the last 20 years
Database      Analysis, design, and management 
   Data mining, data quality and data conversion
     Merge/Purge/De-dupe Analysis     Customer
Relationships (CRM)      Customer profiles and
segmentation      Lifetime value of a customer 
   Market sizing and definition     Marketing
Mix Allocation     Sales forecasting and
tracking     Determine price elasticities   
 Price testing and strategy     Time series
analysis     Analyze sales patterns, markets and
behavior     Perceptual mapping - product
customer matching     Recommendation
Systems Analysis (Financial)     Financial
modeling - "what-if" scenario testing     ROI
and NPV of cash flows     Business case
development
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Marketing Analysis
Overview Customer and employee relationships
(CRM) - Customer profiles and segmentation,
lifetime value of a customer, market sizing and
definition, market and customer behavior, time
series analysis, response forecasting and
tracking, analyze sales patterns, perceptual
mapping. Customer Profiles and
Segmentation Compare mutually exclusive audience
types (buyers versus non buyers, heavy users
versus light users, and employees versus non
employees) and product types (premium versus
value or newsstand versus subscription) by
demographics (i.e. age, income) and other
information such as purchase and payment history.
Results are tested for statistical significance
to identify actionable targets. Lifetime Value
of a Customer Determined lifetime value for GM
Card accounts. The value differed widely by the
method they were booked (i.e. direct mail,
outbound phones or "take one" applications). The
value also differed widely by customer segment.
These findings led them to avoid acquiring
accounts through outbound telemarketing and to
increase retention spending on select
people. Price Elasticities, Testing Strategy
Identify which products and people to raise (and
lower) prices to scientifically. Follow with
price testing, coordinated with prices from other
channels, such as online and in retail
outlets. Market Sizing and Definition Sized the
market for a new drug for Bristol-Myers
Squibb based on population demographics,
mortality rates, and treated and untreated
universe. Markets were defined by the disease for
which the drug could be applied.
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Marketing Analysis
Market and Customer Behavior Presented the
results of Gold Card analysis to GM Card senior
management before its launch, demonstrating its
impact on the number of accounts and total
profits under different rewards
scenarios. Response Forecasting and Tracking
Models Ability to forecast and track response to
your direct mail. Built accurate response
forecasting and tracking models for mail waves
ranging from 15 to 30 million pieces. The GM Card
relied on these forecasts to execute the next
mail wave within a tight window of opportunity,
maximizing response. Time Series Analysis Track
sales over time, accounting for seasonality. Pre
and post marketing event analysis. Example
Showed changes in response to various methods of
account acquisition over time by demographics,
credit variables and the vehicle ownership of
those solicited for a GM credit card. Also used
for tracking and forecasting and optimizing
newsstand sales and returns. Analyze Sales
Patterns Identify seasonality and region brand
strength by comparing your sales to your
competitors. Example Measured sale rates for
Cadillac brands versus competitors by city to
identify regions of brand strength and weakness
for direct mail campaign. Perceptual Mapping /
Competitive Perceptual Maps 3-D bubble plots
illustrate how products correlate with each other
on various dimensions, such as by sales
correlations, price/offer and demographics. The
size of each bubble represents volume, such as
the number of subscribers/sales or revenue. See
an example on the next page. Taken a step
further, we can create an individualized product
selection model to determine which product each
customer will most likely want next.
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Personalized Recommendation Systems

• According to ValueBeat, Amazon.com attributes 35
  of their product sales to recommendations.
• We create a truly personal shopping experience
  with My-Store, WishLists, email alerts,
  smart-search
• System becomes your virtual aisle clerk,
  assisting customers at time of decision-making
• Simple to integrate and automatically tunes its
  results and runs in real time without any
  investment in infrastructure, training or
  maintenance.
• We provide personalized recommendations that
• Are relevant. Match customers tastes. Lead to
  discovery of new products. And, engage the
  customer.
• We then customize it to
• Leverage profit margin or price. Remove out of
  stock merchandise. Promote sale items or
  overstock. Make layered recommendations, such as
  best in category and out of category. Be
  controlled by the user to guide recommendations,
  even for New Shoppers. Treat customers
  differently based on tastes.
• Compare our movie recommendations to other
  world-class systems. Try Our Demo

Notes Results taken from Netflix.com,
Blockbuster.com, and FamilyVideo.com in November
2006.
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Financial Modeling

• Overview
• Financial modeling projects range from a single
  mail campaign to a multi-year cash flow
  projection of your entire business. It brings
  together assumptions about the product,
  customers, budgets, and marketing effectiveness
  using historical data, market research and
  experience.
• We will help you establish a base case and enable
  you to test marketing investment trade-offs,
  identify high leverage opportunities, find
  break-even points, measure performance against
  plan and test what-ifs.
• The model tracks a prospect from solicitation to
  sale to customer retention.
• Modeling allows you to evaluate the big picture,
  with the ability to understand differences in
  performance segmented by market and product.
• The model evolves over time, becoming
  increasingly accurate and relevant, as it is
  continuously updated with future program results
  and further customized.
• It serves as an excellent custom reporting device
  (i.e. automated scorecard).

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Financial Modeling

• Examples
• GM Card Provided business analysis for the GM
  Card program in the U.S., as well as subsequent
  models for launches in Canada, Mexico, England
  and Brazil. The models provide a complete picture
  of the company, incorporating assumptions about
  the product, economic factors, banking fees,
  marketing budgets and the effectiveness of each
  marketing channel.
• As a result of these models, GM confidently
  expanded into Canada and England, cautiously
  entered Brazil and avoided Mexico. Different
  product configurations were offered in each
  country based on maximizing the results from each
  financial model.
• After the launch, the U.S. model was updated to
  include actual data and drove decision making for
  ten years, including the decisions to
• Discontinue the partner program
• Eliminate to the gold card product
• Shift to a new tiered rewards program
• Bristol-Myers Squibb Our custom financial and
  marketing planning tool sized the market for a
  new drug based on population demographics,
  mortality rates, and treated and untreated
  universe by disease for which the drug can be
  marketed. It incorporated details about media
  spending, DTC, professional spending, and a
  compliance and persistency program. The user
  could then test various marketing strategies and
  budgets, and learn the expected sales mix and
  financial results.

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Product Perceptual Mapping

• The scales of these maps are highly interpretive.
• The horizontal axis is a scale of how exotic
  the product is
• The vertical axis appears to be a scale of real
  life best of.
• The more exotic the product the more pricing
  power

This plot shows sales correlations, between
baseball card sets. There were 16 products
classified into 5 product segments. The products
were plotted on three dimensions, where the x and
y axis represent sales correlations between the
products and the z axis represents unit sales
volume (sometime revenue is used instead)
shown by the size of the bubble.  Demand appears
to be higher on the left part of the map. The
products of each segment tended to form
mini-clusters and larger "segment clusters"
tended to form as well, giving both a macro and
micro view on one page. 
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Competitive Perceptual Maps

• Purpose
• Illustrate how products correlate with each other
  on various dimensions.

Types of Maps In this simple example, a broad
array of magazines were plotted by their
similarity to each other on two dimensions,
median age and gender. The size of each bubble
represents the number of subscribers. If we
focused only on mens magazines, the gender
dimension would be replaced with something more
salient, such as price. More sophisticated plots,
which require advanced statistical analysis, are
even more compelling because they show sales
correlations, based on past acquisition mailings
or cross-promotions.
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Custom Software
Acquisitions Models Track entire marketing effort
including all budgets and expected results for
each media, compare results to benchmarks and
link to a financial model. Example Pre launch
research and marketing plan for the Chrysler
Credit Card. The model demonstrates how any
change in the marketing assumptions impacts the
bottom line. Analytic Marketing Tools / Scenario
Testing We build custom "point-and-click"
analytic marketing tools using Excel and Visual
Basic. Example Showed changes in response to
various methods of account acquisition over time
by demographics, credit variables and the vehicle
ownership of those solicited for a GM credit
card. This analysis identified highly responsive
targets, making the GM Card's marketing team more
efficient in acquiring millions of new accounts.
Another model tested different product
configurations to determine their pricing
strategy. User-Friendly Front Ends to Databases
and Statistical Forecasts Example Built easy to
use software enabling the GM Card marketing team
to access revenue and redemption expense
forecasts in graphical and table form, which were
tied to a historical database. New Business
Presentations Create "point and click" models to
demonstrate the proposed marketing plan and its
effectiveness on sales and ROI. Example
Bristol-Myers Squibb Ortho birth control pills.
Ask to see demos of these types of solutions.
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Market Research
Overview We research new products and services,
do program evaluations, understand customer
behavior, do consumer studies, and do on-the-fly
cover testing. We use everything from phone
surveys to mall intercepts to online
research. Test Design We will help you identify
relevant groups to study or compare. If you
are looking at buyer behavior for example, look
at non buyer behavior or have a control group or
program norms as a reference. We may collect
surveys from people different each time periods
to remove seasonality or create sales
weights. New Product Research New product
pre-launch research. Example Safe-card's child
protection program tested different prices and
different offer combinations. It also established
target segmentation for each service. Program
Evaluations Measure program effectiveness and
achieve higher sales rates. Example Found
insights into consumer behavior for GM's North
American automotive marketing team, enabling them
to achieve higher (more than double in some
cases) incremental sales rates in subsequent
programs. Behavioral Studies Determine best
motivational factors for each target group.
Example Measured GM employee attitudes and
willingness to participate GMs Ambassador
Program for hourly, salaried and retired
employees. On-the-Fly Cover Testing Get
quantifiable consumer reactions to magazine
covers before choosing which to use. Measure lift
of cover choice to sales by calibrating to survey
responses. Predict the overall success of the
issue before release, based on live consumer
feedback.
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Database Management
Overview Customer Relationship Management is at
the core of database analysis and purpose. Our
methods follow...database design and management,
data mining, data quality, data hygiene,
merge/purge/de-dupe, and data conversion.
Database Management Experience with files
containing millions of records. Examples GM
sales files, GM Credit Card customer files, and
various other transactions level
data. Reorganized Prodigy Internet's customer
database under intense time pressure to produce
marketing recommendations for new acquisitions,
by identifying heavy users of their service and
their characteristics. Data Quality/Hygiene Is
your data a mess? Try this one on for size. GM
had a direct mail program, where people responded
by hand writing in the brand they were interested
in buying. Many of these were misspelled or
invalid and we wrote an algorhythn, which
identified the brands with over 98 accuracy.
Merge/Purge/De-dupeDo you have lists that need
to be combined or reworked?  Are you mailing
twice to the same address? Do you want to mail
only to certain segments of your list? Need help
identifying who those people should be? No list
is too big for us to manage. Data
Conversion Translate files from one file format
into another, such as from ASCII fixed column to
a SAS dataset.
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Statistical Modeling
Overview Maximize response, incremental sales
and marketing mix, forecasting and tracking,and
significance testing. Maximize Objective Using
Various Regression Techniques Such as response
rates for acquisitions, renewals, incremental
sales, customer targeting, and marketing mix.
Example built models for GM Card identifying
prospects most likely to not only respond to an
offer, but to pass the credit check and become a
booked account. Target Models identify
affinity points programs redeemers, likely
program defectors, product switchers migrators
within program, brand preference, the timing of
market entry, and heavy users. Example built a
GM Card redeemer model identifying the likelihood
each customer would redeem their rewards and how
soon for millions of cardholders. Profiling and
Segmentation - identify audience types such as
defectors, in market buyers, ethnic groups,
military/college buyers, employees,
owners/loyalty, competitors/conquest, and unique
segmentation schemes using multivariate analysis.
Example Segmented GMs hourly, salaried and
retired employees into research defined attitude
and energy dimensions for inclusion in their
Ambassador Program, designed to encourage and
empower employees to sell cars. Forecasting and
Tracking forecasting including seasonality and
other patterns using previous months or years of
data and assumptions about future trends. Results
are tracked and compared to forecasts. Example
account and revenue forecasts for the GM
Card. Significance Testing - Distinguish
between results that are directionally and
statistically significant.
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About Craig Tomarkin
Craig Tomarkin founded DART Marketing with the
vision of providing intelligent, financially
responsible marketing strategies through custom
analysis. His team is well suited for any
analytic challenge.
Background After completing business school in
1990, Craig joined InterData (a privately held
spin-off of DMBB's direct marketing group),
where he immediately became a key member of the
GM Card launch team. His sophisticated financial
models were used to establish the expected
business case and allowed them to play what-if
scenarios on pricing, product configuration, and
rewards payments. In the first year of business,
the program booked five million accounts, the
most successful launch of its kind.
After the launch, he updated the U.S. model to
include actual data and drove decision making for
ten years, including the decisions to -
Discontinue the partner program - Eliminate
the gold card product - Shift to a new tiered
rewards product Other Highlights Include
Improving Hachette Filipacchi's magazine
renewals using regression models combined with an
innovative mail strategy. Titles modeled include
Woman's Day, Home, Road Track and others.
Unique product perceptual mapping of Gevalia's
coffees. Brands clustered into Flavored, Roasts,
and Exotic. When price was later added as a
factor, the more expensive coffees moved up the
exoticness scale. This had implictions for
pricing strategy, new product positioning, and
targeted up-selling. Also to his credit, Craig
invented the Natural Selection Product
Recommendation System and founded
Baseballguru.com, a popular baseball web site
that continues to grow in popularity and profits.
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Clients Served
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Getting Started
Apply the science of precision marketing. Learn
more about your customers and improve your bottom
line. Contact us today!
Craig Tomarkin DART Marketing, LLC 2333
Congress St. Fairfield, CT 06824 CTomarkin_at_dartm.n
et 203-259-0676 Fax [phone]