direct mail advertising advertising and media. direct mail all forms of advertising sent directly to...
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Direct Mail Advertising
Advertising and Media
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Direct Mail
• All forms of advertising sent directly to prospects through a government, private or electronic mail delivery service
• Most direct line to consumers• Third most common form of
advertising behind newspapers and TV– 20% of all ad dollars spent in 2005
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Types of Direct Mail Advertising
• Dimensional direct mail – 3D shapes and unusual sizes/textures
• E-mail – best used for customer retention and relationship management
• Sales letters – Most common
• Postcards – used to announce sales and special offers
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Types of Direct Mail Advertising
• Business reply mail – recipient can reply at no cost
• Folders and brochures – colorful and image rich
• Broadsides – larger than folders, used as window displays and can be folded for mailing
• Self-mailers – any form of direct mail that can travel without an envelope
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Types of Direct Mail
• Statement stuffers – ads enclosed in monthly customer statements from banks, retailers, etc.
• House organs – publications produced by associations or business organizations (newsletters, shareholder reports)
• Catalogs – reference tools that list, describe and picture products
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Pros & Cons of Direct Advertising
• Pros– Selectivity– Extensive reach & coverage– Flexibility– Control– Personal impact– Exclusivity– Response– Testibility
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Pros & Cons of Direct Advertising
• Cons– High cost per exposure– Delivery problems– Lack of content support– Selectivity problems– Saturation– Environmental concerns– Negative attitudes– Antispam laws
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Components of Direct Mail
• The mailing list– 60% of the success of the mailing
• The offer– 25% of the success of the mailing
• The creative package– 15% of the success of the mailing
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The Mailing List
• House lists – company’s own database of current, recent and long-past customers, as well as identified prospects– Gathered from registration forms and
customer management programs
• Mail response lists – house lists of other direct-mail advertisers; which can be rented with a variety of demographic breakdowns
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The Mailing List
• Compiled Lists – lists are those that some entity compiles for a different reason and the rents or sells– Offer the lowest response rate
• List brokers manage the rental of direct mail lists for a commission
• Prices vary but average about $55 per 1,000 names
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Developing the Offer
• Every direct mail package should include an offer– Incentive or reward that motivates
prospects to respond
• Offers should be clear, specific, believable, and easy to acquire
• Offers should present a sense of URGENCY!!!!!!!!
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Creating the Package
• Developed in-house or by an ad agency or freelance designer– Some agencies specialize in direct
mailings
• Similar production process as a print ad
• Letter shops can perform remaining production and handling tasks
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Specialty Advertisements
• Advertising specialty is a promotional product that is distributed free as part of a marketing communications program– Imprinted with the advertiser’s name,
message or logo– Premiums typically are given to
consumers as a reward for purchasing a product, attending a demonstration, etc.
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Specialty Advertisements
• Consumer Specialties– $3 to $5 specialties are common since
consumers associate the quality of the specialty with the quality of the advertised product
• B to B Specialties– Designed to promote goodwill standing
over competitors
• Inappropriate specialty items can backfire
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Ads can be placed anywhere a consumer might see it