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Direct Marketing www.themegallery.com Chapter 9 & Chapter 10 陈珊婷 07308030 王冬梅 07308032 邓慧娴 07308039 罗丹丹 07308064 Company Logo LOGO Prepared by: 王冬梅 陈珊婷 Chapter 9 Creating and marketing catalogues Learning Objectives www.themegallery.com This chapter gives an overview of the main issues involved in the preparation and use of catalogues by direct marketers. Company Logo They won’t buy if they don’t read it www.themegallery.com Space allocation Catalogues design Introduction Summary Why customers want catalogues Catalogues objectives Company Logo Introduction www.themegallery.com This Marketing catalogues is a marketing activity that marketers using catalog as the carrier to spread information, and distribute to target customers by directmail 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. Company Logo www.themegallery.com http://www.m18.com/Catalog/091105_f90711/flash.html Company Logo Company Logo www.themegallery.com Why customers want catalogues Customers buy from catalogues for a variety of reasons including: www.themegallery.com 1 Saving money 2 Being assured they made the right purchase decision 3 More profitable operations 4 Getting something free 5 Finding ideas for solutions to problems 6 Convenience 7 Obtaining something exclusive Company Logo Catalogues objectives Immediate sales response Generate inquiries and sales leads Generate store traffic Gain access to customers beyond a normal retail trading area Catalogues objectives www.themegallery.com Image building Establishment of expertise Serve as a long term first reference for customers and staff on a particular topic---like a university handbook. Company Logo 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. www.themegallery.com 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. Company Logo Catalogue design www.themegallery.com 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. Company Logo Catalogue design Some advantages and disadvantages of print-based catalogues Advantages Long life Good control over presentation and design Convenient and portable No special reading equipment needed www.themegallery.com 1. 2. 3. 4. Company Logo Catalogue design Some advantages and disadvantages of print-based catalogues www.themegallery.com Disadvantages 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 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 Company Logo 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 www.themegallery.com 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. Company Logo some different ways to organize a catalogue www.themegallery.com Methods 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. Company Logo Six aspects of catalogue design: The catalogue size Catalogue format Catalogue copy 1.Mini-catalogue 2.Spread design 3.Space allocation 4.Affinity Merchandise arrangement www.themegallery.com 1.Grade of paper Visual presentation 0rder form 2.Typeface 3.Pictures Company Logo 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. www.themegallery.com 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 Company Logo www.themegallery.com Mini – catalogues (con’t) -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 Company Logo Grade of paper Heavier coated paper - allows much finer detail and colour in the printing process and can help project an upmarket image. www.themegallery.com 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. Company Logo Company Logo www.themegallery.com Size of paper stock www.themegallery.com 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 Company Logo 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 www.themegallery.com Serif typeface -like those used in most newspaper, with their little fillips and tails, are easier to read than plain Company Logo 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 Serif front www.themegallery.com 30 point Times New Roman Serif front 30 point Arial Company Logo Company Logo www.themegallery.com Pictures It is possible to put together a catalogue using vendor supplied material that can be pasted right into the desktop publishing document. www.themegallery.com 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. Company Logo Company Logo www.themegallery.com Spread design It is worthwhile designing the whole spread of two facing pages rather than single pages www.themegallery.com 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. Company Logo Company Logo www.themegallery.com Spread design (Con’t) www.themegallery.com 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. Company Logo Company Logo www.themegallery.com Space allocation 1 www.themegallery.com 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. Company Logo Space allocation Often this can be approximated from: www.themegallery.com Its sales history Price levels and margin as compared to other items in the catalogue Suppliers’ experience Comparison with competitors’ catalogues and advertiseme nt. Company Logo www.themegallery.com Space allocation Figure 9.4 Relationship between space and sales follows a response function Company Logo Space allocation www.themegallery.com 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. Company Logo www.themegallery.com How to do the copy 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. Company Logo www.themegallery.com Logical ① Copy points follow a logical sequence for each product ② Same logic applied to all products ③ Logical sequence of products Clear ① What level of understanding is it aimed at? ② Does it make sense? ③ Is it easy to read? ④ Abbreviations and technical language defined? Persuasive ① Copy starts with a strong selling message② Copy stresses benefits ③ Selling message on cover ④ Headlines focus on problem solutions or benefits ⑤ Reader drawn into descriptions Enough information included ① To make a buying decision ② To order a specific product ③ Easy to place an order ④ All important product details Company Logo Consistent / accurate Believable Boilerplate copy www.themegallery.com (copy that is standardised & used in each catalogue) ① Use of logos and trademarks ② Spelling and abbreviations ③ Punctuation, grammar and capitalization ④ Units of measure ⑤ Table and chart formats ⑥ Layouts ⑦ Copy style ⑧ Visuals ⑨ Technical accuracy checked by appropriate people ⑩ Photos current …and so on Product claims backed up ① Starting and finishing dates of price deals ② How to order ③ Notification of possible price changes ④ Payment terms and methods ⑤ Shipping and handling ⑥ Return policy ⑦ Discounts ⑧ Credit terms ⑨ Sales tax ⑩ Trademark information …and so on More details please open page 283-284 Company Logo 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 www.themegallery.com Enough space to write on the form Business reply envelope Phone, fax, email and website information Easy to send for more information Company Logo 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. www.themegallery.com - Why they should buy from you instead of someone else. Company Logo They won’t buy if they don’t read it www.themegallery.com 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-toget 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. Company Logo Summary www.themegallery.com Successful modern catalogues provide specific niche markets with well targeted assortments of merchandise and levels of service and expertise not easily available elsewhere. Catalogues range from simple monotone efforts to glossy full colour coffee table quality books. Catalogues are still published on paper but many are now being made available on CDROM and on the internet. It’s essential that all aspects of the catalogues be checked carefully prior to publication. A well designed cover can enhance the readers’ willingness to look at what the book contains. Company Logo LOGO Let’s go to Chapter 10 ! LOGO CHAPTER 10 Direct marketing business to business Prepared by: 07308039 07308064 邓慧娴 罗丹丹 LEARNING OBJECTIVES www.themegallery.com This chapter gives an overview of how businesses use direct marketing strategies and what benefits are obtained from business to business direct marketing transactions. Company Logo What is B2B marketing? Definition Business to Business marketing is ‘Business that sells products or provides services to other businesses’. www.themegallery.com 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. Company Logo Compare with B2C Base on basic elements B2B = B2C www.themegallery.com Base on actual implementation B2B ≠ B2C Company Logo Standards of choosing individuals Users of the product Influencers who set the product specifications www.themegallery.com Deciders who make the actual purchase decision Gatekeepers who control the flow of purchasing information Buyers who process the purchase orders Company Logo Definition of users www.themegallery.com Segmentation Division of potential customers into market segments according to how and for what purpose they use a product. Company Logo Definition of influencers www.themegallery.com Individuals 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 Company Logo Definition of deciders www.themegallery.com Deciders 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. Company Logo www.themegallery.com Definition of gatekeepers Member 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. Company Logo Definition of buyers www.themegallery.com Professional purchaser specializing in a specific group of materials, goods, or services, and experienced in market analysis, purchase negotiations, bulk buying, and delivery coordination. Company Logo Weakness of B2B There are many opportunities for business lists to become out of date. www.themegallery.com 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. Company Logo Don’t be afraid … TO KEEP IN MIND: www.themegallery.com 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. Company Logo Activities of B2B direct marketers Four main activities Acquiring new business leads Lead qualification programs Outsourcing lead generation www.themegallery.com Lead tracking and management Leads for in-house use Leads for reseller agent’s use Planning and managing lead generation programs Company Logo Four main activities of B2B direct marketers Lead generation Lead qualification www.themegallery.com Making the sale Maintaining customer relationships BACK Company Logo www.themegallery.com Definition of lead generation Lead 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. Company Logo Why acquiring new business leads? www.themegallery.com 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. Company Logo How to acquire new business leads? www.themegallery.com 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 Company Logo 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. www.themegallery.com 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. Company Logo How to seek out a qualified lead? Profiled the sorts of businesses you wish to target www.themegallery.com 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.) Company Logo 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 www.themegallery.com and so on … Company Logo Why we need qualifying prospects/leads? Help to contact the prospects via mail or another medium For example, advertising, email or internet www.themegallery.com Help to exhibit in trade fairs relative to your business and industry. Company Logo To remember … You have found or qualified a lead, it must be followed up immediately. www.themegallery.com To create an impression of professionalism and reliability early in the development of a relationship with a new customer. BACK Company Logo Outsourcing lead generation www.themegallery.com 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 Company Logo Lead tracking and management www.themegallery.com 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. Company Logo Lead tracking and management HOW It must be recognized that an organization has invested time and money into securing each qualified lead. www.themegallery.com 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? BACK Company Logo 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. www.themegallery.com 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 Company Logo 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. www.themegallery.com 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. Company Logo How to reform weakness? www.themegallery.com 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 Company Logo Planning and managing lead generation programs www.themegallery.com 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. Company Logo Planning and managing lead generation programs www.themegallery.com 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. BACK Company Logo Definition of Databases serve as a memory bank of everything that happens between a business and any other business. www.themegallery.com 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. Company Logo The characteristics of business to business database the number of customers and prospects of business-tobusiness (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. www.themegallery.com 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. Company Logo 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 www.themegallery.com 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. Company Logo 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. www.themegallery.com 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. Company Logo 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. www.themegallery.com 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. Company Logo www.themegallery.com 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 Company Logo Buying-Decision Process need recognition: determine what needs are most important to the buyer identify alternatives for buying the product www.themegallery.com evaluate those alternatives on certain criteria make the decision to buy and related decisions pertaining to delivery, credit, etc. post purchase decisions include evaluation of the supplier and of the product or service Company Logo Buy classes Buy phases 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 Maybe N Maybe N www.themegallery.com Phase 6:Analyse proposals and select supplier Y Phase 7:Select order routine Y Phase 8: Evaluate product and supplier performance Y Y Y Company Logo 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. www.themegallery.com 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. Company Logo Telephone May be used for both inbound and outbound communication. www.themegallery.com The development of relationships with existing customers and leads. Company Logo Electronic media Become a popular means of direct communications in business to business. www.themegallery.com It includes email, the internet and faxes. Company Logo Catalogues Catalogues could be classified as a version of direct mail. www.themegallery.com They deserve a special mention as a medium of business to business direct marketing Company Logo Trade shows www.themegallery.com They are particularly good at generating and qualifying leads as well as making direct sales from the floor of the trade fair. Company Logo www.themegallery.com 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 Company Logo LOGO