Direct Marketing Strategies

Chao Onlamai

What is Direct Marketing?

• Direct Marketing is not mass direct mailing– ‘Advertising in an envelope’ – an advertising

message inserted into an envelope and mass-mailed-does not qualify as Direct Marketing or Direct Mail

• DM is interactive and response can be tracked and measured.

• DM is database-driven– All marketing data is stored on a database, and

qualified and updated on a periodic basis

Overview• Direct marketing is a channel-agnostic form

of advertising which allows businesses and nonprofit organizations to communicate straight to the customer, with advertising techniques that can include cell phone text messaging, email, interactive consumer websites, online display ads, database marketing, fliers, catalog distribution, promotional letters, targeted television commercials, response-generating newspaper/magazine advertisements, and outdoor advertising. Amongst its practitioners, it is also referred to as Direct Response.

Focal Points

• Direct marketing messages emphasize a focus on the customer, data, and accountability. Hence, besides the actual communication, creation of actionable segments, pre- and post-campaign analytics, and measurement of results, are integral to any good Direct Marketing campaign.

Characteristics that distinguish direct marketing are:

• A database of names (prospects, customers, businesses, etc.), often with certain other relevant information such as contact number/address, demographic information, purchase habits/history, company history, etc., is used to develop a list of targeted entities with some existing common interests, traits or characteristics. Generating such a database is often considered part of the Direct Marketing campaign.

Target Market

• Marketing messages are addressed directly to this list of customer and/or prospects. Direct marketing relies on being able to address the members of a target market. Addressability comes in a variety of forms including email addresses, phone numbers, Web browser cookies, fax numbers and postal addresses.

Call to Action

• Direct marketing seeks to drive a specific "call to action." For example, an advertisement may ask the prospect to call a free phone number, mail in a response or order, or click on a link to a website.

• Direct marketing emphasizes trackable, measurable responses, results and costs from prospects and/or customers—regardless of medium.

Size of the businesses

• Direct marketing is practiced by businesses of all sizes—from the smallest start-up to the leaders on the Fortune 500. A well-executed direct advertising campaign can prove a positive return on investment by showing how many potential customers responded to a clear call-to-action. General advertising eschews calls-for-action in favor of messages that try to build prospects’ emotional awareness or engagement with a brand. Even well-designed general advertisements rarely can prove their impact on the organization’s bottom line. The demonstrable result of Direct Marketing is the reason for its increasing popularity.

Benefits

• Direct marketing is attractive to many marketers because its positive results can be measured directly. For example, if a marketer sends out 1,000 solicitations by mail and 100 respond to the promotion, the marketer can say with confidence that campaign led directly to 10% direct responses. This metric is known as the 'response rate,' and it is one of many clearly quantifiable success metrics employed by direct marketers. In contrast, general advertising uses indirect measurements, such as awareness or engagement, since there is no direct response from a consumer.

Measurement of results• The Internet has made it easier for marketing managers to

measure the results of a campaign. This is often achieved by using a specific website landing page directly relating to the promotional material. A call to action will ask the customer to visit the landing page, and the effectiveness of the campaign can be measured by taking the number of promotional messages distributed (e.g., 1,000) and dividing it by the number of responses (people visiting the unique website page).

• Another way to measure the results is to compare the projected sales or generated leads for a given term with the actual sales or leads after a direct advertising campaign.

CHALLENGES AND SOLUTIONS

Success of any Direct Marketing campaign, in terms of number of times the desired response may vary between the best vs. the worst of the following parameters, depends on:

Campaign measurements

• List or targeting (best targeting may yield up to 6 times the response, as compared with the worst targeting)

• Offer (best offer may yield up to 3 times the response, as compared with the worst offer)

• Timing (best timing for the campaign may yield up to 2 times the response, as compared with the worst timing)

• Ease of response (best/multiple ways offered to respond may yield up to 1.35 times the response, as compared with not-so-friendly response mechanism/s)

• Creativity (most creative messaging may yield up to 1.2 times the response, as compared to the least creative messaging)

choosing the best of all the right parameters may yield up to 58

times more response, as compared to choosing the worst parameters.

• Media employed. The medium/media used to deliver a message can have a significant impact on responses. It's difficult to truly personalize a DRTV or radio message. One can even attempt to send a personalized message via email or text message, but a high quality direct mail envelope and letter will typically have a better chance of generated a response in this scenario.

Concerned matters

• Some of these concerns have been addressed by direct marketers by the use of individual "opt-out" lists, variable printing, and better-targeted list practices. Additionally, in order to avoid unwanted mailings, members of the marketing industry have established preference services that give customers more control over the marketing communications they receive in the mail.

Privacy

• The term "junk mail," referring to unsolicited commercial ads delivered via post office or directly deposited in consumers' mail boxes, can be traced back to 1954.[1] The term "spam," meaning "unsolicited commercial e-mail," can be traced back to March 31, 1993,[2]although in its first few months it merely referred to inadvertently posting a message so many times on UseNet that the repetitions effectively drowned out the normal flow of conversation.

1. Entry for junk, Online Etymology Dictionary. Retrieved February 19, 2008.

2. Origin of the term "spam" to mean net abuse, Brad Templeton's website. Retrieved February 19, 2008.

Filtering Programs• Can-Spam gives recipients the ability to stop

unwanted emails, and set out tough penalties for violations.[1] Additionally, ISPs and email service providers have developed increasingly effective Email Filtering programs. These filters can interfere with the delivery of email marketing campaigns, even if the person has subscribed to receive them,[2] as legitimate email marketing can possess the same hallmarks as spam. There are a range of email service providers that provide services for legitimate opt-in emailers to avoid being classified as spam.

1. FCC: Spam, Unwanted Text Messages and Email

2. What is a "Whitelist" and why do I want to work with a "Whitelisted" Mail Distributor?

Database Quality

• While many marketers recognize the financial benefits of increasing targeted awareness, some direct marketing efforts using particular media have been criticized for generating poor quality leads, either due to poor message strategy or because of poorly compiled demographic databases. This poses a problem for marketers and consumers alike, as advertisers do not wish to waste money on communicating with consumers not interested in their products.

CHANNELS

Any medium that can be used to deliver a communication to a customer can be employed in direct marketing.

Email marketing

• Sending marketing messages through email or email marketing is one of the most widely used direct-marketing methods.[1] One reason for email marketing's popularity is that it is relatively inexpensive to design, test, and send an email message. It also allows marketers to deliver messages around the clock, and to accurately measure responses.

1. Ayyadurai, VA Shiva (2013). The Email Revolution: Unleashing the Power to Connect. ISBN 978-1621532637.

Online tools

• With the expansion of digital technology and tools, direct marketing is increasingly taking place through online channels. Most online advertising is delivered to a focused group of customers and has a trackableresponse.

• Display Ads are interactive ads that appear on the Web next to content on Web pages or Web services. Formats include static banners, pop ups, videos, and floating units. Customers can click on the ad to respond directly to the message or to find more detailed information. According to research by eMarketer, expenditures on online display ads rose 24.5% between 2010 and 2011.[1]

1. eMarketer Press Release, June 2011

Online tools• Search: 49% of US spending on Internet ads goes to

search, in which advertisers pay for prominent placement among listings in search engines whenever a potential customer enters a relevant search term, allowing ads to be delivered to customers based upon their already-indicated search criteria.[1] This paid placement industry generates more than $10 billion for search companies. Marketers also use search engine optimization to drive traffic to their sites.

• Social Media Sites, such as Facebook and Twitter, also provide opportunities for direct marketers to communicate directly with customers by creating content to which customers can respond.

1. DMA 2011 Statistical Fact Book, Chapter 4

Mobile

• Through mobile marketing, marketers engage with prospective customers and donors in an interactive manner through a mobile device or network, such as a cellphone, smartphone, or tablet. Types of mobile marketing messages include: SMS (short message service)—marketing communications are sent in the form of text messages, also known as texting. MMS (multi-media message service)—marketing communications are sent in the form of media messages.

Phone

• In October 2013, the Federal Telephone Consumers Protection Act made it illegal to contact an individual via cell phone without prior express written consent for all telephone calls using an automatic telephone dialing system or a prerecorded voice to deliver a telemarketing message to wireless numbers and residential lines. An existing business relationship does not provide an exception to this requirement.

Mobile Applications: Smartphone-based mobile apps contain several

types of messages.

• Push Notifications are direct messages sent to a user either automatically or as part of a campaign. They include transactional, marketing, geo-based, and more. Rich Push Notifications are full HTML Push Notifications.

Mobile Applications

• Mobile apps also contain Interactive ads that appear inside the mobile application or app; Location-Based Marketing: marketing messages delivered directly to a mobile device based on the user's location; QR Codes(quick-response barcodes): This is a type of 2D barcode with an encoded link that can be accessed from a smartphone. This technology is increasingly being used for everything from special offers to product information. Mobile Banner Ads: Like standard banner ads for desktop Web pages but smaller to fit on mobile screens and run on the mobile content network

Telemarketing

• Marketers contact customers by phone. The primary benefit to businesses is increased lead generation, which helps businesses increase sales volume and customer base. The most successful telemarketing service providers focus on generating more "qualified" leads that have a higher probability of getting converted into actual sales.

Telemarketing

• A consumer who does not wish to receive further prerecorded telemarketing calls can "opt out" of receiving such calls by dialing a telephone number (required to be provided in the prerecorded message) to register his or her do-not-call request. The provisions do not cover calls from political organizations or charities.[1]

1. FCC Report and Order, February 15, 2012 "Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991", CG Docket No. 02-278. [1]

Voicemail marketing• Voicemail marketing emerged from the market

prevalence of personal voice mailboxes, and business voicemail systems. Voicemail marketing presented a cost effective means by which to reach people directly, by voice. More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved for telemarketing. Because guided voicemail is used to contact only businesses, it is exempt from Do Not Call regulations in place for other forms of voicemail marketing.

Broadcast faxing

• Broadcast faxing, in which faxes are sent to multiple recipients, marketers send commercial faxes to those with whom they have an established business relationship (EBR), but imposes some new requirements. These requirements include providing an opt-out notice on the first page of faxes and establishing a system to accept opt-outs at any time of the day. Roughly 2% of direct marketers use fax, mostly for business-to-business marketing campaigns.[1]

1. DMA 2010 Response Rate Report

Couponing

• Couponing is used in print and digital media to elicit a response from the reader. An example is a coupon which the reader receives through the mail and takes to a store's check-out counter to receive a discount.

Digital Coupons• Manufacturers and retailers make coupons available

online for electronic orders that can be downloaded and printed. Digital coupons are available on company websites, social media outlets, texts, and email alerts. There are an increasing number of mobile phone applications offering digital coupons for direct use.

• Daily Deal Sites offer local and online deals each day, and are becoming increasingly popular. Customers sign up to receive notice of discounts and offers, which are sent daily by email. Purchases are often made using a special coupon code or promotional code. The largest of these sites, Groupon, has over 83 million subscribers.[1]

1. New York Times Article, June 2 2011 - Groupon Plans I.P.O. With $30 Billion Valuation

Direct response marketing

• Direct Response Marketing is designed to generate an immediate response from consumers, where each consumer response (and purchase) can be measured, and attributed to individual advertisements.[1] This form of marketing is differentiated from other marketing approaches, primarily because there are no intermediaries such as retailers between the buyer and seller, and therefore the buyer must contact the seller directly to purchase products or services. Direct-response marketing is delivered through a wide variety of media, including DRTV, radio, mail, print advertising, telemarketing, catalogues, and the Internet.

1. "Direct Response Advertising Glossary"; February 8, 2011.

Direct response mail order

• Mail order in which customers respond by mailing a completed order form to the marketer. Mail order direct response has become more successful in recent years due to internet exposure.[1]

1. Huff, Priscilla. "Why the Internet is Causing Mail Order to Boom". Home Business Magazine. Retrieved 3 October 2012.

Direct response television

• Direct marketing via television (commonly referred to as DRTV) has two basic forms: long form (usually half-hour or hour-long segments that explain a product in detail and are commonly referred to as infomercials) and short form, which refers to typical 30-second or 60-second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website).

Infomercials• TV-response marketing—i.e. infomercials—can be

considered a form of direct marketing, since responses are in the form of calls to telephone numbers given on-air. This allows marketers to reasonably conclude that the calls are due to a particular campaign, and enables them to obtain customers' phone numbers as targets for telemarketing. One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI. Several aspects of ad, such as its use of adding items to the offer and the guarantee of satisfaction were much copied, and came to be considered part of the formula for success with short-form direct-response TV ads (DRTV).

Infomercial

• Forms of direct response marketing on television include standard short form television commercials, infomercials and home shopping networks. Short-form direct-response commercials have time lengths ranging from 30 seconds to 2 minutes. Long form infomercials are typically 30 minutes long. An offshoot of the infomercial is the home shopping industry. In this medium, items can potentially be offered with reduced overhead.[1]

1. Dickler, Jessica. "Home Shopping Networks Go High End". CNN Money. Retrieved 3 Oct 2012.

Direct response radio

• In direct response radio, ads contain a call to action with a specific tracking mechanism. Often, this tracking mechanism is a "call now" prompt with a toll-free phone number or a unique Web URL. Results of the ad can be tracked in terms of calls, orders, customers, leads, sales, revenue, and profits that result from the airing of those ads.

Direct response magazines and newspapers

• Magazine and newspaper ads often include a direct response call-to-action, such as a toll-free number, a coupon redeemable at a brick-and-mortar store, or a QR code that can be scanned by a mobile device—these methods are all forms of direct marketing, because they elicit a direct and measurable action from the customer.

• Other media, such as social media, search engine marketing and e-mail can be used to elicit the response. A survey of large corporations found e-mail to be one of the most effective forms of direct response.[1]

1. Miller, Steve. "Study: E-Mail is The Most Effective Form of Direct Response". Adweek. Retrieved 3 Oct 2012.

Direct mail

• The term advertising, or direct mail, is used to refer to communications sent to potential customers or donors via the postal service and other delivery services. Direct mail is sent to customers based on criteria such as age, income, location, profession, buying pattern, etc. Direct mail includes advertising circulars, catalogs, free-trial CDs, pre-approved credit card applications, and other unsolicited merchandising invitations delivered by mail to homes and businesses. Bulk mailings are a particularly popular method of promotion for businesses operating in the financial services, home computer, and travel and tourism industries.

Direct mail database

• In many developed countries, direct mail represents such a significant amount of the total volume of mail that special rate classes have been established. Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following database analysis to select recipients considered most likely to respond positively. This use of database analysis is a type of database marketing.

Insert media

• Another form of direct marketing, insert media are marketing materials that are inserted into other communications, such as a catalog, newspaper, magazine, package, or bill. Coop or shared mail, where marketing offers from several companies are delivered via a single envelope, is also considered insert media.

Out-of-home

• Out-of-home direct marketing refers to a wide array of media designed to reach the consumer outside the home, including billboards, transit, bus shelters, bus benches, aerials, airports, in-flight, in-store, movies, college campus/high schools, hotels, shopping malls, sport facilities, stadiums, taxis—that contain a call-to-action for the customer to respond.

Grassroots/community marketing

• The door-to-door distribution of flyers and leaflets within a local community is a business-to-consumer form of direct marketing used extensively by restaurants, fast food companies, and many other business focusing on a local catchment. Similar to direct mail marketing, this method is targeted purely by area and community, and costs a fraction of the amount of a mailshot, since it is not necessary to purchase stamps, envelopes, or address lists with the names of home occupants.

ROOTS OF WORDSmeaning

Definitions• Material Handling + Warehousing + Transportation +

Routing + Storage = Logistic• EDI + Logistic + Procurement = SCM• SCM + online/bar code technology = ECR• Call Center + Training + Script Writing = Telemarketing• Telemarketing + Database Management + Segment +

Media = Direct Marketing• Telemarketing + Database Management + Life Time

Value of Customer = CRM• Direct Marketing + Online/Wireless Technology = ER

Direct Marketing is leading the way

In the past, DM industry opened the way tochange with the ROI (Return on Investment)concept. Roi began to place accountability toperform with media. But, when the new mediabegan emerging at an extremely fast pace, itbecome more difficulet to measure theiraccountability. This lead marketer to review themetrics used to calculate value.

DM lead the way

• Again, DM industry led the way by developing theLifetime Value (LTV) concept. LTV place the metricson how important the customer is to theorganization over the time they will purchasegoods and services.

• Customer today want to have informationprovided to them when they want it and in themedia that is best suited for them. Perhaps, thisgenerate the new word “CRM”.

DM Application benefits• Gets your message to your selected audience• Sends traffic to your store, shop or restaurant• Gains you a visitor at a trade show• Drives a prospect to your WWW site• Increase your sale from current customer

• Generate a phone or email response• Builds on-going relationship with your customers

• Expand your business• Launch new products• Upgrade your channel of distribution

When DM should work ? • When you can clearly Identify your Target audience

• When you can clearly Reach your Target audience

• When you have a lot to say to your Target audience

• When you have a repeat sale or continuity sale

product

• When you need to control the entire selling process

• When you want less visibility in the marketplace

Principle of Direct Marketing

• Action Oriented : you got to do something

• Measurable : what works or what is not

• Persuasive : it is not soft sale, it is hard sale

• A $ale discipline : it is the sale or leads to sale

Assumption of Direct Marketing

• I don’t know who you are• I don’t know your company• I don’t know your company’s product• I don’t know your company’s customer• I don’t know your company’s reputation• I don’t know your company’s records

Now-what was it youwanted to sell me ?

Direct marketing Advance Application

1.Continuity program

2.Subscription program

3.Sequential program

4.Collection program

5.Member Club

6.Customer Loyalty Program

Direct Marketing evolution

This decade

DM in this decade

• In the past 50 years, human race have discover

the new knowledge 50 times from 2000 years

ago.

• In the past 10 years, human race have discover

the new knowledge more than 50 times from 50

years ago.

• The technology is the main factors to change the

consumer’s life and leading the way of society.

DM in this decade

• The product life cycle is even more shorter and

more complication

• The consumer have been fragmented into smaller

group and they need a lot of information.

• When present consumer want something, they

want it. And they want it NOW !!!!

DM in Thailand

• Infrastructure– Post Service– National Delivery– Metropolitan Map Management

• Banking System• Perception of Customer• Telecommunication• Regulation• Association• Credit Card Penetration

DM in Thailand• Outsourcing Service

– Telemarketing– Fulfillment

• Competition• Market Situation• Consumer Behavior• Technology Support• Government Policy• Privacy Law• The Future Trends : Convergence

DM FOR BALANCED CHANNEL OF DISTRIBUTION

Direct Marketing

Distribution Channels

• CONVENTIONAL CHANNEL

– MODERN TRADE

– TRADITIONAL TRADE

• DIRECT CHANNEL

– DIRECT MARKETING

– DIRECT SELLING

Conventional Channels

Modern Trade

– Superstore

– Hypermarket

– Cash & Carry

– Supermarket

– Convenience Store

– Categories Killer

Traditional Trade

– Papa Mama Store

– Drug Store

– Personal Kiosk

Direct Channels

Direct Selling

– Single Level

– Multi Level

– Binary

– Pyramid

– Money Game

– Database Marketing

– Etc.

Direct Marketing

– Direct Mail

– Mail Order

– Telemarketing

– Direct Response TV

– DR Radio

– DR Press advertising

– Email Marketing

– Mobile Marketing

– Interactive TV

– Database Marketing

Channel Equilibrium and Implications

• For multi channel players, value and pricing of the products have to be the same in all channels.

• Fast and accuracy for the offers are keys to success factors.

AUDIENCESDatabase Management

The layers of database• SUSPECTIVE

– Define the whole target group such as Man/Women

• PROSPECTIVE

– When you do something and your suspects response to your campaign

• FIRST TIME CUSTOMER

– The prospects that transform to your very first time customer

• CUSTOMER

– From 1st time to be more often purchasing

• REGULAR CUSTOMER

– Every month purchaser of your product/service

• MEMBER CLUB

– Some want that see your credential and they want to belong to

• ADVOCATE

– Anyone that can speak out to defense you when any look down

Database Management

• Database is the key success of future

• Conceptual purpose of database

• Source of Database

• Maintenance and update base

• Focus on non-active base

• Design Report for output

• How to Gauge the base’s response

– Sale and Response reflect marketing strategy

– Reject mail reflect accuracy of base

Key elements of database

• Profiling

• Targeting

• Segmentation

– Demography

– Psychographic

– Geography

• Database Marketing and Data Mining

Objective

Step 1 : Objective :

Customer acquisition ?

Customer Loyalty and retention ?

Cross Selling ?

Analysis of your distribution channel ?

Market Development ?

Expense Reduction

OFFER

It’s amazing how 50% off make you feel 100% better - Guaranteed!

Sample of OFFER

– 1/2 price or 50 % off

– Buy one get 1 free

– Free Trail or Money Back Guarantee

– Save 25% or Buy 9 get 3 free

7 ways to make offers

• UPGRADE : Upgrade the product

• DOWNGRADE : Make sure that no impact to image

• BUNDLE : Combine

• UNBUNDLE : Separate

• NARROWCAST : Smaller

• MASS MARKET : Bigger

• PRICE : Same for More

PRODUCTION/MEDIADM MEDIA/TOOLING

1-2-3

1. DM MEDIA…

• Address Media (Proactive)

– Direct Mail

– Catalogue

– Customer Magazine

– Card Desks

– Royal Mail’s Mail sort Programmed (CBC)

– Telemarketing

Direct Mail

• Direct Mail, the 110 years marketing method since 1892 in Venice

• Direct Mail is the personally addressed advertising that is delivered through the post.

• Direct Mail is the major weapon in the direct marketer’s armory.

• Brand Name will love it so much

• Either providing information, make sale or lead sale

• Good plan, using Idle capacity will lead the cost saving

4 Factors of Direct MailHow to generate response :

• Subject Matter

• Brand Relationship

• Personality types

• Creative Execution.

• The most powerful contributor to consumer response to direct mail is the subject matter of the direct mail piece itself.

• Having the right offer at the right time is paramount to success.

• The important of ensuring that consumers receive direct marketing which is relevant to their lives.

Subject Matter

Brand Relationship

• The relationship between brand and customers are viewed as necessary for the successful implementation of direct mail programs.

• You must remember sense of belonging always be there.

• Customer seem to be far more willing to accept and respond to direct mail which comes as a result of the relationship between them and the organization.

• Personality type basically refers to whether the consumer has a positive or negative attitude toward direct mail in general and this also contributes to the level of response.

• But the excellent creative execution will engage the recipient’s attention and interest and may also encourage them to respond.

Personality Types

• But the excellent creative execution will engage the recipient’s attention and interest and may also encourage them to respond.

Creative Execution

• Direct mail offer the marketer a great deal of selectivity.• Direct mail is a particularly flexible medium. It can be used for

a wide range of application and with an equally wide range of different format.

• Direct Mail offers the opportunity for personalization of the message.

• Direct Mail facilitates testing operation and lends itself to measurability.

• Direct Mail has a wide variety of devices at its disposal which can be used to engage the involvement of the recipient white he or she is making a decision about whether or not to respond.

Advantages of Direct Mail

• Direct Mail is not cheap medium to use. On a cost per thousand basis direct mail cannot compete with the likes of press or television. Especially, for low-cost products and whose consumers are spread over a wide geographic area.

• Direct Mail has to some extent failed to live up to its promise of increased response rates following the introduction of complex modeling procedures, geo/demographic and lifestyle profiling, and the detailed consumer information to which direct marketers now have access.

Disadvantages of Direct Mail

1. Understand why you use an envelope2. Gain attention with the letter3. Benefits, Benefits, Benefits4. Take command of the “from me to you” medium5. Dear Occupant :6. Over, please…7. Here is exactly how long to make your letter 8. “Just Love it.” Your Testimonials9. It isn’t just what you write; it’s how you show it10.If you want something, ask for it11.P.S. I love you12.BRC could stand for business received competently

Prescription for Persuasion

Catalogues• Mail Order also play a major role to selling the current

product and involving the introduction of new product lines

• Most Catalogues are aim to support the fundamental way of business like network agent, cash-strapped housewives who earned commission by introducing others to the catalogue and ordering products on their behalf.

• The competitive advantage which these catalogues posses revolves around the easy credit terms which they have to offer and which customers cannot obtain elsewhere.

Specialogues

• One recent development of huge importance within the mail order industry has been the growth of more specialized catalogue or “SPECIALOGUES”

• Specialogues compete on the basis of being more tightly targeted than the big book counterparts, focusing on particular segments of the consumer market. Mostly, focusing on up-market product

• Customers value convenience and quality, they are prepared to pay extra for these features.

• Advantage of Specialogues is the speed with which they can send to recipients.

Type by Sizes

• Flyer : 1 block, A4

• Leaflet : A4, Legal, A3 (normal), A3-6 blocks

• Catalog : A5, A4, Other Size

Type by Methods

• Credit Card Syndication/Inserting

• Solo Mail

• Follow Up Catalog

Categories Management

• One Single Product– make sure it is high price product

• Same Category but different product

– complementary categories for upselling

• Cross Products and different categories

– don’t compete each other

Layout

• No innovative font applied, just plain, easy andclean font

• Point of font should be 5-8 characters percentimeter

• Block Style or Free Form

• Same page should be same color as theme

• If you make catalog, make sure that your bestseller placing more than one position in thecatalog.

Space Management

• Best Seller always get best position at best size

• Do not clear stock by the sellable space

• Printing is no idle, you can reduce size andexpand size as you wish

• Keep printing as low as 15% per square inches

Secret to more Sale

• Keep your offer as an upsell item

• Always make you offer a different format

• Don’t not forget the campaign promotion

• Trying to use Free Gift rather than Discount

CUSTOMER MAGAZINE NEWSLETTER

Customer relations

Customer Magazines

• A new dimension to their customer loyalty program in the form of customer magazine. Originate from Airline, and financial industry. Now it is being utilized by retailers and fast moving consumer goods.

• It should be able to tailor the magazines to tightly defined customer segments.

• Maintaining loyalty is the major focus of these magazine.

• Secondary feature is that they can be utilized for data collection purposes.

Customer Magazines

• Secondary feature is that they can be utilized for data collection purposes. Customer information can be gleaned from vouchers, coupons and competitions and used to identify prospects for other direct marketing campaigns.

• Customer Magazine can be quite costly. It is rarely the case that production and distribution cost can be covered by advertising revenue.

• Fostering customer loyalty comes at a price but does pay dividends in the long term.

CARD DESKSB2B

Card Desks

• Card Desks originally evolved from the market for business-to-business periodicals.

• Publishers extended the use of their circulation lists by mailing packs of advertising reply card to industry readers till 1980s that card desks were used within consumer marketing.

• Now many organization begin to recognize the useful role they can play within the field of direct marketing.

• The medium appeals particularly to advertisers in financial services, travel and home improvement sectors

Card Desks

• Card Desks work best as a cost effective means of generating leads and enquiries or raising awareness of a brand prior to a mailing approach.

• Response level for card desks are not the greatest and there a high degree of wastage. However, response depends to a large extent on the nature of the offer.

• Even low level of response the card desk can still be relatively cost-effective.

TELEMARKETING

Call Center

Telemarketing

• Always remember we are human. We need to talk. Till the technology could not let machine having brain to interact then telemarketing will be necessary.

• It is the art of speed• It is the efficient sale tools• No matter what they will call, the main elements

still be the script writing skill.• Require highly imagination of agents.• Go and learn how your PABX can help you

Telemarketing Purposes

• New customer acquisition

• Reactivation of past customer

• Upgrading current customers

• Screening and qualifying leads

• Covering a wide geographical spread

• Market research and database building

Telemarketing Technology

• IVR-Interactive Voice Response. IVR are limited to inbound telemarketing campaigns to provide 24 hours customer access.– Minimize Call Abandonment

– Accesses

– Consistency

– Flexibility

– Cost

– Artificial

– Limited Data Collection

The important of Personnel

• Although the role of technology with the telemarketing industry is increasing, the part played by people is arguably more important than ever.

• Contemporary telemarketing encompasses areas such as customer service, consumer complaint handling and technical support.

• Having the right personnel is essential for the successful implementation of a modern telemarketing program.

Outbound Telemarketing• Always remember you choose to be cost-center or

profit-center by doing this telemarketing

• Do not over investment into the system if you did not prove it is making a profit for you.

• Script Writing is the key success.

• Outbound telemarketing can apply as follows :– Customer service

– List Updated

– Double check the campaign

– Survey the opinion

– Making a relationship

7 Money-Saving Tips for Outbound

1.Beware of the low bid (in case of outsourcing)

2.Keep your list clean

3.Avoid the hourly rate

4.Avoid last-minute changes, “Plan as much as you can in advance”

5.Set limits on training fees

6.Consider time of day7.Choose an experienced telemarketer

Telemarketing Script

• Work closely with your telemarketer to make sure it’s

easy for your caller to order, and also easy to up-

selling, test and capture information.

• Remember that the priority is making the sale. A

neophyte DMer put so many Qs at the top of the script

that callers became annoyed and many hung up.

• After you‘ve captured the caller’s name, address and

credit card number, is the time to ask a reasonable

number of Questions.

Telemarketing Script SampleQ1 ขอบคณทโทรสงซอ….. ผมรบกวนขอชอและนามสกลดวยครบQ2 ผมขอทอย เบอรโทรศพท และรหสไปรษณยดวยครบQ3 จะช าระเงนดวยเครดตหรอช าระดวยเงนสดดครบQ4 ขอทราบชอบนบตรเครดตดวยครบQ5 ขอทราบหมายเลขเครดตการดดวยครบQ6 ผมขอวนทบตรหมดอายดวยครบQ7 ขอบคณครบ คณตองการสงซอ…..จ านวนกชดครบส าหรบวนน

ถาลกคาพรอมสงซอไป Q8ถาลกคายงไมพรอมจะซอไป Q10

Telemarketing Script SampleQ8 คณลองพจารณาสงซอจกรเยบผา PERFECT STICH เพมเตมตอนนเลยด

ไหมครบ เพราะลกคาเราสวนใหญชอบสนคานมาก และจะไดไมตองเสยเวลาคอย อกทงยงประหยดคาจดสงดวยไปท Q9

Q9 คณตองการจะรบจกรนเพมเตมเพอเปนของขวญใหคนทคณรกละก จะเปนการท าใหพวกเขาประหลาดใจและดใจมากเลยนะครบ เพราะ Perfect Stitch เหมาะส าหรบทงครอบครวของคณและเพอนสนทมตรสหายไปท Q10

Q10 ผมขอเวลาสกครเพอทจะอธบายเกยวกบตวสนคาเพมเตมนะครบ เพราะสนคานเปนสนคาใหมลาสด มขนาดเบากะทดรด เยบไดทงงานงายๆไปจนถงงานทตองใชผมอ มความทนทาน พรอมการรบประกนคณภาพหนงปเตม ทส าคญเรายงมการรบประกนความพอใจอดวย จะรบสกหนงหรอสองชดดครบลกคาสงไป Q9

Advantage of telemarketing

• Once it is carefully planned and controlled, telemarketing is highly selective in nature.

• Telemarketing provide a quick and accurate means of collecting up-to-date and pertinent information.

• The flexibility of telemarketing ensures that the medium can be used to contact consumers across a wide geographic area and calls can be timed to suit the contact and to provide maximum response level.

• Testing is also facilitated by telemarketing.• Telemarketing is the proficiency it offer in support of

other media.

Disadvantage of telemarketing

• Outbound has to carried out with care and aforethought. Beware of intrusion.

• Proper training and monitoring of personnel is vital because when used incorrectly it is all too easy for telemarketing to annoy and it cost to maintain a well-trained workforce.

• The initial part of script must be geared to checking that the person is happy to talk at that moment or not.

• A blatant sales pitch should never be the first call that consumer gets from a company.

• Telemarketing is quite costly and it provides little in the way of economic of scale.

CALL CENTER MANAGEMENTCustomer Relations

Why do you need to have Call Center

• You need to serve customer more

• You need to increasing sale

• Your product have re-purchase model

• Company create a life-time value of customer

• You need to provide more information to target

• You need to know first hand information.

All you need to answer is do you have time ?

CALL CENTER• Is the one of marketing tool to manage and serve

maximum requirement of your customer either B2B or B2C.

• It is the two way communication between you andyour customer in the purpose of creating the longterm relation and/or loyalty customer.

• Call Center equipped with appropriate software, training skill, company policy will result as CRMwhich is leading the way to strong brand equity.

• Most people think it is cost center. You need to turn them to be profit center.

Types of Call Center

• Telesale

– Proactive/Outbound

– Reactive/Inbound

• Customer Service

• Customer Relationship

• Contact Center

• Help Desk

5 Ps of Creating Loyal Profitable Customers

• Progress-Change before you need to change

• Passion-Create a passion worth pursuing

• Product-Determine what business you are really in

• Process-Create a service selling system with personality

• Positioning-Create a unique point of difference that sets you apart

Equipment

• PABX• Phone Line : Land Line or Lease Line• Telephone• Head-Set• Partition• Desk• Chair without arm• Computer• Software• Approximately Set up is 50,000 baht per agent

Sales Agent

• Telesale Basis– Fix Salary

– Daily Wages

– Commission• Fixed

• Progressive Rate

• Customer Service/Relationship– Fix Salary

– Company Benefit

If you can not, just let other people do:Outsourcing

• Reduce and control operating costs• Improve company focus• Gain access to world class capabilities• Free internal resource for other purposes• Provide resource that are not available internally.• Accelerate re-engineering benefit.• Improve a function that is difficult to manage/out

of control• Make capital funds available• Share Risks• Provide cash infusion

Things to remember

• Call Center is not hard, but it depend on howyour company care about your customer.

• Always get the support from your managementand the whole company

• Do not invest too much it you cannot makeprofit.

2. DM MEDIA…

• Unaddressable Media (Reactive)

– Direct Response Television Advertising

– Direct Response Press Advertising

– Direct Response Radio Advertising

– Door-To-Door

– Mail Drop

DIRECT RESPONSE TELEVISIONDETV

The Strengths of DRTV

• An Efficient Channel of Distribution

• Great Flexibility

• Measurable Media

• The Ultimate Mass Communication Tool

Ways to use DRTV

• Direct Selling

• Support

• Lead Generation

• Integrated Marketing

• Sequential Marketing

• Infomercial

• Test General Image Selling Strategies

Your Offer Structure

• One Step Offer : Discount/Premium• Two Step Offer : Lead Generation• Sequential Marketing : Reader Digest• Subscription : Not just Magazine, repurchase

model such as coffee• Catalog : So many SKU• Club Member : Credit Card/Car World Club• Continuity Program : Financial Installation

DRTV

How to get Free TV Advertising if your products are suitable via DRTV

Important FactorsMass Market Appeal

Television is the least-expensive medium if your product has the potential to sell to a great number of people. If your product appeals to people who owns cars, or who are concerned about their weight, TV is ideal. But if your product is for dentists older than 50, or business who has 10 million baht in their bank account. Stick to direct mail or credit card syndication, where you can more economically target your relatively small audience.

Importance Factors

Easy to Explain and Demonstrate

You don’t have much time to tell your story on TV. And after your ad finished, there’s no going back to amplify or clarify. What your product is, what it does, and why that is relevant to the viewer must be crystal clear.

Does your product lead itself to a demonstration? Can you show it getting rid of wrinkles, shinning a table, or growing a plant ? From the earliest day of TV, the “DEMO” has been one of the most effective way to sell. It is not essential to success but it is plus.

Important Factors

Not Available in Stores

Your product should be different than, or better than, anything available in stores. Otherwise, your viewer may already own it. Or your advertising will just convince them to buy it at a store. also, to qualify for DRTV rates, your product should not be available in stores.

Important Factors

Not Already Available on TelevisionDoes the world need another kitchen gadget or weight loss program ? Apparently so, because new ones are constantly sold on DRTV. If you are in a category with heady TV exposure, make sure you do not have a “Me-too” product. Your product must be positioned as something different and better than the competition. And you must keep in mind that your potential customers may already own one or more of the products in the category. Finally, how easy would it be for someone to market an inexpensive knockoff of your product.

Important Factors

Short Term vs. Long Term

Consider your product’s inherent life cycle. A magazine may theoretically exit forever, while the “hula hoop” was a fad. There’s nothing wrong with selling a short-term product, or even a fad, if your media planner is nimble. You’ll want to heavy up spending as long as the product is doing well and quickly pull the plug when it fatigues. This may be the end, or you may be able to revive it after “resting” if for a season.

Important Factors

Additional SalesIf your product lends itself to repeat sales, your DRTV effort may be just the first step (and the most expensive) in a long-term relationship. Going back to the example of a magazine, after a viewer subscribes, he or she may never allow the subscription to lapse, and economical direct mail package may be all that is required for reinstatement. When you sell a subscription, the lifetime value of customer can be huge.

You should think about selling additional products to your database of satisfied customers. Nevertheless, you shouldn’t count on additional sales to justify a marginal product. Your initial DR effort should be profitable.

Important factors

New vs. Established

If your product is new, and if the consumer perceives it as unique, you’ll have traveled a long way toward success. If your product is established, your must be selling it in another medium, such as direct mail. It may seen that it should do equally well on TV, but that isn’t necessarily the case. Some products do better on TV some do worse. You won’t really know until you try it

Important Factors

Manufacturing/Shipping CommitmentThere are 2 nightmares for commitment1. Your product did not sell2. You can’t fulfill the incredible order volume

Some products are inherently good at keeping your commitment to a minimum. For instance, after the original video is produced, VCD can duplicated very quickly in relatively small quantities. But some don’t. So some direct marketers resort to what is call a dry-test.

Important Factors

Determining Sufficient Margins

To the cost of your goods, you must add the following : telemarketing, fulfillment, credit card expense, bad debt, and media. The total is your break even point. Can you mark your cost up enough to make a fair profit without overpricing it for TV ?

A rule of thumb is that for a product to be commercially viable, your should be able to mark it up from 300 to 500 percent (not counting media) when you sell it on the air.

Retailing Cost Calculation Model

Selling Price for your product 100.00

Trade Discount (30.00)

Promotion Expense (5.00)

Rebate Fee (5.00)

Net Income Price 60.00

General Expense (15.00)

Operating Expense (10.00)

Net Price before Cost 35.00

Profit for your Company (10.00)

Cost Price of your Product 25.00

HOME SHOPPING FORMAT

• Reasonable Production Budget

• Well know TV Host or Celebrities

• A King of Breakfast Show

• Not much persuasive but details of product

• 24 Hours Operations (a lot of time slot to air)

• Require audiences more than 2 million head toget the result of DRTV

INFOMERCIAL

• 30 minutes TV programmed with the high value of entertaining production, 24 minute plus 3 spots x 2 minutes each.

• Infomercial + Commercial = Infomercial

• Exciting and persuasive presentation

• Demonstration and Story Teller.

• Require audience at least 200,000 heads to get the same response of 2 million at home shopping format

2 MIN SPOT (SHORT FORM)

• 15 or 30 seconds is not enough to persuade audience to purchase something. It is suitable for promoting product or brand awareness.

• 60-120 seconds is quite adequate to give more information before audience make decision to buy.

• Full equipped with DRTV technique

• Pre-emptable concepts.

BRANDMERCIAL (BRTV)

• Branding Response Television advertising, using increasingly by fast moving consumer goods manufactures

• It is the reposition the half hour commercial andtalk about the new breed of long form advertising

• The evolutionary venue, DRTV mechanics arecombined with high-creative and productionimagery to create sales along with a powerfulbrand position Designed for lead generation andretial-drive

BRTV

• It is combines the creative brand-building properties of traditional television advertising with the measurability of response.

• Brandmercial will tell you the story of multi-sensory details.

• BRTV aims to reach the largest audience possible because BRTV utilizes peak viewing times.

What we sell

• Feature

• Function

• Benefit

Who we sell

• In 68 millions Thai people, we do have ourtarget customer for only 13.6 million people.

• Variety in Education, taste and class.• High Purchasing Power of 2,500 baht per time.• Life Style Shopping for new media potential.• 65% Bangkok and 35% Upcountry.• 3,000 million all over 80 countries

DRTV Hypothesis

TEST

TEST

TEST

International Marketer in DRTV

Apple Computer, Microsoft NissanLexus Volkswagen Volvo PPlay Boy Toy-R-Us RevlonBill Clinton NGO VisaStandard Charter Time Music MGMCentury 21 Sony AvonAmerican Harvest Pepsi Coca-ColaAmerican Airline Mcdonald PanasonicPhillips Wal-Mart FordProctor&Gamble Paramount Sega

DIRECT RESPONSE PRESS ADVERTISING

DRPA

DR Press Advertising

• DR ad in newspapers and magazines present the DMer with a cost effective means of generating response from relatively large viewer.

• Normally, this media provide substantial amounts of information.

• Most important is receptivity of the magazine’s readership to such DR advertising.

Criterions of DR Magazine

• Economics.

– Low cost per contact associated with magazine

– Large number of prospects.

• Credibility

– Gain benefit from Halo Effect from such magazine

– In other words, the creditability of the magazine may rub off on any advertisement placed in it.

• Lack of satisfactory list

– We can generate its own list as a result of the response generated by this large number of prospects.

Criterions of DR Newspaper

• Frequency– Daily basis vs. short shelf life

• Immediacy – allow DMer to avail of up-to-the-minute information

• Reach– Reach a high proportion of households.

• Local Shopping Reference– Local newspaper, Local shopping opportunities

• Fast Response– Frequency offer excellent opportunities for close monitoring

and testing of their activities.

DIRECT RESPONSE RADIO

DR Radio

Radiomercial

• The unrating media, you need to read the research before you purchase

• It is completely soft sale, cannot be hard sale.

• Consider Frequency rather than Coverage

• Available even Global Campaign by World Space Station. It is a digital radio.

• Easy for audience’s access.

Radiomercial in DM point of view

• It is ubiquitous : available around the clock

• It is selective : reach relatively homogenous of highly defined target audiences

• It is economical : Radio provides DM with cost effective reach

• It offers rapid access : Production time for radio are relatively short.

Key Element of Direct Response Radio

• Talk Back/Phone In Concept

• Information Providing

• Leading sale, not closing sale

• Strong DJ or Celebrities

• Simple Offer

Cooking Up SuccessSpice up sale operations

make sure that your call center have enoughinformation

Mix in creative offer developmentradio is more of a soft media : don’t mention price

Spread evenly using a media planradio is more format driven, find out the right spot

Add a Pinch of Frequencyfrequency is cope out for bad creative

Serve along or with TVRadio work very well to support TV

Key Success

• Everyone love another’s STORY TELLING

(RADIO SCRIPT)

• Don’t use the free gift

• Using Talk Back not just loose spot

• Radio is generate calls and Call Center is one

who sell, not Radio itself so make sure that

you have a strong TELEMARKETING SCRIPT

DOOR-TO-DOOR

Direct to home

Door-To-Door

• Proponents of D2D Direct marketing claim that its cost effectiveness and new found target ability bring it out of the basement of DM Media to take its rightful place alongside the likes of Direct Mails.

• The response levels it generates may not be as high as direct mail but cost effectiveness.

• D2D encompasses a number of options including leaflets, samples and coupons.

Sampling

• Sampling allows the consumer to try the product for free, something that consumers are always going to like and it takes the risk out of trying new products.

• Uniquely among marketing methods, sampling breaks down the adversarial psychological barrier between buyer and seller.

• 95 % of samples are tried by consumers and thus go some way toward influencing subsequent purchase

• Works best with TV campaign

Sampling

• The sample induces trial and the coupon encourages the consumer to buy the product for themselves if they like it.

• Data collection can be accomplished through the inclusion of data capture vehicles in prize draws, etc.

• New tech, hand-held computers, allows door-to-door marketers to collect detailed information as they works

3. DM MEDIA…

• New Media

– The internet, E-Commerce

– Kiosks

– Mobile Marketing, M-Commerce

– Interactive TV, T-Commerce

Evolution of Telecommunication• 1840 Telegraph• 1864 Telephone• 1939 Fax• 1940 Television• 1950 Mobile Phone• 1969 Cell Phone• 1965 Satellite Ttechnology• 1980s Commercial Cell Phone• 1984 Internet• 1990 SMS• 1996 Interactive TV-Set Top Box• 2001 MMS

THE INTERNET

Social media

The Internet

• Internet is more about people than technology. Any direct marketer needs to be clear about this.

• The internet is a relationship medium uniquely suited to providing low-cost, near instant dialogue…

• Simply transposing traditional advertising and selling message onto this new medium will not work. It is not the place for broadcasting image-building messages or sending out prospecting mail in the hunt of new business leads. But the medium is uniquely suited to developing higher levels of relationships.

• To establishing dynamic customer communities and allowing satisfied customers to become your champions.

The Internet• Internet is an organic and democratic entity, owned

and operated by no single authority and not covered on the whole by conventional legislation.

• The rule of function or ‘Netiquette’ are unwritten or preserved only in a type of verbal precedence.

• This is highly democratic. Internet consumers can and do exercise more power than in any other marketing situation.

• They have ways of showing their disapproval of organization who cross the boundaries of netiquette.

• These range from aggressive posting to blacklisting organization who have defrauded customers.

The Internet Power

• This power has major repercussion for DMerswho can no longer use shotgun mailings.

• The privacy law will comply.

• The internet does have advantages over other direct marketing media. It allows all but the smallest organization to complete on what is more or less playing, as start-up costs are relatively low.

• DMer have to handle this media with care

Email Marketing• The hottest issue for high-tech advertising agency• Very Proactive media• Measurable• Beware! Spam coming• Oh! It has a privacy law.• How many customers that you send to and how

many staff to reply.• For business, E-Collaboration is necessary but just

noted that digital nervous system will fail if the data is too much. It is overwhelming.

KIOSKS

Product Presence

Interactive information kiosks

• Are one of the most recent introductions to the marketers armory. Using touch screen technology, kiosk allow consumers to search for and retrieve the information that they want, rather than having it forced upon them by overeager sale assistants.

Kiosks’ Ability• Extending brand presence beyond existing retail sits• Creating an unintimidating environment in which customers

can make purchasing decisions.• Freeing up staff from answering basic enquiries.• Taking pressure off staff to make complex and under-informed

recommendations• Providing a greater range of information than a human being

can offer• Allowing customers to work within a budget and compare

prices easily.• Increasing awareness of complementary products and average

customer spend.

Kiosks’ Ability

• Interactive Kiosk can reduce queues at checkouts as customers can find out in advance whether the product they wish to buy is in stock.

• The understanding that kiosks need to provide added value to existing retail operation.

• In the future, interactive kiosk is already providing direct marketers with yet another means of communicating personalized marketing message.

MOBILE COMMERCE

Mobile Phone

First Mobile Phone

• In 1950 the first model of mobile phone using in the car by Ericcsionhas been invented.

Development of Cell Phone in this world

Dr. Martin Cooper,

Motorola was

calling his

competitor in Bell

labs to confirm that

he succeeded to

invent the first cell

phone

Mobile Marketing

• It is closer than you think

• The application usage

• Software Download like Music, Game and etc

• Wireless Payment Club by WRC

• Refill Mobile Airtime by TOP-UP SMS technology

• Mobile Catalog by Shinee.com

• E-COUPON by Starbuck, BMW and so on

• SMS-MMS-VOICE CLIPPING

DIALOUGE MARKETING

Messages

• Mobile Marketing It is not a future anymore. Itis here,today

• Cost Effectively

• Immediately response

• Measurement

• Consider Pros and Cons carefully.

• Be careful all Junk Message from mobile phonecompany

DIALOUGE MKTG/SMS

Information a role in accelerated living

Out of control

• Complexity, Confusion

• Too much choice

• Time pressure

• Less Predictable live

• Off Balance

In control

• Clarity

• Personality

• Convenience

• Manageability

Two Consequences

Viral

• Reflect the vital dynamic ofgroup in regarding toinformation repertories

Permission Marketing

• Reflect the active role inconsumer as gatekeepernew advertising social rule

Mobile Marketing must be Easy

• Easy to get in (opt-in) and easy to get out (opt-out)

• Easy confirmation button such as “Hi”, “S” andetc

• Golden Rule of long term mobile marketing isPermission must be granted, it cannotpresume.

• Once receipt of grant, take care it well

WIRELESS PAYMENT MODE

Payment Gateway

MOBILE CATALOG

Shopping via mobile

ITV : INTERACTIVE TV

The T-Commerce

Interactive TV

• “Interactive television is merely one element of the convergence of media into the digital domain. From living room sofas, consumers will engage in E-mail, chat, gaming and internet surfing using the same devices on which they store digital music, movie and photo files and record their favorite television programs.”

Interactive TV

• Leading to Digital TV

• The power of set top box

• Cable TV/Pay TV/Subscription

• Transmission mode : – Satellite

– Fiber Optic

• One media cover the world

• A major impact to US/UK advertising market. Due to the a fantastic feature and event marketing.

DIGITAL TVNew Interactive TV

FULFILLMENTOrder Procession/Logistic/Packaging

Fulfillment

• Order fulfillment is one of those unglamorous areas of marketing that seem so easy to take care of that many people are inclined to ignore it or give it short shrift.

• From lead generation to back-end selling and follow-up, selecting a professional fulfillment house can be one of the most important investment your make in your entire program

• It is the last contact to success.

Components of Fulfillment

1. Warehousing

2. Packaging

3. Shipping

4. Order Processing

5. Credit Card Authorizations

6. Customer Service and Reports

7. Returns Management8. Extras

Warehousing

• No small facilities are these fulfillment houses. They must be adequate warehousing area to store large quantities of products so they can be shipped as soon as the orders roll in. The facilities must have controlled temperatures to accommodate such popular infomercial products as cosmetics, skin care and audio/video tapes.

• Inventory control and reporting must also be well in hand. The program log each product as it comes in, record its location, track each shipment’s progress to the consumer and returns when necessary.

Packaging

• The experience of fulfillment house with postal regulations and shipping will save a lot of money and maintain an attractive package design.

• Assembly the product kit and provide automated wrapping and sealing service

• Many fulfillment house have their own packaging design with cost-effective one

Shipping

• Select the mode of delivery at cost-effective

• Time Management

• Manage Customer’s choice of time

• The standard– BKK within 4 days, otherwise customer will cancel

– UPC within 10 days, otherwise customer will cancel

Order Processing

• Handling order processing to different degrees. Some will simply ship the products after the credit cards have been processed.

• Inventory Management

• The difficult one is the non-credit order either COD or Money Transfer, Money Order

COMMERCIALPRODUCTION TECHNIQUE

Media Production

Table Top

• As the name implies, this refers to shooting that can be one on top of the a table. There are no actors on screen, only the product and/or props. Even if you are shooting a different type of commercial, the product will most likely be shot on a tabletop. Composition, lighting , camera angle, and movement can be carefully controlled. The product beauty shot will be edited into the body of the commercial.

Talking Head

• This is a one step up in degree of difficulty. Here you have an actor, or a celebrity, who talks to the audience about the product. Also, most commercials where the client is on camera are talking heads. A talking head ca be leaden if the speaker is insipid and has nothing interesting to say. But a talking head can also be intimate and personal, a powerful one-on-one that touches the viewer. When our Prime Minister reveals that he is balding and says “I’m also a customer”, he hits a responsive chord.

Slice of life

• This is the most popular technique in general image commercials, because it’s so effective. A typical slice has two people, let’s call them George and Sara, in a real-life setting, such as a kitchen. George is the “doubter” and Sara is the “convincer”. George has a problem. His girlfriend hates his hair. Sara say that her brand of shampoo will solve the problem. But George doesn’t sure. At this point, there’s usually a product demonstration to convince him-and the viewers-that the product really is the best. The final scene is George’s girlfriend say how great his hair is.

Hidden camera

• An adaptation of the old “Candid Camera” TV show, this technique features someone who doesn’t know he or she is being filmed and who says positive things about the product. A hidden camera commercial can be very effective. People who don’t know they’re on camera are extremely believable and say things no copywriter would think of in a million years. But the logistics are trickily. Where will the camera be hidden? How will the people be found? Also, it takes a lot of shooting to get a few good people. A hidden camera commercial can take a long time and be very expensive.

Testimonial

• When a real person endorses a product, it’s a testimonial. That allows you to superimpose on the screen the person’s name, occupation, and the city where he or she lives. If you use a professional actor to simulate a testimonial, you can’t super any of these things.

• Testimonial are as effective as the person giving them. If you use real people in your advertising, no matter how much you pay them, you must have them sign a release.

Celebrity Presenter

• More and more celebrities are selling more and more products. However, before, during and after you throw your lot in with a celebrity, many things should be considered. This is particularly true in DR.

• Celebrity is the well-know person who we pay for he or she to endorse our product and normally, celebrity is also the product lover.

Continuing Center Character

• A celebrity spokesperson who appears in a number of commercial can be thought of as a continuing center character (CCC). However, the CCC is usually considered to be a non-celebrity. It can be an actor playing a character, such as Ronald McDonald. It can be an animal, such as Morris the cat, Dreyfus lion and etc. Or it can be imaginary, such as Tony the tiger

Demonstration• The demo makes the maximum use of the power

of TV. It is as close as you can get to a live salesperson who proves how your product works or, in a side-by-side demo, how it is better than the competition, The best demos are clear, interesting and irrefutable.

• Sometimes demos must be symbolic, but these, too, can be effective.

• The demo you should avoid is one that doesn’t really prove anything or proves a minor product point. If your product doesn’t lend itself to a compelling demo, perhaps you should seek a different way to promote it.

Problem-Solution

• With this technique, a problem is shown as dramatically as possibly. Then the product solves the problem. The problem should be one with which the audience and identify, and the product should be the best way to solve it, It can be argued that many other commercial techniques may use a problem-solution structure.

Comedy

• Can Comedy work in DR ? Yes, but just as in general image advertising, it’s extremely difficult to do. Not everyone can write comedy, and the worst thing in the worked is a joke that doesn’t work. Even if your commercial is funny, make sure you’re not falling into any traps.

• Why take a change with comedy ? Because if it works, it can cut through commercial clutter with less airings than a bland slice of life or demo.

Vignettes

• Vignettes are very short, usually humorous, anecdotes. They’re often used to illustrate, in a lighthearted way, what can happen when people don’t use the product or service in question.

• The pacing of a vignette commercial should be deft. Typically, a 30-sec and general image sot will have two vignettes, a product demo or usage shot, and a final vignette “capper”. A 2 minute DR might open with three vignettes, include one or two interspersed in the middle of the commercial, and end with a vignette “button.”

Music

• Can music work in DR? Time magazine sold a lot of magazines for many years with its evocative “Time Files” jingle. Music can reach your pocketbook by touching your heart. Even if they don’t use music to sell, 2-minute commercial can seem verrry long unless they have a musical “rug”, But music can be expensive.

Animation

• Animation is very effective if you’re selling to children. It also is expensive. If you’re combining live action with animation it’s even more expensive. Before you get into the expense of animation, make sure your idea warrants it. This goes for computer animation as well. And particularly in computer animation, don’t let technology become a substitute for a strong idea.

Stop Motion

• With this technique, an inanimate object can seem to move on its own. It works like this : A frame or two are shot of an inanimate object, say a chair. Then The chair is moved slightly. Another few frames are shot. The chair is moved again. Another few frames are shot. And so on. The result is film that shows the chair seeming to move on its own.

• A “jump cut” is considered a mistake in normal shooting, but in stop motion, it may be done by design to create a desired effect.

Claymation

• In this type of stop motion, flexible clay puppets are moved slightly after the camera shoots a frame or two. When the film is run, the puppets appear to be moving by themselves. Pillsbury’s “Popping Fresh” and the California Raisins are examples of claymation. This is also expensive to do. So make sure you have a big idea built around it.

Morphing

• This commercial technique digitally transforms one object into another. Morphing was introduced to the public in the movie Terminator 2. It has been used in rock video and a number of commercials. The effect can be quite dramatic; however, it is expensive

Shooting Formats

• 35mm Film-Best Quality, most expensive• 16mm-The “look” of film at a reduced cost• 8mm-Amateur format, only used for “home movie”• Digital Video-Best Quality video, replacing 1-inch• 1-inch Video-Long time broadcast and studio stand• Beta SP-Very popular format, inexpensive, acceptable

quality• Hi-8- Amateur format, marginally acceptable for

commercial• S-VHS-Amateur format, marginally acceptable for

commercials• VHS-Amateur format, not acceptable for commercials

Editing Formats

1. Digital

2. BetaSP

3. Other Video Formats

4. Three-Quarter-Inch Videotape

5. Nonlinear, Random Access

CONCLUSION

Trends & Events

What are the Significant Factors for Future Trend?

• How are the technology changes ?

• How are the medias develop ?

• How are the emerging of Technology and Media

• How are the consumer react to such changes ?

• How are the business react to such changes ?

• How are the changes effect the society ?

• How are the society’s changes effect the daily life ?

• How small our world we are in today?

Changes

• Consumer change+Technology change+Socialchange = New Innovation Marketing Platform

• Database has it own sense of belonging which are your comparative advantage

• Life time value of customer and Repurchase

• Who own the channel of distribution, will rule the world. So, at least, create one to balance yourself.

• Looking interactive media carefully.

The next generation of DM

• Technology changes the consumer behavior. When the consumer change, the business model have to be reconsideration. That’s the starting point of Electronic Retailing occurred rather than just Direct Marketing

• Today, we always hear the new word all the time such as – SCM-Supply Chain Management, – ECR-Efficient Consumer Response, – Direct Marketing and On Line Sale Model– CRM-Customer Relationship Management – ER-Electronic Retailing Business– MT-Commerce

Before using DM : Where is the Money ?

• Why you need a communication ?

• What is your purpose to make relationship ?

• Then you can ask this simple question but the most difficult to answer. Where is the Money ?

• To make a communication is something a bit long term, so you cannot let your project being a cost center. Otherwise, it won’t be long.

• For Example, K-Bank with IBM Contact Center

Human vs Technology• One mode of media is not enough to

communicate. The more technology development, the more convergence will encourage to change the consumer behavior.

• The is no more Personal or Mass Selection• Rectify your Degree of commitment to your

customer• Remember Technology equal Changes so invest

immediate when you see where is the money.• DM is the art of using humanism and technology.

It has to be two, no more no less

CLM

• Many times that we really don’t actually know how can the new media can be responsive. But at the end of day, somebody need to decide whether we will go or not go. There are lots of theory can help you to make your decision but many times that your CLM can help and even better than any other management or marketing tools.

• CLM cannot realistic if you did not update yourself, read some more book, discuss and exchange others people’s idea.

• Because is Candle Light Management.

Thank you

11.01.2015