Transcript Direct Mail

4MD3 Business to Business
Marketing
Steve Howse, C. Dir
March 2, 2009
Date: Thursday March 16, 2008
2:30 to 5:20
In preparation of the exam next week - here are a few tips:
• focus on the text, the lectures reinforce the readings
the cases done in class are not on the exam
the format is a mix of T/F, Multiple Choice, Short Answer
and a Short Case
it is a closed book exam, no material can be brought in
except your ID, pencils/pens/ erasers and a McMaster
approved calculator
• A few tips
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TIGHT AND LOOSE
SALES LEADS
• meaning?
• tightness is created during lead generation
• how create tight leads?
o ask the prospect to accept an obligation
o or to do some work
•
how create loose leads?
o use an incentive
• a mix of tight and loose leads is needed
3
PREVIEW OF PERSONAL SELLING
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intro to PS
BM/CM differences - PS
PS as an “interface function”
the PS process
more PS concepts
tight and loose sales leads
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DIRECT MARKETING
• database-centred “marcom”
• requires a response that is…
o measurable
o direct to the manufacturer (DIRECT RESPONSE MARKETING)
• direct marketing media…
o
o
o
o
direct mail
e-mail
telemarketing
the Web
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DIRECT MAIL
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the near-perfect promotional medium
mailings are typically “tiered”
synergy with personal selling
response rates
direct mail costs
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THE FOUR PARTS OF A DIRECT
MAILING
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envelope
letter
enclosure
customer-reply device
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E-MAIL
• avoid outbound "spam"
• e-mail has its uses
• integrate with other media
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TELEMARKETING
• systematized selling by phone
o “inbound telemarketing ”
o “outbound telemarketing” AKA “inside selling” is good
for….
• generating qualified sales leads
• selling to high-access-cost customers
• even selling to all customers (low cost products)
• cost per outbound contact ($15 to $20)
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MORE ON TELEMARKETING
• how to make it effective
• pros to doing "in-house"?
• pros to "contracting out"?
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LISTS
• needed for the foregoing forms of DM
• you can create your own “house list”
• or rent or purchase a list (trade publications etc)
• compiled lists (scrubbed)
• response lists (bought from mail before)
• list brokers
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THE WEB
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not strictly direct marketing
B2B dominates total sales on Web (10:1)
why less popular with consumers?
marketer sites have varied purposes
o
o
o
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online information
database publishing
customer self-service
transactions
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ADVANTAGES
TO MARKETERS OF THE WWW
o marketer extends its geographic reach
o a small marketer looks larger
o customer exposure is verifiable
o marketer communicates info fast and 24/7
o some two-way communication possible
o low-cost alternative channel
o customer outsourcing should increase
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KEY DISADVANTAGES TO
MARKETERS OF THE WWW
o can undercut the basic goal of marketing
• Don’t compete on price
o and hurt the relationship
o and lower the unit price paid - reverse auctions
o swings power balance to buyer
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OTHER DISADVANTAGES TO
MARKETERS OF THE WWW
o
o
o
o
o
o
a large marketer looks smaller
suited to “cataloguable” products only
not for high-risk products
customers must actively search
marketer must promote the site
site can create channel conflict
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ANOTHER KIND OF MARKETER SITE
- ONLINE BRAND COMMUNITY
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BLOGS
Chat rooms
Website still initiated by the marketer
but customers provide the content
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THE “BUY-SIDE”
OF THE WEB
• online buying reduces purchasing costs
• usage level varies by buyer’s industry
• two types of purchasing site…
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CUSTOMER-ESTABLISHED
PURCHASING SITES
• a direct link to suppliers
• reverse auction
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MIDDLEMAN-ESTABLISHED
PURCHASING SITES
o sites established by“market-makers”
o catalog hubs
o vertical market sites
o reverse auctions – again!
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Have A Goal List
• Two columns (want to do & BTDTGTTS)
• These are personal goals
o Run a marathon or See the great wall of China
o Concerts to see or vacations to go on
• Some are time sensitive
o Skydiving
o Bike trip through Italy
• Keep the list throughout your life
o Add to it, remove items, enjoy what you have accomplished
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