Transcript catalogues

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
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LOGO
Prepared by:
王冬梅
陈珊婷
Chapter 9
Creating and marketing
catalogues
Learning Objectives
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This chapter gives an overview of the
main issues involved in the
preparation and use of catalogues by
direct marketers.
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They won’t buy if
they don’t read it
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Space allocation
Catalogues design
Introduction
Summary
Why customers
want catalogues
Catalogues objectives
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Introduction
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 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.
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http://www.m18.com/Catalog/091105_f90711/flash.html
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Why customers want catalogues
Customers buy from catalogues for a variety of reasons including:
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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
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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
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Image building
Establishment of expertise
Serve as a long term first reference for customers and
staff on a particular topic---like a university handbook.
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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.
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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.
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Catalogue design
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 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.
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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
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1.
2.
3.
4.
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Catalogue design
Some advantages and disadvantages of print-based catalogues
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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
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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
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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.
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some different ways to organize a catalogue
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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.
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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
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1.Grade of paper
Visual presentation
0rder form
2.Typeface
3.Pictures
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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.
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 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
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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
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Grade of paper
 Heavier coated paper
- allows much finer detail and colour in the printing process and can
help project an upmarket image.
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 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.
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Size of paper stock
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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
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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
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Serif typeface
-like those used in most newspaper, with their little fillips and tails,
are easier to read than plain
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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
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30 point Times New Roman
Serif front
30 point Arial
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Pictures
 It is possible to put together a catalogue using vendor
supplied material that can be pasted right into the desktop
publishing document.
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 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.
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Spread design
 It is worthwhile designing the whole spread of two facing
pages rather than single pages
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 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.
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Spread design (Con’t)
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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.
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Space allocation
1
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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.
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Space allocation
Often this can be approximated from:
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Its sales
history
Price
levels and
margin as
compared
to other
items in
the
catalogue
Suppliers’
experience
Comparison
with
competitors’
catalogues
and
advertiseme
nt.
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Space allocation
Figure 9.4 Relationship between space and sales follows a response function
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Space allocation
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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.
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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.
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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
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Consistent /
accurate
Believable
Boilerplate copy
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(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
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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
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Enough space to write on the form
Business reply envelope
Phone, fax, email and website information
Easy to send for more information
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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.
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- Why they should buy from you instead of someone else.
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They won’t buy if they don’t read it
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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.
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Summary
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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.
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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
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This chapter gives an overview of how
businesses use direct marketing strategies and
what benefits are obtained from business to
business direct marketing transactions.
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What is B2B marketing?
 Definition
 Business to Business marketing is ‘Business that sells products
or provides services to other businesses’.
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 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.
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Compare with B2C
Base on basic elements
B2B
=
B2C
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Base on actual implementation
B2B
≠
B2C
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Standards of choosing individuals
 Users of the product
 Influencers who set the product specifications
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 Deciders who make the actual purchase decision
 Gatekeepers who control the flow of purchasing
information
 Buyers who process the purchase orders
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Definition of users
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Segmentation Division of potential customers
into market segments according to how and for
what purpose they use a product.
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Definition of influencers
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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
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Definition of deciders
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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.
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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.
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Definition of buyers
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Professional purchaser specializing in a
specific group of materials, goods, or
services, and experienced in market
analysis, purchase negotiations, bulk buying,
and delivery coordination.
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Weakness of B2B
 There are many opportunities for business lists
to become out of date.
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 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.
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Don’t be afraid …
TO KEEP IN MIND:
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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.
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Activities of B2B direct marketers
 Four main activities
 Acquiring new business leads
 Lead qualification programs
 Outsourcing lead generation
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 Lead tracking and management
 Leads for in-house use
 Leads for reseller agent’s use
 Planning and managing lead generation programs
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Four main activities of B2B direct marketers
 Lead generation
 Lead qualification
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 Making the sale
 Maintaining customer relationships
BACK
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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.
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Why acquiring new business leads?
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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.
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How to acquire new business leads?
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 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
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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.
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 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.
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How to seek out a qualified lead?
 Profiled the sorts of businesses you
wish to target
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 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.)
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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
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



and so on …
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Why we need qualifying prospects/leads?
 Help to contact the prospects via mail
or another medium
 For example, advertising, email or internet
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 Help to exhibit in trade fairs relative
to your business and industry.
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To remember …
 You have found or qualified a lead, it must
be followed up immediately.
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 To create an impression of professionalism
and reliability early in the development of a
relationship with a new customer.
BACK
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Outsourcing lead generation
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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
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Lead tracking and management
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 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.
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Lead tracking and management
 HOW
 It must be recognized that an organization has
invested time and money into securing each
qualified lead.
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 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
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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.
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 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
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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.
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 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.
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How to reform weakness?
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 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
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Planning and managing lead generation programs
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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.
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Planning and managing lead generation programs
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 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
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Definition of Databases
 serve as a memory bank of everything that happens
between a business and any other business.
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 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.
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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.
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 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.
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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
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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.
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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.
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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.
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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.
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 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.
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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
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Buying-Decision Process
 need recognition: determine what needs are
most important to the buyer
 identify alternatives for buying the product
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 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
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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
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Phase 6:Analyse proposals and select supplier Y
Phase 7:Select order routine
Y
Phase 8: Evaluate product and supplier performance Y
Y
Y
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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.
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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.
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Telephone
May be used for both inbound and
outbound communication.
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The development of relationships
with existing customers and leads.
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Electronic media
 Become a popular means of direct
communications in business to business.
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 It includes email, the internet and faxes.
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Catalogues
Catalogues could be classified as a
version of direct mail.
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They deserve a special mention as a
medium of business to business
direct marketing
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Trade shows
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They are particularly good at generating
and qualifying leads as well as making
direct sales from the floor of the trade
fair.
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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
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