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SU3- Direct Response - Coggle Diagram

- - - - Targetted- personalise address, product info, offer (variable data campaign)
      - Creates
        
        Product demand- reassures cust, reduces perceived risk
        
        Sale- explain how to buy
      - Incentive- for fast response
      - Response rate- 2-3%
    - - Buy/rent from list brokers
      - Segmented by
        
        Demographics
        
        Psychographics
        
        Geographics
        
        Characteristics e.g. hobbies
      - Types
        
        House- marketer's own cust
        
        Response- ppl who have prior response to some type of DR offer
        
        Compiled- of specific category e.g. sports car owners
  - - - Radio- info for cust to request info/purchase
      - (Cable) TV- infomercials esp, for product demonstration
  - - - FTC regulation- telemarketing firms to identify self on caller ID
      - "Do-not-call" list- restricted from dialing
    - - Returns- higher than mass ad
        
        Persuasive- respond to cust's objections
        
        Telemarketing company- makes calls following prepared script
        
        From database
        
        Cold-calling- dialing random numbers
        
        Intrusive, personal, interactive
      - Inbound- cust-initiated call e.g. responding to ads
      - Outbound- firm-initiated call; more resistance (uninvited, intrusive, unexpected)
- - - - Response (to source) e.g. sales, sign-up, info request
      - Communication package
        
        Strong words, graphics- attention grabbing, relevant
        
        Test (pre and post) for effectiveness
      - Offer/msg
        
        Targetted- guided by market research, cust database
        
        Proposition description- sales, delivery, warranty, cost
        
        Incentive- to respond quickly
        
        Response variation- online, mail, phone, etc.
    - - Response followup
      - Fulfilment- backend transaction processing
- - - - Consumer behaviour- more educated, selective; less loyal
      - Pricing- expect temp. discounts
      - Market share (rather than product growth) focused- facilitated by promotions
      - Parity (undifferentiated) products- promotion = tiebreaker
      - Retailer power- dominant retailers (e.g. NTUC) demand incentives for carrying products
  - - - Brand awareness
      - Trial
      - Traffic
      - Brand involvement. resonance- experience
  - - - Tools
        
        Price deals- temp. price cut, freebie
        
        Cents-off deal- reduction in normal price
        
        Prize-pack deal- something extra in package e.g. toys in cereal box
        
        Bonus packs- additional amts of product FOC
        
        Banded/bundled packs- more product units at lower price .e.g 6 pack milo
        
        Refunds, rebates- encourage repeat purchase
        
        Sampling- thru store, newspaper, ads; strongest promotion influence
        
        Premiums (incentives)- tangible reward for a particular act (e.g. purchase, visiting point-of-purchase)
        
        E.g. free toothpaste when buy toothbrush
        
        Types
        
        Direct- awarded upon time of purchase
        
        Store- given at retail site
        
        In-pack- inserted into package
        
        On-pack- placed outside of package
        
        Container = premium
        
        Mail- to perform some action before getting premium
        
        Self-liquidator- to mail payment + proof of purchase
        
        Coupons- collect and redeem for merchandise
        
        Coupons- price discount
        
        Retailer-sponsored- only at specific outlets
        
        Manufacturer-sponsored- at any outlet with products
        
        Online- via email, company website
        
        Contests, sweepstakes
        
        Specialties (specialty advertising)- items with brand name given away as a reminder e.g. hotel pens
      - Goals
        
        Brand awareness
        
        Trial (experience)- demonstration, sampling
        
        Market share growth- thru brand switch
        
        Reminder- about +ve experience
      - Benefits
        
        Variety
        
        Flexibility
        
        Accountability
    - - Types
        
        Retailer/dealer kits- materials supporting retailers' selling efforts e.g. product specs, how to display, ad slicks (soft-copy)
        
        Trade incentives ("push")- retailer support (e.g. extra purchase, superior store locations, etc.) reward
        
        (Monetary) bonuses- based on units sold
        
        Dealer loaders- premiums for buying a certain amt
        
        Buying allowances- discount for buying a certain amt within a time period
        
        Advertising allowances- payment to advertise product
        
        Cooperative advertising- contract where manufacturer pays part of retailers' ad expenses
        
        Display allowance- payment for setting up point-of-sale display
        
        Contests e.g. highest sales quota = winner
        
        Point-of-purchase (POP) displays e.g. banners, price cards, etc.
        
        Manufacturer-designed
        
        Retailer-designed- to differentiate stores
        
        Trade shows, exhibits- present, demonstrate, sell products
      - Goals
        
        Trade support
        
        Stimulate in-store sales
        
        Other support e.g. shelf space, feature pricing
        
        Excitement
        
        Garner attention esp. POP displays (stimulates impulse purchase, build store ambience)
        
        Motivate- trade members to support promotion
        
        Manipulate stock levels, distribution
    - - Better prepare sales ppl to do jobs e.g. training programmes
      - Retailer incentives to use programmes (e.g. contest) that motivate sales ppl
  - - - Co-marketing (manu and retailer develop marcom together)- foster their r/s
      - Co-branding
      - Tie-ins (ads tying 2 complementary products tgt, where whole is more value-added than sum of parts)- bigger impact
      - Cross-promo- typically arranged arnd movies
    - - Coordinates msg
      - Reduced unwanted msg- more sensitive to cust needs
- - - - Data-driven communication- understand cust needs, customise offerings
      - Big data (analytic software)- strategic targeting
  - - - Behavioural targeting
      - Spot trends
      - Profile prospects