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1

Direct Marketing

Includes web, social, tv, magazine... any medium.
The most measurable.
Big demand from clients, huge potential for growth, excellent pay.

2

Direct Mail Benefits

Clients put in most money here. Measurable ROI, Ability to retain customers, reaches the right audience.

3

Direct Marketing Definition

A database-driven process of directly communicating with target customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels.
Marketing directly from manufacturer or wholesaler to the consumer. (no intermediary/retailer)

4

Four key areas to direct marketing

catalog, direct mail, telemarketing, and direct-response advertising

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Three key elements needed for direct marketing

offer, response mechanism, and measurability

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One-to-one communication

Direct Marketing

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LTV

Lifetime Value - keep customers beyond the first sale

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CRM

Customer Relationship Management - Don't just keep the customer, make the most of the relationship from beginning to end

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acquisition and retention

Getting new customers then keeping them

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Advantages of Direct Marketing

Purchase not restricted to location, marketer controls product until delivery, easier to evaluate its effectiveness, flexibility in form and timing, personalization, talk to people not at them, focuses on sales, relevant customer info

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Disadvantages of Direct Marketing

Market to people online giving up secret information ex: baby story, leak gifts to receivers etc.
Consumers reluctant to purchase (can't touch the product or try it on)
Credit card numbers unsafe online.
Annoyances associated with Direct Marketing.
Unable to reach everyone in marketplace.

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Merge and a purge

clear/transition database due to transient audiences, people that die etc.

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Offer

Give the customer something - motivate them to act, incentives, free trial, samples, discounts etc.

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Response mechanism

Give the customer a war to respond immediately

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Measurability

Test what worked and what didn't.
What is the response rate? - generally low (2%)
What characteristics are most successful?
Which offers do people like the most?

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Direct Mail Formats

Self-Mailer (no envelope, lower response rate but costs less)
Direct Mail package (in an envelope)
Dimensional Mailer (box or tube etc.)

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Advantages of Direct Mail

Tells a story, engages attention, personalization, builds feedback, reaches the unreachable.

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Disadvantages of Direct Mail

Expensive (printing and postage), negative perception, mailing list, response rate, vulnerability

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Catalogs

multiple page, direct mail publication, shows a variety of merchandise

20

Past behavior is

the best predictor of future behavior

watch what people do not what they say

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Telemarketing two categories

inbound- someone calls the telemarketer
outbound- cold call from the telemarketer

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direct response advertising

Has an offer, has response methods and is measurable. Can be tv, radio, print etc.

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5 major success

1 don't let creativity get in the way
2 sell benefits not features
3 make an offer
4 urgency, give timeline
5 appeal to core values/universal motivators

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Direct mail components

outer envelope (the most important part)
letter
brochure
lift note
business reply envelope or card
application (depending on client)

25

Out of home advertising

Out of home provides an alternative that can't be turned off or thrown away in the clutter. No room for featured benefits, has negative image (environmentally), hard to measure effectiveness, not all markets are large enough to offer out of home.
Keep it short, simple, creative, focus on one idea.

26

Interactive

web sites, online ads, emails, cds
big bucks in search engine optimization (measurability)
two way communication - getting closer to the real conversation

27

Intranet and Extranets

Intranet - internal communication system that connect employees
Extranets - communications system that connect a company and its employees to key external stakeholders

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Branding

Found a need and made a promise to consumers.
A brand is a collection of perceptions in the mind of the consumer.

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Slogans

theme line, tag line, memorable, appear near the logo or as a sign off not as a headline.

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Neologism

Making up a new word/name