Bernard cools - DM, the good, the bad or the ugly for branding?

Brand X % awareness attributed to DM 2

“if it is accepted that all behavior in aninteractional situation has message value,i. e., is communication, it follows that nomatter how one may try,one cannot notcommunicate." 3

Branding=The marketing practice of creating a name, symbol ordesign that identifies and differentiates a product fromother products (www.entrepreneur.com)A seller’s promise to deliver a specific set of features,benefits and services consistent to the buyers (Ph. Kotler ?) 7

6,2%Own DB = 8,9% External DB = 5,4% 9

23% turnover + 248 % 12% 10

Source: Royal Mail / Brand Science 11

Beware: traditional media alsoemphasize their short term salesresponse 12

PlurimediaShort term effect if 50K more investmentn: 300 brands measured during 80 periods 13

Short term effect if 50K more investmentn: 300 brands measured during 80 periods 14

Source: Mediapost (F) 17

Source: Royal Mail / Brand Science +25% +37% +9% +44% +62% 18

DM EFFECTIVENESS INTERACTSWITH OTHER CHANNELS 19

6% response… means 94% waste ??? 20

Source: Mediapost (F)21

“Overall, which advertising media do you like the most ?” Addressed DM 31% Unaddressed DM 23% TV 13% Press 7% Email 5% Internet 4% Radio 3%In het algemeen, via welk medium ontvangt u het liefst reclame?De manière générale, sur quel média préférez-vous la publicité ?Source : Market Probe 2010 22

“I like receiving advertising through this medium” Digital Natives Digital Immigrants Late AdoptersAddressed DM 45% 41% 47%Unaddressed DM 21% 24% 33%TV 25% 16% 12%E-mail 20% 18% 9%Press 11% 12% 11%Radio 12% 10% 8%Social Networks 9% 4% 2% Source : Market Probe 23

Source: Synovate Censydiam 2007 24

DM as a medium, the story of the« Beta » coefficient 25

Beta coefficient Recall after 1 contact determines recall Developped in the 70’s after « n » contacts by A. Morgensztern Beta = probability of recalling a given ad after 1 contact, « Beta » may be usedgenerally reconstructed, as a model parameter based on post-tests for recall building and decay 26

Brand awareness Aided Recall DM: Aided Recall DM: DM Aided Recall DM: BrandRecall DM - spont category (spont.) product category description prompted Opening (Y/N)? Action after reception Reading type: Thrown away, kept for reading later, given to open not read, partially, normally, completely someone else Recall content (describe) Evaluation (score on 7 points scale) Liking, convincing, inciting, relevant for me, original, interesting, informative, give a positive image of the brand, increases knowledge on brand Action taken (will go to the shop, call, use coupon,…) Intention to buy (score 5 points scale) Yes Use DM after reading - thrown away, kept, given to someone else No - Information discussed or seen by others: Y/N Demographics: Age, social class, language 28

Base for beta coefficient calculation Brand Aided Aided AidedRecall DM awareness Recall DM: Recall DM: Recall DM: - spont category product DM Brand (spont.) category description prompted Yes Similar approach than for other media No 29

Based on recall No decay factoredas given by the sincepost campaign the first exposure *measurements * Average beta coefficient DM Frequency Averaged across considered target groups equal to 1 * 30

Average DM beta value = 67,4% out of 89 cases After one DM campaign 2 out of 3 exposed individuals are likely to recall the advertised brand31

Avg= 67,4%Campaign recall % per category 32

Avg= 67,4%Campaign recall % per type database 33

The story goes on… 35

As a conclusion…36

o Everyone now cares about [sales] response…o No channel/medium owns a monopoly in branding powero « Mail medium » maybe better as name than « direct mail »o Mail medium = 2nd best in recall buildingo Our rules should fit those of the consumer: « siloing » is about techniques. 37

Thank you ! 38

Bernard cools - DM, the good, the bad or the ugly for branding?

by bpost on May 04, 2011

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Bernard cools - DM, the good, the bad or the ugly for branding? — Presentation Transcript

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