Week 4 Notes Assignment Page

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Week 4 Notes Assignment Page

  1. 1. CATALOGS Consumer - catalogs have large circulations, and are primarily specialty catalogs as opposed to general merchandise. Business-to-business - catalogs sell such items as office supplies and computer accessories. They generally have much smaller circulations and focus on a specific type of item as opposed to general merchandise. The consumer catalog shopper is different from the traditional retail shopper in their demographics, lifestyles and shopping attitudes. They are better educated, work in professional and managerial capacities, earn more money, and are more comfortable with modern technology, and own stocks and bonds. They like familiar brands and prefer traditional clothing. Demographics of catalog shoppers Non catalog shoppers 58 percent women/42 percent men Equal number of men and women 57 percent are married 47 percent are married Larger percentage have 3 or 4 person larger number of single households Larger percentage have households w Children 66 percent live in houses rather than apartments or condos More than two-thirds have attended college Eight Key Factors in the perceived appeal of catalogs (in order of importance) 1. Convenience 2. Desirability of merchandise 3. Credibility of catalog name 4. Catalog presentation (graphics and quality reproduction) 5. Succinct, informative copy 6. Psychological use of color 7. Timing of mailing (seasonality) 8. Previous mail-order fulfillment experience Terminology Motives - are the unseen, inner forces that stimulate and compel a behavioral response For example: At a basic level, apparel purchases are motivated by physical need for clothing. At a psychological level, the consumer motivation is to purchase apparel that fulfills a need for status, self-esteem, or social acceptance. A Customer Preference Structure Analysis is used to show that catalog customers have distinct perceptions about the offerings of specific catalogs and definite notions about which competitors carry comparable items.
  2. 2. CATALOG DESIGN Photographs are the focal point of most catalogs. They put the product in the best possible light by using attractive models, special lighting, camera angles, and background situations to enhance the appeal of the merchandise. They also add credibility to the offer by showing what the merchandise will look like. Design Decisions are: 1. The Creative Theme 2. Size of Catalog - most common 8 ½ x 11 3. Layout - usually designed using a grid layout or free-flowing layout 4. Merchandise placement - usually either by category or user type 5. The copy - main function is to sell 6. The order form - has one purpose, to make it as easy as possible for the customer to place an order. Uses of Database Technology for Catalog Marketers 1. In addition to using house lists of “best/preferred customers” and to purchasing lists from similar catalogers using RFM, database technology allows catalogers to screen out customers with high returns. 2. By tracking the revenue generated with each mailing, it helps the company avoid oversaturating their best customers and pinpoint the optimal number of catalog mailings necessary to maintain profitability. TELEMARKETING Telemarketing is the largest direct advertising medium in the U.S. Inbound - where customers are calling a firm to place an order or to request more information or customer service. Outbound - where the firm is calling customers and prospects to make a sale or to offer information which it hopes will lead to a sale. The seven most significant uses of telemarketing are: 1. Selling, including outgoing and incoming calls 2. Setting qualified leads - setting appointments for sales people 3. Generating leads 4. Surveying - used to gather market data about customers 5. Providing customer service - after solving a customer’s problem, the customer service representative may take the opportunity to announce a new product/service 6. Advertising/Public Relations - call companies or individuals who could benefit from the information. 7. Pursuing collections - pursues receiving payment
  3. 3. Scripts What makes telemarketing unique from other forms of direct marketing is it’s use of scripts Telemarketing scripts - introduce the caller, describe the service, and make a sales pitch in an organized fashion in an attempt to get the person receiving the call to place an order. Telemarketing is frequently integrated with other media Print advertising can call in and get more information or place an order. Many firms put their 800 numbers in the yellow pages to encourage inbound calls Catalogs - can order 24 hours a day, seven-days-a-week toll free. Direct Mail - by including an 800 number on the response device it increases orders Television direct marketing uses inbound 800 numbers to receive orders Radio promotes phone-in information requests Service Bureau - specializes in handling high call volumes, whether incoming or outgoing. FTC Rules - have an extremely broad definition of telemarketing, they cover the sale of goods or services by telephone as well as by computer modem or any other telephonic medium. Direct Marketing Association has set up guidelines for telephone marketing. 1. Prompt Disclosure: Identity of Seller/Purpose of Call 2. Honesty - all offers should be clear, honest and complete 3. Disclosure of Terms of the Offer - how much the merchandise or service will cost, availability of a refund, extra charges, etc. 4. Reasonable Hours - phone contacts must be made during reasonable hours, as specified by federal and state laws and regulations. 5. Automated Dialing Equipment - must use the kind which allows the phone to release the line when the called party disconnects. Also, prerecorded messages are covered by tariffs, federal, state and local laws and FCC regulations. 6. Taping of Conversations should only be conducted with consent of all parties 7. Name removal - marketers should remove consumer’s names from phone lists upon consumer request and at no charge. 8. Collection and Transfer of Data - Consumers who provide data that may be rented, sold or exchanged should be informed and given the opportunity to opt-out. 9. Monitoring - monitoring of marketing by customer relations conversations should be conducted for purposes of training, quality assurance, and to ensure compliance with consumer protection laws.
  4. 4. 10. Promotions for response by 800, 888, and 900 numbers should be used only when there is no charge to the consumer for the call itself. Any 900 number call should be clearly disclosed that there is a charge.. 11. Children - Pay per call services should not be directed to children under 12 and those directed to consumers between the ages of 12 and 18 should clearly disclose that parent or guardian permission should be obtained. 12 Prompt Delivery - marketers should abide by the FTC regulation regarding the prompt shipment of prepaid merchandise, the Mail or Telephone Order Merchandise (Thirty Day Rule). 13. Laws, Codes and Regulations - Operate in accordance with the laws and regulations of the United States Post Office, Federal Communications Commission, The Federal Trade Commission, The Federal Reserve Board and other state, local and federal laws.

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