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Assignment 1 – Direct Marketing Elements
          By: Elizabeth Kulin
                May 2009
       www.kulinmarketing.com
Introduction to Direct Marketing:

       A direct marketing campaign is carried out through communication channels such

as mail, email, telemarketing, catalog and/or mobile. The design and execution decisions

throughout the campaign are based on the specific marketing objective(s) which the

campaign is trying to accomplish. The objectives are integrated into each of the 5 direct

marketing elements. The first 3, and most critical, elements are the list, the offer and the

copy. The additional 2 elements, of secondary importance, are layout and timing.

The direct Marketing Elements:

•   The List - A list of names and contact information of current and/or potential

    customers that the direct marketing piece is directed towards. A list is collected

    through natural business interactions, or can also be obtained by renting from list

    owners. When rented, it is important to know where the list information originated.

    Once compiled, the in-house list is stored in a database. Depending on its

    sophistication, a database manager can segment the list into categories of target

    markets such as demographics, geographic and psychographics. A database manager

    could also segment the list using modeling tactics, which can target a direct marketing

    piece to recipients who will (assumingly) most likely respond, based on their past

    actions.

•   The offer – The offer is designed by the marketer to entice the recipient/consumer to

    respond. The desired response of the consumer is based on the marketing objective to

    acquire membership, activate new activity sales, or retain their loyalty. The offer is

    also based on the marketer’s financial objective of increasing regency, frequency or
monetary sales.

•   The Copy – The copy is all of the text, written by the marketer, in the direct

    marketing piece. Copy can explain an offer, inform the recipient about the

    product/service, and can also include incentives, guarantees, and response

    instructions. These components, along with the tone of the copy writing (for example

    the language, dialect, length, font, grammar, and use of punctuation), are important

    for a direct marketer to decided and manage.

•   Layout/format – The layout and format are the artistic design, and ascetic

    arrangement, of a direct marketing piece. Layout and format are carefully designed

    to ensure that the recipient can easily understand the offer, read the copy, and

    understand how to respond.

•   Timing – Timing is the execution schedule of the direct marketing campaign. Timing

    can be aligned with an event, holiday, and/or membership renewal, and can increase

    interest and response rates from the recipient. This strategy can also be used to

    reinforce the marketing objective. For example, if the marketing objective is to

    activate new active sales, a limited time offer could persuade the recent to respond

    quicker than their past normal rate of response.

Analysis and Critique of Direct Marketing Elements in Wine.com Email:

    The use of a list is apparent in this email because it is addressed to Jan personally and

is also emailed to her personal email address. Therefore, wine.com must have Jan’s

name and email address in their in-house database, or have rented a prospect list from a

list owner or broker that her name and email address were on. From the use of Jan’s

name and email address alone we can not tell if she is a current or prospective customer
of wine.com. It is possible that Jan’s name and email address are on a segmented list. If

so, the marketing manager would be attempting to alight the email’s content, or offer, in a

targeted manor in effort to increase response rates.

   The second direct marketing element implemented in this email is the offer. There

are multiple offers in this email piece. Each one attempts to speak to the recipient, spark

an interest and encourage a response. One offer is: $5 off the purchase of at least $50

worth of wine. This offer is aligned with the holiday Cinco De Mayo, and more

importantly the word, Cinco (meaning 5 in Spanish). The correlation, and use of

semiotics, brings validity to the offer’s discount amount ($5) and the required purchase

amount ($50) in a fun and supportive way for the marketer. The additional offers in this

email are 3 different categories of $20 and below priced products for the consumer to

research and choose from.

   The use of multiple offers in one email could increase the chances that the recipient

will be interested in at least one offer, take action, and respond with a purchase. The

combination of these offers is encouraging that the consumer to purchase at least 3-4

bottles of wine (at least $50 worth of $20 bottles). Thus, the marketer’s objective is to

encourage activity of new sales and also to increase monetary spending volumes. Since

this email is directed towards Jan, it may be that she has a past behavior of purchasing

$20 wine bottles, and it is this behavior that the marketer is attempting to activate with

the additional offers. It may also be that Jan’s typically purchases are less than $50 per

order, and it is this behavior that the marketer is attempting to change with the offer of $5

off of at least $50 purchases. These offers are descried to the email recipient in the copy

writing of the email.
The copy is the creative element that displays the text of this email. In this email it

begins with the subject line that includes text describing the email purpose, and also the

multiple offers. The inclusion of the offers encourages the recipient to feel that opening

this email will be beneficial to them. The text in the body of the email not only explains

the multiple offers, but also includes descriptive copy, links to consumer ratings (top

most popular and top rated) and supportive copy of expert Robert Parker’s wine.com

product ratings. This element reinforces the validity of the offerings, their product value,

and reputation. Furthermore, it speaks to the reader who might simplify their wine

purchasing decision by trusting consumer ratings, popularity, and/or industry experts. By

doing so, it also simplifies the consumer’s ability to respond.

   The email’s layout design is built on the copy and includes imagery and text that is

spaced out evenly into category sections of information, product description, response

instructions, and terms & conditions. This format creates a clean, simple to read and

astatically pleasing letter that is easy for the reader’s eye to follow. The placement of the

sections, beginning with the colorful imagery and large headline, create a path that

encourages the reader to continue down the page. Each section is generally short in

length, which could be a design tactic used to avoid losing the recipients attention and

interest. Finally, once at the product description/check out section, the reader’s eyes are

drawn to the colorful and bold automatic shopping cart button. An automatic shopping

cart makes responding easy for the consumer, while also enabling wine.com to record

consumer purchasing history in their database to increase their “market basket” list

building.

       All of these elements are strategically designed in an attempt to speak to Jan’s
consumer behavior. However, as the book “Successful Direct marketing Methods” by

Bob Stone and Ron Jacobs states, “Consumer behavior is not easy to change” (Stone and

Jacobs. (2008). Successful Direct Marketing Methods. New York, NY: McGraw-Hill.

Page 8). Reinforcing the direct marketing elements with a timed execution can be an

additional strategic measure, which a marketer can take, to increase the chances of

consumer response. The timing of this email is aligned with the holiday Cinco De Mayo.

This correlation could be based from a modeling tactic, if wine.com has historic data

showing that Jan’s past purchasing behavior categorizers her as a holiday shopper.

Additionally, this email uses a second timing strategy. It tells the recipient that there is a

24 hour expiration time limit. This expiration time limit strategy creates a feeling of

urgency to take action and respond. It is possible that this tactic is being direct towards

Jan because her past behavior shows a gap in time between purchases. The marketer is

carrying out the goal, of encouraging the activity of new sales, though the tactic of timing

in conjunction with the other 4 direct marketing elements.

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Direct Marketing Elements

  • 1. Assignment 1 – Direct Marketing Elements By: Elizabeth Kulin May 2009 www.kulinmarketing.com
  • 2. Introduction to Direct Marketing: A direct marketing campaign is carried out through communication channels such as mail, email, telemarketing, catalog and/or mobile. The design and execution decisions throughout the campaign are based on the specific marketing objective(s) which the campaign is trying to accomplish. The objectives are integrated into each of the 5 direct marketing elements. The first 3, and most critical, elements are the list, the offer and the copy. The additional 2 elements, of secondary importance, are layout and timing. The direct Marketing Elements: • The List - A list of names and contact information of current and/or potential customers that the direct marketing piece is directed towards. A list is collected through natural business interactions, or can also be obtained by renting from list owners. When rented, it is important to know where the list information originated. Once compiled, the in-house list is stored in a database. Depending on its sophistication, a database manager can segment the list into categories of target markets such as demographics, geographic and psychographics. A database manager could also segment the list using modeling tactics, which can target a direct marketing piece to recipients who will (assumingly) most likely respond, based on their past actions. • The offer – The offer is designed by the marketer to entice the recipient/consumer to respond. The desired response of the consumer is based on the marketing objective to acquire membership, activate new activity sales, or retain their loyalty. The offer is also based on the marketer’s financial objective of increasing regency, frequency or
  • 3. monetary sales. • The Copy – The copy is all of the text, written by the marketer, in the direct marketing piece. Copy can explain an offer, inform the recipient about the product/service, and can also include incentives, guarantees, and response instructions. These components, along with the tone of the copy writing (for example the language, dialect, length, font, grammar, and use of punctuation), are important for a direct marketer to decided and manage. • Layout/format – The layout and format are the artistic design, and ascetic arrangement, of a direct marketing piece. Layout and format are carefully designed to ensure that the recipient can easily understand the offer, read the copy, and understand how to respond. • Timing – Timing is the execution schedule of the direct marketing campaign. Timing can be aligned with an event, holiday, and/or membership renewal, and can increase interest and response rates from the recipient. This strategy can also be used to reinforce the marketing objective. For example, if the marketing objective is to activate new active sales, a limited time offer could persuade the recent to respond quicker than their past normal rate of response. Analysis and Critique of Direct Marketing Elements in Wine.com Email: The use of a list is apparent in this email because it is addressed to Jan personally and is also emailed to her personal email address. Therefore, wine.com must have Jan’s name and email address in their in-house database, or have rented a prospect list from a list owner or broker that her name and email address were on. From the use of Jan’s name and email address alone we can not tell if she is a current or prospective customer
  • 4. of wine.com. It is possible that Jan’s name and email address are on a segmented list. If so, the marketing manager would be attempting to alight the email’s content, or offer, in a targeted manor in effort to increase response rates. The second direct marketing element implemented in this email is the offer. There are multiple offers in this email piece. Each one attempts to speak to the recipient, spark an interest and encourage a response. One offer is: $5 off the purchase of at least $50 worth of wine. This offer is aligned with the holiday Cinco De Mayo, and more importantly the word, Cinco (meaning 5 in Spanish). The correlation, and use of semiotics, brings validity to the offer’s discount amount ($5) and the required purchase amount ($50) in a fun and supportive way for the marketer. The additional offers in this email are 3 different categories of $20 and below priced products for the consumer to research and choose from. The use of multiple offers in one email could increase the chances that the recipient will be interested in at least one offer, take action, and respond with a purchase. The combination of these offers is encouraging that the consumer to purchase at least 3-4 bottles of wine (at least $50 worth of $20 bottles). Thus, the marketer’s objective is to encourage activity of new sales and also to increase monetary spending volumes. Since this email is directed towards Jan, it may be that she has a past behavior of purchasing $20 wine bottles, and it is this behavior that the marketer is attempting to activate with the additional offers. It may also be that Jan’s typically purchases are less than $50 per order, and it is this behavior that the marketer is attempting to change with the offer of $5 off of at least $50 purchases. These offers are descried to the email recipient in the copy writing of the email.
  • 5. The copy is the creative element that displays the text of this email. In this email it begins with the subject line that includes text describing the email purpose, and also the multiple offers. The inclusion of the offers encourages the recipient to feel that opening this email will be beneficial to them. The text in the body of the email not only explains the multiple offers, but also includes descriptive copy, links to consumer ratings (top most popular and top rated) and supportive copy of expert Robert Parker’s wine.com product ratings. This element reinforces the validity of the offerings, their product value, and reputation. Furthermore, it speaks to the reader who might simplify their wine purchasing decision by trusting consumer ratings, popularity, and/or industry experts. By doing so, it also simplifies the consumer’s ability to respond. The email’s layout design is built on the copy and includes imagery and text that is spaced out evenly into category sections of information, product description, response instructions, and terms & conditions. This format creates a clean, simple to read and astatically pleasing letter that is easy for the reader’s eye to follow. The placement of the sections, beginning with the colorful imagery and large headline, create a path that encourages the reader to continue down the page. Each section is generally short in length, which could be a design tactic used to avoid losing the recipients attention and interest. Finally, once at the product description/check out section, the reader’s eyes are drawn to the colorful and bold automatic shopping cart button. An automatic shopping cart makes responding easy for the consumer, while also enabling wine.com to record consumer purchasing history in their database to increase their “market basket” list building. All of these elements are strategically designed in an attempt to speak to Jan’s
  • 6. consumer behavior. However, as the book “Successful Direct marketing Methods” by Bob Stone and Ron Jacobs states, “Consumer behavior is not easy to change” (Stone and Jacobs. (2008). Successful Direct Marketing Methods. New York, NY: McGraw-Hill. Page 8). Reinforcing the direct marketing elements with a timed execution can be an additional strategic measure, which a marketer can take, to increase the chances of consumer response. The timing of this email is aligned with the holiday Cinco De Mayo. This correlation could be based from a modeling tactic, if wine.com has historic data showing that Jan’s past purchasing behavior categorizers her as a holiday shopper. Additionally, this email uses a second timing strategy. It tells the recipient that there is a 24 hour expiration time limit. This expiration time limit strategy creates a feeling of urgency to take action and respond. It is possible that this tactic is being direct towards Jan because her past behavior shows a gap in time between purchases. The marketer is carrying out the goal, of encouraging the activity of new sales, though the tactic of timing in conjunction with the other 4 direct marketing elements.