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1
Brand X % awareness attributed to DM




                              2
“if it is accepted that all behavior in an
interactional situation has message value,
i. e., is communication, it follows that no
matter how one may try,
one cannot not
communicate."




       3
4
5
6
Branding=

The marketing practice of creating a name, symbol or
design that identifies and differentiates a product from
other 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
8
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 also
emphasize their short term sales
response




                      12
Plurimedia
Short term effect if 50K more investment
n: 300 brands measured during 80 periods
                                           13
Short term effect if 50K more investment
n: 300 brands measured during 80 periods
                                           14
15
16
Source: Mediapost (F)
                        17
Source: Royal Mail / Brand Science        +25%   +37%   +9%   +44%   +62%
                                     18
DM EFFECTIVENESS INTERACTS
WITH 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 Adopters

Addressed 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 used
generally reconstructed,        as a model parameter
  based on post-tests             for recall building
                                      and decay


                           26
27
Brand awareness              Aided Recall DM:            Aided Recall DM: DM               Aided Recall DM: Brand
Recall 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           Aided
Recall 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 factored
as given by the
                                         since
post 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
             brand




31
Avg=
                                 67,4%




Campaign recall % per category

                32
Avg=
                                      67,4%




Campaign recall % per type database

                             33
34
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 power
o « Mail medium » maybe better as name than
  « direct mail »
o Mail medium = 2nd best in recall building
o Our rules should fit those of the consumer:
  « siloing » is about techniques.

                      37
Thank you !

       38

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

  • 1. 1
  • 2. Brand X % awareness attributed to DM 2
  • 3. “if it is accepted that all behavior in an interactional situation has message value, i. e., is communication, it follows that no matter how one may try, one cannot not communicate." 3
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  • 7. Branding= The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other 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
  • 8. 8
  • 9. 6,2% Own DB = 8,9% External DB = 5,4% 9
  • 10. 23% turnover + 248 % 12% 10
  • 11. Source: Royal Mail / Brand Science 11
  • 12. Beware: traditional media also emphasize their short term sales response 12
  • 13. Plurimedia Short term effect if 50K more investment n: 300 brands measured during 80 periods 13
  • 14. Short term effect if 50K more investment n: 300 brands measured during 80 periods 14
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  • 18. Source: Royal Mail / Brand Science +25% +37% +9% +44% +62% 18
  • 19. DM EFFECTIVENESS INTERACTS WITH OTHER CHANNELS 19
  • 20. 6% response … means 94% waste ??? 20
  • 22. “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
  • 23. “I like receiving advertising through this medium” Digital Natives Digital Immigrants Late Adopters Addressed 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
  • 25. DM as a medium, the story of the « Beta » coefficient 25
  • 26. 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 used generally reconstructed, as a model parameter based on post-tests for recall building and decay 26
  • 27. 27
  • 28. Brand awareness Aided Recall DM: Aided Recall DM: DM Aided Recall DM: Brand Recall 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
  • 29. Base for beta coefficient calculation Brand Aided Aided Aided Recall 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
  • 30. Based on recall No decay factored as given by the since post campaign the first exposure * measurements * Average beta coefficient DM Frequency Averaged across considered target groups equal to 1 * 30
  • 31. 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 brand 31
  • 32. Avg= 67,4% Campaign recall % per category 32
  • 33. Avg= 67,4% Campaign recall % per type database 33
  • 34. 34
  • 35. The story goes on… 35
  • 37. o Everyone now cares about [sales] response… o No channel/medium owns a monopoly in branding power o « Mail medium » maybe better as name than « direct mail » o Mail medium = 2nd best in recall building o Our rules should fit those of the consumer: « siloing » is about techniques. 37