edition 18 nov 21 2003

direct marketing madness

In the letterbox the other day were three computer catalogues, a number of letters from various financial institutions and an offer from an on-line stationery supplier. They were all addressed to me yet after opening they all went into the bin. Direct Marketing, and the most high profile aspect of this dicipline, direct mail, is on the increase. But is the value of DM really being harnessed? In this edition, Les Woolridge of P3DM answers this question.

 

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when dm stands for
destructive media

Increasingly, major advertisers are assigning more of their marketing budget to DM or CRM activities to achieve the level of direct response accountability seemingly unobtainable with traditional media advertising. But are they achieving a greater level of marketing and sales effectiveness and efficiency or is it simply the appeal of the measure?

DM is not a mass media

Used correctly, DM is a powerful marketing discipline. But rather than being used to develop more rewarding relationships with the customers and earning their loyalty, many marketers and their agencies and DM suppliers use it as an alternative mass media, bombarding customers with unwanted messages. In the process they risk undermining the very brand loyalty they want to build and in turn waste potentially huge amounts of time and money.

The power on DM is communicating with your audience in a way that considers their needs, wants, desires and interests. It is not about mass mailing, emailing or telephoning huge numbers of people with a standard message. If you want to do that then the existing media channels are often more cost effective, even adding the cost of the research to provide measurements of the effectiveness of the campaign.

Managing ROI

By engaging the wrong strategy, you can easily create the wrong expectation in your existing customers and new prospects.  This can be costly.  If down the track you find you cannot fund all the aspects of your strategy you will have to adjust your customers expectations, giving them less than what they first expected from you.

Or if you fulfil an overly generous expectation, that you have inadvertently created, you will continue to have cost overruns, resulting in a lower or negative ROI, and you'll still have to address the problem some time in the future, to correct the imbalance.

Making more of your DM opportunity

If you have committed to a DM strategy or are considering DM in your marketing mix, P3DM can provide independent, expert advice on your DM processes, strategies and costs to ensure you're achieving maximum value from your DM investment. To find out more contact P3DM
dm@p3.com.au

Les Woolridge @ P3DM

 


 


Les Woolridge joins P3DM with over 25 years experience in marketing communications and advertising. Focusing on strategic and intergrated marketing solutions, Les held senior management strategy and creative positions with many of Australia's top advertising and direct agency networks.

Les provides P3 clients with a wealth of knowledge and experience on direct response advertising, direct marketing, database marketing and loyalty and relationship marketing.

Contact Les at dm@p3.com.au or see www.p3dm.com.au  for more details

     
'tis the season for some fun
 

 

 

 

 

top 10 misleading statements heard in advertising

Treat yourself to a chuckle
and look out for
the final 'top 10' for 2004.

You won't believe
some of the things we've heard
over the past year.

 

     
P3 Advertising Performance Manual
 

Maximise value in the production,
planning and resourcing of your -

* television campaigns 
* print production
* media strategy & buying
* agency relationship & remuneration
* direct marketing
*
interactive campaigns
* public relations

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