“Reports of my death have been highly exaggerated.”
Samuel Langhorne Clemens (Mark Twain)
We last discussed Awareness Activities, the first in the three categories of marketing opportunities. While I have been advised by some in recent times that offline marketing and advertising is dead-finished- no more, I think there are a few gasps of breath left in the offline marketing and advertising channel.
Direct Mail Direct Response (DMDR)
According to The DMA 2003 Direct Mail Response Rate Study, the average response rate for the 1,122 industry-specific campaigns The DMA studied was 2.61 percent.
The study found the industries that utilize direct and interactive marketing to achieve above average response rates were:
- Nonprofit Fundraisers (5.35 percent)
- Retail Stores (3.36 percent)
- Establishments Rendering Services to Businesses (3.34 percent)
- Manufacturing (3.17 percent)
- Personal and Repair Services (3.07 percent)
- Travel (2.98 percent)
- Computer & Electronic Products (2.86 percent)
- Packaged Goods (2.79 percent)
So, is direct mail still a profitable marketing tool? That depends, but direct mail is one of the easier ROI calculations to estimate. Simply take the cost of the piece you will be mailing, the cost of the list and labor, if applicable, to reach a total cost. Next, determine estimated response rate (above), the estimated conversion/close rate and the average value of the sale (profit).
For example, if you mail 1000 pieces and estimate that 2.61% will respond (the average from above) and assume 20% of those will close, then the 1000 pieces should yield about 5 sales (1000 X 2.61% = 26 responders, 26 X 20% = 5 sales). Now, just determine if the value of the 5 sales is more or less than the total cost of the mailing. Then, remember these are only estimates and other variables such as the quality of the piece(s) mailed, the quality of the list and the frequency you will be mailing (one time vs a series) can vastly vary the results.
Publication Advertising
Advertisements in publications, especially industry trade publications, can be a great source for building brand awareness and generating sales leads. Subscribe to all trade publications for the markets you serve, read them, study the ads and then determine which is the best fit for your offering and your budget. If at all possible, plan a series of ads with a theme and consistent branding to build recognition with readers.
Trade Shows and Conferences
Trade shows and conferences can be used to build awareness, generate leads, find new customers, and maintain or improve current customers’ perceptions. Trade shows are more effective in some industries than others, so just determine if the reward (other than visiting Vegas, etc.) justifies the expense.
These events present the following promotional opportunities:
♦ Network – meet prospects within the targeted industries to help build overall awareness of your product, set up meetings with other participants, invite clients or prospective customers to visit the booth
♦ Exhibit – Secure exhibit space, logo placement and name in event guide and other promotional assets
♦ Event Sponsorships – Overall show/conference sponsor or smaller, daily event sponsorships through show/conference
♦ Off-Site Event Sponsorships – Sponsor and off-site event that is not offered through the show/conference. Examples would include dinner at a local restaurant, cocktails at local museum or exhibit, etc.
♦ Speaker – Speak at event or in topic driven forums to share insights and build exposure with industry decision-makers.
Next up: Part 3: Online Marketing
Dallas Marketing Services is a marketing blog
published by Seven Aspens Consulting
