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Volume 1 Issue 4 forward this newsletter July 17, 2003 In This Issue:   The Media Plan Planning a Direct Marketing Campaign 4: Crafting Your Offer Dear mAc:  What are merchandizing dollars? Word of the Day   The Media Plan - Maria Lopez-Knowles Just as you should never embark on developing a piece of collateral or advertising without a creative platform, the same holds true for planning media. Assuming you will be advertising, media alone is probably the biggest expenditure in your budget; therefore, the monies need to be expended wisely and your media planning must be strategic in nature. So for starters, develop a media brief or input form that at a minimum includes: campaign objectives; marketing objectives; competition; target market, seasonal buying characteristics and purchasing cycle. When developing the media plan it's crucial to keep in mind the following three criteria: consistency; integration; and, effectiveness. In terms of consistency, it's imperative that you plan your advertising so that at a minimum your ads are steadily appearing at least six times a quarter in a publication (assuming print advertising), and that you are consistently 'flighting' your advertising - weaving in and out of the publications. Remember, the rule of thumb is that people must see your ad three times before an impression is made. And just as it takes a minimum of three times to get noticed, if you run the same ad again and again without any gaps, you will quickly stop getting noticed; ergo, both extremes are bad. So remember, be consistent in your media placements, without being constant. Secondly, your media plan shouldn't be developed in a silo and must reflect integration with other elements of your marketing communications program so that the power of the message is increased exponentially. For example, you will want to increase your media expenditures and ad insertions during new product announcements and rollouts (or during other major promotions, industry tradeshow shows and key events). The media plan must reflect the activities in your global MarCom program and buttress these events. Finally, your media plan needs to be effective and generate results. The media vehicle is as important as your ad's creativity, your ad's call to action, and your overall advertising program; don't lose sight of this. So by all means, buy strategically and then monitor your plan's effectiveness by implementing and reviewing ad studies (provided by many publications), inquiries, and website hits. And make your media selection based on circulation or audience, editorial, cost efficiency, market reputation, and stability to increase its effectiveness. (Review the media chapter in  the MarCom Acumen Guidebook for detailed information regarding the media plan.)   Word of the Day CPM: Cost per thousand.  A measure of a media buy's efficacy; the cost required to reach 1,000 individuals in a particular target market (via print publication).     Planning a Direct Marketing Campaign 4: Crafting Your Offer - Steve Knowles Your offer is second only to the list in creating a successful campaign. Your offer must accomplish two things: it must be attractive, and it must attract the right people. You do this by offering something that has high utility for people who need your product. Direct marketers often think only in terms of attraction (response rate) - but even in the simplest case (where the response is an immediate purchase), it's much more useful - I'd say essential - to break this into two parts: the response rate (how many respond), and the conversion rate (how many actually purchase). Qualification In extended B2B sales cycles, DM campaigns bring leads into an early stage of the sales funnel. So, you must qualify your prospects before moving into more expensive stages. And your offer has a big impact on lead qualification. A carefully crafted offer will cause readers to "self-select" based on their interest in your product. For example, offering a "Free Digital Camera" may draw a huge response - but offering "20% off" your product price will only attract those who want your product. Which should you choose? If you have an inexpensive way to qualify prospects (say, a few questions on a web page), "casting a wide net" may make sense. But if your next step is an expensive, in-person visit from a sales rep, you'll want to be sure prospects are well-qualified. Take the Next Step Your goal is sales, but your campaign's immediate objective is to get respondents to take the next step in the sales cycle. Your offer can make this happen. Companies have been known to send prospects a set of earphones - "meet with a sales rep to get the matching MP3 player". Other companies deliver a free "lite" version of their software - but you must call a telesales rep for an activation key. Both offers encourage prospects to take the next step - but the second delivers more qualified prospects. Do it Now! Your offer must always create a sense of immediacy. Many people who find your offer attractive will set it aside to do later - and most of them will never get around to it! You can prevent this with a time-limited offer - like a three-day 4th-of-July sale or a limited introductory offer. Every one of your offers should have a specific time limit, to cause your prospects to act now. You'll find that more will act, period! Remember Your Brand You'd be elated to get a 10% response rate - but even then, 90% of the people you contacted will only see your direct marketing piece. What impression have you made? If your offer seems cheap, or your time limit arbitrary, you won't sell to those people - now or later. This doesn't mean your offer shouldn't be designed to generate a great response - you can build a successful campaign with an offer that respects your prospects and your brand. If your DM agency tells you otherwise - get another agency, fast!   Pay attention to these points, and you'll construct offers that not only meet your response rate objectives, but move your prospects to the next step in the sales cycle - and filter out those who won't ultimately make a purchase. Next issue:  the creative component.   (Review the MarCom Acumen Guidebook for more detailed information on Direct Marketing.)   Dear mAc Q: What are merchandising dollars? A: Merchandising dollars are somewhat like value-added coupons, if you will. Typically, the media will provide an advertiser with approximately 2% of the total monies expended with their publication over a given year in the form of merchandising dollars.  (Example: if you spend $100,000 with a publication or broadcast station over a 12-month period, you will receive the equivalent of $2,000 in merchandising dollars). These monies are provided for value-added marketing activities or programs that the publication has established. These can include: direct mail/email campaigns, research, premium positioning in a publication, etc. Unfortunately, the 2% can only be used with the publication (you won't get a cash rebate or refund to use freely).     Missed an issue of the Dossier? Visit our newsletter archives.     About this newsletter Marketing Acumen delivers marketing tips and insights twice each month to our subscription readership, helping you turn x into 2x in all your marketing efforts. Contact Us You can reach us at +1-510-547-6191 or info@marketingacumen.com About Marketing Acumen, LLC Marketing Acumen, LLC provides marketing products and consulting based on over 30 years experience in Product Marketing, Marketing Communications and executive management. We apply a scientific method to the art of Marketing, to get more than  the response you expected. We'll change your business and show you how to do it again and again - to turn x into 2x. (c) 2003 Marketing Acumen, LLC

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