Direct Mail Advertising

Direct Mail - Advertising and promotional pieces sent through the mail. Direct Mail is the mainstay of a group of promotional tools known as Direct Response marketing tools aka Direct Marketing tools. Direct response marketing tools include:

• Direct Mail pieces
  • letters
  • postcards
  • brochures
  • videotapes and cassete tapes
  • CDs
  • samples
  • coupons and coupon booklets
  • Catalogs
  • etc.
• Telemarketing
• All Conventional Media via coupons, insert cards, home shopping, infomercials, etc.
• Other
  • Telephone
  • Circulars
  • Take-ones
  • Bill inserts

The objective of Direct Response Marketing is usually to get an immediate and measurable response, unlike most other advertising media. Direct Marketing can be intended to either compliment and aid in awareness and attitude formation or, in many cases, supplant traditional advertising media used in campaigns to do this. However, an immediate and measurable response is the objective and expected outcome of Direct Mail and other direct marketing tools:

• an order
  • a purchase
  • a first time purchase
  • a repeat purchase
  • a trial use
  • a reservation
• a request for information
• identify prospects for future contacts
  • join a mailing list
  • subscribe to a newsletter
  • and so on

The response can take place anywhere...

• a trip to a store
• by mail
• by email or interactive web form
• telephone
• cable television system/onscreen intersctivity

Direct mail is often the most effective way to reach a selected target audience. It usually supports your other media advertising or may supplant it.

Direct mail pieces are targeted by:

• audience profile (selected addresses or purchased lists)
• or general delivery by geographic area.

Mailing lists are the key to whether or not direct mail is successful in reaching a selected target market or is used to simply canvas a selected terretory. The accuracy of the information and the quantity of related information is critical in a mailing list.

Simple mailing lists include names, addresses and contact information like phone numbers and email addresses.

A mailing list can be attained or formed by

• internal records
• buy or rent a mailing list from a vendor of lists or from other businesses
• volunteered information by the customer
• census information and other reserach

A mailing list becomes much more valuable and works better in reaching a selected target market when the basic address information is combined in a database with other information about consumers and their buying habits. This is called list enhancement.

List enhancement requires a database system, usually software rahter than manual, and it takes a big effort to gather the information, enter the information and maintain the information accuracy over time. Common enhancement categories of information include

• Geographics
• Demographics
• Geographics or Geodemographics - characteristics of the neighborhood
• Psychographics and Lifestyle - activities, interests and opinions
• Behavioral data - usage, purchase patterns, brand loyalty, etc.

Media Characteristics

Advantages

• timing
• detailed information
• offer and direct response devices
• customers can keep information and reminders
• acts as inexpensive sales force
• target marketing to select audiences
• adaptable message
• can experiement and test with message and formats
• ensures reach
• may add to frequency
• gets a response!

Disadvantages

• high CPM = $85-150 or as much as 15 to 20 times more to reach a single person
• mailing lists may be plauged with bad addresses and faulty information
• People avoid and throw away "junk mail"
• seller liable for product claims in writing
• audience skeptical
• sloppiness in effort resulting in wasted advertising dollars
• delivery time for bulk and third-class mailings are unpredictable

Response Rates

What constitutes a good result from a direct mail campaign? Let's start with some general response rates we can expect:

Questionnaires @ 35%
Fund Raising @ 5-10%
Business Solicitation Responses @ 1-4%, usually 1 %.

Strategies, Reader Behavior and Tips

• Work on the quality of your mailing list
• Always make a clear response offer
• Be creative, not obnoxious
• Most pieces are read while the recipient is standing
• First thing read is TO address
• Many pieces discarded on the way from the mailbox to the house
• Readers scan for
  • who it's to
• useful info or benefits
• something to keep
• Envelope makes 1st impression - size, color, stamp, return address, copy, addressing method
• Once inside - the first thing read is the P.S. on bottom or Johnson Box at the top

Bulk Mailings - Direct Mail postage costs can be greatly reduced by bulk mailing - where the advertisers presorts and bundles the mail broadly by zip code to narrowly by carrier route.

• Cost of 1st, 2nd or 3rd class
• you sort and bundle to reduce the post office effort
• Zip code sorting -

Steps Required to Prepare a Bulk Mailing (handout)

1) There must be at least 200 pieces or fifteen pounds.

2) All pieces must be identical if an indicia* is used for payment of postage.

3) Sort and bundle according to Zip Code (use rubber bands)

4) Label bundles with pressure sensitive labels (examples below**)

Zip Code Presort Requirements for Third-Class Bulk Mailins

STEP 1
Firm Packages - When all mail in a package is for an individual firm, a BLUE LABEL F must be affixed to the front of the package (Top Piece ONLY). Each piece must be separately addressed.

STEP 2
Five-Digit Packages - When there are ten or more pieces for the same 5-digit destination, they must be made up into 5-digit packages, securely banded or tied and faced in the same direction. Mailers are required to affix a RED LABEL D to each Package (Top Piece ONLY).

STEP 3
3-Digit Packages - When there are ten or more pieces for a 3-digit Zip Code Prefiz, after the required 5-digit packages have been made, they must be made into 3-digit packages. A GREEN LABEL 3 must be affixed to each package (Top Piece ONLY).

STEP 4
A Label Bundles
10 or more in each zip code grouping can be bundled together using PINK A LABEL affixed to each package (Top Piece ONLY).

STEP 5
Mixed State Packages - Pieces remaining after packages have been made, as outlined above, must be made up into mixed state packages. A TAN MIXED LABELmust be affixed to each package (Top Piece ONLY).

Note: Letter size bundles should not exceed 4 inches in thickness.

These instructions apply to Bulk Mail only. Different instructions exist for First and Second Class mailings.