Copyright © 1992 by Prentice Hall Computer Publishing All rights reserved including the right of reproduction in whole or in part in any form I Brady Publishing Published by Brady Publishing a Division of Prentice Hall Computer Publishing Manufactured in the United States of America 2 3 4 5 6 7 8 9 10 Library of Congress Cataloging-in-Publication Data Gasteiger, Stacy. Desktop marketing with the Macintosh I Stacy Gasteiger and Tracy Emerick. p. em. -- (Lotus books) Includes index. ISBN 0-13-203613-4: $34.95 1. Direct marketing--Data processing. 2. Macintosh (Computer) I. Emerick, Tracy. II. Title. III. Series. HF5415.126.G37 1992 658.8'4--dc20 - ii Acknowledgments The authors extend thanks to Mel Berger for initially coming up with the idea for this book; to Susan Hunt for making the idea a reality; to Winnie Davis for her copy edit of the manuscript; and to Bettina Versaci for her skilled management of production. Dedication Stacy would like to dedicate this book to Daniel, who, somehow or other, turned her into a writer. - iii Trademarks All brand and product names mentioned herein are trademarks or registered trademarks of their respective holders. Limits of Liability and Disclaimer The authors and the publisher of this book have used their best ef forts in preparing this book and the programs contained in it. These efforts include the development, research, and testing of the theo ries and programs to determine their effectiveness. The authors and publisher make no warranty of any kind, expressed or implied, with regard to these programs or the documentation contained in this book. The authors and publisher shall not be liable in any event for incidental or consequential damages in connection with or rising out of the furnishing, performance, or use of these programs. - iv Contents Introduction ....................................................................................... 1 What This Book Can Do for You .............................................................. 1 Using This Book ........................................................................................ 2 1 What Is Desktop Marketing? ................................................. 3 Direct Marketing ....................................................................................... 5 Definition of Direct Marketing ....................................................... 5 Desktop Marketing Tools ......................................................................... 6 Word-Processing Software ...................................................... 7 Desktop Publishing ................................................................. 7 Database Management ............................................................ 7 Financial Management ........................................................... 7 Lead-Generation ..................................................................... 8 Other Specialized Software ..................................................... 8 The Desktop Marketing Difference ......................................................... 9 All-American Insurance Before Desktop Marketing ...................... 9 All-American Mter Desktop Marketing ........................................ 11 The Benefits ................................................................................... 13 2 Basics of Direct Marketing .................................................... 1 5 An In-Depth Definition of Direct Marketing ........................................ 16 1) Seeks to Gain or Maintain a Customer ........................... 17 2) Structured System of Contacts ........................................ 18 3) Measures Inputs and Outputs ......................................... 18 4) Complements, Supplements, or Substitutes for Current Selling Methods ........................ 18 5) Requires Shared Information Base ................................. 19 6) Basis for Continuing Contact .......................................... 19 7) Uses Any Media ................................................................ 19 Direct Mail and Telemarketing: Direct Marketing's Two Most Effective Methods .............................. 20 Direct Mail ...................................................................................... 20 Telemarketing ..........-...................................................................... 21 Seven Steps for Direct Marketing .......................................................... 21 v Desktop Marketing with the Macintosh Step 1: Prepare Yourself ................................................................. 22 A) Evaluate and Prepare Your Current Marketing Systems ........................................................... 23 B) Define Your Product and Service .................................... 24 C) Position Your Product. ..................................................... 24 D) Prepare to Fulfill Promises .............................................. 24 E) Financial Considerations ................................................. 24 Step 2: Develop an Offer ............................................................... 25 Step 3: Find Prospective Customers .............................................. 25 Step 4: Create a Direct Mail Package ............................................ 26 Step 5: Create a Tt;lemarketing Plan ............................................ 26 Step 6: Analyze Results ................................................................... 26 Step 7: Maintain Ongoing Marketing ........................................... 27 3 Prepare Yourself ......................................................................... 29 Evaluate and Prepare Your Current Marketing Systems ...................... 31 Think Through Your Sales Process ............................................... 32 Make Your Goals More Concrete .................................................. 34 Value and Worth of a Customer ........................................... 35 Salesperson Cost and Closing Rates ..................................... 36 New Customer Planning ....................................................... 36 Market Size Requirements .................................................... 37 Define Your Product or Service ............................................................. 37 Position Your Product ............................................................................. 38 Prepare to Fulfill Your Desktop Marketing Programs .......................... 39 Consider Financial Matters .................................................................... 41 Other Financial Considerations ............................................................. 41 Marketing Campaign Cost ............................................................. 42 Gross Margin .................................................................................. 42 Response Rate ................................................................................ 43 4 Develop an OHer ........................................................................ 45 How to Make an Offer ...................... ~ ..................................................... 46 Credibility ....................................................................................... 47 Benefits ........................................................................................... 48 Motivation ....................................................................................... 48 Types of Offers ........................................................................................ 50 Basic Payment Offers ............................. ,. ...................................... 50 Free Gift Offers ............-.................................................................. 51 vi Desktop Marketing with the Macintosh Other Free Offers ........................................................................... 53 Discount Offers ....................................................................... , ...... 56 1-- Sale Offers ........................... ·. .......................................................... 58 Sample Offers ................................................................................. 59 w Time Limit Offers .......................................................................... 59 Guarantee Offers ............................................................................ 61 1-- Build-Up-the-Sale Offer ................................................................. 63 Sweepstakes Offers ......................................................................... 64 0 Club and Continuity Offers ........................................................... 65 How to Improve an Offer ....................................................................... 72 5 Define Your Prospective Customers ............................... 75 Defining Your Customer ........................................................................ 76 MarketPlace Business .............................................................................. 77 Information in MarketPlace Business .................................................... 80 Annual Sales ................................................................................... 82 Number of Employees ................................................................... 84 Type of Business ............................................................................. 86 Location .......................................................................................... 90 Area Codes ...................................................................................... 95 Data Options .................................................................................. 96 Changed Data ........................................................................ 96 Complete Records ................................................................. 97 Examples of Creating Lists with MarketPlace ....................................... 98 Wllere Should We Expand? ........................................................... 98 Wllere the Pilots Are .................................................................... 100 Wllere Should We Have a Meeting? ........................................... 102 Defining Household Prospects ............................................................ 104 Gender .......................................................................................... 105 Income .......................................................................................... 106 Age ................................................................................................ 107 Location ........................................................................................ 107 Lifestyles ........................................................................................ 108 Marital Status ................................................................................ 109 Mail-Order Purchase History ....................................................... 10 9 Examples of Defining Consumer Lists ................................................ 110 Hometown Bank .......................................................................... 110 Made for You ................................................................................ 111 Heat Your Home More Cheaply ................................................. 111 - vii Desktop Marketing with the Macintosh List S~lection Options .......................................................................... 112 Sample List ................................................................................... 112 Merge List ..................................................................................... 113 6 Get the Names You Want .................................................. 117 Industry Structure ...................... o.. ........................................................ 118 List Owner .................................................................... 118 00 .............. List Manager ........ oo• ............... 118 00 .. 00 .... 00 ...... 00 .................. 00 ............... List Broker ............................. 119 00 .................. 00 ................................. Renter's Rights .. o.. ....... o.. o.. ....... o.. .. o.o .................. o.. ................................ 120 Types of Lists ................ o.. ... o.. ........................................ o.. ....... 122 0 ............. Response Lists .................. o. o.. .................... 122 0 .................................. Advantages ··o····o·······o························o·································o122 Disadvantages .................................................................. 123 0 ... Subscription Lists .. o.. .. o.. . o.. ...... 123 0 ......... 0 ................. 0 ............... 0 ........ Paid Subscription Advantages ............................................ 123 Paid Subscription Disadvantages ........................................ 124 Controlled Subscription Advantages .................................. 124 Controlled Subscription Disadvantages ............................. 124 Membership Lists .... o.•o•o•·o······ooooo ... o.. o.. .. o.ooo ... o.. ......... o.. ... o.o•••oo ... o125 Membership List Advantages .............................................. 125 Membership List Disadvantages ......................................... 125 Compiled Lists ............. o•••ooooooo ...................................................... 126 Compiled List Advantages .................................................. 126 Compiled List Disadvantages .............................................. 127 Commercial Databases .................................................. 127 0 .............. Commercial List Advantages .............................................. 127 Commercial Database Disadvantages ................................. 127 House Files ............... o.. ..... o.. ..... o.. .. o.. .......... o.. ................ oo••••o•o•oo•o-·128 Getting a Rental List ............................................................................. 128 How Lists Are Defined and Priced .............................................. 129 Limits to Renting a List ................................................................ 131 Alternative List Access ........... 131 0 ............................................... 00 ............. 7 Market Analysis ..................... oo ................ oo .............................. 133 Use MarketPlace Business to Analyze a Market .................................. 134 Counts ...................................... 134 0 .................. 00 ................................ Standard Analysis . 136 o .................................................................. 0 .... Custom Analysis .......... o.-. ............................................. 138 0 ................. viii Desktop Marketing with the Macintosh Other Analytical Tools .......................................................................... 140 Spreadsheets ................................................................................. 141 Mapping Software ........................................................................ 142 Shannon Analyzes Her Market. ................................................... 143 w 8 Develop a Direct Mail Package ...................................... 151 ~ Elements of Direct Mail Package ......................................................... 152 Envelope .............................................................................. 152 0 Letter .................................................................................... 153 Brochure .............................................................................. 153 Reply Device ........................................................................ 154 Types of Direct Mail Packages .............................................................. 154 Business Letters ............................................................................ 155 Letter Packages ............................................................................ 156 Oversize Packages ........................................................................ 15 7 Dimensional Mailing .................................................................... 158 Self-Mailers ................................................................................... 161 Lettergrams .................................................................................. 163 Catalogs ......................................................................................... 163 How to Create a Direct Mail Package from Your Desktop ................. 164 Create an Envelope ...................................................................... 165 Addressing the Envelope with the Macintosh ................... 166 Postage ................................................................................. 169 Create Your Letter ........................................................................ 171 Make a Macintosh Letter .................................................... 173 To Personalize or Not to Personalize? ............................... 174 Personalization Printing Techniques ................................. 176 Create a Brochure ........................................................................ 17 7 Make a Macintosh Brochure ............................................... 178 Create a Response Device ............................................................ 181 Types of Response Devices ................................................. 183 Carrying Out Your Direct Mail Program ............................................. 185 Graphic Artists ..................................................................... 186 Copywriters .......................................................................... 187 Commercial Printers ........................................................... 187 Envelope Printers ................................................................ 188 Mail House/Lettershop ...................................................... 188 Final Planning ....................................................................................... 189 - ix