promotional strategy at mridaz softech private limited

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OBJECTIVE: The objective of the study is to Study and Analyze the Promotional Strategy of Mridaz Softech Pvt. Ltd.. This main objective is sub divided into following Two sub objectives To Study Promotional Methods in Mridaz To Analyze the Promotional Methods used in Mridaz.

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Promotional Strategy at mridaz softech private limited . mba project report

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Page 1: Promotional Strategy at mridaz softech private limited

OBJECTIVE:

The objective of the study is to Study and Analyze the Promotional Strategy of

Mridaz Softech Pvt. Ltd..

This main objective is sub divided into following Two sub objectives

To Study Promotional Methods in Mridaz

To Analyze the Promotional Methods used in Mridaz.

Page 2: Promotional Strategy at mridaz softech private limited

INTRODUCTION

A successful product or service means nothing unless the benefit of such a service can be

communicated clearly to the target market. An organisations promotional mix strategy can

consist of:

Types of

promotionExplanation

Advertising:Any non personal paid form of communication using any form of

mass media.

Public

relations

Involves developing positive relationships with the organisation

media public. The art of good public relations is not only to obtain

favorable publicity within the media, but it is also involves being able

to handle successfully negative attention.

Sales

promotion:

Commonly used to obtain an increase in sales short term. Could

involve using money off coupons or special offers.

Personal

selling:Selling a product service one to one

Direct Mail Is the sending of publicity material to a named person within an

organisation

Direct mail allows an organisation to use their resources more

effectively by allowing them to send publicity material to a named

person within their target segment. By personalising advertising,

response rates increase thus increasing the chance of improving sales. 

Listed below are links to organisation who's business involves direct

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mail.

Internet

Marketing

Promoting and selling your services online using various forms of

online marketing techniques such as banner advertisments, videos

or socialmedia.

Sponsorship

Where you pay an organisation to use your brand or logo. This

organisation usually has a high profile so that you know that your

brand will be seen by a large audience. Most common use of

sponsorship is with sporting events. The 2012 Olympics being held in

London is being sponsored by a number of organisations such as

Mcdonalds and Coca-Cola as the event will attract a world wide

audience that will run into hundreds of millions.

 Message & Media Strategy -  Click here if you want Edward to read this bit.

 An effective communication campaign should comprise of a well thought out

message strategy. What message are you trying to put accross to your target

audience?. How will you deliver that message? Will it be through the appropiate

use of branding? logos or slogan design?. The message should reinforce the

benefit of the product and should also help the company in developing

the positioning strategy of the product. Companies with effective message

strategies include:

Nike: Just do it.

Coca-Cola: The real thing

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Media strategy refers to how the organisation is going to deliver their message.

What aspects of the promotional mix will the company use to deliver their

message strategy. Where will they promote? Clearly the company must take into

account the readership and general behaviour of their target audience before they

select their media strategy. What newspapers do their target market read? What

TV programmes do they watch? Effective targeting of their media campaign could

save the company on valuable financial resources.

 Promotion through the Product life cycle. -

Click here if you want Edward to read this bit.

As products move through the four stages of the product lifecycle different

promotional strategies should be employed at these stages to ensure the healthy

success and life of the product . Stages and promotion strategies employed.

Introduction

When a product is new the organisations objective will be to inform the target

audience of its entry. Television, radio, magazine, coupons etc may be used to

push the product through the introduction stage of the lifecycle. Push and Pull

Strategies will be used at this crucial stage.

Growth

As the product becomes accepted by the target market the organisation at this

stage of the lifecycle the organisation works on the strategy of further increasing

brand awareness to encourage loyalty.

Maturity

Page 5: Promotional Strategy at mridaz softech private limited

At this stage with increased competition the organisation take persuasive tactics to

encourage the consumers to purchase their product over their rivals. Any

differential advantage will be clearly communicated to the target audience to

inform of their benefit over their competitors.

Decline

As the product reaches the decline stage the organisation will use the strategy of

reminding people of the product to slow the inevitable 

 

 

Internet Promotion

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The development of the world wide web has changed the business environment

forever. Dot com fever has taken the industry and stock markets by storm. The e-

commerce revolution promises to deliver a more efficient way of conducting

business. Shoppers can now purchase from the comfort of their home 24 hours a

day 7 days a week.

Owning a website is a now a crucial ingredient to the marketing mix strategy of an

organisation. Consumers can now obtain instant information on products or

services to aid them in their crucial purchase decision.  Sony Japan took pre-

orders of their popular Playstaion 2 console over the net, which topped a 1 million

after a few days,  European football stars are now issuing press releases over the

web with the sites registered under their own names. Hit rates are phenomenal. 

Marketing theory distinguishes between two main kinds of promotional strategy -

"push" and "pull".

Push

A “push” promotional strategy makes use of a company's sales force and trade

promotion activities tocreate consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalers promote it to

retailers, and the retailers promote it to consumers.

A good example of "push" selling is mobile phones, where the major handset

manufacturers such as Nokia promote their products via retailers such as

Carphone Warehouse. Personal selling and trade promotions are often the most

effective promotional tools for companies such as Nokia - for example offering

subsidies on the handsets to encourage retailers to sell higher volumes.

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A "push" strategy tries to sell directly to the consumer, bypassing other

distribution channels (e.g. selling insurance or holidays directly). With this type of

strategy, consumer promotions and advertising are the most likely promotional

tools.

Pull

A “pull” selling strategy is one that requires high spending on advertising and

consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the

retailers will ask the wholesalers, and the wholesalers will ask the producers.

Page 8: Promotional Strategy at mridaz softech private limited

Company Profile

MRIDAZ SOFTECH PVT. LTD.

Perfection Giving Performance

IN OUR BUSINESS WE RACE AGAINST THE CLOCK BECAUSE WE

SELL TIME 

Mridaz Softech Private Ltd is a leading IT enabled service Provider Company

situated in Delhi. Our mission is to provide cost-effective web and desktop

services, creative and powerful quality flash banner internet advertisement

solution that target your business market. We develop website according to your

business nature, streamline in-house operations, and develop dynamic web

applications.

About Us

Mridaz Softech Private Ltd is a leading IT enabled service Provider Company

situated in Delhi. Our mission is to provide cost-effective web and desktop

services, creative and powerful quality flash banner internet advertisement

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solution that target your business market. We develop website according to your

business nature, streamline in-house operations, and develop dynamic web

applications.

Mridaz Softech has a well equipped team of User Experience Consultants. Our

consultants work and develop new ideas by assuming the customer buying pattern

which in result helps our clients in our higher revenues. The four factors which

help Mridaz in providing unique web ideas whether in terms of well rooted Web

Concepts or innovative Web Solutions are the dedication, motivation, passion and

the aim of doing the best. Mridaz Softech is formed with the inclination and

eagerness of providing the best possible Idea suited to the clients Ideas and

turning the dream into reality..

Our Strengths

One-Stop Web Solutions Company And Full-Cycle Development Services

Whether you need a simple yet appealing website design or complex multi-tier e-

commerce website or custom software development using latest technologies and

industry trends - MSPL has required experience and expertise to do it all. 

We support a full-cycle development process from requirements definition and

specification, architecture design, coding, testing and validation to product

maintenance and support.

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Quality Standard

Quality Assured Service Provider

Having over 4 years of experience in providing internet services and solutions and

having completed various projects in different domains. Quality personnel,

Quality Process and Quality Communications. Each project at MSPL is monitored

for quality at each phase of the development cycle.

We are committed to delivering maximum value to our clients helping them

succeed in a continually changing and demanding biz world. We as company

understand the fact that our success is tied with success of our clients.

Strategy

Our Key Business Principles Are

Understand Clients Needs :-

We carefully study the requirements of each customer to understand the client's

needs and objectives and deliver a reliable solution. We make our clients aware of

all available options and provide them with a competent advice enabling them to

take a well informed business decision.

Partner with Clients :-

We are committed to becoming your long-term, reliable partner. Our priority is to

not only provide you with professional services and solutions but becoming a

company you can depend upon to meet current needs and help you take care of

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your growing business needs in future. 

Earn Clients Trust and Confidence :-

Our aim is to earn customer's trust and confidence through personal attention for

their needs and commitment to long-lasting relationship. We will go an extra mile

to deliver you a effective and reliable solution and help you adopt and succeed in

the internet.

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Our Products

MridazAcademia

MridazAcademia is windows based application software for Schools, Colleges

and Institutions. This provides a best and very flexible solution for day to day

exercise in a school. 

This software includes 'student admission', 'student record maintainer',

'examination and class scheduler', 'result tabulator and publisher', 'employee

record keeper and HR management', 'accounting and assets' as main modules.

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MridazAarogya

MridazAarogya is windows based application software for hospital, Clinics and

nursing homes. This is very easy to use and interactive software to automate the

entire hospital. 

This software includes 'IPD', 'OPD', 'Electronic patient record', 'Pathological

Radiological and other Test Modules', 'Appointments, registration and patient

billing', 'employee record keeper and HR management', 'accounting and assets' as

main modules.

R.B. Memorial Hospital the First and Only Fully Computerized Hospital in North

Bihar is using this Software very successfully.

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MridazAushadh

MridazAushadh is windows based application software for pharmaceuticals Store.

This enables the store keeper to keep records of sales and stocks and helps him to

do other works whichever is required for a pharmaceuticals.

This software includes 'Sales, order and chalan', 'purchase', 'stocks', 'billing and

accountings', as main modules.

MridazAatithya

MridazAatithya is windows based application software for Hotels, Motels, and

Guest House etc. This is very interactive and easy to use software which provide

the peace of mind to the staffs of the hotel for keeping records and maintain the

rooms and guests. 

This software includes 'CheckIN', 'CheckOut', 'Room Service', 'Kitchen', 'Front

Office', 'F & B', 'Sales and Marketing', 'Accounting', 'HR' as main modules.

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MridazDistibutor

MridazDistributor is windows based application software for Distributers of any

Type of Product. This enables the store keeper to keep records of sales and stocks

and helps him to do other works whichever is required for a Distributor. 

This software includes 'Sales, order and chalan', 'purchase', 'stocks', 'billing and

accountings', as main modules.

Mridaz-E-Post

Mridaz-E-Post is a web based portal to keeping records of the couriers in an

organisation where daily couriers are in bulk amount and the record keeping of the

sent and received couriers become a headache like banks, travel agency, Insurance

Company. This reduces the time consumed in keeping record of courier and

budgeting of the courier.

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ICICI Prudential is using this portal very successfully and they are saving time

and money consumed before for couriers. in this portal the budgeting and

courier record keeps the employee informed that the couriers sent and

received by him is known to admin and he avoid to send the personal

couriers from office

MridazAdhyayan

MridazAdhyayan is windows based application software for Library. This

provides a best and very flexible solution for day to day exercise in a Library. 

This software includes 'Book Record', 'Readers and Members', 'Book Transaction',

'Newsletters and Journals', 'employee record keeper and HR management',

'accounting and assets' as main modules.

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Mridaz-E-School

Mridaz-E-School is a web based information system for the school. This enables

an information system for school to publish the schedules of class, Exams,

holidays, invents, vacation home works, results and many more to the web and

also provide an electronic data base to keep the reports and records online.. 

Portal have modules like administrative module, students and parent module,

accounting module, reporting module, library record keeper, notice board,

teachers and academic module, hr module etc which is very carefully designed to

easy usability for any type of user.

.

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Mridaz Pathology

Mridaz Fund Allocator

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Our Services

Application Development

Mridaz provides full service of Web Design, Application Development and

Software solutions helping all and medium sized businesses to launch and prosper

online. The company provides corporate identity design services, affordable

offshore website design and development, e-commerce web design and software

development along with friendly customer service at best rate.

The software enterprise does what it does best - identify market needs and

generate ideas to develop a new product. Our team is capable of understanding

these ideas and translating them into the world-class products that are ready for

market. We also have the expertise to select the appropriate technology for

building robust products by using well-defined methodologies.

Mridaz's web application development division uses the most appropriate

technology to develop your software so that you have less maintenance work and

excellent business results. Mridaz all build and specialize secure e-commerce

applications. We make custom made applications to suit your needs. We also

extend our e-commerce expertise beyond the business-to consumer retail model to

meet the needs of business-to-business transactions and other commerce-related

applications.

Web Development Services

Mridaz Softech shapes your idea into reality with our professional experts and

innovative methodologies. Being a leading brand in this field, Mridaz offers

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optimum service along with online business service. Our team in the field is time

tested. With its unmatched services in various domains; providing quality web

design solutions in India, Mridaz is all set to lend its services for the global

clients.

Our Services are

Web Designing

Web Development

Domain Registration

Search Engine Optimization

Search Engine Submission

Web Promotion 

ASP.NET Hosting

Unix Hosting

E-Commerce Hosting

Windows Hosting

All we know that sole knowledge and rich business understanding along with a

number of methods that go behind the website bringing in reality. Mridaz Softech

with its proven track records and repeat business establishes itself as a leading

Website Design Company in India. We strive to provide the best and keep the

basics simple and crisp.

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Few of Our Work

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Electronics

In the field of electronics we offer these stuffs

The home and office automation and safety installations

The Microcontroller/microprocessor/PLC based industrial automation

system

Computer based system design and development for automation and safety

Programmable logic controllers

Design and develop customized electronic and electrical equipments and

peripherals 

For implementing these to the customer end we have a cadre of well skilled

engineers and technicians. We also provides training to this fields to the students

pursuing their technical degree in India.

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Welcome to Softech Campus

Softech Campus , is the flagship Computer Training program from Mridaz

Softech Pvt. Ltd. a well recognized and service excellence award winner software

company in Delhi and NCR region.

Mridaz is involved in the computer training and education programs since 2002

with the name of Mridaz Education Services. The name of training program was

changed in February 2010 to Softech Campus.

Our courses are very productive accordance to the skilled and trained technical

staffing in many well known software companies. All the courses are designed as

per the requirement that not only the theoretical knowledge is sufficient for the

technical training the real time environmental training is also a main ingredient to

the best trained student who will have a confidence of knowledge and experience

of real world work environment, and will give his best to his employer and grow

with the organization in which he will work with a advantageous skills developed

within him.

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LITERATURE REVIEW

PROMOTION & ADVERTISING STRATEGY

Promotion is one of the key elements of the marketing mix, and deals with any

one or two-way communication that takes place with the consumer. This article

concentrates is a high level introduction to developing a promotional strategy for

your business focusing on advertising and other 'pull' tactics.

DEVELOPING A PROMOTIONAL STRATEGY

Deciding on a marketing communications strategy is one of the primary roles of

the marketing manager and this process involves some key decisions about who

the customer is, how to contact them, and what the message should be. These

questions can be answered using a three stage process, which is equally relevant

for all elements of the marketing mix:

Segmentation

Dividing the marketing into distinct groups

Targeting

Deciding which of these groups to communicate with, and how to talk to them

Positioning

How the product or brand should be perceived by the target groups

Messaging

Delivering a specific message in order to influence the target groups

Page 35: Promotional Strategy at mridaz softech private limited

1. SEGMENTATION

Dividing potential customers into discrete groups is vital if you want to increase

the success rate of any communications message. If you don't know who you are

talking to, it's unlikely you will get much of a response. Who are the potential

customers? How many sub-groups should you divide them into? How do these

groups differ? Hopefully, most of this information will be readily available from

your market research.

Once you have an idea of the customer, you should further drill down to explore

them in more detail.

What are their media consumption habits? What are their expectations and

aspirations? What are their priorities? How much disposable income do they

have? What are their buying habits? Are they likely to have children? How many

holidays do they take a year? How much money do they give to charity? How can

you help them?

This information can be obtained in a variety of ways, from commissioning

aspecialist market research agency, to examining sales patterns or social media

interactions.

Commonly used market research methods include:

Sales analysis and buying patterns

Questionnaires

Desk research

Website statistics, especially social media

Focus groups

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Face-to-face interviews

Specialist market research companies

Once you have built up an accurate picture of your customer, it's time to get their

attention…

2. TARGETING

For the purposes of advertising, targeting is the process of communicating with

the right segment(s) and ensuring the best possible response rate. The methods

you use to target your audience must relate to your marketing plan objectives - are

you trying to generate awareness of a new product, or attract business away from

a competitor?

Related link: Writing a marketing plan

METHODS OF MARKETING COMMUNICATIONS

Advertising is just one element of the marketing communication arsenal, which

can be divided into the following areas:

ADVERTISING – A MASS MEDIA APPROACH TO PROMOTION

Outdoor

Business directories

Magazines / newspapers

TV / cinema

Radio

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Newsagent windows

SALES PROMOTION - PRICE / MONEY RELATED

COMMUNICATIONS

Coupons

Discounts

Competitions

Loyalty incentives

PUBLIC RELATIONS - USING THE PRESS TO YOUR ADVANTAGE

Press launches

PR events

Press releases

PERSONAL SELLING – ONE TO ONE COMMUNICATION WITH A

POTENTIAL BUYER

Salesmen

Experiential marketing

Dealer or showroom sales activities

Exhibitions

Trade shows

DIRECT MARKETING - TAKING THE MESSAGE DIRECTLY TO THE

CONSUMER

Mail order catalogues

Bulk mail

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Personalised letters

Email

Telemarketing

Point of sale displays

Packaging design

DIGITAL MARKETING – NEW CHANNELS ARE EMERGING

CONSTANTLY

Company websites

Social media applications such as Facebook or Twitter

Blogging

Mobile phone promotions using technology such as bluetooth

YouTube

E-commerce

DECIDING WHICH MEDIA CHANNEL TO USE

In nature, evolution occurs most rapidly when competition for resources is

intense. The same process is now occurring with promotional media. All

traditional media channels are now saturated, and competition for consumer

attention is intense. At the same time, the impact of any one medium is becoming

diluted. There are many more TV and radio channels, consumer have the ability to

skip adverts and free information is now much more accessible. As a result,

companies are becoming increasingly innovative in their approach to

communications and a host of new media channels have emerged. As a result,

media choice is becoming a tricky task, which is why detailed segmentation is so

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important - it's no use starting a Twitter campaign if none of your target market

are regular users of the site.

Highly targeted communications often lead to better results. You can usually

expect a response rate of under 1% for a relatively generic mass mailing.

However, personal letters to a handful of your most loyal customers would lead to

a dramatically increased rate of return. When deciding which media to use

consider the reach, frequency, media impact and what you can expect for your

budget but most of all, ensure your target customer will see the message in the

first place.

Media choice is a matter of compromise between volume of people versus the

personalisation of the message.

ENSURING YOUR MESSAGE REFLECTS THE STAGES OF THE

PURCHASING FUNNEL

Once you have made the audience aware of your brand, work doesn't stop there.

The customer needs to be guided through the purchasing process. This means

identifying the key stages in the customer journey and ensuring communications

messages are personalised and relevant.

More information: The purchasing funnel

INTEGRATED MARKETING COMMUNICATIONS

Once you have decided which media channel to concentrate on, the next step is to

ensure an integrated approach is taken. Regardless of whether you are promoting a

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new product or raising awareness, it's important that all ads across all media work

together towards a common goal by using similar messaging and 'look and feel'.

An integrated approach can dramatically increase the effectiveness of any

campaign and will help create your brand image.

GETTING THE BEST RESPONSE

To get the best response from your target market, you need ensuring the message

is relevant and clear – once you've managed to gain the valuable attention of your

customer the last thing you want is for them to be confused about what you're

saying. Determine the objectives of the advert and ensure these aims are addressed

clearly. Think about the next steps you would like the audience to take, whether

this is visiting a website, ringing a number, or being able to recall your brand

when they are next in the shops.

3. POSITIONING

Positioning is the process of developing an image for your company or product.

This can be achieved partially through branding, but it's important to realise that

all elements of the marketing mix combine to provide the full picture. You must

ensure that all areas of your business live up to expectations in order to

successfully position yourself in the way you hope. Positioning also considers the

competition, and you need to explain why you are unique in the marketplace and

better than the other products on the shelf.

BRANDING AND MESSAGING

Branding is a powerful tool for positioning your product. Branding is used on

almost all customer facing elements of a product, from the packaging design to the

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style of writing used on posters. Every communication a customer received adds

up to form a mental picture of your brand and can influence the price they are

willing to pay for your products. This ability to charge more due to the positioning

of your product is known as 'brand equity'. Your branding also needs to consider

your unique selling points (USPs) and ensure these are easily recognised through

your messaging – is your product the best value, longest lasting, sweetest smelling

or fastest?

CORPORATE IDENTITY

A corporate identity is a useful tool to ensure that your branding is used in a

consistent way throughout the company. This detailed document runs through

almost every conceivable customer touch point and provides guidance on the

presentation and style which should be used. This could include use of logos,

colours, tag lines, uniform and the type of coffee to serve guests. A CI guide is

particularly useful if any creative work it outsourced to agencies or freelancers or

if you have many offices worldwide. The most powerful brands can be identified

by many elements of their communications material, not just a by their logo or

slogan and this is due to successful implementation of a recognisable corporate

identity. Recognition is a key part of any purchase decision so a corporate identity

should for a core element of your advertising strategy.

4. DEVELOPMENT OF THE ADVERTISING MESSAGE

Once you have determined the positioning for your brand, it's time to develop the

message in order to influence your target groups. Advertising objectives should be

directly linked to your marketing plan, and tend to fit into the following generic

categories:

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Inform - raising awareness of your brand & products, establishing a

competitive advantage

Persuade - generating an instant response (usually driving sales)

Remind - to maintain interest and enthusiasm for a product or service

It's a documented fact that creative, well branded, distinctive advertising generates

the best results so ensure you use the best possible creative team you can get your

hands on, and give them a detailed brief. Remember that a message will only be

successful if it appeals to the target audience, so constantly refer back to the

customer and tailor the ads to them.

FINAL WORDS

Almost every business in the world will deal in advertising at some point, whether

it is a listing in the Yellow Pages, or a billboard in Times Square. Whatever you're

planning, the strategic thinking behind all advertising is essentially the same – get

to know your audience, target them efficiently and position your brand in the way

that will benefit your business.

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RESEARCH METHODOLOGY

RESEARCH METHODLOGY

Objective of the Research accomplished

Research Design

Data Collection

Questionnaire

Sampling Procedure

The objectives of our research are to:

To identify the market, product and make an in depth comparison of the

same on certain parameters, which will be defined in the due course of the

proposal.

To ascertain potential market and competition.

Ascertain the consumer preferences and satisfaction factor.

To highlight the perception of the consumers for the internet.

Gather useful information and provide a critical analysis through the use

of various techniques.

RESEARCH DESIGN

We carried out the research using a combination of primary and secondary data.

Thus we design our research on a combination basis of

Exploratory Research design

Descriptive Research design

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EXPLORATORY RESEARCH

As I was unaware of the market for Internet, exploratory research helped me to

gather information from the secondary resources. I referred to various magazines,

internet, and industry association reports etc. and was able to gather information

on the scope of e-marketing.

DESCRIPTIVE DESIGN

After conducting the exploratory research, for further concrete details regarding

scope of e-marketing I resorted to the Descriptive Design of market research.

Under this I have analyzed the consumer behavior on different parameters. The

Descriptive design has given me a better insight of scope of e-marketing by

bringing to the fore many minute details regarding the consumer preferences. It

has further helped I in a careful analysis of the secondary data and also refining

the desired data by making the objective clearer.

I conducted the Descriptive Design using the following methods:

QUALITATIVE METHODS:

1. Focus Groups

QUANTITATIVE METHODS:

1. Surveys

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Data Collection

The whole research based on secondary data.

Secondary Data: Secondary data collected through the magazines, newspapers,

shopkeepers’ catalogue and the advertisement.

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DATA ANALYSIS

Mridaz is using Direct Mail Advertisement which is very effective

Direct mail advertising is an extraordinarily powerful marketing tool. No other

media allows you to target your audience so exactly. 

 You can send a large volume of information if your clients need it, or just a

postcard. And you will know almost immediately if your direct mail adverting

program is a success, and what your return on investment is.

 Direct mail is an immediate response media – people either respond immediately,

or they throw away your mailer. We must work to get that immediate response.

 Direct mail advertising also works to build up customer loyalty. It’s how you stay

in contact with your customers, and tell them they are important. 

 Research shows that 68% of customers that don’t return to a company say that the

company never contacted them, was indifferent, or had a poor attitude. Dropping

your customers a letter is the solution.

 Because direct mail advertising has been around a while, you can benefit from

tried and true strategies. Some of these will seem counterintuitive, and some will

seem like aggressive salesmanship. But the only thing that counts with direct mail

advertising is the response rate.

 The good news is that we know what works. The direct mail advertising industry

has been improving its craft for a hundred years. More than any other form of

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marketing, direct mail advertising can be measured and improved upon. You will

know exactly what you get for your investment, every time you mail a letter.

 If you want to use direct mail advertising, start by looking in your own mailbox at

the pieces that come again and again. Why do they work?

 Why does Publishers Clearinghouse mail those bizarre looking envelopes?

Because Publishers Clearinghouse knows exactly, to the penny, what works. And

you can benefit from that experience.

 One more note before we start: Your direct mail advertising has a job to do - it

must sell. If you are going to succeed with direct mail advertising, you are going

to have to be a little aggressive. Think about how many people sort their mail over

the trash container. You have about six seconds to convince them to open your

piece, and not throw it away.

 If they do open it, you have another eleven seconds to convince them to really

read it. Then your mailer must aggressively direct the reader toward responding.

Each and every page must push for a response. Each benefit must demand a

response now. Immediately. Right this minute. How many people will come back

to your piece later? Not enough. It’s now or never.

A Measurable Response

 With direct mail advertising, success depends on these three things [in order of

importance]:

The quality of the mailing list

The attractiveness of the offer

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The copywriting and package design

 All of these factors can be changed. You can modify any part of the package to

try and get a better result. 

 So the real key to success with direct mail advertising is testing. Test each part of

your mailer until you find the best possible combination that achieves the highest

profit for your company. And then you test some more.

 In direct mail advertising, the ‘Control’ mail piece is the version of the mailer that

got the highest response rate at the highest profit per order in previous mailings.

You count how well you did with your mailing, and then try to improve upon the

response/profit rate of your control piece.

 Unless you are very lucky, you will need to go through several generations of

mailings before you achieve the best return rates. Certainly you may be profitable

with your very first mailing, but with direct mail advertising you can always do

better.  

 For example, it was commonly believed that sophisticated clients would never

respond to “junk looking mail” to purchase financial services. No one even tested

the idea. Well, they were wrong. By creating more visual and sales oriented

material, the response went way up. You don’t know until you test.

Component Parts

 Direct mail advertising can be a post card, or it can be a 200-page catalog. Either

way, direct mail advertising has some basic components. 

1. The response device

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2. The letter

3. The envelope

4. The brochure

 A mailer will often also contain some or all of the following components:

1. A Lift letter – a brief second letter that tries again to close the sale.

2. Facilitators – guarantees, bill me later, toll-free phone number

3. Incentives – free gifts [yours to keep even if you return the product]

4. Choices – color, model, quantity, accessories, variations

5. Examples, case studies, testimonials, statistics

6. Involvement devices – peel-off stickers, fill-out cards, fold outs

 Understanding the various options and direct mail advertising component parts

will lead you to success with your direct mail advertising.

 The Response Device

 The response device is a return card, a coupon, a fax-back form, a phone number,

an e-mail, etc. It is probably the most important part of your mailer, and you

probably want to start you direct mail advertising piece by thinking about the

response device.

 The job of the response device is to transition the reader from interest to

acceptance and response. Think of it as the sales closer. It has a big job to do. It

must get attention, sum up the offer in an exciting way, and close the sale or get

the desired response.

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 The design of your response piece will most likely have the biggest impact on

your direct mail advertising results. It has to sell, and sell aggressively. It has to

scream for attention. It has to command that the reader act now. It must be

aggressive.

 So here are the general rules for the response device in direct mail advertising:  

 1. Test different response devices. Try three different styles, and then try more

against the winner. You will never know how good your direct mail advertising

response can be until you test.

 2. Do not hide your response device – make it stand out and emphasize it. Point at

it.

 3. Urge people to respond now. Command them to act immediately.

 4. Clearly identify the response device. It can be a reservation certificate, a no-

risk trial option, a request card, an RSVP, a coupon, etc. Just mark it clearly.

 5. Use “rush”, “free”, “limited time offer,” type wording.

 6. Use strong visuals and excitement unless the mailing is very serious [like fund

raising.] Red is a good color for the response device because it gets the adrenalin

going.

 7. Make it easy to respond. It should be clear and very simple. Leave ample space

for writing, and use heavy, uncoated stock paper. Tell the people exactly what to

do. Preferably already have their name and address printed, so that they just have

to sign and return your card.

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 8. Use business reply mail so that the postage is prepaid on the reply envelope or

card. You pay per returned piece. Do not make them look for a stamp.

 9. When offering different options, make the one you want them to choose larger.

 10. Use YES acceptance statements. “YES, please send me…”

 11. Use check boxes for options or yes statements.  Use visuals to point to the

boxes.

 12. Include options like “keep me on the mailing list” or “send more

information.” People who respond are good potential future customers.

 13. Keep legal disclaimer copy away from the benefit or response device copy.

 Responding to direct mail advertising is normally an impulse. The prospect

responds immediately, or not at all. Everything must move the prospect toward a

decision to respond right now, and a good response device is the key to getting

them to act.

 A small reality check: The typical response for direct mail advertising is between

½% - 3%. If you are thinking you can get a huge response – think again. 3% is an

extraordinarily good response in direct mail advertising, unless you are mailing to

your own customers. When you calculate your budget, keep this in mind.

 The Letter Part One

 The real advantage of direct mail advertising is that you can offer a large amount

of sales information to your prospects. You can give detailed benefit descriptions,

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and list all of the reasons why your products are great. The letter is the place to do

it.

 Having said that, understand that most people will not initially read your letter.

People will scan the letter. You have about eleven seconds. They will first read

their own name, then the headline, the subheads, any highlighted copy,

handwritten notes, captions, your signature, the post script, and maybe the first 50

words.

 Your prospect will then either respond, read the whole letter, or discard the letter.

 In direct mail advertising, your letter must:

SELL.

Highlight your biggest benefits with the parts of the letter that they will scan.

Be as easy to read and as exciting as possible.

 Here are some general structural rules for creating your direct mail advertising

letter:

 1. Test your letter. Try three different versions, and then test against the winner.

Testing is the key to your direct mail advertising success.

 2. Don’t be afraid of long copy. If they are interested, and your story is good, they

will read it. Letters are commonly 3-4 pages long.

 3. Use short sentences and paragraphs, and vary the length of your sentences.

Keep your first sentence as short as you can.

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 4. Use common, everyday language, even if you are writing to a highly educated

or technical audience. This is not the place to show off your vocabulary. 

 5. Use multiple headlines and subheads.

 6. Use captions under any photos or illustrations.

 7. Use indents and indented copy blocks.

 8. Use bullet lists, underlining, capitalization, italics, etc. for emphasis.

 9. Highlighting may distract the reader and hurt your response.

 10. Use rubber stamp impressions for attention.

 11. Only emphasize the key benefits that tell your story. Don’t overdo it.

 12. Consider ‘handwritten’ messages in the margins. These will be read.

 13. Page breaks should occur in the middle of a good sentence.

 14. Business to business letters should use black ink on white #60 paper.

 15. Everyone will read the postscript. It should add urgency, encourage action,

focus on or repeat a key benefit, add a new benefit, or give an assurance [a

guarantee]. And use only one p.s. in your direct mail advertising.

 16. Overlines and Johnson Boxes at the beginning of a letter will get read. [See

more on these below.]

 17. The president or the CEO should normally sign the letter. Sign your name

clearly because people want to be able to read your signature. Also print out the

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name and title. Any ‘handwritten’ notes in the letter should match the writing of

the signer.

 The Letter Part Two

 Your reader knows that your direct mail advertising letter is trying to sell them

something. By reading your letter, they are consenting to review your sales

material, and to consider your offer. You must sell them on your idea just like

they walked into your showroom or your office. They expect you to give them all

of the relevant sales information.

 You must be very excited and enthusiastic. If your subject is serious, you must be

serious and graphic. If you are trying to instill fear, you must go all the way.

 If you are not excited, how do you expect them to be? Don’t let image get in your

way. If you want to succeed with direct mail advertising, use every method there

is to succeed. You must sell your reader on your objective, or you fail.

 OK. It’s your words that sell in your direct mail advertising. Some words are

better than others. Some writers are better than others.

 The ability to write a great business letter, report, news story, e-mail, or

book does not mean a person can write a great sales letter. The only thing that

counts in direct mail advertising is the response rate to that letter. Don’t be

overconfident here. Professional copywriters get paid for a reason.

 Professional copywriters spend years developing their craft. If you intend to use

direct mail advertising, you should try and have a professional review everything

you write. Our chapter on Copywriting reviews important writing tips, but it is not

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comprehensive. If you do nothing else, please remember to focus on the prospect

and the benefits they get, and stay in character.

 The truth is that your new prospect does not really care about you or your

company. They are concerned about themselves and how you can improve their

lives. They are going to make an emotional, impulsive decision to respond. After

they call you, you can convince them of your abilities. But first, your letter must

convince them to make contact.

 Direct Mail Advertising Letter Writing Tips:

 1. You have only a few seconds, and then they throw away your letter. Get to the

point immediately.

 2. Don’t be wishy-washy. Your letter should have one coherent subject. Stay on

subject, stay in character.

 3. Be absolutely clear with your copy – with all of your copy. Don’t get fancy or

complicated with your message. Use common, everyday language. Do not use

technical language, even for technical people.

 4. You must build rapport and trust with the reader. Do not be superior or

condescending. Be their friend. [And we are sorry if our style is a little blunt

sometimes, but honesty is the only policy in advertising].

 5. Don’t make extravagant or unbelievable claims with your direct mail

advertising – even if they are true.

 6. Make a list of all the features of your products or services. Now pretend you

are the customer, and ask the question “What does this do for me” for each

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feature. The answer is the BENEFIT to the customer. People buy benefits, not

features. “Saves Three hours” is a feature. “Three hours to spend with your

children” is a benefit.

 7. The biggest benefit you offer that makes you different from your competition

is your unique selling position [USP]. It is critical that you determine what you

USP is, because that is your lead benefit. It makes you special.

 8. Put your USP in your headline or first paragraph. Put your biggest benefit right

up front, because your reader will not wait.

 9. Talk about them, not about you. Try this. Count how many times you write

“you” versus how many times you reference your own company [us]. Now, take

out all of the references to your own company, and replace them with references

to your customer.

 10. The opening is the most important part of your direct mail advertising letter.

Open hard and fast and don’t let go. Stay in character, and stay on message. Don’t

flip flop around. Decide who you want to be, and be that person throughout the

entire letter.

 11. Be aggressive with descriptive writing. Be graphic. Be visual.

 12. Don’t forget that you have to sell. List benefits, and ask for the sale. Repeat

the process throughout the letter. Look at other direct mail letters. List benefits,

and ask for the sale. Repeat. List benefits, and ask for the sale. Now. Immediately.

 13. You must tell them what to do, how to do it, when to do it, and make the

process as easy as possible. You must tell them what you want them to do.

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 14. You don’t know which part of your package or letter will be read first. Thus

every part must feature benefits. A direct mail advertising piece starts out fast, and

continues all the way through on every part of the mailer.

 15. Use words that sell in your direct mail advertising letter. If you really want to

write this yourself, go to the library, and get books on sales copywriting and direct

mail. Find words and phrases that have a proven track record, and use them.

 16. Have other people read over your communications. If they are confused or

lost, do not try to argue with or convince them. Listen to them carefully. Rewrite

your letter so that the common person gets it. This is the only way to get effective

direct mail advertising.  

 17. Don’t insult your loyal customers by offering better deals to newcomers.

 18. Don’t say something is very important if it is not.

 The Envelope

 Tests show that you have about six seconds to convince your prospect to open

your direct mail advertising letter. There are many different strategies to insure

that your letter first gets past any gatekeepers, and then gets opened. Let’s review

a few of these. 

 1. The first thing you need to do is test. Try your envelope with copy and without.

Try it in color and plain. Try it with and without graphics. You don’t know how or

if the envelope copy will impact on the return rate unless you test it.

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 2. Don’t discount the importance of the envelope in your direct mail advertising.

The best letter, brochure, and response device in the world won’t help you if the

prospect doesn't open the letter.

 3. Remember, it’s response that counts. Don’t let your image get in the way of a

colorful, interesting envelope that gets opened.

 4. The job of the envelope is to get the letter opened. That’s it. That’s all. Don’t

try to do anything else with the envelope. You will just increase skepticism and

devalue the offer contained in the letter. Your offer belongs in the letter - not on

the envelope.

 5. If you are doing business-to-business direct mail advertising, a plain white #10

envelope addressed to the recipient will probably get past the secretary and

delivered to the recipient.

 6. If the recipient knows you, don’t scream, “Open me” on the outside of the

envelope. This leads to skepticism in one-on-one communications.

 7. If you use copy on the envelope, think of it as a teaser headline. You need to

capture the concept while creating curiosity and excitement. Ask a provocative

question or promise a benefit. You don’t want to give away the whole show, but

you do need to create interest.

 8. Asking a question is safer than making a statement on the envelope if you

don’t know the recipients state of mind. A question will more likely get the reader

involved in your direct mail advertising piece.

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 9. Be absolutely clear with your direct mail advertising envelope copy. Don’t get

fancy or complicated with your message. Think common, everyday language.

 10. Don’t over-promise on the envelope.

 11. If you put a free gift inside your mailer, don’t just write “Free Gift Inside” on

the envelope. A peek through window that actually shows part of the free gift is

more effective.

 12. Don’t ask for a commitment on the envelope. That’s why you have a letter.

 13. The size of the envelope and the type of paper you use convey a message.

Who do you want to be? Stay in character, and that includes the type of envelope

you use in your direct mail advertising.

 14. Don’t let your designer dictate any part of your direct mail advertising piece.

A prettier envelope does not automatically increase your response, and it can

definitely hurt response. You have to measure. Let your accountant tell you what’s

working.

 15. An odd size envelope will jump out at people. But make sure that your

fulfillment house can handle it, and make sure that the addresses properly show

through the window. Also double check with the post office about the cost of

mailing odd shaped pieces.

 16. The post office will advise you on envelope rules. Pay close attention. They

offer free booklets and classes to help you.

 17. Use words that sell to encourage people to open the envelope. “Free” is

probably the best, but new, open now, exclusively for, proven success, secrets of,

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how to, discover, limited offer, easy, confidential, etc. etc. etc. all can and do

work. Or you can start your story on the envelope with one or two great lines, and

then write, “continued inside…” The key to success with direct mail advertising is

to test, test, test.

 The Brochure

 How to create brochures is covered in detail in Effective Brochure Design. There

are no special rules that apply to your brochure for direct mail advertising, except

one. Test your mailer both with and without your brochure. Perhaps you can test a

mailer that offers a free brochure upon request – then you know you have a hot

prospect.

 You probably don’t want to test different brochures in your mailings because of

cost. Concentrate on testing your letter, your envelope, and your response devise.

[Don’t forget that the most important thing to test is your mailing list.]

Lift Letters

 A lift letter is a second, one page letter in your direct mail advertising that is used

to increase response. It highlights the key benefits of the offer, and usually comes

from a different person in the organization. 

 You may have seen lift letters that start out “I don’t understand why you have not

yet taken advantage of this special offer…” It uses a different method of going

after the customer. Often this is effective because different people respond to

different types of stimuli.

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 Think of the lift letter as a testimonial. It should be short, stress the main benefits

again, come from a different person, look different [different layout and font], and

just be signed by the sender. No p.s. here – the entire letter is a postscript. And the

only way to know if a lift letter will work for you is to ______? [Test it].

 Overlines & Johnson Boxes

 An overline is a sentence over the top of your direct mail advertising letter. It

appears before your introduction. A Johnson Box is a box enclosing text that

appears in the same location – at the top of the letter. It commonly features the

main benefit or your unique selling position.

 A handwritten overline is probably the most read part of a letter. It is the one line

everyone will read. So it should be the best line in the letter. It is your headline, so

it better be good. Please read Copywriting for more about headlines.

 A Johnson Box should be treated just like an overline. It is your headline. It must

grab your readers, and entice them to keep reading.

 Overlines and Johnson Boxes are great for a blatant sales piece. But they may not

be appropriate for more conservative business-to-business letters.

 Facilitators

 Facilitators make it easier for customers to make a purchase decision. Your

“100% Guarantee”, the “bill me later”, your toll-free phone number, and any other

device you use to make the decision to buy easier is a facilitator. Use every one

you can in your direct mail advertising. Always make it as easy as possible for

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your customer to come to a purchase decision and to make the response you want.

[For example, never make them go looking for a stamp.]

Incentives

 Incentives are the extras you throw in to make the sale. The “free gift, yours to

keep even if you return the product” is an example. Time limit discounts and

special membership benefits are also examples of incentives.

Choices

 People love choices, and choices get the reader involved in your piece. If they can

pick color, model, accessories or variations, they will be happy. However, there is

a tradeoff. Each choice you give does increase the difficulty of ordering.

 If you add choices to your direct mail advertising, you would do well to observe

people as they try to read and comprehend your piece. What is crystal clear to you

may be very confusing to your customer, so be careful. The better you know and

target your audience, the better you will do. And of course, test.

 Examples

 Examples in direct mail advertising include case studies, testimonials, surveys,

official third party endorsements, and statistics. 60% of consumers believe ads

that offer a money-back guarantee. 57% believe ads that carry an official third

party endorsement. 46% of consumers believe claims based on survey results.

People believe examples, so you want to use them if you can in your direct mail

advertising.

 

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Involvement Devices

 If at all possible, you want to involve people in your mailer. You want them to

interact with your materials. This is one reason why busy layouts work in direct

mail advertising. Everywhere they look there is something new and exciting. Peel-

off stickers, surveys, fill-out cards, fold outs, and brochures are examples of

involvement devices.

 Testing your Direct Mailer

 Testing is very straightforward, but there are rules to follow. First, you want to

only modify one aspect of your mailer at a time. Send the exact same mailer

package with three different letters, and measure which one gets the best

response. 

 If you changed multiple parts of your direct mail advertising, like the letter and

the mailing list, you would not be able to tell which change made the difference.

You must make and test changes one at a time.

 Remember that profit is the ultimate goal. You might double the price of your

products, and have response drop by 80%. But what happened to your profit? If

your profit goes up, then you’re on the right track.

 You want to test your mailing list, your offer, your response device, your letter,

and your envelope, probably in that order. If you are only doing a small mailing,

try two or three different letters. You may be very surprised at the difference.

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 Over time, even your best direct mail advertising package will wear out. Don’t

get complacent. You should always test your control piece to see if you can beat

it.

 To know how one piece works against another, code your response device. This

is as simple as printing a different code marking on each response card so that you

can tell which direct mail advertising offer generated the response.

 Finally, you need to think about your sample size. With direct mail advertising,

you really need to send a few thousand mailers to get an idea of how a change

impacts on your return rate. If your mailing is not that big, your sample size still

needs to be at least 500. However, your results will be questionable. So don’t bet

the house on the results from a sampling of just 500 mail pieces.

Your Mailing List

 The best mail list you will ever have is the one with your past customers on it.

Always advertise to your existing customers first.

 Mailing list companies can provide you lists that are very specific, and very

targeted. The key is to know who your best prospects are. The more specific you

can be with your mailing, the better you will do. Define your customer well, and

you will be happy with the results. Read Market Targeting Strategy for more.

 Remember, the most important item for success with your direct mail advertising

is the quality of your mailing list. We can’t stress this enough. Carefully target

your customers, and then test one mail list against another. It’s the only way.

 

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Postcards And Self-Mailers

 All of the rules for direct mail advertising apply to post cards and self-mailers.

You need to get to the point, focus on the benefits, stay in character, make an

attractive offer, make it easy-to-response, minimize the risk, and tell the reader

what to do. Featuring coupons is probably the best and most effective way to use

postcards in direct mail advertising.

 Increasing Response

 Here is a list of ideas on how to increase the response to your direct mail

advertising. But the subject is so big that this is only a starting point. If you are

serious about using direct mail advertising, consider using a marketing consultant

to assist you. It’s absolutely worth it. Please contact Professional Advertising for

these services or more information. 

 1. The post office will advise you on envelope mailing rules. Pay close attention.

They offer free booklets and classes to help you.

 2. A good mailing list management computer program will presort  and print bar-

coded addresses for you. It is absolutely, positively a requirement if you are doing

your own direct mail advertising.

 3. If you use a fulfillment house to mail your package, make sure their machines

can handle your specifications before you print your materials. You do not want to

stuff and label everything by hand. 

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 4. Collect your own [and other people's] direct mail advertising to see what

works. Look for mail in the same category as yours; that is mail that is selling

similar products to like clients.

 5. Do not be afraid to ask for the sale. Ask for the sale or desired response

directly, and urge people to respond immediately.

 6. Keep using the same mailing list until the response rate falls below the profit

level.

 7. Know the lifetime value of a customer, and calculate your marketing costs

accordingly. In other words, if the customer is highly valuable, spend more money

going after them with your direct mail advertising.

 8. Don’t hide the fact that your mailer is an advertisement. The reader knows

what it is, and they are giving you their attention. When they open direct mail

advertising, they are agreeing to read sales information.

 9. Give them information fast. There is no such thing as keeping a reader in

suspense in direct mail advertising.

 10. What level of emotional appeal does the reader need? What does the product

or service demand? Do you need a full color brochure? Be as verbally and visually

graphic as you need to be to get their adrenalin going. 

 11. Put a second response device in the brochure. Ask the reader to “tell a friend”

and pass along the brochure.

 12. Put a second response device in the mailer. It can be used as a lift letter.

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 13. A brochure must pay its own way in your direct mail advertising. Test to

measure your return when you use a brochure.

 14. Try to support any claims with research data and statistics. Third party

endorsements are the best.

 15. Use testimonials. If possible include contact information for the person

making the recommendation.

 16. Involvement devices work. Try to get your reader physically involved with

your mailer. Peel-off stickers, pages that unfold, or a survey or quiz can really

work to increase response.

 17. Be careful giving away free things, like a free copy of a report or a free

magazine. You may get a large response, but then not be able to convert the leads

into customers. Payments may be very slow for “bill me later”, or prove

impossible to collect. You may get a lower re-subscription rate from the clients

that do pay. A more formal mailer with no free offer may work better in the end.

 18. People commonly sort their mail over a wastebasket. Envelopes are often kept

while postcards are thrown away.

 19. Multi-step mailing programs work for many offers. Advertising is about

staying in front of your customers long-term, and it applies to direct mail

advertising. Often, the same offer to the same group will pull progressively better

over time because your customers get to know and trust you.

 20. For pricing, uneven dollar and cent amounts are perceived as a better value

than round figures.

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 21. Remember that your mailer will be read at random. You can’t control what

will be read first, so every part of your direct mail advertising piece must sell.

 22. You are sending mail to people who didn’t ask for it. As such, you need to be

intrusive. You need to entice them to spend time reading your piece immediately.

The benefits you offer need to be immediate and highly beneficial to the reader.

And your message must be complete.

 23.  People will stop reading if they think your offer may be too expensive. Deal

with value and price as soon as you can in your letter. Read Pricing Strategy in

Advertising for more information.

 Ask For Help

 As always, we strongly recommend that you hire a professional designer, and ask

a marketing professional to help plan and review the work. It’s a cheap investment

for something you are going to mail out to the whole world, and reprint endlessly.

 Direct mail advertising is a big subject, and it’s easy to go wrong. A second

opinion from a professional is an investment worth making.

Please contact Professional Advertising for these services and additional

assistance.

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RESULTS & FINDINGS

Research shows that well-designed, well-written direct mail sent to the right

people gets a one-percent response. That one-percent response can be more than

sufficient to bring in enough participants and donors to your initiative to make it

effective and ongoing. A one-percent response is higher than the response

received by any other media. Direct mail is a strategy that is here to stay and one

that organizations can and should use effectively.

Direct mail is not like advertising sent to a wide population, because it targets

individuals to obtain information or donations of time and money. Direct mail is

part of "social marketing" -- the application of commercial marketing techniques

to programs designed to influence people's behavior and improve the world. In

contrast to the way products are sometimes sold, social marketing doesn't involve

manipulation or high-pressure selling. It doesn't compromise the ethics, services,

or budget of your organization.

By following the steps and pointers discussed in this section (mailing, strategy,

format, budget planning, follow-up, testing, and tracking), a direct mail program

can significantly help build relationships -- resulting in ongoing financial support

and long-term change in your community and our world.

To ensure your direct mail program is achieving your objectives, you must track

the results. This means tabulating how many responses you get and determining

whether different classes of targets behave differently.

Track whether your target recipients donate or not, how much they donate, and

how much you have to spend to get them to donate. Don't forget to follow up

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quickly. Timing may affect response, so roll out the package quickly after the

results are analyzed. If you don't understand how to do testing and tracking, get a

professional to help you do it. It could be well worth the money, and help you

avoid disaster.

Many of us get direct mail every week at home -- translation: "junk" mail. If

someone asked, "What do you do with your junk mail?" -- many would reply,

"Oh, I don't even look at it. I just throw it away." But research shows that more

people than you think look at "good" junk mail and respond to it. Well-designed

and well -written direct mail sent to the right people gets a one-percent response.

Even though this sounds very low, it's far higher than any other way of reaching

large numbers of people who don't know about your group or initiative. That one-

percent response can bring enough participants and donors to your initiative to

make if effective and ensure that it is ongoing.