ship shapes

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Integrated Marketingwith

SHIPSHAPES

Table of Contents

What Is Integrated Marketing? 2

Direct Mail in Integrated Marketing Campaigns 4

Enter ShipShapes: A Novel Twist on a Tired Medium 5

ShipShapes Are Delivered Faster than 1st Class Mail 5

ShipShapes: The First Four Years 6

Examples o Integrated Marketing with ShipShapes 8

Krispy Kreme 8Toyota Camry 10

A Study o ShipShapes in Integrated Marketing 12

Conclusion 17

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Integrated Marketingwith

SHIPSHAPES

What Is Integrated Marketing?Integrated marketing communication is oten dened as a holistic approach topromote buying and selling in todays economy. The concept includes both onlineand ofine marketing channels. Online marketing channels include any e-marketingcampaigns or programs, rom search engine optimization (SEO), pay-per-click,aliate, email, banner to latest web related channels or webinar, blog, RSS,podcast, and Internet TV. Ofine marketing channels are traditional print(newspaper, magazine),broadcast (radio and television) direct mail, publicrelations, in-bound and out-bound telemarketing, billboards and outdoor signage

and o course, personal selling.

Many ail in their quest or integration because no one has been assigned or hastaken the lead to set the overarching strategy and to make sure that all the programsare aligned and the elements are integrated. A truly eective program can only beginwhen all the diverse elements are united only teams win.

Creating a team approach is no easy task. Success metrics or a televisioncommercial are dierent than or a direct mail campaign. Interactive channels come

with lots o click data that just dont exist with radio or print campaigns.

Unortunately, advertisers have no shortage o legitimate reasons or separatingtraditional marketing campaigns rom electronic marketing eorts. Dierent expertiseis developed and applied in traditional marketing communication than is developedand applied in electronic or interactive communication. It makes sense, but only untilwe realize that both communication programs are oten being developed anddelivered to the same people. The person who sees a television commercial is also

the same person who goes on-line or surs the Web.

In spite o this organizational and cultural schism, advertisers are under increas-ing pressure to look or opportunities to leverage resources across channels. I youhave already invested in developing a promotion (i.e., giveaways, ulllment), youshould consider all viable ways across channels -- or example, driving trac romdirect mail piece to a web page or to an inbound call center to market thepromotion eectively. Integrated marketing campaigns ocus on consistent andrelevant communications with customers across multiple touchpoints, i.e., anyintersection between you and your audience. Whether it is a piece o mail, an ad,

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Web site, sales person, store or oce, touchpoints are important because customersorm perceptions o organizations and brand based on their cumulative experiences.

More marketers are looking at integrated marketing campaigns as the silver bulletor driving business. I used eectively, integrated marketing campaigns will increaseresponse rates, market awareness and revenue, and maximize prots. To takeadvantage o these opportunities, a new approach to the development o marketingcommunication messages and incentives is needed, according to one o theoremost authorities on integrated marketing, Proessor Don E. Schultz, Ph. D.,Proessor (Emeritus-in-Service) o Integrated Marketing Communication,Northwestern University. Proessor Schultz is author oThe New Marketing Para-digm: Integrated MarketingCommunications, McGraw Hill, 1994.

In his article,Marketing Communication Planning in a Converging Marketplace,(Journal o Marketing Communications, 2001), Proessor Schultz observed that,Historically, marketing communication planning has started with the developmento the message, creative strategy or brand proposition. It has traditionally beenassumed that the message or incentive was the most important area o a marketingcommunication program. But, that concept was developed or the traditional, masscommunication, interrupt the customer media system. In the convergingmarketplace, a dierent planning model is needed as well.

The new approach starts with how or through what system the message or incen-tive is or can be delivered. In other words, it starts rst with what medium or deliverysystem should be used and then progresses to what creative or message needs to be

developed. Media rst, creative second.

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Direct Mail in Integrated Marketing Campaigns

A marketing campaign that integrates the web with direct mail as well as other channels might looksomething like this:

The oremost key to success with such an integrated marketing program is to startwith a printed direct mail piece that will capture the attention o the audience. Thenext critical burden o any direct mail campaign is to present an oer that engages

the audience and drives the recipient to the next step. Perhaps its to direct thereader to place a phone call or go to a web site or take a coupon or git certicate toa retail location, or simply to be receptive to a ollow-up phone call.

That rst hurdle, getting noticed amid the pile o mail that clutters mailboxesevery day, is a tall order. Businesses send out millions o pieces o mail every day,hoping their mailers will increase business and drive up prots. Oten, the response isdisappointing, leaving many businesses clueless about how to improve their chanceso getting noticed.

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Enter ShipShapes: A Novel Twist on a Tired Medium

ShipShapes has helped to overcome that threshold challenge: gaining the attentiono the audience. Several years ago, the company petitioned the U.S. Postal Service

to establish a new class o mail specically to allow advertisers to send unusuallyshaped pieces through the mail without an envelope. On August 10, 2003, the USPScreated Customized Market Mail (CMM), the rst new class o mail since ExpressMail was created in 1977.

With ShipShapes, marketers can deliver realistic samples o their products/servicesinto the hands o their target audience in any shape imaginable. ShipShapes hascreated mailings in the images o everything rom motorcycles and champagnebottles to stop signs, dartboards, race cars and puppies.

ShipShapes Are Delivered Faster than 1st Class Mail

ShipShapes are the result o a collaborative eort between the company and the PostOce, which announced the launching o CMM with the press release:

Unleash your creativity and stand out in the mailbox

The United States Postal Service is changing the way businesses do mail.Customized MarketMail service is a new Standard Mail option that allows youto test your creativity and send a truly dimensional mail piece o any shape or

design. So, you can empower your marketing message and reach your customerswith unique ormats that demonstrate your product and encourage responses.

A key aspect o the current USPS process or handling ShipShapes is the provi-sion that they be drop-shipped to the appropriate Delivery Destination Unit (DDU),or Post Oce, o which there are more than 35,000 throughout the United States.While this adds to the postage cost o a ShipShapes mailing, it also ensures that thepieces will be delivered within 2 to 4 days. This eature urther sets ShipShapes apartrom conventional direct mail, which may take two to ve weeks to complete deliv-ery. With ShipShapes, there is no such lag time; instead, a ShipShapes mailing canbe closely timed to precede or ollow other channels o an integrated marketing cam-paign.

I an advertiser manages to succeed in crating the right look or the right oer goingto the right list, why tolerate erratic delivery with a three-week leeway and intention-ally make the piece look like a lot o the other mail in the same mailbox? As an ir-regularly shaped, non-paper item, ShipShapes commands attention and is impossible

to ignore or handle as just another piece o junk mail.

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ShipShapes: The First Four Years

In the our short years since we introduced the rst ShipShapes, there has been agrowing buzz about its amazing impact and results. ShipShapes have done as muchor more than any magic bullet advertisers have long prayed or.

Yet, ShipShapes havent spread like wildre, as you might expect rom a magic bul-let, or two reasons. First, were still educating the marketplace, because most adver-

tisers still dont know about it. And many advertisers who learn about ShipShapesdont look past its cost and mistakenly dismiss it as expensive junk mail. They see

that ShipShapes and junk mail have the point o contact with the market the mail-box, and conclude that it oers nothing dierent.

What gets lost is that ShipShapes rises above the clutter in the mailbox because wedesigned it that way to be king o the hill o mail. Advertisers who have tried Ship-Shapes routinely report that it commands attention on a level comparable to a per-sonal conversation. And it engages the audience like no direct mail ever has. At two

to our times the cost o conventional direct mail, ShipShapes typically delivers veto ty times greater response, revenue and ROI.

Stiil, many direct marketers dont get the math with ShipShapes. Its easy to ndmany direct marketers who still say, Screw the ROI, and turn cost minimizationinto the number one goal. They generally begin with a search or a dirt-cheap directmail ormat. Doesnt matter who theyre targeting or what theyre selling. Cheaper isbetter.

Theres just one hitch. Theres never been a CEO who was overjoyed to hear, Thatmailing bombed, but were real proud o the CPM.

The toughest job you ace as a direct marketer is reaching your prospect with yourmessage. I youre a B2B marketer, the task o reaching top-level decision-makers iseven harder because they pay people mailroom sta and executive secretaries toscreen their mail or your mail depending on how you look at it. So unless yourdirect mail lead generation letter or postcard or sel-mailer stands out rom the resto the days mail, it wont reach the hands o your potential client or customer.

ShipShapes is changing all that. Beore ShipShapes, no one ever heard o a recipientcalling the advertiser and asking or 500 more copies the piece they just received,because so many people wanted one or themselves. But that happened to a Ship-Shapes advertiser in late 2007. ShipShapes has more and more advertisers realizing

that its not junk mail i they dont throw it out, and theyre beginning to explore theimplications and extent o ShipShapes extraordinary impact and how to capitalize on

the added value o its impact on integrated marketing campaigns.

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The second actor that has limited widespread adoption o ShipShapes is thatplanning and managing an integrated campaign takes more time than just cashingin on ShipShapes higher ront end response rate. ShipShapes is ast becoming aavorite tool or advertisers who are content to take the money and run.

ShipShapes is a very orgiving media, but its not ail sae. Advertisers shouldntuse ShipShapes as a cool but expensive version o direct mail and rely on getting ahigher direct response rate on the ront end that will justiy the higher cost. The mostsuccessul advertisers use ShipShapes because it makes a greater impact than anydirect mail ever has.

ShipShapes impact is much more like a personal contact than a piece o junk mail,and these advertisers take advantage o ShipShapes unprecedented power to cap-

ture attention and engage the audience. A ew visionary advertisers have plannedand designed a ShipShapes campaign that not only generates a huge direct responserate on the ront end, but also delivers a huge lit in ollow up phases o an integratedmarketing strategy.

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Examples of Integrated Marketing with ShipShapes

Krispy Kreme

The rst advertiser to test the market with ShipShpaes was Great Circle Fam-ily Foods, a Krispy Kreme ranchiser in Los Angeles. Great Circle targeted 10,000Orange County residents living near three store locations, with a high-gloss,nonrectangular mail piece employing an image o an open box o Krispy Kremedoughnuts (see ront and back in Figures 1 and 2). The piece presented a simple,but eective oer: Buy a dozen doughnuts and get another dozen or a dime. Eachmail piece included a special code that a Krispy Kreme representative keyed in to itspoint-o-purchase system to redeem the oer or the customer.

The campaign etched an 8.5 percent response rate rom consumers, ar greater thanthe 0.5% to 1% response that the company was struggling to get rom direct mail.Moreover, the campaign identied the customers so the company could better targetollow-up promotional eorts. These were people who t a demographic prole thatwe use: mothers and amilies who ultimately live within a three- to ve-mile radiuso each store location, explained Lisa Ducore, vice president o marketing or GreatCircle Family Foods. This was an extremely successul campaign.

Krispy Kreme Front

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Krispy Kreme Back

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Toyota Camry Front

Toyota Camry

A dealership group sent a ShipShapes ClearCard piece to 125,118 households.The ad (see ront and back in Figures 3 and 4) was directed toward previous orcurrent owners o the make and model vehicle being promoted, a Toyota Camry. Thepiece leveraged the national advertising by Toyota corporate, which was heavily pro-moting the eatures and benets o the vehicle in its print and broadcast advertising.

The call to action in the piece was to come in and test drive the car, with a new carpurchase as the primary objective. Recipients were encouraged to visit their localdealer and access the manuacturers web site or additional details.

The ShipShapes ClearCard piece generated almost 1,200 test drive requests and27.75% o the test drivers wound up purchasing a new vehicle. The ShipShapesphase o the integrated marketing campaign cost the dealer group about $100,000,and led to $16.5 million in car sales.

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Toyota Camry Back

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A Study of ShipShapes in Integrated Marketing

ShipShapes contacted a telemarketing rm about arranging a modest integrated mar-keting test with one o their clients. The telemarketing company located a technologyprovider to real estate sales brokers and agents who agreed to participate in the test.

The technology provider was preparing to mail a postcard (see ront and back in Fig-ures 7 and 8) to Caliornia real estate agents on a list he obtained o top producers.ShipShapes oered to mail a ShipShapes piece (see ront and back in Figures 9 and10) to a random hal o the list with basically the same oer, which was to call or sendan email or more inormation about the advertisers call capture service.

The advertiser agreed to share comparative results o the mailings with ShipShapesas well as the results o the telemarketers ollow-up phone campaign to both lists.The telemarketer was encouraged to take advantage o the capability ShipShapesprovided to place the ollow-up phone calls within a day or two o delivery o theShipShapes piece. But all o the calls to both lists were placed at the same time.

The reported results between the two mailings could not have been more divergent.The ShipShapes piece produced 400% higher direct response than the paper post-card and 1400% higher response rom the telemarketing. Perhaps the most enlight-ening result is that the telemarketing to the ShipShapes list increased the ront endresponse rate by 350%. In other words, i the advertiser stopped with the ShipShapesmailing and did no ollow up telemarketing, he might have been gone away happywithout knowing that he let 350% more business on the table.

ShipShapes RR v. Postcard RR ShipShapes > PostcardDierence in direct response 400%Dierence in telemarketing response 1400%Dierence in Total Response 1800%

One actor was evident in explaining the signicantly higher back-end response raterom telemarketing to people who received the ShipShapes piece v. the postcard. Thetelemarketing rm reported that 52% more people recalled getting the ShipShapespiece than the postcard, indicating that the ShipShapes piece had much greater im-

pact on the recipients than did the postcard.

The telemarketer oered an additional non-scientic explanation or the huge re-sponse rom the ShipShapes piece. He noted that it took 18% ewer phone calls toreach the ShipShapes list compared to the paper postcard list. Based on his experi-ence, he said this statistic indicates that the ShipShapes piece was ar more eectivein getting the attention o recipients and engaging them in the oer, and together withthe higher recall rate, indicated they were ar more receptive to the ollow-up contactvia telemarketing.

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Figure 7

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Figure 8

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Figure 9

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Our totally automated systemconverts your MLS listings into

pleasant human voice propertydescriptions that attract

home buyers 24-7!

Get more leads.Make more sales.


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Return Address

Figure 10

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Conclusion

ShipShapes creates a whole new playing eld or advertisers. By oering a way tomake an unprecedented impact on the audience, ShipShapes presents proound im-plications or integrated marketing strategies that leverage the ull value ShipShapesprovides.

ship shapes

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