Learning Objectives
Why direct mail is best for small businesses
How to identify your target customer
What are demographics?
What are psychographics?
How different media relates to target customers
The problem with newspaper advertising
The problem with TV advertising
The problem with radio advertising
Why the solution is direct mail
1. Why direct mail is best for small businesses
Direct mail can be effective and inexpensive for small businesses. Compared to radio, TV, and newspapers, direct mail is affordable. It also can target specific customers.
Can target specific customers like men 25-35, mothers with two children, people who drive Honda cars etc.
2. All marketing starts with knowing your target customer.
Who is your target customer? Do you really know your customer?
Example: of retail or tire store: age, race, economic status, blue or white collar workers, male or female or both.
Two main identifiable charactistics:
Demographics: Things that describe target customers, age, sex, martial status, income, geography where they live, work, and shop, income, kind of homes, cars, number of children, whether both husband and wife work.
Example: Day care center
Psychographics: Describes attitudes, beliefs, culture, buying attitudes and behaviors, political beliefs.
Example: selling guns/ liberals/connectives: If you know that your customers tend to be concretive, you can make certain assumptions. Connectives tend to be family oriented, have children, be religious; wives tend to stay home with children, high percentage of home schooled children. Husbands like and use guns, hunt, more likely to be NRA.
You can rent lists of church attendees in a certain area, home schooler homes, gun owners, NRA donors etc.
3. Knowing your target customer: allows you to choose the correct kind of advertising. What media do they use? Do they read newspapers, magazines, listen to radio, which formats to use.
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How age relates to advertising media: Consumers age 30 and below get most or all of their information and news, sports, on TV, Internet, and cell phones. They also listen to three main radio stations, and watch TV shows targeted for their age group.
Example: a 25 year old male would be likely to listen to a sports radio, a modern rock, and a second rock station. In addition, he is likely to watch the TV shows “Friends,� the NFL and other sports, and action violent TV shows and movies.
How society and its changes affects media choice.
CPM is cost per thousand people reached.
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