Quote:
Originally Posted by Virginia Beck What drives the need for a sales letter in the first place?
Not all direct-mail marketing campaigns use them. Not all Web sales sites use them. At some point, somebody (who?) decides that the targeted pitch of a sales letter is the best way to sell a certain product. (Any in particular? Any completely off-limits?)
Can you guys describe what determines if and when this happens? (The "who" question is also a big one.)
Virginia |
for a salesletter.
Direct response companies have two basic ways of product "discovery"...one is that they find a so-called starving market...and this more often than not is found through the LISTS available in the SRDS.
A marketer can identify a HOT list, and then try to create or acquire a product for this list.
Now the list may have been generated by a full page ad, and in this case, maybe a letter wouldn't work, or may not be cost effective. So, the Creative Director, or the person with that hat on at that time...makes the call.
So, what may happen is the copy is assigned either in house or to a freelancer who will write the promotion as the product is being sourced or tested in one of several ways...to see if the demand really exists, or is it some sort of a fluke (Fluke?...think pet rock or fad thingy).
One way of testing and one of the more successful ways, is to use Focus Study groups...but the best marketers use a "Real Life Simulation"...and here is how that works.
People are invited (maybe through ads, telephone calls, referrals, or customer lists) to attend a Focus Study. They will be PAID for their attendance. Say they get 100 dollars for the 3 hour study.
They could be presented with 12 different products, most often similar ones, the last Real Life Simulation I attended was for jewelry, and all 12 items were jewelry items in a price range from 19.95 to 99.95.
In this example, the products were there, to be looked at, held, examined and then rated as to which ones had the most appeal.
Once all the products were RATED, then the participants were given the opportunity to PURCHASE any of the items of their choice for a serious discount, 50 to 75% or more.
See, by giving them the chance to spend the money you give them, they will be more honest in their appraisals. Maybe, everyone picked the blue star necklace, but 80% bought the red ruby slippers...so, the RLS says that the red ruby slippers are a hot product.
After furthing testing, perhaps the Ruby Slippers are a favorite of several groups.
Now the buyer goes to work sourcing the product. Perhaps she can get them cheap from China, but they have lead paint in them...or source them in Kansas, where a well known manufacturer that specializes in Ruby Slippers can cut a good deal.
As the buyer is sourcing, the Creative Director has assigned someone to gather up a "family" of products...and these too will be run through the RLS, or not, maybe a phone call to the previous participants will work.
So, Smart Marketer Inc., has a product,
Ruby Slippers, a mathching Gucci-like handbag, a bracelet, necklace, ear rings, belly button ring, etc. And maybe a line of "
YOU AIN'T IN KANSAS Toto perfume" to complete the ensemble.
Then the search for a list begins. Is there one in the SRDS of people who have purchased designer like shoes recently. How many pairs did they buy? Where did the list come from, was it generated by full page ads? Direct letters? AH HA.
So, there were 782,000 people who purchased slippers and jewelry from someone in the last few months and they bought via a "sheet catalog"...this is one of those OTHER type promotions you mentioned.
Maybe the Creative Director will test a sales letter. Probably will test several things...in small 2 to 3,000 tests.
If the SALES LETTER pulls enough, then another, larger test is done. Then the decision is made...usually by the person wearing the CREATIVE DIRECTOR or some similar title, will make the call.
Let's roll out with a sales letter because we've tested it can sell more products and back ends, and upsells and cross sells than the catalog can do.
That is WHO usually makes that call.
Since this got kind of long, I'll post the second part or product "DISCOVERY" in a new post, OK?
gjabiz