An article on the merits of using TARGETED BUSINESS PROMOTION, using a combination of advertising in one way or another, leaflet distribution and (most successful of all, for many) direct mail.

We all have to buy our customers, one way or another, so which way is the best value?

Increasing business
Whatever business you are in, you will usually be looking to increase the amount of
customers or clients that you have, by business promotion and branding. Most people in business find it fairly easy to actually supply or produce the product or service that they are offering, but many find it quite difficult to get enough people to buy it. This is where branding and promotion come into play. Business does not come from nowhere - you have to go and get it.

Business promotion
The obvious answer then, is to promote your business. To get your products or services in front of potential customers and to persuade them to buy. Whether you are a multi million corporation or a one man shoe repairer, your difficulty remains the same. How to get extra business without spending more actually getting the business than you will earn from it.

All businesses have to buy their custom, in one way or another.
Coca-Cola do it by spending millions on brand promotion. W H Smith do it by being in the right place - the High Street or shopping centre. B & Q spend millions on national newspaper and television advertising. Currys, Argos, Homebase, Morrisons and PC World take a full page spread in national newspapers, on a regular basis. This must work for them or they would not spend the money. The secret is to get maximum return on your business promotion budget.

If you have a shop or a market stall, you may feel that the very expensive rent and rates that you pay, along with a good position in the High Street or market, should guarantee you enough business. Unfortunately, your neighbours also feel that this should be the case, so you will have lots of competition for the fixed amount of trade that passes your door or stall. Likewise, If you employ expensive salespeople, you may feel that they should bring in enough business for you, but where do they get their leads?

Advertising
Your local newspaper or radio station knows this problem well and will, sooner or later, gleefully approach you, offering a series of adverts. They will convince you that just one test advert will have no effect at all and that you must book a series to be successful. Unfortunately, for most businesses, the blanket coverage of newspaper and radio advertising means that you are almost certainly paying for a much larger circulation area than you need and that most of your advertising budget is wasted. Unless you have a very unique, specific product or service that will attract people from some distance away, or are a large company with an advertising budget of millions, local newspaper and radio advertising is much too expensive to be cost effective for most businesses. This is where targeting comes in.

Targeting
The secret of successful business promotion is to spend as little as possible, while attracting as much business as possible. Simple really. Why spend more than you need? The first rule of business is to buy cheap and sell dear. This is where targeting comes in. Sadly, the flashy newspaper advert that you have just spent thousands of pounds on, was only seen by a very small amount of potential customers. Many readers never look at the adverts, most live in a different area to the one you are aiming at and unless you are one of the multi-nationals like Currys or Asda, will have minimal effect on your branding and success. The ONLY alternative is to target.

Targeting is truly wonderful. Immediately, you are only talking to people who may actually buy from you. Targeting is the difference between using a scattergun or a snipers rifle. The actual method of targeting, however, will vary considerably, depending upon what type of business you are in.

Whatever your printing, direct mail, mailing list or posting requirements, please contact Centreprint Print & Mail now for a quotation or helpful advice without any obligation.

Targeted business promotion case history number one.
Ian bought a very expensive lease from his local brewery and became the proud landlord of a village pub. Although the pub had been there for many years, trade was rather poor as the previous landlord had not bothered to serve any food and had relied on the wet sales alone, which seems to be in decline. Heavy drinking is not very fashionable or health orientated these days, so Ian decided to offer delicious home-cooked food as well. He and his wife revamped the kitchen, had a very nice menu printed and waited for the customers to pour in. A few locals tried the meals and enjoyed them, but most of the time, Ian’s poor wife was standing about in the kitchen, twiddling her thumbs.

Eventually Ian approached his local newspaper and booked a very expensive series of adverts, aimed at local people. The trouble was, the newspaper circulation are was very large, so he was paying to advertise to areas well way from his hostelry. There are thousand of pubs in all areas, so not many people will travel very far to eat out, however good the food. Alan and his poor wife waited and waited and although a few new customers did try the meals, the cost of the adverts far outweighed the profit on the meals.

Luckily, one of Ian’s customer had some experience of business promotion and advised Ian on a course of action. He pointed out that less than a mile away, there was a very large, modern housing estate, containing about ten thousand private houses. Ian plucked up his courage, knocked on a few of these doors and did some local research. He found that many people who had bought these new houses were mostly from out of the area and did not even know that Ian’s pub existed. As many families eat out at least once a week, as well as for sunday lunch, Ian had found his target market.

Luckily, Ian had the sense to listen to the advice he was given about targeting and devised a plan of action. He had some attractive but inexpensive leaflets produced, offering a discount on meals taken at certain times and on certain days. The leaflets were well designed, promoted his “brand” (The pub name and a warm welcome figured prominently, as well as a map of how to get there) and offered a special discount on certain meals at certain times of the day. All that these potential customers had to do was to bring the leaflet with them, to obtain the discount. This meant that only his targeted potential customers got the discount and also meant that he knew how effective the leaflets were being. Ian arranged for Royal Mail to distribute the leaflets to each household and very soon, a steady flow of new customers were calling in to get their discount and to try the food. Ian’s wife fed them well, so naturally, they came back. Ian also made sure that he got their names and addresses each time and added them to his “Christmas card list”.

Every time he changes the menu or comes up with a new offer, Ian writes personally to his customers, inviting them to call in. He also sends them an inexpensive personalised Christmas gift each year - a valuable way of increasing customer loyalty and always makes sure that he includes his Christmas menu. He has repeated the printed leaflet campaign on a regular basis, both to the original estate and to other local areas and estates, continually building his customer base.

Ian TARGETED his potential customers and maintains contact with them. He does not rely on “word of mouth” (largely a myth) or passing trade. He uses the power of targeting and gives inexpensive business promotional gifts to reward his customers for their loyalty and his business continues to grow. Everyone has to buy business in one way or another but Ian gets maximum return from his business promotion budget, with very little waste.

Targeted business promotion case history number two.
This case involves a successful loan company. They had been trading for many years and were doing well, but the MD of the company had always felt that he could be doing better. He advertised in the daily papers and his staff manned the phones until 9 pm, seven days a week, taking the enquiries. Generally, they were doing everything right, but the MD had the brilliant idea to try direct mail as well. His first step was to get a data expert to trawl through his past enquiries, find all those that were over six months old. He then got the mailing company to send personalised laser printed letters, direct to these past enquiries and ask if they were interested in a loan. Extra business flowed in from these previous enquiries, so the MD continued to the next step. He sourced some suitable names and addresses of people who may be looking for a loan or a second mortgage, from a specialist data rental company and got his mailing company to send personalised letters to these people as well. More business flowed in.

By steadily mailing out more and more targeted letters each month, the MD has made very good growth to his company and can turn the enquiries on and off, like a tap. He can expand just as fast as he wishes, or slow the flow of enquiries during staff holidays etc. He is now considering using the power of reward, by giving a printed pad and pen, mug, pocket knife or calculator to his enquiries and a larger business gift upon completion of the loan or mortgage. This will encourage client loyalty as well as tempting potential clients. Everyone likes to receive a free gift, providing it has a high perceived value. Strangely, this has nothing to do with its actual cost. What man would be disappointed with a mult-function, stainless steel penknife? Yet they cost less than £2.00 each.

Business promotion case history number three
Brian runs a highly successful health club in the south of England. Although laready very successful, there is a high turnover of members in health and fitness clubs, so new clients are constantly needed. Brian decided that he needed a steady flow of new members and took the trouble to research his target market carefully and to aim at the right sort of affluent areas.

After careful research, Brian used his business promotion budget wisely by booking a twelve month leaflet distribution campaign with Royal Mail, spreading his budget over quite a wide area of affluent homes. He then ordered well designed leaflets from a specialist print company and made sure that they could be trusted to always deliver just the right amount for each monthly delivery campaign, direct to the Royal Mail distribution centre. In this way, the promotion was almost effortless.

Royal Mail distribute leaflets, with the mail, using their reliable post men and women, who have the integrity to ensure that each leaflet goes where it should go. No database is required, just an agreed list of post code areas. The advantage of having Royal mail deliver the leaflets is that, unlike the local free newspaper, they guarantee to deliver accurately, at the same time as the mail is delivered. Sadly, newspaper and freesheets, although offering cheaper distribution, are not as reliable as Royal Mail. We have even heard cases of bundles of leaflets being found behind hedges and in litter bins.

Brian is now also targeting lapsed members from his database, using personalised mailings sent by a reliable mailing company. All he does is send them his database and they do the rest. He is also now looking at renting a mailing list of suitable potential members (affluent, overweight etc.) and sending out personalised mailers, targeted as as invitations to visit his club for a free trial and a personally escorted tour of the facilities. By the skilful use of targeting, Brian has maximised his business promotion budget. His business has gone from strength to strength, with his targeted business promotion activities steering a steady stream of new members through his club each month. The next step is to give branded clothing (tee shirts and sweat shirts) to new members, so that they will become walking billboards for his fitness centres.

Leaflet distribution or direct mail?
The choice between promoting your business via leaflet distribution or by direct mail is not a simple one. All businesses are different. Often a combination of the two is the ideal route to follow. Lets take a look at the advantages and disadvantages of both.

Leaflet distribution - the advantages
Lower overall cost than direct mail.
Relatively easy to organise. Just talk to CPM about design and print.
No database required - just choose suitable postcode areas.
Leaflets can be purchased at low cost.
Easily repeatable and easy to target large sections of the community.

Leaflet distribution - the disadvantages
A large percentage of leaflets can go unread as some people "shake out" inserts.
Blanket coverage can only target a particular area - not individuals or their interests.
No personalisation is available - one size must fit all.
Many leaflets are wasted unless Royal Mail distribution is used.
Your leaflet is often competing with others delivered at the same time and may be seen as “junk”.

Direct mail - the advantages
Very easy to organise - just use a one-stop print and mail company like Centreprint.
Accurate targeting direct to your type of prospect.
No waste - the offer is seen by everyone that you choose.
A wide range of suitable mailing lists are available. Accurate data profiles can be chosen.
Responders grow your own database for future offers.

Direct Mail - the disadvantages
The cost is higher than leaflet distribution.
Mistakes are costly - it is always safer to test first.
You’ll need professional help from a reliable mailing company.
You need a suitable mailing list.
Some mailing companies only want to deal with blue-chip clients - NOT the case with CPM.

SUMMARY
There is, therefore, no definitive answer to which business promotion method to use. It all depends on your type of business and the type of customer that you need to attract.

Leaflet distribution may be for you if:
You have a business that appeals to an wide and easily reached section of the public, such as a restaurant, a pub, a hairdressing salon, a motor repair garage, a carpet cleaning business, sell double glazing, conservatories, garden services. These businesses attract almost all of the population, so can easily be promoted to everyone in a specific area. The best part about leaflet distribution is that you can turn new business on and off - like a tap. You can target exactly the areas that your potential buyers live in, as well as the standard of housing. The targeting in leaflet distribution is therefore by post code. Some people prefer to enclose the leaflet or letter in a printed envelope, addressed to the intended recipient, such as "The Householder", "Car owners over 50" or whatever. This is, of course, a further form of targeting.

Direct mail may be for you if:
You need to reach a specific sector of the population, such as sub prime or non-status individuals who need to consolidate their loans, specific buyers of higher value products by mail order, or people who have an interest in a particular hobby or occupation. For instance, a leaflet drop by post code, offering a photographic holiday, would undoubtedly fail, yet a carefully targeted direct mailing on the same subject, to known keen photographers could do very well. If you already have a list of past enquirers or existing customers, then you MUST contact these by mail, with a personalised invitation to buy from you. Existing enquirers and customers are like gold dust, just waiting to be used.

The wonderful part of direct mail is that you can carefully hone data to cover exactly your needs, regarding age, sex, area, home ownership, hobbies and interests etc etc
The targeting is this case is by profiled individual, honing in on one name, in one household, who may be interested in your offer.

Business promotional gifts can be used in many ways. Branding is vital to all sizes of business. A very low value item, such as a printed pen can be freely given away as a printed advertisement for your business and is a useful way of getting your telephone number or website address to a wider audience. Printed note pads are guaranteed to be used and keep your name and contact details right in front of your customer or prospect. They are always very much appreciated. Gifts like printed mugs and rulers are vital as give-aways at business exhibitions, leaving a lasting impression in the mind of your prospect. Higher value printed gifts are often used as a reward for asking for a quotation or for agreeing to see a representative face to face. They may also be sold, having acquired an added value by being printed. Examples of these are the many and varied products in RNLI shops and the often over-priced items at rock concerts.

It is amazing that a customer will express delight at being given an item that is designed to promote your business - not theirs. We all like something for nothing and if the gift is useful as well, we’re delighted! If you give someone a tee shirt or sweat shirt, printed with your company details, they will surely wear it, proudly promoting your brand or identity to all. They will put your printed note pad in pride of place, on their desk or by the telephone.

Thank you for reading this article, which, hopefully has proved useful to you. If you would like further advice on any specific aspect of leaflet production or direct mail, please feel free to contact us.

Please feel free to reproduce this article elsewhere if you wish, as long as all links remain intact.

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