Offer and Merchandise - PowerPoint PPT Presentation

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Offer and Merchandise

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Offer and Merchandise Factors to consider when selecting merchandise and making direct & e-marketing offers Offer Considerations Price: Reasonable markup, competitive ... – PowerPoint PPT presentation

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Title: Offer and Merchandise


1
Offer and Merchandise
  • Factors to consider when selecting merchandise
    and making direct e-marketing offers

2
Offer Considerations
  • Price
  • Reasonable markup, competitive, test several
  • Shipping Handling
  • General rule do not exceed 10 of product cost
  • Free attracts attention, or even expected in some
    categories
  • Unit of Sale
  • Each Two for Set of X
  • Optional Features
  • Colors, odd sizes, personalization

3
Offer Considerations
  • Future Obligation
  • Auto renewal, Get 10 for 1 and buy 5 more at
    regular club prices over the next year, Volume 1
    free others will be shipped each month
  • Credit Options
  • Usually increase average order size by 15 or
    more (not really an OPTION anymore)
  • Incentives
  • Usually increases response, but may not get good
    repeat customers (unless you continue incentive)

4
Offer Considerations
  • Toll-Free Ordering (800) or (888) Numbers
  • Increases response by about 15, customers expect
    this
  • easy to use shopping cart for website
  • Time and Quantity Limits
  • Adds urgency if logical, but be sure to stick
    with it.
  • The auction approach for the web (ebay)
  • Guarantee
  • ALWAYS offer a satisfaction guarantee and DO IT!!
    But, make sure you can live with it.

5
Checklist of Basic Offers
6
Checklist of Basic Offers
7
Short Term vs Long Term (front-end vs
back-end)
  • Emphasizing the free or incentive aspect of the
    offer will usually increase initial response rate
    (front-end)
  • Emphasizing the actual merchandise and/or the
    total price to be paid will reduce initial
    response, but usually results in much better
    conversion or purchase rates (back-end)
  • Test to see which is more profitable

8
Merchandise Selection Criteria
9
Web Suited Products
  • Information
  • Not available in stores/unique (long-tail)
  • Story rich (see information above)
  • Updates and add-ons
  • Overcomes geographic limitations

10
Expanding an Existing Business
  • Broaden your market definition
  • Ex executive planners to executive business
    gifts
  • Ensure new products are consistent with
    customers image of your firm
  • Ensure new products fit the characteristics of
    your customer list
  • Pricing, past offer styles, lifestyles, recent
    purchases
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