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	<title>Advanced Option Strategies &#187; Survey</title>
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		<title>How To Use Direct Response Card Decks To Fine Tune Your
Marketing&#8230;</title>
		<link>http://advancedoptionstrategies.net/how-to-use-direct-response-card-decks-to-fine-tune-yourmarketing</link>
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		<pubDate>Wed, 16 Dec 2009 19:53:17 +0000</pubDate>
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				<category><![CDATA[Option Trading]]></category>
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		<description><![CDATA[Market research specialists have discovered a new tool which
enables them to quickly identify target market cells, measure
buyer acceptance, test new product or service concepts quickly
and inexpensively and survey market characteristics&#8230;the Direct
Response Card Deck. 
For two to four cents per contact, the researcher can now gather
market intelligence from both specialized vertical markets
(lawyers, doctors, etc.) or broad [...]]]></description>
			<content:encoded><![CDATA[<p>Market research specialists have discovered a new tool which<br />
enables them to quickly identify target market cells, measure<br />
buyer acceptance, test new product or service concepts quickly<br />
and inexpensively and survey market characteristics&#8230;the Direct<br />
Response Card Deck. </p>
<p>For two to four cents per contact, the researcher can now gather<br />
market intelligence from both specialized vertical markets<br />
(lawyers, doctors, etc.) or broad based horizontal markets (all<br />
marketing executives across industry lines). In addition, these<br />
same markets can now be tested in such confined geographical<br />
areas as business executives in Hawaii or professionals in<br />
Minneapolis. </p>
<p>Not only does the marketer overcome one of the traditional<br />
problems in research&#8230;test sizes&#8230;he or she also reaps the<br />
huge advantage of accurate measurability and accountability.<br />
Since all responses can be directed right back to the research<br />
organization, market feedback is both quick and accurate. </p>
<p>Many firms have difficulty in obtaining statistically<br />
significant samplings through traditional channels because of<br />
budget restrictions. </p>
<p>It&#8217;s not uncommon for important strategy decisions to be made on<br />
the basis of sampling as few as 2,000 names out of a universe of<br />
several million potential buyers. This is risky at best. It<br />
could lead to marketing disaster based on serious sampling<br />
error, or wrong conclusions drawn from insufficient data. </p>
<p>With direct response card packs, it is now possible to test or<br />
survey as many as 100,000 potential buyers for as little as<br />
$2,000 or less. For the research or direct marketing consultant<br />
this results in meaningful figures which are both statistically<br />
significant and forecastable. </p>
<p>Proper analysis of this larger sampling should result in<br />
strategy decisions which are more accurate, more meaningful,<br />
more valid and more profitable for the direct marketer. </p>
<p>The ability to order and conduct true A/B (or more) split run<br />
tests of offers, prices, etc. has important implications for the<br />
creative team. </p>
<p>The marketing intelligence gathered through card packs can be a<br />
valuable road map to success. Critically important data,<br />
discovered through card deck advertising, can determine the<br />
answers to such questions as: Have we targeted to the correct<br />
audience? </p>
<p>Is the audience responsive to the degree necessary to maximize<br />
potential profitability? </p>
<p>Do we have the right combination of offer, price, copy,<br />
graphics, headlines, terms, etc.? </p>
<p>Are the response/profit characteristics such that they justify<br />
testing such other direct response media as direct mail, space<br />
or broadcast advertising? </p>
<p>Is there potential for a variation of this product/service to be<br />
marketed to a closely related audience? </p>
<p>What is the potential for back-end profits from related item<br />
sales? </p>
<p>Are we barking up the wrong tree? Should we cut our losses now<br />
and thank our luck stars that we were able to discover,<br />
inexpensively, that we were wrong? </p>
<p>While the advantage of card decks as a market research tool<br />
outweigh the disadvantages, there are some restrictions you need<br />
to be aware of: </p>
<p>1. The card itself is small (about 3&#8243;x5&#8243;) and as such restricts<br />
your ability to test such things as long copy and multiple<br />
option offers. Some decks provide larger format sizes with the<br />
ability to do fold-over inserts which provide more space, but<br />
these options are at a substantial premium in price. The small<br />
space can work to your advantage because it forces you to limit<br />
your testing to those factors that have the most profound affect<br />
on response and profitability&#8230;i.e. offer and price, for<br />
example. </p>
<p>2. Color reproduction, if it is important to your product, is<br />
not always the best. The conventional .007 Hi Bulk paper stock<br />
normally used in card decks is not the best choice for color<br />
printing. Most deck publishers, however, offer a coated stock<br />
option and you may find it useful. </p>
<p>3. Response rates are,on the average, lower in card decks (1/4th<br />
of one percent to 1 percent) than they might be in a free<br />
standing direct mail package. On the surface this may appear to<br />
be a disadvantage. In fact it is not. Your goal in market<br />
research/testing is to obtain statistically significant data<br />
across the broadest sampling possible&#8230;consistent with<br />
budgetary limits. </p>
<p>Card decks allow you to achieve this goal, precisely. It&#8217;s much<br />
better to have a 1/4th of 1% response from a 100,000 name<br />
universe (250 responses) than to have a 12.5% (250 responses)<br />
from a small 2,000 name test cell. Although the total numbers<br />
are the same, the former example gives you a truer picture of<br />
market conditions and possible product/service acceptance. </p>
<p>In summation, we have found that direct response card decks, if<br />
used properly, can be ideal market research tools. Card decks<br />
are inexpensive to use. They give quick accurate and projectable<br />
results. They reduce the risk of sampling error, and the<br />
resulting data is both statistically significant and inherently<br />
more valid. </p>
<p>There&#8217;s only one way to know for sure&#8230;test it! </p>
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