7. Marketing Method of inserted Flier Advertising

Now, We would like to discuss about the marketing method of inserted flier advertising. What has a very important meaning in marketing using inserted flier advertising is a method of setting an area for distribution of the fliers. Although there are delicate differences in specific examples, we would like to introduce you how to set the areas for distributing fliers here by using there typical ways. These are also some of the examples of how to set business areas for such various industries as:

1. Distribution
2. Real estate, and
3. Department stores and mail-order business


1. The first method is a setting of areas based on hypothetical business areas.
This is the most orthodox method. Most of distribution companies which spread out their shops adopt this method.
The flow of development is as follows:

(1) First, they conduct a marketing research. They conduct
*Initial survey (or basic understanding of areas), which includes:
*Characteristic of location
*Population dynamics, number of households, household composition
*Age composition, working structure
*Income level
*Transportation access.
*Purchasing behavior, and others.
Then, they conduct
*Secondary survey, which includes:
*Analysis of competing shops, and
*Survey on consumer characteristics.

(2) Then, they establish a marketing strategy. They will
*Confirm store concept, which includes:
*Commodity plans, composition of tenants
*Layout
*Sales target for first year
*Sales method, service method, and others.

Then, they will
*Set target or they will
*Set hypothetical business areas, which are the areas for distributing inserted fliers. And the number of households in the areas will become the number of fliers to be distributed.


2. The second method is to set areas by segmenting the targets.
*Under this method, target customers for commodities and services are relatively limited (in other words, not everyone can purchase them), and they can be segmented by residential areas.
The flow of development is as follows:

(1) First, marketability of commodities is reviewed to find out whether they are the products which are for limited prospective customers.

(2) Then, conditions for segmenting the targets are established.
For example, in the case of real estate,
*Neighboring areas of the real estate and
*Areas along a railroad of the real estate and other are determined.

(3) Finally, spot areas are established.



3. The third method is to set areas by response date and others.
*This is the method which has mainly been conducted for mail-order business of department stores and exclusive mail-order companies.
The flow of its development is as follows:

(1) First, total number of fliers for mail-order catalogues to be issued is determined from the past date, product plans, and sales target.


(2) Then, based on the response data, percentage share rate of the total number of issuance is determined by administrative district.
For example, when five million fliers are distributed in Tokyo and three other nearby prefectures, they are divided by determining the percentage share rate like
30% for Tokyo or 1.5 million fliers,
30% for Kanagawa or 1.5 million,
20% for Saitama or 1 million, and
20% for Chiba or 1 million fliers.
(3) Finally, more detailed areas and the number of fliers for distribution are determined. This is done by
Delivering the number of fliers which is decided by the aforementioned way to the determined newspaper-selling agents and then distribution areas will be set in further consideration of regional characters (that is, whether the area is residential or business, for example).



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