Directorio

[pic 1][pic 2]NATIONAL POLYTECHNIC INSTITUTE 

SCHOOL OF COMMERCE AND ADMINISTRATION

TEPEPAN UNIT

  LIC. TRADE RELATIONS

DIRECT MARKETING

MEMBERS:

CORONA BALDERAS FEDERICO

RIOS GARCIA JULIO CESAR

ROJAS JIMENEZ WILMAR

WORK UNIT 3

GROUP: 4RV4

3 COST DIRECT MARKETING CAMPAIGN

Direct mail advertising is used for all types of businesses, from supermarkets to distribute weekly circular, advertisers pay per click that send coupons to customers. Use this method to announce the opening of a new store or next offer or provide discounts to a particular service to a select group of people, a direct mail campaign can target both reduced as to a wide audience. There are many factors that determine the marketing rate of return, it will vary for different campaigns.

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Yield rate

The average rate of return on direct mail campaigns is generally 1/2 to 2 percent, according to JWM Business Services; in a campaign consisting of 100 pieces of mail, it is expected that two to four people respond and half of that number will make a purchase. The numbers increase when the client is more exposed to your brand or narrow the market when you're headed with specific objectives. Create goals with a clear call to action, like a coupon. For example, instead of a general advertising sales throughout the store, focus on a group of frequent shoppers by offering 10 percent savings on selected merchandise.

Calculating monetary gain

Calculate the gain of your direct mail campaign by multiplying the four key elements: selling price, number of mailings, response rate and conversion rate. The response rate is the number of people who respond to an advertisement; the conversion rate is the number of people who made a purchase. Subtract the cost of campaign and divide the total cost of the campaign, this will give as a result the rate of profit. For example, assume you spent $ 1,000 to send 100 postcards announcing a product that costs US $ 50, 10 people responded, but only five bought the product. In this example, the calculation is 50 times, 100 times, 10 times 5; subtract 1,000 from the product and then divide the difference by 1000, which will give you as a result 249, or about 25 percent.

Direct mail with other campaigns

The profit rate will vary for each direct mail campaign. Because it is possible to lose money when advertising is done, it determines the effectiveness with respect to the cost of the campaign before investing a lot of time and resources. The advent of the Internet has introduced new forms of direct advertising such as email ads, pay per click ads and other advertising programs by keywords. Depending on your market, your advertising dollars be better spend on other advertising. Consider using other forms of direct marketing, such as emails or newsletters, if a direct mail campaign will not be profitable.

Planning an effective campaign

Determines the effectiveness of your campaign by calculating the monetary gain of your advertisement direct mail. The expenses include the cost of printing and mailing and spent hours in developing the campaign. For example, if you spend $ 10,000 on developing commercial and US $ 5,000 to print and mail 4,000 pieces of mail, the total cost of the campaign is $ 15,000 if your product sells for $ 200, about 75 people (one payback of about 2 percent) should respond and buy your product worthwhile investment.

3.1 GENERIC CONVERTIBILITY FACTOR

Convertibility is a currency regime that belongs to the strictest category of fixed exchange rate. All rules work the same way as the gold standard. They are characterized by the exchange rate set by law and require the BC (Central Bank) or the Convertibility has 100% of hard currency reserves in relation to monetary debts BC (or monetary base). Convertibility is obliged to immediately convert, hard currency, any submission local cash. ()

It is emphasized that the Convertibility (or BC that meets these functions) is only required to change for hard currency (the reserve currency and that in turn could be gold) cash, or circulating currency, which is present in its window. It has no obligation to change its hard currency value other such bank deposits or bonds.

Convertibility regime was established in England in 1844 in the Issue Department of the Bank of England. Then this kind of monetary settlement is mostly used in the English colonies in Africa. The Convertibility had the advantage that the colonies used the local currency for circulation. Thus the Crown did not have to use their coins and bills and could keep as reserve currency convertibility. There were also early history of these colonial countries Convertibility not as Argentina in the early twentieth century, who probably used this system for their important trade links with England during the nineteenth century. The Convertibility were very effective in maintaining fiscal discipline but when the African colonies became independent from the sixties, the new countries considered the Convertibility as a symbol of colonialism and one after another abandoned this regime. Well they abandoned fiscal discipline, creating their own central bank that fed to the issuance of development plans. The result was high inflation and lack of economic growth.

Lately the Convertibility have gained respectability. This, as a result of the success in Argentina when you set the system again, almost a century later, in April 1991.

Argentina came from hyperinflation, and decades of instability. After several failed plans dictate the convertibility law amounts to a fundamental Convertibility and get two things, first stabilize the economy and second, restore economic growth.

Naturally, not all the plan's success was due to Argentine convertibility as the economy was also opened to international trade by reducing tariffs, extremely inefficient state enterprises were privatized, and drastically deregulated much of the economy. All this made the country gained in efficiency, but the Convertibility gave the framework of certainty that had lost after decades of mistrust and devaluation (a few days of the usual promises that there would be no devaluation).

Either by the Argentine success or for other reasons, other countries emerging from the Soviet Union and Yugoslavia (Estonia, Lithuania, Bosnia-Herzegovina and Bulgaria) successfully adopted the system so far. Also in mid-1998, some prominent economists proposed to stabilize Russia and Indonesia, solution that the IMF resisted.

There is no perfect exchange system. Convertibility has all the advantages and disadvantages of a fixed exchange rate system.

2. The currency convertibility

The April 1, 1991 the Argentina entered a currency conversion rate. The Argentina currency is well integrated into the homogeneous mass of universal currency

In the short term the currency is the most effective mechanism to prevent runs imaginable. The force of law commitment assumed by the government in the sense of maintaining the monetary base fully backed by international reserves, imposes the mandate and gives you the ability to recall up to 100% of the supply of working capital and reserve requirements. It is true that from the convertibility law governing the non-commitment of monetary emission.

Currency convertibility is the most efficient policy to overcome the hyperinflation

The convertibility of the austral determined:

Early convergence of the local inflation rate in the American rate, plus some residual inflation points at first, given the reduction will experience the real exchange rate

The interest rate in southern converged, fast in the American rate

The Central Bank was forced to buy and sell currency at the agreed price, to match supply and demand for money

The spread () it charges commercial banks suffered heavy compression

The greatest power of wage purchase and the emergence of trade credit paved the way for a strong industrial recovery

The fall of the real exchange rate opened export

3. Exchange regime and monetary stability

The announcement of the convertibility of the austral in US dollars has generated the symptoms that usually precede a period of stability.

Freedom of changes is purely on the absolutely free access for all market operators to change. Change control is the restrictions on access to that market imposed some or all economic agents.

M = m p

E = q.P

Equation 1 describes the market equilibrium: M, the bid nominate money; m, are the determinants of supply; P price level.

Equation 2 says: E, the nominal exchange rate; It is equal to; q, real exchange rate; for; P, valued at the price level.

It is necessary that M = E; not to act consistently with this need, the price level is indeterminate minded locally and, therefore, the sum of its many real problems purely monetary instability source economy. The problem is summarized in the fact that our economy has three nominal monetary to determine variables (E, P and M) and only two equations 1 and 2, to do so.

The dollarization of the economy is the emergence of a form of payment that acts as almost perfect local currency substitute. The fixed exchange rate stabilizes the price level in local currency, floating exchange rate leaves it totally undetermined.

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