Radio: Station Growth Adds to Fractionalization/Newspapers: Co-Op Efforts to Mark Category/Out of Home: Renewed Interest
National advertisers will continue to show strong interest in radio in 1985, but the growing number of stations and types of formats has led to greater audience fractionalization. Commercial scheduling is becoming more elastic, and stations are adjusting to accommodate audience flow and advertiser demand. Advertisers are also using nonwired networks more to take advantage of radio audience segmentation potential. National newspaper advertisers are increasing the use of supplements and inserts, moving away from standard, run-of-press scheduling because media strategists are convinced that newspapers are best used for promoting goods. Strategists will also use newspapers to focus their promotions on small circulation areas. Marketers are showing renewed interest in outdoor advertising and are studying and experimenting with new graphic approaches and technologies. Use of direct mail is increasing dramatically, with geographic focusing and demographic cuts becoming more precise.
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Anonymous
Full text: [Advertising Age] Nov 29, 1984
Employee Bonuses, Direct Mail Boost Sales
The Property Insurors Consultants Agency Inc. (Oklahoma City, Oklahoma) projects a 50% rate of growth over the next 2 years. At the agency’s quarterly meetings, supervisors realign job descriptions and evaluate employee strengths and weaknesses, and employees are updated as to new marketing ideas, target accounts, and sales results. The agency’s bonus program, based on increased volume, has served to increase employee interest in: 1. servicing accounts, 2. keeping renewals, and 3. getting new business out on time. To solicit business, the agency works with associations, such as the Oklahoma Independent Used Car Dealers Association, that do a direct mail-out of special programs. The agency then follows up with letters and individual contacts. Additional factors contributing to the agency’s success are: 1. selective advertising, 2. a strong commitment to service, 3. development of an established base of companies, and 4. a yearly sales contest to increase sales volume.
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Miller, Cliff
Full text: [Rough Notes] Dec 1984
The Gold Plated Consumer
The affluent consumer not only controls the largest share of discretionary income, but establishes brand preferences for the less affluent individual. The influence of the affluent on the marketplace has led marketers to gear advertising campaigns toward this segment of the population. Survey research has shown that affluent adults (those with annual incomes of $40,000 or more) continue to be the fastest growing market and population segment. Six years ago, this segment accounted for only 6% of the adult population. By 1984, that figure had risen to 24%, or 40 million. The average affluent household income is $77,600. For the marketing strategist, the affluent segment of the population is not easily reached. The affluent are less likely to view television, more likely to have unlisted telephones, and are apt to live in high security areas. As a result, selected print media and direct mail are more inclined to reach this target group.
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Anonymous
Full text: [Marketing Communications] Dec 1984
Stress Benefits to Readers: A Three Phase Process (Part 2)
Direct mail copywriters often make errors in stating their products’ benefits. There are 3 parts to benefit statements: 1. a statement of superiority, 2. relating superiority to the reader, and 3. telling how the superiority will improve the reader’s life. Knowing the reader provides knowledge as to what the reader will consider a benefit. A benefit that is misstated becomes no benefit. In addition, some direct response writers do not know when to stop writing and so diminish the effectiveness of their pieces through excess verbiage. Although challenges may enhance copy, a challenge should make the person to whom it is aimed feel like a hero for complying. A challenge based on skepticism or hostility lessens the projection of benefit.
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Lewis, Herschell Gordon
Full text: [Direct Marketing] Dec 1984
Chase Spurs New Business with Better Service Promo
Direct mail campaigns were the cornerstone of Chase Manhattan Bank’s efforts to generate increased usage of automated teller machines (ATM) and increased sales to business customers. David Scholes of Rapp & Collins Inc., Chase’s marketing agency, discussed the campaigns in a recent interview. The Silver Dollar promotion rewarded mailing recipients with silver dollars and followed up with a sweepstakes in which users of ATMs could enter by depositing their ATM transaction receipts in a box. The goals were to both increase usage and eliminate consumer misconceptions about ATMs. Resistant users were the first target of the campaign, and the number of non-users has been reduced dramatically. Chase’s business-banking center promotion advertised facilities with hours after 5 p.m., private conference rooms and an account executive for each business account. The mailing had no direct-response card, but the appropriate account executive made a follow-up telephone call to the mailing’s target, which included both current customers and new prospects.
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Hoke, Pete
Full text: [Direct Marketing] Dec 1984
Try the Telephone
A telemarketing program does not necessarily involve big staffs and large expenditures. Telemarketing programs can be as sophisticated as using trained telephone callers to sell specific products to targeted audiences, or as simple as using the telephone to field member inquiries. There are 2 kinds of telemarketing: 1. inbound, which involves responding to incoming calls, and 2. outbound, which requires the credit union to take the initiative by calling its members. The best approach is to use telemarketing in combination with other media; the direct mail-telemarketing combination is the most popular. Advantages of telemarketing include: 1. a valuable personal contact, 2. the chance to ask questions, and 3. an increased ratio of direct contacts. The first step in a telemarketing program is deciding which product to sell and to whom. The telemarketing program should become part of the permanent operation. A script or call guide is useful in responding to routine inquiries.
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Anonymous
Full text: [Credit Union Magazine] Dec 1984
What’s Wrong with the SIC Code … And Why
The Standard Industrial Classification (SIC) Manual, compiled by the US Office of Management and Budget (OMB), standardizes the collection of industrial data. SIC codes have long been adopted by marketers as a handy system of classifying industries according to general and specific functions. However, marketers have complained about the system as long as they have used it, faulting the currency of the codes and taking exception to the definition of some industry niches. The problem with keeping the codes current centers around: 1. technological innovation, 2. the task of reclassifying infant industries that are developing quickly, and 3. unforeseen, new industry groups developing as a result of structural changes in the economy. The government, while maintaining that SIC codes were not invented for marketers, actively solicits proposals for revising the code.
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Couretas, John
Full text: [Business Marketing] Dec 1984
Direct Mail Promo Adds Zip to SIP: Marketing a 401(k) at Bank of N.H.
The $267-million Bank of New Hampshire NA in Manchester is marketing one segment of its employee benefit promotion with a coffee mug giveaway, capitalizing on the product name SIP, which represents a (tax deferred) savings and investment plan. Middle-market companies, attorneys, and accountants were targeted in the direct mail campaign that carries the theme, ”One SIP is all it takes … to lower taxes, raise benefits and make 1984 more palatable.” According to Alice L. DeSouza, vice-president and director of marketing, the mailings were followed by a one-on-one calling program. Ninety-three percent of the companies called are now offering SIPs to their employees. Eighty percent of the new SIP clients are new customers to the bank. To reach lower echelon employees, who may or may not perceive the benefits of what is often seen as a tax shelter plan for the more affluent, prospective 401(k) clients are given a questionnaire to determine employee interest. The bank will provide presentations to discuss the advantages of 401(k) plans and SIP specifically.
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Carcione, Sandra G.
Full text: [Bank Marketing] Dec 1984
Damart Rides the Thermal Currents
Since the UK’s Damart was founded in 1966, the company has successfully developed and catered to a growing market for its thermal underwear products. Consumers of the company’s thermal products are no longer limited to the over-45 age group; the biggest expansion has been among 15- to 44-year-old women. Throughout the 1970s, Damart grew at a rate of about 40% a year. Nevertheless, the company has taken steps to secure its future by: 1. trimming its 12-million-household mailing list to include only the best prospects, 2. expanding its product line to include footwear, large-size women’s apparel and middle-of-the-road outerwear, and 3. conducting tests to evaluate the appeal of new products to its mailing list customers. Despite the recent steps toward diversification, Damart still receives over 80% of its L40-million turnover from thermal products. The company aims to reverse this proportion by the late 1980s.
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Jivani, Alkarim
Full text: [Marketing] Dec 6, 1984
Differences, Similarities Exist Between Marketing of Candidates and Products
According to David Meeker, president of public relations firm Meeker-Mayer Inc. (Akron, Ohio), there are major differences as well as similarities between political marketing and the marketing of products and services. Both political campaigns and products/services require simple, direct, believable messages. A short, simple theme in a political campaign is part of the positioning process to articulate the primary appeal of the candidate or issue, and political campaigns, in general, do a better job of positioning than most product campaigns. The major positioning difference between a political campaign and a product campaign is that the candidate or issue generally has only one competitor, but products must be differentiated from a wide range of competition. Also, media strategy is especially critical in a political marketing campaign. A variety of different media buys are available to effectively build media exposure to the saturation point by election day.
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Anonymous
Full text: [Marketing News] Dec 7, 1984
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