Interline Throws Hats into the Ring
Rod Kilpatrick, creative director for direct marketing at Fallon McElligott Rice (Minneapolis, Minnesota) faced the difficult task of marketing Interline Communications Services (Omaha, Nebraska) to the telecommunications experts of the nation’s 1,300 biggest corporations. He used hats to build awareness of Interline. The hats were sent in 3 mailings, costing about $20 a prospect. A safari hat, a firefighter’s hat, and an aviator cap with goggles were sent with brief letters and response cards. Hats were sent in boxes, part of the strategy to spark interest in the mailing. Response rates to this direct marketing approach have not yet been released.
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Gelfand, M. Howard
Full text: [Advertising Age] Oct 11, 1984
Direct Tactics Get Politicians’ Votes/Phones Get Fund Raisers Off the Hook
Direct marketing is a most effective political marketing tool, a claim supported by the Republican party’s efforts and results. A package mailed 2 days before Reagan announced his candidacy (1984) netted a gross income of about $5.4 million. The cost of the package was about $700,000, leaving a net income of $4.7 million. During the 1984 campaign, the Reagan presidential ticket has raised $11.5 million through direct mail, and has been the first ticket in history to earn 100% of available federal matching funds, much of it earned through direct marketing. Telephone marketing is the most immediate vehicle for political fund raising, exemplified by a campaign for the National Republican Senatorial Committee. Using a strategy of segmenting lists geographically, taped messages, and a computer-assisted telemarketing system, Campaign Marketing Group (Alexandria, Virginia) was able to reach 95% of listed prospects. Of these, 33% renewed their task force memberships in the National Republican Senatorial Committee, and an additional 13% agreed to contribute.
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Edel, Richard
Full text: [Advertising Age] Oct 11, 1984
Direct Response Perks Product Introduction
General Foods (White Plains, New York), with more than 35% of US coffee sales, is marketing a new gourmet brand of coffee from Sweden, and marketing efforts include direct response print advertisements. Spread ads contain order forms that fold and seal to become preaddressed, postage-paid envelopes. General Foods’ timing is good, according to the National Coffee Association, which cites a 1984 coffee consumption increase of 5%. Direct marketing can be used: 1. to avoid retail clutter and brand wars, or 2. to keep a brand name’s association from attaching to a subsidiary product.
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Whitney, Sewell
Full text: [Advertising Age] Oct 11, 1984
Affluent Consumers Getting the Picture
Kathleen G. Sneckenberg, the president and publisher of America With Distinction (Chicago, Illinois) is selling advertisers on 4-color post cards to solicit business. The idea is not new, as evidenced by the 88,000 businesses which spent $86 million in post card deck advertising in 1983, according to ”Response Deck Reference.” Sneckenberg has offered 4-color cards on high quality paper targeted to the affluent. Thus far, 43 advertisers have participated in either 2 local Chicago mailings or one special interest mailing. Selective targeting has been Sneckenberg’s strongest selling point. She also guarantees that each deck will include only one advertiser from a specific product or service category. The targeted decks can both build a company’s image and sell the product.
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Fitch, Ed
Full text: [Advertising Age] Oct 11, 1984
Trade Group Launches Two-Front Offensive in Fight Against Aspartame
The Sugar Association (Washington, DC) filed a complaint with the Federal Trade Commission (FTC) against G. D. Searle & Co. (Skokie, Illinois) claiming deceptive advertising practices to promote NutraSweet and Equal (trade names for its sugar substitute product, aspartame). It also launched a $3-million advertising and public relations campaign to combat inroads made by these artificial sweeteners. The association charges that deceptive advertising is fueling the spectacular sales growth of NutraSweet sugar substitute. NutraSweet’s sales rose 285% in the 2nd quarter of 1984 from the same period in 1983. Searle contends that the Sugar Association’s actions are commercially motivated to prevent NutraSweet from gaining market share. Although artificial sweeteners have not been viewed as direct competitors of sugar, that perception is changing because of the alternative offered by NutraSweet. The association’s complaint cites NutraSweet and Equal ads that claim the products are ”low-calorie” when they are actually ”high-intensity” sweeteners, and ads that refer to the product as an ”amazing” new sweetening agent, instead of identifying it as aspartame, thus deflecting the consumers’ attention from the product’s true identity. The FTC could order Searle to change its ads or to run corrective ads. It could also require changes in product packaging.
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Higgins, Kevin
Full text: [Marketing News] Oct 26, 1984
An Element of Fun Is Important in Sweet Science of Direct Mail
The direct mail promotion for Spectrum’s (Chicago, Illinois) pay television telecast of the Larry Holmes-Gerry Cooney heavyweight championship boxing match in 1982 began with a concept that was fun, according to Gail Chrystal, Chrystal Direct Marketing Group (Arlington Heights, Illinois). The fight was to be Spectrum’s first pay-per-view event, costing subscribers $15. When it was discovered that an average of 8 people watch each TV tuned to a pay-per-view event, Chrystal and Victoria Mondae, former marketing director for Spectrum, conceived the idea for a Prize Fight Party Kit. The kit functioned as a premium item and a direct mail piece serving 3 purposes: 1. to lure new subscribers, 2. as an inducement to existing subscribers, and 3. as a marketable item that could be featured in ads. The kit contained: 1. a program, 2. several games, 3. ten mock fight tickets that were actually party invitations, 4. a coupon offer, and 5. a fight poster. The goal of 10,000 event subscribers was exceeded by 20%, and 300 nonsubscribers who watched the fight signed up within 2 weeks to take advantage of a discount offer. In addition, many delinquent accounts were brought up to date to be eligible to receive the fight. Gail Chrystal received an award from the Chicago Association of Direct Marketing for her work on the campaign.
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Anonymous
Full text: [Marketing News] Oct 26, 1984
SBP-II: Pieces of the Marketing Puzzle
Sales & Marketing Management’s 1984 Survey of Buying Power (SBP) – Part II provides marketers with a variety of survey data in 5 sections that can be used to narrow broad target areas to find markets with the most potential. Section B of the survey details current estimates of metropolitan merchandise line sales in 7 product categories, which can help estimate a product’s market share. Section C, 5-year metro market projections, can help marketers allocate salesforces by estimating each area’s effective buying income (EBI), and facilitates long-term market planning. Section D, newspaper markets, and Section E, television markets, provide data on audience demographics and EBI, which can help marketers allocate advertising effectively. Section F, Zip Code markets, can be used to define markets even more specifically and thus improve advertising and direct mail campaigns. The 5 categories’ statistics are presented.
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Anonymous
Full text: [S & MM. Sales & Marketing Management] Oct 29, 1984
Case Studies in Marketing ATMs Effectively
US financial institutions have substantial investments in automated teller machine (ATM) programs and must look for ways to promote ATM use to recoup their investments. The 4 basics of marketing – product, price, place, and promotion – should be applied to efforts to market ATM programs. These programs should provide features customers want, have pricing that encourages ATM use, have convenient ATM location, and utilize comprehensive ATM promotion. First National Bank of Mount Prospect, Illinois, a $178-million community bank, used a promotion program that included a sweepstakes, direct mail, and ATM demonstrations to build its cardholder base. Merchants National Bank (Indianapolis, Indiana) used a multimedia campaign to help boost its card usage to almost 50%, while Northern Trust Bank in Chicago paid employees up to $10 for each ATM cardholder they signed. Banks can also increase the number of locations offered to ATM customers by joining a national network such as CIRRUS.
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Burchfield, Bruce A.
Full text: [The Magazine of Bank Administration] Nov 1984
Baiting the BT Hook
The British government has begun its first attempt to privatize a major public utility. It hopes to achieve a shareholder base of up to 750,000 and attract L3.5 billion for stock in British Telecom (BT). To reach these goals, the government will be spending at least L8 million on a 3-month advertising campaign. A vast public information program has been started. It is aimed as much at educating the public about purchasing stock as it is at informing them about BT. A classic consumer marketing approach – the introductory offer – will permit share purchases on the installment plan. As an added incentive, stock buyers will receive L18 vouchers for telephone service. Another special feature of the marketing program is the elimination of a conventional 60-page prospectus. Instead, an 8-page document containing a share application form will be issued. It was felt that the conventional prospectus would be a deterrent to the novice investor.
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McLaughlin, Nicola
Full text: [Marketing] Nov 1, 1984
Prediction of Direct Marketing Campaign Results
Direct marketers need a way to predict the response to a mailing even before the end of the promotional campaign. At Hume Publishing Inc. (Toronto, Canada), a report of the current order intake and revised forecast is available on a daily basis from the intake review and marketing analysis (IRMA) system. As a result, managers can interpret test results early in a campaign and frequently have time to incorporate those results in the next mailing. The systematic comparison of factors enables management to adjust the factors if necessary. The publishing house produces home study programs, and IRMA is used to calculate the projected enrollment, cancellation rate, and total revenue to be produced by a mailing.
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Baker, J. W.
Full text: [Journal of Systems Management] Nov 1984
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