On-Line Database System Raises ALA’s Fund Raising Capabilities
In an interview, Kurt Lenz, direct mail operations manager of the American Lung Association (ALA) of Southeast Michigan, and Peter Wahl, direct marketing division director of 3 PM Inc., discussed fund raising for the ALA. The Michigan chapter has been able to improve its fund raising record by converting to an interactive, online database management system. The online system gives the user direct access to the individual record. The conversion has resulted in: 1. better target mailings, 2. reduced costs, and 3. increased potential for integration with other fund raising efforts. Since the system was installed in July 1983, promotions have exceeded those done in the past. The ALA is using the system to identify different contributors and respond with packages that will work with different types of individuals.
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Roel, Raymond
Full text: [Fund Raising Management] May 1984
The Store-Bought Plan
When George Barbee decided to explore the consumer mass market for financial services in 1979, he found no competition at all. With 2 partners and a company called Responsive Communications Inc. (RC), which was providing computer-generated investment strategies for large bank trust departments, Barbee developed a simplified version of RC’s data-gathering questionnaire. In September 1979, the partnership began generating the industry’s first direct marketing campaign for financial services. Today, the Consumer Financial Institute (Newton, Massachusetts) generates 80-110 plans a day for $175 per plan. After Barbee’s pioneering effort proved successful, major retail distributors with extensive mass market penetration began marketing computerized financial planning. The next step will be the home generation of financial plans using sophisticated personal computer programs.
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Lauterbach, Jeffrey R.
Full text: [Financial Planning] May 1984
Chrysler Mail Campaigns Get Leads, Support Dealers
A recent survey of 2,000 people by the Roper organization showed that 63% enjoy the daily checking of their mail. Chrysler Corp. wanted to take advantage of this responsiveness and the new technology that enables marketers to refine their mailing lists and better determine customer needs. Taking its theme from Dodge Prospector trucks and vans, a direct mail program called the Great Gold Rush was launched throughout the US. Advertising for the promotion included national and local television and radio spots, magazine ads, newspaper inserts, and promotional material given out by dealers. The direct mail part of the campaign proved most effective, thanks to a specialized mailing list created through R. L. Polk’s total factor response elaboration and evaluation program, called TREE. The direct mail piece highlighted Prospector truck price and value. The promotion helped Dodge trucks exceed sales goals by 160%. TREE was again employed in the campaign to introduce the new turbo-charged Chrysler Laser in late 1983.
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Campana, Joseph A.
Full text: [Direct Marketing] May 1984
Ad Agency Helps Non-Profit Become Self-Sufficient
About a year ago, Phoenix House, a nonprofit organization that helps rid drug abusers of the habit, asked Wunderman, Ricotta & Kline Inc. (WRK) for help in fund-raising. In an interview, WRK chairman and chief executive officer Lester Wunderman said that at first he thought his organization could contribute little. Then he developed a program whereby WRK could train members of Phoenix House in direct marketing and advertising techniques so they could learn to do their own communications at a professional level. The campaign, designed by Phoenix House residents and consisting of letters, 2 television commercials, print ads, and posters, is now complete. Wunderman hopes to get more free ad space in magazines and more free time from local TV stations. He would also like someone to donate a small computer to Phoenix House so WRK can teach residents how to build and manage their own database. Wunderman sees Phoenix House as a prototype for how to help the handicapped.
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Hanley, Kevin
Full text: [Direct Marketing] May 1984
The Best Promotions of 1983
This review presents the winners of the Best Promotions of the Year for 1983, involving many innovative ads across a wide range of industries and product categories. Winners’ promotions are slightly more elaborate than in previous years, and many involve free premiums. A sampling of winners and their promotions includes: 1. For its Wheaties ads, General Mills sponsored a national contest to select 6 amateur athletes to be featured on packages, tapping a grass roots spirit across the US and moving Wheaties off grocery shelves. 2. Bacardi Imports offered an American Express instant rebate coupon to introduce Bacardi Gold Reserve rum and O’Darby Irish Cream liqueur; the campaign was supported using direct mail to the trade. 3. Star-Kist Foods’ 9-Lives cat food offered a free health exam for purchasers’ cats, which was also free to the company due to an agreement with the American Animal Hospital Association. 4. Coca-Cola USA’s Tab promotion aligned the brand with the fitness and health movement, and it included participation from other firms that offered fashion and exercise tips.
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Robinson, William A.
Full text: [Advertising Age] May 31, 1984
Playing Up Programming Potential
Until recently, cable has managed to thrive almost without competition, but recently it is being crowded by such new technologies as videocassette recorders, satellite master antenna television, and direct broadcast satellite. According to Mara Miesnieks of Smith Barney Harris Upham (New York), the emphasis is now on marketing and selling the product, and being certain that consumers recognize cable’s potential. Many cable marketers have responded by wooing public support for cable via radio, television, and direct mail, in an effort to reposition cable as a better deal in price, programming, and value than it is presently perceived to be. Program suppliers are also assisting cable operators in sales and image building. MTV/Music Television’s ”I want my MTV” campaign is a good example of the type of activity being undertaken. Observers also feel that subscribers need more assistance in picking the group of cable channels that will best suit their preferences.
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Josephson, Nancy
Full text: [Advertising Age] May 31, 1984
Reader’s Digest Uses Electronic Mail to Condense Customer-Response Time
Firms that have large customer bases occasionally make fulfillment errors. When this happens at Reader’s Digest (Pleasantville, New York), Western Union Electronic Mail Inc. (WUEMI) is used to deal with the problem. Computer Letters or Mailgrams are sent to customers when timing and impact are important considerations, as when customers have complaints. Also, acknowledgement letters are sent through WUEMI when customers order high-priced merchandise from promotional catalogs. These letters acknowledge the order and capitalize on the suspense of anticipation. The increased turnaround in processing time is a primary benefit of using WUEMI (McLean, Virginia), according to Pat McDonough, customer communications manager for Reader’s Digest. Another plus is that the letters are well received by the public. The price for the service is based on volume and whether enclosures are used. WUEMI customers can use a variety of hardware to access the service.
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McCanney, James
Full text: [Zip Target Marketing] Jun 1984
Colleges and Universities Vie for Students Via Direct Marketing
Colleges and universities are using direct marketing strategies in an effort to increase enrollment. They are especially interested in females and blacks. Some very desirable high school juniors receive 10 or more recruitment letters per day. An illustration of aggressive direct marketing recruiting is found in the work of John C. Hutchins, marketing director for Florida Institute of Technology (Jensen Beach, Florida). Hutchins buys subscriber lists from Byte, Flying, and Skin Divers magazines and merge/purges these lists with lists of high school juniors appearing on the Student Search List prepared by Educational Testing Service (Princeton, New Jersey). The school sends 4 letters, with the final applicants being contacted by a professional counselor or administrator trained in telemarketing. The number of schools purchasing lists of names of prospective students has increased, but private colleges and universities are still the most prevalent.
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Davis, Mary O.
Full text: [Zip Target Marketing] Jun 1984
Smooth Internal Organization Essential to Marketing Plan
Before an agency can be expanded, there must be an inside organization that provides a smooth work flow and the expertise needed to properly service current customers and prospects. Before an aggressive campaign is started to solicit new business, the agency must make certain that it has the personnel, staff, and facilities to provide for current customers. At the Wagner Insurance Agency Inc. (Dayton, Ohio), each account is treated with courtesy and empathy. Employees are encouraged to look at the account from the client’s point of view. There are 3 inside customer service representatives who handle commercial accounts. The agency prides itself on its annual review of commercial accounts. The reviews are written and include suggestions for improving existing coverages. In marketing its commercial lines business, the agency has found that a direct mail plan with producer follow-up works best.
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Wagner, Robert P., Jr.
Full text: [Rough Notes] Jun 1984
Healthcare Moves to Madison Avenue
As the economics of health care causes patients to shop around for medical services, and as the amount and variety of health care options increase, a growing number of health care providers are compelled to use marketing to compete. Health care marketers’ advertising media costs are estimated at about $200 million a year. The most frequently used medium is direct mail, which is favored for its ability to pinpoint demographic targets. Health maintenance organizations (HMO) tend to be the most aggressive marketers because of their built-in consumer orientation. Physicians and hospitals, on the other hand, tend to take low-key approaches because of the professional stigma still attached to the idea of ”selling” health care. Some people believe that health care services should be sought out, not sold, and it will be some time before advertising is fully accepted by doctors and hospitals. Increasing competition, however, will continue to bring more health care providers into advertising, and large ad agencies, as well as small specialty agencies, will seek these accounts.
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Fannin, Rebecca
Full text: [Marketing & Media Decisions] Jun 1984
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