Direct Marketing Is Fueling Ad Business
Want to cash in on the hottest thing going in advertising today? Consider direct marketing. Cost of entry is low, low, low: just a roll of stamps, a package of envelopes and a mailing list. If you plan to do more than dabble, of course, you’ll have to invest much more than that; but you can also expect more tangible results than you got from the last corporate image campaign you spent several thousand dollars on. Direct marketing — which includes advertising that solicits an immediate response by mail, telephone, radio, or television — is the fastest-growing segment of the advertising business. It’s worth billions, according to Direct Marketing Magazine, and agencies and clients who used to scorn lowly “junk mail” practitioners are now eagerly hopping onto the bandwagon themselves. As a result, say Atlanta experts, both general advertising and direct mail are about to change forever. (excerpt)
Full text: [Atlanta Business Chronicle] Feb 10, 1986
Agencies mark their busy first decade in a busy S.D. scene
Corrections | Public relations man Dick Daniels was incorrectly reported to be a former real estate editor of The Tribune in an article Monday about the public relations business. Actually, Daniels was real estate editor of The San Diego Union. The same article incorrectly stated that publicist Tom Gable began his communications career as a Tribune copy boy. Actually, Gable started on The Union. The Union regrets the errors. (UNION, 860221, A-23) His business and real-estate writing experience brought Gable into public relations through association with Gail Stoorza Gill in Stoorza-Gable Marketing Communications “just as the real estate market headed south,” Gable said. Nuffer, Smith, Tucker Inc. will organize a dairy-industry issues retreat for UC Davis … Connie Terwilliger, weekend voice on radio station KYXY and frequent commercial voice-over, becomes visible in a Nissan TV commercial produced at Four Square Productions and airing locally … Cotton-Morrow Communications has an advertising and promotion contract from Temporaries NOW and also will promote the San Diego Boy Scout Council’s annual Scout Fair in April … Roland & Martin is working out a regional direct-mail campaign for Orestano Painting of San Diego … Strategy Marketing has moved to new offices at 4828 Ronson Court, according to principal Don Sciglimpaglia … Freelancers Kelly Davenport, a graphic designer, and writer Gael Katz added Gibraltar MoneyCenter Inc. and Seaport Village to their account roster … The Independent Insurance Agents and Brokers Association took its account to Berkman & Daniels … Ken Rietz & Co. got the Vintage International account.
Full text: [The San Diego Union] Feb 17, 1986
DMA’s Jonah Gitlitz Coming Off a Good Year
In 1985, Jonah Gitlitz took over leadership of the Direct Marketing Association (DMA). Robert DeLay was considered a tough act to follow, but Gitlitz has so far established a smoothly running administration. DMA membership grew 18% in 1985, the first growth in several years. Most industry members believed DMA has always advanced the broad interests of members, but Gitlitz has moved to become concerned with the individual needs of each segment. Leaders groups are being added to create a new level of participation. These groups now include Catalog Leaders, Agency Leaders, and List Leaders. Their projects include job descriptions, salary surveys, and educational programs. Groups are being considered for those who use electronic media and telemarketing. Gitlitz is now reviewing DMA’s statistics and is considering a national campaign to promote mail-order buying.
Edwards, Paul L.
Full text: [Advertising Age] Feb 17, 1986
Marketing today: Proctor Bank branch brings cash to skiers on a slope in Vermont
Proctor Bank (Rutland, VT) has opened an unusual branch on the access road to ski lodges in nearby Killington. The “Skibank” is aimed at providing services for out of state vacationers through Monec and Plus ATMs as well as providing full-service banking for local residents. The branch has a rustic design and employees dress in casual clothing. Proctor has advertised Skibank through a direct mail campaign to tourists and subscribers to regional skiing magazines.
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Full text: [American Banker] Feb 18, 1986
Biotherm Seeks to Capitalize on Cellulite
Satisfaction with one product draws customers to others in a product line. Therefore, Biotherm (New York) plans to use its new 10-day body contouring treatment kit that promises to battle cellulite in order to build customer loyalty for the rest of its skincare line. Biotherm is a part of Cosmair, the US licensee for L’Oreal products. Since launching the entire Biotherm product line in the US in 1985, the company has tried to build consumer awareness of its availability in major department store chains throughout the country. Biotherm’s target audience is women in their mid-30s and older who previously had bought their skincare products in drugstores. The line is moderately priced and includes 14 facial care products, 6 body care offerings, and 5 sun protection products. Biotherm’s advertising campaign includes: 1. advertisements in national and local magazines, 2. samples, 3. gift-with-purchase items, 4. in-store mailings, 5. national direct mail programs, and 6. seminars and clinics.
Full text: [Advertising Age] Feb 20, 1986
Low-rate credit cards go national: savings bank tests waters
PSFS (Philadelphia) has announced that it will soon go national with its credit card service. The move, which will probably include a higher rate structure than is currently available locally, will be based on a direct-mail and newspaper advertising campaign. Credit scoring and a continuation of variable-rate finance charges will be part of the national package.
Full text: [Bank Rate Monitor] Feb 24, 1986
Multichannel Marketers Should Integrate Efforts
Telemarketing works best when it is integrated into a multichannel marketing effort. It should be strategically interdependent with field representatives, media advertisements, dealers, catalogs, direct mail, and other marketing channels. To avoid in-fighting, competition, and empire-building, managers of field sales, marketing, and direct marketing should all report to one sales-marketing executive. Successful telemarketing applications include: 1. handling small accounts to free field representatives to concentrate on large accounts, 2. qualifying prospects and following up after direct mail campaigns, and 3. speeding up responses to inquiries from print ads by giving prospects the option of a toll-free number to call instead of using slow reader response cards. Telemarketing may also be used for toll-free ordering and outbound calling to identify appropriate targets and establish initial interest before a direct mail campaign or other direct marketing effort.
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Full text: [Marketing News] Feb 28, 1986
Big-Ticket Items Marketed Via Direct Response TV
Urban General Corp. (Fairfield, New Jersey) intends to sell big-ticket items via direct-response television advertisements by allowing installment buying without interest. The credit program will be offered in ads on cable TV for such items as Pierre Cardin luggage and electronic products priced up to $1,000. If successful, Urban General Corp. (UGC) will move quickly into spot TV. Experiments with an installment payment plan for a Royal typewriter priced at $150 were successful, and the installment innovation has been credited with increasing sales about 25%. UGC formed a Consumer Electronics and Marketing Liquidation Group in January 1986, with the intention of becoming the largest liquidator of excess electronics inventories in the US. UGC was founded in 1980, is privately-held, and has grown at a 20% annual rate. Sales for 1985 totaled around $25 million. UGC hopes to fill a need for efficient inventory management in an environment where rapidly evolving technologies and consumer tastes make electronic products quickly obsolete.
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Higgins, Kevin T.
Full text: [Marketing News] Feb 28, 1986
Java’s Jangled Nerves
US coffee consumption has been falling for 20 years and growth prospects are limited, but the coffee business is fiercely competitive as marketers try to force growth by offering new products and changing coffee’s image to appeal to young adults. The greatest decline in consumption is among people aged 20-24. Probably the most important influence is the trend away from hot drinks in general. Growing health consciousness is another major influence scaring off many consumers, especially younger ones. Consumers are showing renewed interest in ground roast coffee, and interest in decaffeinated coffee is also growing. Specialty coffees are another hope for the market’s future. Larger marketers rely heavily on television advertising, concentrating in the colder months and on day time slots, but couponing in newspapers, free-standing inserts, and direct mail are also often used. The plans of leading manufacturers are somewhat unsettled due to the volatility of the market. Major manufacturers include General Foods, Procter & Gamble, Nestle, and Chock Full O’Nuts.
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Full text: [Marketing & Media Decisions] Mar 1986
Ireland: The Selling of the Green
”Keeping Ireland Green” can describe the increasingly aggressive approach to the marketing of Ireland to tourists and business travelers. As Ireland’s 2nd-largest industry, tourism is vital to the country’s well-being. The Irish Tourist Board (ITB) and participating merchants help subsidize low-priced travel packages aimed at US tourists and shoppers who comprise Ireland’s strongest tourist base. Irish whisky, designer fashions, and Waterford Crystal are examples of products offered at prices competitive enough to lure consumers. The Irish airline, Aer Lingus, has benefited from increased tourism. Tailor-made travel and conference packages are being arranged for companies, such as Anheuser-Busch, Time/Life, and General Electric. The ITB, along with 2 airlines, will conduct a direct mail campaign to target Americans in order to promote early spring travel, thus prolonging the tourist season and expanding the tourist industry.
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Full text: [Madison Avenue] Mar 1986