Piggyback Ride on the Orange Blossom Special
With the deregulation of piggyback rail service (the shipment of truckloads of goods directly on flatbed railroad cars) in 1981, Seaboard System Railroad (Jacksonville, Florida) began a program to regain its share of the $200 million freight market in Florida produce. The program features the Orange Blossom Special, a competitive piggyback rail service for shipping Florida-grown fruits and vegetables to the Northeast. To establish a presence in the perishables market, Seaboard used advertising, direct mail, and cold sales calls. The ads were placed in trade publications such as The Packer, The Produce News, and Supermarket News to reach an audience of growers, packers, and grocery wholesalers. Four-page inserts were developed featuring fresh oranges and tomatoes, with the tag line ”Get Fresh with Seaboard.” The copy emphasizes the Orange Blossom Special’s competitive prices and time scheduling. The train’s success is evident in 1982-1983′s $10 million in business, which was double original estimates. Future plans for the Orange Blossom Special include the development of southbound business, both in refrigerated products and in United Parcel Service (UPS) delivery.
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Norton, Susan
Full text: [Marketing & Media Decisions] Apr 1984
Don’t Let the Microchips Fall Where They May
American Microsystems Inc. (AMI) of Santa Clara, California, a high-technology company which produces a variety of microchips, aimed its 1983 advertising campaign toward repositioning its image as that of a custom and semi-custom house to that of a full-capability company. AMI put $1 million behind the effort to expand its recognition, $750,000 to $800,000 of which went into print media, with the balance going into direct mail. The format used was inserts, which: 1. allowed the full message to be displayed in each ad, 2. offered quality control, and 3. gave 4 pages for the price of 3. One of AMI’s keys to successful advertising was pre- and post-testing, administered by Marketing Decisions, a division of Bozell & Jacobs, on the basis of which AMI selected its ads. The 4-color inserts, printed on heavy, glossy stock, were targeted toward engineering managers and design engineers in electronics companies that use integrated circuits. Each ad carried a coupon, which, when returned, was immediately answered with a phone call. A direct mail program was run simultaneously with straightforward promotion letters and 6-page foldovers. AMI’s campaign resulted in a 5% to 7% increase in awareness.
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Leon, George deLucenay
Full text: [Marketing & Media Decisions] Apr 1984
Canon Catapults Ahead in New Copier Sales
According to Canon USA/Canada president Fujio Mitarai, the company has gained its success in copier products by combining technological innovation with the aggressive marketing of new products which meet previously unfulfilled market needs. Canon developed the NP system, a practical alternative to xerography, and the liquid-dry system, which led to the first truly economic plain paper copier. These innovations led to the introduction of the PC-10/20 Personal Cartridge copier in August 1982. In devising a marketing plan, Canon’s copier products advertising department and its agency, Dentsu Young & Rubicam Inc., had to contend with 2 problems: 1. the business-to-business selling approach, and 2. gaining attention in a crowded market dominated by Xerox. The audience for the PC copier includes: 1. professional, managerial, and administrative office equipment purchasers, 2. small-business owners, and 3. professionals in specific occupations. Canon allocated $24 million for its 1983 media budget, 70% of which went to television, 25% to print, and the remainder to radio and outdoor advertising. In addition, a full-service direct mail program processes responses to Canon’s ads.
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Kelly, David M.
Full text: [Marketing & Media Decisions] Apr 1984
Making Your Sales Force More Effective
The rising costs of the average salesforce visit and the expenses of keeping a salesperson on the road have together decreased the profitability of sales operations and stimulated the search for alternative types of marketing strategy. Top sales personnel are used most effectively when confined to high volume, high potential accounts. In dealing with low volume accounts, telemarketing represents an important direct marketing alternative to personal calls by a company representative, while still providing the necessary customer service. The massive telemarketing programs instituted for the Ford Motor Co. and Chrysler by Lee lococca efficiently produced impressive results, generating screened and valid leads on new automobile buying prospects. Telemarketing campaigns enable the company to briefly convey desirable product features to a broad range of potentially hard-to-reach markets, producing highly qualified leads for a diverse spectrum of products and services.
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Roman, Murray
Full text: [Marketing Communications] Apr 1984
Uniroyal’s Rifleshot Campaign for Rovel
To stimulate sales of Rovel, a new thermoplastic product designed to withstand weather aging, the UK arm of Uniroyal commissioned the direct mail house of Temple Leary to develop a direct mail campaign targeted at a diverse group: 1. sign manufacturers, 2. bus and coach builders, 3. manufacturers of caravans, camper tops, and boats, and 4. tractor cab makers. The selected mailer, which revealed a discreetly posed nude torso, compared human skin with Rovel and was accompanied by a letter urging recipients to send for more information. To follow up on the 8% response rate elicited by the mailer, Temple Leary instituted a telemarketing program to qualify sales leads and classify enquirers into one of 6 classifications according to level of interest. The telequalifying exercise has been largely successful in expanding the horizons of the salesforce and creating consumer interest in Rovel.
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Anonymous
Full text: [Industrial Marketing Digest] Second Quarter 1984
The Consumer Ad Agency as Industrial Advertiser
Campaign magazine’s annual review of the top 300 consumer advertising agencies in the UK prompted several agencies to begin promoting themselves to potential clients. An analysis of such efforts from 5 agencies reveals some problems, as well as some points to praise. For instance, AAP committed the classic marketing error of comparing the agency’s present performance with its past, rather than with the performance of its competitors. The agency had implied it was moving up in the Campaign 300, but it had actually been static. The ads of Young & Rubicam (Y&R) and Allen, Brady & March (ABM), the 2 leading agencies, took advantage of the Campaign 300 advertising opportunity without referring to it. In a direct advertisement written from the client’s viewpoint, Y&R offers 7 suggestions for improving the client’s agency. With its series of new business ads, which feature Peter Marsh and Rod Allen dressed to represent their newly won accounts, ABM produces an impression of continuity. The 5 ads reveal that consumer agencies, like other business organizations, vary widely in their orientation.
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Anonymous
Full text: [Industrial Marketing Digest] Second Quarter 1984
Upscale Writing Sells Substitutes by Mail
In marketing, the word ”substitute” often connotes an inferior imitation. Less costly substitutes, such as Cubic Zirconia, can be marketed successfully if the product is positioned cleverly alongside the genuine article. An example from the direct mail piece offered by Shalet’s Millionaire’s Watch Collection illustrates the use of upscale copy to appeal to prospects. Other sales tips include: 1. Avoid words associated with hard-sell copy, such as ”act now,” or ”order right now.” 2. Avoid short punchy sentences in favor of an essay-type approach using longer sentences, which give a more literary appeal. 3. If mailings rather than space advertisements are used, include a well-done brochure. 4. Emphasize that even wealthy people are buying substitutes. 5. Dare prospects to compare the product with the more expensive version. 6. When using testimonials, try to be creative and different.
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Brock, Luther
Full text: [Direct Marketing] Apr 1984
Spiegel’s Turnaround – Net Sales Rocket to $516 Million
When Henry Johnson became Spiegel Inc. (Chicago, Illinois) president in 1976, the firm recognized that its budget merchandise was losing in competition with K Mart and catalog giants like Sears and Wards. A campaign was launched to carve a new niche in the market. The new Spiegel target customer is female, affluent, wants to be fashionable, and looks for convenience, quality, and value rather than the lowest price tag. The target age group is 21-59, with a minimum household income of $25,000. In changing its image from ”budget” to ”quality,” Spiegel dropped $40 million in merchandise, closed its catalog stores, and cut customer mailings in half. The new catalog is aesthetically pleasing and offers designer clothing and home furnishings. A nationwide toll-free number allows customers to order 24 hours a day. The success of Spiegel’s new approach is illustrated in the increased number of new customers, the higher sales, and the increased order value.
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Spiegel, Edward J.
Full text: [Direct Marketing] Apr 1984
Speak Up: Only Way to Counter Legal Threat to List Usage
North Carolina passed a law making it unlawful for professional solicitors to solicit charitable contributions by telephone, but acceptable for professional solicitors to solicit on behalf of profit-making organizations. Plaintiffs brought suit, charging that the statute forecloses a means of communication protected by the First Amendment and that the statute violated their Fourteenth Amendment right to equal protection. The court agreed; the commercial free speech arguments it set forth should be noted by any direct marketer wishing to be in business in the next decade. Telephone marketers, direct mail marketers, and direct sellers are winning cases similar to the one in North Carolina, as courts continue relying on the commercial free speech test set forth in 1980. In commercial speech cases, a 4-part analysis has developed. It must be determined whether: 1. the expression is protected by the First Amendment, 2. the asserted governmental interest is substantial, 3. the regulation directly advances the governmental interest asserted, and 4. it is not more extensive than necessary to serve that interest.
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Posch, Robert J., Jr.
Full text: [Direct Marketing] Apr 1984
Selling the Upscale Buyer: How to Play the Game
Often, the ”upscale” buyer is really ”midscale,” posturing and seeking acceptance in a higher group. Six rules outline a sales approach geared to reach this buyer and at the same time appeal to the genuine upscales. These rules are: 1. Show reverence for the product to suggest exclusivity, relying on vocabulary, type size, and graphics to create a positive, upscale effect. 2. The vendor should be on the same level as the buyers. 3. For the upscale buyer, a credible benefit need not be product usefulness; it can be the product’s origin. 4. Do not assume that a single motivator works for all potential buyers. 5. ”Upscale” is a state of mind, not a homogenized group with particular interests and knowledge; thus, the sales approach should appeal to the state of mind. 6. Since ”upscale” is a state of mind, individuals move in and out of any particular group, motivated by factors beyond a marketer’s control; thus, copy should remind readers they are still members of the upscale group.
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Lewis, Herschell Gordon
Full text: [Direct Marketing] Apr 1984
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