Direct Marketing Augments Traditional Sales Efforts
The high cost of sales calls has encouraged new efforts by management. MCI Telecommunications Corp. developed an aggressive direct-response television campaign that generates 200,000 consumer calls a month. The company also sells its service through American Express, Sears, and Amway distributors. MCI rewards its sales representatives for sales made by alternative channels. Wesley R. Weber, now with National Liberty Insurance Group, developed a direct-mail program for the IDS insurance subsidiary of American Express. The program assigned specific functions to different parties: 1. Headquarters managed list selection and mailing, creative work, and fulfillment. 2. Field people chose their geographic areas and the number of leads they could handle. Peg Kumin, director of telemarketing for Publishers Clearinghouse, encourages the use of professional telephone representatives. Also, she advises a company to have a relationship with the individuals called as well as a quality reason for calling.
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Higgins, Kevin T.
Full text: [Marketing News] Aug 2, 1985
Consultants to Professionals Use Direct
Consultants with Management Decision Systems Inc. (Darien, Connecticut) developed a management needs-assessment survey for organizations and distributed it through a direct-response advertising program. The survey provided Management Decision with valuable marketing data while alerting its potential clients to the company’s surveying capabilities. A press release about the survey promotion resulted in free publicity that produced 50 inquiries. The promotion was also advertised in a professional journal and a newsletter. Inquiries were received from 181 organizations, with 90 ordering the survey. More than 75% of the inquiries came from companies that had never used Management Decision before. Manufacturing companies accounted for 33% of inquiries, and almost half of the respondents were companies with 1,500 or more employees. Most of the companies had never conducted a needs analysis before. Organizations that might be excluded include: 1. organizations outside the market, and 2. governmental and volunteer organizations.
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Connolly, Paul M.
Full text: [Marketing News] Aug 2, 1985
Cranston Camp Has $1.5 Million for 1986
[Alan Cranston], who was first elected to the Senate in 1968, said federal spending reports filed Wednesday will show that he raised $1,254,991 between January and June of this year. He also raised $283,929 in 1984 for the Senate race. Currently, Cranston said, the campaign’s “cash on hand” is $1,050,555. Of those, 1,090 were listed as “major contributors,” people who gave an average of $500 each, for a total of $542,000. Another 10,500 individuals gave Cranston a total of $247,000 after direct-mail appeals, and a telephone marketing effort raised $135,000 from 8,000 people. Among Cranston’s possible Republican opponents, Rep. Bobbi Fiedler of Northridge reported that she had raised $518,088 as of June 30. Almost $300,000 of that was transferred from her House campaign fund, according to Fiedler’s top aide, Paul Clarke.
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KEITH LOVE
Full text: [Los Angeles Times (pre-1997 Fulltext)] Aug 2, 1985
Leo Burnett: Folksy Ad Agency Goes on the Offensive
Leo Burnett Co. (Chicago, Illinois) has become successful by designing such long-running advertising classics as Charlie the Tuna and the Marlboro man. However, some critics claim Burnett is too old-fashioned, and the agency dropped to 8th place in the industry last year. Since then, the agency has become more aggressive. Burnett plans to move into direct marketing and is trying to expand its international division. The agency recently won Seven-Up Co.’s $45-million domestic advertising account and a $25-million M&M/Mars domestic account. Last year, additional business from existing clients grew to more than 50% of Burnett’s total billings of $1.7 billion. Nineteen of the agency’s 28 clients have been with Burnett for more than 10 years. Despite criticism of its homespun ads, Burnett’s clients praise the firm’s exceptional service. In addition, Burnett president John J. Kinsella points out that 45 of the agency’s 104 brands rank first or 2nd in their markets.
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Frank, John N.
Full text: [Business Week] Aug 5, 1985
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Designed as an aid to statistical data processing, the Canada Conversion File, in the form of either hard copy or computer-readable magnetic tape, has a wide variety of applications for marketing organizations, program manager Gustave Goldmann said. “Used in conjunction with 1981 census demographic data, the file is invaluable for direct mail and telephone marketing campaigns.
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Full text: [The Globe and Mail] Aug 7, 1985
Home improvement season to be strong: marketers
The home improvement loan outlook for 1985 is strong, according to a survey of major financial marketers. The survey showed: 1) that consumers will be taking advantage of home equity and loan consolidation offers; 2) that bank promotions are primarily based on loan rates; 3) that some institutions are faced with lower loan volumes but greater average loan size; and 4) that most banks will utilize direct mail as a campaign tactic.
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Anonymous
Full text: [Bank Advertising News] Aug 12, 1985
Chicago can have it all, too
Needham Harper Worldwide, the ad agency for the Anheuser-Busch brand, has chosen a Toronto-based director, Bob Canning, of production company Dalton, Fenske & Friends. BBDM Cunningham & Walsh is the new agency for Coachmen Recreational Vehicles, which just last summer launched its first major TV campaign starring a Dalmatian as the corporate symbol. At BBDM, director Dick Sanderson said the new management wants to “more strategically target” its primary market. Only about 300,000 motor homes are sold each year, so that using localized TV advertsing and direct marketing now is being seen as more efficient than the national TV used by DJB. BARRIER BROKEN
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Nancy Millman
Full text: [Chicago Sun - Times] Aug 19, 1985
Regional Carriers Positioned for Success
When the airline industry was deregulated in 1978, the regional airlines defined their markets and implemented necessary changes faster than did the larger airlines. However, 85% of the industry is still controlled by the 10 largest carriers, and regionals must market their airlines to cut into that percentage. Consumers consider a frequent-flier bonus an important factor in choosing an airline. For this reason, industry analyst David Sylvester argues that regional lines need to cooperate to create a frequent-flier network that would: 1. reduce costs, 2. improve information gathering, and 3. neutralize the giant airlines’ advantage. In addition, information gleaned from these frequent-flier programs can be useful in direct marketing. Stanley C. Plog of Plog Research claims that upgraded service is a key weapon for regional carriers. AirCal recently upgraded its service to attract business travelers, using television advertising to promote its service at coach prices. Competition should continue among the regionals as they attempt to establish market niches.
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Simons, Janet
Full text: [Advertising Age] Aug 22, 1985
Transamerica Scores Big in Pension Business
In 1977, Transamerica Life and Annuity formed what it says was the first pension-only life insurance company in the US. Transamerica registered a 210% increase in pension business in the last 4 years, and as a result of one of the highest interest rates in the industry and a new marketing thrust, individual retirement account (IRA) sales for the first 6 months of 1985 were up 40% over the same period last year. The marketing thrust consisted of a direct-response cable television commercial and a cooperative advertising campaign. The cable TV commercial produced more than 400 leads a week, and according to Brad Sousa, director of brokerage, sales promotion, and advertising, the percentage of leads converted into sales was very high. Transamerica’s commitment to the pension is reflected in other innovative products and marketing thrusts, which include a plan with a scale of fees conducive to smaller markets.
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Haggerty, Alfred G.
Full text: [National Underwriter] Aug 24, 1985
Grapefruit 45 Firm Broke Pact, Judge Says
Administrative Law Judge Quentin Grant on Friday ruled against Carlsbad-based World Communications Inc., an entertainment and direct-response marketing firm that sells Grapefruit 45, and its three top executives. The findings-which resulted in a mail-stop order and a cease-and-desist order-apply to money seized by authorities earlier this year from a previous Grapefruit 45 advertising campaign. The orders do not apply to the product’s current advertising effort, according to WCI President Jay Kholos. Kholos claimed victory because Grant found that the Grapefruit 45 commercials did not make any claims that the grapefruit pills alone would cause weight loss. In addition, Grant supported the ads’ contentions that if the diet plan were followed correctly, women could lose, on average, up to two pounds per week and men could lose an average 3 1/2 pounds weekly. Despite the problems with Grapefruit 45, Kholos said WCI is still on target to generate about $50 million in revenues in 1985. The firm also markets record albums (Nat King Cole, Frankie Valli and the Four Seasons, Loretta Lynn), produces television programs and distributes a jewelry catalogue, a cookbook and makeup.
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BILL RITTER
Full text: [Los Angeles Times (pre-1997 Fulltext)] Aug 27, 1985
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