The Who, What, Where, When and How of Recruiting
Occidental Life Insurance Company of California indicates that its retention rate of agents is better than for most companies. This success may be the result of efforts of local people such as the branch manager and the general agent. Participation in career conventions is one effective recruiting method. At these conventions, a search goes on for people who are active in their communities and who are interested in outside activities and projects. Occidental is also involved in an advertising campaign aimed at recruiting women. Since 9 out of 10 women work at some time in their lives, they are an almost limitless source of new agents.Occidental also advertises in local papers to recruit directly from the community, and direct mail is used to reinforce the newspaper ads. In the recruiting process, the firm employs personality profile questionnaires from a company called Computer Diversified Services, Inc. They help in furnishing a total picture of the individual’s behavior traits. Naturally, recruiting is wasted without good training. Product knowledge and enthusiasm, are companions in producing success in any type of sales.
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Maggetti, John N.
Full text: [Insurance Marketing] Jun 1980
Colored, Textured Paper Increases DM Results
Intermarket, a marketing research and development firm, recently coordinated a series of direct mail tests to determine the effects of using other-than-plain-white paper. A number of direct mailers were located who were willing to use colored and/or textured stock for parts of mailings normally using only white stock. A range of improvement from relatively minor to a high of 142% was recorded for colored and/or textured paper over white, with only 1 small subsection showing white paper outpulling colored and/or textured stock.In a test conducted by Paramount International Coin Inc., the use of a yellow textured stock produced an improvement in response of 46.25% and an additional $12,765 in sales. A test by 3M Company, St. Paul, Minnesota, of gray vellum cover stock produced a 20% improvement. In another test by Miami University, Oxford, Ohio, white textured stock showed an improvement in dollars donated of 16.8% over white offset stock. Mailers should consider testing different colors and textures in their own mailings.
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Headley, Robert I.
Full text: [Direct Marketing] Jun 1980
Survival at Your Fingertips
Even though many managers have reduced their outside sales force, they do not need to give up effective personal selling which can be accomplished by telephone marketing. The Louisiana National Bank (LNB) has achieved success with telephone marketing of a telephone bill-paying service called the Bill System. LNB relied on TV and print advertising heavily and conducted an intensive direct mail campaign. Telephone marketing was used as a supplement to the other promotional media.The ideal medium for selling the Bill System was the telephone because it provided 2-way communication without resorting to expensive door-to-door sales. The calls stimulated an honest, informative dialogue between buyer and seller. The cost per new account opened was less than for any other media tested. Direct mail opened the door, but follow-up by telephone increased results by nearly 7 times. Three separate bank services were sold during the same call, and the calls reinforced the consumer-oriented image of the bank. Telephone marketing combines the flexibility of a sales visit with the accountability of direct mail with less expense.
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Roman, Murray
Full text: [S & MM. Sales & Marketing Management] Jun 9, 1980
Direct Marketing Gets Straight to the Point
The Direct Mail Marketing Association (DMMA) estimates that $2 billion in business campaigns will account for half of the $100 billion 1980 sales volume for direct response. In 1977 McGraw-Hill estimated that the cost of an industrial sales call was $96.79. Today’s figure is $115. Businesses have found direct marketing an attractive alternative to sales calls. Direct mail’s immediacy is one of its advantages, as well as the ability to target better than trade magazines. Narrowing the target audience is important in business-to business advertising. A good list may bring more success to the business-to-business direct marketer than a salesman. Direct response is used by many corporations to find sales leads on 3 levels. The first aims at the prospect whose sale may not be substantial enough to require a salesman. The coupon he returns tells the company whether or not to send a second level of mailings, and perhaps make a sales call. The third level is the ”really hot prospect” who may receive a more expensive mailing. The prime prospect frequently gets a series of elaborate mailings.Actual selling by mail, for products with low commission potential, is the largest growth area in business-to-business direct mail. Direct marketing experts caution that cost-effectiveness decreases as mailing lists grow.
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Kirkeby, Marc
Full text: [Advertising Age] Jun 9, 1980
How to Calculate the ‘Half-Life’ of Direct Mailings
Each direct mailing has a ”half-life,” the point at which half of the responses will come in. This half-life is virtually certain and allows marketers to judge the success of a mailing shortly after receipt of the first response. An illustration of the response curve shows a swiftly rising response at the beginning of the period, followed by a slow descent and then followed by a long tail.To determine the half-life of mailings, there are 5 rules to follow: 1. Drop all mailings on the same day. 2. Record responses every day for each key. 3. Ensure that the recordkeeping includes cumulative responses by key and total and some easy visual means to identify responses. 4. Make sure that the posting record includes information about mailing description, description of the variable involved, total quantity ordered and mailed, and the estimated cost of the mailing package. 5. Bind all of the information into a book so that all of it can be reviewed at a later date. A series of mailings, unlike one-time mailings, are difficult to measure in the testing stage, but the charting of half-lives can still be useful.
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Burnett, Ed
Full text: [Marketing News] Jun 27, 1980
Continental Panache for a ‘Turn Off’ Product
Storage and materials handling has become a more important subject to European industrialists, particularly in Britain, since Dexion Group began its repositioning campaign. Dexion had an image as a shelving manufacturer, and the storage and materials handling equipment company faced indifference by senior management in manufacturing and distribution industries. The objectives of the Dexion repositioning campaign were: 1. to give the company an image as complete system design and installation experts, and 2. to make industry more aware of the overall importance of storage and materials handling.A broad media attack was launched, featuring Dexion’s capabilities of solving materials storage and handling problems and capitalizing on subjects which were guaranteed to capture business leaders’ attention. A press relations campaign followed, including feature articles and interviews about Dexion in leading business publications. A second strategy, designed to make direct contact with those who had been influenced by the media campaign, was a series of VIP seminars developed as a traveling roadshow with guest speakers, audio visuals and a professional coordinator to introduce speakers and field questions. The multi-media approach of the Dexion campaign fulfilled both corporate communications and product marketing purposes, enabling Dexion to reach both top level and operating level managements.
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Isherwood, Martin
Full text: [Industrial Marketing] Jul 1980
Fat Latin Profits for U.S. Agribusiness
American agribusiness companies are formulating a new marketing strategy for Latin America in response to changes there. The new strategy is part of an effort to control food merchandising in 2 major areas: 1. Latin American exports of sugar, bananas, coffee, and vegetables, and 2. Latin American consumption of branded products of soft drinks, infant formula, and prepared foods. This effort accompanies a gradual shift by US-based transnational corporations out of direct food production and processing. However, this marketing strategy is expected to exacerbate the continent’s basic problems of elite control over land and extensive malnutrition. US transnational agribusiness corporations have consistently tried to establish and improve a worldwide system of distribution. This system has been simplified by the emergence of supermarket chains, which have joined with transnationals to develop marketing campaigns to create brand awareness for most Latin American exports. The development of the Latin American consumer market for branded products and prepared foods has come under attack because local culture, nutrition and employment is being undermined by the US agribusiness.
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Frundt, Henry
Full text: [Business and Society Review] Summer 1980
Co-op Mailing: Giving Money Away Is Good Business
A co-op mailing of cents-off store coupons to 3 million Canadian households in May was conducted by McIntyre & Dodd. The average envelope consisted of coupons with a face value totaling $5.67. Coupons distributed through co-op mailings were second in percent of redemption to in-pack coupons, according to 1979 figures from the Nielson Clearing House. There appears to be about a 20% increase in redemption of mailed coupons in 1980 due probably to an increase in distributions and overall redemptions both. There has been a rapid growth in mail distributed coupons because co-op mailings produce results for marketers. The most potent and expensive tools for a grocery product marketing manager are product samples and coupons. As the number of advertisers per mailing increases, the cost of participation actually decreases. Mailings can also contain product samples whose size is restricted by postal regulations.
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McIntyre, Randall
Full text: [Sales & Marketing Management in Canada] Aug 1980
Planned Giving Officer Should Use Economic Sense
Elements necessary to be an effective planned giving officer are: 1. honesty in determining if you and the position are suited for each other, 2. commitment to planned giving as a career, 3. training to learn technical aspects of plans and how to make application to the donor’s needs, 4. support of the chief executive officer, the business officer, the managers in other departments, and the board of trustees, 5. a sound marketing program using the approach of wills, and 6. alertness to new prospects. A new business endeavor or planned giving campaign should have 3 main elements: 1. planning which is the most essential beginning to any business undertaking, 2. marketing which includes direct mail, articles and advertisements, will clinics, and personal contact, and 3. management, with the development officer displaying leadership and dedication that will inspire others.
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Sharpe, Robert F.
Full text: [Fund Raising Management] Aug 1980
Identify Super Donors Through Direct Mail
Direct mail can be an effective means to target deferred giving prospects. However, a deferred giving promotion utilizing direct mail should be considered an investment with no anticipation of return for possibly 3 years or more. The potential audience for deferred giving promotion is somewhere between 1% an 3% of a total name file. Previous donors are the best prospects with likely candidates in that group being: 1. widows, 2. individuals of modest means, and 3. those who have made memorial gifts. The most personal appeal possible should be mailed to the selected audience. Depending upon the size of the audience an autotyped letter with a personalized signature and/or note could be used. Brochures should be included, and mailings should be at least on a quarterly basis. Other methods of promotion should be used as well. A total marketing program should be developed using: 1. magazine ads and articles, 2. radio and television, 3. personal contact, 4. telephone calls, and 5. special events.
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Bell, Herb
Full text: [Fund Raising Management] Aug 1980
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