How Direktbank Promotes Phone-or-Mail ONLY Banking
Direktbank was founded in the Netherlands as an institution where all banking activities are conducted by phone or mail. The concept evolved because of oversaturation of branch banks and because Netherlanders generally accept direct mail as a lifestyle. Research had indicated the reasons why customers avoided traditional banking: 1. inaccessibility, 2. lack of privacy, 3. long waiting lines, and 4. restricted hours. NCB, developer of Direktbank, promoted the new concept both through traditional advertising and direct marketing. The direct marketing campaign first sought to increase name recognition; the 2nd phase of the campaign involved offering inducements for opening accounts. The inducements prompted a conversion rate of 26%. After only 18 months of operation, the program has brought name recognition up to 75%; the direct marketing side of the operation has doubled serious contact with new customers. The conversion rate for these contacts is a very high 30%.
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Raphel, Murray
Full text: [Bank Marketing] Jul 1985
It’s back to weedeaters, pots and pans, as full cycle achieved, marketer says
Since deregulation, the competition for funds in Central Ohio has settled into a pattern very similar to that before deregulation, except that occasionally rate strategy is used to attract new money. State Savings Bank offers license plate fee rebates on auto loans over $5,000 at 12.95%, through limited print and radio advertisements. CD buyers are offered silver bars cast in the Statue of Liberty’s likeness. The silver bar premium campaign has brought in over $600,000 in three weeks, with a drop in deposits since interest rates have fallen.
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Anonymous
Full text: [Bank Advertising News] Jul 1, 1985
Where Global Obstacles Lie
Companies that decentralized in the 1970s are finding it difficult to centralize marketing efforts to take advantage of multinational markets. Such companies as American Express are trying to operate both local and centralized marketing efforts in conjunction with each other. Some have the central marketing department in an advisory capacity. Others have strong central guidance, with local branches handling consumer advertisements. Advertising agencies also have difficulty coping with clients whose businesses lack the appropriate structure for multinational promotion. Direct broadcast satellite systems are expected to bring vast changes to the way the European market is penetrated with advertising. Although European marketing directors rarely see Europe as a single entity, US and Japanese efforts are directed at Europe as a whole and may force a change in the European perspective. Many companies are reluctant to entrust all of their multinational advertising to a single agency. However, as media change, so must business marketing efforts.
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Jivani, Alkarim
Full text: [Marketing] Jul 4, 1985
Share Launches SeniorCare Ad Blitz
Share Health Plan of Iowa, a health maintenance organization with 20,000 subscribers in the Des Moines area, last week launched a saturating local campaign to promote Senior-Care, a product for Medicare recipients 65 years and older. While Share officials declined to name the budget for SeniorCare advertising in the area, Share Marketing Director Lee Green said the summer advertising blitz calls for weekly packages of 20 radio spots, 12 newspaper advertisements and 20 television commercials. Three direct mailings to 26,000 senior citizens in Polk and Warren counties have been scheduled, the first one slated to be sent this week. (excerpt)
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Herold, Doug
Full text: [Business Record] Jul 15, 1985
Thrift dangling free checking as loan bait
To attract new retail loan business, Commonwealth Federal Savings is offering free, non-interest-bearing checking with no minimum balance as one of seven different checking options. With a goal of doubling its 20,000 account base by summer’s end, the S&L had attracted 7,000 new accounts as of July 7. The free-checking option has been advertised through a news release and in a 600,000-piece direct mail campaign.
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Anonymous
Full text: [Bank Advertising News] Jul 15, 1985
Popeyes Strums Cajun Theme in Chicken
Challenged only moderately by Church’s Fried Chicken, Kentucky Fried Chicken rules the chicken business. The rest of the competition must scramble for business. Nobody tries harder for a share of the market than Popeyes Famous Fried Chicken & Biscuits, and the 13-year-old company presently has 501 stores throughout the US, Panama, Kuwait, and Canada. To differentiate itself from its many competitors, Popeyes (New Orleans, Louisiana) bases its promotion on the spicy Cajun taste of its product. Unfortunately, that spicy taste is being cannibalized by other firms. However, Popeyes expects to widen its client base. Doyle Dane Bernbach’s advertising campaign is based on product attributes and is aimed at younger customers. Popeyes operates special seminars to help its franchisees augment local marketing efforts. Marketing plans include in-store promotions, direct marketing, and community involvement. A new product, chicken nuggets, is expected by August 1985.
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Donovan, Sharon
Full text: [Advertising Age] Jul 15, 1985
Consumers Join the Paddington Generation
Paddington Corp.’s (New York) 1984 sales hit $326.8 million, up from last year’s $235 million, with its Baileys Original Irish cream liqueur commanding 50% of the cream liqueur market and its J&B Rare scotch whiskey 2nd only to Dewar’s in the scotch market. The company’s marketing efforts have targeted affluent 21-to-34-year-olds since former Pepsi-Cola Co. executives took over as Paddington’s chief executive officer and marketing vice-president. Paddington’s new advertising approach includes: 1. ads in Newsweek, People, and Time, 2. ads in local publications, including city magazines and Sunday magazine newspaper supplements, 3. a $2-million promotional sweepstakes via a direct-mail campaign, and 4. holiday advertisements for Baileys at Christmas and Mother’s Day. Paddington is participating in the Shopping Center Network’s traveling food-and-beverage festival in 75 cities to introduce to consumers a wide variety of recipes using Baileys liqueur, some of which can dispel the cold-weather image of cream liqueur.
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Bertrand, Kate
Full text: [Advertising Age] Jul 18, 1985
Brown-Forman Toasts Winning Philosophy/Catalog Sells Southern Comfort
The Brown-Forman Corp. (B-F) demands high performance standards for its liquor properties, which helps explain why it is one of the soundest and most profitable liquor companies. While it recently acquired Lenox Inc., B-F’s commitment is still to the liquor industry. The company carefully measures its advertising dollars and concentrates its resources on winners, such as: 1. Early Times and Old Forester Kentucky bourbons, 2. Canadian Mist Canadian whiskey, 3. Southern Comfort, and 4. Usher’s scotch. B-F has already begun raising prices in anticipation of the federal tax increase to minimize the shock of higher prices. It plans on reducing media advertising expenditures and shifting money to public relations, trade support, in-store promotions, and direct mail, which B-F finds an effective way to reach consumers. B-F has introduced the Paddle Wheel Shop catalog which includes over 100 gifts inspired by the classic South, about a dozen of which carry the Southern Comfort name.
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Kesler, Lori
Full text: [Advertising Age] Jul 18, 1985
Ringing Up Sales Through Use of Telemarketing
Although the telemarketing concept is not new, the use of structured telemarketing programs to sell insurance is. Some persons respond well to telemarketing who do not respond well to direct-mail marketing. The first step in telemarketing is analysis of current policyholder base, which is followed by list building and list buying. Telemarketing works best in combination with direct mail. The insurer should use a direct-mail campaign first and should follow up with a telemarketing program. Despite the benefits telemarketing offers, some insurance marketers are reluctant to use it due to fear of consumer response. However, they can team their insurance expertise with telemarketing training available from such sources as Direct Marketing Association and American Telephone & Telegraph Co. Besides increasing sales, telemarketing improves policyholder service and communications.
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Kester, Denise
Full text: [The National Underwriter] Jul 19, 1985
Loads on Their Minds
Much of the UK’s distribution industry has finally come to realize the importance of marketing. While the heavy end of the market is making little promotional effort, the parcel carriers and the high street delivery services are increasingly using sophisticated marketing techniques – especially the former. Television promotion has been used by some parcel carriers, but direct mail and the telephone are more common methods. Changes in the market make the situation more complex for the high street delivery services, more of which are moving to centralized warehousing and distribution. Firms like SPD and Lowfield are fighting for survival, but one area the parcel carriers will be unable to infringe upon will be dedicated services – marketing aimed at specific sectors. Dedicated service will determine the success or failure of the high street distributors. Specialist distributors, which can offer a total service, are increasingly in demand; the marketing must be sensitive, however. National Carriers Contract Services’ total service includes a mailer and a videotape.
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Simonds, Mark
Full text: [Marketing] Jul 25, 1985