Four Who Buck Convention with Savvy and Style
The increase of US wineries has created a clogged market. Any shakeout will affect those with lesser quality wines and weak marketing strategies. However, 4 savvy wineries that apply innovative marketing techniques to sell their high quality products are expected to survive the crunch and prosper. Benmarl Wine Co. (Marlboro, New York) has been able to expand without long-term debt. Sonoma Vineyards sells via direct mail and includes personalized labeling. Another likely winner is Cedar Hill Wine Co. (Cleveland Heights, Ohio), whose owner, Thomas Wykoff, markets the products of the Chateau Lagniappe winery through the Au Provence restaurant – all in the same building. This operation is purposefully small but nationally renown. A 4th survival candidate is Robert Mondavi Winery, which in a joint wine venture with Chateau Mouton Rothschild, launched a campaign that touted 2,000 cases of ancient wine that will not be delivered to buyers until spring of 1983. Mondavi’s multifaceted public relations program includes cooking and wine-making seminars, sponsorship of jazz festivals, and distribution of wines to critics and food editors.
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Goldwyn, Craig
Full text: [Advertising Age] Jan 10, 1983
First Federal repositions
First Federal of Chicago has changed its five-year-old advertising theme “its nice to have First Federal nearby” to the new theme “First Federal- investments for your life.” The savings and loan association adopted the new campaign to position itself as an institution with competitive and attractive investment options. In Chicago, TV, radio, newspaper, and outdoor advertising will be used. Radio and newspaper ads will be placed statewide.
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Anonymous
Full text: [Advertising Age] Jan 10, 1983
Would You Buy from a Catalog?
Direct marketers have been very successful in selling to an affluent market. It is obvious by the number of long-running direct-response campaigns that the affluent market is responsive. American Express, Allstate, and American Telephone & Telegraph all use direct response television advertising to sell high ticket products and services. Direct response has been an ideal way of reaching educated audiences. It is also a very effective method of introducing relatively expensive products. Pocket calculators were first sold through mail order and then were available in retail distribution. Direct mail is a cost-effective way to introduce a new innovative product to the consumer. The advertiser has almost immediate results. Direct marketing to the affluent involves 2 steps: 1. the creation of an advertisement that will solicit inquiries, and 2. the mailing of a package of information that contains an order form. Almost any high-priced item can be sold through such a plan.
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Eicoff, Alvin M.
Full text: [Advertising Age] Jan 17, 1983
Extolling the Joys of Football in May
An extensive advertising campaign is being launched to persuade the people of Chicago, Illinois, of the legitimacy of the fledgling United States Football League (USFL), as well as the desirability of attending games of the league’s local entry, the Blitz. George Allen will coach the Blitz and is also a part owner. The elders of the USFL have gone to considerable expense and effort to present their league as a first-rate operation. They have selected 12 major markets, leased major stadiums, and hired respected coaches. Some snags have already been encountered, such as the firing of the Blitz marketing consultant, Patrick Mulcahy. A decision was then made to hire Ted Podleski, who had previously served as general manager of the San Diego Clippers of the National Basketball Association. Podleski elected to sell with a broad sweep. He increased spending on direct mail and geared newspaper and radio ads to several different audiences. In addition, personal visits were arranged with drivetime disc jockeys.
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Shapiro, Michael
Full text: [Advertising Age] Jan 24, 1983
Fisons Gets the Killer Instinct
Fisons manufactures pharmaceuticals, scientific equipment, and garden products. In the latter area, Fisons’ reputation has been that of a ”green-fingered” company because it helps things to grow, but 4 new insecticides and 2 herbicides have been added to its list of products. Becoming involved in garden chemicals is one of several expansionary moves brought about by internal reorganization in 1977. At that time, John Gerry was recruited to direct the marketing department in Fisons’ horticultural division, and he made some important changes. First, he canceled the launch of 3 products that promised no long-term payoffs. He then identified the 5 market opportunities: 1. added-value peat products for the US, 2. house plant care, 3. garden shrub production, 4. garden chemicals, and 5. multi-purpose composts. In addition to these changes, the horticulture division has added its first public relations agency, Kingsway, and moved its advertising account to Gold Greenless Trot.
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Gofton, Ken
Full text: [Marketing] Jan 27, 1983
Long-Range Plan Spells Success for Business DM
According to Lester Wunderman, of Wunderman, Ricotta & Kline (New York City, New York), business and industrial direct marketing (DM) programs most often achieve success via: 1. a sustained information flow, 2. consistent goodwill, and 3. long-term promotional and selling efforts. Business-to-business DM provides a unique opportunity to establish and build a strong image with decision makers in target organizations. The most effective DM efforts are part of a coordinated structure which includes: 1. mail, 2. telephone contact, 3. advertising, 4. trade shows, and 5. personal visits. A thorough analysis of the prospect base allows a marketer to better position the company and its products in relation to the true potential customers’ real needs. A theme, slogan, andr graphic approach can be used for a year or more, with variations for different prospects’ needs. A 2-pronged, sustained attack – one for fair-potential prospects and one for best-prospects – can rechannel budgetary resources into greatly improved and lasting sales results.
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Anonymous
Full text: [Zip Target Marketing] Feb 1983
Comprehensive ”Kit” Guides Distributors’ DM Program
Renewed interest in direct marketing (DM) and its potential benefits has caused some large US corporations to develop effective DM programs. Such DM programs can be particularly advantageous when applied within a nationwide wholesale and retail distribution network. General Electric Co. (GE), for example, has designed the Direct Mail Planning Kit for GE Lamp Distributors in conjunction with DM agency John Klein & Associates Inc. of Cleveland, Ohio. The GE program comprises both a DM ”crash course” and a step-by-step guide to mailing a series of promotional materials with a minimum of time and expense. GE has also developed a follow-up telephone campaign to help increase sales. GE’s DM program is applicable to both existing customers and prospects. The importance of list development and maintenance is stressed. The program also helps users project costs and other economies of DM, such as goals and planning. Trained GE field representatives explain the DM program to distributors, as well as provide extensive instruction. The program’s mailers are continually updated; some mailers are phased out as new items are developed.
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Heckler, Alison W.
Full text: [Zip Target Marketing] Feb 1983
Business-to-Business DM: The State of the Art
According to a recent DMA Business ndustrial Council survey, nearly 50% of the 218 responding companies allocate at least 11/2 of their advertising budgets to direct mail (DM) expenses. Some 85% of respondents reported using DM programs to generate inquiries and leads. Almost 66% of respondents use research techniques (i.e., opinion samples, mail surveys, telephone research) prior to launching new DM campaigns. Of 188 respondents, 66% almost always determined specific goals, strategies, and budgets before pursuing DM efforts. Some 69% of respondents systematically evaluated strategies. Computer systems or programs are used to evaluate DM campaigns by 57%. About 96% of respondents maintain house lists, and almost 80% rent or buy lists. Respondents reported no difference in the quality of leads generated from lists rented or purchased from: 1. trade publications, 2. compilers, and 3. direct response companies. However, most respondents failed to know the quality of leads obtained from these sources.
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Anonymous
Full text: [Zip Target Marketing] Feb 1983
Mitsubishi Enters the Auto Market with Cunningham & Walsh
Mitsubishi Motor Sales of America (MMSA) is joining the US automobile sales market with the goal of being on the leading edge of automotive technology and design. MMSA’s marketing objective is quite direct: to offer the right products for the right markets. MMSA and its advertising agency, Cunningham & Walsh (C&W), evaluated market surveys closely in a serious effort to properly position the new vehicles. C&W is especially conscious of the long-term image and is aiming for upper-end positioning. MMSA believes that the US market lacks cars with both real value and excitement and thinks its cars can fill a spot not already occupied. The initial promotion of Mitsubishis is being limited to television and print advertising in order for the program to be visually captivating. The cars are placed in the direct foreground of both television and print advertisements with no other distractions. The major theme for the campaign is ”Achieve Mitsubishi” which is expected to have a strong connection to the personal lifestyle of most members of the baby boom generation.
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Stein, John
Full text: [Madison Avenue] Feb 1983
Tracking Direct Marketing’s Enviable Economics
Marketers are finding that the business ndustrial direct mail medium offers efficient, measurable solutions to clearly defined promotion problems. Direct response test results indicate that a company could reduce its cost-per-inquiry by about 25%. A direct marketing program can generate high quality leads. It can also reduce the cost of leads generated. It begins by determining what the customer wants to buy. The mail format should offer benefits, not features. The 2nd step is to identify target prospects. The company must decide who in the buying process makes the decisions in order to determine what format to use for the offer.
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Emerick, Tracy
Full text: [Industrial Marketing] Feb 1983
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