Banks Turn to Phones, Mail as Branches Close
As California’s retail banks scale back their expensive networks of branches and, at the same time, try to attract more customers, they are increasingly turning to more direct solicitations by telephone and mail. Within the past year, Bank of America, Wells Fargo Bank and Crocker National Bank have either begun or significantly expanded their telemarketing and direct-mail efforts. In fact, BofA is using the telephone as the primary image in its current newspaper advertising for individual retirement accounts. Its recent ads show a telephone with the headline, “Now you can open IRA Plus right here.” (excerpt)
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Howe, Kenneth L.
Full text: [San Francisco Business Journal] Mar 25, 1985
Blair May Have Bitten Off More than It Can Chew
The Arthur D. Little consultancy is examining ADVO Inc., the troubled direct marketing operation of John Blair & Co. Little is examining ADVO without charge since it originally advocated what has been a terrible disappointment for Blair. At the time, it seemed prudent for Blair to use ADVO to compete with newspapers for heavy coupon advertisers, such as Maxwell House coffee. Large investments were made in ADVO’s expansion, but things went wrong; both marketing and management problems probably were to blame. Sales on network mail did not develop as fast as anticipated, and Blair found that, despite large infusions of cash, it could not get enough retail customers in some markets. A pricing war with other coupon marketers complicated the picture. There are no signs that coupon price wars are slowing, and Blair is trying to restructure, closing offices and trimming the number of homes it serves. It will try to rebuild ADVO, but rumors persist that Blair itself is to be acquired.
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Fabrikant, Geraldine
Full text: [Business Week] Mar 25, 1985
Louies Are a Yardstick
Winning a Louie can be gratifying, but direct benefits are “fleeting,” says one of this year’s recipients. Certainly, if feels good to be classed among Louisville’s best designers, says Jean Henderson. And the award reflects well on Dulaney Advertising & Public Relations, where Henderson serves as creative director. This year, Dulaney Advertising won a Louie through Henderson’s efforts for Claiborne Farm of Paris, Ky. The agency’s one- and two-page four-color spreads for the renowned horse breeder won in the category of an advertising campaign in a trade, professional or business magazine. (excerpt)
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Ludvik, Jim
Full text: [Business First] Mar 25, 1985
Direct Response Advertising Agencies Optimistic
Such companies as General Foods, Nestles, Thomas J. Lipton, Sunkist, Whitman’s Chocolate, and R. J. Reynolds are using direct response marketing, and 18 of the 20 top general advertising agencies have either acquired or started up direct response divisions. Direct response will become one aspect of any total advertising campaign, and the use of such techniques will be determined on an individual product basis. Problems exist, however, with large corporation use of direct marketing, including: 1. the view of direct marketing as an alternative method rather than as a part of a process, 2. shortage of qualified personnel, 3. the lack of acceptance of the quality of direct marketing personnel in some agency divisions, 4. lack of understanding from firms that are used to more general marketing techniques, and 5. inaccurate reporting of agencies’ gross billings. Despite these problems, the agency heads of 6 direct response firms believe that direct response expenditures should experience growth of at least 15%-20% a year.
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Hanley, Kevin
Full text: [Zip Target Marketing] Apr 1985
A Premium Fulfillment Checklist: All Things Considered
Sales promotion requires planning at the pre-launch stage. Some of the steps of prelaunch include: 1. discussing copy and layout with fulfillment staff, 2. determining realistic postage, handling, and packaging figures, 3. pretesting, 4. determining if other product offers will be enclosed, 5. visiting redemption facilities, 6. reviewing all offer mandates, 7. confirming the number of weeks required for order fulfillment, 8. considering ”grief” accounts, 9. planning for data retrieval on demographics, 10. considering consequences of offer wording, and 11. checking form letters used to respond to inquiries. Ongoing activities include: 1. sending test orders, 2. visiting fulfillment sites, 3. checking packaging, 4. observing the handling of complaints, 5. restructuring reports, and 6. inspecting deliveries. Phaseout activities are handling leftover merchandise and putting collected data to appropriate use.
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Poretz, Melvin N.
Full text: [Zip Target Marketing] Apr 1985
What Exactly Is Telemarketing?
There are 2 types of telemarketing calls. Outbound (via local, long-distance, or WATS lines) consists of telecommunicators dialing out to existing or potential customers. Outbound telemarketing has the advantage of person-to-person contact. It is fast, flexible, responsive, and measurable. A successful outbound telemarketing campaign has 6 key factors that include, in order of importance: 1. the list, 2. the offer, 3. the communicator, 4. scripts, 5. fulfillment, and 6. analysis. Inbound, the 2nd type, represents a call from a customer from anywhere in the country (usually via a toll-free 800 number). The greatest advantage to inbound telemarketing is that every caller is essentially a self-qualified prospect. There are many telemarketing service bureaus that can eliminate the need for a firm to set up and staff an in-house telemarketing center. Trained professionals plan and execute the entire outbound and inbound program in-house or through a service bureau.
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Arnold, John W.
Full text: [Sales & Marketing Management in Canada] Apr 1985
American Women Say ”Yes” to Giorgio
Giorgio perfume was created by Fred and Gale Hayman and first offered in 1982 only at the Giorgio boutique in Beverly Hills. Since then, distribution has been enlarged selectively and sales have increased from $1 million in 1982, to $65 million in 1984. Sales projections for 1985 are at $110 million. The Haymans used a direct mail and scented strip advertising campaign to generate a demand for their perfume among upper demographic groups. Giorgio perfume may gain as much as 30% of the overall fragrance volume at stores with a Giorgio exclusive. Fred Hayman claims that the Giorgio exclusive provides increases in sales of totally unrelated products for its stores because it draws customers to seek out Giorgio distributors. Hayman does not seek distributors, but waits for them to request a Giorgio exclusive and to demonstrate their appropriateness. Giorgio has premiered in London and will soon be available throughout Europe. Giorgio has also developed a new fragrance for men.
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Reitman, Judith
Full text: [Marketing & Media Decisions] Spr 1985
Getting Back to Basic
Cable television customer dissatisfaction over expensive multi-pay packages has led local operators and multiple system operators (MSO) to a back-to-basics marketing strategy. Cable TV is now being sold mainly on its ability to attract viewers through its broad range of basic, advertiser-supported services. In marketing cable, a number of entities are now coordinating their approaches and objectives. For example, the Council for Cable Information (CCI) has taken a major step by promoting cable TV on a generic basis via radio and national TV using a market segmentation approach that targets different consumer groups – senior citizens, working mothers, and young professionals. The goal is to soften the market for a direct sales effort by cable operators by creating a perception of value about cable TV. The CCI campaign is being adapted for use in a variety of media by local operators and operator cooperatives, who must ”resell” their service to current customers every month as well as seek new subscribers. Viewership of ad-supported services increased 24% in 1983-1984, and viewing levels are likely to double in the next 5 years, while pay-TV growth is likely to be flat.
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Silverman, Fred
Full text: [Madison Avenue] Apr 1985
The Reply Card as Sales Lead Qualifier
Direct mail promotions are effective only if they provide salespeople with qualified leads. A properly used reply card will avoid poor sales leads. An offer of a free sample or a useful product is one way to get a completed reply card with enough information to help the salesforce. If a more detailed reply is needed, a sample can be mailed along with a questionnaire for the respondent to fill out. Such data can be used not only for sales leads but as an indicator of product usage and acceptance. Mailings that ask for responses can be effective if: 1. they encourage response by the use of a product-related offer, 2. the reply card is seen as an important part of the mailing package, 3. the reply card is clear and inviting to use, 4. only useful information is elicited, and 5. information is requested politely.
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Cole, Tony
Full text: [Industrial Marketing Digest] Second Quarter 1985
Dealer Incentives
Incentive Marketing’s most recent survey reveals that 1984 brought an upswing in both travel and merchandise offerings, and 1985 appears to be continuing the trend. Automotive industries led the growth in 1984. Nearly half (49%) of the respondents revealed that they direct their programs toward wholesalers or distributors. Increasing overall volume was the most popular objective cited by respondents, followed by supporting new product launches. The typical user of dealer incentives conducts 2 promotions annually. The planning of the dealer incentive promotion usually takes longer than the campaign itself. The largest number (28%) launch their promotions at the beginning of the calendar year. The unit cost of awards has generally increased, with a median rise from $1,200 to $1,500 for travel expenditures. Of the principal routes used to communicate campaign details, 64% chose to promote through the company salesforce. Most firms evaluate the results of the incentive programs using sales results.
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Anonymous
Full text: [Incentive Marketing] Apr 1985
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