Industrial Marketing Survey: Business/Industrial Direct Response Promotion
An Industrial Marketing survey of its readers revealed that more than 80% of business/industrial marketers use some form of direct response marketing. However, only around 45% of these direct response marketing users set any goals or objectives to measure their results. Over half of the respondents reported increased 1982 direct response budgets, with most increases spent on direct response publication advertising and direct mail. The survey responses indicated the most common objective for direct response campaigns was lead generation for salespeople and distributors. The size of the prospect list was cited as the most important factor in determining whether or not to use direct mail, followed by: 1. product price, 2. sales channel, and 3. geographic spread. Direct mail use was characterized by: 1. using a computerized letter, 2. naming a specific person, 3. addressing mail to title only, and 4. mailing first class. Most all respondents reported use of an outside agency to help implement their direct response efforts.
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Full text: [Industrial Marketing] Aug 1982
How to reach the marketplace through direct marketing
Direct mail campaigns can lower the cost of a sales call by 25% and can lead to profitable commercial accounts. However, a campaign should be planned well, and should include setting goals, targeting markets, setting up both a mailing schedule and a follow-up schedule, and tracking results. Professional materials should be used, but those materials that look like advertisements should be avoided. Mailings should be directed to a specific person and should be mailed first class. Costs can be pared by re-using design work and by planning more than one campaign at a time.
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Barto, Jo E.
Full text: [Independent Banker] Aug 1982
Six reasons to think before you switch
To compete with money market mutual funds, Wilbur National Bank, Oneonta, New York, creates an advertising and direct mail campaign that emphasizes its certificates’ “numerous” advantages over the funds which include guaranteed rates, instant liquidity, safety, no fee, and local reinvestment. The advertisements bring in customer questions and make consumers aware of the bank’s ability to compete effectively.
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Full text: [Bank Marketing] Aug 1982
Business May Be Rocky – But It’s Still Rollin’: The Record Industry Is Busy Fighting the Blues
Two basic questions are facing the American recording industry today: 1. Has the downturn that began after the peak year of 1978 finally bottomed out? 2. How is the industry preparing for a better position through the rest of the 1980s? Sales of records and prerecorded tapes in 1982 are down 20% from 1981, a nongrowth year itself. Michael Kapp, president of the special products division of Warner Brothers, has worked with the University of Illinois’ Institute of Communications Research to develop hard data on record and tape consumers. Their findings have included: 1. Married people buy more records than single people. 2. Some 58% of the US population over 10 years old bought a record or prerecorded tape within 24 months of the survey. 3. While teenagers account for only 24% of recorded music sales, people 30 to 39 account for 25%. Television is being used more as a marketing medium and there are plans for direct mail campaigns. Some business is being lost by those who make tapes at home using unrecorded cassettes. Bills have been introduced in Congress to stop this practice, but a quick resolution is unlikely, and the industry may simply have to adjust.
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Full text: [Advertising Age] Aug 2, 1982
Research and Testing Are the Keys to Business-to-Business Mailing Success
Testing and research are the main factors in creating a successful mailing package, although many firms ignore this field. The long-term results of testing and research can easily justify the increased costs and labor. Part of the problem connected with the direct-mail approach is that it has never really fit into a particular department. It is unclear whether it belongs in the advertising budget or the sales or marketing department. However, competition is now forcing the marketer to invest money into the research and development of direct mailing. The development of a new direct-mailing campaign can be initiated by creating 2 different formats to represent the same idea. Create a dynamic response offer so that the response to the different formats can be tested. Select prospects and ask their opinion on the 2 packages being considered. It is important that the mailing is practical, with all necessary information listed in the ”main piece”; this should help to establish continuing campaigns built around themes or slogans.
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Full text: [Zip] Sep 1982
Focus: continuous marketing-key to a successful ATM program
Within one month of offering its ATM service, the Green Machine, John Deere Employees Credit Union had issued cards and PINS to 25% of its members, and its monthly transactions were above national averages. The marketing approach, which included a demonstration machine to encourage use, a direct mail campaign, and a grand prize giveaway, is a continuous effort. To date, 40% of the 31,347 members have been issued cards.
Davis, Thomas C.
Full text: [Credit Union Management] Sep 1982
If It’s Classic, It Could Be Rogers
The success of Peter Rogers Associates can be measured by the success of Echo Scarfs, Bottega Veneta leather goods, and Vidal Sassoon Inc. The staff has grown from 2 to 26, with billings of $25 million. The agency has maintained a clear, quality-oriented style and position in its own market. The ads the agency creates are the most visible reflections of this style. Rogers believes that simple graphics with brief, direct copy make the most effective ads. The careful selection of clients is also indicative of Rogers’ style. He will only accept ”blue chip” accounts. While Rogers gave up his position of creative director, he is still personally involved in the accounts. He lets the client get involved in the creative development of the ads, which is important to designers. While Rogers views marketing as nothing more than common sense, he has become more accommodating to the realities of the marketplace and more accepting of the needs and wants of larger and more sophisticated clients.
Full text: [Advertising Age] Sep 6, 1982
Securicor Drives into Car Phone Retailing
Securicor, best known for its security guards, cash-in-transit and express parcels services, is on a major drive to secure a dominant share of the growing market for in-car communications. The company plans to open up at least 20 Securicor Carphone shops in key UK markets by January 1983, which will put car telephone and radiotelephone services into retail outlets for the first time. A joint venture with British Telecom (BT), called Securitel, will offer nationwide direct dialing service for car telephone owners by 1984, when BT’s extended radiotelephone frequencies will have been given an official go-ahead by the government. Don Hockman Creative Marketing will be instrumental in launching a national press advertising campaign to coincide with the opening of the first 10 Securicor Carphone outlets. The Carphone operation is the company’s first real move into retailing and marks yet another significant development in its strategy of diversification.
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Full text: [Marketing] Sep 23, 1982
Ideal bill-paying use aired
Providence Savings has entered Phase II of its “Pay-By-Phone” promotion and hopes to have 1,000-1,500 accounts and 8.6% market share by the end of the year. Elements of the internal promotion include: 1) a telephone campaign to pay-by-phone customers to add their other vendors to the list at no cost (people are averaging six transactions per month compared to an initial estimate of three); 2) an inducement to employees of 15 per merchant and $1 per sign-up; and 3) statement stuffers to NOW customers emphasizing economies of scale with volume. The target market is the 25-45 age bracket, which has a high bill volume but low bill sizes of less than $300.
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Full text: [Bank Advertising News] Sep 27, 1982
Introducing New Operating Procedures: Dental Services Cast in New Mold
Shopping mall dental centers, dental departments in retail stores, and health maintenance organizations (HMOs) provide dental services at lower costs than at traditional private practices. Most of the retail dental centers combine aggressive marketing with convenient hours and location. The number of such centers has increased 44% since mid-1981. Stores lease space to an administrator who rents to a dentist or group of dentists. Success depends on visibility, access, and mass marketing. Pro-Dex Inc. (in California Sears stores) has developed an advertising campaign relying heavily on instore and mall advertising. Dentalworks (in New Jersey and Pennsylvania) originally emphasized low cost in its marketing activities; now the focus is on quality, accessibility, and convenience. Omnidentix Systems Corp. (Boston, Massachusetts) tries to convince a complacent public to seek dental care. HMOs tend to treat dental care as secondary and have undertaken little promotional activity to stimulate interest. The HMO instead relies on its sales force and direct mail campaigns.
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Full text: [Advertising Age] Sep 27, 1982