Direct Marketing Comes to Tracy-Locke
Larry Spiegel, senior vice president for marketing services at Tracy-Locke/BBDO (Dallas, Texas), has been experimenting with a volatile mixture of mass marketing, direct marketing, direct mail, geodemographics, and psychographics which he calls strategic marketing. Spiegel indicates that it may be the new wave of the 1980s and the key to agency survival in a decade of increasing media segmentation and audience fragmentation. Spiegel is recommending a heady combination of mass merchandising and direct marketing. During the 1980s, he envisions the overlay of direct marketing techniques on the already established and highly efficient mass media research. While network broadcast and magazines will continue to increase awareness, follow-ups with direct mail, telephone, cable, and satellite transmission of special audience commercial copy will make marketing a more complex and specific technique. Today’s world demands precision marketing. Campaigns will be run in various geographic areas based on different life styles, product tastes, and differences in the maturity of the product. The computer is and will continue to be a very important factor in making direct marketing approaches work.
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Anonymous
Full text: [Marketing & Media Decisions] Jun 1982
Sponsorship and Follow-Up Effects on Response Quality of Mail Surveys
A study was conducted to evaluate the quality of mail survey responses. The sample was made up of members of the general public selected from a telephone directory, and alumni of a university. Subjects received mail surveys on pharmacy preference; half of each group of subjects received surveys sponsored by the university, and the other half received surveys sponsored by a hypothetical marketing firm. The surveys included a paired comparison section to establish consistency of responses. Follow-up surveys were sent to subjects who did not respond within 3 weeks. Analysis revealed a significant degree of inconsistency for follow-up responses. The alumni group showed a somewhat higher degree of consistency by university sponsorship, indicating that response quality may be better when respondents are affiliated with the sponsoring agency. Results suggest that techniques used to increase response rate may not necessarily contribute to response quality.
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Armenakis, Achilles A.
Lett, William L.
Full text: [Journal of Business Research] Jun 1982
Test a Mailing Without a Brochure
Those who sell by mail, as opposed to using direct mail to obtain leads, need to do some daring testing. Spiraling costs of printing, paper, artwork, and related items dictate that simplified mailings be tested to determine if the present response should be kept or improved upon. For many years, the standard mail-order package consisted of a sales letter, brochure or flyer, order form and reply envelope, and maybe extras, such as a lift letter or free gift certificate; the standard package is now very expensive to send. Some mailers are finding that a brochure is not necessary. There are some suggestions that might be tested to save money: 1. Try a mailing that consists of only a sales letter, order form, and reply envelope. 2. Combine the selling of a letter with the telling of a brochure. 3. Try an illustrated letter. While some people may think that mailing a brochure without a letter will work, a brochure or flyer should not be used as the main selling ingredient.
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Brock, Luther
Full text: [Direct Marketing] Jun 1982
Postal Services Meet Challenge of Future
Those involved in direct mail must be concerned with the health and well-being of postal services in the US and throughout the world. While multi-media direct marketing will play an increasingly important role in the lives of direct mailers as electronic communication devices become increasingly pervasive, the services of the post offices will continue to provide the bedrock facilities needed for successful operations. For some years, a number of the postal services throughout the world have been facing unprecedented challenge and change. In some major nations, the postal establishment has been reconstituted as a semi-private corporation, with minimal government subsidies. In other countries, the mail services have been split off from the electronic communications areas and directed to go it alone. In the leading industrial nations, the postal services are being challenged by the private sector. There are a number of examples of how various post offices are meeting the new challenges and promoting their services with expertly done campaigns. Canada Post and Australia Post are good examples of this effort.
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Chait, Lawrence
Full text: [Direct Marketing] Jun 1982
Market Research Can Save Money, Increase Profits
The cost of developing and promoting a new product via direct mail continues to increase. Direct mailers are frequently faced with the reality of cutting back in the area of product development or market testing. Those who sell books, collectibles, records or any product where development costs or promotion costs – or both – are substantial, must face the reality that the costs and risks involved are going to increase and the options open to publishers and direct mailers are few. Sophisticated market research can provide a cost-effective and profit-producing solution. There are a number of research techniques open to direct mailers which may indicate the potential acceptance of a new product and increase ultimate profits. These include: 1. new product concept testing, which involves using a type product questionnaire which asks respondents to evaluate a number of new product concepts, 2. a mail-order buyers survey, 3. product design surveys, and 4. editorial research.
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Doscher, Robert S.
Full text: [Direct Marketing] Jun 1982
Cooperative Promotions: To Cooperate or Litigate
Because of the increasing costs of all forms of customer communication, marketers are expanding their involvement in cooperative promotions, especially cooperative advertisements. Cooperative advertisements have been hailed as an aid in increasing the flow of choice selection information to the consumer. Cooperative advertising has been criticized as being restrictive and encouraging greater standardization. Some prominent marketers have strong reservations about cooperative advertising because of the economic reality that the better financially endowed firms have an advantage in providing subsidies. Such economic leverage could tend to crowd out smaller firms which might have high quality merchandise to offer but no cooperative advertising money to support a public awareness campaign. Congress, the Federal Trade Commission (FTC), and the courts have tried to equalize this market reality. Marketers involved in cooperative promotions should be aware of their legal responsibilities in this area. Cooperative promotional programs must comply with FTC guidelines. The plan must be available to competing customers and it must be determined to whom the plan should be made available.
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Posch, Robert
Full text: [Direct Marketing] Jun 1982
How to Sell the Rep Who Doesn’t Want You
Sometimes a firm finds an independent representative (rep) agency that looks just right to sell its product, but the agency turns down the offer. There are a number of alternatives open to the marketer. Perhaps the rep just needs convincing, so the manufacturer must make a strong effort to sell the rep on the benefits of associating with the manufacturer’s firm. Two basic assets are needed to arouse the rep’s interest – sufficient sales base in the territory and a well-developed rep marketing-support program. A good way to judge the quality of the rep marketing program is to review how it is succeeding with other reps. Too many reps fail because the training program they were offered was poor or, initially, they were a poor choice to sell the product line. If the product line to be sold is a new one, a rep should be chosen who already has a line of products to sell that will fit well with the new one. The manufacturer should undertake a special introductory direct mail campaign to help the rep get the new offering off the ground. The manufacturer should also be patient, selecting and investigating each potential rep with care; a good sales pitch is also necessary to sell the firm to potential candidates.
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Hitchcock, Earl B.
Full text: [S & MM. Sales & Marketing Management] Jun 7, 1982
Direct Mail Leaves Its Indelible Stamp
Direct mail has become more legitimate over the last several years. Recent surveys of business indicate that direct mail has impact, and that is good news to companies engaged in business-to-business selling. The sales call, the traditional method, has become costly. More company dollars are being earmarked for direct mail campaigns. For example, John Vacca could not be more enthusiastic about direct mail as a profit builder. He is marketing director of Minolta Business Systems, Mahwah, New Jersey. He indicates that 1981 was the best in the history of the company and attributes that success to direct mail. Direct mail receives similar raves from Digital Equipment Corp.
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Helming, Ann
Full text: [Advertising Age] Jun 14, 1982
Direct mail leaves its indelible stamp: as a marketing tool, it’s holding its own
With the cost of a sales call now $150, and business letters costing $6.63, more companies are using direct mail. It can be less expensive than other advertising techniques and is the most measurable. Minolta Business Systems attributes its success in 1981 to a new direct mail campaign. Response from 375,000 carefully chosen prospects was 2.8%. Digital Equipment Corp. achieved 6-7% response to its mailing to 2,500 prospects. Adding television commercials with 800 numbers to the campaign can increase response as much as 50%.
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Helming, Ann
Full text: [Advertising Age] Jun 14, 1982
Magazine Mailing Wraps It All Up
Clive Brockdorff, through his Magazine Mailing company, claims to be a pioneer in the polythene-wrapping of brochures, magazines, and the like. Advantages of polythene over paper wrappers for mailing include: 1. reduced weight, 2. weatherproofing, 3. display of contents, and 4. cost effectiveness. The use of polythene wrapping for mailing has grown rapidly in the past 10 years and is likely to continue to do so. Magazine Mailing has sites in Norwich and Kent. The 2 sites work together for really large contracts. Brockdorff claims that Magazine Mailing was the first to offer off-the-shelf self-sealing envelopes. The operation, called Transmail, has been very successful, according to Brockdorff. Marketing was relatively simple in the beginning, but 2 sales managers have now been employed. A telephone sales campaign has been recently run, with other marketing activities including a limited amount of advertising in the trade and technical press, and a loose insert campaign. Three direct mail campaigns have been run in the past 6 months. Recognizing the problems which he may face with Magazine Mailing, Brockdorff is diversifying into related activities.
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Lace, Geoffrey
Full text: [Marketing] Jun 17, 1982
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