Printing: Caught Up in a Web
Web press printing usually is used for press runs of 70,000 or more, but the process can be used successfully for shorter runs. Wilderness Log Homes (Plymouth, Wisconsin) uses web presses to print its 30,000-run catalog, which includes 4-color photographs, extensive text, and 2-color diagrams on a 2nd paper stock. The company wanted web press prices without sacrificing quality. Bids were solicited from 12 printers, and that list narrowed to 4 that had solid reputations. Tim Poole, Wilderness’ print manager, inspected all 4 printers’ facilities and found all satisfactory, but only one agreed to print on a web press. The 30,000 run is too short for most printers. Poole personally watches each job as it is printed, and he works closely with the printer to check quality.
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Hanley, Kevin
Full text: [Target Marketing] Jul 1987
Mitsubishi Electric’s Air Circuit Breaker Campaign
Mitsubishi Electric’s (UK) air circuit breaker campaign demonstrates how concentration on target accounts can achieve dominance in a fragmented industrial market, for a promotional expenditure that amounts to a small percentage of added sales. In 1984, when Mitsubishi Electric commanded only 6.2% of the growth market for air circuit breakers, the company embarked on a campaign designed to increase market share to 15% by 1987 and to 20% by 1990. To increase awareness and stimulate interest in the company’s product, a “burst” advertising approach, in which all communication is concentrated into a short time period, was used. Using mailshot, targeted customers were mailed a series of small but useful gifts, such as a tape measure attached to a card that read: “HOW DO YOUR CIRCUIT BREAKERS MEASURE UP TO MITSUBISHI?” The highly successful campaign helped Mitsubishi to reach its 1990 target of a 20% share before the end of 1986 — only 6 months after its implementation.
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Hill, Nigel
Full text: [Industrial Marketing Digest] 3rd Quarter 1987
How Glaxovet Defended Dictol’s Monopoly
Until a couple of years ago, Glaxovet’s vaccine Dictol had enjoyed more than a quarter of a century’s monopoly in the prevention of husk disease in calves. When a rival vaccine, Intervet’s Huskvac, appeared on the market at a lower price, Glaxovet embarked upon a campaign designed to: 1. reassure existing users that Dictol was the right choice, 2. persuade nonusers to select Dictol, and 3. demonstrate to veterinarians the strong support for veterinary practices embodied in the campaign. In a direct mail campaign, known customers and prospects were sent cards asking for key data concerning their vets. In return for the information, a seasonal newsletter and special benefits were offered. Glaxovet’s 1987 season indicates that, thus far, Dictol has retained 92% of the market.
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Anonymous
Full text: [Industrial Marketing Digest] 3rd Quarter 1987
Advertising: Wang Makes It Work
In a 10-week advertising campaign ended in June 1987, Wang Laboratories used television, radio, print, and a direct-mail campaign to break away from the company’s image as a word processing company. The advertisements, conceived by the Hill, Holliday, Connors, Cosmopoulos agency, feature Wang’s salespeople using highly technical jargon to tell how they solved complex problems for customers. While some might find this technical language confusing, Wang wanted the ads to appeal to the management information systems and data processing people who are the ultimate buyers and users of their products. Since 90% of Wang’s business is now in technical products outside of word processing, the company needed to get that information into the marketplace. Though the bulk of new business was expected to stem from the direct-mail campaign that followed the ads, the TV and print ads generated approximately 2,000 telephone inquiries to the toll-free number in the ads.
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Woog, Dan
Full text: [High - Tech Marketing] Jul 1987
Ideas for Retailers: Acres of Diamonds (Part 2)
Most small businesses do not know what direct marketing is and how they should use it. With the help of a consultant, one retailer found out how valuable a database can be. The 4 files comprising the database are: 1. the prospect file, 2. the customer file, 3. the suppression file, and 4. the store file. The prospect file can be created from voting lists, zip codes, and list brokers, from which should be selected those prospects that most closely match the customer profile. The customer file is divided into: 1. a listing of which customers bought what, where, when, and how, 2. where the customers live, as well as other geographic and demographic information, and 3. all customers. For the listing, a computer may be able to pull off specific customers’ names on address labels. In using demographics/geographics, MBank Preston launched a marketing campaign for its individual retirement accounts by pinpointing its advertising to 3 zip codes. As a result, 65% of its business came from these areas. By carefully segmenting their databases, retailers can make effective use of direct marketing.
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Raphel, Murray
Full text: [Direct Marketing] Jul 1987
Ideas for retailers: acres of diamonds
Until recently direct marketing was unknown to most small retailers. Today they are interested in using this sales technique and find sources of prospective customers in voter registration lists, list brokers, and customer files. Zip codes and specific information about customers can help target the best prospects for a direct mail campaign.
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Raphael, Murray
Full text: [Direct Marketing] Jul 1987
Direct marketing news: AMEX’s Optima campaign hits with second wave
There are several ways by which value can be added to the marketing package without incurring reduced prices and margins. One way to add value is to develop products with differentiation. Criteria to ensure that the marketing investment will add value include: 1. Target customers must want the extra value. 2. The firm must be able to communicate the added value through the areas of branding, selling, advertising, sales promotion, and/or public relations. 3. The added value must not be easily copied. Value can be added in all elements of the marketing strategy, from pricing to promotion. Some strategies include: 1. product line extensions and the incorporation of new features in existing products, 2. better distribution, 3. joint promotions, 4. direct-mail advertising campaigns, 5. enhanced salesforce training, and 6. outstanding after-sale service. The development of strategies to add value depends on such factors as a supportive environment, a long-term outlook, and a customer-oriented philosophy.
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Anonymous
Full text: [Direct Marketing] Jul 1987
Add Value, Boost Margins
There are several ways by which value can be added to the marketing package without incurring reduced prices and margins. One way to add value is to develop products with differentiation. Criteria to ensure that the marketing investment will add value include: 1. Target customers must want the extra value. 2. The firm must be able to communicate the added value through the areas of branding, selling, advertising, sales promotion, and/or public relations. 3. The added value must not be easily copied. Value can be added in all elements of the marketing strategy, from pricing to promotion. Some strategies include: 1. product line extensions and the incorporation of new features in existing products, 2. better distribution, 3. joint promotions, 4. direct-mail advertising campaigns, 5. enhanced salesforce training, and 6. outstanding after-sale service. The development of strategies to add value depends on such factors as a supportive environment, a long-term outlook, and a customer-oriented philosophy.
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Hardy, Kenneth G.
Full text: [Business Quarterly] Summer 1987
Strategy vs. Copy: Making Choices Saves You Money
Since advance, pretest valuation of advertising copy is nearly impossible, a business usually ends up paying for the copywriter’s renown and reported performance. It has been difficult for business marketers to get the copy they need and to make a fair appraisal of the price they should pay. This situation: 1. discourages the employment of fresh, new writing talent, and 2. gives the well-established copywriter little incentive to innovate very much. However, one firm has devised a 2-phase system in which a creative client is told it will not have to commit in advance to a fully completed copy and art project. Also, neither the client nor the ad agency is obligated to decide in advance what the “best” creative tack is. In Phase One, the client gets a very tight comprehensive layout, with all strategy-delineating copy readable and in place, formatted and folded to replicate final form. Phase Two takes the creative modalities that have been chosen and puts them into final copy form.
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Alpert, Shell R.
Full text: [Business Marketing] Jul 1987
Harris/3M’s One-Two Punch: Products and Distribution
Harris Corp. and 3M Co. formed a 50/50 joint venture in January 1986 to give 3M’s copier and facsimile divisions room to grow. The merging of 3M’s products with Harris’ network of copier dealers removed a layer of cost, inventory, and management to create a more efficient operation. The venture has allowed the companies to maximize their complementary strengths. The strategy has been successful. Harris/3M expects to have sales of nearly $500 million in its first fiscal year, ending June 30, 1987. That figure is more than the venture’s original projections, and the company has moved into international markets more quickly than anticipated. Success is partly due to the company’s ability to cover its markets with a combined direct and dealer salesforce and to its knack for developing new products quickly.
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Anonymous
Full text: [Business Marketing] Jul 1987
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