L5.75m of New Business from a L7,000 Campaign
The prize-winning direct mail campaign mounted by the UK direct mail consultancy Brian Holland & Partners for Avis Car Leasing had several elements contributing to its success. Avis bought a file from Kompass – now Industrial Direct Mail Service (IDMS) – containing company information and addresses used in its mailing list. The IDMS list yielded the enquiries which resulted in contracts, thus becoming one of the campaign’s 6 success factors. The other factors, all creative, are: 1. the envelope, which had 3 details of importance: large size, elements which were similar to an airmail envelope, and very little clue to the identity of the sender, 2. the sales letter itself, 3. the inner mailshot, 4. the response mechanism, which urged the recipient to play the winning card from Avis, and 5. the reply envelope.
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Anonymous
Full text: [Industrial Marketing Digest] Fourth Quarter 1983
Hymatic Proxistor’s Struggle for National Distribution
In 1980, Hymatic Industrial Controls began to market its own proximity switches under the name Proxistor. Hymatic determined that using its own salesforce was uneconomical, so the search for distributors was set in motion. Hymatic put together an attractive package for distributors and worked closely with its advertising agency. The first campaign was aimed to please the early distributor recruits and concentrate on the replacement market where sales response to advertising would be immediate. Initially, Hymatic pursued far-away distributors and those who were carrying products that competed with or were complementary to their own. Hymatic’s target is 35 distributors; it now has 23. It also has added the original equipment market. Proxistors are driving direct competitors off the shelves. Hymatic has extended the product range into photoelectric switches. Illustrations.
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Anonymous
Full text: [Industrial Marketing Digest] Fourth Quarter 1983
Impact of Database Technology on List Life and List Usage
Overlaying mailing-list information in a database format for direct mail marketing purposes can increase list usage and efficiency. A database format allows marketers to use parts of lists that work and to eliminate those that do not. The database/information overlay technique can combine currently unusable lists with information from other lists, creating new segments to target. Matching files with a mass compiled file such as the Donnelley Marketing master file will result in a file that is geographically coded to the block group level. The Donnelley Marketing file consists of 70 million household records, 1980 census demographics, individual statistics, and telephone directory and automobile registration data. Examples of demographic data overlays that can be added to marketers’ individual mail response lists include: 1. age range, 2. length of residence, 3. dwelling unit size, 4. phone numbers, and 5. individual wealth rating. Because database networks are accessible over phone lines, they facilitate direct-reponse list selection and result in multiple targeted mailings.
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Dresden, Phillip N.
Full text: [Fund Raising Management] Oct 1983
Growth Rate of Ad Expenditure Single Digit for 3rd Year in Row
Japanese advertising expenditures in 1982 grew by just 6.5% over the previous year, making it the 3rd year in a row for single-digit growth. Television advertising expenditures (up 7.9%) and export advertising expenditures (up 6.9%) had slightly higher growths than in the previous year; however, newspaper (up 4.8%) and radio expenditures (up 5.2%) were smaller than in 1981. Newspaper expenditures were vigorous in: 1. precision/office machines, 2. banking/insurance, and 3. transport machinery. Campaign-type advertising in newspapers increased. Magazine advertising expenditures grew only 7.9% as the segmentation of the media continued. Advertisers looked for new ways to make effective use of the media, such as editorial-type advertisements and multiple ads. Radio advertising expenditures dropped to a single digit (5.2%) growth for the first time since 1976 because of slack spot advertising. Direct mail expenditures increased 6.8% over 1981 because of postage increases.
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Anonymous
Full text: [Dentsu Japan Marketing/Advertising] Fall 1983/Winter 1984
Marketing Share Drafts
Increasing competition has led many credit unions (CU) to develop strong share-draft marketing programs. IBM Endicott/Owego Employees Federal CU (Endicott, New York) used incentives to increase its share-draft accounts by 840. The campaign cost around $15,000. Atomic Workers CU (Idaho Falls, Idaho) increased its account dollar base by 68% with newspaper advertisements that challenged ads run by a local savings and loan association. Leaded crystal wine glasses were offered by Gallo Employees Federal CU (Modesto, California) in a promotion that resulted in 146 new accounts; that promotion cost only $4,339. Northeast Federal CU (Portsmouth, New Hampshire) targeted 3 different member groups by age and developed brochures to explain how the share-draft program helps each group. This ongoing campaign also is aimed at encouraging new members to sign up for share drafts.
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Anonymous
Full text: [Credit Union Magazine] Oct 1983
Have You Mastered Direct Mail’s Basic Mathematics?
Many companies obtain a lot of customer and marketing information, especially from their direct mail marketing programs. However, too many companies do not analyze that data as extensively as they could for planning and budgeting. Direct marketing techniques, including mail and telephone, can provide highly measurable information. The basic mathematics for planning direct mail programs is described. Using these techniques, it is possible to account for and analyze costs and target profit levels. It is also possible to determine the optimum promotion quantity by means of marginal productivity analysis, which involves simple calculations. Illustrations.
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Passavant, Pierre A.
Full text: [Business Marketing] Oct 1983
A Brit Reflects on Stateside Sell
Land Infrared Ltd. (UK), a manufacturer of industrial temperature measurement systems, wanted to explore the differences between industrial advertising and sales promotion techniques employed in the US and those used in the rest of the world. A representative from the publicity and publications department at the company’s head office was sent to work at the advertising agency handling Land’s US subsidiary. The US approach answers the different selling needs dictated by distance and accessibility of buying influences. Sales literature is extremely important to US marketing, and many companies use a strong sales brochure to ”walk” the prospect through the decision-making process. The brochure sells the prospect on the capabilities and benefits of the product and provides crucial technical information. Direct mail is a well-developed science in the US. Land Infrared found that the US approach could be adapted to the UK marketplace to benefit the company and consumers.
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Mulligan, Tom
Full text: [Business Marketing] Oct 1983
Wanted: A Few Bright Ideas
Direct marketing is a powerful and effective form of selling, the success of which depends upon selecting the right product. It does not have to be the cheapest product or one available only through the mail. Rather, it just needs to be one the seller can make a good offer on. Some successful products include: 1. two-in-one products, 2. unusual or interesting items, 3. wares that can be personalized, and 4. products that give a new dimension to an old idea. Products should have selling features that show up well in color advertisements. Marketers are continuing their search for products that will sell through catalogues or off-the-page. These products are rare because the recession has led to a lack of investment in factories that can produce the goods needed, and many suppliers in the Far East are more interested now in producing upmarket products.
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Rowney, Paul
Full text: [Marketing] Oct 6, 1983
Taking the Path of Life
While non-life insurers have traditionally relied on brokers to sell their products, they are starting to use more direct ways of reaching their customers. One reason for this change is that insurance brokers have not been producing enough volume to satisfy the insurance companies at a time when severe competition and poor results from commercial business have been starving the industry of premium income. General insurers are turning increasingly toward direct response since it is not cost effective to use direct salespeople. However, selling insurance by direct response is very complex. The proposal form must contain numerous details, and the premium rating is never simple. In addition, most people will have to be persuaded to switch insurance companies. The Orion Insurance Co. is marketing its house contents insurance by direct mail to 800,000 borrowers of the Abbey National building society. This may add 30,000 new policies to the firm’s books. The ACORN system provides companies with individual addresses for households in specific types of neighborhoods.
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Anderson, Roger
Full text: [Marketing] Oct 6, 1983
YES, WE CAN DO SOMETHING TO IMPROVE THE QUALITY OF LIFE
All a resident of Long Island has to do to remind himself that his elected officials tend not to concern themselves too seriously with quality- of-life issues is to compare campaign rhetoric with after-election reality. John Naisbitt in his book ”Megatrends” pointed toward the inevitable result of this inaction of public officials when he stated, ”There has been a gradual but pronounced shift of power out of the hands of elected officials to direct ballot voting through local initiatives and referenda where people, not officials, decide by a majority vote a certain course of action. Politicians matter less and less.” How do we better coordinate the many segments of our community to obtain these synergistic results that will provide us with a better quality of life? Philip Selznick wrote in ”Leadership and Administration”: ”It has been well said that the effective leader must know the meaning and master the technique of the educator . . . The art of the creative leader is the art of institution building, the reworking of human and technological materials to fashion an organism that embodies new and enduring values.” Each group must be organized according to its needs and values. The organization should be small because ”small size is the prime generator of commitment,” according to Thomas J. Peters and Robert H. Waterman Jr. in their new best-selling book, ”In Search of Excellence.” E.F. Schumacher’s comment that ”people can be themselves only in small, comprehensible groups” lends credence to the need to keep the groups small and organized around the specific needs and objectives.
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RICHARD A. RAUCH
Richard A. Rauch of Woodbury is a marketing professor at Long Island University and a management consultant.
Full text: [New York Times] Oct 9, 1983
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