Cable TV: Industry Pushing Its New Image to the Public
Cable television’s marketing efforts have increased to include an industry-wide campaign designating April as National Cable Month. Both advertising-supported basic cable networks and multiple system operators (MSO) have joined together with direct mail, newspaper, and outdoor ads and on-air cross promotions to advertise the quality of cable’s programming. Originally designed to enhance poor broadcast signal reception, cable has evolved into a business that hopes to become the programming and entertainment medium of the future. With an estimated 48.1% of all US households receiving cable today, ad revenues are expected to pass the $1-billion mark this year. However, cable’s subscriber growth is slowing, and the industry must promote programming strong enough to obtain a 20% share of the TV viewing audience to attract new advertisers.
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Walley, Wayne
Full text: [Advertising Age] Mar 30, 1987
1987 Sales Promotion Planner — The Great Debate: Promotion vs. Image Advertising
Promotion involves examining a brand’s marketing objectives and creating and implementing the programs that will help the brand meet those objectives. Promotion can involve a direct marketing campaign or point-of-sale offer, a business-to-business effort, or a sales incentive campaign. Effective promotions can build brand image and extend brand franchise. Well-planned, integrated promotion considers every audience that can come between a manufacturer and a consumer sale. Planning always includes: 1. a definition of objectives, 2. the development of programs to meet stated objectives and produce results, 3. implementation, and 4. the analysis of results. Clients have become sophisticated about marketing strategy, and there are many internal promotion groups that are looking to create consumer awareness, enhance brand image, build brand franchise, and meet short-term goals.
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Sottosanti, Vincent
Full text: [Marketing Communications] Apr 1987
Executive Charters Save Time, Money
To most people, a charter flight probably means a weekend jaunt to Las Vegas, or a holiday trip via Wardair to London. But it’s not only holidayers who can benefit from the advantages of a charter flight versus the regularly scheduled commercial flights. To a businessman in the lean, mean 1980′s, not only is time saved money earned, but chartering an aircraft for business travel is a cost efficient way of doing business. “The main thing,” says Rick Stevens, vice-president of marketing and public relations for Perimeter Aviation, “is that business executives need to be educated on what their time is really worth. Most major executives still sell their time short. Getting up at 4:00 A.M. to catch a flight and spending long hours waiting around often isn’t counted as work time. (excerpt)
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Love, Myron
Full text: [Manitoba Business] Apr 1987
Marketing to Marketers
To promote the idea of using long-haul destinations to incentive travel buyers who, in the past, had favored short-haul destinations, The Travel Organisation devised a draw in which the prize was a luxury holiday for 2 at Regent International’s hotel in Bangkok with free club-class flights provided by British Airways (BA). A mail campaign, targeted to 1,345 known users of group travel, was implemented. First, an anonymous parchment-type announcement card was sent to prospects, telling them to watch for an elephant in the mail. Next, a brass model elephant was sent in a plain white box with no return address. Another mailing described the services of The Travel Organisation, the Bangkok Regent, and BA. By completing and mailing a form, on which they could request additional information, the prospects became eligible for the drawing. A final mailing invited all prospects to visit a Travel Exhibition. Those who came could fill out an entry form and get a second chance to register for the drawing. Projecting an image of creative professionalism was one objective of the exercise.
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Tonnison, David
Full text: [Industrial Marketing Digest] 2nd Quarter 1987
Dealer Incentives: Facts Update
A recent survey by Incentive Marketing revealed that 6 out of 10 executives will increase spending on programs designed to motivate dealers and distributors in 1987. Estimates suggest a 6.2% increase over last year’s $2.35 billion. Reasons that marketers offer dealer incentives include: 1. to improve overall volume, 2. to introduce new products, 3. to sell new accounts, and 4. to improve morale or goodwill. Users conduct their incentive programs with varying frequency, with January and March being the strongest months for campaign launches. Planning for an incentive program can take as much time as the actual selling period. According to the survey, 13 weeks is the average planning time for merchandise programs, and 26 weeks is average for travel programs. Users of dealer programs say they spend an average of 24% of the total budget promoting the program. Methods of promotion cited by those surveyed include: 1. the company salesforce (71%), 2. direct mail (47%), 3. sales meetings (36%), 4. literature with product (31%), and 5. trade shows (20%).
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Anonymous
Full text: [Incentive Marketing] Apr 1987
Blowing the Lid Off Advertising
Miami’s public television station, WPBT, used to raise money the old fashioned way — by appealing for donations on the air. The practice frequently backfired, alienating viewers who didn’t like their programs interrupted by tedious fund-raising pitches. Today, the station mails viewers colorful brochures and letters explaining the need for funds. And instead of long stretches of boring begging, the station sandwiches 30-and 60-second commercials between shows, giving patrons a toll-free number they can use to call in donations. (excerpt)
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Welch, Bonnie
Full text: [Florida Trend] Apr 1987
Nordic Banking and Finance: Banks Bend over Backwards
In 1986, Sweden’s commercial banks earned record profits, a direct result of the widespread deregulation of the domestic credit market. A good deal of the credit for the banks’ profitability goes to plunging interest rates, which contributed to considerable increases in yields. With the onset of liberalization in May 1985, banks began to win back customers from the gray market. Still, many customers remain convinced that it is easier to borrow from a finance company than a bank. Mortgage banks have benefited most from increased lending. Corporate finance departments of major banks have experienced a profit squeeze because of: 1. foreign banks’ entry into the financial sector, and 2. in-house banking by major corporations. Some banks are bending over backward to attract corporate business by servicing small- and medium-size corporations. Some banks have adopted aggressive marketing campaigns to attract high net worth individual customers. Bankers would like to see liberalization extended to the area of foreign exchange controls in the hope that such a policy would encourage Swedish multinational investment abroad and create export jobs.
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Cohen, Barry
Full text: [Euromoney] Apr 1987
Winning the Name Game with Newsletter Subscriber Lists
Newsletter subscribers are not like other kinds of subscribers. They are usually readers who respond best to offers with more words and fewer pictures. Reasons why newsletter subscriber lists tend to be more responsive include: 1. Most newsletter lists are 100% direct mail sold. 2. Most lists are 100% cash with order. 3. Most newsletters are higher priced than other kinds of publications, which weeds out less serious prospects. 4. Newsletters do not have to meet a rate base. 5. Newsletters usually carry no outside advertising. 6. Newsletter readers are among the most information hungry readers to be found. 7. Newsletter subscribers tend toward paranoia, meaning they are aware of what is happening around them. 8. Subscribers tend to be more impulsive. 9. Newsletter subscribers tend to be loyal. 10. Subscribers consider the publication much more than just side reading. 11. Premiums are usually editorial products with content relating to the newsletter’s subject.
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Kurtz, Brian
Full text: [Direct Marketing] Apr 1987
Leveraging Sales Through Database Maintenance
Market share can be increased when a company identifies, qualifies, follows up on, and closes more sales prospects than its competitors. In a survey of about 50 marketing executives attending a strategic marketing course, many reasons were given for the failure of lead generation programs, some of which include: 1. Individual campaigns became uncoordinated. 2. Raw leads backed up and became stale. 3. There was no follow-up after requested information was sent. 4. Qualified leads were not captured into a marketing database for periodic prodding or tracking. The marketing department of a provider of high-technology products and services to the electronics industry wanted a cost-effective lead generation system. The company sent out 40,000 letters, 28,000 of which successfully reached managers and offered them an opportunity to subscribe to a newsletter featuring technical and other information. The prospects could become charter members of an exchange club if they qualified by completing a questionnaire. The first mailing drew 3,000 responses, with 3,200 others responding after a 2nd mailing. After 4 years and 16 issues of the newsletter, the qualified sales lead list has been built to 45,000 prospects.
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Husami, Art
Full text: [Direct Marketing] Apr 1987
Harrods Reaches Out with Its Plush Touch
Harrods Ltd. of London experimented with a direct marketing campaign, using an 800 telephone number to advertise in the US. Its first advertisements appeared in The New York Times for cashmere garments, the prices of which were regarded as 40% cheaper than comparable merchandise in US stores. The promotion was very successful; at the end of the first week, over 3,000 items had been ordered, providing sales of over $320,000. The cost for the ad in the Times was about $25,000 with $3,000 for production costs. Another direct marketing experiment was done for Harrods’ summer sale of 1986, with different merchandise being offered. The store printed a special mailer to coincide with the new ad, and customers were requested to ask for the mailer using the 800 toll free number. The store also rented a list of appropriate US customers’ names, and used the names and addresses of those who responded to its first offer. The response rate was very encouraging, creating an average order of $250 per customer. Harrods’ attitude toward European advertising is that it should be directed mostly at the English-speaking market.
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Sanghavi, Nitin
Full text: [Direct Marketing] Apr 1987
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