ADVERTISING; MANY MAIL CAMPAIGNS END YEAR
“Perfect timing is the 26th” she said,”and disaster is the 23rd or 24th. A magic thing happens after Christmas. People become more receptive.” Since mailing a third-class piece across the country could take as much as three weeks, according to Miss Throckmorton, the pieces, already addressed and packaged according to post office, Zip Code areas and individual postman’s routes by computer, are shipped by private trucker to the Postal Service’s 21 bulk distribution centers. (Proper bundling and using the centers can reduce postal charges from $109 a thousand to $79.) These days she is as pleased as punch about getting into direct marketing as soon as she did. “The field is booming. Business was never better,” she said, “People who wouldn’t have considered using it four or five years ago now want to get in.”
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Dougherty, Philip H.
Full text: [New York Times] Dec 28, 1981
Through the Looking Glass Profitably/Technological Advances: A Cause for Optimism
Mailers are cutting back on individual campaign budgets. With less outside prospecting and more reliance on established lists and customer files, the emphasis will be on: 1. cross-selling, 2. testing packages to cut corners and increase productivity, and 3. elimination of waste at every opportunity. List managers believe they will have to work harder to get mailers to test new lists in 1982. Since cash per se will be such a valuable commodity, most brokers believe they will have a tougher time collecting for list rentals. Printers and mailing houses are investing millions of dollars in the latest ink-jet and laser equipment. Two very significant trends in direct marketing seem to be converging: 1. a variety of organizations are realizing how direct marketing fits their needs and recognizing how they can benefit by integrating it into their activities, and 2. the sudden emergence of electronic technology that cuts across virtually every area of direct marketing. Ink-jet and laser printing has opened the way to direct marketing communication tailored on a one-to-one basis to both the supplier and the prospect/buyer.
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DeLay, Bob
Full text: [Zip] Jan 1982
How Retailers Are Getting More Direct-Mail Action (and Reaction)
More and more retailers are turning to target marketing to help improve profits. A recent survey of nearly 4 dozen retailers revealed that the average responding retail operation had a mailing list of 260,000 accounts and mailed to all of them 7 times per year. Most of these retailers only keep a record of their charge customers. However, an enterprising fourth of them had devised some system whereby they recorded the name and address of most cash customers also. Eighty percent of the stores stressed directing a lot of mail to Zip codes. A large number of these will use resident lists to ensure complete coverage in the selected target areas. Those who sort their lists into Zip code sequence basically follow 2 paths: 1. they keep a duplicate magnetic-tape file in Zip code order and update it periodically, or 2. they maintain only one master file and have created or bought programming that allows them to re-sort this file into the desired sequence. Some retailers have a ”census tract designation” to permit penetration analysis and the easy addition of rented names.
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Fleischer, Richard L.
Full text: [Zip] Jan 1982
Squeeze on Federal Ad Budgets
For 5 years US government advertising expenditures have been approximately $100 million, compared with $500 million for the pharmaceutical industry, $300 million for beer and distilled spirits, and $750 million for the cigarette industry. With the economic recession and Reaganomics, government advertising may fall into some weighty problems in the next few years. Although government is not competing alongside the private sector in sales advertising, it is a competitor for employees in such areas as public service personnel and military recruits. Also, the U.S. Postal Service, Amtrak, and the Consolidated Rail Corporation (Conrail) must promote themselves. With private enterprise taking over portions of the Postal Service’s formerly exclusive territory, the Post Office must advertise or deteriorate. To offset rising advertising costs, the US Army is looking toward cable television as a possible means of promoting itself at reduced expense. Direct mail is in the offing for 1982, with 34 million parcels in 47 separately targeted demographic packages. The US Navy is examining cable TV, also, while recruiting through magazines, spot radio, newspapers, and direct mail. Less traditional methods of promotion used by the railroads include transit posters displayed in airports and subways. While Conrail is retaining a lower advertising profile than Amtrak, it is attempting to pay off the government loan preventing it from being a totally private corporation. Concentrating upon freight operations, a $1 million ad campaign was launched in November targeted mainly against the truck market.
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Gardner, Fred
Full text: [Marketing & Media Decisions] Jan 1982
Ma Bell’s Dramatic New Look
With government controls shifting, AT & T is undergoing major changes. To explain to its customers new options available, Bell Telephone will be turning more and more to advertising. One change in AT & T’s format will be a Federal Communications Commission (FCC) requirement that the soon-to-be-formed ”Baby Bell” become an individually operating subsidiary. Another major change could be the transfer of sales to Baby Bell while Ma Bell handles local and long distance phone services. Concerned that its customers will become confused in face of so radical a change, AT & T turned to the Young & Rubicam (Y & R) advertising agency, creating rumors that its long-time ad agency, N. W. Ayer, would be dismissed. Discounting the rumor, AT & T contended the new account with Y & R merited the additional $25 million in budgetary funding. With separate bills for service and telephones possibly forthcoming, a major target of AT & T’s ad campaign will be to placate customers. Test marketing of advertising dialogue will cover newspapers, broadcasts, and possibly direct mail to determine its effectiveness. Because the House of Representatives has made no definite decision regarding the Senate’s or the FCC’s stance on Bell’s future, AT & T can only speculate at this point about what action will be necessary with its customers. Another issue is whether or not Baby Bell will be allowed to obtain immediate equipment ownership for marketing purposes. Some of these products include data processing equipment and computerized switchboards.
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Gay, Verne
Full text: [Marketing & Media Decisions] Jan 1982
Brand Report 72: Hosiery & Lingerie
Im direct proportion to the increasing number of working women, sales of hosiery and lingerie are booming. Advertisers are relying heavily upon television and print to attract career-minded women with more money to spend but less time for shopping. In 1980, major advertisers invested over $155 million in intimate apparel advertising. With soaring costs in clothing, it is speculated that women are putting their cash into less expensive apparel such as hosiery or lingerie instead of coming out of the store empty-handed. Because many women work to supplement living expenses, their money is spent on essentials, while the career woman earning in excess of $15,000 is investing a portion of her income in quality clothing that creates a professional image. A trend is evident in the female executive who must dress conservatively in outer apparel toward softer, more feminine undergarments. Leading in hosiery sales is the Hanes Corporation, which markets such lines as L’eggs pantyhose and Underalls. Commercials for L’eggs, Hanes number one line in mid-priced, mass-produced pantyhose, are concentrated in the TV medium and women’s magazines. Kayser-Roth Hosiery Corporation’s line appeals to 2 images of the working woman-the ”No Nonsense woman” (No Nonsense hosiery) and the ”upbeat woman” (Easy To Be Me line). Other leaders in lingerie sales include Bali, Maidenform, Playtex, and Sears. Advertising for both Sears and Maidenform tends to be seasonal, while Bali has engineered a new marketing strategy it hopes will boost diminishing sales.
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Dreyfack, Madeleine
Full text: [Marketing & Media Decisions] Jan 1982
International Direct Mail-The Most Misunderstood International Medium
An interview with John Ryans of Kent State University (Ohio) and Robert Barris of Van Melnick/Barris International (Houston, Texas) reveals some suggestions on how to use direct mail effectively overseas. A representative sampling of comments includes: 1. International direct mail involves communication on a one-to-one basis, and it can be the most focused medium if this one-to-one requirement is fulfilled. 2. One of the most common objectives of international direct mail is to inform about new programs and products and to pave the way for a personal sales call rather than soliciting some type of response from the recipient. 3. Some of the difficulties with this sort of promotion revolve around regulations of foreign countries, such as a requirement to print locally. 4. It is culturally risky to use incentives with overseas direct mail because it is difficult to determine what customer reaction would be. 5. It is difficult to obtain an effective mailing list for overseas marketing efforts. No universal standard rate and data service list of lists exists to help.
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Roberts, John
Full text: [Industrial Marketing] Jan 1982
Increase Sales, Profits: Upgrade Average Order
The average order value (AOV) of each direct mail purchase can be increased by: 1. raising prices, 2. providing better goods and services, and 3. persuading customers to buy more. However, before the AOV can be increased, the AOV must be known, as well as its patterns, as AOV changes at different times of the year. Raising the product’s or service’s price can be successful by: 1. upgrading the product or service, 2. extending the existing product range, 3. offering a deluxe version of the standard, 4. placing expensive and desirable items in otherwise wasted catalog space, 5. offering a conversation piece customers can show off to their friends, 6. starting a cult or craze for the item, 7. taking a cheap, commonplace item and making it expensive, 8. offering a mystery ”prize” to customers, 9. targeting a special interest group, and 10. appealing to the basics. More pieces or items per sale can be gained by using a related premium or a price incentive. Thus, by assessing the figures, finding ways to offer better and more value goods and services, and by using techniques that encourage customers to buy, direct marketing sales can be improved.
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Consdale, Michael
Full text: [Direct Marketing] Jan 1982
Copy That Sells: How to Thwart the Age of Skepticism
Today’s public is skeptical of product claims and advertisements, particularly in direct mail. Thus, the task of direct marketers, as communicators, is to prevent the reaction of skepticism on the part of the potential consumer-buyer. To overcome skepticism, the direct marketer must be able to back up any claim. Lies and puffery, when discovered by the reader, aggravate skepticism, but claims tied to credible testimonials lend truth to the communication. Humor is acceptable, but clowning makes readers skeptical. Implied bulk or community acceptance is positive to readers, as is personalization and being specific about what is offered. Product/service jargon must be clarified. At times, showing an innocence or artlessness can add to a mail order ad’s sincerity. However, a product’s newness gets a better response when tied to an established base. Readers can be talked-down to, as long as it is done personally and with the appearance of helpfulness. Readers accept a product’s or service’s stated limitations and tend to identify with a product or service when the direct mail communication tells them something they already know. Thus, the direct mail communication, when properly worded, can thwart consumer skepticism.
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Lewis, Herschell Gordon
Full text: [Direct Marketing] Jan 1982
Current bank advertising: corporate body building
Recognizing the need of growing companies for corporate cash management services, Seattle-First National Bank devised its “Power Banking” advertising theme. Seattle-First felt it was important not to downplay a firm’s current bank but to suggest itself as the bank that could supply newly needed services. The campaign was run in regional issues of national business periodicals and distributed through direct mailings.
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Anonymous
Full text: [Bank Marketing] Jan 1982
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