Cashing In on the Youth Market Boom
Today’s youth market is represented by the 18-25 age group and is the tail end of the baby boom of the ’50s. As revealed by the US Census projections, there are significant shifts in earning patterns, mobility, and lifestyle choices. These shifts are affecting the buying habits of this group. The highest mobility rate is seen in the low 20s age group. The most accessible, and affluent group, is the college crowd. Another factor in the youth market is the reliability as a credit risk. Repayment histories are as good or even better than the older counterparts. Marketers are advertising in magazines, TV and radio, and direct-mail campaigns, and specializing their campaigns to fit the youth market needs. The key to successful advertising is the effectiveness of the mailing list. One list compiler indicates that 95% of the young people on their list read the mail carefully, and 85% actually buy by mail. Another use of lists is for mailings of samplings. These lists are compiled on the basis of whatever the marketer feels indicates the need for his product.
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Jacobson, Sheila
Full text: [Zip] Apr 1981
Blue Cross of Louisiana Exec Reports Healthy Response to Overhaul of Mass-Mailing Operation
Robert A. Bourgeois, a marketing vice president for Blue Cross in Louisiana, has brought the mail preparation system under the wings of the marketing department. To get the most of the mass-mailings which are so beneficial to the firm’s growth, the promotional mailing program underwent some changes. There was the purchase of a Bell & Howell ink-jet addressing machine. Bourgeois switched from the traditional advertising inserts to the use of mailing forms. In addition, the promotional mailings are beginning to take advantage of the third class carrier-route presort program to keep postage costs down. The ink-jet addressing machine is able to maintain the same attractive look for only $8,000 annually, thereby saving $62,000 in labor costs over the old system. The use of the ZIPMAILERS from Standard Register increased response rates from 1% to 1.8%. From the initial tests, Bourgeois’ staff has adopted several copy changes, artwork, and production features to improve the response.
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Anonymous
Full text: [Zip] Apr 1981
It’s the Looks That Make the Japanese Buy European Cars
In 1980, 44,871 cars were imported into Japan, while Japanese exports to Europe were at 1,007,532. While most of the newly affluent Japanese still like to identify with the masses, some would like to show a certain individuality, and a foreign car, while more expensive, satisfies this need. The market is basically one of fashion. Japan Leyland, British Leyland’s agent, landed a 5 month contract last year to build Minis in UK specifically for Japan and is now negotiating for an extension. The BMW is the housewives’ choice for a second car, and professionals, especially doctors, are attracted to the Mercedes. Volkswagen, with its Golf, is still the undisputed leader among imported cars, and the buyers are not easily classified. Most foreign cars are found in the 4 major cities. The stringent Japanese regulations require extensive modifications and additional equipment, raising the original price considerably. Other reasons for the sales slump include problems with prompt delivery, failure to research the Japanese market, and the failure of the mass production techniques in other countries. Advertising is not as important as additional sales and service points, and the coverage that is given in car magazines is superficial and uninformative. Showrooms are an unimportant part of marketing. Direct mail is the favored advertising with Volkswagen. While some claim that the foreign car market would improve with quality and performance, others believe that the average motorist wants inexpensive, reliable transportation, and for this the Japanese car is unbeatable.
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Dale, Caroline
Full text: [Campaign Europe] Apr 1981
Guidelines for a Successful Direct-Mail Program
There are 2 forms of direct mail in the marketing of bank services: 1. mass mailings, and 2. individually targeted mailings. A direct-mail program should begin with a thorough analysis of the project under consideration. Steps to follow include: 1. assessing the marketing situation, 2. defining the project’s objectives, 3. developing the campaign theme, 4. outlining materials to be created and a time schedule, 5. establishing procedures for follow-up and evaluation, and 6. coordinating the program with the bank’s overall marketing strategy. Creativity lies in the credibility of the communication. The mailing should: 1. show that you know your prospect well, 2. treat your prospect as an intelligent person, and 3. convey the unique personality of your bank. Good preparation will lead to the selection of the right mailing list. A comprehensive, central customer file will become an important marketing tool. In most cases, a direct-mail program will identify a bank’s prospects and start the communications process that will lead to a sale.
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Meininger, Henry J.
Full text: [Bank Marketing] Apr 1981
Flavors of Spanish
Currently PepsiCo directs some advertising at Hispanics, but would like to direct more ads at the increasing Hispanic population. Besides the parent company, company-owned bottling plants are using their own specialty ad agencies to reach the local Hispanic markets with special wording, music, and visible backgrounds. When Cudahy Foods of Phoenix, Arizona, discovered its Rex lard selling at persistently high levels in a single region in Southern California, it found that Rex lard had won over the Hispanic segment of the California market. Cudahy began a door-to-door survey to gain the Hispanic reaction to introduction of Rex bacon. When a preference for a premium product was found, ads were targeted to the Hispanic market using TV as the only medium. Anheuser-Busch sponsors Los Angeles’ Annual Industrial, Commercial, and Cultural Fair, which attracts many local Mexican-Americans. The brewer’s contribution to the fair may reach $28,000, but the effort pays off. Budweiser beer sales are already reported to be up in the area. Another company marketing to Hispanics is Gillette Co., which approaches the market by stressing the importance of language. Ore-Ida has built a brand awareness of its frozen potatoes and is planning a national campaign in 1981, aimed at the Hispanic market.
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Landis, Dylan
Sunila, Joyce
Goltermann, Jane
Arnold, Peter
Full text: [Advertising Age] Apr 6, 1981
Teledata Taps Markets
Teledata is a UK company which provides direct response marketing services 24 hours a day, 7 days a week. The company handles transactions as diverse as charity donations and theater reservations. The company, which started as an electronic yellow pages service, no longer tries to generate such responses but does handle them as they occur. Today, Teledata almost exclusively handles responses to other companies’ advertising campaigns for a 28p fee per response. A major asset of the company is its telephone number, 200-0200, which it went to great lengths to obtain. The use of a London number does not deter callers, according to an analysis of respondents made by Teledata. The company protects the response data of individual advertisers, even though such data could help the company make other sales. The volume of calls can overwhelm any telephone system at times, but Teledata is installing another ADC telephone system to double its answering capacity.
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Fisher, Diane
Full text: [Marketing] Apr 8, 1981
The Seven Deadly Sins of Direct Mail Testing
One yardstick by which nearly all mailings can be measured is sales per thousand. Direct marketers must navigate between cost-per-thousand and response-per-thousand. Mailers must test both packages and lists in an intelligent, economic and effective manner. The desired result of any direct marketing test is detailed, directional, dimensional and reliably repeatable projection. The ”seven deadly sins of direct mail testing” are: 1. believing that the laws of probability apply to all direct mail tests, 2. blindly depending on the use of a probability scale to predict the percentage response to a first-time-out direct mail test, 3. thinking the reliable projectability of an original direct-mail test is determined chiefly by the size of list samples used or the number of packages sent out, 4. assuming extra-large test samples are much safer than smaller samples, 5. concluding that the performance of a given mailing to a given list can project the response to a new package to the same list or the same package to a new list, 6. assessing a mail package by ”testing” its pull when mailed to umpteen different lists, and 7. thinking one must never test more than one variable at a time.
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Alpert, Shell R.
Full text: [Zip] May 1981
Telemarketing Helps Industrial Marketers Increase Sales, Productivity, Profitability
Telemarketing, one of the newest ideas in industrial marketing, is the result of the combination of innovative telecommunications technology and modern management systems. For more efficiency and productivity in meeting changing marketing demands, a telemarketing system can mesh selling, training, order entry, order processing, credit management, inventory control, shipping, billing, and customer service into a unified, sophisticated marketing system. The benefits of a successful telemarketing system can include: 1. increased sales and revenues, 2. improved customer service, 3. greater white-collar worker productivity, etc. In effect, a telemarketing system can serve any or all of these 5 functions: 1. supplementing face-to-face selling, 2. replacing face-to-face selling, 3. qualifying sales leads, 4. improving the handling of responses to direct marketing campaigns, and 5. increasing the effectiveness of customer service and expanding its role in supporting sales activities.
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Roscitt, Rick
Full text: [Marketing News] May 1, 1981
The Hunt for Jobs Hots Up
Employment agencies such as Alfred Marks Bureau are going through the worst period in their history, but the major groups are using new marketing techniques to maintain market share. They are also concentrating on increasing efficiency. Alfred Marks has promoted its individual attention theme, spending L700,000 annually on advertising. While this is a significant decrease from the 1979 advertising budget, it is focusing on getting maximum value for its money. A continuing problem is finding work for the unskilled and semi-skilled. Counseling is important for both job-seekers and companies. Alfred Marks offers basic training courses in word processing as well as seminars and workshops for supervisors, calling itself a recruitment consultancy. The agencies are also diversifying into unrelated businesses, including office cleaning companies, energy conservation, and drug store outlets. Reed Executive feels the recession is easing, pointing to the increase in demand for temporary staff. Brook Street Bureau has been focusing on courting employers, using direct mail. All of the employment agency groups are ready to make a comeback as employers begin to hire new staff again.
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Piper, Julia
Full text: [Marketing] May 13, 1981
Nine ”PASSWORDS” to Marketing Success
PASSWORDS is a response strategy that can make direct mail techniques more effective and provide a master check list to evaluate a direct-response campaign. PASSWORDS stands for: Propose, Assert, Specify, Support, Weight, Overcome, Reiterate, Dilemmatize, and Solicit. Propose quickly tells the prospect what he should do, how, why, and when. It gains the prospect’s attention and promises to meet a need. Assertion provides the company-defined benefits of a product. They may be big claims and should encourage readership of the whole mailing. Specifying gives more details and reasons an assertion is true. They are specific and are expanded to illustrate rewards to which the reader can relate. Support, in the form of customer testimonials or endorsements, gives objective evidence to a claim. Weight quantifies the real worth of the offer in terms of money, time, labor, or reduced risks. Overcome identifies general and specific objections of the prospect and diminishes them with statements and facts. Methods offered to deal with objections are: 1. question and answer series, 2. ”Facts & Fables” display panels, and 3. third party testimonials. Reiteration repeats decision making information in or near the reply card or coupon. This enables the prospect to make a response. Dilemmatizing gives a prospect a choice to induce consideration which has the effect of provoking action. Solicitation asks for the order and should be easy to understand, and require little time or effort on the part of the reader.
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Alpert, Shell R.
Full text: [Zip] Jun 1981
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