Gerber, Bristol Set Rare Move On Formula Ads
In its bid to crack the $1.6 billion infant-formula market, Gerber Products Co. is teaming up with Bristol-Myers Co., an entrenched industry player, and planning a controversial marketing tack that will involve direct advertising to parents. Gerber and Bristol wouldn’t comment on their joint initiative, which is expected to be announced today at a news conference in New York. But people who have been apprised of the companies’ plans in recent days said the new formula will be manufactured by Bristol and marketed under Gerber’s name. Bristol, which sells infant formula through its Mead Johnson subsidiary, apparently already has done studies and intends to do more to make sure its advertising doesn’t discourage the desire of women to breast-feed. In addition, Bristol plans to mount what one source describes as “an aggressive pro breast-feeding” campaign.
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By Alix M. Freedman
Full text: [Wall Street Journal] Jun 15, 1989
Direct Marketing: Media Choice
Drayton Bird, vice-chairman and creative director worldwide for the UK advertising firm Ogilvy and Mather Direct, stresses the importance of quality of response. The most important priority when buying space for a direct response is to test and retest the media that is on the schedule. Nationwide Market Research monitors the direct marketing and insert advertising markets, selling its research to agencies and media owners. Companies can buy information broken down by rankings of products or service types, month by month analysis, or rankings of titles. This allows the advertiser access to detailed information about competitor’s activities. Some argue that agencies such as Nationwide never will replace cost per response. There also are occasions when a media buyer will have to rely on experience rather than research. While advertisers are recognizing the value and credibility of direct response, media owners themselves have not. Bird would like to see the UK follow the US’ example of per inquiry deals.
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Simpson, Rachel
Full text: [Marketing] Jun 15, 1989
Direct Marketing: Country Matters
Three former Decisions employees have broken away to form marketing agency BPS Associates in Birmingham (UK). BPS already has set up an in-house help desk for Prudential Assurance Co. and confirmed campaigns for Mardev, the London Borough of Southwark, and the NEC. The new agancy will concentrate on the strategic and consultancy aspects of telephone marketing. While retaining overall control and management of campaigns, BPS aims to “broke out” certain areas to agencies with large numbers of lines, a practice more common in the US than in the UK. BPS regards the overheads of central London as something it can do without. The breakaway is an example of an industry trend toward specialization and integration within a client’s marketing strategy and of agency moves into the regions to cut costs and pass some of the savings on to the client. Regional relocation will help BPS realize huge savings in rent, rates, and wages. Decisions, which is based at Wimbledon, is looking to expand in the northern regions as far as Yorkshire.
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Bennett, Margaret
Full text: [Marketing] Jun 15, 1989
Gerber to Launch Infant Formula in Ad Campaign Aimed at Parents
Gerber says direct advertising for its product is needed if it is to make inroads into the highly competitive infant formula market. Gerber made its own formula in the 1950s and 1960s, before abandoning the business to the pharmaceutical companies, which now claim most of the $1.5 billion in annual formula sales. The Gerber product will be made by Bristol-Myers, which makes infant formulas Enfamil and ProSobee. In the 1970s, Bristol-Myers was forced to stop advertising its formulas in baby-care magazines, under pressure from the pediatricians’ organization. [David Dubber] said that Bristol-Myers has no plan to begin advertising its own infant formula products directly to consumers. “It’s just their method of marketing and distribution,” Dubber said of Gerber’s strategy.
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JESUS SANCHEZ
Full text: [Los Angeles Times (pre-1997 Fulltext)] Jun 16, 1989
Citi claims 67% response to ‘ZapCheck’ promotion
Citicorp Global Payment Products’ telemarketing and direct mail campaign aimed at utilities has generated a strong response. The purpose of the campaign was to promote ZapCheck, Citicorp’s (New York City) electronic bill paying service. The marketing campaign, developed by Cramer-Krasselt, enticed utilities with a “CitiSearch” contest, and included boxes with candy messages.
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Anonymous
Full text: [Bank Advertising News] Jun 19, 1989
Times Wants New Image in Ad Campaign Review Could Lead to Another Agency
“We’re looking to see if there’s a way to energize our advertising and build circulation,” said Don Clark, executive vice president of marketing. Clark said The Times plans to break a more upbeat campaign-with a strong Southern California theme-in the fall. To spur circulation, The Times plans to offer special discount prices to new subscribers in some areas this fall-a rarity for the paper. The Times will rely heavily on direct response advertising for this circulation drive-both through the mail and also with the use of TV commercials that provide toll-free phone numbers, said Clark.
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BRUCE HOROVITZ
Full text: [Los Angeles Times (pre-1997 Fulltext)] Jun 26, 1989
Lead Management: Picking The Best From The Rest
Regardless of the industry, inquiries generated from advertising, promotion, public relatons, direct mail, and trade shows often are ignored. Marketers estimate that at least 1/2 the companies that receive inquiries do not do anything with them, despite studies showing that more than 20% of these leads would result in sales within 6 months if properly handled. Jim Dauw, manager of advertising and sales promotion at Huck Manufacturing (Irvine, California), helped develop a program to handle the roughly 2,600 inquiries Huck receives annually. Dauw codes the inquiries according to the product group and campaign that generated the lead. Literature and a reply card requesting more information is mailed to the prospect, and the prospect’s name is sent to the salesperson or distributor who covers that territory. The salesperson is expected to call the prospect and send an evaluation to Dauw. Some marketers go a step further than Dauw and qualify leads before passing them on to salespeople. In successful programs, these leads often become one of the salesperson’s primary sources of new business.
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Kelley, Bill
Full text: [Sales and Marketing Management] Jul 1989
Telco Marketing: Redefining The Boundaries
With an aggressive marketing and public relations campaign, Alaska Telecommunications Marketing (ATM), the marketing subsidiary for Matanuska Telephone Association (MTA), has rapidly positioned itself among Alaska residents and businesses as a major firm in the communications equipment market. According to ATM’s Katya Nichols, the company has used nearly every form of media available and has found direct mail especially effective. ATM takes advantage of the promotional materials provided by equipment manufacturers. The trend among National Telephone Cooperative Association members to broaden their revenue base is clearly reflected in MTA’s marketing expansion. Charlene Taylor of Chaz Taylor Inc. points out that, since divestiture, companies have had to redefine their goals. Part of this process involves educating customers and employees as to what local phone companies can now offer in the way of products and services.
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Bolton, David
Full text: [Rural Telecommunications] Summer 1989
Entrepreneurial Spirit: Is It Time To Expand?
A case study of Poplar Industries, a nonprofit organization serving people with developmental disabilities, shows how it expanded its market to help fulfill its mission and increase revenue. Poplar manufactures a line of decorator storage crates that are used by college students in need of decorative storage. The company wanted to expand beyond its seasonal market and provide more training and employment options to people with disabilities. Poplar conducted careful research to identify new target markets and determine if it could compete successfully. The research suggested that Poplar’s geographic market would consist largely of local retailers and some regional and national retail chains. The marketing program began with personal contact with local prospects and was expanded to include direct mail, trade shows, magazines, and buyer’s directories.
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Edson, Cathy L.
Full text: [Nonprofit World] Jul/Aug 1989
Analyzing Incremental Sales From A Direct Mail Coupon Promo
Several researchers have noted that the profitability of a coupon promotion depends on the incremental sales generated by the coupon. However, little is known about the characteristics of households that make incremental purchases. A model of how an individual household could react to a coupon promotion is used to develop an estimate of incremental purchasing for various market segments and to develop hypotheses about the types of households that are most likely to make incremental purchases. The hypotheses are tested using data collected from a field experiment in which a solo coupon for an established brand was mailed to 5,192 households belonging to a scanner panel. The results indicate that coupons produced greater incremental sales among households that were larger, more educated, and homeowners. The likelihood of incremental purchasing is found to increase with the household’s prior probability of buying the brand and the face value of the coupon.
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Full text: [Journal of Marketing] Jul 1989
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