Bulk Business Mail Up as Users Add Equipment
In recent years, whole new business segments have developed for the maintenance, preparation, and enhancement of promotional lists, which are now being consolidated and edited to produce promotional mailings from printing locations and offline operations. The R. R. Donnelley Co. (Chicago, Illinois) started presorting first-class mailing materials for a weekly list of more than 500,000 pieces in 1976, at the same time the US Postal Service began offering discounts to mailers for sorting their own mail. Donnelley is the largest US mailer of bulk business mail catalogs. Third-class mail has seen the greatest growth in postal volume in recent years, and there are only moderate projections for 4th-class mail in the next 5 years. Production of an effective direct mail campaign involves computer list preparers who must provide clean lists and updated carrier route schemes. Mailers should concentrate on monitoring the amount of 3rd-class mail that is actually being delivered.
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Ryan, Mark C.
Full text: [The Office] Apr 1986
Healthy Competition: Feeling the Pulse
Hospital Corp. of America (HCA) is the largest hospital management enterprise in the US, but it is said to be 18 months behind Humana Inc. in the consumer marketplace. HCA (Nashville, Tennessee) intends to close the gap by offering new insurance programs and a group health insurance package that the firm hopes will bring in $1 billion in revenues. HCA has patterned its health plan after an internal scheme it developed for employees 2 years ago. The marketing plan has concentrated on direct mail, and this strategy will be continued. The overall marketing strategy has been a 3-tiered effort targeted at women, the elderly, and employers. Products for women and the elderly are still in the developmental stage. HCA is well into the transition from a small, operations-driven company to a large, marketing-driven organization. According to Randall Huyser, analyst with Montgomery Securities, HCA is still trying to decide how to integrate its growing product line into an overall corporate strategy.
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Silver, Deborah
Full text: [Marketing & Media Decisions] Apr 1986
Dealer Motivation: Facts Update
A survey examines the incentive programs of 207 firms. Survey responses indicate that: 1. dealer expenditures are rising by 7.9% over the same users’ 1985 outlays, 2. merchandise programs are increasing more than travel, 3. sales results are experiencing an average 18.4% increase, compared with 18.7% in 1985, and 4. total campaign costs are still at a median of 10% of incremental sales. Wholesalers and distributors are often the focus for dealer incentive programs, and this year they are the target audience for 61% of users, compared to 49% last year. There has been an average of 57% winners in merchandise programs and 49% in travel campaigns. Careful planning and execution at every step of the promotion are needed to achieve such good results. The user’s own salesforce is the favored promotion vehicle in 68% of the cases, while direct mail is utilized by 43% of the firms surveyed.
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Anonymous
Full text: [Incentive Marketing] Apr 1986
The Art of Forecasting Direct Mail Response Rates
The forecasting process uses scientific methods to evaluate a business situation. The University of Wisconsin’s Management Institute is a direct mail marketing company that promotes educational programs through: 1. general catalogs, 2. mini-catalogs for a functional area, and 3. specific brochures for particular programs. Response rates for marketing programs can be affected by: 1. the health of the manufacturing sectors, 2. seasonality, 3. geography, and 4. competitive programs. Response rates tend to increase in the latter part of the business cycle, while falling off in the early stages. A forecasting model is the aggregation of data and equations used to calculate and display forecast values for a designated dependent variable. The model proposed provides for a casual or detailed review of the forecast itself or its background data. The dependent variable can be forecast for 6 quarters by using an econometric model that employs a forecasting algorithm.
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Berry, Dick
Full text: [Direct Marketing] Apr 1986
Testing Is the Answer to Direct Mail Victory
To win the competition for prospects’ dollars, direct mailers must be willing to test lists, offers, and copy. Certain rules should be followed when testing copy: 1. A test mailing should be very different from the control mailing. 2. All factors other than copy should be constant, including the list, offer, and timing. 3. Self-mailers should be tried in order to appeal to prospects who will not take time to read complicated material. 4. More than one control should be used. Testing copy is important, even for a company that is getting a fair response to its current mailing. New mailings increase sales, so a company should test to see whether a shorter or longer letter or a more elaborate or simpler brochure will catch the reader’s attention.
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Brock, Luther
Full text: [Direct Marketing] Apr 1986
Direct Marketing Effecting Changes Around the World
In an interview, Drayton Bird, vice-chairman of Ogilvy and Mather Direct (O&M) in London, discussed how the firm’s business has doubled since merging with his independent direct marketing agency, Trenear-Harvey, Bird & Watson. Currently, O&M accounts include: American Express, Mutual of Omaha, Polaroid, and British Telecom. Direct mail is the firm’s major medium, as about 70% of the company’s work is in that area. Computers have made big changes in direct marketing. UK companies must be willing to spend more resources to develop good direct marketing. A problem is the shortage of trained personnel in the UK. Direct marketing firms differ from conventional agencies in several ways. For example, stylish work in a conventional agency can win a quick reputation, but failure also can come quickly.
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Palmer, Michael York
Full text: [Direct Marketing] Apr 1986
Discount Banking at Security Pacific
Security Pacific Bank (Los Angeles, California) began offering its DiscountBanking Account in 1984. This low-cost checking account offers free monthly checking with limited check writing but unlimited use of the bank’s automated teller network at 600 locations statewide. It was designed to target college students, 2-income households, and those on limited incomes. An extensive advertising campaign was designed for DiscountBanking. It relied primarily on television and radio advertisements, with greater emphasis given to moderate income areas. The campaign also used print ads and direct mail. Instructional and informational packets were sent out to all branches to increase the product knowledge and the awareness of employees. Results have been very good. Currently, there are about 135,000 DiscountBanking Accounts. It is the 2nd most frequently opened deposit account.
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Sperling, Frank
Janiszewski, Henry
Full text: [Bank Marketing] Apr 1986
Current bank advertising: George Washington sees financial future clearly at Alabama bank
The First National Bank of Tuscaloosa used a series of humorous direct mailings and print ads to promote its new financial planning service. The ads, which feature George Washington wearing various pairs of contemporary glasses, play on the theme of seeing a clear financial future. The financial planning service costs $75 for bank customers and $100 for nonbank customers.
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Flanagan, Charlotte
Full text: [Bank Marketing] Apr 1986
Current bank advertising: Sun Banks revive 1970s ‘thumbs up’ ad slogan
While many Florida financial institutions are “emphasizing the negative aspects of banking”, SunBanks has revived its 1970s “thumbs up” slogan and is using it to promote specific products and services as well as general employee excellence. The TV ads, airing in several state markets, feature bank employees at all levels. Supporting print ads, direct mail pieces, statement stuffers, and lobby displays are available for branches to purchase.
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Flanagan, Charlotte
Full text: [Bank Marketing] Apr 1986
More of the Same Bolsters Franklin Mint Marketing
What will the new owners of The Franklin Mint Corp., the world’s largest direct-response company, do to ensure the company’s growth, enhance an already healthy bottom line and top 22 years of marketing success? The public answers from this tight-lipped privately held company are short on specifics and long on promotional rhetoric. But cut through the marketing hype and the response can be summed quite simply. Expect more of the same approach that has bolstered the Franklin Mint into a multimillion dollar company with more than 3,000 employees and 19 offices worldwide. (excerpt)
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Hazelton, Lynette
Full text: [Philadelphia Business Journal] Apr 07, 1986
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