Are You Working to Comply with the Privacy Commission
The Privacy Commission has determined that legislation is not needed at this time to control mailing lists. They did suggest that businesses should let customers know if they do use their names on mailing lists. The Commission issued 3 recommendations. First, a person engaged in interstate commerce should not have to remove a name or address from a list if requested by the individual unless already required by law. Second, a private organization that maintains mailing lists to sell to others should so notify all these individuals and should comply with requests to remove their names and addresses from such a list. This second area is very important and there are many considerations connected with it. When to notify the individual and the form notification takes are critical to maintain good customer relations. However, a program of this type conducted by Atlantic Richfield resulted in only 21/2% preferring not to be on a mailing list. The last recommendation by the Privacy Commission suggested that each state should review how state agency records are used and take the necessary steps to curb abuses.
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Drey, Allen
Full text: [Direct Marketing] March 1978
Paint a Picture of Your Reader Using Your Product or Service
Product talk, a major problem in today’s sales letters, is placing emphasis on the product rather than on the reader. By transferring the basics of salesmanship to the art of writing direct mail, product sales will come second to what the product can offer the prospective buyer. It is critical to cause the reader to see himself as an individual, rather than as one of a group, and to see personal benefits. Reader-involvement creates a moving picture in the reader’s mind, and it gets attentive interest. Reader-oriented letters are more successful. Tips to aid in creating reader fascination in a reader-oriented letter are: 1. The wording must fascinate the writer as well as the reader. 2. The benefits of the product or service must be discussed as well as the product or service itself. 3. The letter must lure the reader into attentiveness. Avoiding “selfish” product sales by promising the reader what the product can do for him may be a deciding factor in successful direct sales mail.
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Brock, Luther
Full text: [Direct Marketing] Apr. 1978
Obtaining Results Through Profit & Market Planning
The marketing manager’s role in initial sale of an item is only a small part of the company’s overall profitability equation. Direct marketing entails re-solicitation or persistency performance to keep customers on a long-run basis in order to offset initial offers at reduced prices. Companies who sell through the mail have many different methods of profitability analysis, but few have come to grips with the hard analysis of back end data, the real determining factor of product profitability. Often, enthusiasm for the initial offer bears little or no relationship to subsequent offers and purchases. The manager’s talent, insight, and foresight is needed to evaluate total product sales on a continuing basis. Knowing what factors go into determining the breakeven and allowable order costs is critical. Other factors having a great bearing on profitability are: 1. seasonality, 2. maximum profit potential, and 3. budget flexibility. Quick adaptability to current market conditions is essential to successful marketing programs.
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Vergara, Richard
Full text: [Direct Marketing] Apr. 1978
Mail Plus Phone Makes Positive Option Offer Succeed
An example of the successful use of telephone sales with products mailed to buyers is the program implemented by the Card Division of American Express. It was the first time that the Card Division used telephone as a direct response medium. By the end of the sales campaign, Division managers were convinced that telephone adds a vital plus to a positive option program. The return on investment was tremendous. The telephone campaign was structured to reach every buyer who did not respond to mail offerings for a second purchase. The agency used a “production line” telephone marketing system, with a timed, tested script including preplanned replies. The system also utilized a taped message that the communicators played for prospects called. Production line telephone is similar to the technique used in a carefully controlled manufacturing process that leaves virtually no room for employee discretion. Telephone in combination with mail will outproduce mail alone by at least 2.5 and by as much as 5 to 1, offering benefits to direct marketers.
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Roman, Murray
Full text: [Direct Marketing] Apr. 1978
Don’t Waste the Brainpower of Outside Consultants… Plan!
Innovative advertising ideas can turn into disasters. Two rules in approaching such projects are: 1. Do initial “spade work”, giving outside creators product, market, and project guidelines. 2. Carefully plan and prepare the initial meeting. Using common sense and a systematic approach are the keys to the necessary preliminary work. After defining the project, it can be determined whether outside, creative help is needed. Subsequent meetings should be held to: 1. present work accomplished thus far, 2. gather additional ideas, 3. ensure specifications, 4. gather input, and 5. note any item that shoud be developed further. Meeting goals, standards, and deadlines is crucial to a successful venture. Initial progress is most important, or wasteful expenses can quickly override profit margins and cause losses and a slowdown of future attempts at such programs.
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Valentino, David
Full text: [Direct Marketing] Apr. 1978
Fine-tuning ad campaigns
All types of retailers are beginning to employ 2 basic marketing practices which leading national advertisers have recognized for some time: targeting ads to selective audience segments and positioning themselves in the marketplace. With this new sophistication has come dramatic departures in the manner in which ad campaigns are shaped and in media selection. Numbered among the changes are: 1. greater emphasis on market research to keep tabs of how customers perceive the company, 2. long-range advertising planning, 3. a consensus that a coordionated media mix, in most cases, produces the most effective results, and 4. enhanced communications between the advertising/marketing operations and the merchandising end so ads accurately reflect what is in store. Marketing techniques such as the above are even filtering into direct mail operations, as chains seek economies to offset the effects of steadily escalating postal rates.
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Full text: [Chain Store Age Executive with Shopping Center Age] April 1978
Multiple Criteria Effects in a Mail Survey Experiment
In this research, a factorial mail survey experiment was conducted to investigate response rate, response quality, and response bias effects related to the usage of 3 response inducement techniques. The results of the investigation reveal that the 3 inducements (cover letter message, survey sponsorship, and return envelope postage) decrease sampling error and survey costs without introducing systematic survey errors. Specific results include: 1. The type of cover letter was found to have an effect on both response rate and response quality, a science appeal producing the best results. 2. Survey sponsorship was found to affect response rate significantly, university sponsorship yielding the best results. 3. The type of return envelop affected only the response rate, regular stamps rather than business reply envelopes yielding the best rate.
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Jones, Wesley H.
Linda, Gerald
Full text: [JMR, Journal of Marketing Research] May 1978
Rapid growth of premiums leads to more sophisticated pretesting
With the rapid growth of premiums and incentives, the test marketing preceding them is becoming well-planned and tested the same as other marketing programs. At present, only a few are pretested with most being one manager’s choice. Testing need not be overly involved. There are several tests which can be effective. The point of purchase is a good point to conduct surveys. A premium may be seen favorably in one area and disliked in another. Several items should be offered at the same time and the shopper asked to rank them. Focus groups are a good means of testing if each individual’s reaction is assessed before the group discussion can influence his initial opinion. The price shoppers expect to pay for the premium is also an important consideration. A direct mailing describing the product can be used, but 2 groups should be on the mailing list, one containing people who have bought premium items before and one with the names of those who have not. If the results of these groups are nearly equal at a favorable level, the premium offer is likely to be successful.
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Ashe, Sydney
Full text: [Advertising Age] May 1, 1978
Magazine Execs Voice Need for Ad Frequency
Product Marketing conducted interviews with top executives of leading consumer magazines on their observations regarding the effective utilization of health and beauty aid dollars in advertising. The majority of the executives felt that advertising has been very effective and innovative because sales have been going up. They were then asked how they would convince a prospective advertiser that print advertising would work. The answers were: 1. botom line sales increasing if the advertising is working, 2. high volume mail response, 3. advertisers coming back year after year, and 4. direct response from a retail ad. Other topics discussed were: 1. what proportions of television and magazine advertising they would use, 2. what guidelines would they follow if they were a buyer rather than a seller of health and beauty aid advertising, and 3. what is wrong with some advertising.
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Full text: [Product Marketing] June 1978
Nine-point Sales Campaign Triples Membership in One Year
The National Film Society (NFS), Shawnee-Mission, Kansas, developed a 9-point sales program that tripled their membership in one year. The NFS is a non-profit educational and historical association whose purpose is to preserve and protect the heritage of American film. The NFS first researched their market and after finding it much bigger than they imagined, decided to reach the potential members with an intense sales campaign. The campaign included: 1. direct mail to selected lists, 2. bind-in membership application forms in their bi-monthly magazine, 3. flyer inserts in shipments of film, 4. ads in other magazines, 5. follow-up on membership expirations, 6. an “Every Member Get a Member” program, 7. sample copies of the magazine to VIPs, 8. a film society Seal of Good Practice program, and 9. a sign-up program at convention time.
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Neil, Randolph L.
Full text: [Association Management] June 1978
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January 21, 2012 12:00 am | 
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