Successful List Testing: Finding a Valid Cross-Section
The key to the whole concept of testing is reliability, and in general, the larger and more representative the sample, the greater the degree of reliability. With direct mail list testing, however, it is very difficult to obtain a valid cross-section of a list. For example, any list the direct mailer purchases is constantly changing as the circumstances of the people comprising it are changing. Lists must be cleaned and updated to remain accurate.This situation means that the direct mail marketer should try as much as possible to know exactly what he is getting every time he orders a list, being certain of the ways it is maintained, what methods are used for testing it, etc. Mailers tend to test in larger quantities than other marketers to increase reliability and validity and to obtain a larger number of actual orders. Today, some mailers are using Comselect, a computer based list analysis system that enables the mailer to select lists having individuals of particular psychographic and demographic characteristics.
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Stevens, Ralph
Full text: [Direct Marketing] Jan 1980
Put Your Prospect in the Picture
An innovative technique is being used today by some direct mail marketers that involves placing the reader right in the action being described in the mailer. For example, a letter from Radio Corporation of America (RCA) places the reader in a record store selecting records and tapes. The story is told in the present tense with action in which the reader plays a part.The you-are-there narrative approach to a sales presentation can enhance the interest and involvement of the recipient. Americans will read promotional literature only when it captures their interest and imagination, and this new approach can be utilized to sell almost every sort of product or service. The you-are-there approach should be used only for part of a sales letter and should not be overdone. It can be used to sell cosmetics, health insurance, men’s clothing, etc.
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Brock, Luther
Full text: [Direct Marketing] Jan 1980
50 Direct Mail, Copy, and Art Rules
Guidelines to aid in creation of better direct mail presentations include: 1. Get the reader to open the envelope by such means as a free offer stated on the envelope. 2. Keep copy simple, avoiding complicated words, sentences, and paragraphs. 3. Avoid too much white space or unused white area in the mailer. 4. A working dummy of the mailing piece should be made by the art director to double check for errors. 5. A letter to personalize the offering should always be included in the mailing package. 6. Make full use of color.7. Know and make clear the difference between a product feature and a product benefit. 8. Make it hard for the reader to stop at the end of a page, i.e., end the page in the middle of a sentence. 9. Use photography and illustrations to highlight and emphasize the product being offered. 10. Be friendly in the copy so as to make friends for the company and the product. 11. Research the product until you find a unique benefit that competitors cannot or will not match. 12. The response device should help sell, rather than just being a mechanism for ordering.
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Anonymous
Full text: [Direct Marketing] Jan 1980
Growing Trust in Direct Marketing Is Benefitting Insurance Sales Figures
Changes in life styles have had a great impact on insurance marketing. With the increased mobility among the general population, many insureds are now looking for continuity with the company rather than continuity with their local agent. Companies have realized this, and now almost every company uses the mail to maintain policyholder contact as well as to sell group and association plans. Direct mail has become a recognized marketing strategy indicating a significant shift in consumer buying patterns including the purchase of life, health, and casualty insurance.A major trend has been the entrance of more married women into the work force, and insurance protection for both spouses is being thought of as an economic necessity. More than half of the policies sold by mail are being bought to cover women. Women bought 27% of new policies in 1977, up from 24% in 1972. Older members of society are becoming more important in the direct marketed insurance marketplace. About 10% of the US population is 65 years and older, and for this group, direct marketing is particularly suited as a distribution alternative for the kinds of insurance they require. Senior citizens appreciate the ease and convenience of shopping by mail, and they can read and study product information at their leisure.
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Flieder, John
Full text: [Advertising Age] Jan 21, 1980
Direct Marketing: Ever-Present Tool
It is difficult to remain oblivious to the variety of products being marketed through direct marketing, the loosely defined technique that eliminates the middleman. All of the many direct marketing approaches combine the advertising and merchandising aspects of marketing. They are based upon the concept of segmentation, and they offer opportunities for sales to be closely monitored. They also share evidence of phenomenal growth. One cause of that growth is the tremendous increase in the number of working women. Another factor is the decline of the independent merchant. There is also the trend of consumer’s showing trust in the direct marketing process as more and more reputable companies become involved.The appeal of direct marketing is seen as more a matter of convenience and selection than cost savings as consumers of directly marketed items do not get any real cost breaks. The advent of 800 phone numbers and widespread access to credit have made it much easier for many customers to order. The essential problem for the industry is to identify those customers most likely to respond to direct marketing approaches. Computerized segmented lists have greatly aided in that process. The lists are based on customers’ buying history and their frequency of ordering. Though direct marketers face the problems associated with inflation, direct marketing is less vulnerable to the effects of periodic downturns in the economy.
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Galginaitis, Carol
Full text: [Advertising Age] Jan 21, 1980
Uncomplicated Approach Aids Growth of Small Agency
The objective of many small agencies is to write as much business as possible as competitively as possible and to service accounts well. Available methods of solicitation are varied and include mass mailings, telephone solicitation, and thoughtful use of an expiration file.Mass mailings can be effective when letters are sent to specific groups giving a description of the agency and what it can offer and requesting a response. The expiration file can be continually monitored, and accounts that have been lost can sometimes be regained if the client is willing to give the agent an opportunity to offer a second quote. Phone solicitation is time consuming; one procedure is to pick a desirable category of business in the Yellow Pages and then just start making calls.Customer satisfaction should be first among priorities, followed by protection of the companies represented. An agency of any size can strive to win national and international accounts if it is willing to assume an aggressive selling stance.
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Love, Richard P., Jr.
Full text: [Rough Notes] Feb 1980
Will Ads Curb the Energy Crunch?
The Department of Energy (DOE) wants to reduce US energy consumption by as much as $20 billion a year and is asking congress for $50 million in advertising funds to promote a ”conservation ethic” among Americans. DOE plans to model its campaign on a test program carried out in New England last winter that used direct mail, radio, and television and a very successful Canadian program instituted in 1973.The Canadian program showed 2-3% energy consumption decreases since its inception, when consumption was growing by 6% a year. Private sector advertising in both Canada and the US by large corporations may also be contributing to energy conservation efforts and/or results. DOE is hopeful that the proposed campaign will work, based on its assumption that $69 million will be cut from the collective home fuel bill in New England this winter. This reduction would represent $25 savings for every $1 spent on advertising.
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Anonymous
Full text: [Marketing & Media Decisions] Mar 1980
How Atcost Rebuilt After the Crash
In the last few years, Atcost, the UK’s largest manufacturer of reinforced concrete structural frames, has expanded its product range and diversified into completely new markets. It is a leader in the field of agriculture and has penetrated the industrial market sectors extensively. Because of the recession of 1974-1975 and an economic downturn in the construction industry, Atcost was on the brink of liquidating, yet the company managed to survive and continued profitable trading due to the determination of its 6 directors.The directors’ policy is to break into new markets when the economy is rough, to consolidate a product range already existing, and to reorganize the internal structure of the company. Atcost developed one product to do the same job for 4 or 5 different industries, rather than using 4 or 5 products to do the same job for one industry. The most difficult task faced by Atcost was to restore public confidence. The fact that Atcost was well funded helped to convince clients and suppliers that the company was reliable, and editorial coverage which was favorable in the trade and business press aided the industry in gaining public confidence. Launching an advertising campaign was the most direct method used to restore the confidence of the public, as well as press releases sent out by the company and direct mailings to different industry sectors.
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Cooper, Ann
Full text: [Marketing] Mar 1980
Telephone Marketing: Innovation for the Future
The telephone constitutes the fastest growing medium in the direct response industry. The telephone company’s advertising campaign with the theme of ”reach out and touch someone today” also states the opportunity that the telephone is offering to all direct marketers. There is real marketing power in the telephone in that it allows for 2-way communication in which the marketing presentation can be tailor-made for the particular customer on the line. Telephone marketing assures that the message is really being delivered, it is easy, and it offers quick response, thus making it also an excellent testing device.A telephone marketing program must be carefully planned so it will be well adapted to the particular product line or service and image concept that is to be delivered. State laws and regulations must be monitored to be sure of any effects they may have on the telephone campaign being planned. For example, some states have regulations covering the use of recorded messages. Telephone marketing has many applications ranging from sales of products or services to conveying special information.
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Achziger, John Henry
Full text: [Direct Marketing] Mar 1980
Forms Supplier Grows Through Mail Order
Regent Standard Forms, Inc., of Bellmawr, New Jersey, is an excellent example of good marketing and merchandising practices, and its growth reflects good business judgment and good direct mail planning. The firm concentrates on serving smaller establishments, producing new full-line catalogs twice a year. The catalog has a fundamental role in the sale of the many forms produced by Regent and, therefore, receives a significant amount of corporate attention and planning.An increasing number of orders from the catalog come via the telephone, and the firm’s 40 years of experience gives it knowledge of where its best market prospects are. In addition to the regular catalog, use is made of mini-catalogs and solo offers, and careful track is kept of the continually growing customer list. Minimum order quantitites are kept low to accommodate small customers, and order processing is well organized to avoid errors. Regent ships orders within 9 days of receipt and is dedicated to its long-standing unconditional money-back guarantee policy.
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Wasserman, Samuel
Full text: [Direct Marketing] Mar 1980
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