Marketing’s Quiet Revolution
Marketing and advertising are undergoing a revolutionary growth in direct marketing. Books, book clubs, magazines, clothing, housewares, general merchandise, crafts, and hobbies have contributed to this growth. Business-to-business selling and direct marketing of financial services also show great potential for future growth. The true revolution, however, is in the use of computers in direct marketing and in the diverse nature of conventional media. The telephone is an important tool in direct sales, but is prone to creation of a backlash. Radio will continue to be a good medium, as will direct mail. The electoral register ACORN, in the UK, will facilitate tailoring of messages to fit customers’ lifestyles. Laser- and ink jet-addressed mail is reasonably priced, if bulk mail is used. The biggest changes will be in television, because of the introduction of video cassettes, teletext, cable TV, and viewdata systems. Direct marketing’s advantages are measurability, accountability, and the potential for great growth.
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White, Andrew
Full text: [Campaign Europe] Feb 1982
Mutual revamps its repo to fight funds
Buffalo Savings Bank set its new retail repurchase agreement rate at five basis points above the Donoghue’s average of money market funds, but required a $10,000 minimum because upper income households were being targeted. A direct mail campaign would be targeted to $40,000-plus households to promote the product.
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Anonymous
Full text: [Bank Advertising News] Feb 1, 1982
Office Space Marketers Should Develop Building ‘Personality’ to Attract Tenants
Earle Palmer Brown, founder and chairman of a commercial real estate agency in Bethesda, Maryland, suggests that office buildings should be given a personality or a theme. Developers should emphasize in promotions what distinguishes a property from others. An advertising agency should be involved in the early planning stages of a ”personality plan.” Types of businesses in the building’s vicinity should be assessed, and direct mailings made to desired tenants. Selecting a name and theme for a building should not be taken lightly. Brown recommended that developers invest in desirable tenant amenities, such as an attractive lobby or cafeteria. Brown’s agency has conducted ad campaigns for numerous buildings. Example.
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Higgins, Kevin
Full text: [Marketing News] Feb 5, 1982
Ad Agency’s ‘Talking Shoe’ Promotion Effectively Reaches Seminar Prospects
Bowes/Hanlon Advertising Inc. of Atlanta, Georgia, recently discovered a successful method for opening doors to sales representatives. The agency was hired by Merlyn Corp. to develop a direct mail promotion for a series of data processing seminars. To get companies to sponsor videotaped sales presentations at the seminars, Hanlon delivered shoeboxes to 12 prospects. A man’s shoe was inside the box. Inside the shoe was a microcassette recorder with a personalized message that explained how sponsoring a videotape segment could aid the company in contacting up to 300 potential buyers at a cost of only $35 per person. The technique was successful in reaching busy executives, and half of the recipients of the shoeboxes bought the idea.
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Higgins, Kevin
Full text: [Marketing News] Feb 19, 1982
ADVERTISING WORLD Tour operators
The costs eligible for the subsidy include consultant fees and professional services used in tour development, brochures, displays and other sales aids, advertising campaigns and direct marketing programs. “We expect a minimum 10 to one return on our investment,” in that if the $1-million is spent, there will be a $10-million expenditure in Canada, said Pierre Turcotte, CGOT director of market field operations for Canada.
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Full text: [The Globe and Mail] Feb 24, 1982
Developing New Accounts
Hahne’s Department Store (Newark, NJ) added more than 100,000 new charge accounts in 1980, even though it was a very difficult year for credit. The success in adding these new charge accounts can be attributed to: 1. the aggressiveness and creativity of the credit manager; 2. the cooperation and support of the management team; and 3. money. Hahne’s views credit as a merchandising tool. The following are some of the ways in which Hahne’s Department Store aggressively promoted credit: 1. instant credit-a customer with a major bankcard was given a line of credit within 5 minutes; 2. check conversion/mail solicitation-a ”check” customer was solicited by mail to open an account; 3. check conversion/telephone solicitation-the customer was solicited by phone; 4. cash conversion-the company offered a 20% discount to ”cash” customers who qualified for opening an account; 5. new residence program/mail program-account information was sent to people who had recently moved; 6. mail program/pre-screen-this was a mail campaign followed by a telephone solicitation. All Divisions of Hahne’s supported this credit program, which contributed to its ultimate success.
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Kane, Alan T.
Full text: [Retail Control] Mar 1982
GE Credit Girds for Tough Times
Because of the uncertainties of active new competition, volatile interest rates, and inflation, General Electric Credit Corp.’s (GECC) Bart Ladd is redesigning the firm’s advertising into a unified, sharply-focused corporate image campaign. When he took over, GECC major lending businesses administered separate ad budgets. Ladd consolidated the operation, unified and streamlined the media list, and diverted $4 million for a corporate image campaign to promote reasons for doing business with GECC. A benchmark study showed that GECC had public awareness problems. Customers’ views of the company’s ”personality” were contrary to the image GECC wanted to project. Ladd began an image campaign to correct these problems. The goal was to personalize the firm in the marketplace. Total trade advertising this year will be $2 million, and the Family Financial Services Division will experiment with tv advertising tied in with direct mail. Trade ads will be reduced somewhat and used for public relations purposes. GECC’s backing of Atari has been already cited in a number of ads as an example of the firm’s unconventional and foresighted loans to enhance its image to prospective customers. Illustrations.
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Anonymous
Full text: [Marketing & Media Decisions] Mar 1982
Test Your Mailings Without Mailing Multiple Tests
Successful direct mail selling requires offering goods for sale rather than simply stating that they are for sale. This means presenting, which involves price, paper quality, colors, and typeface. To help determine optimum elements of the direct mail effort, research into customer preferences and attitudes is useful. The research process operates from the general, the store or product name, to the specific, or tactics. If the customer is ”thought-filled” regarding the company or product, he or she has decided upon an action, and research simulates the thought processes to determine that action. The subject of the research interview must be ”thought-filled” about the product and must be shown 2 products. Response to the first item is a response to the company, while the second item’s response is a reaction to the first and the company. Descriptions, when measured, can indicate the most profitable direction for marketing. The research will be more effective if bias can be eliminated. Also, the closer the testing procedure gets to the respondent’s emotional reactions, the more valid the results will be.
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Roman, Hope S.
Full text: [Direct Marketing] Mar 1982
Printing Advances Mean Cost Advantages for Mailers
Advances in printing technology have affected all phases of direct mail, but the main concern is still cost-efficiency. Technological advances in press equipment offer a key because they are faster, more accurate, and produce higher quality than older equipment. Tests will increasingly be produced on an 8-page web rather than being sheet-fed. Make-ready time is up to 50% less than several years ago, speed is up to 100% faster, and paper spoilage is about 5% less. In-line finishing will be used increasingly for economic reasons, and this, combined with bold graphics, will increase the profitability of direct mail. Future technological advances will include: 1. greater press speeds, 2. increased automation and hence fewer personnel, 3. in-line finishing refinements, 4. more use of in-line finishing by smaller producers, 5. in-line finishing at press-rated speeds, and 6. more intricate products on lighter paper stock. The cost of this new technology is high, however, making the production of an acceptable response even more important. Highly knowledgeable and educated professionals are needed to communicate effectively. It is a good idea to use the suppliers’ creativity before specifications are finalized.
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Feldmar, Gary
Full text: [Direct Marketing] Mar 1982
Multi Media Program to Develop New Accounts
Hahne’s Department Store (Newark, New Jersey) credits its increase of 100,000 credit accounts in 1980 to aggressive work in 6 areas. Their instant credit program, established in 1980, offers credit within 5 minutes to holders of major travel and entertainment cards (T & E) or bankcards. The success of this program depends upon the salespeople, so Hahne’s conducts training and refresher courses. Signs placed throughout the store advertise the program. The store’s check conversion program consists of a letter mailed to check customers requesting information necessary for credit verification and inviting the customer to open an account. Follow-up calls by an outside marketing service using a prepared format complete the process. A similar cash conversion program sends the same letter, but includes a 20% discount coupon for use if the customer qualifies for the account. A mail-only solicitation gets names from a major publisher, then sends a letter of welcome and a tear-off credit application with stamped envelope. Telephone solicitors offer credit accounts to customers, and there has been a 75% acceptance rate.
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Kane, Alan T.
Full text: [Direct Marketing] Mar 1982
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