Direct Marketing: Package Goods Shelve Direct Distribution
Marketers of package goods have been very slow to use direct marketing techniques. There have been some very successful experimental efforts, such as that of General Foods’ Gevalia Kaffe campaign, which is generally acknowledged to be a creative example of selling package goods via direct response. Sara Lee Corp. also has pioneered a successful effort, selling Superior Coffee and the Sir Thomas Lipton Collection of teas via mail-order catalog. Rumors are that other projects are in the works, but it is not clear just how feasible package goods executives feel that direct marketing will turn out to be. Some of the reasons for lack of interest in direct mail are probably the low markup of most package goods at retail, the clear superiority of supermarket selling over the mail system, and the conflict that occurs when manufacturers compete with their own retailers by selling direct. Some package goods firms have entered direct mail and now are getting out. For example, General Mills has sold The Talbots, and Quaker Oats Co. has sold Brookstone Co.
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Bittman, Mark
Full text: [Advertising Age] Oct 27, 1986
Direct Marketing: Tailoring Catalogs to Fit Corporate Personality
Some direct marketers and retailers are so concerned with their images that they are changing the look and style of one of their primary marketing tools — their catalogs. They are increasingly aware of the catalog’s role in creating an image, moving merchandise, and reaching customers. The result is that some catalogs have become soft-sell appeals that play on a buyer’s purchase motivations rather than selling through price alone. Stan Freeman, vice-president/creative director of Allied Graphic Arts, says selling the image of the client is the most important factor in creating a catalog. Many examples illustrate the changes that are taking place. Esprit De Corp., for instance, now uses real people rather than models for photographs in its catalog as part of its campaign to demonstrate that its clothes are made for real people, not just models. Specialty stores are not the only ones worrying about the images their catalogs create. Larger chains are pressing for catalogs innovative enough to differentiate them from the competition. The Gap has brought its catalog in-house in an effort to develop a more upscale image.
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Busch, Anita M.
Full text: [Advertising Age] Oct 27, 1986
Direct Marketing: Fundraiser Seeks Gays to Enlist Against AIDS
The Human Rights Campaign Fund, a gay and lesbian political action committee (PAC), has been sending direct mail pieces to raise campaign money for congressional candidates who advocate allocating federal funds to research and education concerning acquired immune deficiency syndrome (AIDS). The Kamber Group (Washington, DC) is heading the fund-raising effort. Hopes are that the growing threat of AIDS will motivate homosexuals to give out their names and donate their money. Kamber Group director Victor Kamber hopes, in the process, to organize the gay community to form a base of regular contributors to the campaign fund. The almost fanatical concern for privacy of the homosexual community makes it especially hard to reach, and few, if any, mailing lists are available that could be of help in reaching this segment. Kamber is using conventional market segmentation techniques to build up what it hopes will be a viable mailing list. The donor base of the human rights group has tripled since 1984, and its ranking among the highest independent PAC contributors is growing steadily.
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Edel, Richard
Full text: [Advertising Age] Oct 27, 1986
Agency Banks on BankAmerica Test
Financial institutions are now using direct mail to sell their banking services. San Francisco CA-based Bank of America has initiated a campaign, which is featured, using direct mail. From the results of the campaign, other banks will soon follow the trend.
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Gilbert, Betsy
Full text: [Advertising Age] Oct 27, 1986
Tax Law Hits Non-Profits
The 1986 Tax Reform Act will affect the direct marketing efforts of nonprofit institutions. Many organizations are building up current campaigns to try to persuade donors to give generously in the current tax year because some tax benefits disappear in 1987. The full effects of the law will not be felt for at least a year, but 2 provisions are of particular concern to nonprofits: 1. By subjecting the appreciated value of gifts of property to the minimum tax, deductions are effectively limited to the original purchase price of the gift. 2. Deductions by nonitemizers for charitable donations have been eliminated after only 5 years on the books. Some nonprofits are mentioning these tax implications in their campaign literature, and some are even meeting face-to-face with large contributors. Most are not making major changes, however, because the full impact of the regulations is not known.
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Gunnerson, Ronnie
Full text: [Target Marketing] Nov 1986
”Do You Know Where Your Messages Are?”
The most important factors to consider in the evaluation of the direct mail marketing campaigns are the quality and suitability of the mailing list being used. Lists should be maintained carefully so that marketers can reach adequate numbers of logical prospects effectively. Mailing lists can be classified into 3 distinct types. First, a response list addresses a group of prospects who have demonstrated an interest in a certain type of product or service by ordering it or inquiring about it. Second, compiled lists are prospects that are grouped together because they have certain common economic, personal status, or other demographic characteristics. They are generally segmented by area and by individual household or groups of households. Finally, business lists are particularly useful in selling a product to a vertical market that can be readily identified. For marketers, the best list may be one that combines certain elements of all 3 types so that products are matched effectively to appropriate prospects.
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Mitchell, Alwyn
Full text: [Sales & Marketing Management in Canada] Nov 1986
Polo matches, art auctions and banking
The Private Banking Group campaign by the Bank of Boston was aimed at wealthy consumers, targeting prospects with sizable holdings or involved in complex transactions. Prospects received elaborate mailing detailing select services, programs, and social events such as private viewings of art exhibits, auction previews, polo matches, and art advisory services at Sotheby’s. Results were a 300% increase in the customer base, a 900% increase in outstanding loans, and the capture of a 20% market share.
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Anonymous
Full text: [Direct Marketing] Nov 1986
Follow-Up Sales Letters Produce Extra Profits
If an initial sales letter that is part of a direct marketing effort fails to produce the desired results, follow-up mailings may bring a response and produce extra profits. Some guidelines for preparing effective follow-up letters include: 1. Each mailing must be considered a campaign in itself, not part of a previous one. 2. Be sure to change the looks of the mailing envelope in a follow-up mailing, since people could be reminded of the unsuccessful mailing if the follow-up looks the same. 3. It is wise to alter the contents of the mailer also. 4. The more testimonials that are included, the better. 5. A carbon-copy of the first letter attached to the second may be an attention-getter. 6. It may be possible to offer price cuts or a free gift to attract the recipient’s attention in a 2nd mailing.
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Brock, Luther
Full text: [Direct Marketing] Nov 1986
Take a Cue from Accounting … Yes, Accounting
Business-to-business marketers can reduce the risk in marketing decisions by using the disciplined approach of an accountant. A marketing ledger can be employed to record the cost of each sales action, from direct-mail pieces to field sales calls. When the company obtains orders, entries can be made to represent marketing credits. Systematic analysis of the marketing ledger can result in a profit-and-loss statement. A marketing aging report, a statement of how quickly a firm gets its money from customers, would allow marketers to examine the relationship between the time they spend marketing money and the point when revenue is received. The concept of rate of return involves understanding the costs associated with establishing a new account and the revenue that results from it. Decisions about marketing investments in the salesforce and advertising can be made by calculating that rate of return. Marketing credit ratings can guide salespeople to accounts that bring the highest return on investment.
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Stryker, Charles W.
Full text: [Business Marketing] Nov 1986
Current bank advertising: ATM/POS promo takes two-pronged approach to upping network use
The Florida Interchange Group is running a $1.3 million campaign to promote its Honor ATM/POS network. The campaign began with direct mail to member financial institutions explaining the program and promotional support programs, which include statement stuffers. A 20 week radio campaign is planned between June 1986 and April 1987; over 100 institutions have asked for support materials.
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Anonymous
Full text: [Bank Marketing] Nov 1986
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