Direct Marketing Association (DMA) took a giant step forward Din recognizing the universality of direct marketing last month with announcement of its WEFA Economic Impact Study at its 78th Annual Conference and Exhibition at the Dallas Convention Center. DMA all but blessed the DM Flow Chart, which appears in Direct Marketing magazine every month (and has since early 1970s, when a definition was finally agreed to after bitter struggle to hammer out real meaning of Direct Marketing Concept).
"We believe our study is the first study of national advertising expenditure trends to measure the use of direct response advertising techniques in media other than direct mail," said DMA president/chief executive officer, Jonah Gitlitz, during the opening general session.
While DMA has done a dutiful job of keeping track of the growth of DMA and its conferences, companies, agency billings, and the number of consumers who shop by mail or phone, "the `big picture' has been elusive," said Gitlitz. An 1986-1987 study by Arthur Andersen & Co. was mired by "definitional problems," Gitlitz acknowledged. "What is direct marketing? Who uses it?"
For purposes of this study, WEFA adopted a board-level task force definition of direct marketing as "any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for a specific measured purchase."
WEFA then reviewed more than 5,000 pages of direct response ads from 1,300 magazines; 1,300 pages of direct response ads from hundreds of different newspapers; nearly 1,000 direct response TV commercials; almost 700 direct response radio commercials, and more than 1,100 direct mail pieces.
Here is what DMA learned:
* In 1995, when direct response advertising is used to solicit a direct order, generate a lead, or generate retail store traffic, it will result in nearly $600 billion in sales.
* In 1995, business-to-business sales from direct order, lead generation, and traffic generation are estimated to reach nearly $500 billion.
* Compounded annual growth rates of sales over the next five years will be 7.2 percent for consumer; 10.2 percent for B-to-B.
* One in every 13 jobs in the United States today is the result of direct marketing sales activity. Overall, one in every six jobs in the United States today is linked to direct response advertising support services, suppliers, and inter-industry.
DMA's study accepts that some 14 million U.S. businesses generated $14.5 trillion in total sales in 1994. The study then estimates direct marketing sales by Sales Location - Direct Order (mail order), Retail, and Personal Selling. Direct marketing sales are those generated as a result of direct response advertising in any medium. "Living study" does not include Yellow Pages advertising nor trade shows, nor Internet, but these adjustments can come later. The study indicates that 7.6 percent of $14.5 trillion aggregate 1994 sales at all three locations can be credited to direct response advertising. DMA handed out a 68-page executive summary following presentation. For a copy, call DMA (212/768-7277).
Many people Direct Marketing reporters talked to in Dallas are troubled by attempt to calculate just those sales that result from direct response advertising. Does it include sales over time, or just the first sale? But business will be fascinated with charts of direct marketing sales by industry (SIC) and projections for 1995 to 2000. At turn of century total U.S. sales will climb to $20.9 trillion. Direct marketing sales are estimated to be $1.65 trillion. This figure may well underestimate direct marketing activity, when most firms will have computerized customer files that can report annual total sales. In his presentation, Gitlitz emphasized importance of direct marketing in terms of jobs created. Such information will speak volumes when addressing federal and state legislators/regulators. The report goes a long way in explaining the universality/diversity of the concept, which is changing face of marketing worldwide. DMA board member Max Hart, director of fundraising, Disable American Veterans, said he was "extremely satisfied" with the study for measuring the economic impact of fundraising jobs on the economy.
Despite conventional wisdom which said the Dallas show could not outdraw last year's conference in San Francisco (the world's #1 destination city), officials reported a total of 10,683 as of end-of-day October 11. DMA's Gitlitz said delegates came from more than 25 countries. There were 615 speakers and 830 exhibit booths, he noted.
While talk among exhibitors was this year's double whammy - increased postage and paper costs - the focus in session rooms was clearly on the Internet, with attendees packing early-bird meetings to find out who's on the World Wide Web, what are they doing there, and whether they're turning a profit. Privacy, the environment and use tax seemed to take a back seat this year to the trendy Internet. One speaker astutely pointed out that less than 1 percent of commerce is done on the Net, but 12 percent of sessions and almost 40 percent of keynotes dealt with interactive electronic media.
Wired marketers had a few words of advice for their unplugged counterparts: get in the game sooner, rather than later. Sales is not the only goal, they said. The Web is also an ideal tool for lead generation, brand building, image building, information dissemination, and customer service. It can also convert companies from "ordinary" into "cool."
"[The Net] is not a new medium to be used in marketing, but a technology that will cause commerce to happen," said Phillip E. Broadbent, chief executive officer/chairman, The Evergreen Companies. "Just getting on the Web doesn't mean you'll do business. You must understand the Web. It must be engaging and interactive to be completely effective today."
Andrew Cohen, president/chief executive officer, Direct Resources International, said for the cost of studying whether or not to get on the Net, a company could be up and running - anywhere from $3,000-$75,000. There are two kinds of Internet marketers, he explained: "Nowists," who are currently selling merchandise and making money, and "Futurists," riding their Web site to see where the current takes them.
"Deciding if you're a Nowist or a Futurist will help your Internet strategy," Cohen said. "If you're a catalog company that markets to nonworking older women, I suggest you approach the Internet as a Futurist. To approach it as a Nowist defeats the purpose of being on the Net."
Cohen also provided luncheon audience with video interview clips of a variety of marketers currently using the Web: Pick Kurnit (a lawyer representing publishing, advertising and new media clients), Jaron Lanier (the dreadlocked whiz kid who invented virtual reality at age 22), Joe Rutledge (General Mills), Leo Toralballa (BMG Direct), Allan Cohen (NBC), Barry Wacksman (Direct Resources Interactive), and Jeremy Koch (people Weekly magazine).
"Is the digital age making you feel old? Or frustrated? Confused?" asked Cohen. "Don't worry, we are all in the same boat. Everyone thinks everyone else has a handle on what's going on. But I don't think anyone really knows exactly how all this will pan out."
800-FLOWERS reported it is doing 10 percent of its $200 million flower sales on the Internet. While new Web site (http://www.800flowers.com) is one of the most heavily trafficked sites, orders are pouring in from sites on America Online and CompuServe, which users perceive as safer than the Web for transactions. (CD-ROM catalogs are also part of the electronic media mix, although orders from this source can be mailed, faxed or phoned to an 800 number.)
Donna Iucolano, manager, interactive services division, said this new, important channel saves money and reduces human error, as orders are automatically entered and stored in database of 3 million customers (and another 3 million recipients). Confirmations are sent out automatically via e-mail. A 12-member interactive division will generate some $40 million in sales for the company this year, with very limited live contact with customers, Iucolano said.
"We are committed to the Net and to the Web because it is a tremendous opportunity to build an audience worldwide," Iucolano explained. "It is a great acquisition tool and a great retention tool.
Jenny Underwood, president, Evergreen CyberMart, said women are making their mark on the Internet. Now 40 percent of the surfer population, women are dialing up at work and at home for fun, information, and shopping. Marketers must be prepared for female clientele, Underwood said - "They tell you what they want. They want convenience, they want variety, they want new items often." "In many cases, your customers will tell you what to do next," she said.
Updating Web pages is a must - not every season, not every week, but every day, Underwood said. Seventy percent of surfers log on every day, she told a session. Some cybernauts complain if a Web site goes six hours without new content.
For catalogers, Underwood recommends:
If it's seasonal, make it timely.
If it's a new edition, make it fresh.
If it's for the holidays, make it memorable.
If it's a special event, make it happen.
If it's a contest, make it fun.
If it's a competition, do it first.
If the cataloger errs, customers will point it out. Most of the time, all is "forgiven" if changes are made quickly, Underwood said. "The Internet is forgiving," she said. "They tell you what's wrong and appreciate timely change."
Communications should be in the form of e-mail: "If they choose to talk to you electronically, they want you to maintain that relationship," Underwood added.
Of course, catalogers are not the only marketers on the Web. Manufacturers are taking advantage of the medium to provide information on more than their products. Lifestyles condoms is winning praise for it site (http://www.lifestyles. com), said Underwood. Consumers are even willing to wait hours to download safe sex educational QuickTime videos. Although, the Web has not generated direct response sales, the simple site (10 pages) has paid off with a flood of good will and good press.
Underwood and Iucolano said getting the Web site is only half the battle. The other half is getting people to click over to your site. They suggested several ways to spread the word:
* Make a formal announcement.
* Publicize in relevant newsgroups.
* Cross-link to compatible sites.
* Hold a contest.
* Publicize Web address in catalogs and other direct mail.
* Get media attention.
* Get the Net community to think you're "cool."
The fastest hour of the week was commanded by master copywriter, Herschell Gordon Lewis, who took a session audience into the do's and don'ts of copywriting for the Web. While many speakers pondered and pontificated, Lewis demonstrated good Internet writing samples from actual Web pages, and also deconstructed poorly written Web pages in his brutally honest style. (See last month's and this month's issues of Direct Marketing for part one and two of Lewis' five-part series on copywriting for the Net.)
One pleasant surprise was finding Tony Levitan of Greet Street, a San Francisco company changing the way people buy - and use - greeting cards. Greet Street is yielding 85 percent of the $7 billion market to the likes of Hallmark and American Greetings, instead focusing on the "the creme de la creme of the remaining 15 percent." The company features a line of sexy, offbeat, irreverent cards, as well as cards for the underserved gay, Hispanic, and African-American communities.
Unique product mix cannot be found in the average store nor in any mail order catalog, and is well suited to online medium. Search engine helps customers narrow down 250-card inventory (1,000 by November 1, Levitan promises) by clicking various criteria.
Early experiment on The Merchant (a coop CD-ROM catalog) was a near disaster because people were calling 800 number to order a $2 card. Now that main source is Web, AOL, and Compuserve, costs are way down. Cards are easy to store in small office. Staff of seven picks and packs, while orders go seamlessly into the computer.
One popular feature allows people to type in recipient's name and address, personal greeting and choice of font. For an extra $1.50, Greet Street will put a stamp on it and mail it. It is extremely popular with U.S. soldiers abroad and others living abroad. New service will take greeting cards to the next level - to the computer screen. Levitan demonstrated for Friday Report his prototype electronic multimedia greeting cards, which combine the greeting card product with animation and music. They can be e-mailed and viewed to anyone with an Internet connection and Netscape browser. "The future of thematic communications," he prophesies. Already, he has several highpowered media companies looking to link up to their Web sites.
"A lot of companies start with technology. We started with a business plan," said Levitan, whose title is "Creator of Chaos." (Partner Fred Campbell, "Creator of Substance," is yin to Levitan's yang). Visit Greet St. at Web site: www.greetst.com
Michael Troiano, president, Ogilvy & Mather Direct (O&MD) Interactive (formerly O&MD's Interactive Marketing Group) discussed the launch of American Express' (AmEx) ExpressNet on AOL. ExpressNet, which offers Amex account information, plus travel directories and a message board, combined information, promotion, and transaction to offer what Troiano called "digital direct marketing."
"The future of marketing communications is direct marketing. The future of direct marketing is interactive," Troiano said.
The service ultimately aims to please specific target market of "wired road warriors" - businesspersons on the road in search of good travel info, hotels, an restaurants.
DMA members will get more intelligence on new media marketing at the DMA Spring show in Los Angeles (March 17-March 20, 1996). Consultant Harris Gordon of A.T. Kearney (Cambridge, MA) will head up a DMA-commissioned study of new media direct marketing. Results will be announced at the conference. To participate, call Gordon at 617/374-2609.
Despite the futuristic leanings, many in attendance came to hear about the here and now. Postmaster General Marvin Runyon looked ahead to 1996 - USPS' 25th anniversary - in his general session address. Runyon said holiday mail will be met with "the most aggressive integrated holiday operations plan ever," consisting of more leased air cargo space expanded retail hours, and increase staffing.
As for reclassification, the Postmaster General said the independent Postal Rate Commission (PRC) is two-thirds of the way through USPS' proposal for Classification reform. "We remain committed to the essential reforms you told us you need," Runyon told attendees. "But approval by the PRC is far from a sure thing. We need your continued participation and support. [The PRC] must understand just how important these reforms are to your industry."
Runyon called on mailers to support legislative reforms that would make USPS more competitive. Internally, Runyon announced a program called "Customer Perfect," designed to encourage maximum performance in postal employees.
Beating the postage and paper blues was on the minds of many, including DMA's Alternate Response and Circulation councils, which hosted a session on alternates to direct mail. Thomas Slater, circulation director, Disney Magazine Publications, spoke eloquently on how the company is using direct mail alternatives to generate subscriptions for Disney Adventures magazine. Slater's group is inserting subscription promotions inside Lion King home videos, Oreo cookies, Motts Apple Sauce, Disney credit card statements, and take-one displays at Disney World and Disney retail stores. Such alternative media have produced 100,000 subs at 65 percent of what direct mail promotion would have cost. Slater advised circulation directors to partner with advertisers, swap insert cards, and seek out a "more balanced promotional meal." Direct Marketing Educational Foundation (DMEF) introduced two new recipients of coveted Edward N. Mayer Award for educational leadership: Lee Epstein, board chairman, DMDNY, and Geraldine Hedberg, co-founder, Lab Safety Supply Co. of Wisconsin, a major business-to-business mail order firm acquired by W.W. Grainger several years ago. Hedberg Foundation is major contributor to DMEF's educational agenda. DMDNY Board was on hand at Awards dinner Saturday evening to see Lee accept prestigious bronze flame. He presented DMEF with check for $40,000 to fund two future Collegiate Institutes.
Charles Cavanagh, treasurer of DMDNY, presented $5,000 check to Dick Montesi in memory of his late son, Charles Cavanagh Jr.
DMA's unsung heroes, the media relations/communications staff, once again made the conference accessible for international consumer and trade press. Hats off to Chet Dalzell, Christina Duffney, Donna Krampf and newest member, Doug Berger, formerly with Advertising Mail Marketing Association.
Survey Says Sweepstakes
Do Not Aid Subscriptions
Sweepstakes are failing to increase magazine subscriptions, according to a recent survey of circulation directors released by Vos, Gruppo & Capell (VG&C), New York.
A record 69 percent of respondents reported that volume of subscription sales from the mid-year stamp sheet mailings of American Family Publishers and Publisher's Clearing House was off this year. The average volume lost was 22 percent, compared to last year. Stamp sheet direct mail agents are the largest single source of subscription sales for the magazine industry, says VG&C.
"This fall off will have a dramatic impact on all other circulation activities," says Dan Capell, managing director. "According to the survey, 60 percent plan on increasing the volume of their yearend mailings."
The Fall 1995 Magazine Circulation Survey also found:
* One third of circulation directors polled plan to raise subscription rates in 1996, citing higher postage and paper costs.
* Spring direct mail campaigns are gaining favor, with 71 percent planning a mailing, compared to 52 percent last year.
* A record 75 percent of those polled lose money on the new business direct mail source.
* Fewer respondents (52 precent) did summer 1995 campaign, and those that did mailed less than the year before.
* Results from 1995 mailings were mostly positive-58 percent did better on summer mailings.
* Those surveyed did an average of 4.5 direct mail campaigns in the past year - a new high, surpassing last year's 3.9.
* Package costs were up 12 percent, with the average cpm of the direct mail control package at $385/m.
Lillian Vernon Calls Off
Planned Sale of Company
Lillian Vernon (LV), a New Rochelle, NY cataloger, announced recently that the proposed sale of the company to Freeman Spogli & Co., Inc., has been called off. In addition, the company said if current trends continue, fiscal 1996 earnings per share will be 10 to 15 percent lower than the $1.38 earned in the fiscal year ended February 25.
The company said financing could not be arranged due to lagging profits, higher paper costs, and a "general uncertainty" in the retail business. Los Angeles-based Freeman Spogli was to acquire a majority stake in the company for $19/share. But a statement from LV explained, "As a result of recent trends in the catalog industry, particularly continued increase in paper prices, general uncertainty in the retail sector and the company's expectation that its net income would not reach projected levels for the 1996 fiscal year, it was determined that financing for an acquisition at the agreed upon price of $19 per share could not be obtained."
In its first quarter ended May 27, the company reportedly lost $2.8 million on sales of $29.6 million.
Founder/chief executive officer Lillian Vernon said, "We now intend to focus on the operation of our business as we enter our key selling season."
800-Flowers Makes Debut
With TalkShop Program
800-Flowers has been launched on TalkShop, which has VoiceView capability. TalkShop is a computer-telephone integration program offered with VoiceView - enabled modems and personal computers. The project will allow consumers to shop from 1-800-FLOWERS' selection of flowers and gift items by using their phone and PC.
Users are greeted by a live 1-800-FLOWERS floral and gift consultant who can provide them with a visual image of floral products and gift offerings over the same phone line.
By combining the familiarity of a phone and the visual power of the PC, the companies hope to increase customer service and consumer confidence in electronic shopping.
Direct Marketers Comment
On Mail Reclassification
Direct Marketing Association (DMA) has filed comments on reclassification before PRC and asked it to approve the USPS proposal with minimum changes. DMA pointed out that the proposed classification wisely relies on pricing that is tied to the actual costs of handling certain types of mail.
In particular, it advises that economic factors, above all, must be considered when considering rates and regulations for the proposed new "standard" class of mail. "Standard" mail would be used virtually only by businesses. The DMA also asked the PRC not to lose sight of the overall objective of reclassification - ensuring a more competitive, viable Postal Service.
The DMA's comments coincide with the beginnings of hearings on the direct cases of "intervenors," those groups that have voiced opinions and concerns about the USPS proposal.
In concluding, the DMA stated, "From the point of view of fairness, from the point of view of efficiency, from the point of view of cost reduction, and from the point of view of overall USPS financial health, [these proposals] represent and improvement over the current scheme."
For more information about DMA's statement, contact the Washington, DC, office at 202/955-5030.
Poor Performance Ends
Essence's Mail Catalog
Essence has dropped its catalog run by Hanover Direct. Despite Essence's subscriber list of I million names and its recognized brand name - the Essence By Mail catalog - has been discontinued after a poor performance.
Geared toward African-Americans, the catalog posted its last mailing in May. Essence says it plans to revive the catalog on its own, but details were not announced.
While the 10-year-old Essence By Mail closes, there seems to be a trend toward "general market" catalogs finding their way into African-American households, Andrew Morrison of Nia Direct told The Wall Street Journal Meeting specific needs of African-Americans can be very profitable, but targeting a narrow audience with more generic products, as Essence By Mail did, can be risky business.
Men's Direct Mail Catalog
Launched by Nordstrom
Nordstrom has launched its second direct mail catalog, Nordstrom, The Catalog, Men's Edition. The 80-page fall/holiday catalog will reach customers nationwide in early October. The catalog is the second product of the company's direct sales division, which launched its direct mail catalog for women December 1993.
FTC Initiatives Discussed
By Varney at DMA Session
Federal Trade Commission (FTC) head Christine Varney discussed the FTC's new business/consumer privacy initiatives during a special breakfast session sponsored by the Direct Marketing Association at the Privacy & American Business' second national business and privacy conference in Washington, DC.
Varney spoke at "Managing the Privacy Revolution 1995," about developing initiatives for the new proposals and guidelines the FTC is expected to evolve. She presented her views on how personal information should be managed on the information superhighway.
The conference focused on privacy and the use of consumer information in direct marketing, credit and financial services, telecommunications, health and medicine, consumer affairs across industry segments, and employment fields.
Smith Barney to Review
Gander Mountain Finances
Gander Mountain (GM) has retained Smith Barney to review financial alternatives. The Wilmot, Wisconsin-based cataloger and retailer of outdoor recreational merchandise says it expects a net loss of $1 million to $1.5 million for the first quarter ending September 30, 1995.
The company cited lower than expected sales growth, margin pressures due to unfavorable product mix, and sharp increases in paper and postage costs for a decline from the year-ago quarter.
"While sales will increase approximately percent for the quarter, the company is being affected by sluggish apparel sales in both retail and catalog that 1 turn will lower the gross profit margin percentage," said Ralph L. Freitag, chief executive officer.
"With respect to operating costs, significant increases in paper prices and postage rates have hurt Gander's propitability along with the rest of the catalog industry," says Freitag. "In response to the current soft retail environment, we have enacted a number of cost control programs that will result in an annualized reduction in expenses of approximately $1 million."
As a result, GM's board of director has asked Smith Barney to help the boar study and assess strategic and financial alternatives for the company.
Ben Silver Collection Sag
Begins in New York
Ben Silver Collection is a rare family story which started out in New York in the 1930s and now resides in Charleston, South Carolina, at the site of Civil War's Fort Sumpter. Founder Ben Silver died prematurely in 1978. He started out as a manufacturer of expensive overcoats for the likes of Brooks Brothers. President John F. Kennedy nixed the market by not wearing them. Ben turned to upscale blazers with fancy buttons sold in college book, clothing, and department stores. Daughter Sue and her husband, Robert Prenner, abandoned their legal careers to breathe new life into the enterprise. The found 600 lead dies for making corporate, college, and prep school buttons. They moved out of the Flat Iron building in New York to Manhasset on Long Island.
In 1983, they moved to Charleston. Downtown Charleston was pretty run down, but there were signs of renewal. They bought an old building on historic King Street. The wholesale business was declining, so they opened a retail store in the front of their building at 149 King St. In 1986. Today, it is elegance all the way. But the big line is ties, authentic silk neckties. Rolls of silk stripes are shipped in from England and made into ties in Charleston to decorate store displays of blazers and fine shirts.
A big break came in 1980, while they were still in New York. They were approached by Ronald Reagan's inaugural committee. They wanted to know whether Ben Silver could provide 50,000 sets of blazer buttons in four weeks. It was a scramble. But they were delivered on time and the legal profession further dimmed in the Prenners' minds. Sue, who's president (Bob puckishly admits to being managing director), got a bee in her bonnet to start a catalog. In checking out some of their retail outlets, she discovered that clerks didn't know they had merchandise on hand. It was no wonder that selling to retailers was declining. Why not tackle the consumer directly?
Sue called L.L. Bean to rent its list. A company representative told her to contact a broker. Suggested Fred Allen of Mt. Pleasant, Texas. He rented the 5,000 names for the Prenners and became their perennial consultant. The Bean list worked. So they rented 25,000 more across five lists... Bean, Brooks Brothers, Talbots, Eddie Bauer, and one other. They all worked, so the catalog idea was alive. Fred's been instrumental in getting the Prenners through the cruel increases in paper and postage. The catalog has been trimmed in pages and a hair on the trim size. Focus is on ties $49-$120. Next year, $140. And they'll sell, says Bob Prenner. Sons Daniel and Jim are on board. Jim is constantly tweaking his Macintosh computers, is deep into budgeting, designing ads and catalog pages, looking for opportunities on the Internet, and analyzing the 153,000 customer list. Dan concentrates on corporate sales and schools, which is not an inconsiderable part of the business. They've opened a store in Hilton Head to dispose of slow movers and slightly imperfects. That, too, is working for the family. (85-010 VHH $39)
Jim McCann Discusses
Marketing on Cable TV
Jim McCann of 800-FLOWERS was featured on CNN's "Managing with Lou Dobbs" recently. The marketing utility's 1995 sales will top $200 million, up substantially from early 1993 when we interviewed McCann at his Westbury, NY, headquarters. He'll spend $30 million this year on advertising-half of it on television and radio. The other half will be used for direct mail to his burgeoning database of customers selling other gift ideas...baskets, goodies, candies. Mother's Day again proved biggest sale day of year with 435,000 orders, 30 times normal day's volume.
A total of 25 percent of sales comes from an expanding retail base. McCann's fleet of delivery trucks sports the 800-FLOWERS floral icon, and he will open 50 more stores next year. He was asked if he had plans to go public anytime soon. No reason, said McCann. He doesn't need the capital. His 20 percent commission for total sales provides the income for growth. But the interviewer missed the heart of the story by not digging out the marketing database connection, from which additional sales and customer bonding are made.
ADVO Inc., Examines Facets
Of Selling the Company
ADVO Inc., which is exploring the possible sale of the company, says it has retained Goldman, Sachs & Co. as its investment advisor to assist its board of directors in exploring strategic alternatives, including one or a series of transactions.
Alternatives also include reorganization or recapitalization or any similar transactions. ADVO said that no assurance can be given that any transaction will result from the exploration process.
The company has already decided to sell its Marketing Force subsidiary, and that it has been approached by several potential buyers. The sale will be treated as a discontinued operation for financial reporting purposes, said ADVO. The company posted earning per share of $1.05 on revenues of $975.4 million for its 1994 fiscal year ending September.
1-800-Mattress Launches
Bed Accessories Catalog
A catalog has been launched by 1-800-Mattress. As a logical extension to selling mattresses, the company - formerly known as Dial-A-Mattress - is now selling bedding accessories.
"After an intensive research study, the company determined that a growing segment of its customer base consists of upscale consumers," explains Jack Rayher, director of marketing. He said the customers are "time-poor" and seek fast, convenient transactions - and are willing to pay more.
The research also revealed that consumers are more likely to redo their bedrooms once they have purchased a new bed. Rayher said the catalog was a natural extension in that it offers comforters, sheets, pillows, and mattress pads. In the past, said Rayher, the company was not able to maximize its brand equity because it just had one product to offer - mattresses - a product people purchase every seven to 10 years.
The new product line is featured in a four-color catalog, mailed recently to 100,000 of the company's current customers in New York and Chicago.
Marketing Systems, Polk
Serve World Auto industry
A world-wide alliance to serve the global automotive industry has been formed, by Marketing Systems GmbH and R.L. Polk Co. Once completed, the customers of both Marketing Systems and Polk will gain access to the data resources and products of both companies.
Marketing Systems provides sales forecasting to the motor vehicle industry, including truck and component manufacturers. Marketing Systems also offers automotive data relating to price specifications, specialized studies, sales, registration, and production data to the auto industry based in Europe and elsewhere.
Polk has provided market information about the automotive industry in the United States since the 1920s and in Canada and Australia since the 1970s. Polk is partner with The Ultimate Perspective based in St. Alban's U.K., a provider of auto service and parts analysis products.
In addition, Polk has acquired DataCap Communications Systems of Stamford, CT. Datacap, now a division of Polk, will provide Polk with the ability to build a consumer information base by using customized consumer questionnaires and open channels to new markets. The information gathered through those questionnaires will help manufacturers and retailers understand the packaged goods and pharmaceutical needs of their customers and prospects.
Economic Impact: U.S. Direct Marketing Today
Rate of Growth of U.S. Direct Marketing Driven Sales (*Compound Annual Growth)
1990-1994 1994-1995 1995-2000 (actual) (estimate) (forecast)
Consumer DM Total Sales 5.90% 6.86% 7.19% Direct Order 5.42 6.40 6.60 Lead Generation 6.88 6.88 7.98 Traffic Generation 4.39 7.39 6.11 Total U.S. Consumer Sales 5.32% 5.41% 5.48%
B-to-B DM Total Sales 7.48% 10.53% 10.22% Direct Order 6.91 9.83 9.32 Lead Generation 6.60 10.77 8.95 Total B-to-B DM Total Sales 3.57% 7.03% 6.53%
Source: The Impact of Direct Marketing on the U.S. Economy. Commissioned by the Direct Marketing Assn., authored by The WEFA Group, 1995.
