Three Jailed For Marketing Violation
November 2, a federal judge imprisoned Victor Wilcox, Belinda Sweeney and Lee
Churchill for violating a previous injunction ordered in June to cease their
telemarketing of credit cards.
The three, operating under several company names, were offering credit cards for
$99 but actually only delivering a list of banks that offer credit cards. In
June an injunction was ordered and their assets were frozen. Since then, the
three have continued selling the cards and have netted over half a million
dollars.
Wilcox, Sweeney and Churchill will remain in jail until they account for the
recent profits or pay the money back.
Multicultural Marketing
Minorities make up 25 percent of the US population and yet only 1 percent of
marketing is directed to these groups.
This presents a huge opportunity for the shrewd marketer. Take a look at these
statistics:
** 70 percent of Hispanics read the direct mail they receive and actually want
more. The Hispanic population has reached more than 11 percent of the US
population and Hispanic buying power has grown 56 percent in the last 10 years.
(Source: Luna Bacardi Group)
** The US Asian population is the fastest growing ethnic group. In the US there
are currently 10.5 million people of Asian descent and that number increases 20
percent every year. (Source: Admerasia, Inc.)
Election 2000 And The Direct Mail Industry
Wondering what effect this year's election might have on the direct mail
industry? Two supporters of the direct mail industry failed in their bids for
another term. Senator John Ashcroft and Representative Spencer Abraham,
Republicans, both were supportive of the industry and opposed to any regulation
or taxing of the internet.
Also this year, due to subcommittee rules, chairman John McHugh, Rep.-NY, will
be forced to step down after 6 years of work on the Postal Reorganization Act,
H.R. 22. Unless a waiver is granted that will allow McHugh to continue, the fate
of postal reform legislation will be left to his successor.
The End Of American Family Sweepstakes
American Family Enterprises sent its last sweepstakes mailing in August of this
year. AFE, which is partly owned by Time Inc., decided to finally end the
sweepstakes mailings in the aftermath of changing sweepstakes laws. In the past
few years, AFE has experienced a rapid decline in response to the mailings which
brought into question its profitability.
But you haven't heard the last from AFE as it has several projects in the works
already. One plan would allow children to raise money for their schools by
selling magazines. Yet another, called "cause-related" marketing, has
AFE selling magazines at discounted rates and donating part of the profits to
certain charities. In the meantime, AFE will focus on standard direct mailings
selling magazines to its current customer database built from the years of
sweepstakes mailings.
USPS News
** Targeting Dot-Coms
Twice a year since 1996 the USPS has targeted small business in there campaign
to promote the use of direct mail. This year marks the first time they will
include internet companies in their efforts.
Half of this years 4 letters to be sent will target dot-com companies.
** Plans for the Holiday Season
The USPS's strategy for this years fall mailing season includes adding temporary
employees, new automated flat-sorting machines and an improved Drop-Ship
Appointment System. The system allows mailers to make appointments with
processing facilities to unload their trucks at predetermined times.
Direct Marketing vs. Internet Marketing
The USPS has reported that they expect a 5 percent increase in Standard A mail
this year. One of two reasons cited to explain the increase - migration back to
direct mail from internet marketing.
Why? In past issues you'll find many reasons why internet marketing has not
lived up to its expectations.
More on this topic can be found in the September and October issues. Read past
issues at http://www.mailcci.com/past_issues/.
November News Poll
Results of the October poll: Where do you put your money?
88% answered Traditional Marketing
3% answered Internet Marketing
9% answered Both
November Poll: Where will you spend the most on gifts?
A) Store purchases
B) Catalog and Mail Order purchases
C) Internet purchases
Send your vote to webmaster@mailcci.com.
We'll post the poll results here in next month's e-newsletter.
www.mailCCI.com
We have updated our online variable
data printing (VDP) page. It is now easier and faster to
create a customized letter online. We introduced this page to showcase on-demand
printing and variable data printing technology that has become very important in the direct mail
industry.
You can see personalization online now at http://www.mailcci.com/variable_data_printing/index.asp.
Instantly, you can read a sales letter designed to include variable information
that will change each time the letter is created.
After you see how powerful this technology is, call your CCI sales
representative and we'll tell you about our digital laser printers that make it
all possible.