Tuesday, August 20, 2019

#67 GONE FOREVER: The Sublime Joy of Tasting Blood

Issue #67 — Tuesday, August 20, 2019


GONE FOREVER: Marketers' Sublime Joy of Tasting Blood





“One day a man walked into a London agency and asked to see the boss. He had bought a country house and was about to open it as a hotel. Could the agency help him to get customers? He had $500 to spend. Not surprisingly, the head of the agency turned him over to the office boy, who happened to be the author of this book. I invested his money in penny postcards and mailed them to well-heeled people living in the neighborhood. Six weeks later the hotel opened to a full house. I had tasted blood.
    —David Ogilvy, Ogilvy on Advertising, Crown, 1983

A Big Oops…
As editor and publisher of WHO’S MAILING WHAT! I had the great pleasure of being in touch with marketers from all over the world. I vividly remember the story (but alas, not the name of the marketer or product) of a guy and his wife who bet the house plus their life savings on a product they deeply believed in. They sent out a huge test mailing and every day they went down to the P.O. box looking for BREs (Business Reply Envelopes).
     Nothing.
     Every morning they woke up with a renewed sense of dread. After a week-and-a-half still nothing. He, his wife and three employees were devastated.
     On the eleventh they day turned the key in the lock of the little Post Office box and found a slip of paper with a terse note: “Please see postmaster.”
      They went to the counter in abject terror and handed the note to a clerk who alerted the Postmaster. The old gentleman came over and introduced himself. “I’m sorry,” he said. “You have some reply mail here but we could not deliver it to you because there was no money in your Business Reply Mail account.
      The fledgling entrepreneurs had forgotten (or did not know) the basic inviolable rule. To receive Reply Mail you must deposit money in your USPS Business Reply account. He whipped out his credit card, and cash was instantly in the hands of the USPS.
     Whereupon the original clerk came over with two giant canvas sacks of Reply Mail which he plopped onto the counter.
     Suddenly the the little company had a real business—and the players had new lives and new careers!
     Knowing the rules in this business is essential!

Think for a moment…


These folks experienced the direct marketer’s ultimate thrill—an avalanche of Business Reply Envelopes that instantly validated his huge gamble and everything they had worked like hell and sacrificed for.
      These hundreds and hundreds of responses were tangible, tactile missives from real people from all over the country who believed in them! Each envelope literally contained a different sample of DNA—the individual spit on the gummed flap that had been licked. 
     Like David Ogilvy they had tasted blood!

Joan Manley’s Confession



     In 1970, Joan Manley—who started out as an assistant in the marketing department of Doubleday—was appointed publisher of Time-Life Books. This was dazzling achievement for a woman in those dreary, shamefully sexist days.

     Time-Life Books was ranked among the 10 largest book
     publishers in the world. In 1968, it sold more than 16 million
     books in 21 languages under its own imprints and millions of
     books through affiliates.
     The New York Times, July 15, 1970

Periodically Joan flew from New York to the Chicago fulfillment operation to get her hands on raw orders.
     "It gave me a big belt at the time," she said to me, "and it would now. Direct marketing distances you from your customer, so for many reasons it is desirable to read the raw mail, as well as letters—good and bad—from readers."
     Joan needed a regular transfusion of bloodblood transfusion!

  Robert Coates on “What Makes a Direct Marketer”
Robert Coates is a marketer out of Oregon who specializes in the financial services area. After years of knowing about each other, we finally had a joint client and attended a meeting in Chicago. Coates looked at me at one point and said, "Do you know how to tell a true direct marketer?"
     "How?"
     "Hand a person a list of names and addresses in hard copy. If he or she starts reading it—name by name—it's a clear indication of a fascination with people, their names, their addresses, the names of their streets."
     "I qualify," I said. "Reading a list is like eating peanuts. I can't stop."
     When I look at names on a list, I begin to imagine families, what they look like and how they might dress. If a business list, I find myself thinking, "How did these folks come up with this name for their company?"
     Having street addresses, I can conjure up images of where these people on the list might live. For example, a New York City residence would ipso facto be different from one in Council Bluffs, Iowa.
     I used to attend direct marketing conferences to hear lectures by database professionals. I remember one very high-powered consultant describing how databases work—how data are segmented and put in "buckets." The PowerPoint presentation actually showed buckets.
     Having grown up on the shore, to me buckets are things that hold bait, chum, clams or flopping just-caught fish.
     People do not belong in buckets. People belong in offices, homes, cars, riding lawn mowers, shooting baskets and wolfing down ribs and beer while they cheer for the home team.

What’s Missing in Digital Marketing.
Okay, I’m a Luddite.
     When I see an online lists of names—with addresses such as aol.com, gmail.com or yahoo.com—I have to work at remembering these electronic blips are, in fact, real people. They are every bit as human as the names of people and companies that make up an old-fashioned postal list—even though they are faceless, stateless and living in some cloud.

How This Old Luddite Hosts His Blog
I love being in touch with my readers. 
     If you write me asking to be put on the alert list for upcoming posts—or need answers to a question… or comment on the current blog—you will receive a personal response.
     Yeah, I could get my computer whiz, Jay, to set up an AI system that automatically responds to incoming correspondence and automatically ads the names my subscriber “database.”
     However, I type the name of every new reader into my database, because I want to know you and remember you.
     And I send you a personalized welcome with with my Guarantee of Satisfaction for the same reason.
     I do not trust automatic systems. 
     I remember receiving a "personalized" email with the following salutation: 
Dear Hatch Denny
     Whoever sent me that was sloppy. Untrustworthy. 

Takeaways to Consider
Just as I was putting this post to bed, here’s idiocy that showed up in my in-box:



• My 30th floor center city Philadelphia apartment is 43 miles from Chester County.

• Two doormen are always on duty and never allow strangers to wander around.

• Obviously the jackass who emailed this never knocked on my door. Not ever!

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Word count: 1173



At age 15, Denny Hatch—as a lowly apprentice—wrote his first news release for a Connecticut summer theater. To his astonishment it ran verbatim in The Middletown Press. He was instantly hooked on writing. After a two-year stint in the U.S. Army (1958-60), Denny had nine jobs in his first 12 years in business. He was fired from five of them and went on to save two businesses and start three others. One of his businesses—WHO’S MAILING WHAT! newsletter and archive service founded in 1984—revolutionized the science of how to measure the success of competitors’ direct mail. In the past 55 years he has been a book club director, magazine publisher, advertising copywriter/designer, editor, journalist and marketing consultant. He is the author of four published novels and seven books on business and marketing.

CONTACT

dennyhatch@yahoo.com

Note to Readers:  
May I send you an alert when each new blog is posted? If so, kindly give me the okay by sending your First Name, Last Name and e-mail to dennyhatch@yahoo.com. I guarantee your personal information will not be shared with anyone at any time for any reason. I look forward to being in touch!


IF YOU HAVE TROUBLE POSTING A COMMENT… Write Me!
Google owns Blogspot.com and this Comment Section. If you do not have a Google account, contact me directly and I will happily post your comment with a note that this is per your request. Thank you and do keep in touch.  dennyhatch@yahoo.com

Invitation to Marketers and Direct Marketers: 
Guest Blog Posts Are Welcome. 
If you have a marketing story to tell, case history, concept to propose or a memoir, give a shout. I’ll get right back to you. I am: dennyhatch@yahoo.com

You Are Invited to Join the Discussion!

Tuesday, August 13, 2019

#66 POLITICAL FUNDRAISING: Joe Biden Talks Dirty to My Wife

ISSUE #66 – Wednesday, August 14, 2019
Posted By Denny Hatch

POLITICAL FUNDRAISING: Joe Biden Talks Dirty to My Wife


 “Mommy, what’s BFD?”
“It’s ‘BIG FUCKING DEAL,’ darling.”


This is sloppy marketing.
     On March 23, 2010 at the White House Health Care Law signing ceremony, Joe Biden introduced Barack Obama to the attendees and then shouted in the president’s ear for the world to hear, “This is a big fucking deal.”
     BFD is now standard digital shorthand along with OMG, WTF and ICYMI.
     This is smartass old-boy locker room banter—har-dee-har-har—that has no place in serious public political discourse. The debate over healthcare—is is it a right or a privilege?... is "Medicare for All" viable?... can the Affordable Care Act be improved?—is vital for so many Americans.
     The idea that Biden allows anonymous campaign underlings—who call themselves “Team Joe”—believe it’s a good idea to commemorate this lapse in decorum is appalling.

Wrong Message to Us
Peggy and I are seniors.
     I turn 84 tomorrow. Peg is 10 years younger. Obamacare does not have a direct impact on our lives. We struggle with such questions as:
   Are we guaranteed no cutbacks in our Medicare?
   Will the economy tank?
   Will our savings outlast us as we have planned?
   Will we pay more for prunes?
   
Flouting Direct Marketing Rules
Today’s political campaigns are so desperate for money the smarty-pants political operatives—many of whom know nothing about testing or intimate messaging—slam out daily pleas to their entire universe screaming for cash without thinking through what they are saying to whom.

About Political Fundraising
For four years in the 1960s-70s I worked as a copywriter/account exec in the vineyards of the tiny Weintz Agency. The grand Pooh-Bah, mentor, strategist and copy chief was the Godfather of Political Fundraising, Walter Weintz.
     His account of inventing the science and art of generating votes and raising political money in the 1950s is fascinating. While his work was in the field of direct mail marketing, the rules and techniques Weintz discovered and perfected are directly applicable to e-marketing and the digital world.
     I’m pleased and honored to give you the legendary Walter Weintz:

How the National Republican Party's
Winning Fund-Raising Program Was Built
By Walter Weintz
From “The Solid Gold Mailbox” by Walter Weintz
(John Wiley & Sons, 1987) Reprinted with permission of Todd Weintz.

Once the basic principles and techniques of mail-order promotion are understood, they can be applied in the most unlikely places, and for unexpected products. Although my own initial mail-order experience happened to do with magazines and books, the same rules would have applied had I been working on a correspondence course in accounting, the mail-order sale of Christmas hams or Chesapeake crabmeat, securing leads for Ford cars, or, indeed, getting political candidates elected or fund raising for a political organization like the Republican National Committee.

As it happens, I discovered through personal experience how effectively mail-order procedures can be applied to politics. So, in this chapter I'll go through the story of the development of the National Republican Party's elective and fund raising program, which I helped develop and execute. I believe that the procedures we set up for the Republicans can be applied to any good mail-order product. 

The Beginnings
To the best of my knowledge, the Republicans started using direct mail on a scientific, mass basis back in 1950. At that time, Senator Robert Taft [R-Ohio] was running in a desperate race for re-election.

The big unions had announced that they had earmarked a war chest of several million dollars for a campaign in Ohio to defeat Taft, because he was coauthor of the Taft-Hartley Act, which gives the Federal Government the power to halt strikes that hurt the interests of the nation. At the time, the Taft-Hartley Act was a tremendous political issue. The big unions considered the Act an outright attempt to kill unionism in America, and Robert Taft their mortal enemy. They believed they had to get rid of him!

In those days, Reader's Digest had well-established conservative leanings, and the Digest had published articles on certain conservative issues by Senator Taft. Senator Taft was a friend of DeWitt Wallace [Digest founder and owner] and Al Cole [Digest business manager].

So the Digest volunteered my services to do a direct mail campaign to help get Senator Taft re-elected.

Senator Taft was convinced that he should take his stand on the Taft-Hartley Law, and, of course, we tried to talk him out of that, because we knew that blue-collar workers would be against him on the basis of the Taft-Hartley Act.

But Senator Taft argued that the big issue of his campaign was, obviously, the Taft-Hartley Act--and therefore he had to stand or fall on the merits of that Act. So we had to do a mailing, he said, built around the benefits of the Act for the ordinary working man.

Fortunately, in direct mail you are able to test almost anything, including political appeals. We mailed out, as I recall, several different letters, each one putting forward a different central idea on why the recipient of the letter should support Senator Taft.

Keying: an Essential Element
We needed some way to measure the effect of our different appeals, so in each mailing we included a "contribution card," keyed to the letter it went with. That is, we put an inconspicuous letter of the alphabet in a corner of each card: A. B, C, and so on-depending upon which letter the card originally went out with. In each case we said, "Send us some money to help re-elect Senator Taft." When contributions came in--each with a keyed card--we were able to count returns from each letter and tell which pulled the best.

We sent out about 20,000 copies of each letter. I was astounded when the letter (written by Senator Taft), which was built around a positive presentation of the Taft-Hartley Act, was far and away the most successful.

We subsequently mailed hundreds of thousands of Taft-Hartley letters into the blue-collar worker sections of the industrial cities of Ohio: Cincinnati, Cleveland, Akron, and so on. The blue-collar workers responded by voting overwhelmingly for Taft against the urging, advice, and $3 million campaign fund of their union leaders.

In addition, much to our surprise, we received a substantial number of small contributions, which helped us finance the direct mail campaign. Indeed, the campaign paid for itself!



Subsequently, in 1952, when Taft and Eisenhower were rivals for the Presidential nomination, I was a Taft partisan because of my previous experience working for Senator Taft. I was very disappointed when Eisenhower got the nomination.

Eisenhower-Nixon
A few days later, Mr. Cole called me into his office and said, "How would you like to take a leave of absence and run the direct mail campaign for Citizens for Eisenhower-Nixon?"

"I wouldn't like that," I said.

"Good, I knew you would," Mr. Cole answered. "I told them you'd be down there this afternoon."

So in 1952 1 went to work for the Citizens for Eisenhower-Nixon, and I might add, I quickly became an enthusiastic supporter of General Eisenhower.

We decided that the experience we had had on the Taft campaign gave us a beautiful model for doing direct mail on behalf of Eisenhower and Nixon.


At the start of Eisenhower's campaign, he didn't have a clear-cut political theme, and he was burdened with all kinds of conflicting advice from well-meaning, self-appointed experts.

The politicians who surrounded him implored him not to say anything, it being their philosophy that campaigns are won by not taking a stand on anything. They suggested his theme should simply be, "It's time for a change."

Others were incensed over the "deep freeze" and "fur coat" scandals, which had plagued the Truman Administration. In the latter days of President Truman's Administration, various accusations about political graft involving some prominent Democrats had surfaced, and our Republican political advisors suggested that a simple, dignified phrase like, "Throw the rascals out" would make a good mail-order theme that would hit home.

And, of course, the war in Korea was much on everybody's mind.

Al Cole asked me to write 10 letters, each based on a different campaign appeal.

The Tests
With these letters, we reasoned, we could test different campaign appeals and find out exactly what issues really did arouse the voters. Were they really upset over corruption in Washington? Was it inflation and the high cost of living that troubled them most, or government regulation (a favorite Republican issue, even in those days)? We would ask for money, just as we had in the Taft campaign, to check the relative effectiveness of various appeals. We would then mail millions of letters, using the most successful appeals, and the mailing would be at least partially self-financing, because it would pull for contributions.

The letters, besides making money, would reach millions of people, with strong arguments in favor of Eisenhower and Nixon. Most importantly, we would then have hundreds of thousands of small contributors who had "bet on a horse"--given small sums ranging from a dollar up to $25 or so to support Eisenhower's campaign.

We reasoned that anyone who contributed money for a candidate would be much more likely to go out and vote for that candidate on Election Day.

We sent out an initial test of 10,000 of each of 10 letters, and in each case we said, "If you would like to see Eisenhower elected President, please send back the enclosed contribution card, together with your contribution and your name and address."

The cards were keyed, so we were able to count results.

The letter--which concentrated on foreign policy--would seem, on the face of it, to relate less directly to the voters' strong personal interests and problems than did some of the other letters. They concentrated on high taxes, inflation, big government interfering with the little voter's rights and privileges, and government waste dipping into the voter's pocketbook. In reviewing the 10 letters we put out, I did not particularly expect [the foreign policy] letter to be the big winner. But that's what testing is all about; it replaces guesses with facts!

The Surprising Winner


Nine out of the 10 letters pulled almost exactly the same. The tenth letter, "Coddling the Russians," which talked about Korea, and the seemingly never-ending war in which America had gotten embroiled, pulled about 2-1/2 times as well as any of the other letters.

It was a striking, clear-cut proof that the war in Korea outweighed every other political appeal Eisenhower could make.

The results were so conclusive that we put together a report, and Walter Williams, Chairman of the Citizens for Eisenhower-Nixon Committee, got on a plane and hurried out west, where Eisenhower was campaigning, and showed him these results. A few days later, Eisenhower made his famous "I shall go to Korea" speech, and suddenly his campaign was off and running.

I can't say that it was the direct mail results alone which convinced Eisenhower that Korea was the important issue, but Walter Williams told me that it was decisive in helping Eisenhower make up his mind. Certainly, the tests proved overwhelmingly that the war in Korea was the most important issue in the public's mind.

The Roll-Out
Sidney Weinberg was the financial manager of the Citizens for the Eisenhower-Nixon campaign, and when I told him that a big mailing would pull the same percentage of returns as did the original test, he was full of suspicion. Sidney was a Vice President and partner of Goldman, Sachs, and he was accustomed to financial projections that were based on 100-page business analyses--not a skimpy page of mailing test results. The whole thing smelled like Madison Avenue flim-flam to Sidney. Very reluctantly, he gave his permission to roll out with a huge, major mailing, but Sidney was prepared for the worst.

Fortunately, the big mailing pulled exactly as the test mailing projected that it would.

We mailed out some 10 million letters based on the Korean issue. And the interesting thing is that, in addition to getting 10 million messages out to voters, we were able to get some 300,000 voters to send us a contribution. These were 300,000 votes that we could pretty well count on.

The contributions were small. They averaged only $5.00 or so. But the $1.5 million that they represented easily paid the cost of our 10 million campaign. Thus, we had harnessed a powerful self-financing force.

And equally important, we had that most precious of all mail order and political properties--a list of Eisenhower supporters--people who had voted for Eisenhower with their pocketbooks. We had their names and addresses. We could go back to them again for future contributions, for campaign activities, for vote-getting and voting.

As it turned out, the mailing not only paid for itself, but also brought in thousands of dollars over its actual cost. Sidney Weinberg then declared that this raised a moral issue. We had asked for contributions to help elect Eisenhower. Now he was elected, and we had money left over. Therefore we were obligated to refund the excess contributions.

For some time after the election, therefore, Sidney's staff was busy figuring out a pro rata refund on every contribution, and making out thousands of refund checks which were sent to our innumerable small contributors. Everyone got a refund, even if it was a check for only 69¢!

The 1956 and 1960 Campaigns
This isn't the end of the story, however. Years later, when I came back to working for the Republican Party after a considerable absence, the Party was still getting contributions from those original 1952 contributors! And this was a "secret weapon" which the Republicans had in subsequent elections that the Democrats didn't possess.

The names of our 1952 Citizens for Eisenhower-Nixon contributors were put in a "bank" for future use. In 1956, when Eisenhower and Nixon ran again, we wrote to these same people and asked for additional contributions, and they gave generously.

The contributions were small, and the contributors were certainly not "fat cats." On the contrary, they reminded me of the slogan that is posted in the children's zoo in the Bronx, over the guinea pig colony, "We are small, but we are many."

Together, these small contributors represented a very important part of the Republican fund raising in 1956.


Spencer Olin

Again in 1960, Spencer Olin, who was then the Finance Chairman of the Republican Party, turned to direct mail to solve his Party's financial problems. In the spring of 1960, the Party was almost literally broke.

Mr. Olin asked me to  “put out a letter and raise a million dollars." We mailed approximately one million letters, and we cleared the million dollars that Mr. Olin asked for. We were able to do this because we had amassed a list of dependable contributors to whom we could turn in our hour of need, and because we were able to make an emotional appeal on a very personal basis, which offered the reader an opportunity to do something nice and be somebody important!

Unfortunately, Spence Olin's tenure as Chairman of the Republican National Committee presently came to an end, and he was replaced by a new "expert."

This man came from the old "fat cat" school of fundraisers. His first act on assuming office was to call his staff together and deliver a challenge.

"The only way to raise money is eyeball-to-eyeball solicitations of large sums from big donors," he announced. "Direct mail is wasteful and expensive and only brings in piddling little contributions that are not worth fooling with. If anybody here thinks I'm wrong and he's right, speak up. No takers? OK—from here on, no more direct mail."

And that, for the time being, terminated my active relationship as a fund-raiser with the Republican Party.

Takeaway Points to Consider by Walter Weintz
* We proved that political appeals can be tested—just like sales appeals for any other product. And we substituted test results for opinions, in the cases of both Senator Taft and General Eisenhower.

* We discovered that we could make such tests, and subsequent rollout mailings, self-financing.

* We had found a way (in the guise of fund-raising) to influence millions of voters, through self-financing mail order appeals.

* We had evolved a method of getting many voters to "bet on a horse"--that is, contribute money to a candidate--which made it much more likely that those voters would indeed get out and vote for the candidate of their choice as well as persuade friends and family to get out and vote.

* And, finally, we'd established a way to secure the names of hundreds of thousands of supporters--people who could be counted upon to contribute to our cause in response to future appeals. We had that most precious of all mail order possessions: a list of customers!

* The final Eisenhower letter, which I wrote, put all these elements together, and produced the desired effect: $1 million in contributions. With established mail order basics at our service, raising that $1 million was a simple matter. It took only one letter!


Walter Weintz spent World War II as a junior officer aboard a minesweeper in the Pacific. He began his career as a copywriter, working on accounts like Book-of-the-Month Club, Charles Atlas, and Doubleday. As Circulation Director for Reader's Digest, he created some of the most successful promotions ever mailed, including one which mailed over a hundred million pennies as an attention getter. He formed the Weintz Corporation in 1958 and served clients like the Boys' Clubs of America, Rodale Press, Harvard Business Review, Time Inc., the Republican National Committee, American Express, the New York Times Magazine Division, World Book Encyclopedia, Prudential Insurance, and many others. Walter Weintz was active in both local and national direct-mail industry affairs over almost half a century. He died in 1996 at the age of 81.

Web Sites Related to Today’s Edition
Walter Weintz Obituary, New York Times, December 25, 1996

 The Solid Gold Mailbox: How to Create Winning Mail-Order Campaigns By the Man Who’s Done It All,” by Walter H. Weintz


P.S. Read Denny Hatch’s Political Thriller, THE FINGERED CITY: How the Mafia Marketed a Candidate To Become Mayor of New York City. Kindle, $2.99.


###
Word count: 2991




At age 15, Denny Hatch—as a lowly apprentice—wrote his first news release for a Connecticut summer theater. To his astonishment it ran verbatim in The Middletown Press. He was instantly hooked on writing. After a two-year stint in the U.S. Army (1958-60), Denny had nine jobs in his first 12 years in business. He was fired from five of them and went on to save two businesses and start three others. One of his businesses—WHO’S MAILING WHAT! newsletter and archive service founded in 1984—revolutionized the science of how to measure the success of competitors’ direct mail. In the past 55 years he has been a book club director, magazine publisher, advertising copywriter/designer, editor, journalist and marketing consultant. He is the author of four published novels and seven books on business and marketing.

CONTACT

dennyhatch@yahoo.com

Note to Readers:  
May I send you an alert when each new blog is posted? If so, kindly give me the okay by sending your First Name, Last Name and e-mail to dennyhatch@yahoo.com. I guarantee your personal information will not be shared with anyone at any time for any reason. I look forward to being in touch!


IF YOU HAVE TROUBLE POSTING A COMMENT… Write Me!
Google owns Blogspot.com and this Comment Section. If you do not have a Google account, contact me directly and I will happily post your comment with a note that this is per your request. Thank you and do keep in touch.  dennyhatch@yahoo.com

Invitation to Marketers and Direct Marketers: 
Guest Blog Posts Are Welcome. 
If you have a marketing story to tell, case history, concept to propose or a memoir, give a shout. I’ll get right back to you. I am: dennyhatch@yahoo.com

You Are Invited to Join the Discussion!