ITP Notes Aug10

8/8/2019 ITP Notes Aug10

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• Don’t Hold the Presses

• Not All Footprints

are Carbon

• Changing Times

• Is Frugal Here Forever?

• Dealing With Perception

• Adjusting to Limited

Delivery

• Motion or Progress?

• Direct Mail and

Fund-Raising

• No Longer Bamboozled

and more...

August 2010 Volume 8 Issue 5

I N N O V A T I V E T E C H N O L O G I E S I N P R I N T

An InformationDistribution Company

In This Issue:

USEFUL INFORMATION

• This edition of ITP Notes was produced on ITP’s Indigo Digital Press.

“WHAT? ME WORRY?”

ALL PRINT IS NOT ALIKE

The great majority of the population believes that so-called social media lacks safeguards

against personal privacy but, ironically, seems to accept this scenario as a fact of life. The fed-

eral government has taken steps against Twitter and Facebook on this issue. Recent researchby the Ponemon Institute found that more than eighty percent of consumers fail to take steps

to secure personal information online. Specifically, the survey found that:

• about forty percent of respondents share their respective

home addresses on social media applications.

• about two-thirds of respondents fail to use privacy

or high security settings on social media sites.

• victims of security violations and non-victims

exhibit similar behavior. The majority of those

who have experienced identity theft have taken

no subsequent steps to secure personal informa-

tion online. • almost sixty percent of respondents admit they are not

confident or are unsure that their list of “social media

friends” only include people they know and trust.

Recent literature about media often makes the unfortunate assumption that all print is alike.

In fact, it’s not that simple. In some contexts, print has a permanence and tactile quality that

can’t be duplicated by other communication vehicles. A recent study by Eric Mower and

Associates found that “most college students rank themselves as environmentally-conscious

and two-thirds believe going paperless helps the environment, but they draw the line at elec-tronic copies for key documents – especially when it comes to college diplomas.” Fewer

than thirty percent of the respondents would give up printed

books, magazines, newspapers, official documents, and photos.

The report added that “nearly seventy percent said the idea of

receiving an electronic copy of their diplomas either bothered

them or they considered it so terrible that they hated it.

Only four percent said they would ‘love’ the idea of a paperless

college diploma at graduation.”



I T P N O T E S

DON’T HOLD THE PRESSES

Ink-on-paper is far from dead. In fact, one segment of print advertising and promotion is showing double-digit growth ––twelve percent –– so far in 2010, according to Kantar Media:preprint advertising, commonly known as free-standing

inserts. Primary reasons for the growth: • Increased use and redemption of coupons during difficult

economic times. • Many retailers’ more aggressive promotion of store

brands (private label products). • The ability of advertisers to measure their return on

investment. In some cases, this goes beyond calculation of the overall cost-benefit relationship and may includedresponse by consumer, day & week, advertising vehicle,price variation studies, and other variables.

NOT ALL FOOTPRINTS ARE CARBON

Not everyone is aware that most photocopiers manufacturedafter 2002 store images of documents on their hard drives.Even the infrequent use of a copier to reproduce a personalor business document with sensitive information makes that

information vulnerableto theft of the hard driveupon expiration of a lease or “decommission-ing” of the equipment,

according to research by CBS News. The FederalTrade Commissions isurging photocopier man-ufacturers to address theissue. Xerox Corporation

already offers customers the option of removing hard drivesas well as a no-charge image-overwrite option that destroysdata stored on the hard drives of many of its models.

DEALING WITH PERCEPTION

Let’s face it: many advertising agencies are not highly regard-ed by the public in terms of their veracity. In fact, a recent Gal-lup/USA TODAY poll ranked advertising practitioners thirdfrom last in terms of honesty and ethics, ahead of lobbyistsand car salesmen, but below business executives, members of Congress, and state officeholders. In an attempt to change thispublic perception, an Institute of Advertising Ethics has beenlaunched by the University of Missouri School of Journalismand the American Advertising Foundation. Research already conducted by the University of Missouri found that honest advertising is the single greatest factor in establishing corpo-

rate reputation, ranking ahead of sustainability and corporatesocial-responsibility programs. About a third of consumersdon’t believe advertising is ethical.

CHANGING TIMES

Post World War II research into business-to-business buyer-seller behavior almost unanimously found that perceived sup-plier neglect was a leading cause of new supplierselection. A recent study by the international consulting firmMcKinsey & Co. suggests that the recession has fundamentally changed buyer-seller behavior. Feedback from about twelve-hundred corporate respondents revealed these “turn-offs,”destructive selling behaviors by sales representatives:

Percent

• Excessive sales rep contact .................................... 30%

• Lack of knowledge about reps’ own and/or

competitors’ products/services .............................. 20% • Lack of industry knowledge about usefulness

of product/service to customer ............................... 9%

• Sales rep style is too aggressive ............................. 8%

• Customer neglect after the sale ............................. 8%

• Other .......................................................................... 25%

IS FRUGAL HERE FOREVER?

A key question as we emerge from the recession: are someof Americans’ revised buying habits permanent or will webounce back to some of our more traditional buying trends.It’s a somewhat complicated question. In the case of privatelabel/store brand foods and other consumer products, it’sapparent that the transformation during the past decade hasinvolved more than price; a substantial portion of the publicbelieves that the differences between branded and unbrandedproducts aren’t discernible, “green” and organic issues area consideration, and many factors other thanprice enter the purchase decision.

On the other hand, research by Booz& Company suggests that a “new fru-

gality” may be upon us. Its survey of several thousand consumers indicatethat, in the next twelve months, only nine percent of consumersintend to spend at pre-recession levels on household productsand eighteen percent plan to spend at a pre-recession level onapparel. Sixty-four percent of surveyed consumers say they’llshop at stores with lower prices even if they are less convenient.Perhaps most important, about eighty percent of buyers say they will conduct more and better research before making a pur-chase decision. This certainly has implications for the same indi- viduals gathering information for a business buying decision.



Quic

Notes


THIS EXPLAINS IT ALL

“No one party can fool all of the people all of the timThat’s why we have two parties.”

– Bob Hop

DISAPPEARING NUMBERS

White page telephone directories are about tbecome a distant memory. They are available brequest only in Ohio, Florida, and Oklahoma –– aneven in those states, only two percent of phone userrequest copies.

REALLY CONNECTING?

“The single biggest problem in communication is thillusion that it has taken place.”

– George Bernard Sha

CRM CONNECTION

The CRM (Customer Relationship Management) cocept has been with us for several years. While it haits proponents and detractors, several trends in itusage have emerged. According to Silverpop, usage more prevalent among business-to-business markeers than in business-to-consumer situations by a magin of 69% to 43%.

SWEET DREAMS?

“Vision without execution is hallucination.” – Thomas Ediso

E-MAIL CREEP

American business has a love-hate relationship wite-mail. On the one hand, it’s fast, convenient, and reatively inexpensive. On the other hand, the averagnumber of corporate e-mails sent and received by thaverage employee continues to grow:

Year

2010 (YTD) –– 199 e-mails

2009 –– 177 e-mails2008 –– 156 e-mails

2007 –– 142 e-mails

WHEN YOU COME TO A FORK IN THE ROAD, TAKE IT

“Nothing clears the mind like no alternative.”

– Nicole Harris, publisher, National Glass Associatio

ADJUSTING TO LIMITED DELIVERY

Despite opposition from many quarters, including mailers,unions, and some members of Congress, five-day-a-week U.S. Post-al Service delivery appears inevitable. To a great extent, this willprobably involve shifting many costs from the Postal Service to

mailers. Advertising and print schedules will need to be accelerat-ed. This may cause some printing plants to revise productionschedules, especially in the case of time-sensitive printed materials.Coordination between print and other media will be more difficult in the case of integrated promotion programs.

QUICK NOTESQUICK NOTES

MOTION OR PROGRESS?

There are reports of substantial increases in some areas of direct mail during the first calendar quarter of 2010 compared to thesame period of 2009, according to research and tracking serviceMintel Comperemedia. Credit-card-related direct mail jumped 36%

and insurance mail increased 8%. Insurance-related mailings rep-resent the greatest volume of Standard Mail for the quarter. Howev-er, that is likely to change as America continues to debate the struc-ture, details, timing, and regulations involving health care.

DIRECT MAIL AND FUND-RAISING

Direct mail was the leading channel for fund-raising at not-for-profit organizations in 2009, according to Target Analytics, accounting for68% of revenue. Online contributed 9% and telemarketing contributed3% to contributions. The research firm also reported that 87% of all

new donors were acquired through direct mail, compared to only 12%acquired online. Giving USA Foundation reported that total donationsto charitable organizations fell 0.4% during the 2009 recession.

OVERCOMING THE PRIVATE LABEL OBSTACLE

It appears that public acceptance of private label (store brand)products is almost complete, according to extensive research by Ipsos Marketing. The data suggest that acceptance goes well beyondprice. As we’ve written extensively in this newsletter during the past several years, private labeling and packaging may provide opportu-nities for many commercial print companies. The figures generated

by Ipsos Marketing: • Consumers believe store brands perform at least as well as

national brands in providing good value for the money (89%). • Store brands meet my needs (87%). • Private label products are convenient (87%). • Store brands are good for the family (86%). • Private label products are environmentally-friendly (82%). • Private label food products taste good (81%). • I trust store brands (80%). • Private label products are high-quality (73%). • Packaging is appealing (65%).



2 0 0 S . C h e s t n u t S t r e e t

E l i z a b e t h t o w n , P A 1 7 0 2 2

F I R S T C L A S S M A I L

U . S . P O S T A G E

P A I D

E l i z a b e t h t o w n , P A

P e r m i t N o . 6 1

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company in Elizabethtown, PA.

This newsletter is intended to give

our peers brief details of industry

happenings. If you have any

questions regarding our ser vices,

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s e f u l I n f o r m a t i o n a n d m o r e ! S e e i n s i d e …

NO LONGER BAMBOOZLED

Tree-free paper may be making a comeback. Attempts to sell paper from easily renewablematerials were made a decade ago. Crane & Co. offered fine paper that was fifty percent cotton- fifty percent kenaf and fifty percent cotton - fifty percent industrial hemp. Bamboo paper wasintroduced by a large mill. Ironically, one of the reasons it was soon discontinued involvedclaims by some environmentalists that the harvesting of bamboo was destroying the habitat of pandas. The bamboo was harvested hundreds of miles from the nearest panda. The current

sheet, ten percent bambooand ninety percent cotton, ismanufactured by LegionPaper. Perhaps tree-freepaper will finally becomemore widely adopted.

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ITP Notes Aug10

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