Why Direct Marketing
is Misunderstood Originally written to help general
advertising agency people understand the distinctives
of "Direct", this article formed the basis for
the original work on the definition of Direct marketing.
A Conceptual
Definition of Direct Marketing Direct marketing has
come to mean more than direct/mail mail order by using
other media and by incorporating such concepts as "database
marketing" (7) and "relational marketing"
(12). However, the addition of these concepts still does
not clarify what is or is not direct marketing.
by John Miglautsch & Connie Bauer
What to do with
the 1-1-1's?
Inherent in the basics of RFM are its fundamental limitations.
RFM alone, by definition, cannot move beyond this point.
Segmentation of 1-1-1 requires the creation of additional
variables.
Spinning
Straw Into Gold From Catalogue & E-Business,
this short summary article formed the basis for John's
ground-breaking book by the same name.
Why Marketing
Databases are Not Working* When doing market research or selecting names for
mailing, marketing often has difficulty obtaining and
analyzing mainframe based, historical customer and order
data. Since the order entry and sales systems that generate
the data, are crucially important to servicing customers,
they generally have been in place for a number of years.
The data searching and extraction capabilities of any
older systems pale in comparison to state-of-the-art technology.
Thus the aging of the corporate information systems continues
to impose frustrating obstacles to effective marketing
research. Although that may be the way it is, it need
not remain that way.
What Are Your Customers Really Worth?* Direct marketing is built almost universally on the
principle of getting and (especially) keeping customers.
Practitioners therefore tend to be excessively analytical,
keeping close track of customers gained and lost in each
period, while trying to make decisions based on long term
customer worth.
Making the Business-to-Business
Marketing Database Work
Network or Notebook? Is it possible to do something with
your PC system? Many find it hard to believe that their
PC system can meet their needs. Miglautsch Marketing has
a one million customer database running with 70 million
transactions on a 486. And the 486 is not the optimal
platform. Much better equipment is available today.
Getting the Most
out of Your PC Analysis* You know the data is in there... but how do you get
it out? Data is a by-product of the direct marketing process.
If you mail tens of millions of catalogs, you should have
more than a few customers and orders. However, gaining
marketing advantage with that data can be more than a
little challenging.
Integrated Marketing The text of this article discusses the issues related
to integrating traditional marketing (i.e., field sales
and lead generation) with telemarketing.
Software
Considerations: Use What You Have or Start All Over? *Originally published in DM NewsMagazine
**Originally published in Direct Marketing Magazine
***Originally published in the Journal of Direct Marketing ****Originally published in Catalog Systems Management
Network News +Originally published in Catalog Business Magazine
About
John Miglautsch:
John Miglautsch founded and currently serves as Chairman
of Miglautsch Marketing, Inc. in Hartland, Wisconsin. Miglautsch
Marketing provides database marketing systems and consultation
to direct marketing clients across North America and the EU.
John speaks and writes on database marketing nationally and
internationally. He is Vice President of the Wisconsin
Direct Marketing Association Board of Directors, Executive
Director of the International Society
for Strategic Marketing. John's wife's name is Susan.
He has three precious daughters and a wonderful son.
1990-Present Founder Miglautsch Marketing, Inc. aiding companies
in the execution of direct marketing and database marketing
strategies. International speaker and author on database marketing.
Implementing revolutionary integration of modeling software
that is changing the nature of database marketing.
1987-1990 General Manager, R.L.Meyer Direct Marketing. Founded
independent direct marketing division. Aided general advertising
and direct marketing clients in integrating direct marketing
principles and techniques into their marketing mix. Developed
computer aided catalog training for major catalog companies.
1985-1987 Vice President of Marketing, Sales Guides, Inc.
Management of all direct marketing operations including design
and telemarketing. Developed decision support models for catalog
management. Built catalog division (founded in 1984) to 53
employees and mailings of almost 6 million catalogs in 1987.
1981-1985 Consultant, Hunter Business Direct, Inc. (Direct
Marketing Consulting Firm), Milwaukee, WI. Proposal, research
and management of long-term client projects. Designed solutions
for specific projects related to direct marketing techniques.
1979-1981 Inside Sales, Durable Controls, Inc. Developed all
corporate marketing materials, direct mail and trade show
programs. Designed computer business and telemarketing system.
1978-1979 Sales Rep, Wisconsin Graphics. Substantially expanded
customers and geography.
1974-1976 Sales Representative, Ad Vantage Ad, Inc. Performance
equaled and exceeded veteran salesmen.John Miglautsch's successful
consulting projects have included major involvement in five
business-to-business and three consumer catalog start-ups.
In 1985 John moved to Vice President of Marketing at Sales
Guides, Inc.
His background in the real world of day to day catalog
management, make his solutions practical as well as technically
sound. Miglautsch Marketing is one of the premier developers
of marketing databases. Custom systems are constructed using
off the shelf PC Windows tools running client/server on
LAN's.
They have built marketing databases for Moore Business Systems,
Hudson's Bay, Cabela's, Hubert, American Collegiate Marketing,
The Mutual Group, In-Fisherman, North American Outdoor Group,
Baseball Express, Highlander Catalog, Xena/Hercules, Sax's
5th Avenue, Adobe Systems, eTrade, PetEdge, Daniel Smith
and many others.
John's writing ranges from analytical computer models to
direct mail copy. He just published his first book, Spinning
Straw Into Gold, A Guide to the Magic of Turning Data Into
Money. He contributed the database and modeling chapters
to the world's best selling direct marketing book, Bob Stone's
Successful Direct Marketing Methods, July 1999.
Recent articles include:
Confessions of a Spammer, WDMA
Newsletter,
Are You Really Doing Direct Marketing? Target Marketing,
October 2006,
Best Practices, Target Marketing, September 2003,
Meet the Masters: John Miglautsch, Inside Direct Mail,
August 2003,
What to do with the 1-1-1s, Journal of Database Marketing,
July 2002,
Spinning Straw Into Gold, Catalog & e-Business,
January-February 2001,
Thoughts on RFM Scoring, Journal of Database Marketing,
January 2001,
Assessing Modeling Performance, Journal of Database
Marketing, August, 2000,
A Coming Together of Catalogues and e-businesses, Catalog
& e-Business, December 2000,
Finding Needs and Filling Them, DMA Electronic Media
& TV Marketing Council, Summer 1998, DMA Marketing Technology
& Internet Council, Fall 1998,
Drowning in Data, Inside Decisions, Spring 1997,
Use Match Processing to Build Databases, DM News, December
8, 1997,
BTB Modeling: A Difficult Task, DM News, September
29, 1997,
Using Consumer Data for B-B Marketing, DM News, June
9, 1997,
Five Common DB Marketing Misconceptions, DM News, March
17, 1997,
When Marketing Defines Database Needs, DM News, January
13, 1997,
Drowning in Data, Inside Decisions, Spring 1997,
Segmentation and Modeling vs. RFM, How to Assess the Comparison,
DM News, December 9, 1996,
Look Behind Results to Why They Happened, DM News,
October 14, 1996, Converting to 2000: A $6 Billion Effort,
DM News, August 12, 1996,
Small-Biz Challenge: Justifying Costs, DM News, July
15, 1996,
Cost-Justifying a Marketing Database, DM News, April
22, 1996,
How to Build a Better Marketing Database, DM News,
February 12, 1996, A Speedy Database Means Keeping It Simple, Stupid!,
DM News, December 11, 1995,
Inside RFM Segmentation Modeling, DM News, October
16, 1995,
What is a Marketing Model? DM News, September 25, 1995;
Would Database Marketing by Any Other Name Sound as Sweet?
DM News August 21, 1995;
A Case Study of Horizons Unlimited, Direct Marketing
News, August 1995,
How to Get on the World Wide Web in One Day DM News
August 7, 1995;
The Death of the Traditional Lifetime Value Model DM
News June 19, 1995;
Understanding What's ‘Direct' in Database Marketing
DM News, April 17, 1995;
Drowning in Data? Marketing Tools, March/April 1995,
A Junk Mailer's Confession: Anyone Can Do It, DM News,
February 20, 1995,
Cross-Selling Helps Business Database Marketing, DM
News, Two-part Series, December 5, 1994 and January 23,
1995,
There's Such a Thing as Too Much Data, DM News, August
15, 1994,
Getting the Most From PC Analysis, DM News, December
1993,
Architectures for Marketing Computer Systems, Journal
of Direct Marketing, Spring 1993,
Why Marketing Databases Are Not Working, DM News, October
1992;
The Great Database Myth is Dead, Direct Marketing,
June 1992;
A Conceptual Definition of Direct Marketing, Journal
of Direct Marketing, Spring 1992;
A Weekly Catalog-Sales Projection Model, DM News, December
1991;
The FAX: Good for DMers and the Environment, DM News,
August 1991;
What Are Your Customers Really Worth?, DM News, June
1991;
A Customer-Acquisition Break-Even Model, Modeling Basic
Break-Even Analysis, Catalog Business, August 1990;
Why I love Catalogs so Much, DM News, February 1990;
Why Direct Marketing is Misunderstood, Direct, March
1989;
Mature Business Catalogs Turn Graphic, DM News, November
1988;
Building a Financial Model, Catalog Business, February,
1988; and
Opportunities Unlimited, A study in the economics of the
catalog mail order business, Direct Marketing,February,1988.
John developed the first Catalog Age sponsored Catalog Seminar
presented in New York, Chicago, San Francisco and Boston
in 1988. John participated as a judge in the 1988 American
Catalog Contest. John was one of three finalists for Young
Direct Marketer of the Year, 1989. In 1991 he became a Senior
Fellow of the North American Society for Strategic Marketing.
Recent Speaking Experience Includes:
2007 - DMA - Cleveland
2006 - DMA - Dallas, Wisconsin
2004 - Database University
2003 - WDMA, WCTC
2002 - WDMA, Marquette
University
2001 - Marquette University, Caroll College
2000 - Merit Direct - Business-to-Business, Stamford, CT.
1999 - ADMS- Database and Modeling Seminar - Singapore1998
- WWMG Mailers Conference-UK, European Catalog Conference
- Catalog Simulation
1997 - Kansas City DMA - Keynote Database Seminar, CSMN
- Catalog Simulation, WWMG Mailers Conference-UK, United
States Postal Service Tactical Marketing Group Training
Conference
1996 - DMI B-B Conference, Southern California Catalog Council,
Tennessee Direct Marketing Association
1995 - Keynote Speaker-Canadian National Database Marketing
Conference, WDMC Basic Course, CDMA National Convention,
DMI B-B Conference
1994 - Chairman,Target Marketing Database Conference, Telemarketing
Conference, DMA NCC, DMIBB
1993 - DMA NCC, DMI B-B, WDMC DM Day, NCDM, University of
Missouri-KC PDM
1992 - CDMA National Catalog Conference, CDMA National Convention,
CDMA Technology Conference, DMA NCC & Spring Conference,
DMI Business Catalog Conference, KCDMA DM Day, National
Center for Database Marketing Conference, DMA Business-to-Business
Conference, National Direct Marketing to Business Conference,
Univ. Missouri-KC PDM Certification
1991 - DMA National Catalog Conference, DMI Business Catalog
Conference, WDMC DM Day, National Center for Database Marketing
Conference, DMA Business-to-Business Conference, National
Direct Marketing to Business Conference, Univ. Missouri-KC
PDM Certification
1990 - DMA National Catalog Conference, WDMC DM Day, National
Database Conference, Direct Media Business Catalog Conference,
National Direct Marketing to Business and Industry Conference
Since 1990, active clients include:
Adobe Systems*
Allen Brothers*
Allergy Supply Products*
American Collegiate Marketing
American Fidelity Insurance
American Ostemy Supply*
American Science & Surplus*
Banta (The Printer)
Baseball Express*
Beaver Prints*
Blue Cross Blue Shield - Maryland
Bullock & Jones*
Busch Entertainment Corp.
Cabela's*
Carlton Industries*
Chicago Cutlery*
Circuit City
Colwell Systems, Inc.*
Current*
Custom Direct Inc.
Daniel Smith*
Deluxe Check Printers*
Direct Media
Direct Safety*
EDS
Eastbay*
EyeWire*
Fairfield Communities
Faultless Starch*
Frank Eastern Co.*
Garron Products*
Gray Supply*
Great Lakes Products*
g.Neil*
Grey Advertising
Highlander*
Hopkins Medical Products*
Hubert Distributing*
Hudson's Bay Company
I/D/E/A, Inc.*
Illinois State University
Image Club Graphics*
Industrial Safety*
In-Fisherman*
Jensen Tool*
Kaiser-Permanente
Lands' End*
Leanin' Tree*
McCann-Erickson
Medical Arts Press*
Microsoft
Mid America Design*
Mid American Energy
Moore Business Products*
National Business Furniture*
New Pig Corporation*
North American Outdoor Group
Oakley Eyewear*
Pagel Safety*
Panasonic
Paper Direct*
Petco
PetEdge*
Preferred Harvest*
Primedia
PrimeNet
Rio Grande*
Runzheimer International
Sales Guides, Inc.*
Sax's 5th Avenue*
Science Research Associates
Sprint Integrated Marketing
The Mutual Group (US)
The Boelter Company
United States Plastic*
United States Postal Service
University of Missouri-Kansas City
Unz & Company, Inc.*
Upbeat*
Visual Services
Wyndham Hill Records*
Xena/Hercules*
1991 Senior Fellow, North American Society for Strategic
Marketing
1990 PDM Valedictorian, University of Missouri- Kansas
1985 Master of Arts, University of Wisconsin-Madison
1976 Bachelor of Arts with Distinction UW-Madison
Senior Fellow, The North American Society for Strategic
Marketing
John and/or Miglautsch Marketing have been cited in the
following areas: Direct, December 2004, Fifth International
Conference on Operations and Quantitative Management October
25-27, 2004, September 2003, Catalog Age, May 1,
2003,The Journal of Advertising, Summer 2002, The
Milwaukee Journal, March 2002, Journal of Personal
Selling & Sales Management, 3/22/02, Circulation,
April 2000, CENTER FOR RESEARCH ON INFORMATION TECHNOLOGY
AND ORGANIZATIONS, March 1999, Target Marketing,
Internet como mídia de marketing direto no Brasil,
1998, There is No Need for More than OneDefinition of Direct
Marketing, 1995, December 1995, Paradox 5.0, Infoworld,
July 18, 1994, Database Limitations, Target Marketing,
August, 1994,Internet Access, Network World, December,
1993, No Substitute for a Brain, DBMS, April, 1993,
Interbase:Serving Two Worlds, Computerworld, March
11, 1993; Borland's PAL Shift Proves Manageable, Computerworld,
February 15, 1993; Yankee Ingenuity, Corporate Report
Wisconsin, February, 1993; Going For All The Marbles,
Infoworld, January 25, 1993; Off-the-shelf Software
has Advantages, Database Marketing Newsletter, January,
1993; Why Databases Are Not Working; A Reply to Miglautsch
& Sargent, DM News, January 11, 1993; Libey
on Customers, pp. 168, 1993; Moore Business Products
Expects to Boost Sales With Data System, DM News,
September 28, 1992; Cognos Eases SQL Query Process Across
RDBMS's, Computerworld, September 28, 1992; Interbase,
Driver Provide Link to Paradox 4.0, PC Week, September
14, 1992; Why DMers Think The Fax is Indispensable, DM
News, September 7, 1992; Most B-to-B Firms Don't know
Cost or Value of Customers: DMI Survey, DM News,
July 27, 1992; PC's Put Database Marketers In Control, Target
Marketing, March, 1992; Data Capture, Target Marketing,
February, 1992; The Libey Letter, January 16, 1992,
December 16, 1991, August 15, 1991; Getting To The Data,
Direct, January, 1992; In Search of the Perfect Software,
Direct, August, 1991.
