ITP Notes Aug10

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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

August 2010 Volume 8 Issue 5

In This Issue:
USEFUL INFORMATION “WHAT? ME WORRY?”
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 research
by 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.
• Don’t Hold the Presses • about two-thirds of respondents fail to use privacy
or high security settings on social media sites.
• Not All Footprints
• victims of security violations and non-victims
are Carbon
exhibit similar behavior. The majority of those
• Changing Times who have experienced identity theft have taken
• Is Frugal Here Forever? no subsequent steps to secure personal informa-
• Dealing With Perception tion online.
• almost sixty percent of respondents admit they are not
• Adjusting to Limited
Delivery confident or are unsure that their list of “social media
friends” only include people they know and trust.
• Motion or Progress?
• Direct Mail and ALL PRINT IS NOT ALIKE
Fund-Raising
Recent literature about media often makes the unfortunate assumption that all print is alike.
• No Longer Bamboozled
In fact, it’s not that simple. In some contexts, print has a permanence and tactile quality that
and more... 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
An Information them or they considered it so terrible that they hated it.
Distribution Company Only four percent said they would ‘love’ the idea of a paperless
college diploma at graduation.”

• This edition of ITP Notes was produced on ITP’s Indigo Digital Press.
I T P N O T E S

DON’T HOLD THE PRESSES rate reputation, ranking ahead of sustainability and corporate
Ink-on-paper is far from dead. In fact, one segment of print social-responsibility programs. About a third of consumers
advertising and promotion is showing double-digit growth –– don’t believe advertising is ethical.
twelve percent –– so far in 2010, according to Kantar Media:
preprint advertising, commonly known as free-standing
CHANGING TIMES
inserts. Primary reasons for the growth: Post World War II research into business-to-business buyer-
• Increased use and redemption of coupons during difficult seller behavior almost unanimously found that perceived sup-
economic times. plier neglect was a leading cause of new supplier
• Many retailers’ more aggressive promotion of store selection. A recent study by the international consulting firm
brands (private label products). McKinsey & Co. suggests that the recession has fundamentally
• The ability of advertisers to measure their return on changed buyer-seller behavior. Feedback from about twelve-
investment. In some cases, this goes beyond calculation of hundred corporate respondents revealed these “turn-offs,”
the overall cost-benefit relationship and may included destructive selling behaviors by sales representatives:
response by consumer, day & week, advertising vehicle, Percent
price variation studies, and other variables. • Excessive sales rep contact..................................... 30%
• Lack of knowledge about reps’ own and/or
NOT ALL FOOTPRINTS ARE CARBON competitors’ products/services............................... 20%
• Lack of industry knowledge about usefulness
Not everyone is aware that most photocopiers manufactured of product/service to customer................................ 9%
after 2002 store images of documents on their hard drives. • Sales rep style is too aggressive.............................. 8%
Even the infrequent use of a copier to reproduce a personal • Customer neglect after the sale.............................. 8%
or business document with sensitive information makes that • Other........................................................................... 25%
information vulnerable
to theft of the hard drive
upon expiration of a
IS FRUGAL HERE FOREVER?
lease or “decommission- A key question as we emerge from the recession: are some
ing” of the equipment, of Americans’ revised buying habits permanent or will we
according to research by bounce back to some of our more traditional buying trends.
CBS News. The Federal It’s a somewhat complicated question. In the case of private
Trade Commissions is label/store brand foods and other consumer products, it’s
urging photocopier man- apparent that the transformation during the past decade has
ufacturers to address the involved more than price; a substantial portion of the public
issue. Xerox Corporation believes that the differences between branded and unbranded
already offers customers the option of removing hard drives products aren’t discernible, “green” and organic issues are
as well as a no-charge image-overwrite option that destroys a consideration, and many factors other than
data stored on the hard drives of many of its models. price enter the purchase decision.
On the other hand, research by Booz
DEALING WITH PERCEPTION & Company suggests that a “new fru-
Let’s face it: many advertising agencies are not highly regard- gality” may be upon us. Its survey of
ed by the public in terms of their veracity. In fact, a recent Gal- several thousand consumers indicate
lup/USA TODAY poll ranked advertising practitioners third that, in the next twelve months, only nine percent of consumers
from last in terms of honesty and ethics, ahead of lobbyists intend to spend at pre-recession levels on household products
and car salesmen, but below business executives, members of and eighteen percent plan to spend at a pre-recession level on
Congress, and state officeholders. In an attempt to change this apparel. Sixty-four percent of surveyed consumers say they’ll
public perception, an Institute of Advertising Ethics has been shop at stores with lower prices even if they are less convenient.
launched by the University of Missouri School of Journalism Perhaps most important, about eighty percent of buyers say they
and the American Advertising Foundation. Research already will conduct more and better research before making a pur-
conducted by the University of Missouri found that honest chase decision. This certainly has implications for the same indi-
advertising is the single greatest factor in establishing corpo- viduals gathering information for a business buying decision.
Quick
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

ADJUSTING TO LIMITED DELIVERY QUICK NOTES

Notes
Despite opposition from many quarters, including mailers,
unions, and some members of Congress, five-day-a-week U.S. Post- THIS EXPLAINS IT ALL
al Service delivery appears inevitable. To a great extent, this will “No one party can fool all of the people all of the time.
probably involve shifting many costs from the Postal Service to That’s why we have two parties.”
mailers. Advertising and print schedules will need to be accelerat- – Bob Hope
ed. This may cause some printing plants to revise production
schedules, especially in the case of time-sensitive printed materials. DISAPPEARING NUMBERS
Coordination between print and other media will be more difficult White page telephone directories are about to
in the case of integrated promotion programs. become a distant memory. They are available by
request only in Ohio, Florida, and Oklahoma –– and
even in those states, only two percent of phone users
MOTION OR PROGRESS? request copies.
There are reports of substantial increases in some areas of direct
REALLY CONNECTING?
mail during the first calendar quarter of 2010 compared to the
same period of 2009, according to research and tracking service “The single biggest problem in communication is the
illusion that it has taken place.”
Mintel Comperemedia. Credit-card-related direct mail jumped 36%
and insurance mail increased 8%. Insurance-related mailings rep- – George Bernard Shaw
resent the greatest volume of Standard Mail for the quarter. Howev- CRM CONNECTION
er, that is likely to change as America continues to debate the struc-
The CRM (Customer Relationship Management) con-
ture, details, timing, and regulations involving health care. cept has been with us for several years. While it has
its proponents and detractors, several trends in its
DIRECT MAIL AND FUND-RAISING usage have emerged. According to Silverpop, usage is
more prevalent among business-to-business market-
Direct mail was the leading channel for fund-raising at not-for-profit
ers than in business-to-consumer situations by a mar-
organizations in 2009, according to Target Analytics, accounting for gin of 69% to 43%.
68% of revenue. Online contributed 9% and telemarketing contributed
3% to contributions. The research firm also reported that 87% of all SWEET DREAMS?
new donors were acquired through direct mail, compared to only 12% “Vision without execution is hallucination.”
acquired online. Giving USA Foundation reported that total donations – Thomas Edison
to charitable organizations fell 0.4% during the 2009 recession.
E-MAIL CREEP
OVERCOMING THE PRIVATE LABEL OBSTACLE American business has a love-hate relationship with
It appears that public acceptance of private label (store brand) e-mail. On the one hand, it’s fast, convenient, and rel-
products is almost complete, according to extensive research by atively inexpensive. On the other hand, the average
Ipsos Marketing. The data suggest that acceptance goes well beyond number of corporate e-mails sent and received by the
average employee continues to grow:
price. As we’ve written extensively in this newsletter during the past
several years, private labeling and packaging may provide opportu- Year
nities for many commercial print companies. The figures generated 2010 (YTD) –– 199 e-mails
by Ipsos Marketing: 2009 –– 177 e-mails
2008 –– 156 e-mails
• Consumers believe store brands perform at least as well as 2007 –– 142 e-mails
national brands in providing good value for the money (89%).
• Store brands meet my needs (87%). WHEN YOU COME TO A FORK
• Private label products are convenient (87%). IN THE ROAD, TAKE IT
• Store brands are good for the family (86%). “Nothing clears the mind like no alternative.”
• Private label products are environmentally-friendly (82%). – Nicole Harris, publisher, National Glass Association
• Private label food products taste good (81%).
• I trust store brands (80%).
• Private label products are high-quality (73%).
• Packaging is appealing (65%).
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

NO LONGER BAMBOOZLED
Tree-free paper may be making a comeback. Attempts to sell paper from easily renewable
materials 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 was
introduced by a large mill. Ironically, one of the reasons it was soon discontinued involved Information Distribution
claims by some environmentalists that the harvesting of bamboo was destroying the habitat of Graphic Design
pandas. The bamboo was harvested hundreds of miles from the nearest panda. The current Printing
sheet, ten percent bamboo Mailing
and ninety percent cotton, is Fulfillment
manufactured by Legion
Bindery
Paper. Perhaps tree-free
Warehousing
paper will finally become
more widely adopted.
ITP is an information distribution
company in Elizabethtown, PA.
This newsletter is intended to give
our peers brief details of industry
happenings. If you have any
questions regarding our services,
please visit us at:
www.itpofusa.com
ITP of USA
200 South Chestnut Street
Elizabethtown, PA 17022
717.367.3670
Useful Information and more! See inside… 866-487-8506
FAX: 717-367-1587

Useful Information and more! See inside…

Elizabethtown, PA 17022
200 S. Chestnut Street

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Elizabethtown, PA
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