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Research: Proactive Marketing During Recession

Penn State's Smeal College of Business
UNIVERSITY PARK, PA

—An economic recession should not prompt marketing cutbacks, but rather an aggressive increase in marketing spending to achieve superior business performance according to research authored by Gary Lilien and Arvind Rangaswamy of Penn State's Smeal College of Business.

"Turning Adversity Into Advantage: Does Proactive Marketing During a Recession Pay Off?"
International Journal for Research In Marketing
The study finds that firms entering a recession with a pre-established strategic emphasis on marketing are best positioned to approach recessions as opportunities to strengthen their competitive advantage

To arrive at their conclusions, Lilien, Rangaswamy, and their co-author Raji Srinivasan of the University of Texas surveyed more than 150 senior marketing executives from a variety of industries.

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Businesses aren’t doing themselves any favors by cutting back on advertising. Companies historically that have not only stayed afloat despite harsh economic times but actually came out stronger. When competitors were scaling back these companies were ramping up. Their bottom lines as a result are stronger for it.

Direct Mail is built on measurability & accountability.

Branding without direct response is negligent.

Consumers & marketers work as partners not adversaries.

As traditional advertising vehicles like print & TV ads continue to reach progressively smaller audiences.

Recipients actually want your mail. Prospects & customers have been SO overwhelmed with e-mails that the deluge has turned off many of them It has in turn made them more receptive to mail.

  • 56% of American's surveyed say receiving mail is a pleasure.
    InnoMedia
  • More than 70% sort their mail immediately & 66% read it every week.
    USPS
  • Integrate direct mail with new & interactive media to support your business goals.
  • Believe it or not, there are people who are more comfortable receiving & responding to direct mail than e-mail. Seniors are motivated readers that open & keep direct mail.
  • Mail is more private & secure than e-mail.
  • Direct Mail is memorable in appearance, sticks around longer and often gets passed around to other potential buyers.

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“Economic shock gives rise to coupon cutting” CNN.com 10/2008

"Coupons motivate customers when they're looking at different stores that offer the same goods. They're more likely to go with a store that offers coupons."

  • Shoppers are turning to coupons for deals on luxuries & necessities.
  • Use of coupons for services such as oil changes, dry-cleaning up 198%
  • Couponing at big box retailers up 14& even as restrictions increase.

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Brandweek.com
Majority of Consumers Using More Coupons
August 27, 2008
A new study finds that 72% of consumers are using more coupons than they did six months ago. Three-quarters of those respondents claimed the economy made them do it.

*87% of shoppers said they would be more likely to shop at a retailer that offered coupons. The one thing that really surprised me about this study was how many people wanted to receive their coupons via direct mail.

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Research: Proactive Marketing During Recession
—An economic recession should not prompt marketing cutbacks, but rather an aggressive increase in marketing spending to achieve superior business performance according to research authored by Gary Lilien and Arvind Rangaswamy of Penn State's Smeal College of Business.
"Turning Adversity Into Advantage: Does Proactive Marketing During a Recession Pay Off?"
International Journal for Research In Marketing
The study finds that firms entering a recession with a pre-established strategic emphasis on marketing are best positioned to approach recessions as opportunities to strengthen their competitive advantage
Penn State's Smeal College of Business
UNIVERSITY PARK, PA


Businesses aren’t doing themselves any favors by cutting back on advertising. Companies historically that have not only stayed afloat despite harsh economic times but actually came out stronger. When competitors were scaling back these companies were ramping up. Their bottom lines as a result are stronger for it.

As traditional advertising vehicles like print & TV ads continue to reach progressively smaller audiences. Recipients acutely want your mail. Prospects & customers have been SO overwhelmed with e-mails that the deluge has turned off many of them It has in turn made them more receptive to mail.

39% wanted to receive coupons via direct mail.
Prospectiv Wakefield, MA. online study

 

 

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