Women's Collection from Marketing to Counter-Marketing
PM-USA DATABASE MARKETING REVIEW
Abstract
Describes the PM-USA Direct Marketing Database, maintained by the Leo Burnett Agency and Philip Morris, as the primary repository of information about adult smokers for the company. Explains how the information collected in the database can be used as a marketing tool to promote various brands among segments of smokers. Includes the questionnaire given to smokers in the database. Notes that since 1993 "all Corporate data collection has continued to concentrate on young adult male adult smokers (YAMS), young adult female adult smokers (YAFS), Hispanic adult smokers, and urban ethnic smokers. Claims that by the end of 1994 the PM-USA Smoker Database will grow to 30.5 million qualified adult smoker names. Presents detailed plans for promotions targeted at brand-specific smokers in the database.
Fields
- Notes
Duplicates Bates# 2043022654, 2043197003, and 2043332646.
- Type
- Report
- Diagram
- Questionnaire
- List
- Company
- Philip Morris
- Gender
- Gender mentioned, no differentiation possible
- Named Person
- Anderson, Max
- Barnes, Theresa
- Bible, Nancy
- Brandon, Lori
- Bush, Walter
- Chroscielewski, M.
- Conant, M.
- Deaton, Bill
- Dec, Kenneth F.
- Duffy, Michael
- Farrey, Ron
- Gunn, Michael
- Horton, Donna
- Klein, Marc
- Kropac, Christian
- Kulas, Jim
- Lemons, D.
- Leoffler, M.
- Less, Larry
- Maxin, Mike
- McNamara, Rpbert
- Meyers, Gayle
- Musil, Dick
- Myers, Les
- Parker, Guy
- Pingel, Kenneth
- Price, Ron
- Schrager, R.
- Schwarz, L.
- Sirkin, Clive
- Smith, D.
- Starace, Dana
- Stuermer, Mike
- Suske, Randy
- Symon, Jeff
- Toby, Julie
- Warwick, Chris
- Weber, Ron
- Zipkin, Art
- Named Organization
- Axciom
- American Marketing Services
- American Transtech
- Arnold Graphic Resources
- ASAP Mailers
- AT&T American Transtech
- Barton Printing
- Bockman Printing
- Bradley Printing
- Business Systems
- CACI
- CCX
- Census Bureau
- Champion Business Forms
- Claritas
- Comart
- Communicolor
- Computer Strategy Coord
- Creative Automation
- Cross/ Z International
- Data Dimensions Corp.
- Data Shop
- Direct Marketing Database Development Gr
- Direct Marketing Technology
- Donnelley Marketing Information Services
- Executive Marketing Services, Inc.
- General Foods
- Graphic Direct
- Hachette
- Image Entry
- Imaging Sciences of America
- Infobase
- Information Resources
- Input Services
- International Data Corp.
- ITI Marketing Services
- Johns Byrne
- Kowal & Associates
- Kraft General Foods
- Kukla Press
- Lake County Press
- LCS
- Lee Enterprises
- Leo Burnett Database Marketing Group
- Leo Burnett Agency
- Management Science Associates
- May Speh Direct
- MCN Computer Services
- Meridith
- Metromail
- Microfilm Service Company, Inc.
- Miller Brewing
- MIRI
- Natl Decision Systems
- Neodata
- Nielsen
- Personalized Graphics
- Phoenix Data Processing
- Players Computer
- Priority Systems
- Privileges Club
- Progressive Grocer
- Promotion Activators
- Promotional Services Center
- Regis Marketing Group
- Renkim
- Rickard Circular Folding
- R.J.Reynolds
- R. L. Polk
- Rmi Computer Services
- Ron Weber & Associates
- SC Data
- Scanforms
- Simmons
- Sitel
- Spectrum
- Strategic Mapping
- Telemark US Direct
- Telematch
- Time
- Unique Data Services
- Unique Mailing Service
- US Postal Service
- Venture Associates
- Winstar Enterprises
- Brand
- Alpine
- Basic
- Benson & Hedges
- Benson & Hedges De-Nic
- Bucks
- Cambridge
- Camel
- Capri
- Doral
- Kool
- Marlboro
- Merit
- Merit Ultima
- Next
- Parliament
- Philip Morris
- Salem
- Superslims
- Virginia Slims
- Winston
- Thesaurus Term
- Marketing Research
- Consumer Brands
- Population Groups
- Databases
- Surveys
- Promotions
- Keyword
- YAFS
- YAMS
Document Images
HIGHLY CONFIDENTIAL
DRAFT
PM-USA DATABASE MARKETING REVIEW
MARCH 1994
Executive Summary
Background
This is an updated version of the PM-USA Direct Marketing Review, which
was originally issued in November 1992 and previously updated in June 1993.
Mission of PM-USA Direct Marketing_and Database Development
Department
The mission of the PM-USA Direct Marketing and Database Development
Department is to provide database/information management and direct
marketing expertise as core capabilities to support PM-USA Brand efforts to
build business and maintain/grow smoker franchises. Toward these ends,
the department will ensure that:
The PM-USA Adult Smoker Database is continuously refreshed;
Critical database information is available in a timely manner;
Information on the PM-USA Adult Smoker Database has the highest
level of integrity;
All marketing systems and processes are state of the art;
Cutting edge direct marketing disciplines are standard operating
procedure.
To accomplish these objectives, the PM-USA Direct Marketing and Database
Development Department`works in partnership with PM-USA Information
Services in Richmond as well as the Leo Burnett Database Marketing Group
and Corporate Client Service.
PM-USA Adult Sw-qcer. 'Database
Current projections are that the PM-USA Smoker Database will grow to
30.5MM qualified adult smokektxames by year end 1994. This growth will
come predominantly from PM -USA Brarid 'narne generation efforts such as
the Marlboro Country Store Van. At present, there are no plans to conduct a
mass mailing to the database as had been-done in 1993, with 'thd Corporate-
Price Announcement Mailing to 25.5MM adult smokers. Therefore, it is
anticipated that PM-USA Brand utilization of the database will fall back to
previous levels (i.e., 80%), with the delivery of 66 Brand mailings now ~~
scheduled to drop over the course of the year. l+'
Database Dynamics
Unbranded data collection efforts will continue to focus on enhancing the rl\
quality of information available for key smoker segments already on the ~1
database as opposed to the aggressive name generation efforts of the past. The
standard smoker survey will continue to be used. It was successfully revised o~~ ~~
in 1993 to allow for the collection of new data elements (i.e., attitudes toward J
brand promotional and price-off offers) as well as more precise smoker
behaviors (i.e., coupon usage, consideration set, and share of purchase).
Database Mana eg ment
Successful management of the PM-USA Adult Smoker Database continues to
be achieved through the effective partnership among PM/NY,
PM/Richmond IS, and Leo Burnett. The operating objectives of this
partnership are to:
Leverage the database as a strategic asset;
Execute flawlessly, and;
.~
Operate efficiently.
A core responsibility included in the database management function is
effective and efficient information management. Toward that end, there is a
project underway to automate the dissemination of key database statistics
about database contents and activity throughout the PM-USA organization.
The first report is scheduled to be distributed by the end of April.
Strategic Direct and Database Applications
This is defined as direct and database activities which are cutting edge and
have therefore, not yet been mainstreamed into PM-USA Brand. As such,
these efforts are typically:
Reactionary to in-market conditions or smoker behaviors;
Systems and/or process driven;
Highly measurable; ~
a
-All
~
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00
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0
Funded by the PM-USA Direct Marketing and Database Development
Department;
Complementary to brand efforts, and;
Implemented with Brand participation and approval.
Opportunities in this area for 1994 indude:
Direct to Smoker Selling;
Selective Binding;
Smoker Relationship Building;
Electronic Couponing (i.e., micra-encoded check coupon);
Interactive POS Technology;
PM Bank, and;
Niche Businesses such as Hispanic smokers and carton buyers.
Several initiatives begun in 1993 continue to be top priority in the new.year.
These projects include:
Name Allocation Policies and Procedures;
Behavioral Models;
Local Area Marketing;
Just in Time Marketing;
Valuing the Smoker;
PM-USA and Competitive Direct Mail Tracking System, and;
Technological Database System Planning.
PM-USA DATABASE MARKETING REVIEW
TABLE OF CONTENTS
sect39~ EW
I. General Overview ...................................................................1
- Definition of terms
- PM-USA Integrated Marketing Vision
II. Historical Perspective of Database Marketing ...................................3
Activity: 1988-1994
- Database Size
- Number of Names Used
- Corporate Database Marketing
III. Why Build a Marketing Database? ..................................................4
IV. The PM-USA Adult Smoker Database .............................................6
- Database Content .............................................................. 6
- Database Structure .............................................................7
- Database Dynamics ........................................................... 11
- - Data Collection ........................................................ 12
- Data Maintenance ..................................................... 13
- Data Enhancement .................................................... 16
- Database Validation .................................................. 17
- Database Access ............................................................. 19
- Database Output ..............................................................20
V. PM-USA Database Management .................................................22
- Role of PM-USA Corporate Database Development and
D irect Marketi ng Department . .......................................... 23
- Role of PM-USA Information Services ...................................23
- Role of LBCo. Database Marketing Group ..............................24
VI. PM-USA Database as a Brand Marketing Tool ................................28
VII. PM-USA Strategic Database Applications ......................................56
VIII. Attachments
Sn~~
an '
UPC 89415
No. RB118
oIIBI,nE,l~lll,ll,ll.lll
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9
I. GENERAL OVERVIEW
Before getting into the specific direct marketing/database activity of PM-USA, it
may be useful to define some of the key terms that will be used throughout this
document. These terms are commonly used within the direct marketing
community-at-large, but tend to take on unique dintensions within specific
organizations.
Direct Marketing: The techniques of getting:messages or offers direct to a
target audience via a.variety of media to produce some
type of immediate and measurable action.
Direct Response: A specialized type of advertising that solicits a lead, an
order, or information, and always provides a means to
respond. This can be via an order form or a telephone
number which enables the consumer to act immediately.
Direct Mail: A medium like TV, radio, and print used to carry a
message to a customer or prospect, and typically solicits a
response:
Database: A central repository of information about current as well
as potential PM-USA brand adult smokers, collected from
a variety of sources (e.g., consumer surveys, promotion
responses, coupon redemption, third party suppliers).
Database Marketing: The strategic use of the PM-USA Adult Smoker Database
to create and cultivate an ongoing relationship with
individual adult smokers, via a variety of media.
Database Managemeni An ongoing effort to keep the database up-to-date,
R accurate, and mailable as well as reflective of the U.S.
smoker population over 21 years of age.
At the present time, the primary focus of PM-USA is direct marketing. However, the
database can have a much broader impact on how we do business. Potentially, it could
drive all brand communication: to the consumer, whether it be in the mail, outdoor, in
print or at retail. For a visualization of"this integrated communication opportunity,
please see the following page. _
PHILIP MORRIS SMOKER DATABASE
S69E88Iti0Z
... . ..:iYO...: ir4,
II. Historical
Perspective
2041883696
IL
kE
OR:
EtSPECTIVE OF DIRECTJDATABASE ACT]
99
The PM-USA Adult Smoker Database was created in 1986, using names gathered
from brand promotions fielded in 1982-1986. Initially, the database was
maintained at an outside supplier (i.e., CCX now Ac)iom), but in 1988 it was
moved in-house (i.e., Richmond) where it continues to reside.
Over the past seven years, the database has grown from 8MM to 30.5MM (projected
year-end 1994) "qualified" adult smokers. Qualified adult smokers are those adult
smokers on the database that are eligible to receive brand programs. This means
that at a minimum there is brand information, date of birth, a mailable address,
and a signature. The growth of the database is the result of aggressive corporate
and brand name generation programs (i.e., adding new adult smoker names) as
well as requalification programs (i.e., updating adult smoker information on
names held in the database, and since 1990, obtaining adult smoker signature).
The following chart summarizes the highlights of the development and use of the
PM-USA Adult Smoker Database.
QUALIFIED CORPORATE BRAND DIRECT
ADULT NAMES IN MARKETING MARKETING FOCUS OF CORPORATE
YEAR SMOKERS' DIRECT PROGRAM BUDGET (Sl BUDGET (S) DATABASE ACTIYTTY
1988 8.0 MM n/a 14.3 MM n/a Improve usability of names
for brand programs through
requalification.
1989 11.5 MM 4.3 MM 11.0 MM 30.7 MM Continue requalification
programs (mail and outbound
telemarketing) and test
names generation concept.
1990 143 MM 7.3 MM 13.7 MM 60.6 MM Continue requalification
programs and expand name
generation programs.
1991 20.8 MM 14.7 MM 39.0 MM 62.2 MM Implement aggressive name
generation programs to meet
brand name needs. Use
requalification programs to
obtain signatures as well
as update adult smoker
data.
1992 25.6 MM 16.0 MM 35.0 MM 122.0 MM Continue aggressive name
generation programs, with
focus on key adult smoker
segments. Use
requalification programs
selectively.
1993 28.5MM 25.5 MM 18.0 MM 184.0 MM Improve quality of information
on key adult smoker
segments currently held on
database.
1994 " 30.5MM 24.4MM 18.3MM 125MM (OB) Develop portfolio of database
marketing tools that help to
build Brand business.
Qualified Adult Smokers = Mailable known adult smokers, with date-of-birth, brand, and signature
Projected
3
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