ETD: 787 Does advertising work?; Fine-Tuning Spam Filtering; Is RFID Ready for Rollout? Wal-Mart Says Yes

E-Tailer's Digest etd_post at gapent.com
Thu May 20 11:16:43 GMT 2004


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0787                    May 20, 2004
  George Matyjewicz, Moderator         mailto:georgem at gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
==================================================================
   CONTENTS

  [1]  Greetings
  [2]  Does advertising work?
  [3]  Fine-Tuning Spam Filtering
  [4]  Is RFID Ready for Rollout? Wal-Mart Says Yes

==================================================================
  [1]  Greetings.
==================================================================
Hi All:

Interesting thoughts today on my query about what advertising works.  What 
works for you?  What do you think works, but you haven't tried?

Spam seems to now represent 50% of all e-mail (over 90% in my case), up 
from 10% a couple of years ago.  It's hurting discussion lists like 
E-Tailer's Digest and business and personal correspondence.  I don't know 
how much business we lost.  What do you think will happen in the 
future?  Will it destroy e-commerce?  Will controls be in place?

RFID is in the news more and more.  Wal-Mart says they are on target.  What 
do you think?  Will it be the wave of the future, or is it too far ahead of 
it's time?

Tell us about your business which will remain  for posterity at 
our  "Members: Who Are You?" site.  We just updated all those postings that 
we were delinquent with the 
updates.  http://etailersdigest.com/resources/members/index.htm And we have 
a form there for you to tell us about you.  As I said when I first proposed 
this idea, we have "known" each other for a long time, yet we often don't 
know anything about each other.   So, tell us who you are and what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com

==================================================================
  [2]  Does advertising work?
==================================================================
I've had mixed feelings about advertising throughout my career, and as I 
mature and competition heightens it seems apparent just how important the 
'right advertising & marketing plan' really is. I attended a good seminar 
on this subject at the last Esthetics Conference in Vegas. The following 
points make some sense:

  1. In a 4 year period most businesses lose an average of 70-80% of their 
Client Base
  2. Do it right, with a Parallel Style to your image
  3. Start with a smaller budget, & saturate to repeat mailings at least 
4-6 times
  4. Have a plan (a Marketing Plan)
  5. Decipher your Target Market
  6. Choose one item or service or "Buzz" to Focus your Advertising
  7. Communicate to Clients often
  8. Spend about 5-13% of your Revenue on this line item (Marketing)
  9. Set a Goal & a method, make it measurable
10. Direct Mail has the return: It's about the Relationship

In this struggling Economy I felt the previous points were really the best 
& most helpful.

Let me know what you think.

Daphne Engelken
Daphne Spa Business Development
PO Box 4324
Carmel, CA 93921
daphnedee at prodigy.net
831-583-9111

+++ [Moderator's Comments] +++
Great tips Daphne.  Right on target.

+++ [Next] +++
I posted this query to Market-L, the best marketing list on the 
planet.  Members pointed out that I left off a couple of marketing 
strategies to consider:

1.  Telemarketing, in particular in a  B2B environment.
2.  Promotional products
3.  High Probability Selling (prospecting).

If you haven't read Jacques Werth's book on High Probability Selling, you 
must.  It is one of four in my permanent library.  Here's a comment from 
Jacques:

Please Note:  What we call "telephone prospecting" is NOT what most people 
refer to as "cold calling."

While telephone prospecting isn't the only type of marketing that we 
utilize or recommend to our clients, it's a major source of our corporate 
accounts. It's also what we teach to the vast majority of our sales 
training students.

The reasons are simple:
o Compared to other forms of marketing, the start up costs are minimal and 
the cost per sale is usually very affordable.

o Compared to other forms of marketing, the ROI is usually quite acceptable.

o Compared to other forms of marketing, the learning curve is very short.

o Compared to other forms of marketing, testing is fast and 
inexpensive.  The results can be measured almost immediately, and 
corrective action can be made quickly.

o Compared to other forms of marketing, less additional marketing support 
is required.

One downside of telephone prospecting is that it's labor intensive and 
requires a disciplined approach with consistent activity.

Another downside that it requires knowledgeable marketing supervision, with 
frequent analyses of the metrics and subsequent tweaking of several variables.


------------------------------
             Jacques Werth
      High Probability Selling
         For Free Newsletter:
http://www.highprobsell.com


==================================================================
  [3]  Fine-Tuning Spam Filtering
==================================================================
The spam crackdown is causing headaches for companies, such as newsletter 
publishers, that ship large volumes of legitimate e-mail. Because of the 
crackdown on spam, these companies are seeing spikes in the number of 
undelivered messages. Consequently, users increasingly are missing 
important communications, and often they don't even realize it until they 
talk with the senders.

Because the volume of spam has increased from about 10 percent of all 
e-mail in 2001 to more than 50 percent today, corporations and ISPs have 
been trying to find ways to keep the junk mail from overwhelming users' 
inboxes. Filtering products, which rely on several techniques to separate 
needed messages from unwanted solicitations, have helped cut down on the 
bulk-mail deluge.

However, these filtering products have a dark side: They can inadvertently 
block wanted messages, often without the user ever being aware of the 
block. This is a significant problem, one vendors are working diligently to 
fix, but such a remedy seems more of a long-term than a short-term 
probability.

Everyone agrees spam has evolved from a minor annoyance into a significant 
drain on corporate resources. "Curbing spam is the top priority for many 
corporate IT staffs," said Michael Osterman, president of Osterman 
Research, a market research firm focused on spam. "Users not only complain 
about it, but they also spend a lot of time sifting through a growing 
number of spam messages."

In response, companies such as Brightmail, Cloudmark, MailFrontier, 
Postini, Trend Micro (Nasdaq: TMIC)  and Tumbleweed Communications (Nasdaq: 
TMWD)  have developed products to deal with the problem. Two techniques 
have been widely used to block unwanted messages.

As Clear as Black and White
The first technique, called either whitelisting or blacklisting, examines 
the origin of e-mail messages. After monitoring incoming e-mail, companies 
develop two lists (a whitelist and a blacklist) and two different routing 
actions based on the lists. A whitelist is a collection of senders whose 
correspondences should always pass through the corporate network without 
being checked. Blacklists are the opposite: Everything sent is considered 
spam and is therefore blocked.

The problem with this technique is that companies never really know who is 
generating a message. "Spoofing (the process of putting another person's or 
organization's e-mail address in the header) is a major issue, and more 
than one out of every three spam messages does not come from the address 
listed," said Richi Jennings, leader of the antispam practice at Ferris 
Research, a market research firm.
Content filtering has been the other main technique used to block spam, and 
Bayesian filters are the most popular technique within this category. Such 
products examine transmissions and then assign statistical probabilities 
concerning the likelihood that a particular message is spam. The 
probabilities are based on message content. For instance, a message with 
the word Viagra will result in a higher rating than one without it.

As a piece of e-mail passes through a filter, each message is assigned a 
ranking, such as from 1 to 99. The higher the number, the more likely a 
message is spam. A network operator then selects possible actions based on 
the ratings. If a message scores a ranking of 97 or higher, for example, it 
could be blocked. At thresholds of 85 to 96, a note saying "this may be 
spam" could be added to the subject line as the message is relayed to the 
end user.

The spam crackdown is causing headaches for companies, such as newsletter 
publishers, that ship large volumes of legitimate e-mail. Because of the 
crackdown on spam, these companies are seeing spikes in the number of 
undelivered messages. Consequently, users increasingly are missing 
important communications, and often they don't even realize it until they 
talk with the senders. More and more employees are becoming frustrated 
because they expect e-mail delivery to be guaranteed, and they are putting 
pressure on IT departments that have few technical alternatives at this stage.

Creating Customer Dissatisfaction
The end result of this give and take in the e-mail world is that few 
companies are completely satisfied with today's filtering capabilities, and 
many are pressuring vendors to improve them. Osterman Research found that 
just 25 percent of users in a survey were "very satisfied" with their spam 
filter's ability not to generate false positives, and 16 percent expressed 
a degree of dissatisfaction.

In response, vendors are searching for better authentication techniques, 
and researchers are working on the problem from several different angles. 
One technique, championed by companies such as Microsoft (Nasdaq: 
MSFT)  and Yahoo (Nasdaq: YHOO) , involves use of "domain keys," which use 
public-key encryption  technology to verify e-mail senders. If this 
approach were implemented, ISPs could enable authenticated e-mail messages 
to reach end users.

Details at
http://www.ecommercetimes.com/story/33843.html
==================================================================
  [4]  Is RFID Ready for Rollout? Wal-Mart Says Yes
==================================================================
During his opening remarks on Tuesday, keynote speaker Mike Duke, Executive 
Vice President and CEO of Wal-Mart Stores Division USA, told the crowd, 
"RFID won't just transform; it'll revolutionize." One revolutionary aspect 
made itself abundantly clear during the morning's presentations: as RFID 
continues to gain momentum, the relationship between retailers and 
suppliers will continue to morph from buyers and sellers to equal and 
integrated partners, creating truly collaborative commerce.

"Implementation is inevitable," he said, "so you need to plan, and you need 
to start now, because you don't want to be the last one on board." He 
recommended companies join Wal-Mart in getting involved with EPC Global, 
and that retailers and suppliers work together at every step of planning 
and implementation.

Duke shared Wal-Mart's RFID roadmap to an extent, declaring that contrary 
to some reports, the company is exactly on track with its plans and is not 
slowing or reducing deployment. RFID at the case/pallet level, he said, 
will go live with the top 137 suppliers in January 2005, followed by a full 
US rollout in 2006 covering all stores and suppliers, and international 
implementation initiating in 2005-06.

Article from Retail Info Systems News
(http://www.imakenews.com/edgellris/e_article000261721.cfm?x=a2RFwC1,a1CY7bKF)

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