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

June 2010 Volume 8 Issue 4

In This Issue:
USEFUL INFORMATION GROWING COMPLEXITY
Companies offering a product or service have an almost bewildering array of choices regard-
ing allocation of advertising and promotion resources. There are various formats of print
(catalog, direct mail, newspapers, magazines, inserts, etc.), e-mail, web sites, billboards, and
social media. Investment decisions are normally preceded by a review of research informa-
tion in this newsletter and other sources, the majority of which report that performance is
magnified by the coordinated use of two or more media. Addressing this issue is only half of
the management challenge.

The other half of the challenge involves managing feedback

• The Dangerous Either-Or from the marketplace. This has two elements:
Decision
• receipt and processing of orders.
• Tighten the Screws? • customer service.
• Proofreading
Like the advertising/promotion cycle, these elements involve
• A Momentous Decision
multiple communication channels. Orders, inquiries, and
• It’s All in the Definition other feedback may arrive by U.S. mail, e-mail, fax machine, telephone, or some other
• The Ball is Rolling channel(s). According to surveys, many marketing firms have wrestled with providing consis-
• Private Label Brands
tent performance in all areas of service. American business has spent years and billions of
dollars addressing product quality and consistency. The challenge is to provide customers
• Quick Notes with the same level of performance in its customer service and transactions.
• Paper
and more... COLOR
There are debates about the relative merits of toner, offset reproduction, and other hard-
copy pigments, but there’s little question that the cost of color printing has been decreasing.
This has both benefits and hazards. In the case of the latter, it’s attributable to the fact that
many of us view color differently. One of every thirteen males is born
with some deficiency in discerning color, and that deficiency
degrades when they pass the age of forty or so. Color discern-
ment, on the other hand, is a problem for only one percent
of females –– and women experience no ocular degrada-
An Information tion later in life. This has implications in the case of a
Distribution Company review of press and other hard copy proofs. It also explains
the importance of densitometry and other electro-mechan-
ical measurement devices in printers’ pressrooms to insure
accurate color reproduction.
• This edition of ITP Notes was produced on ITP’s Indigo Digital Press.
 I T P N O T E S

THE DANGEROUS EITHER-OR DECISION
Some publishers may have been too quick to dismiss the
future of the printed magazine. Certainly, some readers prefer
online to hard copy readership. However, a study of more
than one-thousand consumers sponsored by the Chief Mar-
keting Officer (CMO) Council yielded some interesting infor-
mation regarding current and future magazine readership.
Ninety-two percent of the respondents now receive their mag-
azines in printed format. When asked about delivery channel
preference, ninety percent of them said that they prefer hard
copy to an Internet site or an e-reader, 24% said they will
probably migrate to a digital format some day.
On a related issue, the same CMO survey also revealed con-
sumer preference for personalized advertising in a printed,
rather than digital, format. Only 41% say they would respond
to personalized magazine advertising solicited by a digital
reader compared to 63% who say they would respond to the
same or similar solicitation in a printed format. The bottom
line: it’s truly a multi-media world and print is unlikely to be a
vanishing species.
They also suggest that the proofreading of an article begin at
the end of the document. When read in this sequence, the
proofreading process isn’t detracted by content and the temp-
tation to edit copy.
A MOMENTOUS DECISION
The current recession has, among other things, fueled the
business community’s dialogue about loyalty throughout the
entire supply chain. Relationships have been affected, some-
times strained and sometimes strengthened. The situation has
been exacerbated by the proliferation of sales and communi-
cation channels. It’s true of virtually all organizations in every
industry or vertical market. Even so, it came as a surprise
when eighty-billion-dollar-a-year consumer goods giant
Procter & Gamble announced introduction of its own

TIGHTENING THE SCREWS?

Existing law facilitates communication from marketers with
which a consumer has an existing business relationship. Steps
are being taken to modify that concept following a staff inves-
tigation by the Senate Committee on Commerce, Science, and
Transportation, which alleges that some marketers are engag-
ing in illegal post-purchase tactics and making it intentionally
difficult for consumers to receive money back on request. A
bill introduced by West Virginia Sen. Jay Rockefeller, called
the ”Restore Online Shoppers’ Confidence Act,” would “e-store,” selling such products as CoverGirl cosmetics, Pam-
require sellers to obtain consumer information directly from pers baby products, Gillette shaving goods, Tide detergent,
an online buyer through a separate data-input and opt-in pro- Crest toothpaste, and Pantene shampoo directly to consum-
cess than the buyer used for the original purchase under the ers. Based on the initial announcement, Procter & Gamble
Federal Trade Commission Act. will be competing directly with its accounts, which include
every major consumer package goods retailer in America.
PROOFREADING Procter & Gamble for several years has said that private
Liability for proofreading is a label (store) brands represent a long-term threat to its
provocative topic. However, pricing strategy.
there’s no question that automat-
ed spell and grammar checker, IT’S ALL IN THE DEFINITION
while valuable, cannot eliminate
It’s an often-told story that railroads were irreparably hurt
all errors; it is recommended for
by its failure to define themselves in terms of the transporta-
only the initial stage of the proof-
tion industry. Electronics retailer Best Buy believes it has
reading process. Proofreading on
learned from that example: it is planning to sell electric
a computer screen can also be a
cars, believing that these vehicles are simply computers
problem. Experts recommend that copy be printed and that
with wheels.
the person doing the proofreading read it aloud and silently.

I N N O V A T I V E T E C H N
POSTAL ISSUES
THE BALL IS ROLLING
The Postal Regulatory Commission has begun the legally-mandat-
ed six-month process that must pre-date its decision regarding
proposed five-day-a-week mail delivery. During that period, the
PRC will hear testimony from stakeholders, including the public, at
seven venues across the country, then makes its recommendation
regarding the proposal.
KEEPING COUNT
Does your organization store print or merchandise at a supplier’s
facility? If so, that inventory may be carried on the books as an asset
–– and it’s important that the numbers be correct. If you haven’t
already done so, consider scheduling a periodic physical inventory
to insure that computer records are accurate.
PRIVATE LABEL BRANDS
The conventional wisdom is that the popularity of private label con-
sumer products (“store brands”) is primarily driven by the reces-
sion. Evidence is that this may be of several contributors to the
growth, but that other trends are involved. According to Consumer
& Shopper Insights, “It wasn’t until fourth quarter 2008 that we
started to see big shifts, driven largely by affluent households. They
are now among the fastest users. It’s the younger ones turning to
store brands much more than older people.” Nielsen reports that,
in March 2010, store brands represented 17.3% of U.S. dollar sales
and 21.9% of unit sales. That’s an increase of 2.1% and 1.9%,
respectively, since 2007. Heavy users of private label products
represent 20% of households, but purchase 46% of store brand
products, accounting for 34% of total store purchases.
Quick
O L O G I E S I N P R I N T
QUICK NOTES
Notes
A NEW ADJECTIVE
A new term to add to your vocabulary is “word of fin-
ger.” It describes marketing messages communicated
via the keystrokes of social media that, unlike tradi-
tional word-of-mouth communication, can be
monitored through Facebook and Twitter.
IT MAKES SENSE IF YOU THINK ABOUT IT
“Always go to other people’s funerals. Otherwise, they
won’t go to yours.”
– Yogi Berra
F.T.C. PUBLICATIONS
The privacy issue looms large but implementation of
privacy practices can be an imprecise, difficult matter.
The U.S. Federal Trade Commission publishes a series
of booklets and brochures regarding compliance, writ-
ing of financial privacy notices, and even protection of
employee information. The roster of F.T.C. publications
is available at http://www.ftc.gov/bcp/consumer.
shtm.
DEPENDING ON YOUR PERSPECTIVE,
SOMETHING TO LOOK FORWARD TO
Know the federal standards for emissions and mile-
age that manufacturers of cars and light trucks must
meet? The administration is calling for similar stan-
dards that must be met for newly-manufactured work
trucks and big rigs, beginning about five years from
now. Environmentalists argue that the larger vehicles
now account for about four percent of U.S. traffic but
contribute about twenty percent of the emissions, and
that the Gulf of Mexico oil spill highlights the need to
reduce use of fossil fuels. On the other hand, some
groups express concerns about the effect proposed
regulations would have on business, particularly small
business.
FRIENDLY IRRITATION
How often should a not-for-profit organization mail
fund-raising solicitations? It depends who you ask.
Ask donors and potential donors and the answer is
likely to be about four times a year. However, a study
of consumer behavior produces much different
results. According to marketing consultancy Russ Reid
Co., a campaign with twelve-to-eighteen mailings a
year were twice as profitable as three-to-six mailings a
year. The verdict: after testing, a not-for-profit organiza-
tion needs to measure, then decide, whether the cost
of the extra mailings and the inevitable complaints are
worth the increased frequency.
 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

PAPER
A final ruling is anticipated in late October or early November regarding the proposed impo-
sition of extraordinary tariffs against coated paper from China and Indonesia, which are
accused of “dumping” in the U.S. at below-market prices. If imposed, the total tariffs will be
43.65% and 28.1%, respectively.
Information Distribution
Graphic Design
In the meantime, several large mills are
reporting positive financial results fol- Printing
lowing years of capacity cuts. Two large Mailing
Finnish pulp and paper companies –– Fulfillment
Stora Enso and UPM-Kymmene –– Bindery
recently reported sharply improved Warehousing
profits. International Paper Company
also reported improved performance ITP is an information distribution
and increased its dividend by four-hun- company in Elizabethtown, PA.
dred percent. All mills also reported This newsletter is intended to give
our peers brief details of industry
growth in demand. happenings. If you have any
questions regarding our services,
please visit us at:
OFFERED WITH NO COMMENT www.itpofusa.com
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