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The company that doesn’t see trouble ahead is headed for real trouble.
That’s why it hires economists, consultants, and futurists
For many companies, making the product doesn’t cost as much as
bringing it to the market! Farmers know this well when they see how
small a percentage of the final retail price they receive for their crops.
Marketing in many cases now averages 50 percent of total company
costs. Producers would like to eliminate the middleman, whom they
see as charging too much. But while you can eliminate the middleman,
you cannot eliminate the functions he performs. You and/or
the customer would have to perform the same functions and probably
wouldn’t do them as well.
When direct mail is at its worst, it consists of a cold mailing to a list
of names and addresses with the hope of hitting a 1 to 2 percent response.
The response is low because the message doesn’t go to people
with a need for the product or arrive at the time they need it.
Hence the term “junk mail.”
