Survey Results& Analysis

for

Key Catalog/Multichannel Issues Survey

Tuesday, December 09, 2008 Powered by Vovici EFM

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Executive Summary

This report contains a detailed statistical analysis of the results to the surveytitled Key Catalog/Multichannel Issues Survey . The results analysis includesanswers from all respondents who took the survey in the 15 day period fromTuesday, November 25, 2008 to Tuesday, December 09, 2008. 205 completedresponses were received to the survey during this time.

Survey Results & Analysis

Survey: Key Catalog/Multichannel Issues Survey

Author: Filter: (wsb3 = '0' or wsb3 = '1')

Responses Received: 205

1) First of all, we'd like to confirm that your company mails catalogs as part of its

marketing efforts.

2) Are you involved with making decisions regarding multichannel marketing?

3) Is your catalog primarily business-to-business or consumer?

4) Please indicate what types of sales your catalog generates. (Please check allthat apply.)

Other Responses: The catalog also generates leads.....Custom-designed systemsWholesalersPrint advertising and insert programsdealerspost card mailings, pkg inserts, telemaradvertising specialty distributorsNotice of new products and services.WholesaleCatalog Publisher

eventsInside Telemarketing

5) You indicated that your catalog generates online sales. What percentage ofyour online sales, overall, do you believe are influenced by your catalog?

6) Approximately what level of increase in online sales do you see immediatelyfollowing a catalog drop?

7) You indicated that your catalog generates retail sales. What percentage ofyour retail sales, overall, do you believe are influenced by your catalog?

8) Approximately what level of increase in retail sales do you see immediatelyfollowing a catalog drop?

9) Do you have a matchback program in place?

10) How would you describe the level of accuracy AND reliability of yourmatchback program?

Comment Responses: Keycode driven - if keycode not provided not accurate reportingvia human chkingDirectionally accurateWe have multiple programs going on at once, so our matchback is not clean.It's difficult in B2B to get customers to give source codes.

11) Which answer best describes the percentage of your product line carried inyour catalog, on your Web site, in your stores or offered by your sales force?

Catalog Web site Stores Field salesMore than 90% 39.5% (81) 75.1% (154) 12.2% (25) 14.6% (30)90% 9.8% (20) 5.9% (12) 1.5% (3) 0.0% (0)80% 10.7% (22) 6.3% (13) 2.4% (5) 3.9% (8)70% 12.2% (25) 1.5% (3) 2.4% (5) 1.0% (2)60% 5.9% (12) 2.0% (4) 1.5% (3) 1.0% (2)50% 5.9% (12) 2.9% (6) 3.4% (7) 1.0% (2)40% 3.9% (8) 1.5% (3) 2.9% (6) 2.0% (4)30% 4.4% (9) 2.0% (4) 1.5% (3) 0.5% (1)20% 3.4% (7) 1.5% (3) 2.4% (5) 2.9% (6)10% 2.4% (5) 1.5% (3) 1.0% (2) 1.0% (2)Less than 10% 2.4% (5) 1.5% (3) 2.4% (5) 4.4% (9)Not applicable 1.5% (3) 0.5% (1) 25.4% (52) 22.0% (45)

12) How will your marketing budget change in 2009 compared to 2008?

Comment Responses: More funds to print advertsingmore e-commerce, same catalog, less print adsdoing more targeted smaller postcard type mailingsPrint budget is still much higher than e-commerce, but we are actively drivingcosts out of catalog since printing costs have increased.About the same on ecommerce, printing catalog in 2009Increase in print due to cost increases, not quantity.We're in survival mode. In order to survive, we need to cut costs across theboard.Technically our print is remaining about the same, but we are shifting thingsaround a little.introducing e-Catalogs

30% cutback on mass media.

13) What do you feel are the biggest challenges facing the catalog/multichannelindustry in the immediate future? (Please type a brief response below.)

What do you feel are the biggest challenges facing the catalog/multichannelindustry in the immediate future? (Please type a brief response below.)hgjkThe current economic climate.economyPostage, deliverability, slow economyPOSTAGEBudget & tracking success of effortscompeting with other companies for seocost increases, keeping up with the constant changes and knowing where to getthe most ROI from what channelThe current bank-initiated freeze on credit extension, which reduces consumerand business spending significantly.Internal silos within our organization, and lack of understanding of applyingwebsite analytics to a business plan.Print catalog sales are down, harder justify to increase acquisition quantities ofcatalogs with less resultsEconomySales. No one is buying right now.Postal cost and printingCost ROIoutbound freightEconomicNew customer acquisition - particularly via the webgetting catalogs past secretaries to teachers

Economy. Advertising cost increases.no one is shoppinggeneral economic conditions perceptions of economic conditions may be topessimisticRaising costs of paper, printing and postage and lack of purchasing byconsumers via catalog as they exit to the webGeneral economic uncertainty, new customer acquisitionConsumer spending. Expenses in general.Determining the correct balance between PPC and print ad spend.Lack of buyersexpenses, economic climatePostage Increase, Down Economy, and availability of credit.the economy and postal increasesPostage & Printing Costsless discretionary spendingTrying to reduce catalog costs.New postage rules and rate hikes. Paper prices.Consumers who focus too much just on prices. Margin declines while catalogcosts rise.Managaing the cost of multichannel sales and the cost of new customeracquisition.Determining if the catalog is truly the impetus behind online orders.Cost to print the catalog and the cost to mail it. Increase in marketing methodsespecially e-commerce.postageAbility to effectively measure the impact of multi-channel initiatives.costs - printing, paper, mailingRising paper & postage costseconomy, green initiativeprice/postage increases, multichannel consistency, doing more with less people,personal shopping experiencesThe economyIncreases in the three "P"s Postage, Printing & Paper. Also with the economythe way it is, consumers confidence is low.Cost of paper, ink, postage. What changes are the search enginges going tomake and how it will affect the work we have already done for natural search.Consumer confidenceReduced budgets at customers Green backlash ("I don't want a big paper

catalog hurting the environment...") Paper and postage increasesCurrupt corporations like Deluxe, who are trying to dominate the printingbusiness using buyouts, stealing leads, shorting commissions and #1 challenge:turning out poor quality products (MANY REMAKES) based on prior mergeractivity. Broken promises and out right internet fraud! So SUE us is theresponse to verified claims above. The ENRON of the printing world = Deluxe!Green policy, need to stop printingOnline competitionFluctuating costs of paper make it difficult to budget and allocate total marketingdollars. Measuring effectiveness is also a challenge.The purchase process has changed. Customers do their research online andsometimes you don't even get a chance to make your sales pitchAllocating marketing dollars across multiple channels... discerning what reallydrove the customer to the sale.The economic choices people will make. If the drought continues we will havenew prospects that will buy but the industry will be stressed to stay afloat if theproducts are not necessities.Separation.Economy and rapid discountingMaintaining that balance between cutting costs with page count, trim size, paperquality and mailing quantities - and not crossing the line to where you start tohurt response.Economy & postageConversion from a system that attempts to define one marketing event thatcreates a sales action to one that views customer behavior and marketingevents as a whole, on a by-customer basis.The paper catalog into 3D digital e-catalogs.Postage increases, do not mail lists, cost of paperI believe the biggest challenges are managing the variable costs (paper,postage, and printing).The postal regulation front and rising costs of consumables, such as paper.Mail costsexpensesCost of creating and mailing catalogs. Shipping options and cost.Postage increaseseconomic situation of consumersGetting information to right personConverting to more internet marketing.Postal regulations, increased costs of mailings, general overuse of e-commercetactics is watering down the effectiveness of this media

Increasing postage and paper costs.Economy, postal and paper increasesThe ecomony/consumer spending and confidence. Postage and PaperIncreases.Trying to fulfill the "wants" as well as the "needs" of the consumers in afrightening environment.Economy/recession. People reducing expenditures on non-necessities.keeping costs downeconomy in generalmailing costsIncreasing mail costs and recession.Recessionprinting, paper and postage costsRising costs (print/postage/fulfillment)THE ECONOMY!!! And the continual decline of USPS service while escalatingtheir costs makes printed matter distribution less and less viable.The most immediate challenge is the current economy. If the situation doesn'timprove soon, I anticipate you'll be seeing quite a few catalogs going under in2009.The economy and postage fees andPostal regulationsAdapting to running unified Campaigns in all channels: direct mail, telesales andecommerce. And then, knowing how each channel performs.High costs and lack of prospect namesBudgetsLower response rates due to the economy.Cost, both printing, mailing, and ad generation leadstargeted marketing, (proving ROI)customizing communucations to customers while minimizing their costsonline competitionUnderstanding where all the miscellaneous sales come fromUnderstanding what source influences the customers' decision to purchaseever increasing paper costs and postal increasespostagePrinting and postage costsfreight of product shipped to customerPoor economy.The high cost of EVERYTHING...and having to compete with cheap Chinese

goodsGetting through this downturnpostage and paper costsSpecific to our sector -- the number of manufacturers going out of business.Increasing costs of merchandise, paper and postage.rising paper and postage rates1. US Postal Service rate increases making mailing unaffordable; 2. Risein/instability of freight charges affecting print costs and distribution costs; 3.Reduction of sustainable forests of paper wood making paper costs rise andlimiting availability, shutting some suppliers down altogether.Postage rates, tarketing the correct prospect who makes the buying decision.economyOut of control costs of postage and paperbudget allocationcost of catalog production, including paper and postage. Also, consumers"shopping the web" for better prices once our catalog is received.Converting customers to shop on lineonline retailer competitionConsumers without moneyrecessionObviously the economy...however people predicting the economic slowdown inmarkets that are not expected to slwo down.the economyprinting and mailing costsThe housing market is killing Home furnishings sales. Postage increases iskilling the mail order industry.Shipping costs, new products, reaching new customersFreight charges being so high.I beleive it is postage, and cost of printing.paper and postage costsHigher mailing costs and finding the right way to identify our customers online.Cost of doing businessThe legacy of George W. BushAvoiding the temptation to do less marketing and to save for the future.remaining profitable with incurred increasing expensesPrice of paper and postage. Lack of accurate tracking.the post officeHigh cost to producce and ship a catalog.

postage, paper, email clutter, end-user saturation, too much coming at themrecessionSalesIncreasing costs, increasing costs, and more increasing costs. Oh yes, did Imention increasing costs?making sure there is no wasted mailings of catalogs - getting to the correctperson in the organization to make the decisionCoordinating efforts between the catalog and web and improving the analysis ofbothIn the B2B arena, similar to consumers, our small-business customers ourputting off their non-emergency/critical purchases for several months.keeping up with all the new channels. tracking metrics is a job unto itself.increasing cost for print and mail

14) What do you feel are the biggest opportunities facing thecatalog/multichannel industry in the immediate future? (Please type a briefresponse below.)

What do you feel are the biggest opportunities facing the catalog/multichannelindustry in the immediate future? (Please type a brief response below.)jkghgFor financially strong companies, the opportunity to gain market share fromweaker competitors.access to better talentMore personal and customizable 1-to-1 opportunitiesAll the options to market and reach current and new customers.The chance to increase customer satisfaction by staying in contact andresponding to inquiries via methods the customer chooses.Personalization across all channels.More and better methods for internet marketingUtilizing more on-line

using variable data marketing moreextensive, low cost reach/prospecting via the webcarrying out our plans in tough timesGreater and more targeted use of emaildirecting readers to websiteCustomer information based on multi-channel purchases.improving the cost effectiveness of new technologyAggregators on line who divulge cost of goods to customers so that a viableprofit is unobtainable.Increased relevance in our marketing communicationsConvenience to customers.Having the ability to send shoppers to your website for the entire selection,which allows some flexibility with the printed catalog size.Ease of shoppingcreative email tie-ins to the print catalogReally harnessing the power of Web 2.0 and multi-channel CRM.e-commercebetter/cheaper marketing software tools to measure our success.Online advertisingComailing.Personalization and segmentation are both more easily accomplished today. Wecan give our customers a much more rewarding and personal shoppingexperience.More 1 to 1 marketing communicationTargeted marketing through email and online vehiclesTurning the printed catalog into a virtual catalog that can be viewed ordownloaded by customers from a website.web intergrationWhen multi-channel marketers create the ability to measure the "true"incremental business that is generated by their multi-channel initiatives they willsee huge opportunities to cut spending in ALL channels, including on-line.Contrary to what most people believe.continued synergy between catalog and on-line.e-mail marketingdigital catalogsCataloguers continue to be on the cutting edge of ideas on how to usetechnology better to enhance their customer relationships and sales.watching for opportunities as other companies go out of business.

If people decide to stay home more than go out like they usually do, they willusually tend to spend more money on their biggest asset, their home. This, anyproducts for the home seem to benefit.quick changes you can make on the web with pricing and promotions.Better negotiations with supplier and faster supply chain/speed to marketGrowth of B2B vertical networks International versions of domestic sites Growthin the "why do I need to wait?" mentality spurring use of ecommerceRemaining independant and maintaining a personal relationship with 4 decadesof cliental.move to CDs, DVDs, onlineSocial & Viral mktgDetermining the optimal method of using a catalog to supplement the web.Since web ordering costs us less than a call center, we want more sales to gothat route.Creating your website to be welcoming to customers, easy to navigate,informative, and easy to purchaseAs the internet grows and becomes even more powerful -- the marketers thatcan maintain their catalog presence will have a distinct advantage.Filling needs and not wants! If you are a mainstream product that doesn'toverprice to the consumer and service is going to go a long way for retention.Print & Digital integration of offer AND customer service.gaining more efficiencies within operational workflow and cost cutting - andmore partnerships between companies that complement each otherUnderstanding and responding to the optimum marketing mix to create the mostefficient and effective sales.Internet, e-commerceI believe the biggest opportunity is taking advantage of the Internet.Data management improvement to combat do not mail legislation and the greenmovement.Less competitionDo Not KnowThose who survive this economic meltdown will prosper when people startspending again. Business will be better than it was prior.Competitor fallout due to the economyinformation available for customersa catalog is easier to review than a website and contains much more informationand can be carried with you to meetings etc.on the internet.Cross channel marketing optimization for increased effectiveness

Determining the proper print/e-marketing mix by customer segment.not a lot....For our company .... expanding our Web Presence and Market Share. AdvanceTech ways to contact Buyers and/or Potential Buyers...With focus, thought and imagination we can maintain our niche in themarketplace.Ability to survive when people stop buying.utilization of social mediainternet and faster internet connectionsMobile advertising and "green" opportunitites.Acquistionscatalog and webs ability to reinforce each other.improving economyOnline flexibility and speed... the ability to change marketing direction quickly ina volatile economy.Continued enhancement in the total e-commerce experience for the consumer.We are already leaps and bounds ahead of many of the largest retailers whocontinue to neglect this aspect of their business.InternetBeing able to take advantage of cost savings in one channel vs. the others, andbeing able to determine if certain channels perform better than other for certainproduct lines or type of promotions.Finding the optimal mix of contacts and offers.Flipbook Technology with customize purchasing within the catalog.Mergers / acquisitions to leverage costs.Even as paper and ink and mailing costs go up, more effective marketing canstill conceivably return better results over previous campaigns. Also, getting theprospect to accept paper catalogs even if "green".increasing electronic interactionsonline competitionMovement to more cheaper marketing channelsRefining responsiveness to offer channels and their intersectionA recession is a forced opportunity to make your company better than ever.Data mining Customer Development Product differentiationHard one to answer in a general way without being specific to the markets thatwe serve. The economy is bound to come back sooner or later so that's anopportunity in itself. I'll leave with this quote from Thomas Edison. "Opportunityis missed by most people because it is dressed in overalls and looks like work."Backlash on Chinese goods

keep prospectingonline advertising, social networking, etcExcelling in customer service to outperform competitors. Developing new andunique products for our customer base.using all channels synergistically to drive engagement and purchasesMaking use of the emergence of social networks to promote products both tobusinesses and to consumers, building brand recognition.Approaching the smaller company who is growing, but who we are not aware of.The bad economy is also an opportunity as people are looking for good dealsGetting into the next paradigm and away from catalogs as the primary marketingtoolSite placement Search rankingeconomies of scaleSurvivalSocial marketingrecessionSaturation - mail box overfill in a down economy trying to grin it out. we must bemore selective and quit dring consumers further in debt!tools, do it your self repair parts.multichannel marketing is still essentialThe web is the savior of the catalog industry. thank god for e-mail promotions.getting new customersNot sureJust survival, being able to keep going.online growthThe use of email marketing to active customers is efficient and profitable. Theability to read and react quickly in online promotions.12:00 noon, January 20, 2009Marketing in the restricted economic environment should allow easierdifferentiation in branding.Probably the demise of some competitionThe relationship between off and online sales.We are B 2 B and depend on workers worker. Wind, energy, reconstructionefforts will fuel our growth. Anytime a worker is working, safety products areneeded. No workers - we are toast!reaching the correct customerseCatalogs thst have have interesting content in addition to lists of offerings - Iwant my catalogs as popular as my offerings.

finding the new marketsPeople don't have time to comparison shop and travel to stores - the web andcatalogs are so much more convenient, time saving, and allow easy comparisonshoppingFor B2B, improve mailing lists, develop targeted marketing vehicles, improvesegment targeting, reduce paper stock where possible, suppliment your papercatalog with an e-catalog especially for prospects, and get all co-workers toembrace the brand and remember that every contact with the customers(Accounts Receivable, Shipping, etc.) is an opportunity to improve or decline thebrand.we can reach a greater and more targeted customer than with traditionalmailings.Internet search via our enhanced information search

15) Please indicate which product category best describes what your catalogsells. (Please select all that apply.)

Other Responses: Resin, Fiberglass,GelcoatsEducat'nl Textbooks, Software, Supplemenpackagingchildrens furnishings and giftsAquatic supplies and systemsPatient Education materials to PhysicianWoodworking toolsperiphials for BAS IndustrySecurity Camerasprofessional seeds and suppliesTools, Power Equipment.

bags - handbags, backpacks, laptop, etcWine Related ProductsEducational VideoWedding Invitations and AccessoriesWater Testing EquipmentPet SuppliesfragrancescalendarsGeneral MerchandisebaggageChurch Suppliesparty suppliesElectronic and electrical componentscorporate and educational training aidsag suppliesHardware and plumbingPet Suppliestrade show exhibits and displayscodes and standards educationScientific InstrumentsProducts for librariesScientific Instrumentationlaboratory salesfabric and sewing machinesNon-profitmusical instruments and merchandiseWoodworking Tools & SuppliesCD and DVD custom productsSeniorsmedia suppliesDental suppliespictureframes and printingdrug and alcohol testing productstravelEquipment and supplies for Outdoor Pros.Lighting & electrical products

Honor guard equipmentNetwork Communication ProductsMusical instruments & accessoriesJewish religious goodsKnitwear (Textile) manufacturingSchool and recreation suppliestools and hardwareIncome Generating & Savings and B 2 B.Price marking and labeling - store supplwooden furniture components

16) Please indicate your annual combined catalog- and Web-based sales.

17) Please select which job description best describes your role with yourcompany.

Other Responses: Catalog Production Mgr./Website Coord.Production ManagerMarketing SpecialistCTOVP Sales & MarketingVP Sales & MarketingGeneral ManagerControllerMore marketing analyst these dayscopywriterCatalog & Print Manager/Graphic Designer

print and production coordinatorproject manage; production managerOwnerCatalog DirectorManaging Partner/CEOWeb Administrator - Direct Mail Generated: 12/9/2008 6:11:23 PM