Bookbinders Paper

Q1:

The statement “you will lose money sending a terrific piece of mail to a lousy list, but make money sending a lousy piece of mail to a terrific list.” is saying that it is important to segment the market and then target those segments so you are not wasting time and money on consumers who have no interest in the product offering. By spending money on researching the market and developing a list of consumers interested in the product there will be a higher chance of making a sale. In the end the extra effort spent on developing a target market will be beneficial.

A company that has a successful catalogue/mail marketing strategy is L.L.Bean. They only send their catalogues to consumers that have previously purchased from their company in the past. By doing this they are attempting to gain repeat customers and are not wasting their marketing efforts on people with no interest in L.L.Bean.

Vector Marketing has more of a mass marketing approach. They send their advertisements to random mailing lists that consist of high volumes of consumers. They do not segment or target a specific market but attempt to reach the most people as possible. This is un-effective because a majority of the consumers that are exposed to their advertisements are not interested in the product offering.

Q2:

When interpreting the “Variable Averages” table, we were able to determine that more males than females purchased the book because the variable average for gender was closer to 1 than 0. The average amount purchased is $200.916 worth of books. The average frequency of purchases is 12.314 times in the given period. There is an average of 3.199 months since the last purchase. Since the first purchase, customers have been subscribing for an average of 22.576 months. On average, each customer will buy 0.74 children’s books, 0.338 youth books, 0 .760 cook books, 0.391 Do-it-yourself books, and 0.425 art books.

The response (those who did buy) average for gender was lower at .5425...