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Today's catalog marketing executives need a specialized set of skills.

By Nadherny, Chritsopher C.
Publication: Direct Marketing
Date: Wednesday, January 1 1997

Thanks to the availability of Sophisticated databases, online services and advanced printing technologies, the catalog marketing field has expanded and evolved dramatically in recent years

As consumers increasingly find their mailboxes filling with catalogs from specialty products to department

stores, it's time to recognize the changes competition has brought to the catalog industry.

Thanks to the availability of sophisticated databases, online services and advanced printing technologies, the catalog marketing field has expanded and evolved dramatically in recent years. Catalog clutter has increased, new distribution channels are emerging, paper and postage costs continue to increase, and consumers are more preoccupied than ever. This has put growing pressure on senior level executives to develop a broad base of more sophisticated skills to help their companies maintain a competitive lead.

Businesses that rely exclusively on catalogs as the major means of marketing face some of the highest levels of competition in the retail world. Success at the executive level depends upon careful planning and the development of skill sets specific to catalog marketing.

In searching for candidates for key senior positions in a catalog-driven organization, hiring executives should seek out those who possess both depth and breadth of general direct marketing experience. This experience is best achieved through exposure to product management, list selection, copy development, database development and analysis, back-end operations and responsibility for increasingly large marketing budgets.

Beyond mastery of functional disciplines and operating issues, today's "ideal" catalog executive candidate must also display a high level of proficiency in the following areas:

* Strategic leadership. This is a capability developed over time, and a quality so basic it's often considered a "given" in any direct marketing-oriented executive search. It is essential for senior level executives to have depth and breadth of industry knowledge, combined with a solid vision for the future, that allows them to anticipate change and position their organizations accordingly.

However, knowing which markets to serve and which products to market is far from simple. It encompasses a knowledge of marketing techniques and distribution channels. It involves the ability to decide whether the database is sufficient, or whether the customer service support is adequate. Strategic leadership means possessing a total business focus - the ability to identify the appropriate application of the tools at hand, put a plan into action and maximize return to the organization.

These elements make it important for marketers climbing the ranks to hone their knowledge in their particular areas of expertise while also exposing themselves to all other aspects of the business. Without this cross-functional exposure, mid-level marketers will not be able to build the track record necessary to break into the executive ranks of the catalog business.

* Interpersonal skills. True leaders not only have the vision and strategic mindset to propel their companies into the future, but have a successful track record of being able to direct and motivate teams drawn from a variety of disciplines.

The culture of today's catalog business is becoming more team-oriented with companies reengineering and flattening their hierarchy structures. The more forward-thinking organizations strive to foster a sense of ownership among team members. In this environment, the executives increasingly in demand are those who can effectively communicate an organization's vision, mission and future to employees. Because the catalog industry hasn't been immune to the reengineering thrust that has removed layers of management - and manpower - from the organization, it is imperative that senior executives foster a unity among employees. One person simply can't do it all, which is why the team approach is so effective. Guidance and support are necessary to help teams accomplish their tasks.

By the same token, empowerment has become an important element in the catalog industry. The more responsibilities that can be handed down to rising employees, the more productive the organization will be. Executives who are skilled in motivating others proactively gather input from employees to further enhance company performance.

* Positioning Skills. As catalog marketing grows increasingly prevalent, companies must differentiate their products from others with similar items. Marketers must know precisely how they are going to get their products noticed. An underlying issue that catalog executives need to constantly address: "What is our position in the marketplace and how are we going to maintain it?" This comes down to recognition of the importance of corporate image and the necessity to constantly be building, differentiating and communicating that image to their audience.

* Financial savvy. A solid grounding in financial management issues is essential for executives in any product line that is marketed through catalogs. Typically, executives within the industry are working with lower margins stemming from competitive pricing strategies combined with external cost pressures due to rising paper and postage costs, as well as the high cost of acquiring new customers. Balancing these various pressures to turn a profit requires a higher level of financial acumen than might have been the case when catalog marketing was less competitive.

* Technological expertise. A thorough familiarity with information technology is crucial in helping to project consumer response and gain insight in today's increasingly segmented customer groups. This entails more than knowing the basics of existing technology. It requires leaders to embrace new and alternative ways to segment the database and identify future customers and to seek out those who know how to create knowledge from computer databases.

For example, executives should be willing to embrace the business implications of the Internet and other emerging market-oriented technologies. Experts suggest, by the year 2000, the Internet will be a major force behind the catalogs and the retail and manufacturing industries as well. Direct marketing companies will have an advantage over competing industries if their management encourage the melding of their current knowledge and skills of today's databases with the capabilities of the future the Internet will bring.

* Dedication to customer service. The catalog industry has raised its standards of performance. Customers are less inclined to accept mediocre quality and indifferent service. Companies that don't deliver great service won't last in this competitive marketplace. A strong customer service support structure is crucial in order to meet the customer's high expectations and build repeat business. It's important to remember that the catalog industry virtually eliminates the middle-man - the retailer - and that's why a quality customer relations program is so essential. Highly sought after catalog general managers have the strategic mind-set and the tactical skills required to put such a structure in place.

For example, the automation of order fulfillment is currently being studied by catalog marketers as a means of getting customer purchases out faster and less expensively. Managers who understand the nuances to these and other developments and can justify the costs versus the customer service benefits will enhance their personal value to the organization.

What ties these essential skills together is the results-oriented nature of catalog marketing. As executives mature in their careers, they should recognize that all these skills and capabilities interplay, and careers are best nurtured by gaining exposure to as many facets of catalog marketing as possible if they're going to stay on the senior executive track.

Christopher C. Nadherny is a senior director and partner of Spencer Stuart, an executive search firm operating globally in 37 cities. Based in the Chicago office, he specializes in the recruitment of senior level executives for consumer product and service companies as well as business-to-business operations. He is the founder of Spencer Stuart's direct marketing practice segment.

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