SHAPING MARKETS The new playbook for carving out your brand’s niche
WHY WE LOVE CREATIVE DIRECT MAIL FORMATS Graphic designers weigh in on how to use creative formats to stand out.
FEATURED IN THIS ISSUE Extend the reach of your next direct mail piece with Share Mail™.
EXPERT Q&A Strategic marketer Andy Slipher dishes on the real secrets of marketing success.
VOL. 7, ISSUE 6, NOVEMBER/DECEMBER 2017 Brought to you by Shawmut Communications Group
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A BIG IDEA It probably goes without saying that we’d all love to be one of those people with a big idea. The kind that rivals Steve Jobs’ iPhone, Jeff Bezos’ Amazon, or Mark Zuckerberg’s Facebook. Some of us would even settle for a mid-sized idea that would impact the company’s bottom line and our personal bank account. But it seems like there is a widespread belief that big ideas are relegated to a few and are mostly the by-product of luck. The fact is, though, big ideas aren’t hatched by a rare breed of lucky entrepreneurs. Instead, they come from regular people who are willing to ask the right questions and stay open to new ways of looking at the world. To believe that serious creativity doesn’t live within all of us is a cop out.
The biggest difference between Steve Jobs and the rest of us is that he was willing to question generally accepted truths and test his beliefs. There are plenty of people who think the ROI on social marketing is remarkable and that print is tired. But there are some pretty forward-thinking people who would argue that print is the most intimate way to engage outside of human contact. So, whether we’re inventing the next disruptive business model or utilizing the haptics of print, we’re allowed to challenge assumptions. We can examine the importance of asking what’s next and decide to broaden our perspectives. As we begin to turn the page on 2017, we hope to help you ask more questions. And we hope that this issue answers a few. We wish you a year full of questioning and big, big ideas.
Leaders are driven by asking the questions that others have not. They don’t buy into the concept of the status quo and they’re inspired to question age-old assumptions. Finding the next big idea is about fostering a culture of questioning. The truth is that each of us can open our minds to the possibilities of innovation.
Warmest wishes,
Michael Peluso President
Inside this Issue
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4
Point Blank 4 self-inflicted missteps that can land your brand in trouble.
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Shaping Markets The new playbook for carving out your brand’s niche.
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5
Why We Love Creative Direct Mail Formats Our design team weighs in on how to use creative formats to stand out.
Insights Get to know your customers in 2018.
Featured in this Issue Extend the reach of your next direct mail piece with Share Mail™.
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Expert Q&A Strategic marketer Andy Slipher dishes on the real secrets of marketing success.
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POINT BLANK
4 SELF-INFLICTED MISSTEPS THAT CAN LAND YOUR BRAND IN TROUBLE BY LARRY LIGHT
Blockbuster. Remember them? In a time that seems far, far away, the 9,000-store video rental chain seemed to be everywhere. Families would practically camp out to secure the latest releases. But as the industry and world changed, and movie-renting habits evolved, Blockbuster failed to adapt. Did you know that it once declined an offer to partner with an emerging new company called Netflix. Try to find a Blockbuster store today. I dare you. The Blockbuster story isn’t that unusual. Too many brands often fail to recognize the need to adjust to changing markets and circumstances until it’s too late. Standing still while changes rage around you is a formula for failure, plain and simple. But if you employ the right decision making, it’s possible to give your brand a shot to live forever. There are dozens missteps that can land your brand in trouble. Here are four that seem to be the most consistent: 2
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BELIEVING THAT WHAT WORKED YESTERDAY WILL WORK TODAY Customers change, the world changes, brand reputations change and competition changes. Doing what used to work when everything around you is changing makes no sense. Markets and customers change quickly. You must be flexible, agile, and quickly decisive.
FAILURE TO INNOVATE In an ever-changing, increasingly competitive marketing world, brands need customer-insight-driven innovation to stay relevant. Innovations breathe life into brands. It’s important to understand that innovation and improvement are not the same thing. Innovation means doing something different. It doesn’t mean doing the same thing better.
A LACK OF FOCUS ON YOUR CORE CUSTOMER The list of brands that lost focus on the core customer and suffered because of it is way too long. The key is to make sure your loyal customers don’t defect to your competitor. Research shows that loyal customers are eight times as valuable as someone who just considers your brand. Losing a small percentage of core customers will account for a disproportionate amount of lost income. It also will carve into your brand’s image and reputation.
BACKTRACKING TO THE BASICS Brands often talk about “getting back to the basics” when they encounter trouble. But while getting the basics right is necessary, “back to basics” is not a strategy. What got your brand to where it is today will not get it to where it needs to be tomorrow. Instead, part of your strategy must define what basic elements of the your brand’s past is still relevant. Find how it should be kept up to date and how it can be improved. Defining what elements of your brand’s past is no longer relevant. Bad brand behavior has a disastrous effect on your business culture, employee pride and the heart and soul of your brand itself. It needs to be stopped, but stopping it isn’t enough. Your brand also needs to make positive changes if you want it to be truly revitalized. NOVEMBER / DECEMBER 2017
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WHY WE LOVE CREATIVE DIRECT MAIL FORMATS ( AND YOU SHOULD, TOO!) BY ANNALISE OGLE DMA REPORTED RESPONSE RATES 6%
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hen is the last time you received an email and thought to yourself: “Wow, that’s really cool, I should hang onto this!” or “It’s so different, I wonder how they made that?” If you’re like most of us, you haven’t. That’s because the average person receives more than 100 emails per day! On the other hand, I bet you have a pile of direct mail sitting on your desk or some printed pieces tucked away for safekeeping. That’s because print has the unique ability to get noticed. For whatever reason, the printed piece caught your eye. Maybe it was an interesting shape, color, or stock, and you decided it was worth hanging onto. More importantly, you probably remember the brand that sent it to you. That’s the big takeaway for those of us trying to get our message heard. WHY PEOPLE NOTICE DIRECT MAIL Print and direct mail have an advantage over digital communications based on volume alone. The average business professional receives 121 emails per day. In comparison, the USPS Household Diary Study shows that the average consumer only gets an average of 2–3 pieces of mail per day. That’s not a lot of competition in the mailbox, which means better odds for marketers and designers! This might be why direct mail response rates are at an all-time high. According to the 2016 DMA Response Rate report, direct mail has an average response rate of 5.3% for house lists and 2.9% for prospect lists. These are the highest levels the DMA has tracked since 2003. For comparison, in 2015 the rates were 3.7% and 1.0% respectively. 4
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4%
2%
0%
2014
2015 HOUSE LIST
2016 PROSPECT LIST
The physical nature of print also makes it hard to completely ignore, unlike email. Think about it: emails can automatically be sent to the trash (or worse, the dreaded SPAM folder) without anyone ever interacting with it. We set up filters and automation rules to weed out email because the amount we receive is overwhelming. With direct mail, however, even if your piece goes unopened, someone had to physically handle it. They received it, looked at who it was from, and decided whether or not it was worth their time—all while it was in their hands. But don’t misunderstand: I’m not saying that brands should stop sending emails because they still play an important role in our marketing efforts. Email can help strengthen direct mail and other social channels and it’s a great way to follow-up on your direct mail efforts. So how do you ensure your mail actually gets opened, and better yet, remembered? After going through the box of mailers that I’ve hung onto in recent months I noticed a few trends which I’ve outlined below.
USE DIMENSION The Direct Marketing Association defines dimensional mail as a piece that’s more than .75 inches thick. It can be a box, tube, or any unusual shape that makes it 3D and enticing to open. Dimensional mail can often feel like getting a gift, and who doesn’t like that? They can include promotional items or the paper itself can become a pop-up calendar or another item that adds longevity to your mailer. Think about what makes sense for your brand and how you can create an interesting package that gets your message into your customer’s hands. MAKE DIRECT MAIL INTERACTIVE Making your next direct mail piece interactive and fun (if that’s the right tone for your brand) is a great way to create engagement. Whether you use interactive elements on the piece itself (like Shawmut’s recent substrate mailer) or you use mail to connect people to digital communications, make sure your mail piece is more than a one-way flow of information. A recent study from InfoTrends called the Strategy for Growth states that 80% of Millennials want brands to entertain them, and they find direct mail entertaining. Elements like unique opening mechanisms, scratch-offs, interesting folds, and die cuts are just a few examples that can add a sense of entertainment and interaction to your direct mail piece. ENGAGE THE SENSES I know my fellow designers will agree: when you receive a piece of mail that uses a great stock, texture, or embossed element, you are drawn to it. You can’t help but run your fingers over the piece and show your colleagues how cool it is. While these pieces certainly end up in my creative idea stash, they also tell me something about the brand and the value of the product or service they are advertising. It shows me that the company has invested in communicating with me and I automatically place a higher value on their product or service. And when all else remains equal, the “feel” of the direct mail piece often dictates whether I hang onto it or toss it in the trash. These are just a few ideas to help your next direct mail piece be remembered. For more creative inspiration, check out some of our recent projects at www.shawmutdelivers.com/our-work or contact us to talk about your next direct mail project.
FEATURED IN THIS ISSUE Extend the reach of your next direct mail piece with Share Mail™—one of the latest business mail enhancements from the USPS. We’ve included an example of Share Mail on the insert card within this issue of Tactics. It allows the recipient to forward a marketing message through the mail at no cost to them. All they have to do is write in the name and address of the person they want to share it with and drop it in the mail. According to marketing thought leader and author Jay Baer, 92% of consumers
trust recommendations that come from people they know. And in comparison to paid media, word of mouth marketing generates 5x more sales. But until now, marketers had no way of encouraging consumers to share their message through direct mail. Sure it’s easy for customers to share content through social media or to forward an email, but is it generating the same response? The DMA reports that direct mail response rates outperform digital channels by nearly 600%. So make it easy for customers to share your
message through the mail in addition to email and social media. With Share Mail™ you’ll know who shared your message and to whom they sent it because each piece includes an Intelligent Mail Barcode (IMB). It’s a great way to amplify your message— while identifying brand advocates and prospective new customers. Want to try Share Mail™ on your next direct mail project? Contact Shawmut to get started today.
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SHAPING MARKETS BY MICHAEL J. PALLERINO
THE NEW PLAYBOOK FOR CARVING OUT YOUR BRAND’S NICHE
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en years ago, Dr. John McKeon, an emergency medicine physician turned medical entrepreneur, founded Allergy Standards Ltd. (ASL). He created the organization as an international standards and certification body for a wide range of indoor products—bedding, pillows, toys, paint, flooring, humidifiers, washing machines, cleaning products, and cleaning services. Under McKeon’s watchful eye, ASL worked closely with brands like Dyson, Febreeze, Swiffer, Build-a-Bear, LG, 3M, Samsung, Lysol, and Stanley Steemer to determine if their products were asthma and allergy friendly. It was an interesting talking point, to say the least. The goal of each brand, with the help of ASL’s rigorous testing procedures, was to earn the seal of approval of the certified asthma & allergy friendly™ program—a joint venture of ASL and the Asthma and Allergy Foundation of America (AAFA). One of the more interesting stories was that of Stanley Steemer, one of the most recognized brands in carpet cleaning. According to the National Institutes of Health, effective allergen avoidance and control requires vacuuming once or twice a week. And if that wasn’t enough, AAFA recommends that every carpet be cleaned three to four times a year by a certified professional. In a market with so many competitors driving prices to the bottom, Stanley Steemer needed a new approach. With the help of McKeon, Stanley Steemer repositioned its efforts on a new trademarked tagline, “For a Cleaner & Healthier Home.” Moving its research and content push from a focus on traditional cleaning benefits, it pivoted its data and branding on health benefits. Thanks to its asthma & allergy friendly™ Certified App, consumers now shop by scanning barcodes to see which products are suitable for asthma and allergy sufferers. “We spend an estimated 90 percent of our time indoors, where the EPA says air pollution can be four to five times more harmful than outdoors,” McKeon says. “You’ll find trigger factors in almost every room of the home, from dust
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AMBITION AND PURPOSE ARE ABSOLUTELY CRITICAL, BUT MARKET LEADERSHIP IS A LONG JOURNEY OF MANY SMALL STEPS. YOUR PURPOSE AND MISSION HELP YOU DEFINE THE DESTINATION, BUT FOCUS AND SMALL STEPS GET YOU THERE. KEN RUTSKY AUTHOR OF “LAUNCHING TO LEADING”
mite allergens to formaldehyde. Unfortunately for consumers trying to avoid triggers, the terms hypoallergenic and non-allergenic are unregulated, ill-defined, and practically meaningless. Allergy Standards responds with a rigorous, scientific asthma and allergy certification process for a wide range of consumer products and services.” Within McKeon’s words a new approach was born—one that enables companies to shape markets into what customers need. Why wait, right? SHAPING MARKETS BY STARTING FROM WITHIN According to Deloitte’s newly published “Impact Project” study, brands that are able to break away from the pack and influence their market share some common principles in their approach. Chief among them is the idea that leading brands today start with their culture and build outward, resulting in better products, services and a more authentic reputation. Take Siggi’s Dairy, an Icelandic yogurt brand that stayed true to its founder’s commitment to great quality and flavor over expanding at a pace that meant they may have to sacrifice on both. Siggi’s Dairy president Bart Adlam calls this philosophy “slow selling.” “Brands that set a unique, valuesled mission as their North Star are best set to own their categories and shape markets of the future,” says Amy Fuller, senior managing director, Global Brand at Deloitte. “In part, this is driven by the pioneering of their own paths, using proactive leadership to carve out a place in the world, instead of following the status quo.”
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Take for example, Everlane, the online fashion retailer that is relentlessly committed to transparency when it comes to pricing and sourcing of its products. Fuller says the brand works to create meaningful relationships with suppliers, which not only allows them to offer high quality at low prices, but to also improve the lives of workers in markets all throughout Asia. OWNING YOUR MARKET In his book, “Launching to Leading: How B2B Market Leaders Create Flashmobs, Marshal Parades, And Ignite Movements,” Ken Rutsky discusses how and why market leaders succeed in breaking through and leading in today’s crowded markets rather than following. Rutsky, a B2B marketing consultant intent on helping his clients take leadership roles in market development, says that today’s brands don’t so much shape a market, as much as they shape their value to fit strategically into their customer’s world. “By doing this, market leaders control the context of the market conversation,” Rutsky says. “They own the market by connecting their value to the life, challenges, and opportunities of their customers. This is what I call, ‘leading or marshalling your market parade.’ As the cartoon character Pogo said, ‘If you want to be a leader, find a parade and get in front of it.’ Once we do this, we are rewarded with market leadership and our business becomes like a snowball rolling downhill. Everything gets easier. Referrals roll in. Leads convert faster and more frequently to business. Selling becomes easier.”
This strategy has worked for Zicam®, makers of Zicam Cold Remedy. The multi-billion-dollar cold and flu category serves the needs of consumers who typically believe they can resolve these issues without treatment. Zicam is fundamentally different from most products in the market in that it’s designed to shorten the duration of the common cold, rather than just relieve the symptoms for four, six or 12 hours. Getting consumers to understand and appreciate this difference is critical. Often working in concert with some of the biggest brands in the category, Zicam’s value lies in its unique, cold-shortening proposition. Lining up with symptom relievers like Mucinex and NyQuil would mute its message and disappoint its consumer, says M’Lou Walker, CEO of Zicam. “We are different, and we need consumers to understand this,” Walker says. “Creating and shaping our own particular segment of the market enables us to make it clear to the consumer that he or she has the power to shorten a cold. We have found through our research that this message resonates most profoundly with consumers who want to live life to its fullest. And they want Zicam to help them ‘get their better back.’” Walker says the best way to shape a market is to start with a deep understanding of the consumer. Zicam has spent a considerable amount of time researching consumers and listening to a variety of sources on a daily basis to be sure that it always keeps the needs of the consumer front and center. With a unique product proposition and
keen understanding of the consumer, the tactics for shaping the market almost reveal themselves. “We know how our consumer talks about suffering with a cold,” Walker says. “We know where he or she receives messages about products. We know how they shop and what they find bothersome. With that understanding, we’re able to create 360-degree communication vehicles that reach our consumer in their key need state. Whether it’s TV advertising, sampling in airports or engaging with the ColdSense app, the tactics stem from our understanding of our consumer and our products’ unique attributes.” As Rutsky says, focus is everything. “Ambition and purpose are absolutely critical, but market leadership is a long journey of many small steps. Your values and mission help you define the destination, but focus and small steps get you there. Realize that most overnight business successes are really five- to 10-year journeys, as they move from flashmobs, to parades, to a movement.”
BRANDS THAT SET A UNIQUE, VALUES-LED MISSION AS THEIR NORTH STAR ARE BEST SET TO OWN THEIR CATEGORIES AND SHAPE MARKETS OF THE FUTURE. AMY FULLER, SENIOR MANAGING DIRECTOR, GLOBAL BRAND, DELOITTE
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insights
GET TO KNOW YOUR CUSTOMERS IN 2018 How well do you know your customer? Do you really
1. Who is your target buyer?
understand their likes, dislikes or the challenges they face
2. In what kind of company or industry do they work?
on any given day? These are important things to know.
3. What are their characteristics? Age? Job title/role?
And there’s more. The solution is simple–just ask.
4. What does a typical day look like?
As you prepare your game plan for 2018, take some time
5. What are their priority initiatives?
to reacquaint yourself with your customers. Following
6. What are the typical challenges they face?
are nine simple questions you can ask, complements of Smartbrief, to help craft or revise your mission statement
7. Where is the gap in their needs and wants, beyond your products and services?
and guide future marketing initiatives:
8. Where are they in the purchasing funnel? 9. Why should they care about you?
THE MARK OF GREATNESS INSIDE THE QUALITIES OF EFFECTIVE CMOS So, you want to be a master marketer? If you’re looking to drive your brand’s vision, there are certain attributes you need. According to CMO Insights’ “The CMO Survey,” 16.3 percent say the most important quality/ability is to be the voice of your customer at the leadership table. The report was based on data from 349 U.S. senior marketers.
Here’s a look at the leading qualities you should have:
16.3% Be the voice of the customer at the leadership table
Have an enterprisewide business mindset and understanding
14.5%
11.4%
7.2%
Have the ability to demonstrate the quantitative impact of marketing efforts
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Have direct sales/ customer-facing experience
15.1%
Have significant input to the budgeting and strategic planning process
WORDSMITH SURVEY IDENTIFIES HOW CONTENT INFLUENCES THE PURCHASING DECISIONS
62 %
Your words matter. Content matters. Today’s business leaders are searching for content that speaks to them. They want information that addresses their specific needs and pain points and educates rather than sells thats on a product or service. That’s why more than 89 percent of B2B marketers say they are creating and distributing relevant and consistent content to build their audience and drive sales, according to “How Content Influences the Purchasing Process” by the SmartBrief and the
57 %
Content Marketing institute. The survey queried more than 1,200 senior business leader across 18 industry verticals. Here’s a look at the five most important qualities of content they reviewed in their purchasing-decision processes.
33 % Shows me how others have benefited in some way by using the product/service
Speaks to my specific needs and/or pain points
43 % Provides product/service specifications Is more educational than promotional in nature
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ON THE RISE CONTENT MARKETING STRATEGIES PAYING OFF AS MARKETERS INCREASE PLAY OKAY, content marketing isn’t sneaking up on anybody anymore. It is no longer the new kid on the marketing block and brands aren’t asking how they should do it, but how big to go. According to “B2B Content Marketing 2018: Benchmarks, Budgets and Trends, North America” report, 78 percent say improved quality and focus have led to greater content marketing success. The report by Brightcove, the Content Marketing Institute and MarketingProfs, shows that more than 70 percent can demonstrate, with metrics, how content marketing has increased audience engagement and leads.
HERE ARE THE TOP FACTORS DRIVING THEIR IMPROVED CONTENT MARKETING SUCCESS:
Higher Quality Content
Improved Content Strategies Better Targeting And Distribution
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Content Being Considered A Higher Priority
Plan To Increase Their Content Marketing Budget In 2018
Trending with... Define today’s marketing landscape. Today’s marketing landscape is challenging, to say the least. There is the increasing power in the hands of customers; the quickening of expected turnaround and response cycles; the overwhelming number of media options and channels available to marketers; the deceptive idea that greater data availability automatically means better marketing and the increasing pressure on marketers to measure and produce a positive ROI. The common culprit is technology. Technology is what has driven all of the change in marketing in the last 100 years. We’re in an age, at present, where the technological change is dizzying. What is the biggest challenge marketers face? Whether they know it or not, the biggest challenge is knowing how they’re going to sustain a competitive edge and keep sales up. This may not be much different than with marketers in the past. But today’s marketer must now be able to pivot faster and manage an even greater number of executional options—i.e., media—than ever before. It’s one thing to determine a goal. It’s quite another to determine what path one needs to take to reach that goal. Do you think brands are too distracted today? In general, yes. Brands are now getting into the business of managing brands versus delivering value. This is not inconsequential, but it pushes to the forefront priorities that should not be of primary focus. It’s as if the process and the practice of image and reputation management—via media—has begun to outweigh its original purpose. Along the same line is brands playing politics and cause ambassadorship—which is, at most, a mistake and, at minimum, another distraction.
Strategic marketer Andy Slipher dishes on the real secrets of marketing success
A
ndy Slipher believes that the secret to success in marketing – or anything, really – is in the steps that you take. Keep in step with your customers and one step ahead of your competitors and you’ll be able to strategically see the playing field spread out in front of you. That’s the approach he drills into his clients, which include the likes of Coca-Cola, Verizon Wireless, Procter & Gamble, Jimmy Dean Foods, Honda Motor Company, Travelers Insurance, and scores of others. The founder of Slipher Marketing says the process is all about removing distractions and then making pivotal choices. In the end, what matters are your customer, the challenge, and the potential to be compelled by an explicit promise. We sat down with the author of the forthcoming book, “The Big How: Where Strategy Meets Success,” to get his take on what today’s consumers are really looking for. What are the key marketing strategies every brand should employ? I’m in the business of strategic planning, but I’m not in the practice of recommending blanket strategies. That’s the point of strategy—it defines a very particular way through for a specific problem or set of challenges. I want to be clear on that point. One recommendation I would have to any marketing team or brand manager is to get clear on your brand promise. Is it meaningful? Is it resonant? Does it have a person or persons in mind? These questions are all questions that should be asked and answered as part of any strategic marketing planning process. What is the best advice you could offer marketers today? My best advice for anyone trying to manage the marketing landscape today is three fold. No. 1: Get clear on your marketing problems and challenges. Face them. If it’s a true problem, it’s never going to be easy. Get used to this
idea. No. 2: Commit to planning your marketing before you do anything with media. If you want to be more effective, stop pursuing media tactics first. No. 3: Embrace a strategy for your marketing, and be ready to choose and make sacrifices. Choice is a key element in any good strategy, and it’s the thing many marketers find hardest to do—to not try and be all things to all customers. What does the future of marketing look like? Marketing will continue to be heavily influenced by breakthroughs in communication and technology. Brands will be less in control of their reputations than ever. Instead, it will fall much more to the court of public opinion. Consumers will continue to amass power, influence and the ability to determine—more immediately than ever—the success or failure of brands. Finally, value delivery will continue to dominate. In the end, it will still be about the delivery of value to the buyer.
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Shawmut Communications Group 33 Cherry Hill Drive, Danvers, MA 01923 www.shawmutdelivers.com
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