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B-114874 1 (1974-06-25)

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                      t    6. t. h e4.4C.
                   COMPrTROLLER GENERAL     ITE   TES
                            WASHINGTON, D.C. 20548


   B-114874                        RELEASED            Jiu 251974



4 The Honorable Alan Cranston
  United States Senate

  Dear Senator Cranston:

        Your letter of November 15, 1973, requested that we investigate
  several areas of the opegaif s~oX.h te Uite d.State. P~atarvice.  _
  It was agreed that separate reports would be issued as our work on
  the various matters was completed. This report deals with the need
  for the Service's $3. 1nAilUlo      jdvg caaigiI expaining its serv-
  icjes.

        By agreement with your office, our work was limited to obtaining
  information on the program, the Service's plans for evaluating its ef-
  fectiveness, and our observations on the program.

  DESCRIPTION OF THE PROGRAM

        On October 23, 1973, the Service launched a nationwide advertis-
  ing program to answer questions of major public interest about postal
  services and to provide information to postal customers qq how to use
  p<q~stLalpr oucts and services to their best advantage. The campaign,
  according to Service'6fficials, was not intended to raise revenues.

        The program provides for running advertisements in all daily
  newspapers printed in the 323 cities that have Postal Service Sectional
  Center Facilities- -a mechanized mail-handling facility for processing
  incoming and outgoing mail for peripheral local post offices in a desig-
  nated service area. In cities having newspapers with a daily circu-
  lation of 100, 000 or more copies, the plan is to run 12 insertions in
  each such paper during fiscal year 1974. In cities having newspapers
  with smaller circulations, the plan is to run six insertions.

       Needham, Harper & Steers Advertising, Inc., is providing the  12/
  advertising services. An existing contract with that firm was modi-
  fied by increasing the funding by $3, 835, 000 for the cost of the pro-
  gram. Media costs are expected to account for $3, 435, 000 of the
  total program expense.

        The advertising campaign was prompted by the results of a study
  conducted for the Service by Burke Marketing Research, Inc., and
  complaints received about service from postal users. As part of the
  Burke study, respondents were asked about the job being performed by
  both the Service and, as a comparison, the telephone company in pro-
  viding general information to the public about the use of their services



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