Mr. Coe, 54, takes the title of senior VP-director of business marketing at Rapp.
Rapp Collins Business to Business will expand from New York to include offices in Chicago, Minneapolis, Dallas, Toronto and Europe. The new unit has no clients yet, but Mr. Coe said he is targeting two Chicago-based companies.
David Scholes, president-CEO of Rapp's New York office, said that "probably 15% to 20% of our billings are business-to-business. There's no reason they couldn't reach 50%."
LARGEST U.S. DM AGENCY
Rapp's current worldwide billings are $1.2 billion, making it the largest U.S. direct marketing agency in 1995, based on worldwide revenues of $174.7 million.
Mr. Coe came in contact with Rapp this year while exploring the possibility of expanding IBM's direct marketing roster with additional large shops such as Rapp.
"Companies are feeling the pain of spending on their sales forces," Mr. Coe said. He cited IBM, which has halved the 34% of revenue once spent on sales efforts.
"The key issue is the integration of the sales force [with the direct marketing effort] inside a company . . . At IBM, it was a very big issue," he said.
Mr. Scholes said that in addition to the formation of a business unit, Rapp would establish additional units for different direct industries during 1997.