11-1 copyright © 2009 pearson education canada chapter 11 direct-response media

11-1 Copyright © 2009 Pearson Education Canada

CHAPTER 11

Direct-Response Media


Learning Objectives

Describe the various types of direct-response advertising

Explain the advantages and disadvantages of the various forms of direct-response advertising

Assess the factors considered in, and procedures used for, buying direct mail

Assess the strategies for delivering effective media messages via direct-response techniques.


Direct-Response Advertising

Direct-response advertising is a form of media advertising that communicates messages directly to prospective customers.

CustomerMarketer Media



Direct-response advertising plays a major role in influencing consumer purchase patterns.Direct-response delivers bottom-line results


Trends Affecting Direct-Response Advertising

Factors effecting direct-response’s popularity:

Rise of video sites (e.g., YouTube)Increase of infomercialsTargeting capabilities (database-management)

Measurement devices (customer-relationship management programs – CRM)

Ability to account for all dollars spent


Advertising through any medium designed to generate a response, by any means that is measurable.

Direct Mail Direct Response Television Direct Response Print Telemarketing



Direct Mail

The use of direct mail is widespread due to:the ability to personalize the message with the prospect’s name

the ability to send lengthy messages

the ability to provide a high degree of geographic coverage commercially


Mail is the most common form of direct- response advertising. Options include: Sales Letters

Leaflets and Flyers

Folders

Statement Stuffers

DVDs, Videocassettes, and CD-ROMS

Direct Mail


Direct Mail Strategies

SoloDirect Mail

SoloDirect Mail

Individually prepared offers sent directly to

prospects

Co-operativeDirect Mail

Co-operativeDirect Mail

Special offers from non-competing products in one

envelope


Direct Mail as an Advertising Medium

Direct mail was avoided by packaged-goods companies, banks and financial institutions, and automobile manufacturers for a long time due to the negative images associated with it.

Now these companies are among the largest users of direct mail

Ideal medium for building a relationship with current customers

Continued…


Direct Mail as an Advertising Medium (cont.)

Research indicates 84% of people will open a direct mail piece if their name is on it

77% are likely to read direct mail if addressed to them.


Audience selectivity

High reach Geographic flexibility Creative flexibility Distribution of Incentives

Advertiser Control

Exclusivity

Measurability

High cost per exposure

Absence of editorial

support

Image and life span

Potential delivery delays

Advantages Disadvantages

Advantages and Disadvantages of Direct Mail


There are three basic steps involved in buying direct mail:

1. Obtaining Direct Mail Lists

2. Production

3. Distribution

Buying Direct Mail


Lists of names are obtained from internal and external sources.

Internal Customer database—a house list Development of prospects

External List Brokers Merge / Purge

Obtaining Direct Mail Lists


Specialized quality lists cost more. Names are bought on a CPM basis. Lists available include:

Response Lists

Circulation Lists

Compiled Lists

Types of Lists


There are three forms of direct response television: 1. 60-second or longer commercials

2. Infomercials

3. Direct home shopping

In each case, the use of toll-free telephone numbers, websites, and credit cards makes the purchase more convenient for the viewer.

Direct-Response Television


Types of Direct-Response Television (DRTV) Advertising

There are two types of DRTV advertising:Short-form

Vary in length from 15-120 seconds

Long-form

Commonly referred to as infomercials

May last 30-60 minutes

Include characters and follow a script


Direct response commercials are classified based on the intent of the ad.

“Buy now”or “Limited time offer.” Immediate action is the goal.

Establish leads, drives retail traffics, create awareness, and build image (longer term strategy).

TraditionalTraditional

Corporate or Brand

Corporate or Brand

Direct-Response Television


Cable television channels (TSC – The Shopping Channel) offer products for sale by broadcast message.

Product messages presented by close-up shots

Ordering details presented frequently

Provides shoppers convenienceThe medium lacks glamour, but don’t underestimate its sales potential.

Direct Home Shopping


Direct-Response Print

It is common for advertisers to communicate direct-response offers through newspapers and magazines.Field leads for future marketing programs

Chanel prospects to a website

Get prospects to tale action immediately


Inserts

Another direct-response print media alternative is the insert.A single- or multiple-page document inserted loosely or stitched directly into a publication.

It can be strip-glued (a gum-like glue) or placed as a tip-in (place an ad and then attach the insert on top of the ad)


Telemarketing

Much telemarketing activity is conducted through call centres.A call centre is a central operation that handles all inbound and outbound calls.

Two types of telemarketing:

Inbound telemarketing

Outbound telemarketing


Inbound/Outbound Telemarketing

Inbound – the reception of calls by the order desk, customer inquiry, and direct –response calls often generated through the use of toll-free 1-800 or 1-888 numbers

Outbound – calls that a company makes to customers to develop new accounts, generate sales leads, and even close a sale.

CallCentre

CallCentre

OutboundOutbound

InboundInbound


Consumer’s Right to Privacy

In 2005, the federal government passed “do-not-call” legislation to further protect unwanted phone calls. Below are more details on the CMA’s privacy code.

As future marketers, what is your position with regards to telemarketing?


Telemarketing is cost efficient. It is much less expensive than personal selling and mass advertising.

Proper training and preparation of representatives is crucial.

The message delivered is as important as the medium itself.

Telemarketing


Strategic Considerations for Telemarketing

Scripting plays a significant role in the success of a telemarketing campaign. Here are some basic tips for the telemarketer:

Focus on the relationship

Adjust the script approach for your audience

Empathize with the receivers

Establish rapport and gain attention quickly

Keep it short and simple

Be prepared

Make it easy to say yes

11-1 copyright © 2009 pearson education canada chapter 11 direct-response media

Documents

use of direct mail

direct mail piece

advertising medium direct

directresponse techniques

directresponse media

pearson education canada

cdroms direct mail slide

various types of direct