Download Direct-Response Advertising Direct-response advertising is a form of

CHAPTER 11
Direct-Response Media
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Copyright © 2009 Pearson Education Canada
Learning Objectives
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
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.
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Direct-Response Advertising
Direct-response advertising is a form of
media advertising that communicates
messages directly to prospective
customers.
Marketer
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Media
Customer
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Direct-Response Advertising
Direct-response advertising plays a
major role in influencing consumer
purchase patterns.
Direct-response delivers bottom-line results
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Trends Affecting DirectResponse Advertising
Factors effecting direct-response’s
popularity:
Rise of video sites (e.g., YouTube)
Increase of infomercials
Targeting capabilities (databasemanagement)
Measurement devices (customer-relationship
management programs – CRM)
Ability to account for all dollars spent
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Direct-Response Advertising
Advertising through any medium
designed to generate a response, by
any means that is measurable.
 Direct Mail
 Direct Response Television
 Direct Response Print
 Telemarketing
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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
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Direct Mail
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
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Direct Mail Strategies
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Solo
Direct Mail
Individually
prepared offers
sent directly to
prospects
Co-operative
Direct Mail
Special offers from
non-competing
products in one
envelope
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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…
11-10
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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.
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Advantages and
Disadvantages of Direct Mail
Advantages
 Audience selectivity
Disadvantages
 High cost per exposure
 High reach
 Absence of editorial
 Geographic flexibility
support
 Creative flexibility
 Distribution of Incentives Image and life span
 Advertiser Control
Potential
delivery
delays
 Exclusivity
 Measurability
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Buying Direct Mail
There are three basic steps involved
in buying direct mail:
1. Obtaining Direct Mail Lists
2. Production
3. Distribution
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Obtaining Direct Mail Lists
Lists of names are obtained from internal
and external sources.
Internal
 Customer database—a house list
 Development of prospects
External
 List Brokers
 Merge / Purge
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Types of Lists
Specialized quality lists cost more.
Names are bought on a CPM basis.
Lists available include:
 Response Lists
 Circulation Lists
 Compiled Lists
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Direct-Response Television
There are three forms of direct
response television:
1. 60-second or longer commercials
2. Infomercials
3. Direct home shopping

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In each case, the use of toll-free
telephone numbers, websites, and credit
cards makes the purchase more
convenient for the viewer.
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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
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Direct-Response Television
Direct response commercials are classified
based on the intent of the ad.
Traditional
Corporate
or Brand
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“Buy now”or “Limited time
offer.” Immediate action is
the goal.
Establish leads, drives retail
traffics, create awareness,
and build image (longer
term strategy).
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Direct Home Shopping
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 convenience
The medium lacks glamour, but don’t
underestimate its sales potential.
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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
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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)
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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
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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.
Call
Centre
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Inbound
Outbound
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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.
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 As future marketers, what is your position with regards
to telemarketing?
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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.
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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
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