Direct-Response Advertising
Promotional method in which a
prospective customer is urged to
respond immediately and directly to the
advertiser, through the use of a 'device'
provided in the advertisement.
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-responses
popularity:
Rise of video sites (e.g., YouTube)
Increase of infomercials
Targeting capabilities (database-
management)
Measurement devices (customer-relationship
management programs CRM)
Ability to account for all dollars spent
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
Direct Mail
The use of direct mail is widespread due
to:
the ability to personalize the message with the
prospects name
the ability to send lengthy messages
the ability to provide a high degree of
geographic coverage commercially
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
Direct Mail Strategies
Solo
Solo Individually
Direct prepared offers
Direct Mail
Mail sent directly to
prospects
Co-operative Special offers from
Co-operative
non-competing
Direct
Direct Mail
Mail 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.
Advantages and
Disadvantages of Direct Mail
Advantages Disadvantages
Audience selectivity 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
Buying Direct Mail
There are three basic steps involved
in buying direct mail:
1. Obtaining Direct Mail Lists
2. Production
3. Distribution
Obtaining Direct Mail Lists
Lists of names are obtained from internal
and external sources.
Internal
Customer databasea house list
Development of prospects
External
List Brokers
Merge / Purge
Direct-Response Television
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.
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 Television
Direct response commercials are classified
based on the intent of the ad.
Buy nowor Limited time
Traditional
Traditional offer. Immediate action is
the goal.
Corporate Establish leads, drives retail
Corporate
traffics, create awareness,
or Brand
or Brand
and build image (longer
term strategy).
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 dont
underestimate its sales potential.
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.
Inbound
Inbound
Call
Call
Centre
Centre
Outbound
Outbound
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.
