1. Copyright © 2012 Pearson Canada Inc. Chapter 11 Direct Response Media 11-1

2. Copyright © 2012 Pearson Canada Inc. 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. 11-2

3. Copyright © 2012 Pearson Canada Inc. Direct-Response Advertising  Direct-response advertising “asks for the order” (or other explicit action) in the same communication which presents the offer to prospective customers.  Direct Mail  Direct Response Television  Direct Response Print  Telemarketing 11-3

4. Copyright © 2012 Pearson Canada Inc. Trends Affecting Direct- Response Advertising  Need for accountability in advertising spending  Targeting capabilities through customer-relationship management programs – CRM  Diversion of ad dollars from traditional TV and print media for many reasons previously discussed  The rise of social media sites like YouTube and Facebook 11-4

5. Copyright © 2012 Pearson Canada Inc. 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 economically 11-6

6. Copyright © 2012 Pearson Canada Inc. Direct Mail Mail is the most common form of direct- response advertising. Options include:  Sales Letters  Leaflets and Folders  Order Forms  Statement Stuffers  DVDs 11-7

7. Copyright © 2012 Pearson Canada Inc. Advantages of Direct Mail  Audience selectivity  High reach  Geographic flexibility  Creative flexibility  Distribution of Incentives  Advertiser Control  Exclusivity  Measurability 11-11

8. Copyright © 2012 Pearson Canada Inc. Disadvantages of Direct Mail  High cost per exposure  Absence of editorial support  Image and life span  Potential delivery delays 11-12

9. Copyright © 2012 Pearson Canada Inc. Buying Direct Mail There are three basic steps involved in buying direct mail: 1.Obtaining Direct Mail Lists 2.Production 3.Distribution 11-13

10. Copyright © 2012 Pearson Canada Inc. 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  Geomapping 11-14

11. Copyright © 2012 Pearson Canada Inc. Types of Lists Specialized quality lists cost more. Names are bought on a CPM basis. Lists available include:  Response Lists  Circulation Lists  Compiled Lists 11-15

12. Copyright © 2012 Pearson Canada Inc. Direct-Response Television Forms of direct response television: 1.Short form (120 seconds or less) 2.Long form or Infomercials (30 or 60 minutes) 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. 11-16

13. Introducing “Vince Slap Chop” http://www.youtube.com/watch?v=rUbW jIKxrrshttp://www.youtube.com/watch?v=rUbW jIKxrrs This spot has spawned many takeoffs all of which also promote the brand Copyright © 2012 Pearson Canada Inc.

14. Direct Home Shopping Cable television channels (i.e.The Shopping Channel) offer products for sale by broadcast message.  Product messages presented by close-up shots  Ordering details presented frequently  Provides shopping convenience  The medium lacks glamour, but must not be underestimated for its sales potential. 11-18

15. Copyright © 2012 Pearson Canada Inc. Direct-Response Print It’s common for advertisers to communicate direct-response offers through newspapers and magazines.  Generate leads for future marketing programs  Drive prospects to a website or social media page  Get prospects to take action immediately 11-19

16. Copyright © 2012 Pearson Canada Inc. 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) 11-20

17. Copyright © 2012 Pearson Canada Inc. 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 11-21

18. Copyright © 2012 Pearson Canada Inc. Inbound/Outbound Telemarketing  Inbound – receiving calls by order desk, customer inquiry, and direct–response calls often through 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 Call Centre Outbound Inbound 11-22

19. Copyright © 2012 Pearson Canada Inc. 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. 11-24

20. Copyright © 2012 Pearson Canada Inc. Strategic Considerations for Telemarketing Scripting plays a significant role in the success of a telemarketing campaign:  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 11-25