Direct-Response and Internet Advertising Chapter 13 Direct-Response and Internet Advertising

Direct Response Pros Potential to reach any prospect Measurable medium Allows advertisers to personalize their messages

Direct Response Cons High cost per contact Prospect lists must be updated. Privacy issues

Exhibit 13.1

The Internet Pros Inexpensive, quick, easily available Ultimate research tool Most flexible media

The Internet Cons Still in its infancy Many consumers still reluctant to use Sheer number of sites

More effective cross-selling and up-selling Customer relationship management, software, and the Internet achieve the following: More effective cross-selling and up-selling Higher customer retention and loyalty Higher customer profitability Higher response to marketing campaigns More effective investment of resources

Exhibit 13.3 Ads can drive customer traffic to a website for more information.

Guidelines for Legitimate Email Marketing Use honest subject line. Include valid email and physical addresses. Clearly identify subject to sender. Option for consumers to opt out Name removals must be prompt. Brands or products must offer options for removal from list.

Guidelines for Legitimate Email Marketing (continued) Not acquire email address through automated systems Not provide email lists to unrelated third parties Provide senders privacy policy in the body of the email or via a link.

Disintermediation Potential of online technology eliminating most of the distribution channel by having manufacturers deal directly with consumers

Internet Dayparts Early morning (Monday–Friday, 6 A.M.–8 A.M.) Daytime (Monday–Friday, 8 A.M.–5 P.M.) Evening (Monday–Friday, 5 P.M.–11 P.M.) Late night (Monday–Friday, 11 P.M.–6 A.M.) Weekends (Saturday–Sunday, all day)

Uses of Internet and Commercial Websites Source of direct sales Source of advertising-supported communication Source of marketing and promotion information

Pros of Facebook Advertising -Ads can help you grow your online channels faster. -Thanks to Facebook’s Power Editor, you can target very specific audiences, even more so than you can with your regular posts. -Ads can help you grow your online fan base or bring traffic to your website, but with promoted posts you can increase the reach among your current fans.

Cons of Facebook Advertising -While Google Adwords’ click through rates are around 2% on average, click through rates for Facebook advertising are a lot lower. -Social media’s main goal is networking, not selling; people are not on Facebook because they want to buy your product. -Advertising overload causes people to stop paying attention to ads – clutter.

QR Codes –Quick Response Add them to any print advertising, flyers, posters, invites, TV ads, etc containing: Product details Contact details Offer details Event details Competition details A coupon Twitter, Facebook, MySpace IDs A link to your YouTube video

Other Internet Based Advertising

Other Internet Based Advertising

Other Internet Based Advertising

Other Internet Based Advertising

Major Advantages of Direct Response It is targeted communications Direct response is measurable The message of direct response is personal

The Direct Response Industry Forms Telemarketing Catalogs Inserts Coupons Direct television and radio Direct and dimensional mail

Exhibit 13.9 Direct mail catalogs

Telemarketing Personal and flexible Outbound and telemarketing (seller calls) Inbound telemarketing (customer calls)

Forms of DRTV 30-second format with tag line Two- or three-minute commercial Infomercial

Advantages of DRTV Shows the product in use Creates excitement for a product Offers immediate results Complements retail sales Tests various product benefits and measures sales response

Radio and Direct Response Suffers from its lack of visualization Effective at delivering 800-numbers and web addresses

Magazines and Direct Response Able to reach a targeted group of readers with common: Interests Demographics Vocations Prestige associated with national publications

Exciting creative execution Reach a targeted group of prospects Keys To the Successful Process of Moving a Person from a Prospect to a Buyer Right product Exciting creative execution Reach a targeted group of prospects Fulfillment and customer service Selling does not end with a single purchase.

Organizations Involved in the Direct Mail List Process List brokers List compilers List managers Service bureaus Lettershop (mailing house) Response lists

Exhibit 13.10a Retailers use direct mail.

Exhibit 13.10b Retailers use direct mail.

Primary Print Alternatives Package inserts Ride-alongs Statement stuffers Ticket jackets Cooperation (joint) mail advertising