1. 11-1 Copyright © 2009 Pearson Education Canada CHAPTER 11 Direct-Response Media

2. 11-2 Copyright © 2009 Pearson Education Canada 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.

3. 11-3 Copyright © 2009 Pearson Education Canada Direct-Response Advertising Direct-response advertising is a form of media advertising that communicates messages directly to prospective customers. Customer MarketerMedia

4. 11-4 Copyright © 2009 Pearson Education Canada Direct-Response Advertising Direct-response advertising plays a major role in influencing consumer purchase patterns.  Direct-response delivers bottom-line results

5. 11-5 Copyright © 2009 Pearson Education Canada Trends Affecting Direct- Response Advertising Factors effecting direct-response’s 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

6. 11-6 Copyright © 2009 Pearson Education Canada 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-Response Advertising

7. 11-7 Copyright © 2009 Pearson Education Canada 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

8. 11-8 Copyright © 2009 Pearson Education Canada 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

9. 11-9 Copyright © 2009 Pearson Education Canada Direct Mail Strategies Solo Direct Mail Solo Direct Mail Individually prepared offers sent directly to prospects Co-operative Direct Mail Co-operative Direct Mail Special offers from non-competing products in one envelope

10. 11-10 Copyright © 2009 Pearson Education Canada 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. 11-11 Copyright © 2009 Pearson Education Canada 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.

12. 11-12 Copyright © 2009 Pearson Education Canada  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

13. 11-13 Copyright © 2009 Pearson Education Canada There are three basic steps involved in buying direct mail: 1.Obtaining Direct Mail Lists 2.Production 3.Distribution Buying Direct Mail

14. 11-14 Copyright © 2009 Pearson Education Canada 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

15. 11-15 Copyright © 2009 Pearson Education Canada Specialized quality lists cost more. Names are bought on a CPM basis. Lists available include:  Response Lists  Circulation Lists  Compiled Lists Types of Lists

16. 11-16 Copyright © 2009 Pearson Education Canada 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

17. 11-17 Copyright © 2009 Pearson Education Canada 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

18. 11-18 Copyright © 2009 Pearson Education Canada  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). Traditional Corporate or Brand Corporate or Brand Direct-Response Television

19. 11-19 Copyright © 2009 Pearson Education Canada 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. Direct Home Shopping

20. 11-20 Copyright © 2009 Pearson Education Canada 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

21. 11-21 Copyright © 2009 Pearson Education Canada 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)

22. 11-22 Copyright © 2009 Pearson Education Canada 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

23. 11-23 Copyright © 2009 Pearson Education Canada 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 Call Centre Outbound Inbound

24. 11-24 Copyright © 2009 Pearson Education Canada 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?

25. 11-25 Copyright © 2009 Pearson Education Canada  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

26. 11-26 Copyright © 2009 Pearson Education Canada 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