1. Developing & Utilizing Electronic Media
Chapter 7
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Please Note:
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Opening Vignette
Smithfield Foods
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4. Forms of Electronic Media
Television
Radio
Telephone
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Broadcast Facts
Most universal of all media
There are more radios than people in the U.S.!
Virtually every American household has at least one television
Over 84% of U.S. homes have cable
Average TV is “on” for 6 hours per day
TV is still the primary source for news
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6. Broadcast Media Spending on Direct Response Advertising
In 2007, all direct response advertising spending amounted to $173.2 Million
DR Television spending = $22.8M
DR Radio spending = 5.0 M
DR Television and Radio spending amounted to $27.8M in 2007, or 16% of all DR advertising spending
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Television
A measurable and accountable means of advertising
Provides immediate response
Special-Interest channels have allowed an increase for market segmentation
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Market Segmentation
Who are the viewers?
2 types: entertainment vs. information
How receptive are they to a direct offer?
It depends!
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9. Measurements of Advertising Response
Gross Rating Points (GRP) – used as a measure for “general” advertising
Areas of Dominant Influence (ADI) – also considered by “general” advertisers
Cost Per Response (CPR)
Response vs. recall! Best for direct marketers
Direct marketers must always relate advertising results to advertising costs!
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Cost Per Response
Formula to calculate “cost per response”
CPR = Total Promotion Budget_________
Total No. of Order/Inquiries Received
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11. How TV Is Used In Direct Response Advertising
1. To Sell Products
2. To Get Inquires
3. To Give Support to Other Media
Length varies based on use!
Infomercials – great for Direct Marketing
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12. Common Types of Businesses Using Infomercials
Common Types of Businesses Using Infomercials
Business Opportunity
Beauty
Health and Fitness
Household
Entertainment
Kitchen
Not for Profit
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13. Using Television Advertising
Advantages
Provide a wide choice of cost alternatives
Quick responses
Large impacts in short time periods
Disadvantages
Short-lived responses
High cost to produce and place TV ads
Limited time
Lack of tangible response devices
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Radio
Became a major medium for direct response advertising in the 1920s
Allows advertisers to segment listeners, e.g., by types of music, all-news, sports only, etc.
Still a strong medium today, but not widely used
Radio listeners tune into less then 3 stations regularly, while TV viewers continuously switch channels
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15. Using Radio Advertising
Advantages
Relatively low cost
Message can be melded with disc jockey chatter
Can be up to 15 minutes
Per inquiry arrangements
Little preparation
Changes can be made up to the very last minute
More flexible than TV
Disadvantages
No permanent response device
No visual impact
People listening are often in their vehicles and can not respond to the ad right away = NOISE!!
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The Telephone
Can be viewed both as a marketing medium and a response mechanism
Telemarketing is a medium that uses sophisticated telecommunications and information systems combined with personal selling and servicing skills to help companies keep in close contact with present and potential customers, increase sales, and enhance business productivity.
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17. Inbound Vs. Outbound Calls
Inbound Calls (where customers are calling in) - reactive telemarketing
Applications:
Ordering or inquiring
Clarifying or requesting assistance
Responding immediately to an advertisement
Expediting processing
Making pledges or contributions
Obtaining financial data, stock prices, etc..
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18. Inbound Vs. Outbound Calls
Outbound Calls(where firms call the customers) - Proactive telemarketing
Applications:
Generating new sales, including reorders and new product introductions
Generating leads
Serving present accounts
Reactivating old customers
Surveying customers, members, voters
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19. Advantages/Disadvantages of Telemarketing
Two-way communication
Immediate feedback
Very flexible medium
Most productive medium
Cost-effective medium
Disadvantages
Intrusive marketing medium
Lacks visual enhancement
Does not provide a permanent response device
Retaining highly trained telephone operators
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20. Telemarketing Technology
DNIS (dialed number identification system)
Allows any organization that has multiple 800 or 900 numbers to differentiate incoming calls based on the number dialed by the caller.
Can be used to track media performance and accountability
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21. Telemarketing Technology
ANI( automated number identification)
Identifies the number of the person calling
The number can be matched against a database
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22. Telemarketing Technology
Predictive Dialers
Machines dial and connect only when a “live caller” is reached
Short Messaging Service (SMS)
Text message alerts to cellular phones
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23. Planning a Telemarketing Program
Preparing the telephone scripts
Aids the telephone operator, like an outline
Training the telephone operators – 6 qualities:
Experience, computer literacy, people skills, reliability, organization & problem-solving skills
Integrating with other media
Television, direct mail, catalogs, print, radio, yellow pages, Internet
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Media Measurement
Inbound calls are generally less expensive than outbound calls.
3 components that make up the cost of telemarketing calls are:
Personnel (50% of costs)
Equipment and overhead (30% of costs)
Telecommunications service (20% of costs)
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Case Study
GEICO: Direct Response TV
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