DIRECT MARKETING RESPONSE

DEFINITION
 Direct response marketing is a type of marketing that elicits a specific, measured
response that is resulting from a consumer's direct response to a marketer. Direct
response marketing facilitates the delivery of call to action and outcome via direct or
online interaction for immediate feedback and response.Direct response marketing allows
marketers to understand the performance of their products or services without undergoing
a waiting period.

 Direct response marketing is a type of sales technique designed to evoke on-the-spot

response and encourage a prospective customer to take action by opting in advertiser’s
offer. Unlike other marketing types, the direct response requires little or no time waiting
to see measurable results. It packages the value proposition and call-to-action all in one to
take a prospects consideration to decision faster.

KEY COMPONENTS OF DIRECT RESPONSE MARKETING

Advertising that supports direct marketing is intended to sell products immediately, hence the ad
and the buying decision are consecutive. Direct response ad must trigger an instant feedback;
otherwise, it fails. A typical direct response ad necessarily includes the following elements:

An offer : An “offer” is a combination of factors such as product itself, the cost per unit, trial
period, terms, optional features, guarantee, incentives, future obligations, time o quantity limit,
shipping and handling, etc. Very often, the aim of the offer is no sell anything, rather get the
prospect’s interest and lead him to the next action. Usually, the offer is fixed on a prospect and
appeals to their emotions, desires, frustrations and fears.

Information : A direct response ad must have enough information for customer consideration
and immediate acceptance of the offer. As a rule, the less famous the product is, the more
information needed. On average, the advertiser has 4 seconds to grab the attention of the
recipient, thus the message must be personalised, relevant and persuasive. Advertisers provide
reasons to accept the offer and highlight the value of the offering, including information about
why this product is better than others available.

Call to action and means of response : Every direct response ad includes a clear call to action,
compelling a visitor to do something specific. A few common examples are: Use this coupon at the
counter, Contact us immediately by calling this number .
BENEFITS OF DIRECT RESPONSE MARKETING
Trackable performance

When a user responds (clicks, signs up, etc.), the advertiser knows exactly which ad and which
media generated that impression. advertisers can determine whether ads are effective, which
target group is affected by the ad the most, what is the engagement rate, what amount of clicks is
generated daily and so on; all data is simply displayed on the dashboard..

Measurable outcomes

Since advertisers know precisely, which ads are being responded to and how much revenue is
coming from each one, they can easily evaluate the campaign performance. For this reason, direct
response is one possible way to test the scale of consumer responses with a small campaign
before launching a full-volume campaign.

Targeting specific audiences.

While branding campaign targets everybody in order to promote the brand awareness, the direct
response is all about people who are most likely interested in the product. Prospects within
specific verticals, geographic zones or niche markets are targeted. The ad aims to appeal to a
narrow target market.

Precise segmentation.

Marketers can develop effective segmentation strategies by buying a list of potential consumers,
for example, new car buyers, credit card users, clothing shoppers and so on. With programmatic
advertising, advertisers can use ad networks that specialise in types of content they cover, like
entertainment, beauty, travelling, foods, etc. These websites would be then grouped into vertical
channels and sold out to the advertisers who wish to reach out people interested in these
topics. Alternatively, some ad networks sell audience segments built on demographic, behavioral
data or user interests.
1. DIRECT RESPONSE TELEVISION

The direct marketing uses of television include direct response and support infomercials and
home shopping channels. Television can be used for sales or lead generation. When it is used to
generate sales .those who respond to the programming place an order but when they ask for more
information they provide a lead for the firm in its pursuit of sales .direct response television ask
for an immediate decision from the viewer or reader .In direct response television the age,
education, and income of many prospect are known in advance as the time, or night they watch
television and seasonality of their buying habbits . Direct response advertisers also know the
approximate number of viewers for a show and which program will encourage responsiveness to
an offer .
Offer that work on direct response television must appeal to general audiences or to audiences
that are Segmented by the demographics by which television programming is sold particularly by
age and gender or by the programming content in which they are shown .

INFORMERCIALS

An infomercial is a form of television commercial, which generally includes a toll-free telephone

number or website. Most often used as a form of direct response television (DRTV), long-form
infomercials are typically 28:30 or 58:30 minutes in length. Infomercials are also known as paid
programming focuses on the detail of one product

Advantages

 It provides a wide choice of alternatives

 Television has a big impact in short period of time

 DRTV is highly accountable and measurable. These features not only allow companies to connect
directly with consumers in innovative ways, but they also enable efficient, fast decision making
.
 Image spots and DRTV work together beautifully. For example, where shorter image formats help
inject the consumers’ minds with thinking, awareness and attitude about a product or service,
DRTV commercials lead viewers to the next stage. They push consumers to take action by picking
up the phone, visiting a website or driving over .

Disadvantages

 It can hit or miss

 Lack of tangible response devices

 One of the biggest mistakes of direct response television marketing, particularly on television, is
marketing a product without explaining its purpose. If a customer doesn't understand why they
need something, they likely won't want to learn about it or spend any money on it

 A large mistake made in regard to DRTV is the idea that by putting out an infomercial you'll
automatically generate interest and purchases. This isn't necessarily true. The most successful
direct response television marketing is done with products that have mass appeal. For example, if
you were selling a health food product, anyone with an interest in health might purchase it.
2. DIRECT RESPONSE RADIO
The use of radio as a direct response medium predates similar uses of television by many
decades. Radio offers direct marketers a unique blend of benefits including sales to targated
highly segmented audiences and an opportunity to get on the air fast. Radio stations with
proven programming formats appeal to listeners with similar interests and shared the
demographics and psychographic characteristics. A major attraction of radio is its ability to
reach highly segmented audiences .the general principles that apply to using support
programs in print media or television also apply to radio support media address the same
target audience and follow the same timing as the primary media.

Advantages

 The wide range of offers, radio allows you to target your message to specific groups. Some
stations are after the widest possible audience, but many point to niche markets.

 Radio is available to most people at any place at any time .

 The limited geographical reach of most stations and their specialized programming formats attract
audiences that tend to be quite homogeneous in terms of demographics and lifestyles

 Radio advertising is relatively cheap compared to print or television advertising

 Scripted data no excessive preparation required, radio advertisement can be changed easily

 Radio is portable and mass medium that people use while driving, clean the house or mow the
lawn. TV advertising requires people to sit in front of their TV, print ads and web require focused
attention on the page or screen. But you can listen to the radio while doing other things

Disadvantages of radio vs other media

 lack of permanence because If an ad in a newspaper or magazine catches your eye, you can crop
and save, or at least take a picture of it. With the advent of the DVR, including television
advertising you can rewind and watch again if it attracts the viewer’s interest. But radio ads are
ephemeral: you hear them, and then it is gone. If you have lost a phone number or any other
details mentioned in the notice, you’ll have to wait to be advertised again.

 it distracted the audience This is the other side of portability. People can listen to the radio while
driving, and in doing so will not be able to act immediately to listen to advertisements. Nobody is
going to stop on the highway, for example, to enter a number. Meanwhile, those who listen to the
radio while working can be so focused on their tasks than ever logged.

 Unfortunately, many radio stations will air too many commercials during each stopset. That means
listeners are exposed to too many ads at once, and your marketing might get lost in the mix.
Working with the right radio partners can help choose the best stations — for instance, at Zimmer,
we limit the number of spots per break, thus making each spot more powerful.
  Radio is similar to television in this respect. The commercial only lasts for the length of
time that it’s on the air, with no permanent, tangible reminders for reference. That’s why
you need to develop creative with an eye to its frequency to maximize impact.

THE ESSENCE OF DIRECT RESPONSE RADIO ADVERTISING

Experienced direct marketers know that radio needs special attention in order to produce sales
.the commercial must be memorable particularly the phone number setup .because a large number
of radio Listeners are in car ,it is especially important that they be able to remember what they
heard without having to write any thing down . the phone number or mailing address must be
announced several times In the course of a commercial.

Radio Station Formats

In using radio commercials it is important to consider a stations format because each station tends
to have a different listening audience .Most radio commercial use music, but many use a non
musical Script that is read either by the radio station show host live or by a recorded commercial
that features a spokesperson . Radio is an emotional medium many people listen to it to change
their mood .this means that better radio advertising makes an emotional pitch to its target the
audience by way of music and words designed to deliver the selling message

Creating Radio Commercial

The main selling concept must be the star of the commercial it must not be dominated by creative
concept .However this does not mean that selling needs to be boring .the product , the phone
number , the offer or some relevant selling idea must be the main thrust of the radio spot , and it
helps to use a standard format, but this still leaves room for creativity .the spot can focus on a
straight announcer it can emphasize dialogue . From a creative standpoint radio might be the
simplest advertising medium there is .With a straight forward radio spots are powerful, cheap and
easy to produce .
3. DIRECT RESPONSE IN PRINT MEDIA
Print media consists of magazines and newspapers

a. Magazines - usually have national distribution but their circulation is targeted to specific
reader interests.
b. Newspapers - circulate in small or regional geographic areas.

Direct response magazine and newspaper space advertising must ask the reader to do
something .To make a sale, the ad must present enough information to stimulate a purchase
decision or generate an Inquiry which will be followed up by mail or personal sales call.

Magazines and newspapers that contain a heavy volume of direct response ads usually
outperform those that do not have many such ads. We believe this to be true because particular
magazines or newspapers have readers with a positive attitude toward direct marketing activities.

FACTORS INFLUENCING DIRECT RESPONSE PRINT MEDIA

i. Audience characteristics: magazine audiences are more specialized and therefore

audience characteristics are extremely important making cost per thousand of lesser
significance then with newspaper except for relative magazine comparisons when two
magazine serve the same audiences

ii. Cost per thousand readers delivered: knowing in which publications to advertise ,
when to advertise in them , and where to go to pay the lowest prices is crucial to the
success of a firms sale or lead generation program

iii. Editorial climate of publication and editorial adjacency: Editorial climate is

psychological atmosphere in which people find themselves when reading a publication
.these climates ranges from sports to business magazines and from conservative to liberal
newspapers.

iv. The physical position: physical position in the publications is about where in a magazine
or newspaper a direct marketers ad gets placed.

v. The Advertising copy: the advertising copy positions a firm product or service .it
communicates a message to the reader about the reasons for making a purchase or an
inquiry and tries to get the reader to pick up a telephone or send in a postcard .in general
the most successful direct response ads feature a headline that communicates a benefit to
the reader .

vi. Scheduling, timing and testing of the ad: scheduling and timming issues are
associated with when and how often a direct response ad appears in a given publications
testing involves using variations in the ad or in the print media to evaluate alternative
campaign approaches. If a firm places direct response ads in several publications it needs
to have a means of tracking the responses to each ad version .
MAGAZINES

 Consumer magazines are read by people who buy products for their own
consumption or for household consumption. consumer magazines can be
divided into a large number of subclassifications from airline magazine to
youth magazines .The magazines most familiar to the general population
are those sold directly to consumers for there entertainment or education .

 One advantage of consumer magazine advertising that readers take a

longer with the content than in other media so there are more opportunities
to sell or generate leads with the ads .
 An other advantage is that more than one person may read a copy of
magazines .these Extra readers are important to advertisers because they
represent a large audience for their advertising message.

 Business magazines include three types: 1. Trade papers which appeal to retailers,
wholesalers and other distributors; 2 Industrial magazines, which appeal to those
in manufacturing; 3 Professional magazines, which appeal to those in medicine,
law, marketing, etc.

 Business publications are often read during working hours so readers can
be easily motivated to give a positive direct response with few distractions
 They also reach directly the persons who have responsibility for the items
being promoted

Direct Response In Magazine

Direct response advertising in consumer magazines is dominated by ads for music and self help
products or services.Aside from ads in general business magazines such as fortune or business
week, direct response ads in business publications tend to focus on the products and services of
most interests to the specific magazines readership.similarly for consumer publications the most
specialized magazines contain ads for product and services that are very specific to the editorial
content of the magazine .

NEWSPAPERS

Newspapers are classified according to their frequency of publication, with some

published daily and some published weekly. Newspaper advertising is a great resource for
direct marketers, as it provides exposure to some of the most coveted demographics throughout
all the major markets. As with any other direct response advertisement, newspaper direct
response ads are designed to elicit an immediate response from the reader.The headline should be
attention grabbing, the copy should be clear and convincing, and the call to action should be
explicit.
Advantages of Newspapers

1. Frequency. Most newspapers, with the exception of small suburban and rural papers,, publish six or
seven times per week, and some large papers offer both morning and evening editions.
2. Immediacy. For black-and-white advertising, the close time (the time by which the ad must be submitted
for inclusion in a particular edition) is often only 48 hours prior to publication.
3. Reach. Newspapers offer high penetration of households in their primary geographical area. Big papers
offer zones editions, where they break out their territory. A 50 percent penetration of households in a
locality is not uncommon, and some newspapers have a penetration of 70 percent or more.
4. Local shopping reference. Readers expect to see notices of sales, special events
5. Fast response. Since most newspapers are a daily medium, the direct marketer knows quickly whether a
particular offer is producing a satisfactory response.

Terminology

Run of Paper (ROP) - advertising can appear on any page, in any position in a column, or even
buried among other ads. The choice of where the ad will appear is up to the editor. You can pay
extra for placement.

Display advertising - uses photos, illustrations, white space or color

Classified advertising - is arranged under subheads according to what product or service is being
advertised.

Classified display = arranged under subheads but allows some art work.

Freestanding Inserts - FSI - are produced by the advertiser and shipped to the newspaper who
becomes the distributor. They offer a great deal of flexibility to the marketer.

Supplements - are printed as magazines and inserted into newspapers, usually in the Sunday
edition.

Direct Response In Newspaper

Newspapers are the major advertising medium for direct response retailers that operate store
locations, banks and other similar retail locations .Newspaper fit retail communication well
because of their circulation distribution in specific guides .newspapers may also be distinguished
on the basis of the audience they attract .Thus in addition to the general interst newspapers there
are many newspapers that cater to special groups such as foreign language papers and trade
similar to that of other newspapers .
4. BUSINESS TO BUSINESS DIRECT RESPONSE MARKETING

Business to business marketers uses direct marketing to sell their offerings to organizational
buyers rather than individual consumers. Business to business transactions typically have a longer
sales cycle. Sales in business markets take place over a longer period of time as compared to
consumer markets.
Therefore, the most important role of direct marketing in business to business transactions is to
support personal selling. Visits by sales people may be preceded by telemarketing or use of direct
response advertising or direct mailers to generate some leads.

Objectives of business to business direct marketing

 Business-to-Business uses the full range of direct marketing approaches, including direct
mail, telemarketing, direct-response print and catalogs.

 Business - to- business direct marketing promotes goods and services that are used in the
production of further goods and services. These goods can either become part of an end
product or be used in the manufacturing process

 Business - to Business direct marketing wholesalers and retailers involves selling

goods and services that are resold.

 Even though there are fewer businesses than consumers, business -to- business
marketing is the fastest growing segment of the direct marketing industry. The
reason for this is because the cost of maintaining a sales force is high. And, few
business-to-business marketers have sales forces large enough to contact all likely
prospects.

 The most common objective of business-to-business marketing plans is to sell

products or services. The second most important activity is to generate qualified
leads of prospective customers for a sales force.

Business -to-business versus Consumer

1) The market for a business good typically consists of a relatively small number of customers.

2) Products sold in the business market are usually more technical in nature than consumer
products, and many are purchased on the basis of specifications.

3) The business buyers motives are usually considered more rational than those found in the
consumer markets. Buying decisions are often made on the basis of such factors as
specifications, vendor analysis, cost effectiveness as opposed to emotional/impulse decisions.

4) Committee buying or multiple decision markers is more typical of business purchases.

5) Organizational buying involves multiple purchasing roles played by various members or
groups in an organization. For instance, purchase of heavy equipment may involve the R&D,
purchasing, manufacturing, finance and marketing departments playing

6) Members of each of these departments may want different type of information, and hence, a
single mailer may not be useful in such a case. A single mailer containing all the desired
information will be unnecessary for others, and a different mailer for each group will be
expensive, though more effective.different roles

Business are segmented by:

1. Geography - country, region, county, zip code or census classification

2. Demographics - firm size according to sales volume and/or number of employees.

3. Usage rates - heavy versus medium versus light users (based on unit or dollar sales or number
of orders)

4. Benefit segmentation - rational benefits dominate. For example, with computers for the
company high processing speed, network compatibility, and reliability.

5. Industrial Classification (SIC) Codes - are based on business activities in the United States.
Agriculture, Mining, Construction, Manufacturing, retail trade, financial services, etc.

6. End Use - the final application of the product by a particular industry.

5. TELE MARKETING AS DIRECT RESPONSE TOOL

Another common form of direct marketing is telemarketing, in which marketers contact

customers by phone. The primary benefit to businesses is increased lead generation, which helps
businesses increase sales volume and customer base. The most successful telemarketing service
providers focus on generating more "qualified" leads that have a higher probability of getting
converted into actual sales

 Telemarketing can be important part of an intigrated marketing communication program

 The telemarketing objective is to reach customers in a personalized ,cost effective interaction

that meets customer needs.

 A well planned tele phone marketing program is a carefully thought out and controlled
activity in which the persons called have been identified as actual or potential members of the
firm target market.

 Tele marketing helps build and maintain satisfactory customer relationship .the most effective
telemarketing programs make use of the latest technologies including communications
hardware and software particularly data base technologies .

 Telemarketing is a powerful tool because it has the ability to create a positive image through
a personal interaction with a customer or prospect .

Telemarketing methods are categorized as

Inbound call: The customers are calling a firm to place an order or to request more information
or customer service . Because of this, most inbound call centers are customer service focused.
Customers will call into these types of call centers when they need assistance with the product or
service they specialize in.

Outbound call : the place where the firm is calling customers and prospects to make a sale or to
offer information which it hopes will lead to sale. most outbound call centers are sales focused.
this means that they’re targeting them for a sale.

THE SCOPE OF TELEMARKETING

No other direct marketing tool can match the cost effectiveness , flexibility , control and speed of
telephone .telephones are more useful to get good results .

Selling :
Telemarketing based selling involves outgoing solicitations for a firms product or
service .selling by telephone is the most profitable telemarketing application .with exsisting
customers it can be used to elicit reorders ,sell additional product or services or increase the
volume of product
purchased .it can also resell inactive customer ,sell new prospects and handle smaller customer.
Telemarketing is used in conjuction with some other method of promotion to elicit a direct
response .
Setting qualified appointments :
Setting qualified appointments involves calling prospects
,qualifying them and setting appointments for salespeople. Salespeople have a variety of
duties including preparing and giving face to face presentations .A trained telemarketer set
appointment for salespeople usually becomes more proefficent. Telemarkerters can do better
because of their concentrated and entirely focused on prospecting .

Generating leads :
A lead generating program provides a source of information about prospects
who have expressed an interst in the product or service offered by a firm . Outbound telemarket
-ing is only as effective as the prospect list it uses . A firm can have the best product or service in
the market place , but only a list of target market members who are good prospects to make a
purchase will result in succesful campaign.

Advertising :
Advertising that serves a public relations function involves calling on individuals
that could benefit from a firm s product or services. Such calls are scripted in much the same way
as producing advertising copy .The caller communicates information about product or service or
any modification regarding exsisting product or service.

Advantages

 Choosing telemarketing over other marketing platforms is a good idea for sales & marketing
professionals and business owners. It is comparatively cheaper than other marketing methods,
such as journal/magazine or website advertising

 With telemarketing, you can easily expand your business, create lots of new opportunities and find
new customers. It is also a great way to follow up with your existing customers, and to keep them
interested in new offers and services, which can bring around potential for additional sales
opportunities. It also gives you instant feedback of what the market is saying.

 With telemarketing, you are bringing your product or service straight to them. Your customers will
be able to ask questions directly and have an immediate conversation instead of waiting around for
the reply to an email.

 When you get fast feedback about your product or service, you can immediately start working on
what to do to improve your business. Telemarketing is a great way to ask your customers if there is
anything else that you can be doing for them. Insight gives you market intelligence.

 One of the biggest telemarketing advantages concerns campaign results. You can analyse, report
and measure these to provide a detailed picture of the campaign's success. You can also establish
which methods are most effective.

Disadvantages

 telemarketing can be resented - particularly when dealing with business-to-consumer customers,

and when calls are made in the evenings
  customer lists may not always be clean and opted-in - this leaves you with a potential risk of
breaking the law

 customer lists can be very costly

 telemarketing has a negative image that could damage your business' reputation - if carried out
poorly

 training staff can be time-consuming and costly

 an outside service provider can result in your losing control over your sales processes because the
people doing the work aren't your employees

6. DIRECT RESPONSE FROM SOCIAL MEDIA

In the world of social media, every tweet, post and image can feel like a direct response appeal;
there’s always a link to click, a question to answer or a status to share

More and more, customers are turning to social media to decide what to purchase, and from
where. Clearly, consumers expect some benefit from following brands on social media, and direct
response marketing can address this by encouraging them to take advantage of special
opportunities. But as objectives vary from industry to industry, so does the success of various
types of messaging.

More than any other form of digital marketing, social media meets the three keys for direct
response, particularly now that the platforms have reached a new maturity and are incorporating
advertising tools:

Social media helps your media agency reach out to a targeted group of consumers
on a large scale. The growth of Facebook, Twitter and other social networks has been
revolutionary. Millions of people are logging into social media each day and spending more time
there. As the numbers of users rise, the platforms have begun segmenting their audiences in order
to serve more relevant content as well as advertising. Social platforms provide a number of
different tools that your direct response marketing agency can use to weed out unqualified
prospects and serve ads to those that are most likely to take action.
Social media offers tools to tune offers to meet the needs of specific segments of that
audience. Before social media, this type of digital direct response was done primarily through
content management systems. Now, content management systems are used as landing pages for
social advertising. Based on incoming traffic, these pages can be tuned and delivered in order to
optimize conversions.

Social media can provide multiple optimization levers for your direct response
advertising agency. There are a plethora of levers that can be used to create higher conversion
levels for your social media campaigns. For example, creating bulk mobile conversion pages that
are optimized for specific segments and groups can help your media agency see what is working
and what is failing. Retargeting and behavioral segmentation can also be used more easily
through social media platforms, leading to even better conversion rates.