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| |
THE BIRTH OF DRTV
and
and
 | A comparison of infomercials and DRTV Spots with all types of TV |
| advertising from 30 years ago reveals what made direct response |
| TV advertising feasible. Three services made available during the |
| last decade made direct response television possible. |
| They are: |
and
| TOLL FREE 800 NUMBERS - |
| The consumer is now able to respond or interact directly with the |
| advertiser. The numbers are widely available, convenient, and |
| most importantly, free to the consumer. |
and
| PROLIFERATION OF CREDIT CARDS - |
| Over 100 million credit cares are in circulation in the U.S. alone. |
| This tool enables a huge number of consumers to make purchases over |
| the telephone. |
and
| OVERNIGHT DELIVERY - |
| To get consumers to respond to your sales offer right away, make |
| sure you give them the satisfaction of having you product right away. |
| Remember, consumers are willing to pay a premium to get you product |
| overnight. They want it now!! |
and
and
*MERCHANT ACCOUNT - Service bureaus that handle order taking for you will
| almost certainly require you to have your own merchant account. |
| Without a merchant account, you will not be able to accept credit |
| card payments. Needless to say, this will seriously affect your |
| overall sales figures. |
| If you do not have your own merchant account to process |
| credit card orders, it is essential that you use a service bureaus |
| or enter into a joint marketing venture with a company that is able |
| to extend you this privilege. |
and
*ACCEPTING CHECKS OVER THE PHONE - Don't limit your phone in sales to credit
| card holders. By expanding the way TV viewers can pay for their |
| purchases, you increase you probability of making a sale (with the |
| introduction of checks-by-ph9one, your potential market is likely to |
| grow by another 30%). Check Verification makes you product available |
| to millions of people who do not have a credit card but do have a |
| checking account. Here are some practical reasons why you should |
| consider accepting check orders over the phone: |
and
| IT COMMITS THE BUYER - The buyer doesn't have to write a check, |
| write his name and address on a piece of paper, look for an envelope, |
| get postage, and then mail the order. These steps can take anywhere |
| from a few minutes to a few days. The longer it takes, the higher |
| the odds your potential buyer will change his mind. |
and
| INSTANT GRATIFICATION - Your customer's order can be cleared and |
| processed faster if he doesn't have to mail a check which you bank |
| has to clear before the order is processed. With Check Verification, |
| you get the money within 48 hours and you customer receives you |
| product sooner. |
and
| COMPETITIVE RATES - If your ticket price is over $59.00, you unit |
| cost to process a check order by phone will be almost the same as |
| the commission the bank charges your merchant account. As this |
| service become more readily available, and as merchant account |
| become more difficult to acquire, accepting check orders over |
| telephone is a feature DRTV marketers can no longer ignore.
* |
and
*CONTINUITY PROGRAMS - Develop a product or service that will fit into your
| back-end marketing program. Remember, the easiest person to sell is |
| one who has already purchased from you. |
and
| A continually program will product sales or products or services to |
| customers who have just made a purchase through an infomercial. |
| The best way to promote a continuity item is through a brochure or |
| other sales literature inserted with the original order. |
and
| Developing a successful continuity program will only enhance you |
| bottom line, particularly since your advertising message is usually |
| delivered at not additional expense to you. Furthermore, your |
| continuity item is being offered to satisfied customers, because |
| your company made their TV buying pleasant and satisfying. |
and
| SEEK RELATED ITEMS - Continuity items should normally be related to |
| the initial product. The consumer purchases your initial product |
| to satisfy a specific need, so it stands to reason that auxiliary |
| products catering to this same need stand a higher chance of success |
| than totally unrelated products. |
| For example: If an exercise machine is you main product in |
| the infomercial, a monthly vitamin subscription plan can be an ideal |
| continuity program of you.; It is related to the customer's |
| original need (to be healthy and fit), and you can count on a hefty |
| profit margin because you advertising costs for the vitamin |
| subscription are minimal. |
and
| RELATIONSHIP MARKETING - Continuity may also be looked at as a means |
| to establish a marketing relationship with your customers. Through |
| profile response cars and other dynamic data, you can product a |
| catalog that features several products that cater to the needs and |
| wants defined by your customer base. |
and
| To continue with the example above, you can offer your customer |
| (who originally purchased exercise equipment via your infomercial) |
| a wide variety of products and services in a catalog - duffel bags, |
| running shorts, portable CD players, you name it. As the cost of |
| acquiring new customers increases, selling more to the same customers |
| expands the potential for DRTV in almost any market. |
and
and
and
*BE YOUR OWN COMPETITION - When a product becomes an infomercial success
| story, vultures hover in a hurry, trying to duplicate your product |
| and you marketing campaign. Such competitors are called knock-offs.
* |
| In more cases, knock-offs are cheaper versions - in both quality and |
| price. However, one of the most brilliant knock-off DRTV campaigns |
| we've seen broke all the files: |
and
| 1. The company introduced a product of a higher quality and at a |
| higher price than the original. |
and
| 2. Both products came from the same company, so the company was |
| actually competing against itself. |
and
| 3. The same celebrity hosted the infomercials for both products. |
and
and
| The product was Stair Climber Plus, an upscale version of its |
| predecessor, Super Step. Both infomercials featured Bruce Jenner, |
| clearly showing the manufacturer's intent to present competition |
| that did not exist - in the process preempting any legitimate |
| competition. Neither infomercial mentioned the other product, and |
| for a while they were running at the same time. |
and
*
| WHAT DOES THIS STRATEGY ACHIEVE? |
| Producing your own knock-offs, by competing against yourself, |
| preempts competitors by giving them less room to maneuver. Instead |
| of competing with just one other brand, they have to position their |
| products somewhere between the two that are already in the market. |
and
| BROADER MARKET FOR YOU - There is nothing wrong with producing a |
| cheaper or more expensive version of your own product. It expands |
| the appeal to other market segments that may be outside the range |
| of you original product. |
and
| GUARANTEED SUCCESS - If people bought you original product, your |
| knock -off is likely to score the same success with its respective |
| market segment. |
and
| CREATES A BANDWAGON EFFECT - When viewers see two stair-climbing |
| exercise gadgets competing against each other, it creates more |
| awareness of stair-climbing as a method of exercise. Furthermore, |
| the competition creates the sense that the product is both a popular |
| and effective way to exercise. |
and
and
and
|
