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THE BIRTH OF DRTV
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:
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.
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.
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!!
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
- The company introduced a product of a higher quality and at
a higher price than the original.
- Both products came from the same company, so the company
was actually competing against itself.
- The same celebrity hosted the infomercials for both
products.
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.
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.
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.
GUARANTEED SUCCESS
If people bought you original product,
your knock -off is likely to score the same success with its
respective market segment.
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.
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