FAQ: Marketing Via Broadcast Media

Transcription

1 Question 1: What is the difference between network and local television stations? Answer 1: Network television refers to the major broadcast networks. Each network has affiliated and local television stations. Both a network and the network's local stations perform similar functions, such as carrying different types of programs, including entertainment, news, and sporting events. The real difference, in terms of direct marketing, is how network and local stations are used. For example, network television covers the vast majority of the nation with its broadcasts. This is a very powerful reach, and for some products and services, it makes network advertising very attractive; however, there are disadvantages as well: it is extremely expensive to advertise on network television, and there are few spots available to purchase. For these reasons, it is difficult for direct marketers to make network television profitable. Local television, as the name implies, is localized and covers a specific broadcast area. It is often a very attractive way for direct marketers to advertise because markets are usually very competitive therefore, advertising rates are much more reasonable. The main disadvantage is that it is difficult to manage national coverage with so many stations to coordinate. Question 2: What are some ways to evaluate and plan a direct-response TV advertisement? Answer 2: The investment in any direct marketing or advertising plan is one that marketers want to maximize. If possible, you want to develop a way to evaluate and guide the creation and content of these investments. There are many criteria to consider when evaluating an infomercial's content: Does the message call for an immediate response? Is the offer easy to understand? Are the benefits of a purchase clearly spelled out? Does the message create urgency? Does the commercial ask for orders several times during the message? 1

2 It is particularly important to compensate for the fact that the viewer may run out of time to write contact information if the close happens at the end of the message. Marketers may also remind the target market that the product is not available locally in stores. This is important because it increases the value and focuses the attention of the direct-response message. Question 3: Why is the format of a radio station important to consider before buying an advertisement? Answer 3: A radio station's format refers to the market or type of audience it serves. There are a number of different station formats: for example, stations that broadcast specific genres of music, news, or commentary. As you may guess, each station format appeals to a particular market and will have definite characteristics to appeal to that market, including a focus on specific lifestyles, interests, buying habits, age, and income differences. There are many attributes that each audience will have and must be considered. These characteristics are then compared to the profile of the market being targeted and a close match is sought. Once it has been identified, a logical decision can be made as to the suitability of radio for the product's features and benefits. Product characteristics are a key consideration. If words are adequate for the description and are able to make a compelling offer, then radio is a good choice. If, however, images or movement are required, then radio may not be the best choice. Question 4: How and when are recorded media used in direct marketing? Answer 4: Recorded media, including Blu-ray discs, DVDs, and electronic video files, can be a great tool to add to the direct marketing mix. Portable video is a powerful communicator. A well-produced video is able to give great attention to details about the product or service. A full product demonstration is very possible and can show product function in its best possible light. The media can be a substitute for live product demos that are expensive to stage and reach a limited audience. Video also has "pass along" qualities: for example, if a friend of yours receives video and believes that you would be interested in knowing more about a product, he or she can provide it to you. 2

3 An investment in recorded media depends upon the product and market. If the product is complex or difficult to describe in print, then a video may help close the deal. The other consideration is the target market specifically, is it reasonable to assume the market has the electronic equipment necessary to play the particular video format and has a cost-benefit analysis been done? For example, if it costs $100,000 to produce the video, the marketer would need to have a reasonable belief that the benefits will outweigh the investment. Question 5: What are coupons, and how are they used in direct-response marketing? Answer 5: Coupons have been a part of direct-response marketing for a long time. Coupons are usually used as either incentives or direct-response tools. Traditionally, the key difference between coupons and advertising is that advertising gives the market the reason why it should purchase a good or service; coupons, on the other hand, provide an incentive to purchase. For example, most everyone has seen a newspaper with coupons for a specific amount on various items. Coupons also make excellent direct-response vehicles. For example, a print advertisement may include a section that is removed and sent to the marketer to respond to the offer or request more information. The advantage is that they are convenient for the target market to use and they require information to be filled out to receive customers' requests. This information may then be added to the customer database for further analysis. Question 6: Why is prospecting such an important part of telemarketing? Answer 6: Telemarketing does more than just take and process customer orders and respond to customer service calls. Another very important function is to generate and qualify sales leads. Prospecting is the process of looking for new customers. This process can be tedious, and it often requires a resiliently objective person to perform this task. It can, however, be a vital tool for direct marketers. For example, a direct marketer may mail out a number of direct-response cards, or coupons may be submitted with customer names and phone numbers. Telemarketers 3

4 would then call the numbers and discern the quality and value of each lead. In other words, they would separate the true prospects from those that are not. This vital service provides value both ways. The marketer benefits by having up-to-date and actionable data, and the customer receives the prompt attention he or she has requested. Question 7: What are the basic requirements for a successful outbound telemarketing program? Answer 7: Outbound telemarketing refers to calls that originate from within a call center and are directed toward the target market. This is usually a revenue-generating activity. It is a very important task for call centers to perform. Successful outbound calling depends upon three essential ingredients. The first is a calling list that is made up of the target market. If the list does not match the target market, then the next ingredient and the whole effort will be wasted. The next ingredient is the product offer. The offer must be specific to the target market, or it does not have any chance for success, which is why these two elements are inseparable. The last ingredient in a successful outbound telemarketing program is a well-trained sales representative. The representative must have excellent phone skills and be able to deliver the sales message in a clear, friendly, and persuasive manner. Question 8: Why are salespeople an important tool for direct marketing? Answer 8: Salespeople are the ultimate weapon for direct marketers. They may provide the only personal contact to the customer. This personal, often face-to-face contact, is the single most effective selling tool there is. In general, salespeople provide many benefits for direct marketing companies. They prospect for new customers. Salespeople communicate, in adaptable and personal ways, the features and benefits of the product or service. Salespeople also directly sell and close deals and tend to the needs of a customer when he or she has issues or concerns. Salespeople may also gather valuable market information that is useful for decision making. 4

5 The fact that salespeople have direct contact with the market is a key factor that should make their selection a careful one. Proper screening and training is essential if the company is going to field the most effective sales force possible. Question 9: How might telemarketing services and salespeople be used together for direct marketing? Answer 9: Telemarketing services and salespeople can be a powerful combination for direct marketers. This tactic is an application of the old concept of division of labor. In other words, both the telemarketers and salespeople do what they do best, which provides the best return on investment for the firm. The benefit of telemarketing is the ability to generate and qualify prospects. Prospects are people who have either expressed interest in the product or service by contacting the company, or they have been contacted initially and then expressed interest in the product. Telemarketers are in an ideal position to contact large numbers of prospects in a single day. This is both more efficient and offers a chance for a positive return on investment. The qualification of leads refers to sorting potential customers by such things as when they plan to make a purchase and if they have the financial means to make the purchase. Telemarketing's lead generation and qualification work is invaluable to the sales force. The list of now qualified leads is passed on to the direct sales force, which is trained to present and close the sale. This teamwork allows both groups to concentrate on what they are best trained to do. Question 10: Can anyone become a successful salesperson? Answer 10: A career in sales can be a very exciting and rewarding endeavor. Successful salespeople tend to share some common characteristics. In a general sense, successful salespeople possess several inner motivations: they are energetic, have a higher than average self-confidence, and are driven to succeed. In addition, they tend to have the ability to empathize with the customer and be excellent communicators. It is interesting to note that the top executive officers of many U.S. corporations started in sales. The aforementioned characteristics are usually associated with personality traits that someone naturally has. So does that mean it is possible to train 5

6 someone enough to make them into a successful salesperson? The answer is probably not. Not everyone has the internal drive necessary to consistently overcome the obstacles that sales professionals encounter nearly every day. The first priority for marketing and sales management is to carefully recruit salespeople that fit the customer's preferences first, and the organizational structure second. It is expensive to train salespeople, and if they fail, that investment is not only wasted, but the relationship with the target market may also be damaged. 6