developing & utilizing electronic media chapter 7 copyright © 2010 pearson education, inc....

Developing & Utilizing Electronic Media

Chapter 7

Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall

Please Note:


Opening Vignette

Smithfield Foods


Forms of Electronic Media Television Radio Telephone


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


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


Television A measurable and accountable means of

advertising

Provides immediate response

Special-Interest channels have allowed an increase for market segmentation


Market Segmentation Who are the viewers?

2 types: entertainment vs. information

How receptive are they to a direct offer? It depends!

Copyright© 2010 Pearson Education, Inc. Publishing as

Prentice Hall

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!


Cost Per Response

Formula to calculate “cost per response”

CPR = Total Promotion Budget_________ Total No. of Order/Inquiries

Received


How TV Is Used In Direct Response Advertising

1. To Sell Products2. To Get Inquires3. To Give Support to

Other Media Length varies based

on use!Infomercials – great

for Direct Marketing Copyright© 2010 Pearson Education,

Inc. Publishing as Prentice Hall

Common Types of Businesses Using

Infomercials

Business Opportunity Beauty Health and Fitness Household Entertainment Kitchen Not for Profit


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


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


Using Radio AdvertisingAdvantages

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!!


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.


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..


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


Advantages/Disadvantages of Telemarketing Advantages

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


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


Telemarketing Technology

ANI( automated number identification) Identifies the number of the person

calling The number can be matched against a

database


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


Planning a TelemarketingProgram

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, InternetCopyright© 2010 Pearson Education,

Inc. Publishing as Prentice Hall

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)


Case Study

GEICO: Direct Response TV


developing & utilizing electronic media chapter 7 copyright © 2010 pearson education, inc....

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