Direct­Response Television Marketing

Direct­Response Television Marketing

direct­response

Direct­response television marketing (DRTV) takes one of two main forms. The television marketing

first is direct­response advertising. Direct marketers air television spots, 30­60 (DRTV)

seconds long, that persuasively describe a product or service and give customers a The marketing of

freephone number for ordering. DRTV is essentially mass marketing of a product produces or services via

or service, but with a responsive clement ­ the freephone number which gives the telev isian comm arciuls

and programmes which consumer the autonomy and authority to make the decision as to whether or not

involve a responsive to buy the product. Direct­response television advertising can also be used to

clement, typically ihe usf build brand awareness, convey brand/product information, generate sales leads of a freephone number

and build a customer database. For example, biscuit manufacturer MeVitie's ran that allows consumers

an eight­week DRTV campaign offering consumers the opportunity to call in and to phone for more

request a free sample pack of biscuits. Not only did the activity provide a means of information or to plac­e

collecting the names and addresses of consumers for follow­up purposes, but it an order for the goods

also allowed the company to consult and interact with consumers who respond, in advertised.

a way that conventional advertising has never done before. McVitie's believes that it will be better able to target future mailings and marketing activity using the data gathered.

Television viewers may encounter longer advertising programmes, or 'infomer trials', for a single product. An infomercial is a themed TV programme, typically 30 minutes long, during which the features or virtues of a product ­ say, an exercise machine or multipurpose kitchen device — are discussed by 'experts' before an audience. These are selling programmes which are presented in an entertaining mariner to attract the target audience. In Europe, infomercials are broadcast on existing pan­European satellite stations such as NBC Super Channel

Forms of Direct Marketing • 963

and Eurosport. The ini'omereial industry is expanding, with companies such as Quantum International and TV Shop airing programmes across countries in Europe.

Direct­response advertising is growing in popularity. For example, in the United Kingdom, some 20 per cent of commercials on television carry a telephone response number, a growth ot' 46 per cent hi the last three years. According to the Direct Marketing Association, spend in DRTV grew by 68 per cunt during 1995 alone. Companies ranging from mail order (e.g. Sounds Direct), leisure (e.g. Scandinavian Seaways) and financial services (e.g. Direct Line, AA Insurance Services) to cars (e.g. Daewoo, Fiat) and fast­moving consumer goods (e.g. Britvic,

Martini, McVitie's) are spending on DRTV today. Direct­response television marketing has also been successfully used by charities and specific fund­raising campaigners to persuade viewers to offer donations or volunteer services. The 'Live Aid' campaign that captured the imagination of millions of people across the globe, 'Children in Need' and many other international fund­raising events have used direct­response advertising to good effect. DRTV recruitment campaigns have also been successfully employed by the British army for a number of years: a recent campaign reported one in four enquiries converted into a volunteer. 17

Home­shopping channel*, another form of direct­response television marketing, are TV programmes or entire channels dedicated to selling goods and services. Television home shopping is already a massive phenomenon in the United States, with more than half of all.US homes having access to home­shop­ ping channels such as Quality Value Channel (QVC), HSN and Value Club of America. European consumers seem likely to follow suit.

In the United States, home­shopping channels, such as the Quality Value Channel (QVC) and the Home Shopping Network (HSN), broadcast 24

hours a day. QVC's live shows run not just 24 hours a day, hut 364 days a year, and it processes well over 130,000 phone calls every day. On IISN. the programme's hosts offer bargain prices on products ranging from

jewellery, lamps, collectible dolls and clothing, to power tools and consumer electronics ­ usually obtained by the home­shopping channel at close­out prices. The use of multimedia techniques means that the presentation of products is upbeat and a theatrical atmosphere is created, often with the help of celebrity guests, and up­to­date information can be given on product availability, creating further buying excitement. Viewers call an 800 number to order goods. At the other end of the operation, hundreds of operators handle more than ] ,200 incoming lines, entering orders directly into computer terminiils. Orders are shipped within 48 hours.

QVC and other US­spawned TV shopping channels are already operating in Europe and consumers are waking up to the benefits of TV shopping. Ry far the largest electronic home­shopping" business owned by Europeans is TV Shop, TV Shop is active in 19 European countries, of which Germany is the biggest market, and it is now expanding into Asia, particularly China. TV Shop is 94 per cent owned by the MTG Group,

itself part of steel and paper group Kinnevik. which operates radio stations, television stations ­ TV3. TVI000, TV6 and ZTV ­ and digital and cellular systems telephone networks in Scandinavia as well as cellular systems in South America, eastern Europe, Asia and Africa. While infomercials account for some 60 per cent of the firm's turnover, its activities are wide ranging. It is Scandinavia's largest producer of commercial videos and short­form commercials. It puts together TV

programmes, operates TVG, its own Swedish shopping channel, runs

964 • Chapter 22 Direct and Online Marketing

sales operations through the Internet in 14 countries and hns an established electronic shopping mall in Europe. Tt has its own computerized order­processing system and runs a growing chain of retail outlets.

So far access to TV shopping channels has been restricted to homes with satellite or cable TV. In Europe, Germany, Sweden and the Netherlands lead in terms of household penetration of cable systems. However, over the next few years, marketers believe that the reach of TV shopping channels will increase as the cable and satellite market grows. TV shopping channel operators believe that countries such as the United Kingdom, France, Spain and Italy, with less than 20 per cent satellite and cable penetration, have great potential for growth. Many experts think

t h a t advances in two­way, interactive television will make video shopping one of the major forms of direct marketing by the end of the century. The recent launch of the Philips Web TV Box means that consumers need to own a TV and one of these boxes to make sales on the Internet ­ if you have an electric plug and access to a phone line, you can surf the Internet

on your TV screen without buying a computer. 1 "