Transcript Broadcast and Other Electronic Media

Developing & Utilizing
Electronic Media
Chapter 7
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Publishing as Prentice Hall
Please Note:
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Opening Vignette
Smithfield Foods
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Forms of Electronic Media
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Television
Radio
Telephone
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Broadcast Facts
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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
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Broadcast Media Spending on
Direct Response Advertising
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In 2007, all direct response advertising
spending amounted to $173.2 Million
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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
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Television
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A measurable and accountable means of
advertising
Provides immediate response
Special-Interest channels have allowed an
increase for market segmentation
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Market Segmentation
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Who are the viewers?
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2 types: entertainment vs. information
How receptive are they to a direct
offer?
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It depends!
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Inc. Publishing as Prentice Hall
Measurements of Advertising
Response
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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)
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Response vs. recall! Best for direct marketers
Direct marketers must always relate advertising
results to advertising costs!
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Cost Per Response
Formula to calculate “cost per response”
CPR =
Total Promotion Budget_________
Total No. of Order/Inquiries Received
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How TV Is Used In Direct
Response Advertising
1. To Sell Products
2. To Get Inquires
3. To Give Support to
Other Media
Length varies based on
use!
Infomercials – great for
Direct Marketing
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Common Types of Businesses
Using Infomercials
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Business Opportunity
Beauty
Health and Fitness
Household
Entertainment
Kitchen
Not for Profit
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Using Television Advertising
Advantages
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Provide a wide choice
of cost alternatives
Quick responses
Large impacts in short
time periods
Disadvantages
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Short-lived responses
High cost to produce
and place TV ads
Limited time
Lack of tangible
response devices
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Publishing as Prentice Hall
Radio
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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
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Publishing as Prentice Hall
Using Radio Advertising
Advantages
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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
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No permanent response
device
No visual impact
People listening are
often in their vehicles
and can not respond to
the ad right away =
NOISE!!
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The Telephone
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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.
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Inbound Vs. Outbound Calls
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Inbound Calls (where customers are calling
in) - reactive telemarketing
Applications:
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Ordering or inquiring
Clarifying or requesting assistance
Responding immediately to an advertisement
Expediting processing
Making pledges or contributions
Obtaining financial data, stock prices, etc..
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Inbound Vs. Outbound Calls
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Outbound Calls(where firms call the
customers) - Proactive telemarketing
Applications:
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Generating new sales, including reorders and new
product introductions
Generating leads
Serving present accounts
Reactivating old customers
Surveying customers, members, voters
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Advantages/Disadvantages of
Telemarketing
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Advantages
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Two-way
communication
Immediate feedback
Very flexible medium
Most productive
medium
Cost-effective
medium
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Disadvantages
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Intrusive marketing
medium
Lacks visual
enhancement
Does not provide a
permanent response
device
Retaining highly
trained telephone
operators
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Publishing as Prentice Hall
Telemarketing Technology
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DNIS (dialed number identification
system)
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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
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Telemarketing Technology
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ANI( automated number identification)
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Identifies the number of the person calling
The number can be matched against a
database
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Telemarketing Technology
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Predictive Dialers
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Machines dial and connect only when a
“live caller” is reached
Short Messaging Service (SMS)
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Text message alerts to cellular phones
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Planning a Telemarketing
Program
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Preparing the telephone scripts
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Training the telephone operators – 6
qualities:
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Aids the telephone operator, like an outline
Experience, computer literacy, people skills,
reliability, organization & problem-solving skills
Integrating with other media
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Television, direct mail, catalogs, print, radio,
yellow pages, Internet
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Media Measurement
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Inbound calls are generally less
expensive than outbound calls.
3 components that make up the cost of
telemarketing calls are:
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Personnel (50% of costs)
Equipment and overhead (30% of costs)
Telecommunications service (20% of
costs)
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Publishing as Prentice Hall
Case Study
GEICO: Direct Response TV
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Publishing as Prentice Hall