Chapter 7 - Developing & Utilizing Electronic Media

Question 1

Forms of Electronic Media

Answer 1

• Television
• Radio
• Telephone

Question 2

Broadcast Facts

Answer 2

• Most universal fo 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

Question 3

Broadcast Media Spending on Direct Response Advertising

Answer 3

• In 2007, all sirect response adveretising spending amounted to $173.2 Million
  
  • DR Television spending = $22.8M
  • DR Radio spending = 5.0M
• DR Television and Radio spending amounted to $27.8M in 2007, or 16% of all DR advertising spending

Question 4

Television

Answer 4

• A measurable and accountable means of advertsing
• Provides immediate response
• Special-Interest Channels have allowed an increase of market segmentation

Question 5

Market Segmetation

Answer 5

• Who are the viewers?
  
  • 2 types: entertainment vs. information
• How receptive are they to a direct offer?
  
  • It depends!

Question 6

Measurements of Advertising Response

Answer 6

• Gross Rating Points (GRP) - used as a measure for “general” advertising
• Area 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!

Question 7

Cost Per Response

Answer 7

Formula ato calculate “cost per response”

CPR = Total promotion Budget / Total No. of Order/Inquiries Received

Question 8

How TV isUsed In Direct Response Advertising

Answer 8

1. To Sell Porducts
2. To Get Inquires
3. To GIve Support to Other Media

Length varies based on use!

Informericals - great of Direct Marketing

Question 9

Common Types of Business Using Infomercials

Answer 9

• Business Opportunity
• Beauty
• Health and Fitness
• Household
• Enterainment
• Kitchen
• Not for Profit

Question 10

Using Television Advertising

Answer 10

• Advantages
  
  • Provide a wide choice of cost alternatives
  • Quick response
  • 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

Question 11

Radio

Answer 11

• Became a major medium for direct response advertising in the 1920s
• Allow advertisers to segment listeners, e.g., by types of music, all-news, sport only, etc.
• Still a meduim today, but not widely used
• Radio listeners tune into les then 3 stations regularly, while TV viewers continuously swicth channels

Question 12

Using Radio Advertising

Answer 12

• advantages
  
  • Relatively low cost
  • Message can be meld wih disc jockey chatter
  • Can be up to 15 minutes
  • Per inquiry arrangments
  • Little preparation
  • Changes can be made up to the very last minute
  • More flexible than TV
• ​Disadvantages
  
  • ​No permnent response device
  • No visual impact
  • ​People listening are often in their vehicles and can not respond to the ad right away

Question 13

The Telephone

Answer 13

• Can be viewed both as a marketing medium and a response mechanism
• Telemarketing is 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.

Question 14

Inbound Calls

Answer 14

• Inbound Calls (where customers are calling in) -reactive telemarketing
• Application
  
  • ​Ordering or inquiring
  • Clarifying or requesting assistance
  • Responding immediately to an advertisment
  • Expediting processing
  • Making pledges or contributions
  • Obtaining financial data, stock. prices etc.

Question 15

Outbound Calls

Answer 15

• Outbound Calls ( where firm call the customers) - Proactive telemarketing
• ​​Applications:
  
  • ​Generating bew sales, including reorders and new product introductions
  • Generating leads
  • Serving present accounts
  • Reactivating old customers
  • Surveying customers, members, and voters

Question 16

Advantages/Disadvantages of Telemarketing

Answer 16

• Advantages
  
  • ​Two-way communication
  • Immediate feedback
  • Very flexible medium
  • Most productive medium
  • Cost-effective medium
• ​Disadvantages
  
  • ​Intrusive marketing medium
  • Lacks visual enhacement
  • Does not provide a permanent response device
  • Retaining highly trained telephone operators

Question 17

Telemarketing Technology

Answer 17

• 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

Question 18

Telemarketing Technology (cont.)

ANI

Answer 18

• ​ANI (automated number identification)
  
  • ​Identifies the number of the person calling
  • The number can be matched against a database

Question 19

Telemarketing Technology (Cont.)

Answer 19

• Predictive Dialers
  
  • Machines dial and connet only when a “live caller” is reached
  • Short Messaging Service (SMS)
    
    • Text message alerts to cellular phones

Question 20

Planning a Telemarketing Program

Answer 20

• Preparing the telephone scripts
  
  • ​Aids the telephone operator, like outline
• ​Training the telephone operators - 6 qualities:
  
  • ​Experience, computer literacy, people skills, reliability, organization & problem-solvling skills
• ​Integrating with other media
  
  • ​Television, direct mail, catalogs, print, radio, yellow pages, Internet

Question 21

Media Measurment

Answer 21

Media Measurement

• Inbound calls are generally less expensive than outbound calls.
• 3 components that make up the cost of telemarketing calls are:
  
  • ​Personel ( 50% of costs)
  • Equipment and overhead (30% of costs)
  • Telecommunications service (20% of costs)