Direct Response 101: The Industry and Your Invention

If you’ve ever seen the Home Shopping Network or seen a commercial for an As Seen product on TV, you’re familiar with direct response marketing and advertising, even if you do not know the term. Direct response marketing is designed to respond immediately and forces the viewer to take a specific action, such as buying a product.

In the rare case that your invention is licensed by a company, direct response marketing is a common way to sell it. This includes ‘infolercials’, also called ‘direct response’ television called DRTV. It can also be radio and internet ads. What is the difference between direct response marketing and other types of marketing?

There are two main types of marketing strategies: direct response and branding. The purpose of branding is to remind customers and prospects of a brand and the product and services it offers. The main idea behind branding is that the more often you run attractive ads, the more likely it is that people think about your brand, research, consider and eventually make a purchase. Most of the ads you see on TV are brand ads. They often tell a story or go in search of 'soft sell’. They tell the public about a product or service and inform them about the functions and benefits, but without giving them the opportunity to take action at that moment.

This is where direct response marketing differs. Direct response is action-oriented and traceable and more hard to sell . This is what you need to know about DRTV:
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It is traceable. Because of tracking web and phone numbers, a company knows when someone makes a purchase, which ad has let them buy. Compare this with brand marketing; nobody will ever know which of the hundreds of McDonalds ads forced a customer to buy a McDouble.

It is measurable. Because a business knows which ads are being responded to and how many sales from each ad have been received, they can measure the effectiveness of each ad. They can then create, drop, or create new ads to display and generate more sales.

It offers a problem and a solution. Instead of listing only the characteristics and benefits of a product, a direct response ad provides a situation where the product would be useful. Often a problem is presented and the advertisement shows a solution where the product is used.

Formulation is important. Direct response marketing makes use of convincing message exchange; the words that the ad uses are incredibly important. It uses striking heads that speak to the intended audience.

It targets a specific audience. Specific types of people can be targeted by geographic target groups, preferences and dislikes and buying patterns. Direct response ads are meant to respond to a narrow and specific target market.

It offers value. Generally, a direct response ad generates an offer with a volume ratio, such as offering a discount product for a limit time or a higher quantity for the same price.

It requires an answer. Direct response advertisements use a 'call to action’, a statement that tells the audience what to do next. It instructs them to call a number or visit a web address to take the next step. Because the public is guided along a certain path, it is a very attractive offer.

Direct response television works for new products because companies can test which products sell well. They have an easy way to keep track of which products are doing well and the hard numbers to prove it. For this reason, many new productsare included in DRTV segments in a stand-alone infomercial or with other products on a television network.