Special Report on DRTV & Telemarketing: Revolutionary, direct, action

A deep transformation of the relationship between the consumer and the producer demands that marketers should act fast and with innovation, argues David Stubley.

A deep transformation of the relationship between the consumer and

the producer demands that marketers should act fast and with innovation,

argues David Stubley.



Not so long ago it was argued that putting telephone numbers on ads

’spoilt the look’. Recently, I ran this thought past a friend of mine

working in a New York advertising agency whose simply reply was: ’How

quaint’.



Marketing has changed enormously in the UK over the past two to three

years, however, and with it has grown the importance of generating

direct responses to communications.



Innovative campaigns for the likes of Tango, Daewoo, BT and Martini have

made direct response eminently respectable to the marketing

establishment.



’Go on then’, the luvvies cry, ’stick a number on the end of the ad and

be done with it’.



But what we are witnessing goes way beyond marketing fashion, and

reflects a radical shift in the relationship between consumers and

producers.



This shift was clearly highlighted at last year’s Marketing Society

conference, where service and value were top of the agenda. The battle

lines are now drawn - the consumer is king, substandard offerings will

no longer be tolerated, and hollow claims can be spotted a mile off.



Growth in consumer confidence - both in using telephones as well as in

decision making - is one reason why DRTV is growing so fast. The other

is the determination of many companies to regain control over their

distribution though building closer relationships with their

customers.



This has given birth to a new breed of direct sellers across a wide

range of sectors. Whether it’s savings, insurance, holidays, computers,

mobile phones or catalogues, there are few categories unaffected by the

move to the direct approach.



The revolution is led by organisations like Virgin and Daewoo, fast on

their feet and happy to challenge the accepted model of marketing and

retailing.



The academics used to tell us that the three secrets of retailing were

’location, location, and location’, but in the electronic age, this no

longer holds true. Given databases and telephone lines, location can as

easily be a business park as a prime high street site. Now it is all

about ’technology, technology, technology’, and ’people, people,

people’.



How much longer will it be before the travel industry develops this

opportunity, or Tesco (already trialling an on-line service) removes the

misery of the weekly shopping trip. If it makes it easy for me and

doesn’t deliver raspberry yoghurts when I ask for vanilla, it will

certainly get the Stubley family business.



The direct trend is, of course, very good news for the TV companies.



Increasingly, it is not just a medium to use twice a year to coincide

with key sales peaks, but the central plank in an ongoing direct

marketing programme. Some 20 TVRs a week, across 40 weeks of the year,

might be enough.



This thought is one that Marketing magazine seized on last year,

declaring that, ’increasingly, response is becoming the primary measure

of success.



It it is simply not true that the two (branding and response) can be

equated’.



Traditional wisdom would support this assertion. After all, television

builds strong brands, which remain the primary defence against

commoditisation - this is especially true for the direct operators,

which are able to ’cut out the middleman, but not the marketing’.



However, in the absence of branch networks, a steady stream of new

business leads must also be generated. Hence the present ’brand or

response’ paradox.



But why should it be one or the other? It is possible to achieve both

through television, but it needs careful media planning and clear

objective setting.



For example, is the responsive priority one-stage lead generation (such

as, for example, with Oxfam), or two-stage lead generation (as with

Volvo)?



Is it a brand-response strategy (the choice of NatWest, for example),

the development of direct brand values (Direct Line), or a means of

underpinning the creative proposition (Tango)?



There are five potential strategies there, and the answer might well be

a mixture of all five. The challenge then is to build up a portfolio of

commercials which can be shuffled, almost like a pack of cards. Media

strategies can then be developed for individual sections of the day,

individual TV stations, or both.



You might, for example, choose to run out-and-out lead generators in

cheaper, off-peak slots, or on satellite channels. Providing that they

are, at worst, brand neutral, and that they are able to integrate

successfully with other parts of the programme, what’s the problem? The

minute they cease to deliver response, then you act in the same way you

would have done if direct mail or coupon response dried up - you go

somewhere else.



In prime-time, however, you might adopt a brand-response strategy in the

pursuit of much longer term differentiation. After all, it will also

give the telemarketing operators a rest in the shorter term!



For the many reasons I have outlined, I can see no reason why the growth

of DRTV should not continue exponentially. Last year, around 23% of

commercials carried carry telephone numbers, which means that the market

has doubled in volume between 1994 and 1996.



For its part, Channel 4 will commit itself to seeking to maintain its

status as market leader by continuing to provide what DRTV is all about:

targeted audiences. In addition, it will seek to add value wherever

possible.



Recent examples of this include a five-year commitment to industry

research, and the launch of 4-Link, a system enabling co-operating

telebureaus to confirm the screening times of commercials.



As competition intensifies, TV must also learn to re-invent itself.



This could be through encouraging ’event’ TV, such as the pioneering and

memorable Miller Time ads, or perhaps through the provision of long-form

infomercials in the early hours.



Alternatively, it might be through opportunities to cross-refer to

Teletext pages or Web sites, or through innovative sponsorship ideas and

the development of interactive/digital services.



Like our confident and knowledgeable consumers, however, I suspect that

it will be similarly-equipped individuals who take control of this brave

new world. They might be admen, media executives, direct marketers,

sales promotion specialists, or even management consultants. That’s the

exciting thing about the many challenges ahead - no one can do it

alone.



David Stubley is business development controller at Channel 4.



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