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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
14. Direct Marketing © The McGraw−Hill
Companies, 2003
panies have branched into retail outlets, among them The Sharper
Image, Lands’ End, and Banana Republic. L.L. Bean recently opened
a superstore on the East Coast. As you can see by the following examples,
the products being offered through this medium have reached
new heights as well:
• The 2002 Neiman Marcus Christmas catalog was used to introduce
the 2004 Cadillac XLR—MFRP $85,000. Cadillac produced only 101
of the “Neiman-Marcus XLRs—99 for sale through the catalog, 2 for
charity. They sold out in 14 minutes! (Exhibit 14-7)
• Victoria’s Secret featured a $1 million Miracle Bra in its Christmas
catalog. Modeled by supermodel Claudia Schiffer, the bra contained
over 100 carats of real diamonds as well as hundreds of semiprecious
stones.
• Saks’ Holding Co., a division of Saks Fifth Avenue, offered a pair of
Mercedes-Benz convertibles in a catalog, with bidding to start at
$50,000.
• Hammacher Schlemmer featured a $43,000 taxicab and a $34,000
train set in its Christmas catalog.
• The Sharper Image offered a $375,000 silver saddle in its catalog (though it didn’t
sell any).
In addition to the traditional hard copies, catalogs are now available on the Internet
for both consumer and business-to-business customers. In some instances in the consumer
market the catalog merchandise is available in retail stores as well. In others,
the catalog and retail divisions are treated as separate entities. For example, if you purchase
through the Eddie Bauer catalog, you can exchange or return the merchandise to
the retail stores. Victoria’s Secret products must be returned to the catalog department.
At the Gap, the catalog is used to supplement the inventory in stock, and phone orders
for different sizes and so on can be made from the store and shipped for free.
Broadcast Media The success of direct marketing in the broadcast industry has
been truly remarkable; over 77 percent of the U.S. population report that they have
viewed a direct-response appeal on TV. 21 Direct-response TV is estimated to have generated
more than $79.3 billion in sales in 2002—with projections of $108.2 billion by
2006. However, forecasts are for slower growth in the next few years, averaging 8.8
percent through 2007. 22
Two broadcast media are available to direct marketers: television and radio. While
radio was used quite extensively in the 1950s, its use and effectiveness have dwindled
substantially in recent years. Thus, the majority of direct-marketing broadcast advertising
now occurs on TV, which receives the bulk of our attention here. It should be
pointed out, however, that the two-step approach is still very common on the radio,
particularly with local companies.
Direct marketing in the broadcast industry involves both direct-response advertising
and support advertising. In direct-response advertising, the product or service is
offered and a sales response is solicited, through either the one- or two-step approach
previously discussed. Examples include ads for magazine subscriptions, CDs and
tapes, and tips on football or basketball betting. Toll-free phone numbers are included
so that the receiver can immediately call to order. Support advertising is designed to
do exactly that—support other forms of advertising. Ads for Publishers Clearing
House or Reader’s Digest or other companies telling you to look in your mailbox for a
sweepstakes entry are examples of support advertising.
Direct-response TV encompasses a number of media, including direct-response TV
spots like those just mentioned, infomercials, and home shopping shows (teleshopping).
And as noted in Chapter 10, Internet TV has recently been introduced.
Infomercials The lower cost of commercials on cable and satellite channels has
led advertisers to a new form of advertising. An infomercial is a long commercial that
ranges from 30 to 60 minutes. Many infomercials are produced by the advertisers and
Exhibit 14-7 Neiman-
Marcus is one of many
successful catalog
companies
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Chapter Fourteen Direct Marketing