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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
compact discs, and a variety of items are now promoted (and sold) this way. The major
shopping channel in the United States (QVC) accounted for over $3.9 billion worth of
sales in 2002, reaching over 84 million households and fielding more than 130 million
calls. 26 Industry studies project a 5 percent growth rate, to $15.6 billion, by 2006. 27
QVC is pursuing international markets (including the United Kingdom, Canada, and
Latin America) to follow up on its successes in Germany and Japan, partnerships
(United signed on as official airline of the “Quest for America’s Best” program), and
sponsorships (for example, Geoff Bodine on the NASCAR circuit).
Print Media Magazines and newspapers are difficult media to use for direct marketing.
Because these ads have to compete with the clutter of other ads and because
the space is relatively expensive, response rates and profits may be lower than in other
media. This does not mean these media are not used (as evidenced by the fact that
expenditures totaled over $9.8 billion in 2001.) 28 Exhibit 14-10 shows a direct ad that
appeared in a magazine. You can find many more in specific interest areas like financial
newspapers or sports, sex, or hobby magazines.
Telemarketing If you have a telephone, you probably do not have to be told
about the rapid increase in the use of telemarketing, or sales by telephone. Both profit
and charitable organizations have employed this medium effectively in
both one- and two-step approaches. Combined telemarketing sales (consumer
and business-to-business) totaled over $661 billion in 2001—with
$274.2 billion in the consumer market. 29 Telemarketing is a very big industry
and still growing. Consider these facts:
• Over 6.3 million people are now employed in the telemarketing
industry. 30
• Telemarketing accounts for 45.2 percent of all b-to-b marketing
sales. 31
• Marketers spend an estimated $76.2 billion a year on outbound telemarketing
calls. 32
Business-to-business marketers like Adobe Systems, Kaiser Permanente,
and Hewlett-Packard are just a few of the many companies that use
this direct-marketing medium effectively. B-to-b sales are expected to
reach $588 billion by 2006. 33
As telemarketing continues to expand in scope, a new dimension
referred to as audiotex or telemedia has evolved. Tom Eisenhart defines
telemedia as the “use of telephone and voice information services (900,
800, and 976 numbers) to market, advertise, promote, entertain, and
inform.” 34 Many telemedia programs are interactive. While many people
Exhibit 14-9 Volvo uses
an infomercial to attract
buyers
Exhibit 14-10 A directresponse
print ad
477
Chapter Fourteen Direct Marketing