May 2009 – Column: Industry Insight

Expert Discusses State of the Industry

By Chris Rosica

With an extensive background in most aspects of direct response marketing, Sonia Makurdsik, founder and president of SRM Direct, has helped her clients launch and manage several successful campaigns, which include Wonder Hanger, Twin Draft Guard and Core Rhythms. She recently shared with me her thoughts on the industry’s relevance in today’s consumer-centric environment.

Chris Rosica: How has DRTV evolved during your long association with it?

Sonia Makurdsik: That’s a complex question because I’ve been in this field for more than two decades. For simplicity’s sake, let me focus on the most significant and ongoing evolution to date, which in my opinion is the integration of online marketing. The advertising world has changed since the days when you watched the same channels and saw the same ads. Now, your product and brand message needs to be present wherever consumers choose to go to make purchases.

Newspaper and magazine readership is on a decline. Broadcast TV is being supplanted by Netflix and TiVo–all of which make it easy to skip commercials.

Many consumers have abandoned traditional media; they get their news and entertainment via RSS feeds and follow favorite TV shows through YouTube, DVD or pay per view.

With this said, DRTV marketers generate an average 30 to 40 percent additional sales through an online presence. The web has become a key revenue source for every successful DRTV company. In the digital world, DRTV marketers have an advantage. We know how to persuade and motivate a customer to action.

CR: Can you identify a current or emerging trend among direct response marketers that could have far-reaching consequences?

SM: Increasingly, the Internet is being used as a research tool. Some clients are testing the potential of direct response products and services through online outreach to consumers, such as by tapping into the opinions of customers who have bought previous offerings. It’s also a great focus group tool.

Also, with the proliferation of Internet-enabled technologies, marketers have fully embraced the concept of consumer centricity. Customers dictate what they want and decide how they want to make their purchases. Consumers are more empowered than ever before. They have unprecedented access to information on a global scale. They can purchase through the TV ad, online, by catalog or at retail stores. Therefore, we need to consider integrated advertising as the standard. When doing so, ensure the message is uniform across all channels–keeping the essence of the branding message “pure.” It’s essential to develop a strong name/logo, use the same color themes, and ensure that the unique selling proposition message is woven throughout print ads, websites, PR and other mediums.

CR: What is on the minds of direct response marketers right now?

SM: Outside of increasing our success rate, it’s how to increase the longevity of a successful product. With the rise of search engines, wi-fi and do-it-yourself (DIY) commercial marketing techniques, formats are now more integrated, drawing on a wide array of technology, from the traditional media to new media (referred to as “social media.”) We know that websites provide customers with information on the business and product; the Internet is used to enhance reach through pay-per-click, webinars and search. Social media is leveraging relationships and networks. It should be used to complement other online and offline initiatives.

Customers have a DIY approach: they are their own music producers, creating MP3 mixes, their own retail outlets through eBay and one-person TV stations with YouTube. So it’s important to understand and incorporate a marketing strategy that adds credibility to the message. Create a two-way conversation. Today’s consumers expect real dialogue with access to people of authority and the chance to have their input valued. Incorporate a direct-to-consumer PR branding strategy; worry less about “total control” of the message and more about meeting the needs of consumers. This opens up the opportunity to collaborate with the users, spread global word of mouth and establish profitable marketing relationships.

CR: In this economy, what is the relationship between DRTV ads and retail sales?

SM: Consumers are skeptical–considering the state of the economy–so now more than ever it is essential for companies to appear upfront, honest and innovative; marketers also must create the value story. Buyers are hungry for successful DRTV products–they understand the power of a well-run TV media campaign, but it’s vital for DRTV marketers to keep their word and spend enough media to drive awareness of the product. Prior to rollout, marketers have to think through the DRTV offer versus the retail offer. You don’t want your retail offer to completely jeopardize your TV offer. Obviously, TV sales will suffer, but if your TV offer is “exclusive,” with high-perceived value, you’ll be able to keep running it to support a successful retail distribution.

Additionally, retailers are interested in marketers who understand how to brand a product through word-of-mouth tactics. This practice is compelling because one-to-one conversations can blossom into many dialogues. This branding strategy engages influential users in a given community, creating a positive brand experience and propagating a “real” and unique brand message. Consumers review and rate products, even tell others where to buy it.

CR: How can electronic retailing (home shopping) be used to complement DRTV?

SM: It can be quite synergistic. Electronic retailing, for instance, is a great testing vehicle because marketers have longer to sell a product. By displaying and demonstrating on a shopping channel before developing a DRTV spot, marketers can find out what motivates buyers. Did the phone lines light up during a particular live demo? If so, a marketer knows to incorporate something similar into a short- or long-form show for DRTV.

For marketers with DRTV spots already airing, home shopping channels can help increase sales further. That’s because these customers are loyal viewers. They might be interested in something they’ve seen in a DRTV ad, but they trust the channel and prefer buying it through this venue.

CR: What do you think the highest priority should be now as DRTV evolves?

SM: I’ve witnessed the evolution of marketing through specific phases of growth, from cable network expansion, database marketing, branding via DRTV, electronic retailing and now cyberspace/Internet marketing. Marketing has always had a symbiotic relationship with technology. The effect of this relationship between marketing and technology has shortened the distance between the company and the consumer. In the early days, the company and consumer might not have crossed paths. Today, customers can increasingly buy products, obtain support and interact directly with the manufacturer. However, if you look at these two trends, it could pinpoint where marketing is falling behind. While there are savvy marketers who have made effective use of today’s technology, far too many have not. There are specific areas in which it’s key for the two to work together to reduce the distance between company and consumer, including the implementation of effective customer relationship management tools–an area controlled mostly by IT, just like a piece of software. It’s important to understand the historical dependence of marketing on technology and create a closer integration between marketing and IT.

We need to establish and maintain a close relationship between the two businesses and thereby develop a greater emphasis on the customer experience as a core marketing function.

Chris Rosica is author of “The Authentic Brand” (www.theauthenticbrand.com) and CEO of Paramus, N.J.-based Rosica Strategic Public Relations. Rosica is also a featured blogger and speaker for Inc. magazine.