TUTORIAL 7:
Developing & Utilizing Electronic Media (Week 8)
CLASS ACTIVITIES
:

Revise Topic 7

Tutorial questions

Case Discussion Questions
Learning outcome

Know the characteristics and the direct marketing uses of television as well as its advantages and disadvantages and especially the opportunities it presents for market segmentation

Know the advantages and disadvantages of radio as a direct-response medium, and the possibilities for market segmentation in utilizing the medium

Understand uses of telemarketing, including specific applications of inbound and outbound calling

Understand telemarketing technology and be alert to the opportunities being presented by the emerging technology of television/telephone hook-ups

Be able to describe how to plan a telemarketing campaign
Tutorial questions
1.
Broadcast media (television and radio) are the most universal of all media, but what limits their effectiveness for direct response advertising?
With its universality, broadcast reaches the full range of geographic, demographic, and psychographic market segments, which are not always easily separated. Relatively high costs associated with relatively low response rates, however, result from reaching (and paying for) nonqualified prospects. Measurability and accountability, hallmarks of direct marketing, are difficult, if not impossible, with the broadcast media. Still, the potential reach is there, if it can be harnessed.
2.
Suggest ways to segment markets through broadcast media.
Market segmentation in broadcast, as in other media, is one way to maximize direct response.
Television programming plays an important role in defining specific audience segments: sports, news, comedies, westerns, mysteries, variety, documentaries, wrestling, and opera or drama, can describe viewers and thus provide a showcase for a particular direct response

offer. Other factors that can help segment markets include time of day and day of the week.
Radio stations tend to develop strong images of programming, too, attracting particular types of listeners. Program formats can segment markets into an array of subgroups that is virtually unlimited: all-music, all-news, all-talk. Program format doesn't stop with just
“music,” however: music can be "rock" or "classical" or "easy listening" or
"country/western" or "show tunes" or nostalgic "music-of-your-life" programming. There are many different formats available to satisfy the listening desires of all consumers.
Listeners are loyal to certain stations, so direct-response advertising, presented within an established program by a known personality, derives an air of credibility or even an implied endorsement from the station announcer.
3.
Explain the difference between inbound versus outbound calls as they are related to telemarketing.
The telephone occupies a dual position in direct marketing. Like print or broadcast media, it is, outbound, a conduit for direct-response advertising. Outbound calls enable a company to place a call to the customer or prospect to make a sale, to offer information hoping for a later sale, or to provide customer service. Inbound, it is an alternative to mail or fax or web site for the response itself. Inbound calls take place when customers are calling to place an order, to request information or obtain customer service. Inbound calls are reactive in that the initiator of the marketing communications is the customer, while outbound calls are proactive because the direct marketer is the initiator of the marketing communications. The telephone is an interactive medium, which provides the flexibility and immediate response of a personal conversation. It can be especially effective when used in concert with other direct response media, such as direct mail or a web site.
4.
Why is it necessary for telemarketers to have a script to follow when communicating with customers or prospects?
It is necessary for telemarketers to have a telephone script to follow when communicating with customers or prospects to assist the telephone operator in communicating effectively with the prospect or customer. Developing scripts offers the dual challenge of determining the right words to gain a favorable customer response or impression and, at the same time, minimizing the length and cost of a call.
5.
Explain the role of telephone marketing for companies in today’s highly technical world.
The telephone is an interactive medium, which provides the flexibility and immediate response of a personal conversation. It can be especially effective when used in concert with other direct response media, such as direct mail or a Web site. To those who know how to use them, the interactive features of the telephone are, in many cases, replacing the face-toface contact of a salesperson’s visit to a prospect or a buyer’s visit to a retail location. The telephone obviates the need for travel and makes it possible to talk with and not just to

customers and prospects. The application of the telephone to direct marketing efforts is a most powerful combination. No other direct marketing medium can match its effectiveness.
Telemarketing is actually a form of personal selling, since it occurs on a person-to-person basis but without the face-to-face aspect .

Case Discussion Questions: GEICO Direct (Textbook p.189 – 194)
1.
GEICO’s marketing team took great risk in agreeing to a new approach to directresponse advertising. What were two major features to their approach and how did their approach set them apart from other insurance companies?
GEICO’s marketing team’s thinking was literally “out-of-the-box” and quite contrary to that of traditional insurance companies. While a great many companies utilize the tools and techniques of direct marketing today, many would feel that the innovative and humorous direct-response television commercials utilized by GEICO – which have been quite successful – would possibly be beneath their dignity. One example of the innovativeness of
GEICO’s approach have been their use of the short (15-second) spots, where two spots are paired, allowing them to create customized spots for specific markets and to “break through” the media clutter with short, single-theme message. A second example is the use of humorous characters such as the GEICO gecko and the cavemen.
2.
With its heavy emphasis on humor GEICO has managed to gain the attention of many prospective customers. Was this risky? Why or why not? Could GEICO have achieved the same success without the use of humor?
This question is partially answered by the response to the preceding question. Undoubtedly, there are many other creative strategies which could be tested … some of which are being used today by GEICO’s competitors. Many direct-response insurance companies offer reduced premiums for an introductory period of coverage. Others build their brands and images: Allstate’s “You’re in good hands” and State Farm’s “good neighbor” approach are two examples. Still others, like AARP, appeal to the specific interests of a market segment such as senior citizens.
3.
How did GEICO differ from the norm of television advertising and was it effective?
See the answer to question #1, above. The biggest difference is a humorous approach that is especially clever. Obviously, this has been quite effective.
4.
Has the use of emotional appeals been successful for GEICO? In your opinion, would the use of rational appeals be as successful based on what you know about this company and the industry? Why?
Response to this question, in consideration of what is demonstrated in the case and with reference to the positive responses to the preceding questions, should be judgmental on each student’s part. Ideally, the student should be a devil’s advocate and question the program,

successful or not. In doing so, the best arguments would be those that can be substantiated with factual research.

5.
In your opinion, what could GEICO do to maintain such a spectacular marketing performance in the future?
GEICO, having demonstrated total success thus far, would be wise not to rest on its laurels.
It is axiomatic among successful direct marketers that the creative process is ongoing … and that new ideas should be tested continuously. This is often done through group brainstorming … looking at what competitors are doing … and building in past trials.