Response Magazine's DRTV Best Practices Primer Part I in a New Series: Using Research the Right Way
1 Jan, 2003 By: Rick Petry ResponseHow can you evaluate whether your product is right for DRTV? Studying the market and your competitors are just two ways to look into the answer.
Every year the best and brightest of the DRTV industry gather in Las Vegas for the Electronic Retailing Association (ERA) annual show. It's an appropriate venue because the chances of success in DRTV are akin to a high-stakes poker tournament. When programs succeed, the results can enrich marketers beyond their wildest dreams. But for every runaway hit there are arguably 10 or 20 also-rans that never get past the initial media test.
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Why is this so? Because often the mechanism for determining consumer appetite for a given product is the DRTV program itself. Hundreds of thousands of dollars are spent developing these campaigns based upon a hunch that the public's appetite for a product is hearty.
So how can a marketer beat the odds? The answer is a not-so-sexy and much-maligned word: research. Using research to size the market for a given product as well as understanding what aspects of your offer will resonate with consumers is fundamental to any marketing program. On top of that, DRTV has its own idiosyncrasies that have to be understood and appreciated.
There are two types of research: primary and secondary. Primary research is first-hand research, such as consumer interviews conducted for a specific purpose, including garnering attitudes toward a product. Secondary research uses an existing body of knowledge that can be tapped by a marketer to gather different types of understanding.
An example is Find SVP, a subscription-based research resource that is one of the major databases covering thousands of publications, breaking news, research reports and surveys on companies and product categories. With the advent of the Internet, secondary research is readily available and tends to be less costly.
Following are some suggestions about how to use general research methodologies as well as unique DRTV tools to help stack the deck in your favor. At Euro RSCG Tyee MCM, we begin by asking a series of seven crucial questions. Optimally, you will know the answers before going to market.
What is the potential market size for a given product?
If there are 105 million U.S. households, how many of those homes are candidates for your product? For example, let's say your product is a dog-training program. To be a candidate to purchase the product, a viewer must own a dog or intend to get one. Therefore, you need to size the dog-owner market. You could seek free secondary research online or even use subscription-based syndicated data, such as that available from Mediamark Research Inc. Additionally, measuring market appetite - to see if there is a population who wants your product - could be achieved via an online study. Online penetration is nearing 62 percent in the United States, making online research nearly representative of the overall population and, therefore, a credible choice.One of the idiosyncrasies of DRTV is that a niche product can be successful if its unique selling proposition (USP) has powerful meaning for a particular group. USP refers to the single most important attribute that makes your offer different from, and more valuable than, that of your competition. For example, The Midwest Center for Anxiety has created a franchise out of its products for panic-attack sufferers because the absence of other solutions and its promise of relief hits home with the target consumer.
Who is the target audience for the product?
"Everyone" is the wrong answer. While one can argue that certain categories, such as kitchen products, have a broader base of appeal than tapes for panic-attack sufferers, an understanding of the primary and secondary demographic and psychographic characteristics of your core consumer is essential. Once secondary sources have revealed the basic demographics of your target, a segmentation study is an excellent tool for differentiating core vs. secondary audience attitudes.Through such a study, you'll also learn about your aficionados and why they do and think what they do. Segmentation studies can be done through either qualitative or quantitative primary research, or if you're fortunate, through secondary sources like online articles.
Does the product's USP resonate with these consumers?
Put another way, does anyone care? Do not be blinded by your own enthusiasm for a product - test it with the public. You must look for your best customer and design a position that matches his or her wants and needs to an advantage that only you can offer.Start with understanding current customer behavior and alternative methods they may use instead of your product. Again, this can be learned through either primary or secondary research and incorporated into the segmentation study. Preferably, qualitative research would be used to get at your specific situation. Interview customers in person in more than one market to glean insight on how to attract the right customers and differentiate yourself so that what you offer is aligned with their desires.
A secondary consideration is to find out what alternatives your new product would replace for your consumer. By understanding what else is out there, you can begin to quantify how competitive the marketplace is and how original or improved your product offering truly is.
What direct competitive products exist, and how are they positioned and marketed?
Survey the marketplace to understand what other products and what marketing environment you will be competing with. This can be accomplished by walking store aisles, talking to salespeople or through secondary sources to learn current market activity, trends and a sense of competitive market share.Scan online press release searches, articles searches and competitive Web sites. All of this market intelligence will be helpful in understanding where your offering aligns in terms of similar product attributes and how you should sell it via DRTV.
In addition, probing consumers for their attitudes toward competitive products will ferret out the benefits and features that mean the most to potential customers. It will also give you an idea about what a hierarchy of their objections may be. Also, understand the social trends and demographic shifts that affect your category. For example, the recent economy bust has caused ripples in social attitudes, resulting in retrenchment behavior of less travel and more time spent at home.
At the same time you are gathering this intelligence, get an understanding of the rational and emotional considerations that lead a prospect to purchase. This information can be extremely useful in structuring your creative approach. In an infomercial, you have the opportunity to take a consumer through the entire buying process and conclude a sale. One-on-one interviews with consumers or focus groups can be helpful in ascertaining this type of information.
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