Dual Channels: DRTV, In-store Retail

Retail channel marketeers often present expansion strategies to manufacturers of consumer goods that might combine both Direct Response TV and in-store retail. But the two silos usually co-exist, with unique ROI yardsticks, compensation plans, retail pricing, and even product lines.

When DRTV enables in-store sell-through, it becomes a self-liquidating promotion, one  in which the cost of the DRTV campaign is covered by the incremental revenue generated by the promotion.

Sales thus result via DRTV fulfillment, meeting MER and CPO target rates; and also result from shoppers who see it on TV and walk in to stores to kick the tires and squeeze the Charmin before buying.

The beauty of a dual DRTV/In-store Retail channel strategy is that manufacturers can route their advertising $$ to metro areas that have a high concentration of retailers who sell their products.  Or, retailers themselves can flip it around and launch a DRTV campaign about their products, with calls to action to both CALL call centers and VISIT stores.

What an efficient way to bootstrap retail channel expansion for manufacturers who are new to retail, and a great use of advertising money!  Response Magazine April issue covers this cross-pollinating topic nicely. Read more here.

2011’s Disruptive Business Trends

Happy New Year from Hanson Marketing!

Entrepreneur magazine carried an excellent “look ahead” article in December that identified 10 disruptive business trends coming in 2011. It’s a fun article to help kick-start your 2011 business planning. Take note:

Boomers’ influence is growing along with their population … 76 million and counting. Where and how they shop, work and live signals new revenue streams for everyone from architects to retail developers.

Home fitness is counted among the disruptive, too, with sales growth coming via, among other outlets, direct response TV (DRTV). “As people continue to spend cautiously, working out at home becomes more popular, too. The quality and variety of options has improved greatly in recent years, he says. “As Seen on TV” products are leading this explosion–home fitness was the top-selling infomercial category in 2010…”

Read more.

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