Direct Response Marketing Foundations
They couldn’t be more different
This page will discuss the differences between brand institutional advertising and direct response marketing.
It is important to understand the differences between the marketing we do and advertising done by large companies such as Walmart, Home Depot, Coca-Cola, and others.
Before we get into the differences between brand institutional advertising and direct response marketing, I want you to understand the distinction between advertising and marketing. Particularly on the internet.
A lot of marketers, and a lot entrepreneurs, confuse or confound marketing and selling. They believe that marketing and selling are the same activity, with the same goal.
Marketing and selling are two different things.
Let’s start with advertising and selling. Because advertising is more like selling than direct response marketing properly executed, I combine them.
Selling and advertising are all about the product/service. It all comes down to the benefits, features and advantages. It all comes down to the price, terms, guarantee, and bonuses. Selling and advertising are appropriate when you are communicating with prospects who already know the type of product/service they want.
These prospects are interested in understanding what makes your product or service different from the rest. Our communication is all about product and nothing else. We want to show prospects why they should choose our product over others. This is selling.
Marketing is all about the prospect.
Marketing is about the prospect’s needs, pain, obstacle and finally what the prospect wants… the outcome, transformation, or result.
Marketing is all about showing prospects how they can achieve the desired outcome with the products and services we offer.
Marketing can create demand for your product/service before you even speak about it.
Advertising and selling is all about the product/service and convincing prospects why they should choose it.
Marketing is about getting prospects to value your product or service before they ever speak about it.
Peter Drucker, one the most influential management gurus of all time, said it best: “The objective marketing is to make sales superfluous and to make selling unnecessary.”
Marketing done right, as you will learn in this book, can take your prospect’s desire to get a result and turn it into demand for your product/service.
Advertising and selling are dependent on the demand for your product.
This is how you can tell the difference between selling and marketing.
Let’s now talk about brand institution advertising in comparison to direct response marketing.
Institutional advertising is advertising or promotion that aims to create or reinforce an image, stay top-of-mind and keep the brand or product name visible to the market.
Direct response marketing is designed for generating a response. It is a precise and quantifiable response that generates a response. Direct response marketing always includes a call to action. Direct response marketing isn’t about creating or establishing a brand. It’s not about developing or setting positioning. No.
Direct response is, as the name suggests, all about getting a response. You will learn more about this in the next chapters. Direct response doesn’t care what it is, it’s about getting a specific, measurable response.
Let’s take a look at an example.
This is an advertisement for a fat-burning supplement. This is an example a brand institution ad. This ad tells you all about the product without any call to action or offer. This ad is all brand recognition.
The right screenshot, which also sells a fat burner (also available in the screenshot below), offers a deal for a bottle. The call to action is clear. The prospect is asked to respond in a specific way. This is the main difference between direct response marketing and brand institution advertising.
The above chart is one that I love, courtesy of Rainstorm Media. It is easy to see the differences between branding (i.e. On the left, you can see the difference between branding (i.e.
The goal of branding is to create the opportunity for future sales of a product/service.
It is based on the belief that if we build enough brand awareness and mindshare, and do it enough often, eventually we will make a sale.
Direct response means selling a product/service right now. Better yet, direct response is about eliciting a reply right now.
Branding is about creating awareness and staying top of mind. Direct response is all you need to generate immediate revenue.
Branding is about creating future sales. Direct response means creating buyers or leads today. Reach is often used to track brand institutional advertising. This is based on the vague idea of brand recognition. Conversions are used to track direct response (i.e. Conversions (i.e. leads or sales) are used to track direct response.
Direct response answers questions such as: How many people replied? How many leads were we able to get? How many new customers did we get?
The cost of creating brand awareness is often a measure of branding.
Dollars generated are the measure of direct response.
Branding is about creating awareness. Direct response is about creating an impulse to act, to buy.
Branding isn’t about selling products, but building brand recognition. Direct response, on the other hand, is about getting a response from the prospect. Now. Right now.
So, by looking down a little on the chart from the previous page, branding promotes an idea. It also promotes a lifestyle. Direct response, on the other hand, promises a specific benefit and a specific outcome.
With our headlines and/or marketing messages, we communicate the promised result directly. Branding, however, is more about a slogan or tagline than a promise.
There are several reasons that entrepreneurs should use direct response marketing over brand-institutional advertising.
Trackability is the first. As you will see, this simply means that every dollar invested and every prospect action can be tracked.
We can track all traffic, leads, sales and other information. We can track every component of a direct response marketing campaign. This means that we can measure and track everything we do.
We know how much money we have made back for every dollar that we invest. We know how much money was generated for each web page that we have put up as part a direct response marketing campaign.
No matter what page it asks prospects to do, we can measure its performance. We can measure everything.
This means that we can hold everyone accountable.
It’s difficult to track where sales come from with brand institution advertising. It doesn’t matter if they are coming from a website or a radio ad.
We can track everything with direct response. We can therefore hold every dollar responsible, every page responsible, and every word accountable in our entire campaign. This allows us to improve each piece.
Let’s say a brand advertiser runs a radio ad, a print advertisement, and a direct mail campaign. Imagine that they don’t generate many sales. It’s then extremely difficult for them attempt to improve their marketing and advertising.
Are the problems caused by the radio ads? Or is it the print ad What about the direct mail campaign. Which part of the campaign is the problem
Direct response allows us to track everything and measure everything so that we can improve everything. Why? Because it is possible to improve what gets measured.
We have the ability to use metrics, numbers… some simple data…to fix, improve, and enhance every aspect of our campaign.
This allows us to improve the performance of direct response marketing campaigns. This includes sales, lead generation, and many other areas.
The next reason we use direct responses is affordability.
Direct response marketing is cheaper than brand advertising for small-business owners and operators.
Advertising for brand institutions can be expensive. It can take time before you see any return on your investment.
Direct response is a way to get a quick response. We also track and measure how fast each dollar comes back in.
We can start with a modest budget. From there, we can work our way up. Our tracking ensures a positive ROI. It can also be more affordable right from the beginning.
Direct response marketing can also be extremely profitable. We can put a dollar in and get back $1.10, $1.20, or $1.50. We can start small and scale up. Profits are often seen right away.
The final reason direct response is used is its speed of results (i.e. leads produced, sales, etc. ?
Sales can be seen immediately, often within hours of a campaign being live.
However, brand institutional advertising can take a while and a lot more money to establish enough market reputation and mindshare to generate sales.
Do you make sense?
Direct response is a smart choice for small business owners and managers.
Here’s a recap:
Everything can be tracked. Everything can be measured, so we can hold everyone accountable. Everything can be improved.
You can start small and grow. We’re also profitable because we do it. We can quickly see a return on our investment.
Direct response can be divided into two types or general categories.
There are two types of campaigns: a two-step or a one-step.
A one-step campaign is when we place an ad and somebody clicks on it. Then they go to a marketing page, where they are immediately presented with a direct response message.
In this instance, the prospect is offered an immediate offer and a call to action. The call to action in most cases is to the prospect to purchase. A button or link is provided to direct the prospect to an order form in order to make a purchase.
Because we are bringing prospects from an ad to a sales page, it’s called “one step”. It’s one step.
Then, we have the two-step campaign.
The two-step process involves the prospect being brought to an opt-in page, also known as a Traffic Captivation Page, after clicking an ad. The prospect must raise their hand to indicate that they are interested in your product or service.
The prospect fills in their contact information (i.e. email address) and is taken to a webpage with an offer. The prospect enters their contact details (i.e. email address) and is taken to a page with an offer or call to action.
For new marketers, I recommend that you start with a 2-step campaign. Your follow-up (i.e., the messages you send to your prospects after they have seen your offer) will make up the bulk of your sales and conversions. The messages that you send your prospect after they have seen your offer.
What kind of follow-up? Keep reading. We’ll be discussing it in detail very soon.
Let’s just say that a one-step campaign is a campaign where someone clicks on an advertisement and then goes to your sales page. If they don’t purchase, they are gone.
Meaning: We can’t follow up prospects who leave your offer page without buying, so we use retargeting and other advanced techniques.
Instead, the two-step campaign generates leads of prospects who opt-in to your Traffic Captivation Page. After they give you their contact information and are sent to your offer page, If they don’t buy and leave, we can still follow up with them. We can also bring them back to our offer page as many times as they’d like.
Remember: The fortune lies in the follow up.
Your follow-up will be the most important factor in your sales and conversions, as I mentioned.
It is important to start with a two-step campaign when you are just starting out. As your marketing skills improve, you can then move on to the next step.