Glossary of Terms
- Ad-Allowable - The amount of money per order that an
advertiser usually allows for the purchase of media. Ad-allowable
is usually a Cost Per Order (CPO) or Cost Per Acquisition (CPA) that makes
profitable direct response advertising.
- Agency Commissions - The advertising agency commission
received on media placed on behalf of the client. The standard agency
commission is 15% of the media dollars place. A good direct response advertising
agency will consider arrangements that can reduce the standard 15% fee.
- After Market - The marketing of the product after the
DRTV campaign (DR spots or Infomercial) is generating sales. Using
a combination of direct mail, internet e marketing and out-bound telemarketing,
an advertiser can generate additional sales or convert leads or inquiries.
- Award Winning Direct Response TV Commercial – The
Direct Marketing Association (DMA) provides annual awards for best direct
response television commercials (TV and Radio), as well as best multi-media,
integrated marketing campaigns. The Echo Award and the Henry
Hoke Award are presented annually at the DMA convention.
- Award Winning Infomercial – The ERA or Electronic
Retailing Association provides annual awards for best Infomercial,
best Infomercial product, and best Infomercial presenter.
- Back-End Sales - Any sales that is generated from a customer
that was developed from a DRTV campaign. Back-end sales includes continuity
programs, re-orders from customers, and any other additional sale as a result
of all types of marketing including direct mail, telemarketing, credit card
syndication and Direct Videos.
- Broadcast Stations - Any television broadcast station,
local network affiliate or independent.
- Cable Networks - Any satellite fed programming
service that is picked up by local cable operators.
- Cash Flow Analysis - Financial projections created specifically
for the purposes of analyzing the profit potential of a DRTV campaign.
- Character Generator - A computer that is used in the
post production phases when editing a commercial or Infomercial.
- Collateral Advertising - Any document or piece of literature
that is used as supporting material in a DRTV campaign.
- Continuity Sales - A marketing strategy that provides
the customer with the opportunity to receive the product or service on an “automatic” or
- Compelling Copy - The art of using “selling” words,
phrases and selling techniques that create a persuasive, or influential
sales presentation that sells the customer. Uses of Neural Linguistic
Programming or Hypnotic Selling techniques is compelling copy.
- Consumerism - The term used to define the marketing approach
based on the “service-based” idea that the “customer is
- Cost of Product - The actual fixed and hard cost of manufacturing
a product and getting it to the fulfillment center.
- Cost Per Order (CPO) - The actual cost of media dollars
spent to generate one order.
- Cost Per Thousand (CPM) - The amount of advertising money
it takes to reach one thousand viewing television households HH (using an
audience measuring company’s statistics)
- Credentialized Endorsements - Any testimonial endorsement
from a celebrity or a knowledgeable professional of “highly perceived” credibility.
- Credit Card Syndication - The marketing strategy used
when inserting collateral advertising literature in a credit card bill,
usually sharing in the profits.
- Cross Promotion - All integrated marketing solutions
that help reinforce the DRTV campaign and support the product’s sales
and brand name awareness.
- Customer Service - The service provided by the advertiser
that keeps in touch with the customer, answers any questions or handles
any complaints, including refunds and returns.
- Direct Mail - The direct marketing and advertising strategy
used when the advertiser sends a “direct mail” advertisement
solicited or unsolicited to a mailing list of the primary target market
via the mail.
- Direct Marketing - All forms of direct response advertising
that is looking for an immediate, direct sale including DRTV, direct mail,
radio and print, the internet, direct videos, catalogs sales and mail order,
and network marketing (Multi-Level).
- Direct Response Television (DRTV) - All forms of direct
response advertising on television that solicits an immediate response from
the viewer via a telephone number, including DRTV spots and the Infomercial.
- Direct Video - The video equivalent of a direct mail
piece or a re-edit of the Infomercial sent a prospects home (in-home sales
presentation). Direct Videos are compelling electronic sales presentations
that deliver a powerful message—carefully leading a prospect, step-by-step,
down the path leading to a new customer.
- DRTV Spots - Short form Direct Response Television Advertising
(DRTV), are usually 120, 60 or 30 second commercials.
- Electronic Goldmine - The media and marketing strategies
in which Integrated Marketing Campaigns are utilized to maximize profits
and minimize risk. Integrated It is also the result of a profitable
Integrated Direct Marketing campaign.
- Electronic Retailing - Like DRTV, electronic retailing
is a phrase used by some direct marketers describing the retailing of a
product using the television and Internet to sell products.
- Focus Groups - A group of typical consumers that assist
marketers in their research by reviewing, analyzing and focusing on the
benefits and weaknesses or any product. Focus groups are usually engaged
when there is an insufficient customer base from which to get this valuable
feedback on a product or service.
- Foreign Sales Distribution - All forms of sales generated
in the international marketplace - outside the United States.
- Free Standing Inserts (FSI) - Print advertising materials
that are inserted into a local or national newspaper or magazine.
- Fulfillment - The process of shipping the product to
the customer. Fulfillment receives the customer order, provides inventory
control and tracks the order.
- Gross Sales - Usually defined as the total sales minus
any shipping and handling costs.
- Home Shopping Channels - Cable networks and satellite
programming services that sell products 24 hours a day. QVC and Home
Shopping Network are two such services.
- Hypnotic Selling - Copywriting techniques that include
certain words, phrases and “style” that is compelling and persuasive. Hypnotic
selling also uses words that can create “future pacing” or a
strong “suggestion” that can move a prospect to action now and
or in the future.
- Infomercial - The long form of direct response television
advertising. All successful, profitable and award winning Infomercials
have certain proven direct response advertising ingredients. They
are an in-depth electronic sales presentation of a product or service, directed
towards a primary target market that has as its primary purpose - generate
direct and immediate sales from an 800 telephone number or website by providing
an informative and entertaining television program. The Infomercial
is a program length advertisement. They are usually 28 and one half
minutes long, although they can be longer or shorter.
- Infomercial Marketing Company– A company that provides
full service direct response Infomercial production and media placement.
Many of the leading Infomercial producers are located in southern California.
- Integrated Marketing – Integrated Marketing takes
full advantage of all marketing vehicles, and every rich vein of the Electronic
Goldmine – including short-form direct response television and radio
commercials, infomercials, Direct Video DVDs, the Internet, Flash, Streaming
Video, and much more.
- Integrity Marketing – Marketing for the long term
benefit of the customer by providing extra benefits and services with honesty
- Inquires - The consumers who do not buy a product from
the initial DRTV campaign but request additional information (free information).
- Key Selling Messages - A list of the primary selling
benefits that can be received from ownership or a product. The
key benefits include the unique selling proposition (USP) of the product
and all of it features. It also includes any marketing strategies
that are provided that help sell the product. i.e. Risk-Free Offer,
Limited Supply, Not available in stores, etc. These benefits
and marketing motivators are translated into meaningful advertising sales
- Knock Off - A similar product to the one that is
being advertised created by the advertiser of the same, in order to ward
of competitors or rival “knock-offs”. Leading Infomercial
producers usually develop a knock off product for this purpose.
- Leads - Potential prospects or inquiries that are generated
by a Direct Marketing campaign.
- Mail Order - The direct marketing strategy that allows
customers to buy products through the mail (mail order catalogs or direct
- Marketing Plan - A written document that provides a comprehensive
analysis of the product, its target market and the various marketing opportunities
that exist. The Marketing Plan reveals all of the revenue sources
and the marketing strategies that would be employed. It is the fundamental
first step in marketing any product or service in the “Electronic
- Marketing Strategies - The specific marketing approaches
that can be used in a Direct Marketing campaign.
- Marketing Wheel - A visual metaphor for a comprehensive
marketing plan which identifies the hub of the wheel as the product and
all of the spokes referring to the products’ revenue sources and their
corresponding marketing strategies.
- Mark-up Margin - The ratio difference between the cost
of the product and the selling price point. A good DRTV product usually
has at least a 5 times mark-up.
- Media Buying Services - Companies that provide the media
buying, management and analyses for DRTV spots or Infomercials and receive
an advertising agency commission for purchasing media. Direct response
advertising agencies are also direct response media buyers.
- Media Ratios (Gross Sales to Media Cost) - The actual
ratio of gross sales to media costs. For example if an advertiser
purchased through a media buying service $1000 worth of media and received
$2000 in gross sales, the media ratio would be a two to one (2 :1) sales
to media cost ratio.
- Merchant Account - The account that is usually held by
an advertiser’s bank that accepts and processes credit cards.
- Multi-Pay Offer - The marketing strategy used to increase
sales by lowering the price barrier to purchase a product by offering multi-pay
(3 easy payments of $29.95).
- Neural Linguistic Programming (NLP) - The relatively
new science and technology that can change ones behavior (program) by changing
the way one communicates (language) to him/herself or “presents” information
to the brain (neural). As referred in this book, NLP provides a tool
for the DRTV creative team to create an effective sales presentations based
on the insights and techniques that are revealed through Neural Linguistic
- The Nodding Effect - The term used to define when the
key selling elements within an advertisement get a specific affirmative
reaction (nod) to the sales presentation being made. It is working
when the viewer agrees with the statements being made in the presentation.
- One-Step Marketing - The DRTV approach that request for
the direct sale of a product or service on the initial airing of such.
- Orders - An actual cash sale (customer order) from a
- Per Inquiry (PI) - Usually refers to a form of
DRTV whereby the media outlet or a third party (sometimes a media buying
service) will air the commercial on a results only basis - the media outlet
or third party receives a specific dollar amount Per Inquiry or Per Order.
- Power Statements - The cogent statements written as a
result of identifying all of the key selling messages. Power statements
are then used as the principle selling ideas for the copywriting or testimonial
- Pre-Production - The preparation phases of the production
of the commercial or infomercial.
- Production - The actual filming or video taping of the
commercials or the Infomercial. Infomercial and short form direct
response television commercial or radio production has become both an art
and a science.
- Producersim - The term used to define the marketing approach
based on the “product-based” idea that the “the product
is king”—that is, a marketing approach that has to be used to
sell existing product without regard to the consumers wants or needs.
- Post Production - The editing of the commercials or the
- Primary Target Market - The primary audience the advertisements
are directed towards.
- Private Label - Manufacturing the same product under
a different name for another company.
- Product and Marketing Analysis (PMA) - A sophisticated
Product and Marketing Analysis tool that helps to determine the strengths
and weaknesses of not only the product but of its current marketing.
- Retail - Mass merchandising of a product in retail outlets.
- Retail Representation - Companies that represent a product
to the retail marketplace.
- Risk Transference Marketing- When a marketing, media
or production company is willing to transfer some of the financial risk
of marketing a product via Direct Marketing and in exchange be paid a royalty
commission on gross sales.
- Returns - The products that are returned to the advertiser
from a DRTV campaign.
- Revenue Sharing - A form of Risk Transference Marketing,
Revenue Sharing takes place when a media outlet or media buyer is willing
to fund all media costs and receive a pre-determined percentage of all gross
sales in exchange.
- Royalty Commissions - A percentage of gross sales given
to product owners, inventors, Infomercial producers, direct marketers, or
celebrities in exchange for services rendered.
- Satellite Programming - Programming that is received
from satellite dishes that are not cable networks.
- Sell Through Advertising - Another term for “short
form” Infomercials that are placed strategically in syndicated “magazine
style” or TV talk shows.
- Situational Analysis - A term referring to the basic
marketing research activity when preparing a Marketing Plan.
- Strategic Positioning - The “image” that
the advertiser wants to convey to the public about a company or its product.
- Sub-licensing - The licensing of a product to another
marketing entity, usually overseas.
- Telemarketing - The in-bound and out-bound telephone
operations that are needed to conduct a DRTV campaign.
- Testimonials - The actual experience and expressions
of product users are filmed or video taped for use in a DRTV commercial
or Infomercial. Good testimonials will present the key selling messages
in their own words.
- Total Customer Value (TCV) The total value of a customer
for the entire relationship between company and customer.
- Transactional Media - Another term for a long form infomercial
that is disguised like a traditional television program or uses a “real” television
program to “sell through” its product.
- Two-Step Marketing - The DRTV approach that requires
at least two steps to get a direct sale from a customer. Usually the
first step is the receipt of free information, which is followed up by “after
market” techniques to close the sale.
- Unique Selling Proposition (USP) - The USP is the single
most unique selling proposition of a product or service. It is what
makes the product different and more desirable than its competitors.
- Upsells - Upsells is an in-bound telemarketing strategy
that takes place while a new customer is ordering their product (during
this phone call only, etc.). This marketing strategy allows the advertiser
the opportunity to sell additional product or products to the customer while
they are on the telephone.
- Values And Lifestyles (VALS) - Stanford Research Institute
(SRI) created a matrix which identifies and categorizes the values and lifestyles
of all people.
- Wholesale Clubs - The chain of discount stores that offer
products that have been seen on TV. Price Club, Costco, B. J’s,
PACE and Sam’s Club, etc..
Electronic Retailing Association (ERA)
2000 N. 14th Street
Arlington, VA 22201
National Infomercial Marketing Association
Contact: Helene Blake
1202 New York Avenue, N. W., Suite 1000
Washington D. C. 20005
202-962-8342 FAX 202-962-8300
Response TV Magazine
Contact: Jack Schember, Publisher & Editor
201 East Sandpointe Ave., Suite 600
Santa Ana, CA 92707
Jordan Whitney, Inc.
Contact: John Kogler
17300 17th Strreet, Suite j-111
Tustin, CA 92680
First Class Marketing
Contact: Jeffrey Glickman, President
5950 La Place Court, Suite 160
Carlsbad, CA 92008
619-438-2727 FAX 619-438-5134
All Star Media
Contact: Caswell Forrest, President
220 West Mercer Street, Suite W 508
Seattle, WA 98119
206-284-0604 FAX 206-284-1180
Contact: Dan Kennedy, President
5818 N. 7th St., Suite 103
Phoenix, AZ 85014
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“Call Now 1-800 - How to Profit from Direct Response Television
Advertising” Copyright 2006 Rodney H. Buchser