There are several key components to feasibility that must be answered before a smart marketer commits the necessary resources:
Television is the largest medium for Direct Response. All feasibility analytics look firstly at the footprint of your customer profile. Television media is expensive because it reaches a large audience. If your target audience is narrow, the cost you pay for TV might not work. Golf is the exception because 20 million golfers will have the passion to pay large amounts of money to improve their scores by even 2 or 3 strokes. Otherwise, such a small target market makes TV problematic. If you are paying Networks that base their advertising rates on reaching 52 million households, but your product only appeals to 15 million households, the finances are unlikely to work.
You must also have a thorough evaluation of what you will sell, what you will give away to make the offer appealing and create a sense of urgency, as well as what you will additionally sell to the consumer once they call or go to your website.
The sale, the selling process and the costs associated with the selling process are critical to evaluate before you make the decision to begin. Oftentimes this alone will cost more than the cost of goods sold. Building a product P& L will give you a financial picture that will encourage you to move forward or stop you dead in your tracks. Building a project P&L to prove concept and roll-out a successful launch will give you the capital requirements, cash flow and inventory projections necessary for feasibility. No Venture Capital firm would invest in a project without fully understanding the ROI potential. Direct Response Television is the same.
THE STRATEGIC MARKETING PLAN
Direct Response Television comes in two distinct formats that have completely different strategies: Paid Programming Infomercials that are 28 ½ minutes long and Direct Response Short Form commercials ranging in length from 30 seconds to 2 minutes. Which format will be best for your product launch can only be answered once you understand and build the marketing strategy.
Radio, web, print, home shopping and catalogue are other mediums which might be as important or better mediums for your product.
Is your goal to acquire customers and regularly sell them more of your product or service? Or, are you trying to build a brand while selling, so you can take your product to retail?
Building the model or the Direct Response Marketing Plan prior to deciding to invest the capital required is just good common sense.
The Direct Response Academy offers its clients a Feasibility Analysis and DRTV Marketing Plan. Our process has been developed over the last 15 years and evaluates your project from 5 different points of view:
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