There are two major schools of thought in marketing: the branding gurus and the direct marketers.
- Branders believe that through repeated exposure, you can build a “brand” by “positioning” your company the way you’d like to be perceived in the minds of consumers. They use terms like “image,” “creative,” “awareness,” and “customer experience.”
- Direct marketers believe you should provide enough information to move prospects to the next level and always ask for the next step – contact you, visit your website, etc. They use terms like “response,” “return on investment,” “cost per acquisition,” and “break-even.”
The Difference Between Branding and Direct Marketing
Branding is essential for large companies like McDonalds, Coca Cola and Microsoft who have million-dollar advertising budgets and products that anyone can purchase. They can afford to build awareness of their products and services over time.
For small-businesses with limited resources, direct response marketing is usually the better option because it is quantifiable and measurable. Many small-businesses can’t afford to advertise to a broad range of prospects over time. They can’t wait years to build their brands and establish credibility in their marketplace. Rather, they need results (i.e. more clients) now.
In other words, direct response marketing is focused on short-term results while branding can take years with no guaranteed results.
Components of a Direct Response Ad – The Call To Action
The primary philosophy behind direct response marketing is that if you want people to buy, you have to ask for the sale. It sounds simple, right? But so many ads, websites, brochures and sales letter don’t ask.
Asking for the sale is known as a “call to action.” It tells people exactly what you want them to do. In advertising, your call to action is the line that says “Buy now,” “Hurry in today,” “Call now,” or “Visit www.mywebsite.com for more information.”
If you want to increase the response rates of your advertising and marketing, adding a call to action is essential. Your prospects are extremely busy and won’t take the time to think about what you want them to do.
You may think it’s obvious that if you run an ad or put up a website, obviously, you want them to buy what you sell. But the reality is, your prospects don’t think when they read your ad. They don’t have the time or attention span to figure out what you want them to do.
And even if they are interested in what you offer, they might not know what the next step should be. Should they call you? Visit your website? Go to the store? If they don’t know, chances are, they won’t take action.
Components of a Direct Response Ad – The Offer
Getting prospects to take action is another challenge. People tend to think, “I can do this later,” and continue what they were doing. Unfortunately, “later” never comes. If you don’t give people a compelling reason to buy from you right now, while they are interested, you’ve lost them.
An “offer” is what prospects get if they take action. If you are selling a product, the “offer” might be a discount or a free bonus gift if they buy within the next week. If you are selling a service, your offer might be a free white paper, a trial membership, or a free consultation. The offer must be something prospects want so much they stop what they are doing to take action.
But Can’t Branding Campaigns Have Calls To Action?
Yes, of course, they can, but the purpose of branding campaigns isn’t to persuade someone to take action now. Instead, they want to create a specific image so when you are considering purchasing a product, their company is the first one you think about. If you want a cup of coffee, you think “Starbucks.” If you want running shoes, you think “Nike.” If you want a quick burger, you think “McDonalds.”
The goal of a branding campaign is to build awareness of a product over time. McDonalds doesn’t expect that if you see their TV commercial, you will immediately drop everything you are doing and head over to the nearest McDonalds for an apple pie or salad. But they do want to plant that image, so next time you pass a McDonalds, you think “That apple pie looked good. I think I’ll stop in for one.”
How To Measure Advertising Results
There’s nothing inherently wrong with branding campaigns, but they are extremely difficult to track. If you run a direct response ad that tells people the sale ends Sunday or to call before Friday to receive your free gift, people have a reason to take action immediately to take advantage of the benefit. And you can track how many responses you receive within that time frame.
With branding, it’s tough to measure results. They either appear to work or they don’t. If it doesn’t look like the campaign is working, it’s very difficult to start tweaking the campaign to improve the response. An example is the Taco Bell Chihuahua, which was a wildly popular ad campaign but failed to drive sales.
Branding campaigns also work best when the product or service is widely available. Most shoe stores carry Nike shoes. There’s a Starbucks or McDonalds in most cities. In other words, it’s extremely easy for customers to purchase the product at their convenience.
Most service businesses have an added layer of complexity to making the sale. The prospect has to call when the business is open, talk with someone, and try to figure out if that service can meet his or her need. Once that’s done, they have to draw up a working agreement and figure out payment terms. It’s a much more difficult and time-consuming process than walking into a store and making a purchase.
Should You Sacrifice Long-Term Results for Short-Term Gains?
If you are just starting out and need clients, the answer is “yes.” Branding can drain your marketing budget with little or no immediate return. If you don’t have paying clients, you don’t have cash to fund your marketing expenses and you will quickly run yourself into a mountain of debt.
As you establish your company, your brand will grow based on the type and quality of clients you work with, your reputation in your industry, and your ability to demonstrate results.
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