Direct Response (DRTV) with Brand Marketing

By Rick Petry

The other day while holiday shopping, I found myself in a major national bookstore chain poised and ready to pull the trigger on a purchase, when my wife suggested I look up the price of the item from a competitor. Armed with my iPhone, I was able to price shop on the Net and discovered I could save $6 on this one purchase from a certain ubiquitous e-tailer. Since I was already planning on placing an order of sufficient magnitude with this purveyor of e-commerce that would guarantee me free shipping, and the purchase in my hand possessed no timeliness factor, I abandoned the bricks and mortar retailer’s merchandise and left the store to go surfing later. You’ve no doubt heard of virtual cart abandonment; welcome to the era of real world purchase interruptus.

While the consumer in me might enjoy the pressure to push down prices this competition creates, the marketer in me cringes at the way this dynamic creates leverage that erodes prices and margins. The scenario described above is perhaps the ultimate proof that a truly Darwinian rule of law has taken hold – that with the pervasiveness of money back guarantees and liberal return policies creating a level playing field – that it is pretty much price, and to a much lesser extent availability, that drives the marketplace. That being the case, and with a scant few retailers dominating the marketplace, how on earth is a manufacturer or marketer suppose to compete and make a reasonable profit?
- READ FULL DIRECT RESPONSE ARTICLE: Marketers! Combat Price Erosion With Direct Response