Is Your Product Right For DRTV?

Thousands of products can be successful in direct response TV, but some products are clearly better than others for the infomercial marketing format. The first step in creating an infomercial advertising campaign is to evaluate the suitability of your product in the marketplace, and you can begin that process yourself.

To help in this process, we developed an eleven-item system for ranking products that are generally unavailable at retail and primarily use a one-step offer. Each item can be ranked "Strong," which is worth three points in the ratings; "Good," which is worth two points; or "Fair," for one point.

To use the Product Evaluator, simply choose the best description for each question below as it pertains to your product.

 

DRTV Product Evaluator

1. Markup: If your marketing goal is to sell your product directly over the television in a one-step offer, the larger the markup ratio, the greater your chance of success. Markup ratio is determined by dividing retail price by cost of goods.

Strong: Product has 5-to-1 markup or better
Good: Markup less than 5-to-1 but more than 3-to-1
Fair: Markup 3-to-1

2. Mass Appeal: Television has the unique ability to reach a mass audience. Its most significant disadvantage is an inability to precisely target specific demographics (much better accomplished via direct mail). Thus, the greater your product has mass appeal, the greater its success potential.
Strong: 75% or more of US households would want this product
Good: 50% to 74% of US households would want this product
Fair: 25% to 49% of US households would want this product

3. Demonstrable: Television is the ideal market to show how a product works or to show the benefits that users obtain by using the product. The more your product can visually demonstrate the use of the product or the effects of the product, the greater your opportunity for profits.
Strong: Product functions or product effects can be easily and quickly understood through a visual demonstration.
Good: Product functions or product effects can be understood through a visual demonstration but it requires a few minutes of demonstration and some audio explanations before the viewer understands what the product does.
Fair: Product can't effectively be demonstrated

4. Lifestyle Change: Compelling direct response commercials advertise products that create transformations which quickly and significantly improve lifestyle. These transformations could be a major difference in the way a viewer would prepare food after purchasing a new food processor, a much slimmer body after using a weight loss product, a much smoother face after using a beauty product, much more wealth after using an investment course, etc.

Strong: Product will instantly and radically improve the quality of the viewer's life.
Good: Product will be a major improvement in the user's quality of life, but it will require some work by the user to achieve results.
Fair: Product will not create a lifestyle change but it will be nice or more convenient to have.

5. Market History: All new infomercial DRTV campaign tests are marketing gambles. Increase the odds on your wager by marketing a product that has some marketplace history.
Strong: Product has proven retail or direct sales.
Good: There is a successful product in same category
Fair: There is no sales history for this product category
6. Value: Everybody loves a deal. Enough said.
Strong: Ratio of value to price very attractive
Good: Value good but price relatively high
Fair: Marginal perceived value
7. Immediate Solution: Infomercial scripts are often based on simply stating the consumer's problem and the solution provided by your product. The bigger the problem that your product can immediately solve, the faster you're headed for the "Infomercial Hall of Fame." Solving a potential problem (e.g. personal/home security products) does not generate as much response.
Strong: Product solves an immediate problem
Good: Product solves a problem that will occur in the future
Fair: Product solves a problem that may or may not occur in the future
8. Price: The lower the price ($19.95 minimum), the more accessible your product is to the masses.
Strong: Price $49.95 or less or lead generator
Good: Price $99.95 or less
Fair: Price $100 or higher
9. Spokesperson: Television viewers who are most willing to pick up the phone to order, are also those most influenced by a persuasive, charismatic (but credible!) on-camera product spokesperson.
Strong: Charismatic product expert
Good: Have a budget for celebrity participation
Fair: Non-celebrity, non-charismatic product expert
 
10. Upsells/ continuity: Upsells and continuity marketing can generate an additional 30 percent to 100 percent in your revenues. The more related products you have available for upsell/continuity campaigns, the wider your advantage in the infomercial marketplace.
Strong: Good upsell or continuity potential
Good: Limited upsell or continuity potential
Fair: No upsell or continuity potential
11. Retail Potential: Typically, less than 1 percent of all infomercial viewers actually order the product. If your product is available at retail or soon will be, you can dramatically drive retail sales by capitalizing on huge awareness advertising you create with a successful infomercial.
Strong: I am currently selling the product at retail stores everywhere.
Good: Plan to get retail distribution from infomercial demand
Fair: Product will not receive distribution