representatives, direct selling is not a full-time job but an opportunity to earn additional income and a way to get the product at a discount for themselves. Over half of those employed in this industry spend less than 10 hours a week selling, and 81.6 percent spend less than 30 hours a week.
Because they generate a direct response, measuring the effectiveness of direct-marketing programs is not difficult. Using the cost per order (CPO), advertisers can evaluate the relative effectiveness of an ad in only a few minutes based on the number of calls generated. By running the same ad on different stations, a direct marketer can determine the relative effectiveness of the medium itself. For example, if the advertiser targets a $5 return per order and a broadcast commercial (production and print) costs $2,500, the ad is considered effective if it generates 500 orders. Similar measures have been developed for print and direct-mail ads.
For direct-marketing programs that do not have an objective of generating a behavioral response, traditional measures of effectiveness can be applied. (We discuss these measures in Chapter 19.)
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