Target Marketing

Following the introduction of the telephone, Western Union reportedly issued an international memo saying, "The device is inherently of no value to us." In 1943, IBM chief Thomas J. Watson was said to have concluded, "I think there is a world market for about five computers." And three years later, film producer Darryl. F. Zanuck was discussing television when he predicted, "People will soon get tired of staring at a plywood box every night." I'll go out on a limb here and challenge all three assessments.

This year an estimated $1.5 billion dollars in product sales will be generated by infomercials. Research has shown that retail sales driven by infomercials all range from two to 15 times the infomercial sales. More and more major brands are integrating infomercials into their marketing mix, and advertising executives are being asked to measure the results of their advertising expenditures. Surprised by these statistics? Maybe it's time you took a fresh look at infomercial marketing.

Hard-core TV fans are noticing something unusual about their late-night viewing options. Every so often, normally after 1 a.m., they'll come across a half-hour talk show that looks suspiciously like a commercial.