What is Advertising

1
What is Advertising?

• Advertising is any paid form of NONPERSONAL
  promotion of ideas, goods or services by an
  identified sponsor.
• The main purpose of advertising is to present its
  message so well that the customer will buy the
  product or accept the idea presented.
• The two types of advertising are
• Promotional Advertising
• Instutional Advertising

2
Promotional Advertising

• Promotional Advertising is designed to increase
  sales by
• Creating an interest in products
• Introducing new products and businesses
• Explaining a product
• Supporting personal selling efforts
• Creating new markets
• Volvo Commercial http//new.volvocars.com/wwygav
  t/

3
The Limitations of Advertising

• Advertising cannot improve a bad product.
• Advertising is unlikely to change the mind of a
  customer who has already made a purchase
  decision.
• If youve already decided to purchase a PC, would
  this change your mind? http//www.apple.com/getama
  c/ads/

4
Institutional Advertising

• Institutional Advertising attempts to create a
  favorable impression and goodwill for a business
  or organization.
• It presents information about a companys role in
  the community, important public issues and topics
  of general interest, such as the environment,
  public health and education.

5
What is Media?

• Media are the agencies, means or instruments used
  to convey messages.
• There are three categories of advertising media
• Print Media Newspapers, magazines, direct mail,
  outdoor advertising, directories and transit.
• Broadcast Media Radio and Television.
• Specialty Media Inexpensive, useful items with
  the advertisers name printed on it. Examples
  are pens, pencils, memo pads or key chains (promo
  items)

6
Print Media
7
Newspaper advertising

• Advantages
• Large readership
• Circulation is known so advertisers can target
  to selected locations.
• Ads can be timely, and can be easily changed, up
  to 24 hours before the paper goes to print.
• The cost of newspaper ads is low.

• Disadvantages
• The life of an ad is limited because people throw
  their papers away daily.
• The ad quality is poor compared to other media,
  making the ads less appealing.

8
Magazine Advertising

• Advantages
• Advertisers can more easily target audiences
  because the circulation and characteristics of
  readers are known.
• Magazines are read more slowly, so ads are more
  likely to be remembered.
• Print quality is better.
• Ads have a longer life span than newspapers.

• Disadvantages
• Magazines have less mass geographic appeal.
• Magazine advertising is more expensive than
  newspaper ads.
• Ads are not as timely because the deadline is
  usually many months before publication.

9
Direct-Mail Advertising

• Advantages
• Advertiser can select who will receive the ad.
• Timing of the mailing is flexible.
• Wide choice of sizes and formats (letters,
  postcard, catalog).
• Coupons or other incentives.
• DM can be used to make the sale, such as catalogs
  or record club memberships.

• Disadvantages
• Low level of response to direct mailings
  usually less than 1.
• Costs are high and getting higher.
• Many people think of DM as junk mail and throw
  away without opening.

10
Outdoor Advertising

• Advantages
• Highly visible
• Inexpensive
• Easy repetition of a message
• Can be geographically tailored to reach target
  markets.

• Disadvantages
• Message has to be short
• Audience is unknown
• Advertisers must abide by local government
  regulations to prevent blight and traffic
  hazards.

11
Directory Advertising

• Advantages
• Yellow Pages advertising is inexpensive.
• Directories are found in 98 of American homes.
• Directories are usually kept for a year until new
  ones are published.

• Disadvantages
• Because they are kept for a year, advertisers
  cannot easily adjust their prices, advertise
  sales or change their message easily.

12
Transit Advertising

• Advantages
• Reaches a wide and sometimes captive audience.
• Economical
• Defined market (usually an urban area)

• Disadvantages
• Often unavailable in smaller towns and cities.
• Subject to vandalism.
• Restricted to certain destinations.

13
Broadcast Media
14
Radio Advertising

• Advantages
• The advertiser can select an audience, such as
  teens, ethnic groups or professionals.
• Radio is more flexible than print ads because
  messages can be changed easily.
• Mobile medium that can be taken just about
  anywhere, such as shopping, jogging, hiking or
  driving.

• Disadvantages
• Advertising has a short life span. When the
  message is broadcast, it is gone unless it is
  rebroadcast.
• Several stations compete for the same audience,
  so advertisers must decide which station to
  advertise on.
• Listeners might become distracted during the
  message and miss part or all of it.

15
Television Advertising

• Advantages
• TV can pull together all the elements to produce
  a creative advertising message.
• People are more inclined to believe what they SEE
  over what they READ.
• Like door-to-door selling.
• Can reach a mass audience.
• Can be adapted to take advantage of holidays,
  seasons and special-events.

• Disadvantages
• Highest production costs of any media.
• Audience size is not assured.
• Viewers consider TV commercials a nuisance.

16
Specialty Media
17
Specialty Media

• Advantages
• When designed well, the item carries the name and
  address of the business sponsoring the item, and
  has an advertising message urging the reader to
  action.

• Disadvantages
• The distribution of the item is usually limited.
• Items might be given to people who would never
  consider buying the product or patronizing the
  business.

18
Advertising Agencies

• The Advertising Agency
• The Advertising agency works with businesses to
  develop advertising campaigns.
• Full Service Agencies perform advertising
  research, media selection, copy development and
  artwork for ad campaigns.
• Limited Service Agencies specialize in one aspect
  of the campaign only, such as creative services.
• In-House Agencies can provide full or limited
  service based on the size of the company.

19
How Do I decide Where to Place My Advertisement?

• You must answer the following three questions
• Does the method present the product and my
  business image in the way that I want it
  presented?
• Does the method have the ability to target the
  correct customers?
• Does the method have the ability to obtain the
  correct response rate?

20
Media Costs

• Media costs are determined by time or space
• A 30-second television commercial
• A half-page newspaper ad
• Media costs vary greatly, not just with the kind
  of media, but by geographic location.
• A newspaper ad in a small town would cost much
  less than one placed in the New York Times.
• Television and Radio rates vary with the time of
  day.
• To advertise on TV during the hours of 8 p.m. to
  11 p.m. costs more than during other hours
  because there are more viewers at that time of
  day.
• Radio rates are higher during Drive Times,
  which are early morning and late afternoon (rush
  hour).
• Magazine Rates are based on circulation, quality
  of readership and production technique.

21
What is Cooperative Advertising?

• Coop Advertising is a cost-sharing arrangement
  that allows both a supplier and a local
  advertiser to pay for advertising.
• Examples of these ads
• A newspaper ad for Calvin Klein products sold at
  Lord and Taylor.

22
Print Advertisements

• The parts of a print ad include
• Headline The lettering, slogan or saying that
  gets the readers attention, arouses their
  interest and leads them to the rest of the ad.
  These must be attention getters!
• Copy The selling message that is in a written
  advertisement. It should expand on the headline
  or the product in the pictures.
• Illustration The photograph or drawing used in
  a print advertisement.
• Signature The distinctive identification symbol
  for a business. This is usually the name of the
  firm. A well designed logo gets instant
  recognition.
• A slogan, which is a catch phrase that presents
  an advertising message, is often included in the
  signature.

23
Developing Print Ad Layouts

• Ad Layout A rough draft that shows the general
  arrangement and appearance of a finished ad. It
  clearly indicates the position of the headline,
  illustration, copy and signature.
• Develop Ads as follows
• Should be the same size as the final
  advertisement.
• Pictures should be large enough to show all
  features.
• Ad should be uncluttered.
• Image should be appropriate for the target
  audience.
• Typeface (font) should be easy to read.

24
Color in Ads

• Color makes the ad stand out on the printed page.
• Color ads have higher response rates.
• Increase reading of the copy by as much as 80.
• Because of the response rates, color ads are more
  cost effective than two color (black and white)
  ads.
• Each added color raises the cost of the ad.
  Adding a second color raises the cost by 35.

25
Advertising Proofs

• The advertising proof shows exactly how an ad
  will appear when printed.
• The proof must answer these questions
• Is it bold enough to stand out on a page, even if
  placed next to other ads?
• Does the headline arouse interest?
• Is the illustration large enough to highlight the
  product?
• Is the signature apparent and distinctive?
• Is the copy simple, direct and understandable?
• Does the layout guide the reader through the
  copy?
• Are the typefaces and type sizes easy to read? Is
  the ad uncluttered?
• Does the ad communicate the intended message? Is
  the image appropriate for the target market?