11.2 Marketing a Small Business Advertising Presentation 2


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Module 11

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11.2 Marketing a Small Business Advertising Presentation 2

  1. 1. Advertising Any PAID form of NONPERSONAL presentation of ideas, goods, or services
  2. 2. Historical Milestones in Advertising   Advertising goes back to the very beginnings of recorded history. Archaeologists working in the countries around the Mediterranean Sea have dug up signs announcing various events and offers. The Romans painted walls to announce gladiator fights, and the Phoenicians painted pictures promoting their wares on large rocks along parade routes. A Pompeii wall painting praised a politician and asked for the people's votes.   During the Golden Age in Greece, town criers announced the sale of slaves, cattle, and other goods.  Another early advertising form was the mark that trades-people placed on their goods, such as pottery. As the person's reputation spread by word of mouth, buyers began to look for his or her special mark, just as trademarks and brand names are used today.
  3. 3. The turning point in the history of advertising came in the year 1450, with the invention of the printing press. Advertisers no longer had to produce extra copies of a sign by hand. In 1622, advertising was given a big boost with the launching of the first English newspaper, The Weekly Newes. Joseph Addison, the publisher, gave this advice to copy writers; “The great art in writing advertising is the finding out the proper method to catch the reader, without which a good thing may pass unobserved, or be lost among commissions of bankrupts." The September 14, 1710, issue of the Tatler contained ads for razor strops, patent medicine, and other consumer products. Advertising had its greatest growth in the United States. Ben Franklin has been called the father of American advertising because his Gazette, first published in 1729, had the largest circulation and advertising volume of any paper in colonial America.
  4. 4. Types of Advertising <ul><li>Promotional Advertising: Communication designed to increase sales of products and services. </li></ul><ul><li>Institutional Adverting: Promotion designed to create a favorable image and goodwill for business or organizations. </li></ul>
  5. 5. Media? <ul><li>On the average, how much time per week do you spend with the following media? </li></ul><ul><ul><li>Television </li></ul></ul><ul><ul><li>Radio </li></ul></ul><ul><ul><li>Magazines </li></ul></ul><ul><ul><li>Newspapers </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>Outdoor (billboards, bus signs, etc.) </li></ul></ul><ul><li>Which media do you pay the most attention to advertisements? </li></ul><ul><li>What differences do you see in your media habits and those of your parents? </li></ul>
  6. 6. Promotional Media-Forms of Advertising <ul><li>Print media : Newspapers and magazines </li></ul><ul><li>Broadcast media : Radio and TV </li></ul><ul><li>Direct mail : Mailings sent by the business to the prospective customers </li></ul><ul><li>Outdoor transit media : Billboards, outdoor signs, posters, marquees </li></ul><ul><li>Other media : Specialty advertising, directory advertising, motion picture advertising </li></ul>
  7. 7. Advertising in Newspapers <ul><li>Disadvantages </li></ul><ul><li>Short life span. </li></ul><ul><li>Wasted circulation. </li></ul><ul><li>The quality of production is poor. </li></ul><ul><li>Advantages </li></ul><ul><li>High level of reader involvement. </li></ul><ul><li>Circulation is known. </li></ul><ul><li>The cost of local newspaper advertising is low. </li></ul><ul><li>Great deal of flexibility. </li></ul><ul><li>Frequency </li></ul>
  8. 8. Advertising in Magazines <ul><li>Advantages </li></ul><ul><li>High demographic selectivity. </li></ul><ul><li>Long advertising life. </li></ul><ul><li>Good reproduction quality. </li></ul><ul><li>Advertisements held in higher regard--Prestige/Credibility </li></ul><ul><li>Disadvantages </li></ul><ul><li>Long lead time. </li></ul><ul><li>High cost. </li></ul><ul><li>Inflexibility. </li></ul><ul><li>Lack of penetration </li></ul>
  9. 9. Magazine Advertisements Can be expensive but reaches a lot of people.
  10. 10. How Important is Advertising to Magazines? The chart below shows the top five magazines and the percentage of their revenues generated by advertising, subscriptions and newsstand sales. Source: Http://www.adage.com (1999 figures)
  11. 11. Radio Advertising <ul><li>Advantages </li></ul><ul><li>Low cost </li></ul><ul><li>Selectivity </li></ul><ul><li>Flexibility </li></ul><ul><li>Local personalities </li></ul><ul><li>Useful supporting data </li></ul><ul><li>Disadvantages </li></ul><ul><li>Lack of prestige </li></ul><ul><li>Short life </li></ul><ul><li>Shared audience attention </li></ul><ul><li>Audio only presentation </li></ul>
  12. 12. Television Advertising <ul><li>Advantages </li></ul><ul><li>Large audience </li></ul><ul><li>Attention getting ability </li></ul><ul><li>Low cost per exposure </li></ul><ul><li>Personal appeal </li></ul><ul><li>Can have flexibility </li></ul><ul><li>Disadvantages </li></ul><ul><li>High absolute cost </li></ul><ul><li>High degree of clutter </li></ul><ul><li>Short message life </li></ul><ul><li>Time limitations </li></ul><ul><li>Low audience selectivity </li></ul><ul><li>Ignored messages </li></ul>
  13. 13. Cost to Advertise on the Super Bow l Source: Nielsen Advertising Research, Advertising Age Research. Source: Nielsen Advertising Research, Advertising Age Research. Year Price for 30 seconds Avg. Number Home Avg. Number Viewers 1967 $40,000 22,570,000 51,180,000 1970 78,200 23,050,000 44,270,000 1975 110,000 29,040,000 56,050,000 1980 275,000 35,330,000 76,240,000 1985 500,000 39,390,000 85,530,000 1990 700,000 35,920,000 73,852,000 1995 1,000,000 39,400,000 83,420,000 2000 2,100,000 43,618,000 88,465,000 2005 2,400,000 45,081,000 86,072,000 2006 2,500,000 45,867,000 90,745,000 2007 2,600,000 NA NA
  14. 14. Direct Mail Advertising <ul><li>Advantages </li></ul><ul><li>Audience selectivity </li></ul><ul><li>Flexibility </li></ul><ul><li>Lack of direct competition </li></ul><ul><li>Personalization </li></ul><ul><li>Measured performance </li></ul><ul><li>Disadvantages </li></ul><ul><li>Potential high cost </li></ul><ul><li>Lack of editorial matter </li></ul><ul><li>Negative image </li></ul>
  15. 15. OutdoorAdvertising <ul><li>Disadvantages </li></ul><ul><li>Brevity of exposure </li></ul><ul><li>Limited message length </li></ul><ul><li>Limited selectivity </li></ul><ul><li>Attracts criticism </li></ul>
  16. 16. This ad for a portable email device is aimed at busy travelers looking for convenience. Http://www.billboardinfo.com Http://www.buyelink.com
  17. 17. Advantages of Transit Advertising <ul><li>Low cost </li></ul><ul><li>Geographic flexibility </li></ul><ul><li>Large captive audience </li></ul><ul><li>Message length </li></ul>
  18. 18. Transit Advertising <ul><li>Disadvantages </li></ul><ul><li>Limited target market </li></ul><ul><li>Lack of prestige </li></ul>
  19. 19. Advertising Media Mix in the United States Projected U.S. total ad spending = $134.3 billion Ad Spending per capita = $437.60 Source: Http://adage.com/dataplace/topmarkets/us.html