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Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
Marketing Chapter 19  Advertising
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Marketing Chapter 19 Advertising

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  • 1. ADVERTISING CHAPTER 19
  • 2. ADVERTISING AND ITS PURPOSE
    • The average person is exposed to more than 2000 ads in one week.
    • There are two main types of advertising:
      • Promotional Advertising
          • advertising designed to increase sales.
          • Introduces new products and explains features and benefits.
      • Institutional Advertising
          • attempts to create a favorable impression and goodwill for a business.
          • Provides positive information about a business.
  • 3. ADVERTISING DRAWBACKS
    • Advertising cannot focus on individual needs because the same message is conveyed to all customers.
    • Many forms of advertising, such as TV, is too expensive for small companies.
    • Advertising is inefficient--not everyone is a potential customer.
    • Ad messages are often very short, lacking information.
  • 4. TYPES OF AD MEDIA
    • Media are the agencies, means, or instruments used to convey advertising messages to the public.
    • There are four general categories of ad media:
      • 1) Print Media
      • 2) Broadcast Media
      • 3) Online Media
      • 4) Specialty Media
  • 5. PRINT MEDIA
    • Print Media is written advertising found in the following forms:
      • Newspaper
      • Magazine
      • Direct Mail
      • Directory
      • Outdoor
      • Transit
  • 6. NEWSPAPER ADS
    • PROS
    • timely--daily or weekly
    • local, regional, or national
    • 55% of US adults read paper everyday
    • cost is relatively low per person
    • can target using sections
    • CONS
    • Ad life is very short
    • Ads are less appealing than other print media due to lack of color
  • 7. MAGAZINE ADVERTISING
    • PROS
    • can be classified as local, regional, or national
    • can be weekly, monthly, or quarterly
    • they can easily target their audiences by demographic, psychographic, or geography
    • Longer life span
    • Read more slowly and thoroughly than newspapers
    • Good print quality
    • CONS
    • much more expensive to advertise in
    • deadlines for print are often many months before circulation
  • 8. DIRECT MAIL ADVERTISING
    • PROS
    • mailing lists are assembled from customer records or bought from direct mail specialty firms.
    • Can be highly selective about target
    • Can control the timing accurately
    • Wide choice of types
    • Can use coupons or other incentives
    • Order form included
    • CONS
    • low level of response--usually less than 1%
    • “ Junk Mail”
    • Cost is high per person, including producing and printing, mailing, and maintaining lists
  • 9. DIRECTORY ADVERTISING
    • PROS
    • This is an alphabetical listing of households and businesses. Ex. Phone
    • Relatively inexpensive and hit 98% of the population
    • Kept for at least a year
    • CONS
    • Cannot change message often
  • 10. OUTDOOR ADS
    • PROS
    • Highly visible
    • Relatively inexpensive
    • 24 hour a day message
    • can reach specific markets
    • Great use of color, space, size, and motion
    • CONS
    • Have become limited and banned in some states
    • Limited viewing time
    • unknown audience
    • increasing regulations due to safety concerns
  • 11. TRANSIT ADVERTISING
    • This uses public transportation to bring advertising messages to people.
        • Printed posters found inside business and commuter trains
        • Exterior posters on the outside of taxis and buses
        • Station posters located near or in subways or airline terminals
    • Reaches wide audience
    • Relatively low cost per person
    • E-Billboards are growing--TVs in transit terminals
  • 12. BROADCAST MEDIA
    • This includes radio and television.
    • The average person will spend about ten years of their life watching TV and six years listening to the radio in a life span of seventy years.
    • People are more likely to believe info from TV than from print media.
    • In the US, there are over 10,000 radio and over 1,200 network TV stations.
    • 98 million households have at least one TV
  • 13. TV ADVERTISING
    • Can communicate a message with sound, action and color.
    • Prime time is 8-11 PM because millions of targeted viewers are watching.
    • Can demonstrate product features.
    • Can capture attention very well.
    • Can direct message easily--news, comedy, history, etc. through cable stations.
    • Very high cost per person
    • Actual audience size is not assured.
  • 14. RADIO ADVERTISING
    • Reaches a very wide audience.
    • Drive time is best time advertise with most people listening and captive.
    • Music, slogans, jingles add excitement, drama, or humor
    • Can target based on style or format of the station
    • It is a mobile medium which can be taken almost anywhere--beach, car, jogging, etc.
    • Ads have short life span
    • Listeners can be easily distracted by what they are doing
  • 15. ONLINE ADVERTISING
    • This involves placing ads on the internet.
    • This is the fastest growing ad medium today.
    • Most ads are banner ads --a wide shallow rectangle seen at the top or bottom of a web page.
    • Interstitial Ads--pop-up ads that either have to be clicked or closed. Annoy many people.
    • Easy to record how effective ad is by using a counter.
    • Response rate currently is about 1%
  • 16. SPECIALTY MEDIA
    • Relatively inexpensive, useful items with an advertiser’s name printed on them.
    • The items are usually given away with no obligation.
    • Items must be practical and useful.
    • Common items are bottle openers, calendars, magnets, pens, pencils, memo pads, and key chains.
    • Generally not expensive, but sometimes large amount of waste.
  • 17. SELECTION OF PROMOTIONAL MEDIA
    • Three basic questions need to be addressed to choose which type of media:
      • Does the medium have the ability to present the product and the appropriate business image?
      • Does the medium have the ability to target the desired customers?
      • Does the medium have the ability to obtain the desired response rate?
    • The bottom line is what is the cost per person and am I reaching enough potential customers?
  • 18. MEDIA COSTS
    • NEWSPAPER RATES--display or classified ad
    • MAGAZINE RATES--based on circulation, quality, size and production technique
    • ONLINE RATES--based upon the type of format the customer desires. Also based on the volume of monthly page views.
    • RADIO RATES--network radio, national spot radio, local radio. Time of day and station ratings determine cost.
    • TV RATES--time of day, rating of station determine. Class system(A,B,C, etc.)
  • 19. COOPERATIVE ADVERTISING
    • This is a cost sharing arrangement whereby both a supplier and a local advertiser pay for advertising.
    • Examples include Coca Cola on sale at Waldbaums or Levi’s at Macy’s.
    • Advantages are shared ad expenses.
    • Disadvantages are loss of control of ad content, and the need to follow the guidelines of suppliers.
  • 20. PROMOTIONAL BUDGET
    • There are basically four methods to determine your promotional budget:
      • Percentage of Anticipated Sales-- based on past performance
      • All You Can Afford-- pay all other expenses first
      • Following the Competition-- do what everyone else does
      • Objective and Task-- create own goals and research the best way to reach it.

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