CHAPTER 19

Advertising

Objectives

Explain the concept and purpose of advertising in the promotional mix.

Identify the different types of advertising media.

Discuss the planning and selection of media.

Main Idea

Advertising is an important element of promotion. Businesses advertise to promote their ideas, goods, and services.

Advertising and Its Purpose

Advertising: a nonpersonal promotion which promotes ideas, goods, or service by using a variety of media.

Advertisers control the message, where it will be seen or heard, and how often it will be repeated.

The average city dweller is exposed to more than 3,000 advertising messages every day.

Promotional vs. Institutional Advertising

Two main types of advertising…promotional and institutional.

Promotional advertising: advertising designed to increase sales. Targets of promotional advertising can be either

consumers or business-to-business customers.

Promotional advertising is an effecting way to support direct selling, visual merchandising and display, and other sales promotion activities.

Promotional vs. Institutional Advertising

Two main types of advertising…promotional and institutional.

Institutional advertising: advertising designed to create a favorable image for a company and foster goodwill in the marketplace.

Institutional advertising does not directly increase sales. However, by connecting its name to a worthy cause, a company creates a good impression with potential customers.

Advertising is everywhere – television, radio, magazines, stores, Internet, billboards, schools, sports arenas, and even on highway road signs.

Mass Advertising

Mass advertising enables companies to reach large numbers of people with their messages. Television and Radio lend themselves to mass advertising.

Thanks to today’s sophisticated technology, advertisers

can also carefully target their messages to select

audiences. This is known as targeted advertising.

Advertising demonstrates the features and benefits of a

good or service.

Encourages business customers and general customers to

buy products.

Media

Media: agencies, means, or instruments used to convey advertising messages to the public. Four general categories: print, broadcast, Internet,

and specialty. Advertising message and target audience determine

the type of media that is used.

Type Example

Print Newspaper

Broadcast Television

Internet Opt-in e-mail

Specialty Giveaways

Print Media

Print Media includes advertising in newspapers, magazines, direct mail, signs, and billboards.

One of the oldest and most effective type of advertising.

Print Media (cont.)

Newspaper Advertising: offers a variety of advertising options, including the ad size, its location, and the frequency of ad insertions.

Provides flexibility that enables companies to select the options that best suit their budgets and advertising goals.

A few different types of newspapers…. Daily and Weekly Newspapers – local papers that

provide a timely way to reach a target audience. Shoppers and Alternative Newspapers National Newspapers – USA Today and The Wall

Street Journal are distributed throughout the country. Advertisers purchase ad space to reach the entire national circulation.

Newspapers

Advantages – Target people living in certain areas or with certain

interests. Responses to newspaper ads and coupon sales are

dated and easily tracked. Cost remains relatively low because paper, print

quality, and printing costs are lower than the same costs for magazines and direct mail.

Disadvantages – Newspapers are sold to subscribers outside of a

business’ target market. Limited shelf life because they are read and then

thrown away each day. Normally printed in black/white, less appealing than

colorful magazine ads

Magazine Advertising

More than 19,000 magazine publications distributed locally, regionally, or nationally.

Many magazines are now published in online formats and provide new advertising opportunities for marketers.

Consumer Magazines – developed for personal interest. Some examples are: Entertainment Weekly, Sports Illustrated,

Seventeen, etc.Business-to-business Magazines – also known as trade

publications, interest professionals in specific fields. Examples include Advertising Age, Mass Market Retailers, and

Women’s Wear Daily

Magazine Advertising (cont.)

Advantages - Magazines have a longer life span than newspapers. People read magazines more slowly and thoroughly than

newspapers. Better quality images than newspapers Produce more powerful and more memorable

advertising messages Variety of presentation formats – full-page ads, two-page

spread, return cards, and heavy stock inserts.Disadvantages –

Cost is higher to advertise in magazine than newspaper Deadline for submitting ad material is several weeks

before actual publication Advance deadlines limit flexibility in making day-to-day

or weekly adjustments in the ad message

Direct Mail Advertising

Direct mail or direct marketing is a highly focused form of advertising.

Two types of direct marketing are printed direct mail (sent to home or business) and electronic direct mail (delivered to an e-mail address)

Good way to keep customers aware of new products, services, and upcoming sales.

Printed direct-mail comes in a variety of forms… Newsletters, catalogs, coupons, samplers, price lists,

circulars, invitations to special sales or events, letters and more.

Direct Mail Advertising (cont.)

Advantages - Enables advertisers to be highly selective about who

receives the mailing and when the person receives it Most effective with existing customers Wide choice of printed advertisement formats –

letters, catalogs, and postcardsDisadvantages –

Yields a low level of response in relation to the number of items sent in

Direct mail has an image problem; many people think of printed or electronic direct-mail advertising as junk mail

Cost of printed direct mailing can be high (includes creating, printing, collating, buying mailing lists, and postage)

Directory Advertising

Best example of a directory that accepts advertising is the telephone directory.

In the Yellow Pages, businesses pay for a listing.

Advantages – Relatively inexpensive and can be used to target all

demographic groups. Printed directories kept for a year or more

Disadvantages – Printed version can only be change when reprinted

Outdoor Advertising

Two types of outdoor signs: non-standardized and standardized. Non-standardized signs are used by companies at their places

of business or in other locations throughout the community.• Example: company’s logo at the entrance to its office building

Standardized signs, or billboards, are purchased from advertising companies.

Advantages – Highly visible and relatively inexpensive Provides messages 24/7 Located in specific geographic areas

Disadvantages – Limited viewing time Increasing government regulations Restricted to highways, secondary roads,

commercial/industrial zones

Transit Advertising

Advertisement seen on public transportation. Includes printed posters inside buses, taxis, and trains, as well as ads on public benches, bus-stop shelters, kiosks, and newsstands.

Advantages – Reaches a wide and captive audience Economical Defined market of travelers

Disadvantages – Difficult to target specific markets

Broadcast Media

Broadcast media encompasses radio and television.

By the age of 66, the average person spends nearly ten years watching 2 million television commercials and almost six years listening to the radio.

Television advertising – more TV ads are 30- or 60-second spots.

Network television is the ultimate mass-advertising medium for many businesses because it combines all these elements – sight, sound, action, and color – to produce a compelling advertising message.

This has the highest production costs of any type of media and a high cost for the TV time purchased.

Smaller companies cannot usually afford network-television advertising.

Another disadvantage is that many viewers change stations, leave the room, or use devices that allow them to view commercial-free programing.

Broadcast Media

Broadcast media encompasses radio and television.

By the age of 66, the average person spends nearly ten years watching 2 million television commercials and almost six years listening to the radio.

Radio Advertising– Radio can be heard just about anywhere Advertisers can update or change messages daily/hourly More than 10,000 AM and FM stations Radio Advertisers can target their audience by the

station the use A disadvantage is that the goods/services can only be

described, and not actually seen Radio advertisements have a short life span

Internet Advertising

A form of advertising that uses either e-mail or the World Wide Web. Currently a small part of overall ad spending but

growing rapidly. Example: opt-in email ads, banner ads, pop-up ads,

search engine ads, and rich-media video ads. Combined with animation, video, and sound with

interactive features

Internet Advertising Examples

Opt-In E-mail Ads – advertising that the customer requests; cost-effective and easy to update with personalized messages

Banner and Search Engine Ads – most online ads appear as banner or display ads; search engine ads appear while using a search engine (Bing, Google, etc); reports low response rates with only 3 in 1,000 users clicking on the ad.

Rich-media and video ads – combine animation, video, and sound with interactive features; Podcast ads; provide instant, detailed.

Social Media Advertising – companies invite consumers to interact with their products, often through personal blogs; used with the belief that people trust the opinion of their friends or peers;

Specialty Media

Specialty Media is also known as giveaways or advertising specialties. Relatively inexpensive but useful products that are

imprinted with the company’s name, message, or logo. To be successful advertising tools, must be practical,

used frequently, and displayed in locations with high visibility.

Common items are calendars, magnets, pens, pencils, shirts, hats, and bags.

Disadvantage is the limited distribution of items and advertising to people who would never consider buying the product or using the business.

Other Advertising Media

Businesses are constantly creating new ways to advertise: Ad-supported TV screens at airports, gas

stations, health clubs, and subways Digital billboards at sports arenas On-screen movie theater ads Messages on diaper-changing stations,

trash cans, bathroom stalls, elevators

In-Store Advertising

Retailers are using in-store advertising techniques.. Ceiling and floor graphics Electronic shelf ads Supermarket-Cart displays Instant-coupon machines

These techniques – as well as kiosks, sound systems, and closed-circuit television networks – advertise products within stores.

Media Planning

Media planning is the process of selecting the appropriate advertising media and deciding the time or space when ads should appear to accomplish a marketing objective.

Choice of a particular advertising medium ultimately depends on the product to be advertised and the demographic/lifestyles of the target audience.

Size of advertising budget and typed of media available in the geographical area are also factors.

Media Planning

To establish the media plan and select the right medium, ask and answer the following basic questions….1. Can the medium present the product and the

appropriate business image?2. Can the desired customers be targeted with the

medium?3. Will the medium get the desired response rate?

Media plan provides the opportunity to present a compelling message and project the desired business image to the target market.