Tutor2u ™ GCSE Business Studies Revision Presentations 2004 Advertising.

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GCSE Business GCSE Business StudiesStudiesRevision Presentations 2004Revision Presentations 2004

Advertising


GCSE Business GCSE Business StudiesStudies

What is Advertising?

An important part of the way a business promotes its products and services to customers

Use of “media” to reach and communicate with potential customers

Encourages customers to buy through information and/or persuasion



How is Advertising Used in the UK?



Choice of Advertising Medium

Who does the medium reach? National or local audience? How many customers will see the advert?

Nature of product Media needs to reflect image of product E.g. a recruitment advert would be placed in a trade magazine or

newspaper but a lipstick advert would be shown on TV or women’s magazines

Position in product life cycle Launch stage will need different advertising than adverts for a

product that is well established

Cost of medium Television is the most expensive; national advertising is more

expensive than local advertising May want to consider cost per head if reaching a larger audience



Television Advertising

Advantages

Use of pictures and sound very powerful combination

Can reach a large audience

Can target audience with different adverts going out with certain programs (children’s TV and toys)

Disadvantages

Very expensive – both the cost of making the adverts – and the cost of buying the broadcasting time

Need to get message across in very short space of time – e.g. 15-30 seconds

Need to look good against some other very clever and attractive advertising by other businesses and/or competitors



Classified and Display Advertising

Classified advertising

Normally put into a newspaper or magazine

Expressed solely in words and numbers

Less space – therefore lower cost

Display advertising

Space also bought in newspapers or magazines

Can be filled with words and/or pictures

Takes up more space and is more expensive

Often more effective in attracting attention of readers



Persuasive and Informative Advertising

Persuasive advertising

Aims to convince customers that they really like the product or service

Focuses on product benefits and features

Aims to persuade customers to buy – i.e. increase demand for the product or service

Informative advertising

Provides customer information

Mostly done by government (e.g. health campaigns, new welfare benefits)



Newspaper Advertising

Advantages

Cheaper than TV advertising

Market segments can be targeted better:

• National, regional and local newspapers• Target different socio-economic groups – e.g. popular tabloids (Sun,

Mirror)

Newspapers also have special sections, such as Homes, Travel and Gardens where advertising will reach target audience

Disadvantages

Newspaper readership is falling – adverts do not reach as many people

Still expensive – particularly for smaller businesses



Advertising Agencies

Role

Plan, organise and produce advertising campaigns

Design and produce advertising material (e.g. posters, display adverts, television commercials)

Monitor and report on effectiveness of advertising

Advantages:

Expertise a business may not have, e.g. copywriters, designers and media buyers

Specialise in particular markets (e.g. agencies



Advertising and the Law

Advertising is covered by legislation (law)

Trade Descriptions Act – goods advertised for sale must be as they are described.

However, the advertising industry is largely “self-regulated”

Advertising Standards Authority – regulates adverts that appear in “non broadcast media” (e.g. newspapers, magazines, posters)

Broadcasting regulator (OFCOM) regulates adverts on television and radio

Misleading adverts can be referred to the Office of Fair Trading



“Above Line” and “Below Line”

Above the line

Paid for communication in independent media

E.g. advertising on TV or in newspapers

All advertising done via advertising agencies is “above the line” – because the agency is paid to arrange publication of the adverts

Below the line

Promotional activities where business has direct control

No payment made for the “advertising” itself

E.g. direct mail, point of sale displays, giveaways

Tutor2u ™ GCSE Business Studies Revision Presentations 2004 Advertising.

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