ADVERTISING PROMOTION:Advertising Strategies, Advertising Media

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Introduction to Business MGT 211

Lesson 32

ADVERTISING PROMOTION

Advertising--promotional tool consisting of paid, non-personal communication used by an

identified sponsor to inform an audience about a product. The average U.S. resident is

exposed to roughly 250 ads every day through a variety of media -- including floor ads. All

forms of advertising have three objectives: to create product awareness, to create and

maintain the image of a product, and to stimulate consumer demand. It not only determines

what we buy, but it shapes our view of the world.

Advertising: (1) The best form of promotion for reaching mass audiences quickly at a low

per-person cost. (2) Gives the organization the greatest control over the message. (3)

Promotes goods, services, or ideas, using a full range of creative approaches and media to

convey your message. (4) Must conform to the law, as well as the ethical and moral standards

of the medium and trade associations.

Advertising Strategies --- The advertising strategies used for a product most often depend

on which stage of the product life cycle the product is in. During a product's growth and

maturity stages, marketers may choose one of three common approaches:

Persuasive Advertising--advertising strategy that tries to influence

consumers to buy one company's products instead of those of its rivals.

ii.

Comparative Advertising--advertising strategy that directly compares two or

more products.

iii.

Reminder Advertising--advertising strategy that tries to keep a product's

name in the consumer's mind.

Advertising Media -- variety of communication devices for carrying a seller's message to

potential customers.

Television sometimes leads viewers to confuse commercials because of their

brevity and their great number.

ii.

Newspapers--the most widely used medium, accounting for about 20 percent

of all advertising expenditures.

iii.

Direct Mail--about 18 percent of all ad spending. Direct mail has the largest

advance costs of any technique but the highest cost-effectiveness.

iv.

Radio-8 percent of all advertising outlays. Radio ads are quite inexpensive but

easy for consumers to ignore.

Magazines--roughly 5 percent of all advertising. Huge variety of magazines

makes for a high level of ready market segmentation.

vi.

Outdoor Advertising--about 1 percent of all advertising. Billboards, signs, ads

on buses, taxis, stadiums, etc. are inexpensive and have high repeat exposure.

It's growing faster than newspapers, magazines, and television and offers

animation and changing images.

vii.

The Internet--Still in its infancy but offers high potential, particularly for

targeted advertising.

Use Data Mining and Data Warehousing (see chapter 10) to tailor advertising

to specific target markets. Has the ability to tailor a message directly to

individuals and use interactive options to gather information about each

interaction such as the exact information accessed by a visitor; develop a

profile for their regular visitors; present information of special interest to the

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Introduction to Business MGT 211

visitor; and alert customers to special savings or remind them of past

purchases.

vii.

Virtual Advertising--Uses digital implants of brands or products onto live or taped

programming, giving the illusion that the product is part of the show.

xii.

Other Advertising Channels: Catalogs, sidewalk handouts, Yellow Pages,

skywriting, telephone calls, special events, and door-to-door communication

represent additional media.

The Media Mix--combination of advertising media chosen to advertise a

company's products. Determinants of the Media Mix include:

The characteristics of the target audience and the types of media

that will reach it are determined.

The choice of media is also determined by what it is expected to

do.

Preparing the Campaign with an Advertising Agency

Advertising Campaign -- arrangement of ads in selected media to reach targeted audiences. It

consists of six steps:

Identify the target audience

ii.

Establish the advertising budget

iii.

Define the objectives of the advertising messages

iv.

Create the advertising messages

Select the appropriate media

vi.

Evaluate advertising effectiveness

Advertising Agency--independent company that provides some or all of a client firm's

advertising needs.

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