1. Advertising
Chapter 19

2. 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.

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

4. 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.

5. 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.

6. 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.

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

8. 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.

9. 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
Specialty
Giveaways

10. Print Media
Print Media includes advertising in newspapers, magazines, direct mail, signs, and billboards.
One of the oldest and most effective type of advertising.

11. 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.

12. Newspapers Advantages – Disadvantages –
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

13. 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

14. 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

15. 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 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.

16. 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 postcards
Disadvantages –
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)

17. 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

18. 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

19. 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

20. 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.

21. 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

22. Internet Advertising
A form of advertising that uses either or the World Wide Web.
Currently a small part of overall ad spending but growing rapidly.
Example: opt-in ads, banner ads, pop-up ads, search engine ads, and rich-media video ads.
Combined with animation, video, and sound with interactive features

23. Internet Advertising Examples
Opt-In 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;

24. 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.

25. 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

26. In-Store Advertising Ceiling and floor graphics Electronic shelf ads
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.

27. 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.

28. Media Planning
To establish the media plan and select the right medium, ask and answer the following basic questions….
Can the medium present the product and the appropriate business image?
Can the desired customers be targeted with the medium?
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.