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Lesson 6.2 The Promotional Mix─Advertising

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1 Lesson 6.2 The Promotional Mix─Advertising
Goals List the many forms of advertising discuss advantages and disadvantages of each type of advertising Chapter 6

2 Promotional Mix Promotional Mix: strategy created by adopting a blend of some, if not all, of the types of promotion available

3 Five Types of Promotion in Promotional Mix
Personal selling Advertising Direct Marketing Sales Promotion Public Relations Product Promotion Activities Institutional Promotion Activities

4 To succeed as a business, your customers need to know about your business AND the products/services you offer Goal of Promotion = AIDA Attract Attention, Build Interest, Build Desire and get customer’s to Act

5 As part of the Promotional Mix
Advertising As part of the Promotional Mix

6 Advertising Advertising a paid form of communication sent out by a business about a product (good service or idea) very important for small and/or new businesses Purpose: Communicates with potential customers details about your products and why customers should buy from you Chapter 6

7 Advertising Advertising should clearly communicate your message and image If low price is your message, highlight this in ads Large companies hire advertising agencies – costly Small business usually handle their own

8 Type of Advertising What are some types of Advertising you can think of? Student contributions:

9 Type of Advertising Online Magazine Television Outdoor Radio Transit
What are some types of Advertising you can think of?: Online Magazine Television Outdoor Radio Transit Newspaper Social Networking Mail

10 Online Advertising Online advertising still new – uses different guidelines than print Graphics, photos, layouts, text and design must be professional for a positive impact used when customers extend beyond the local (home town) market Cost effective way to promote products Can interact with customers via chat rooms, blogs, and e-newsletters

11 Common types of online advertising
Banner ad – graphic image in a box across the top or down side of web page Floating Ad – ad that moves across the screen or floats above the page content Wallpaper Ad – ad that changes the background of the page being viewed Trick Banner – banner ad that looks like a dialog box with buttons appearing as an error message or alert Pop-Up Ad – new window that opens in front of the current window with an ad Pop-Under Ad – new window that loads behind the current window and appears when user closes the active window

12 Charging for Online Advertising
Cost per Mil (CPM) the advertiser is charged based on the exposure of the message to a specific audience priced per thousand viewers reached with the message Cost Per click (CPC) the advertiser is charged based on the number of user clicks on the advertisement viewers respond to the ad by clicking on the hyperlink within the ad Cost per Action (CPA) the advertiser is charged when a user takes an action to complete a form advertisers prefer this type of charge for banner ads

13 Disadvantages of Online Advertising
your marketing materials are available for anyone in the world to copy (logos, images, trademarks, ect.) Viewers perceive it as SPAM mail – ignore it utilize software to block promotions

14 Television Advertising
Most Effective way to reach a large number of people quickly Can communicate through sight and sound Can be creative, entertaining, and informative Two types: Commercials - last less than a minute Infomercials - last ½ hour or more and provide in-depth coverage about a specific product Most costly form or advertising Chapter 6

15 Commercial Example

16 Infomercial Include price, contact number, and buy now deals!
Usually on Paid programming channels ½ hour or more in length

17 Television Advertising Fees
Fees include: length of time of the commercial the costs of producing the commercial # of times shown National advertising most expensive Local TV offers affordable rates for small businesses Example: $250 for a 1 minute commercial that cost you $2000 to produce. You plan to air it 30 times. How much does the commercial cost? $250* 30 = $ $2000 = $9,500

18 Disadvantages of Television Ads
it is very expensive difficult to make changes once the ad is complete Viewers are annoyed and use time to get snacks, use restroom, or have a DVR

19 Super bowl TV Ads reaching more than 90 million viewers
spectacular and innovative in most cases Highly anticipated even before the game Typically costs millions of dollars for 30 seconds 2013 record high cost – any idea? $4 million for a 30 second ad Best of 2012

20 2013 “Funniest” Commercials

21 Radio Advertising less expensive than television advertising
listener demographics are more specific than television easier to reach target audience Ex: rock stations target teenagers/young adults Fees: pay for air time pay for production costs Chapter 6

22 Disadvantages of Radio Advertising
the message is purely audio a visual of the product is not shown listeners may forget what they hear listeners may tune out during commercials May need to hire someone to create an ad Chapter 6

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