Promotion

1. Promotion Advertising Media

2. How Many Ads to You See Each Week? • The average person is exposed to approximately 2000 ads each week. Do you see that many or more?

3. What is advertising? • Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. • The time or space devoted to it is paid for • It uses a set format to carry the message rather than personal, one-on-one selling • It identifies the sponsor of the message

4. How does advertising use a set format? • Advertisements are measured by time or space • A radio spot is usually 30 seconds long (time) • A newspaper ad can be 1/4 page (space)

5. The Main Purpose of Advertising • To sell products or ideas by presenting its message so well that the customer will buy the product or accept the idea presented.

6. Promotional Advertising • Promotional advertising is advertising that is designed to increase sales by • creating an interest in products • introducing new products and businesses • explaining a product • supporting personal selling efforts • creating new markets

7. Institutional Advertising • Institutional advertising attempts to create a favorable impression (image) and goodwill for a business or an organization • Purpose is to develop a positive image by presenting information about a company’s role in the community, important public issues and topics of general interest.

8. Media • Media are the agencies, means or instruments used to convey messages

9. Three Categories of Advertising Media • Print media • Broadcast media • Specialty media

10. Print Media • Print media can include any of the following: • Newspapers • Direct Mail • Magazine • Outdoor Advertising • Directory Advertising • Transit Advertising

11. Why is Newspaper Advertising Important? • Approximately 55% of adults read the newspaper everyday? • Do you read the newspaper? • Do your parents or guardians read the newspaper?

12. National, State and Local • U.S.A. Today • The Wall Street Journal • The New York Times • The Atlanta Journal/Constitution

13. What is a shopper? • Someone who likes to shop? • A community newspaper which contains no editorial content and is delivered free to persons who live in certain areas (full of ads) • The Thrifty Nickel

14. Advantages & Disadvantages of Newspaper Advertising • Large readership • Known circulation (easy to target) • Low cost • Timely and flexible • Wasted circulation • Disposable (short lifespan) • Poor quality advertising

15. Magazine Classifications • Local • Regional • National weeklies • Monthlies • Quarterlies

16. Consumer Vs. Business • Consumer magazines are read for personal pleasure or interest • Reader’s Digest, Vogue, Sports Illustrated • Business magazines appeal to people with general interest in business or a particular field within business • Business Week, Inc., Forbes, Marketing News

17. Advantages & Disadvantages of Magazine Advertising • Easy to target your market • Read slowly and thoroughly • Good print quality • Longer life span because they are kept of an extended period of time • Less mass appeal within a geographic area • More expensive than newspapers • Not timely or flexible (long lead times)

18. Direct Mail Advertising (Junk Mail) • Advertising that is sent directly to prospective customers through the mail • (More than $80 billion in goods and services sold annually through direct mail) • Have you ever bought anything through direct mail advertising? • What do you do with it when you get it?

19. Advantages & Disadvantages of Direct Mail Advertising • Advertiser can be highly selective • Flexible and secretive • Wide choice of formats • Can use coupons or other incentives • Can directly make the sale • Low level of response (-1%) • High costs • Poor image (junk mail) often not read

20. Outdoor Advertising • Non-standardized outdoor signs are used by local firms at their place of business or in other locations throughout the community. • Standardized outdoor signs are available to local, regional or national advertisers.

21. Three types of standardized outdoor signs • Posters - Preprinted sheets put up like wallpaper on outdoor billboards (McDonalds) • Painted bulletins - Painted billboards that are changed every 6 months to a year • Spectaculars - outdoor signs using lights, moving parts and are situated in high traffic areas or cities (Chick-Fil-A)

22. Advantages and Disadvantages of Outdoor Advertising • Highly visible • Relatively inexpensive • Permits easy repetition of message • Can be geographically tailored for target market • Short message due to limited viewing time • Unknown audience • Government regulations

23. Directory Advertising • Alphabetical listing of businesses • Relatively inexpensive • Found in 98% of households - all demographics • Kept for at least a year - not thrown away • Very inflexible due to being printed yearly • Wasted advertising (to non-target market)

24. Transit Advertising • Using public facilities to advertise - such as subways, on buses and taxis, in stations • Reaches a wide and captive audience • Economical • Defined market (usually urban) • Unavailable in smaller towns • Subject to defacement • Restricted to certain travel destinations

25. Broadcast Media • Radio - 6+ years listening to the radio • Television - 10+ years watching television in 70 years

26. Radio Advertising • 96% of people over 12 are reached by radio • Prime time is morning and afternoon drive times - advertisers guaranteed concentrated audience • Ads are available in 15, 30 or 60 second time slots

27. Select and audience - target their market Flexible - can change quickly and easily Mobile (can be taken anywhere - shopping, jogging, hiking or driving Short life span Sometimes many stations - have to decide which to use or use them all (more expensive) Distractions - no visual involvement Advantages and Disadvantages of Radio Advertising

28. Television Advertising • The ultimate advertising medium because it can communicate with sound, action and color • Prime time is 7 p.m. - 11 p.m. • Infomercials - 30 minute commercials (The George Foreman Grill)

29. All elements for creative message Believability More personal & effective Can reach the masses or target specific interests Adaptable to special needs Expensive - the highest production costs - too high for small businesses Audience size is not assured Nuisance - channel surfing - leave during commercials Advantages & Disadvantages of Television Advertising

30. Advertising in U.S. Schools • Some oppose Channel One because they believe the station misuses valuable educational time. Others are offended by commercialization of the school environment • Advertisers hope students will become more aware of and ultimately buy their products. Disadvantages include the perception that the advertisers are forcing students to watch TV advertising or use a particular product • College recruiters, yearbook ads, candy sale posters • Some people may see advertising in schools as forcing products on a captive audience or may perceive businesses as taking advantage of schools

31. Specialty Media • Inexpensive, useful items with an advertiser’s name printed on them - usually given away

32. Other Types of Advertising Media • Sports Arena Billboards • Movie theater commercials • Hot air balloons, blimps, skywriting, banners • shelf ads, shopping cart ads, coupon machines, receipt ads

33. Is there anything else we are missing? • What about the Internet? • What advantages and disadvantages might there be?

34. Media Rates - Services Available • Standard Rate and Data Service - gives rates for most major media according to broad categories (print, broadcast) • Audit Bureau of Circulation (ABC) - Print media use this to verify circulation figures because advertising rates are based on circulation

35. Classified Ads and Display Ads • Classified ads can advertise everything from services performed to houses for sale to job openings (costs per word used) • Display ads are creative illustrations of the product being advertised. (costs for space used)

36. Newspaper Rates • Column Inch Rates - number of columns by number of inches deep multiply by the rate • Run of Paper rate - The newspaper chooses where to run the ad - you don’t choose the location • Open Rate - Basic charge for a minimum amount of space (non-contract rate) • Contract Rate - Discounted rates for guaranteed amount of advertising in a time period

37. CPM • CPM is the cost per thousand rate - the cost of exposing 1000 readers to an ad • Cost of the ad X1000 = cost per thousand (cpm) Circulation • Used to compare the rates for different papers with different circulations

38. Bleed - 1/2 or full page ads are printed to the very edge (no white border) +15-20% Black & White - Lowest rates - black & white ads Color - Each color adds more cost Full color - 4 color Premium position - ad placement in mag. Discounts - frequency, commission, cash CPM - Cost per thousand in circulation Magazine Rates

39. Spot radio refers to the geographical area an advertiser wants to reach with its advertising. Identify target market & potential customers Spot commercials are advertising messages of one minute or less that can be carried on network or spot radio. The Spot

40. Different radio advertising options • Network Radio advertising - a broadcast from a studio to all affiliated radio stations throughout the country (Paul Harvey) • National spot radio advertising - National firms advertise on a local station-by-station basis. - target markets • Local radio advertising - local businesses advertise for its target market • Run of schedule - lets the radio station determine when to run the advertisement

41. Television Rates • Advertising rates vary with the time of day. • Prime time is the most expensive - 7-11 p.m. • Class AA time is prime time - other times are Class A, B, C and D. • Advertisers need to choose the time slot that receives the most viewers in their target market.