Entrepreneurship
Management
Assignment
Advertising Team
Yang Khang
Justin Hanneman
Uyvonne Hicks
Kris Ahles
How to Choose Media for Advertising
Once you know your target audience, it will be easier to determine which media will work well for you. Your
product or service, method of sales and audience will also help determine where to advertise. Small
businesses succeed by finding a niche. You will need to focus your advertising as narrowly as possible on the
media that will reach your customers. Here are some of the different advertising methods and what to think
about when choosing a mix for your business.
Print Advertising
 Newspaper
Pros:
o Almost every home receives a newspaper (either by home delivery or purchasing from
somewhere)
o You can reach specific types of people by placing your ad in different sections of the paper
o People expect advertising in the newspaper
o You can get your ad in quickly and can often insert a new advertisement on short notice
o There is a large variety of ad sizes to choose from with various prices (depending on your
budget or how much you want to spend)
o Regular exposure of your ad builds recognition and credibility
Cons:
o Newspapers usually have a shelf life of 24 hours
o The print quality of newspapers isn’t always the best, especially for photos
o Your ad has to compete with other ads for the reader’s attention
o There is no guarantee that every person who gets the paper will read your ad
o Regular exposure of your ad can get expensive
 Magazine Advertising
Pros:
o The quality of pictures and paper are superior to newsprint
o Specialty categories of every kind allow you to target any of hundreds of special-interest groups
o Magazines have a longer shelf life (may have an audience for up to six months after its initial
insertion)
Cons:
o Magazines are usually weekly/monthly publications instead of daily
o Ads take more planning because they are not immediately released
o Smaller space ads may require even higher frequency than larger ads to get noticed over time
 Phone book/Yellow Page Advertising
Pros:
o One ad works all year long
o Gives prospects a way to easily locate and contact your business
o Pay by the year instead of one large payment
o Targets your specific area and can also be viewed throughout the nation on the web
Cons:
o Less people use phone books
o You must commit to an entire year of advertising
o You are immediately placed with a group of your competitors, which makes it easy for
customers to comparison shop
o Some classifications are so cluttered with advertising your ad is buried and ineffective
o Yellow page advertising is only effective when a prospect looks you up in the correct
classification, assuming the prospect knows what classification to look for in the first place
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Direct Mail
Pros:
o Direct mail is known to be the most effective and profitable way to reach out to new and
existing clients
o Direct mail allows you communicate one-on-one with your target audience
o You control who receives your messages, when it is delivered, what goes in the envelope, and
how many people you want to reach
o Direct mail works very well if you do it right
Cons:
o It’s going to cost you money to deliver all your messages
o Direct mail needs to be extremely relevant and personalized
o Direct mail competes with tons of competing channels and messages (consider digital printing
to add personalization or dimensional formats to break through the clutter of competing
channels and messages)
o A huge percentage of direct mail never gets opened
Radio Advertising
Pros:
o Radio media advertising is a relatively inexpensive way of reaching people
o Radio has become an integral part of our culture
o Advertising on local stations can be surprisingly affordable
o TV and radio advertising may deliver more customers than any other type of ad campaign
(provided you are equipped with the right information about the viewing habits of your target
market)
o Radio listeners increase in the spring and summer
o Bunching your commercials together is better than spreading them apart
o It can be a way to support your printed advertising
Cons:
o You can’t review a radio commercial—once it plays, it’s gone
o Since there are a lot of radio stations, most of the time, you will have to buy time on several
radio stations to reach your target market
o People only listen to the radio during certain times of the day
o Commercial costs are much higher during peak listening times
o Because radio advertising is not a detailed broadcasting medium, it is a poor place for prices
and phone numbers
Television Advertising
Pros:
o Television reaches very large audiences (usually larger than the newspaper audience).
o TV ads can give a product/service instant validity and prominence
o Easily reach your target audience
o Greatest possibility for creative advertising
Cons:
o A poorly produced commercial could severely limit the effectiveness of your message, or may
even create a bad image in your customer’s mind
o The cost of a well-produced commercial is more expensive than people think
o Your commercial is competing with other commercials
o Just because your commercial is being aired, does not mean people will see it
How to Develop Advertising Materials
Print Advertising
Knowing the principles of creating print ads will help you get results in any other advertising media you use.
Most print ads out there are poorly conceived and, as a result, perform badly. When developing an ad, make
sure it follows these fundamentals of a successful ad.
1. It should attract attention, truly arresting headline and visual element
2. Your advertising should reflect your company in both look and message. An ad represents you and
what you have to offer.
3. It should appeal to the reader’s self-interest or announce news. Ad takes the view point of the reader
and tells them how they can benefit.
4. It should communicate your company’s unique advantage, why should pick you over the competitor’s.
5. It should prove your advantage; a convincing way to do this is testimonials and statics.
Headlines that work
The best kind of headline for an ad is by having a promise the reader can benefit from, an example would
be miles per gallon, freedom from pimples or fewer cavities. These are all ways a reader can benefit from
your business/product. Also, using words as new, now, at last, and warning or advice may help with
interest. An example would be “Do you have an iron deficiency?”
Ad Placement
There are two major principal publication categories to consider for print advertising. First newspaper,
with it you get your ad out very quickly, but the ad is only out for 24 hours. So it’s essential to run your ad
with enough frequency for its message to penetrate. Regular exposure of this kind of ad can build
recognition and credibility. The second type of publication is magazines; with magazines it allows you to
target any of hundreds of special interest groups. Magazines have about a month worth of shelf life.
 Researchers have found…
o Full page ads may attract about 70% more readers than fraction page ads.
o Adding a photograph or illustration increases an ads power to readers.
o Many successful ads use unrelated photos in the ad.
o It is crucial to maintain a balance between the space devoted to photos/illustration to the
text.
Radio and TV advertising
Advertising on local stations, especially on cable can be surprisingly affordable. You must have a clear
understanding of your target audience and what they want or listen to so money spent reaches them in
the right way and in the right context.
Direct Mail
Major corporations know that direct-mail advertising is one of the most effective and profitable ways to
reach out to new and existing clients.
 Brochures: The look and feel of the brochure not only describes the benefits of your product or
service, but also conveys your legitimacy and professionalism.
 Sales Letters: allows you to speak one on one to prospects and customers. There are three rules to
a good letter. 1. Start with a hook for the reader, 2 give them the facts fast, 3 end persuasively.
 Postcards: Less costly to prepare and can generate sales leads.
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Fliers: Hybrid of a postcard and brochure, gives you more room to get your message across, easier
to put together.
Catalogs: Works well when selling by mail, Here are four tips: 1 keep it simple, 2 Borrow from the
best,3 Choose a production route, 4 Find the prefect printer,
Newsletters: A great way to get the word out about your business, the primary benefit of a
newsletter is keeping you existing customers informed about what you’re doing.
Co-Op Advertising: A cooperative adverting effort between suppliers and retailers. The retailer or
distributor builds a fund called accrual based on the amount of purchases made be the supplier.
When the retailer/distributor places the ad, the supplier reimburses all or part of the cost of the ad
up to the amount accrued. To start using co-op begin by asking you suppliers and what they offer.
Cost Information for Advertising Media
Newmark Design & Print Inc.
Quantity of Print Media and
Price (does not include mailing
and postage)
1,000
5,000
10,000
Type of Print Media
Brochures
 Graphic provided
 4 color print
 Tri-fold 8.5x11
$397
$720
$1,663
Postcards
 Graphics provided
 4 color print on one side/black and white on back
 4x6
$112
$258
$439
Newsletters
 Graphics provided
 4 color print
$413
$859
$1417
Fliers
 1 side
Did not
Did not
Did not
 8.5x11
have
have
have
 4 color print
exact
exact
exact
 Not folded
price
price
price
**They can also design a graphic for your business if you do not already have one or do
not want to design your own. Complexity of the design, use of color, and deadline are
various factors used to determine price. **
Daily Tribune
Open Rate
Color Ad
$18 per column inch
30% extra
**Costs are for per ad, per day**
If you run an ad within 7 days of the first ad, you get an additional 40% off
If you run an ad within 7 days of the previous ad, you get an additional 60% off
Buyer’s Guide
Standard Commercial Classified Ad:
 5 lines
 25 words
 1 paper (Stevens Point/Wisconsin Rapids)
Go over 5 lines
Add a photo
Print ad in additional paper(s)
**Costs are per publication**
$25
+$1 per line
+$6
+$7 per paper
Wisconsin Rapids Post Office
Postage Prices for Mailing
Brochures (must be printed on
heavier paper than normal)
$0.49 each
Postcards
$0.34 each
Newsletters
$0.98 for first ounce/goes up
$0.21 for each additional ounce
Fliers (must be printed on heavier
$0.98 for first ounce/goes up
paper)
$0.21 for each additional ounce
**Cheaper price for bulk mailings**
Solarus
Phone service (business phone line)
 Includes 1 single line listing in white and yellow
pages
o White page listing includes business name,
address, and phone number
o Yellow page listing includes business
name, address, phone number, and choice
of heading (where to be listed)
No phone service (competitor or cell phone)
 Includes 1 single line listing in white pages (foreign
listing)
o White page listing includes business name,
address, and phone
o Yellow page listing is not included and is
handled separately by The Berry Company
$35 per month (before taxes
and fees)
The Berry Company (yellow pages)
Bold listings
Start at $26 per month
Business card sized ad
Starts at $65 per month
Quarter column ad
Starts at $83 per month
**Promotional discounts (Buy 1, Get 1 Free) and business
advertisement packages are also offered at different times
throughout the year**
A-Z Sign
Magnetics
$75-$90 per pair
Vehicle wrap
$700-$2,000
Trailer wrap
$600-$1,000
Billboards
$300-$600 per month
**Prices may vary depending on the size of vehicle**
$24 per year
$35 initial set up fee
The Print Shop (Promotional Items)
I-Writer Silhouette Stylus Pen Combo
Quantity
250
500
Price
$0.52
$0.50
1,000
$0.48
2,500
$0.45
Paw Flexible Key Tag
Quantity
250
Price
$0.59
500
$0.55
1,000
$0.52
2,500
$0.50
Paw Flexible Magnet
Quantity
250
Price
$0.48
500
$0.46
1,000
$0.44
2,500
$0.43
**You can find hundreds more promotional items on their website at
www.the-printshop.com.**
Channel 9
(WAOW TV 9/WYOW TV 34)
Morning news (30 second
$40 from 5-6 a.m.
commercial)
$100 from 6-7 a.m.
Dr. Oz
$40
Primetime
$200-$1,000 (depending
on amount of viewers from
each show)
**Every program has a different rate**
Midwest Communications
(95.5 WIFC, 101.9 WDEZ, 99.9 WSAU, 93.9 WRIG, 94.7 WOZZ)
Morning WIFC
6:00 a.m. to 10:00 a.m. (Mon-Fri)
$75 per commercial
Primetime WIFC
6:00 a.m. to 7:00 p.m. (Mon-Fri)
$70 per commercial
Evening WIFC
7:00 p.m. to 12:00 a.m. (Mon-Fri)
$30 per commercial
**WIFC has the highest prices because they have the most listeners**
Measuring Advertising Effectiveness:
Effective advertising is more than spending large amounts of money on multiple advertising media. Your
overall goal is to receive a real, measurable return on your investment. It is just as important to analyze the
effectiveness of all the different types of advertising your company is doing; that way you can ensure that
each advertising dollar is spent wisely.
You can check the effectiveness of your advertising programs regularly by conducting one or more of the
following tests:
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Run the ad in two different publications with a different identifying mark on each one.
Ask customers to clip the ad and bring it in for a discount or a free sample. Count the coupons that
were used. By looking at the marks on the clipped ads, you will be able to tell which ad pulled better.
Monitor your ads.
Train everyone in your business who answers the phone to ask customers where they heard about you.
Create a one-page form with checkboxes so this process is simple to follow and the results are easy to
evaluate. It is beneficial to understand which elements of your ads are most effective and which media
offer the most profitable advertising opportunities for your company.
Offer a product at different prices in different magazines.
This has the added benefit of showing whether consumers will buy your product at a higher price.
Advertise an item in one ad only.
Don’t have any signs or otherwise promote the item in your store or business. Then count the calls,
sales or special requests for that item. If you get calls, you will know the ad is working.
Stop running an ad that you regularly run.
See if dropping the ad affects sales.
Increases in sales volume or foot traffic of customers.
Always check the sales results.
This is especially important when you place an ad for the first time.
Compare against past years’ sales.
Examine sales of products in advertised weeks vs. non-advertised weeks.
Return on Investment (ROI) evaluates cost against return.
Here is the formula:
ROI
=
(R – CI) / CI X 100
R
=
Gross Margin (Sales Revenue-Cost of Goods Sold)
CI
=
Cost of Investment
The result is a ratio; the higher the ratio, the better the return. For example, say you decide to run a
new direct mail campaign. You print 4,000 postcards and mail them to potential customers; the total
cost of printing and mailing is $2,000. As a result of the campaign you generate $9,500 in sales and
$5,000 in Gross Margin. Then do the math:
$5,000 - $2,000 = $3,000; $3,000 / $2,000 = 1.50, or 150%.
Your ROI on the direct mail campaign was 150%.