Advertising Introduction to Marketing Types of Advertising: Promotional – used when the goal is to increase sales and get customers to want more information, to make a purchase Institutional – creates a favorable image for a company. Connecting a business’s name to a cause helps the company make an impression on customers. Mass v. Targeted Advertising Mass Advertising – companies can reach large numbers of people. Most television and radio advertising are mass advertising Targeted Advertising – advertisers target their messages to a select audience Media Advertising can take many forms, using many different types of media. Media are the agencies or means used to convey a message to the public. Types of Media: Print Broadcast Online Specialty Other Types of Print Media: Newspaper Advertising: National, state, and local newspapers. Online and print editions. Advantages: Cost is relatively low. Can reach a wide audience. Limitation: May be distributed outside the target market. Ads are less visually appealing/less color. Newspapers are read and thrown away. Types of Print Media: Magazine Advertising: local, regional, and national magazines. May be published weekly, monthly, or quarterly. On line and print editions. Consumer and business-to-business. Can target an audience through their interests. Advantages: ability to target audience, have a longer lifespan than newspapers. Read more thoroughly and slowly than a newspaper. Printed in color, with a variety of format options (e.g., two-page spreads, pull-out sections, return cards, etc.) Disadvantages: higher cost than newspapers; printed at least a month or two in advance of circulation, so must plan carefully Types of Print Media: Outdoor/Billboard advertising: standardized and nonstandardized. Nonstandardized used at place of business; standardized include billboards Advantages: highly visible, relatively inexpensive. 24hours per day, 7-days a week. Disadvantages: Limited or banned in some states. Limited by federal law. Usually only a few words in large print due to the person passing at high speeds; can’t target audience Types of Print Media: Transit advertising: Found on public transportation (e.g., the side of buses, park benches, in airline terminals.) Advantages: reaches a wide audience, sometimes captive; economical; defined market Disadvantages: hard to target audience Types of Print Media: Direct Mail – may be printed and (snail) mailed, or sent to an e-mail address; keep current customers aware of new products, services, and upcoming sales. Can generate leads and qualify prospective customers. Advantages: many forms; printed includes newsletters, catalogs, coupons, and letters. Can be selective about who receives the advertisement Disadvantages: must carefully select target; most effective for existing customers; cost can be high for printed direct mail; Low level of response (10% for printed direct mail is considered a good response) Types of Broadcast Media: Television: Advantages: Most effective broadcast media; uses many elements like sight, sound, color, action. Designed to show product features and benefits. Can target audience; cable t.v. is splintering the market. Television, continued Disadvantages: limited to 30 or 60 second spots, or infomercials. Highest production costs of any type of media, and high cost for purchasing t.v. time. Small companies usually cannot afford t.v., or only less desirable time slots and less expensive local cable t.v. markets. How much does a Super Bowl ad cost? In 2016: 30-second ad - $5 million (2015 - $4.5 million) 60-second ad - $10 million (2015 - $9 million) Types of Media: Radio advertising: Another type of broadcast media. Cheaper than t.v., but still reaches a large target group. Time sensitive material is a good fit for radio ads. No visuals. Types of Media: On line advertising: growing part of advertising. Includes banner ads and popup ads as well as e-mail. Advantages: cheap, can target audience. Disadvantages: a viewer may have to click on the ad to get to the advertiser’s website. Response rates are as low as 1%. Types of Media: Specialty media: giveaways, or advertising specialties; low-cost, useful items with the advertiser’s name or logo (traffic builders); calendars, pens, etc. Types of Media: Other Media: Advertising in sports arenas, movie theaters, on movie DVDS Advertising Strategies: Ideal kids / families Advertising Strategies: Heartstrings father - daughter commercial Advertising Strategies: Family fun Star Power Advertising Strategies: Omission: “Part of a healthy breakfast” Advertising Strategies: Sounds good -- Jingle Chili's baby back ribs Target Market: Close your eyes – can you tell which ad is aimed at girls, and which is aimed at boys? Next: And finally: How did you know who the target audience is? Product Placement The appearance of a branded product in a television show or movie, aimed at influencing the viewer Product Placement Examples Product Placement https://youtu.be/iY56r2qj8f8 https://youtu.be/oQYwFND7rHE https://youtu.be/wACBAu9coUU Ad Icons An advertising icon is a character (real, cartoon, or animated) created solely for the purpose of advertising. Advertising Icons Ad Icons https://youtu.be/wACBAu9coUU Cognitive Dissonance The mental stress or uncomfortable feeling a person gets when they hold 2 or more beliefs, ideas, or values that contradict one another, or are confronted with new information that conflicts with existing beliefs, ideas, or values Advertising Campaign A group of advertisements, commercials, and related promotional materials and activities designed as part of a coordinated advertising plan to meet specific goals for the business. New or “improved” product or increase sales Usually have a theme (e.g., McDonald’s Monopoly game) Steps in an Advertising Campaign: 1. Identify the target audience 2. Determine objectives (e.g., increase brand awareness) 3. Establish the budget 4. Develop the message (theme and messages based on the products features and benefits) 5. Select the media 6. Evaluate the campaign (use market research to see if goals are met.) Print Advertisement There are usually 4 parts to a Print Advertisement: 1. Headline – phrase or sentence that grabs attention 2. Copy – the selling message – written details (use words like new, improved, save, easy) 3. Illustration – photo, drawing, or other graphics 4. Signature – (“Logo”) the distinctive identification symbol for a business. In national ads, may be the name of the business. Print Advertisements: May have: 5. Slogan – catchy phrase or words that identify a product or company (alliteration, paradox (“the taste you love to hate”), rhyme (“give a hoot, don’t pollute”), pun, play on words.