Advertising and Sales Promotion Chapter ©2013 Cengage Learning. All Rights Reserved. 7 CHAPTER 7 Advertising and Sales Promotion Advertising Media 7.1 Traditional Advertising Media 7.2 The Internet and Advertising 7.3 Alternative Forms of Advertising Media ©2013 Cengage Learning. All Rights Reserved. 2 CHAPTER 7 Advertising and Sales Promotion 7.1 Traditional Advertising Media Goals Describe traditional types of advertising media. Identify advertising media selection criteria. ©2013 Cengage Learning. All Rights Reserved. 3 CHAPTER 7 Advertising and Sales Promotion 7.1 Traditional Advertising Media Terms Media – channels of communication used to send a message to the target market Reach – total number of people who will be exposed to an advertisement over a period of time Frequency – number of times a person is exposed to an advertisement Lead time – the amount of time require to produce and place an advertisement ©2013 Cengage Learning. All Rights Reserved. 4 CHAPTER 7 Advertising and Sales Promotion Types of Advertising Media Types of Advertising Media – television is the dominant form, though the internet is quickly gaining popularity Television advertising – usually comes in the form of commercials and infomercials Advantages – have the ability to use sight, sound, and motion to provide creative opportunities Disadvantages – high cost ©2013 Cengage Learning. All Rights Reserved. 5 CHAPTER 7 Advertising and Sales Promotion Types of Advertising Media Radio advertising – listeners can be segmented by demographics Print advertising – creative headlines and appealing visual images are necessary Newspapers – reach a large number of people and are relatively inexpensive Magazines – can target specific markets but are relatively expensive Direct mail – can be a highly segmented advertising strategy Flyers and brochures – widely distributed and are inexpensive Outdoor advertising – effective at reaching a large audience ©2013 Cengage Learning. All Rights Reserved. 6 CHAPTER 7 Advertising and Sales Promotion Media Selection Criteria Reach Frequency Lead time could be the most important factor when it comes to selecting advertising media Cost per thousand – the dollar cost of reaching 1,000 members of an audience cost of media CPM = × 1,000 total audience ©2013 Cengage Learning. All Rights Reserved. 7 CHAPTER 7 Advertising and Sales Promotion 7.2 The Internet and Advertising Goals Describe various types of Internet advertising. Explain what factors businesses should consider when using Internet advertising. ©2013 Cengage Learning. All Rights Reserved. 8 CHAPTER 7 Advertising and Sales Promotion 7.2 The Internet and Advertising Terms Online advertising – form of promotion that uses the Internet as the advertising medium Spam – unwanted online communication that is sent out in mass Banner ad – small, rectangular advertisement that appears at the top or side of a web page and contains a link Pop-up ad – online advertisement that opens on top of the current page being viewed ©2013 Cengage Learning. All Rights Reserved. 9 CHAPTER 7 Advertising and Sales Promotion 7.2 The Internet and Advertising Terms Search engine ad – known as a paid search because the advertiser pays the search engine to place ad near relevant searches Blog – website maintained by an individual or business where posts are public access Social media – websites where users create and share information Phishing – an internet scam in which an email falsely claims to be a legitimate business or organization to get personal information ©2013 Cengage Learning. All Rights Reserved. 10 CHAPTER 7 Advertising and Sales Promotion The Internet’s Role in Advertising Types of online advertising E-mail advertising – quickest and easiest way to reach customers Banner and pop-up advertising – becoming more sophisticated with video and animation Search engine advertising – allow businesses to target people who are searching for words or topics related to the business Website advertising – good choice for startup companies with limited capital ©2013 Cengage Learning. All Rights Reserved. 11 CHAPTER 7 Advertising and Sales Promotion The Internet’s Role in Advertising Types of online advertising Blogs – having a company’s brand on a consumers’ blog is a powerful word-of-mouth tool Social media advertising – advertisers have been shifting to social media due to advancements in technology Twitter – businesses use this site for market research, advertising, public relations, and other marketing activities Advantages and disadvantages of online advertising – advantages include being able to reach a broad audience and a disadvantage is that companies cannot control what others post ©2013 Cengage Learning. All Rights Reserved. 12 CHAPTER 7 Advertising and Sales Promotion Online Advertising Considerations Online Advertising Considerations – before starting a business should understand the cost and be able to track the effectiveness Costs of online advertising- cost-per-click, cost-per-thousand impressions, and cost-peraction The effectiveness of online advertising – companies counts hits, page views, visits, and unique visitors ©2013 Cengage Learning. All Rights Reserved. 13 CHAPTER 7 Advertising and Sales Promotion 7.3 Alternative Forms of Advertising Media Goals Recognize alternative forms of advertising media outlets. Describe the latest advertising media trends. Terms transit advertising aerial advertising cinema advertising product placement mobile advertising ©2013 Cengage Learning. All Rights Reserved. 14 CHAPTER 7 Advertising and Sales Promotion Other Advertising Outlets Transit advertising Aerial advertising Cinema advertising Product placement advertising Directory advertising ©2013 Cengage Learning. All Rights Reserved. 15 CHAPTER 7 Advertising and Sales Promotion Latest Advertising Media Trends Video advertising Mobile advertising ©2013 Cengage Learning. All Rights Reserved. 16