Chapter 6Slide 1
Goals List the many forms of advertising discuss advantages and disadvantages
of each type of advertising
Promotional Mix: strategy created by adopting a blend of some, if not all, of the types of promotion available
1. Personal selling
2. Advertising
3. Direct Marketing
4. Sales Promotion
5. Public Relations
Five Types of Promotion in Promotional Mix
Product Promotion Activities
Institutional Promotion Activities
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
As part of the Promotional Mix
Chapter 6Slide 6
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
Slide 7
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
What are some types of Advertising you can think of?
Student contributions:
What are some types of Advertising you can think of?:
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
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
1. 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
2. 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
3. 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
◦ 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
Chapter 6
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
• Include price, contact number, and buy now deals!• Usually on Paid programming channels• ½ hour or more in length
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 = $7500 + $2000 = $9,500
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
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
Chapter 6Slide 21
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 6Slide 22
◦ 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