Advertising: The Art of Attracting an Audience Introduction to Business

Confronting Issues with Images A corporation just might be watching you. What you buy. How you act. Anything that pushes your buttons is of interest to corporations that have something to sell. What they sell you is a product through an image. Buying a product when there’s an image attached—that something that makes you look better or cooler—is exactly what the company wants you to do. This way you help their profits.

Advertising Media Advertisements are everywhere you look. You see them on TV, in movie theaters, on the streets, at checkout counters, in magazines, on the Internet and on T-shirts! The average person sees hundreds of ads each week. In a world with so many choices for essential the same product, advertisers use their wit, wisdom, and originality to get consumers’ attention.

Advertising Often companies with deep pockets gobble up the market share by spending the most on advertising campaigns. Advertising is the paid, nonpersonal form of communication that businesses use to promote their products. Creating and using a catchy advertising slogan over and over again is one way a company sells a product.

Mass Media Most ads consist of short messages designed to attract your attention, identify a product, and tell you something about it. They are sent using one or more types of mass media. Mass media are means of communication such as TV, radio, newspaper, Internet. The type of medium an advertiser uses depends on the market it wants to reach.

Print Media Print media uses writing and pictures to communicate. It includes, newspapers, magazines, signs, and billboards. In fact, the age of advertising began with the invention of the printing press in the fifteenth century. Fliers could be mass produced and put in newspapers or posted in public places.

Print Media Newspapers Magazines

Direct-Mail Advertising Consists of ads sent by mail to people’s homes. It is the biggest advertising medium after TV and newspapers. Direct mail allows advertisers to reach a specific target market. A business can put together a mailing list of customers according to a certain demographic.

Direct Advertising Formats Letters, fliers, postcards, and catalogs, coupons, samples. Direct mail can also be used to make sales by including order forms. The cost of sending ads through the mail can be very high. Mailing lists have to be constantly updated. Direct mail is often referred to as “junk mail” because people who receive direct-mail ads often throw it away.

Broadcast Media Broadcast media (primarily TV and radio) are the most effective means of advertising. The popularity of broadcast media makes it possible for advertisers to read a mass audience. Forms of broadcast media: TV Radio Webcasting

Television Television has an advantage over any other media because it combines sounds, images, and motion. Advertisers can be more informative, entertaining, or creative with TV ads. Some ads are so effective that they become part of our everyday language. TV ads can be shown on national or local stations to reach any kind of market. Advertisers can also reach target markets by showing ads during certain types of shows. Ads for an animated movie are shown during Saturday morning cartoons.

TV used as Advertising Most TV ads are 30- or 60-second “spots” Another type of TV ad is the infomerical. An infomerical is a TV program, usually 30 minutes long, made to advertise a product. It is often set up like a talk show with a live studio audience and a celebrity guest who demonstrates the product.

Radio Radio ads can reach a very wide audience. Radio ads may not be as effective as TV or even magazine ads, because they can’t use images. Radio uses music, dialogue, and sound effect creatively to get an audience’s attention.

CONSUMERISM SHOPPING SMART!

Consumer Person who buys and uses good or services. A wise consumer is an informed consumer. Customer is a person who purchases a product or service, but may not be the final user.

Advertising Widely available and popular Main purpose is to convince you to buy a product or service. Used carefully—it is a source of information.

Labels Attached to or printed on a product. Provides useful written information about a product. Label can include: Content of a product Care and use

Opportunity Cost The value of any alternative that you give up when you buy something else or make another choice.

Comparison Shopping Comparing the price, quality, and services of products. Studying ads to determine of what is being offered on sale is a real value. Smart consumers are comparison shoppers.

Unit Price A price per unit of measure

Calculate Unit Price Divide the price of the item by the number of units per measure.

Promotional Sales Sales in which businesses promote the sale of regular merchandise by reducing prices Retailers do this when: Opening a new store Introducing an new item Introducing a new store

Clearance Sales Used to clear merchandise that stores no longer want to carry. End of season items, discontinued items, or out-of-date items.

Deciding How to Buy Business’s Reputation Brand Names or National Brands Types of Businesses

Business Reputation—it’s important Most valuable business asset is a good reputation. Good reputation means Knowledgeable sales people Excellent customer service Wants to satisfy customers Ethical business practices

Brand Names Name of a product or service that is intended to distinguish it from competitors products. Designed to build customer loyalty.

Generic Brands Store brands Lower cost because don’t require advertising and fancy packaging. Saves manufacturer money.

Types of Retailers Full-service stores Discount stores Specialty stores Factory outlet stores Supermarket Warehouse market Convenience stores

Full-Service Stores Offer a wide variety of goods and emphasize customer service. Often called department stores Usually have higher prices. Service likely provided: Delivery Gift wrapping Personal shopper

Discount stores Focus is on lower prices Base success on high volume of sales and low prices. Limited services for customers

Specialty Stores Stores that have a special line of products. Wide variety in a narrow line Sporting goods Jewelry Women’s shoes

Factory Outlet Stores Have a reputation for selling high quality items at low prices. Direct from factory May have minor flaws

Food Retailing Categories Supermarket Warehouse market Convenience stores

Supermarket Large Full-service Carries a wide variety of national, store and generic brands Moderately priced

Warehouse market NO FRILLS Food outlet Emphasizing the sale of large quantities

Convenience Stores Small Emphasize the sale of food items Accessible location Long operating hours Stock popular items at higher prices

Factors that influence consumers Peer pressure Impulse buying Desire for status Advertising techniques

Impulse buying Buying too rapidly without giving much thought to whether you can do without a purchase.

Desire for status Appealing to people’s desire for success, wealth, status, beauty, success.

Advertising

Advertising—A need to sell Make a statement; sell a product Colorful and attractive It needs to crab attention Appealing to the consumer

Purpose of advertising To attract consumers, Inform consumers about products and services. Persuade consumers to buy.

Advertising Techniques Endorsement Testimonial Bandwagon Snob appeal Emotional appeal

Endorsement A well-known person uses a product and suggests that other buy it.

Testimonial Spokesperson talks about their personal experience with the product.

Bandwagon Everyone else has an iPod. Personal buys because associates it with friendship and acceptance.

Snob appeal Buy things because they make you look successful and rich!

Summary--Advertising To attract To inform To persuade Testimonial Endorsement Bandwagon Snob Appeal

Questions!