Lesson 6.2 The Promotional Mix─Advertising Goals List the many forms of advertising discuss advantages and disadvantages of each type of advertising Chapter 6

Promotional Mix Five Types of Promotion in Promotional Mix Personal selling Advertising Direct Marketing Sales Promotion Public Relations Product Promotion Activities Institutional Promotion Activities Promotional Mix: strategy created by adopting a blend of some, if not all, of the types of promotion available

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 Advertising As part of the Promotional Mix

Logo Game Go to Kahoot.it Enter the Key provided by your instructor Enter your first name as your nickname Play the game

You used your money Question #1: How many own an Addida’s product? Question #2: A Harley? Question #3: A John Deere? Question #4: A LG Product? Will you buy some of these when you have money? Why? How do you know about these products?

Advertising 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 to build customer opinions and brand image. Chapter 6

Advertising 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

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Type of Advertising Student contributions: Divide into small groups. Complete the group form for question 1: List as many forms of advertising you can think of Student contributions:

Type of Advertising Traditional Modern/New Television Online Radio What are some types of Advertising you can think of? Traditional Modern/New Television Online Radio Social Media Newspaper Mobile Advertising Direct Mail Text Message Ads Magazine Gaming Ads Outdoor Video Ads Transit Pod Casts

In small groups, pick three: Which type of media do you think has the most impact on influencing buying decisions (most likely to convince consumers to buy a product)? Traditional Modern/New Television Online Radio Social Media Newspaper Mobile Advertising Direct Mail Text Message Ads Magazine Gaming Ads Outdoor Video Ads Transit Pod Casts

Study conducted in 2017 https://clutch.co/agencies/resources/how-consumers-view-advertising-survey-2017

In small groups, Discuss this same question based on age In small groups, Discuss this same question based on age. Think about your generation versus millennials, generation X and baby boomers, do you think there would be a different opinion based on age? Which type of media do you think has the most impact on influencing buying decisions based on age? Traditional Modern/New Television Online Radio Social Media Newspaper Mobile Advertising Direct Mail Text Message Ads Magazine Gaming Ads Outdoor Video Ads Transit Pod Casts

Television Advertising Continues to be the 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 Chapter 6

Infomercial Include price, contact number, and buy now deals! Usually on Paid programming channels ½ hour or more in length

Television Advertising Fees 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

Disadvantages of Television Ads 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

Super bowl TV Ads 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 2018 record high cost – any idea? $5 million for a 30 second ad Best of 2012

Online Advertising 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

Common types of online advertising 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

Charging for Online Advertising 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 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 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

Disadvantages of Online Advertising 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

2013 “Funniest” Commercials

Radio Advertising 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 Usually free to create $25.00 per 30 seconds Chapter 6

Disadvantages of Radio Advertising 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 Chapter 6