6.02 Exemplify Advertising

What is advertising? Any non-personal paid form of communication designed to inform, persuade, or remind customers about a good or service

What is media? The agencies or means used by a company to convey an advertising message

What is cooperative advertising ? Occurs when a manufacturer helps a retailer pay for advertising costs For example: Kellogg’s gives Kroger money to help them advertise Kellogg’s cereals

Advertising includes: Print Media Newspapers Magazines Direct Mail Outdoor advertising Directory advertising Transit advertising

Print Media Newspapers Advantages: Low cost. Distribution level is known. Disadvantages Limited distribution. Limited life span. Black and white print is visually less appealing.

Print Media Magazines Advantages Color printing is visually appealing. Ability to target the desired audience. Higher quality medium than newspapers. Disadvantages Higher cost to create and produce. More lead time required than newspapers.

Print Media Direct mail (catalogs, letters, and coupons) Advantages Can be highly selective and flexible with format and timing. Inexpensive to produce. Disadvantages Low response rates Expensive to distribute Often viewed as “junk mail.”

Print Media Outdoor advertising (signs and billboards) Advantages Relatively inexpensive. 24/7 visibility. Disadvantages Limited viewing time. Increased government regulations.

Print Media Directory advertising (telephone books) Advantages Allows targeting based on geographics. Targets all geographics. Disadvantage Printed infrequently-changing ad difficult Limited space and quality of advertisments.

Print Media Transit advertising (located on moving vehicles) Advantages Wide, captive audience. Economical. Disadvantages Subject to defacement. Inability to target a specific audience.

Advertising includes: Broadcast Media Broadcast media is popular because it reaches a large audience. Television Radio

Broadcast Media Television: Combines color, action, and sound. Ads are 30,45,or 60 seconds in length. Advantages Ability to demonstrate product features and benefits. Advertisers can choose target audiences. Disadvantages High production and airtime costs. Short life span. New technology enables viewers to skip commercials.

Broadcast Media Radio: Reaches a large audience and ads are 10,20,30,or 60 seconds in length. Advantages Cost effective. Can be created and changed quickly. Ability to reach target audience through different formats. Disadvantages Appeals only to sense of sound. Short life span. Channel surfing.

Advertising includes: Online Media The use of email and the World Wide Web to promote products. A growing concept. Electronic Direct Mail Online Ads

Online Media Electronic direct mail is an advertising message sent via email. Advantages Ability to target an audience. Inexpensive Personalized messages. Disadvantages May be viewed as a nuisance. Spam filters can reduce unauthorized messages.

Online Media Online ads include banners, pop-ups, and buttons. Advantages Inexpensive Can be interactive. Disadvantage Viewed as a nuisance. Often a low response rate.

Advertising includes: Specialty media Also called giveaways, are inexpensive, useful items with a company’s name or logo. Advantages Company’s name is always visible. Customers enjoy freebies. Disadvantages Limited distribution. Some recipients will never become customers (wasted distribution).

Advertising Agencies help to… Design ads and ad campaigns

Cooperative advertising occurs when A manufacturer helps a retailer pay for the cost of advertising locally.