The Advertising Plan C38

Objectives  List advantages and disadvantages of newspapers, magazines, direct mail, television, and radio.  Explain the four factors to be considered when choosing media.  Describe how effectiveness of advertising is determined.  Name two benefits of advertising.  Explain why laws have been passed to regulate advertising.

Marketing Terms  advertising agency advertising agency  advertising plan advertising plan  Better Business Bureau (BBB) Better Business Bureau (BBB)

advertising terms Handout

 An advertising agency develops ads and commercials for other businessesadvertising agency ©2007 JupiterImages Corporation

The Advertising Plan  Advertising plan Advertising plan  a plan that specifies how the money budgeted for advertising will be used  developed by  advertising department of the company or  advertising agency  indicates the appropriate media to use  indicates where ads should be placed to reach the target market

 Corporations, nonprofits, and governments spend billions of dollars on advertising

Selection of Media  The key to a successful advertising plan  choose the most appropriate media based on the  product, target market, and budget  advantages and disadvantages of each medium Photo by Amy J. Berk

Slogans Worksheet Snap crackle and get to work The slogan Work-Sheet.

Factors to Consider 1. target market and the media habits of its members 2. type of product to be promoted 3. nature of the message 4. cost

Target Market  Which media does your target market listen to or view?  many businesses hire marketing research companies that specialize in answering this question ©2007 JupiterImages Corporation

Type of Product  Different media are better for different types of products  Television is popular for consumer products because  the audience is large and diverse  it can show how a product is used  it can use actors to portray emotions Describe a TV commercial. Do you think it persuaded watchers to buy the product?

Type of Product  Magazines are usually used for advertising fashions  because the quality of reproduction is high  so ads appear attractive ©2007 JupiterImages Corporation

Type of Product  B2B products are generally advertised in trade publications, at trade shows, and online National Restaurant Association

The Message  Different media work better for messages of different length and complexity  simple messages  work best on TV and radio  more complex messages  are better delivered in print ads, such as direct mail or specialty magazines  or on the Internet

Cost of Media  The cost of media varies widely  network TV is most expensive  not necessarily the best for all products  local cable TV is less expensive  radio is inexpensive and has wide reach  Internet is relatively inexpensive, but has limited reach  local newspapers are relatively inexpensive and have wide reach

The COST of Advertising Worksheet

Effectiveness of Advertising  It is difficult to determine the effectiveness of advertising  when a customer enters a store and buys a product, it is nearly impossible to trace the influences ©2007 JupiterImages Corporation

Effectiveness of Advertising  Marketing researchers have developed ways to determine whether an ad achieves its goals  before the ad appears to the general public  focus groups are used to test the ad’s overall effectiveness  after the ad appears  testing measures the increase in awareness of the brand and its image

Effectiveness of Advertising  Effectiveness of direct mail campaigns is often easier to measure by  counting the number of  response cards sent back  phone inquiries received  Web site hits ©2007 JupiterImages Corporation

Advantages and Disadvantages  Major types of media  direct mail  outdoor and transit  directories  radio  online  specialty  magazines  television  newspapers WORK-SHEET / Assignment For each medium, list its advantages and disadvantages in terms of showing the product, reaching customers, and cost.

Advertising and Society  Benefits of advertising  inform customers of choices  speed acceptance of new products, which encourages product development  increase demand, which increases need for production, which increases hiring  stimulate competition, which leads to newer, cheaper, better products  pay for broadcast media, the arts, and public service announcements

What benefits have you experienced from advertising? ©2007 JupiterImages Corporation

Advertising and Society  Responsibilities of advertisers  tell the truth about a product, its price, its materials, its source, and the actual advantages it can offer  avoid being deceptive in advertising and pricing  Some advertisers have not been truthful  Laws have been passed to  protect consumers from improper and deceptive advertising practices

Laws and Regulations  Laws established federal agencies that monitor advertisers’ actions and enforce regulations  Federal Trade Commission (FTC)  Food and Drug Administration (FDA)  Federal Communications Commission (FCC)  Patent and Trademark Office  Library of Congress

Self-Regulation  The advertising industry  prefers to regulate itself  established organizations that help it self-monitor and self- regulate  Better Business Bureau (BBB)  National Advertising Review Council  American Advertising Association Do you have any complaints about the advertising or selling practices of a store?

Self-Regulation  Better Business Bureau (BBB) Better Business Bureau (BBB)  local BBBs handle complaints about the advertising and selling practices of local businesses ©2007 JupiterImages Corporation

Ethics  Even with federal laws, advertisers have a great deal of freedom  ethics begin where the law ends  ethical advertising follows the rules of truth and accuracy regardless of the situation  industry organizations promote ethical advertising  Sometimes a company believes it is acting ethically, then learns the public disagrees

Social Responsibility  Advertisers often donate their expertise to promote charitable causes and events  examples: American Cancer Society’s “Walk for a Cure” and the Muscular Dystrophy Association’s “Jerry Lewis Telethon”  Some professional organizations within the advertising industry  help advertisers donate time and money for civic events and community projects

Legal Guidelines Handout

Find an Advertising Agency Handout Assignment

The end

Review  What is an advertising plan?  List the four factors to consider when choosing an advertising medium.  How does the type of message affect the choice of media?  What are some of the benefits of advertising?  Why do laws exist to regulate advertisers?

Glossary  advertising agency. Business that develops an ad or commercial, and then places it in the appropriate media.  advertising plan. Plan that specifies how the money budgeted for advertising will be used. Back

Glossary  Better Business Bureau (BBB). Organization that promotes fair advertising and selling practices across all industries. Back