1. Why Advertise and The History of Advertising Mr. Moore Speech Communications I

2. Objective Students will understand the reasons and advantages of advertising and its objectives.

3. Why Advertise? Advertising is every where. Advertiser may not see individual consumer, yet has research (knowledge) about the consumer. Advertising can be far cheaper per potential customer than personal selling. Advertising is better as a sales tool and though it is non-personal yet is more effective.

4. Human Senses and Advertising Though, communication uses all senses like smell, touch, taste, sound & sight, only two are useful in advertising i.e. Sound & Sight. – –Sound: Radio, Television — micro-sound chips in magazines. – –Sight: The most useful medium of communication like print, i.e. “A picture is worth a thousand words.”

5. Advertising & Persuasion Purpose of advertisement is to identify and differentiate one product from another and to persuade the customer for preferring one to another.

6. Products, Services, and Ideas Things advertiser wants consumers to buy. There are three basic differentiations in products – –1. Perceptible – Obviously different from other-like color, size, shape etc. – –2. Imperceptible – Those which exist but are not too obvious. – –3. Induced. – No obvious difference but inform people about the difference

7. History of Advertising 1704 1st newspaper ad, seeking buyer for an Oyster Bay was published. 1843 1st Ad. Agency set up in Philadelphia 1882 Advertising of a soap brand was done with a huge budget of 11000 US$. 1893 A famous beverage brand was registered as a trade mark. 1899 J. Walters: 1st agency opens an office in U.K. 1923 1st entertainment program was sponsored by an advertiser. 1947 J.Walter Thompson 1st agency to cross 100Mil $ in billing.

8. History of Advertising cont. 1976 Indian commercial TV launched. 1978 1st TV commercial is launched. 1990 A new Medium Internet is born. 1993 5 million internet users get on line. 1999 Internet advertising breaks 2 Billion US$ mark. 2003 TV show with built in advertising is planned.

9. Why Promotion is Important? Since businesses must continually promote their organizations, products and policies to gain customer acceptance, you will need to learn successful promotional strategies.Since businesses must continually promote their organizations, products and policies to gain customer acceptance, you will need to learn successful promotional strategies.

10. What is the Promotional Mix? The promotional mix is a combination of the different types of promotion. There are four basic types of promotion:The promotional mix is a combination of the different types of promotion. There are four basic types of promotion: 1.Advertising 2.Publicity/Public Relations 3.Personal Sales 4.Sales Promotion

11. Advertising is any paid form of non-personal promotion of ideas, goods or services. Advertising can be found anywhere from magazines, TV and internet to anything that is ONE-WAY communication.Advertising is any paid form of non-personal promotion of ideas, goods or services. Advertising can be found anywhere from magazines, TV and internet to anything that is ONE-WAY communication.

12. Public relations - The method or activities of establishing and promoting a favorable relationship with the public.Public relations - The method or activities of establishing and promoting a favorable relationship with the public. Publicity is part of public relations and involves placing newsworthy information about a business, product or policy in the media.Publicity is part of public relations and involves placing newsworthy information about a business, product or policy in the media. It’s mostly free.It’s mostly free.

13. Personal sales are when individuals make contact with potential buyers face-to-face to promote their business, products or policies.Personal sales are when individuals make contact with potential buyers face-to-face to promote their business, products or policies.

14. Sales promotion represents all marketing activities other than the three already mentioned, like:Sales promotion represents all marketing activities other than the three already mentioned, like: –Contests –Fashion shows –Coupons Used to stimulate consumer purchase immediatelyUsed to stimulate consumer purchase immediately

15. Factors affecting the promotional mix:Factors affecting the promotional mix: –Technology –Economy –Market –Distribution Factors Affecting the Promotional Mix

16. Match the examples below to one of the 4 strategies in the promotional mix: (advertising, publicity, personal sales, sales promotion)Match the examples below to one of the 4 strategies in the promotional mix: (advertising, publicity, personal sales, sales promotion) 1. TV Commercial 2. Insurance sales4. Coupon 5. contest 6. Fashion Show 7. Magazine Ad 3. News release 7. Home Tupperware Party

17. Advertising AdvantagesDisadvantages Allows large number of people to see the advertised message Can’t focus on individual needs Can be controlled Can be too expensive for many businesses Can have repeat viewers Can be inefficient (short coverage of billboards & magazines) Can pre-sale products before customers go shopping

18. AdvantagesDisadvantages save a business money by extending it’s advertising budget May not be accurate or presented in the way or time that will reach the right audience Can increase a business’ profit and exposure Can be negative or harmful to the business Lack of control of content Public Relation/Publicity

19. AdvantagesDisadvantages Personalized to individual customers Most expensive form/per sale Largest form of promotion Has slower distribution/coverage compared to advertising Easier for personal sales to focus on target market and complete the sale Personal Sales

20. Sales Promotions AdvantagesDisadvantages Variety of activities Short term incentives Includes many different marketing activities to stimulate consumer interest including business to business promotions Can be controlled