1. 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

2. Promotional Mix
Promotional Mix: strategy created by adopting a blend of some, if not all, of the types of promotion available

3. Five Types of Promotion in Promotional Mix
Personal selling
Advertising
Direct Marketing
Sales Promotion
Public Relations
Product Promotion Activities
Institutional Promotion Activities

4. 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

5. As part of the Promotional Mix
Advertising
As part of the Promotional Mix

6. 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 details about your products and why customers should buy from you
Chapter 6

7. 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

8. Type of Advertising
What are some types of Advertising you can think of?
Student contributions:

9. Type of Advertising Online Magazine Television Outdoor Radio Transit
What are some types of Advertising you can think of?:
Online
Magazine
Television
Outdoor
Radio
Transit
Newspaper
Social Networking
Mail

10. 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

11. 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

12. 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

13. 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

14. Television Advertising
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

15. Commercial Example

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

17. 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 = $ $2000 = $9,500

18. Disadvantages of Television Ads
it is 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

19. 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
2013 record high cost – any idea?
$4 million for a 30 second ad
Best of 2012

20. 2013 “Funniest” Commercials

21. 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
pay for production costs
Chapter 6

22. 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