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Advertising An Element of Promotion Lesson Objectives • Explain the concept and purpose of advertising • Identify the types of advertising media • Discuss planning and selection of media What is Advertising? The non-personal communication of ideas and products by an identified sponsor. How does advertising use a set format? • Advertisements are measured by time or space –A radio spot is usually 30 seconds long (time) –A newspaper ad can be 1/4 page (space) Promotional Advertising • Designed to increase sales of a company’s products • Create an interest in products • Introduce new products and businesses • Explain a product • Support personal selling efforts • Create new markets Institutional Advertising • Attempts to create a favorable impression (image) and goodwill for a business or an organization • Presents information about a company’s role in the community, important public issues and topics of general interest. Medium/Media • Agencies, means or instruments used to convey messages Print Media • Written form • Oldest • More effective • • • • • • Newspaper Magazine Direct Mail Outdoor Directory Transit Broadcast Media • Television • Radio • Internet Specialty Media • Inexpensive novelty items with an advertiser’s name • “Free” with no obligation to buy • • • • • • Calendars Pens/pencils Hats Key chains Coffee mugs The list is endless • • • • • Other Media Sports arenas Theaters Home video rentals DVDs and CD-ROMs In-store – Electronic shelf ads – Instant coupons – Floor – Cart displays – Sound systems Digital Media TV versus Digital Media Television • Standards for advertising to children • May not pressure or mislead children • Not allowed to exaggerate product characteristics • advertising alcohol and tobacco products to minors is forbidden. Digital Media • Largely unregulated • No national boundaries TV versus Digital Media Television Digital Media • Engages children only as passive consumers who just watch and listen • Engages children interactively, • Allows them to react to the content provided by the marketer and participate in online environments TV versus Digital Media Television Digital Media • Time slots purchased to appeal to specific markets • Advertising on television has a certain "look and feel" • Corporations create their own programming. • Build entire online environments • Collect information about their present and future customers. • Blended into the content of a Web site • Lines are blurred between advertising, entertainment and information. TV versus Digital Media Television Digital Media • Traditional marketing tools give advertisers audience profile • Children are anonymous • Internet marketers can collect data through interactions: – Registration forms – Quizzes and surveys – Computer ‘cookies’ Online Marketing Strategies Banner Ads • Most obvious strategy • Sometimes flashing or animated • Encourages ‘clicking’ to obtain more information about products Subtle Ads • Virtual environments • Key words – World – Village – Town – Clubhouse – Planet • Personalization Other Strategies • Trade Characters – Brand recognition – Brand loyalty • Interactive games and activities • Downloadable screensavers • E-mail postcards • Clubs • Contests Media Planning and Selection • Process of selecting ad media • Deciding time/space allocation • Presents the product and appropriate business image? • Targets desired customer? • Results in desired response rate (cost-effectiveness) ADVERTISING An Element of Promotion