Lesson 6.2 The Promotional Mix ─ Advertising

Chapter 6Slide 1

Goals List the many forms of advertising discuss advantages and disadvantages

of each type of advertising

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

1. Personal selling

2. Advertising

3. Direct Marketing

4. Sales Promotion

5. Public Relations

Five Types of Promotion in Promotional Mix

Product Promotion Activities

Institutional Promotion Activities

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

As part of the Promotional Mix

Chapter 6Slide 6

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

Slide 7

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

What are some types of Advertising you can think of?

Student contributions:

What are some types of Advertising you can think of?:

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

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

1. 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

2. 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

3. 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

◦ 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

Chapter 6

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

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

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 = $7500 + $2000 = $9,500

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

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

Chapter 6Slide 21

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 6Slide 22

◦ 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