Transcript Promotional Media

Marketing a Small Business
Promotional Media
Used by Small Businesses.
Channels of communication that
serve as tools for promoting ideas,
goods, and services to consumers.
Factors Affecting the
Costs of Advertising Media
• Types of media
• Circulation
• Production costs
• Preferred space positions
• Demographics of target audience
• Editorial credibility and prestige (image)
• Ability to obtain response rate
Types of Media
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Newspaper
Magazine
Internet
Radio
Television
• Circulation - Important in all media because
rates are based on circulation totals.
Primary circulation: The total number of
copies sold.
Secondary circulation: The number of pass
along readers (those who read the
newspaper but do not purchase it).
Circulation
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Reach is the number of different people in a
target audience who are exposed at least one
time to a promotional message.
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Each person is included only once, even if they
view the message more than once.
Frequency is the average number of times a
person in the target audience is exposed to a
promotional message.
Circulation
•CPM = Cost of an ad X 1000 divided by
audience
•Only part of the audience exposed to an
advertisement would be considered likely
prospects for a product.
•Extensive coverage means reaching a larger
audience.
•Intensive coverage means reaching a smaller
group of people more often.
Production Costs
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Color rates – Each time a color is added
to the advertisement the rate increases.
Four
color or Full-color ads are the
most expensive.
Black & White rates – Lowest rates that
are offered for advertisements.
•Production costs: Usually low; the
advertiser is not charged for the actual
production costs of the ad.
•Color requirements: Usually poor quality
in the newspaper; the cost for color is
normally very expensive—can increase cost
by 40%.
•Production costs: High costs are passed
along to the advertisers.
•Preferred position: Most desirable positions
include the front and back covers both inside
and outside.
•Color: Runs approximately 30% higher.
Run-of-paper (ROP): The ad
appears wherever there is room
for it.
Premium position: For higher
rates, the ad will appear in the
space thought to attract the
greatest audience attention such
as first page or back cover.
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Bleed pages
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These are pages that have no white border.
The ad is printed to the edge of the page.
This feature can increase cost by 15 to 20%.
Broadcast time - Rates vary based on
five factors.
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Time of day
Season of the year
Popularity
Commercial length
Audience reach
Internet
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Fast growing media for
advertising
Product information easily
available
Advertising rates are based
on type of format desired:
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Banner ads
Button/text links
Pop ups
•Audience size
•Time availability
•Commercial length
•Production costs are less than for
television and vary widely
•Audience
• The larger the audience, the higher the rate will be.
• Network time which reaches national audiences is
higher than that for regional or local television.
• Charge time is based on audience ratings.
• Audience demographics influence the rate.
• Audience size and composition are affected by time
of day, season of the year, program quality, and
program popularity.
Demographics of
Target Market
Media selected should
be able to reach the
desired target
market.
Editorial
credibility & image
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Degree of positive image of the chosen
media impacts its rates for advertising.
The media must have the ability to present
a believable product.
Ability to Obtain
Response Rate
Media should be able to:
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reach a large number of customers
obtain a high response rate