Transcript 6-1 PowerPoint Notes

Goals
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List the many forms of advertising
discuss advantages and disadvantages
of each type of advertising
Slide 1
Chapter 6
Five Types of Promotion in Promotional Mix
1.
Personal selling
2.
Advertising
3.
Direct Marketing
4.
Sales Promotion
5.
Public Relations
Product Promotion
Activities
Institutional Promotion
Activities
Promotional Mix: strategy created by
adopting a blend of some, if not all, of
the types of promotion available
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
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Go to Kahoot.it
Enter the Key provided by your instructor
Enter your first name as your nickname
Play the game
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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 image.
Slide 6
Chapter 6
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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
Slide 7
What are some types of Advertising you can think of?
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Student contributions:
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Get out your phones and go to Today's Meet:
https://todaysmeet.com/17Advertising
Create a Team name for your row
Select Join
Discuss and list your ideas!
What are some types of Advertising you can think of?:
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Online
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Magazine
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Television
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Outdoor
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Radio
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Transit
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Newspaper
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Social Networking
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Mail
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Online advertising still new – uses different
guidelines than print
◦ Graphics, photos, layouts, text and design must be
professional for a positive impact
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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
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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
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Continues to be the most effective way to reach a
large number of people quickly
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Can communicate through sight and sound
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Can be creative, entertaining, and informative
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Two types:
◦ Commercials - last less than a minute
◦ Infomercials - last ½ hour or more and provide in-depth
coverage about a specific product
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Most costly form or advertising
Chapter 6
(the percentage of respondents said):
 Television - 83%
 Magazines - 50%
 Online - 47%
 Newspapers - 44%
 Radio - 32%
 Billboards/outdoor advertising - 13%
• Include price, contact number, and buy now deals!
• Usually on Paid programming channels
• ½ hour or more in length
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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
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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
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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
◦ 2015 record high cost – any idea?
◦ $4 million for a 30 second ad
◦ Best of 2012
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less expensive than television advertising
listener demographics are more specific
than television
◦ easier to reach target audience
◦ Ex: rock stations target teenagers/young adults
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Fees:
◦ pay for air time
◦ Usually free to create
◦ $25.00 per 30 seconds
Slide 23
Chapter 6
◦ 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
Slide 24
Chapter 6