Chapter 10 Advertising and Promotion Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1 Creative Use of Advertising and Promotion

Copyright Copyright ©©2009 Pearson Education, Inc. Publishing as 2009 Pearson Education, Inc. Publishing as Prentice HallPrentice Hall

11Chapter 10 Advertising and Chapter 10 Advertising and PromotionPromotion

Creative Use of Advertising and

Promotion



Developing a UniqueDeveloping a UniqueSelling Proposition Selling Proposition (USP)(USP) USP - A key customer benefit of a USP - A key customer benefit of a product or service that answers product or service that answers the critical question that the critical question that everyevery customer asks: "customer asks: "What's in it for What's in it for meme?"?"

Identify your product or Identify your product or service's USP by describing the service's USP by describing the primary benefit it offers primary benefit it offers customers and then list other customers and then list other secondary benefits it providessecondary benefits it provides



Developing A UniqueDeveloping A UniqueSelling Proposition Selling Proposition (USP)(USP)

Briefly list a few facts Briefly list a few facts that support your product’s that support your product’s USP USP

Then focus your ads to Then focus your ads to stress these top benefits stress these top benefits and the facts supporting and the facts supporting them!them!



A Six-Sentence A Six-Sentence Advertising StrategyAdvertising Strategy1.1. What is the purpose of this ad?What is the purpose of this ad?2.2. What USP can you offer customers?What USP can you offer customers?3.3. What other key benefits support What other key benefits support

your USP?your USP?4.4. At whom are you aiming the ad?At whom are you aiming the ad?5.5. What response do you want from What response do you want from

your target audience?your target audience?6.6. What image do you want to convey What image do you want to convey

in your ads?in your ads?



PublicityPublicity - any commercial news covered - any commercial news covered by the media that boosts sales but for by the media that boosts sales but for which the small business does not paywhich the small business does not pay

Personal sellingPersonal selling - the personal contact - the personal contact between sales personnel and potential between sales personnel and potential customers resulting from sales effortscustomers resulting from sales efforts

AdvertisingAdvertising - any sales presentation - any sales presentation that is non-personal in nature and is that is non-personal in nature and is paid for by an identified sponsorpaid for by an identified sponsor

Creating a Promotional Creating a Promotional StrategyStrategy

Tips for Stimulating Tips for Stimulating PublicityPublicity

Write an article of Write an article of interest to customersinterest to customers

Sponsor an offbeat Sponsor an offbeat event to attract event to attract attentionattention

Involve celebrities Involve celebrities “on the cheap”“on the cheap”

Offer to be Offer to be interviewed on TV and interviewed on TV and radio stationsradio stations

Publish a newsletter Publish a newsletter Speak to local Speak to local organizationsorganizations

Sponsor a seminarSponsor a seminar Write news Write news releases and fax releases and fax them to the mediathem to the media

Serve on community Serve on community and industry and industry boards and boards and committeescommittees

Sponsor a Sponsor a community project community project or support a or support a nonprofit nonprofit organizationorganization

Promote a causePromote a cause

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

Top Salespeople…Top Salespeople… Are enthusiastic and Are enthusiastic and alert to opportunities.alert to opportunities.

Are experts in the Are experts in the products or services products or services they sell and they sell and understand how their understand how their products and services products and services can help their can help their customers.customers.

Concentrate on select Concentrate on select accounts with the accounts with the greatest sales greatest sales potential.potential.

Plan thoroughly.Plan thoroughly. Use a direct approach Use a direct approach with their customers. with their customers.

Work from their Work from their customer’s customer’s perspective. perspective.

Use past success Use past success stories and stories and testimonial. testimonial.

Leave sales material Leave sales material with potential with potential customers.customers.

See themselves as See themselves as problem solvers, not problem solvers, not just vendors. just vendors.

Measure success by Measure success by customer customer satisfaction as well satisfaction as well as by sales volume. as by sales volume.


How Sales Representatives Spend Their Time

Active selling10%

Prospecting10%

Problem solving14%

Personal downtime17%

Travel18%

Administrative tasks31%




Successful Personal Successful Personal Selling Requires a Selling Requires a Selling System Selling System 1.1. Prepare Prepare 2.2. Approach Approach 3.3. Interview Interview 4.4. Demonstrate, explain, and Demonstrate, explain, and

showshow5.5. Validate Validate 6.6. NegotiateNegotiate7.7. Close the sale Close the sale

Fundamentals of a Successful Fundamentals of a Successful AdAd




Selecting Advertising Selecting Advertising Media: Key QuestionsMedia: Key Questions

How large is my firm's How large is my firm's trading area?trading area?

Who are my customers and Who are my customers and what are their what are their characteristics?characteristics?

Which media are most Which media are most likely to reach those likely to reach those customers?customers?

What budget limitations do What budget limitations do I face?I face?




Which media do my Which media do my competitors use?competitors use?

How important are How important are repetition and continuity repetition and continuity of my advertising of my advertising message?message?

How does each medium How does each medium compare with others in compare with others in audience, reach, and audience, reach, and frequency?frequency?

(Continued)



Comparing MediaComparing Media

AudienceAudience – the number of paid – the number of paid subscribers a particular medium subscribers a particular medium attracts attracts

ReachReach – the total number of people – the total number of people exposed to an ad at least once in exposed to an ad at least once in a period of time, usually 4 weeksa period of time, usually 4 weeks

FrequencyFrequency - the average number of - the average number of times a person is exposed to an ad times a person is exposed to an ad in that same time period in that same time period




Which media do my Which media do my competitors use?competitors use?

How important are repetition How important are repetition and continuity of my and continuity of my advertising message?advertising message?

How does each medium compare How does each medium compare with others in audience, with others in audience, reach, and frequency?reach, and frequency?

(Continued)

What does the advertising What does the advertising medium cost?medium cost?

Advertising Expenditures by Medium

Television33.2%

Newspapers23.8%

Radio9.4%

Directories7.7%

Magazines11.6%

Outdoor2.9%

Internet10.8%

Other0.6%


Advertising Media Advertising Media OptionsOptions

Word-of-mouth Word-of-mouth




Word-of-Mouth Word-of-Mouth AdvertisingAdvertising

Make your business buzz-worthyMake your business buzz-worthy Promote your company to Promote your company to “influencers”“influencers”

Make it easy for satisfied Make it easy for satisfied customers to spread the wordcustomers to spread the word

Use the Web to amplify your Use the Web to amplify your company’s word-of-mouth company’s word-of-mouth advertisingadvertising

Tap into the power of YouTube Tap into the power of YouTube


Word-of-mouth Word-of-mouth Sponsorships and Sponsorships and Special EventsSpecial Events




Sponsoring Special Sponsoring Special EventsEvents Don’t count on sponsorships Don’t count on sponsorships for your entire advertising for your entire advertising campaigncampaign

Find an event that is Find an event that is appropriate for your company appropriate for your company and its products and services and its products and services

Research the event and the Research the event and the organization hosting it before organization hosting it before agreeing to become a sponsoragreeing to become a sponsor



Sponsoring Special Sponsoring Special EventsEvents Try to become the dominant Try to become the dominant (or, better yet, the only) (or, better yet, the only) sponsor of the event sponsor of the event

Clarify the costs and the Clarify the costs and the level of participation level of participation required for the sponsorship required for the sponsorship up frontup front

Get involved in the event Get involved in the event

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Word-of-mouth Word-of-mouth Sponsorships Sponsorships and Special and Special EventsEvents

NewspapersNewspapers RadioRadio




Snappy Radio Copy Snappy Radio Copy Should...Should...

Mention the business Mention the business oftenoften

Stress benefits to the Stress benefits to the listenerlistener

Use attention-grabbersUse attention-grabbers Zero in on a Zero in on a particular audienceparticular audience

Be simple and to the Be simple and to the pointpoint



Sell early and oftenSell early and often Be written for the earBe written for the ear Be rehearsed before Be rehearsed before presentationpresentation

Use positive action Use positive action wordswords

Put the listener in Put the listener in the picturethe picture

Focus on getting a Focus on getting a responseresponse

Snappy Radio Copy Snappy Radio Copy Should...Should...

TelevisionTelevision MagazinesMagazines Specialty Specialty advertisingadvertising

Point-of-purchase Point-of-purchase adsads

Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio



Out-of-home Out-of-home adsads

Transit Transit advertisingadvertising

Direct mailDirect mail World Wide WebWorld Wide Web

Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio TelevisionTelevision MagazinesMagazines Specialty Specialty advertisingadvertising

Point-of-Point-of-purchase adspurchase ads





Advertising on the WebAdvertising on the Web

2011: U.S. companies spend $36.5 2011: U.S. companies spend $36.5 billion on Web advertising billion on Web advertising

Types of ads:Types of ads: BannerBanner DisplayDisplay Pop-upPop-up InterstitialInterstitial ContextualContextual Pay-per-clickPay-per-click



E-Mail AdvertisingE-Mail Advertising

Permission e-mail vs. spamPermission e-mail vs. spam Radicati Group study: 171 Radicati Group study: 171 billion e-mails sent per daybillion e-mails sent per day

71 percent of those are spam71 percent of those are spam Stick to marketing basicsStick to marketing basics



E-Mail AdvertisingE-Mail Advertising

Collect customers’ and potential Collect customers’ and potential customers’ e-mail addressescustomers’ e-mail addresses

Make subject line short, Make subject line short, meaningful, and to-the-pointmeaningful, and to-the-point

Make the e-mail’s look and feel Make the e-mail’s look and feel consistent with your company’s consistent with your company’s imageimage

Send e-mails when customers are Send e-mails when customers are most likely to make purchasesmost likely to make purchases

Write copy that produces resultsWrite copy that produces results Use value-added items to increase Use value-added items to increase response ratesresponse rates

Out-of-home adsOut-of-home ads Transit Transit advertisingadvertising

Direct mailDirect mail World Wide WebWorld Wide Web

Word-of-mouthWord-of-mouth NewspapersNewspapers RadioRadio TelevisionTelevision MagazinesMagazines Specialty Specialty advertisingadvertising

Point-of-Point-of-purchase adspurchase ads


DirectoriesDirectories Trade showsTrade shows




Preparing an Preparing an Advertising BudgetAdvertising Budget What is affordableWhat is affordable Matching competitor's Matching competitor's advertising expendituresadvertising expenditures

Percentage of Sales Percentage of Sales Past SalesPast Sales Forecasted SalesForecasted Sales

Objective-and-TaskObjective-and-Task


3131Chapter 10 Advertising and Chapter 10 Advertising and PromotionPromotionChapter 10 Advertising and Chapter 10 Advertising and PromotionPromotion


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How to Advertise How to Advertise "Big""Big"on a Small Budgeton a Small Budget Hire freelance copywriters and Hire freelance copywriters and artistsartists

Use cooperative advertisingUse cooperative advertising Participate in shared advertisingParticipate in shared advertising Use stealth advertising Use stealth advertising Maximize publicity with techniques Maximize publicity with techniques such as cause marketingsuch as cause marketing



How to Advertise How to Advertise "Big""Big"on a Small Budgeton a Small Budget Repeat ads that have been Repeat ads that have been successfulsuccessful

Use identical ads in different Use identical ads in different media media

Hire independent copywriters, Hire independent copywriters, graphic designers, photographers, graphic designers, photographers, and other media specialistsand other media specialists

Concentrate advertising when Concentrate advertising when customers are most likely to buy customers are most likely to buy

(Continued)



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Copyright ©2009 Pearson Copyright ©2009 Pearson Education, Inc. Publishing Education, Inc. Publishing as Prentice Hallas Prentice Hall

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Chapter 10 Advertising and Promotion Copyright ©2009 Pearson Education, Inc. Publishing as Prentice Hall 1 Creative Use of Advertising and Promotion