Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-1 Creative Use of Advertising and Promotion Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-2 Developing a Unique Selling Proposition (USP) USP - A key customer benefit of a product or service that answers the critical question that every customer asks: "What's in it for me?" USP - A key customer benefit of a product or service that answers the critical question that every customer asks: "What's in it for me?" Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-3 Developing A Unique Selling Proposition (USP) Briefly list a few facts that support your products USP Briefly list a few facts that support your products USP Then focus your ads to stress these top benefits and the facts supporting them! Then focus your ads to stress these top benefits and the facts supporting them! Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-4 A Six-Sentence Advertising Strategy 1. What is the purpose of this ad? 2. What USP can you offer customers? 3. What other key benefits support your USP? 4. At whom are you aiming the ad? 5. What response do you want from your target audience? 6. What image do you want to convey in your ads? Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-5 Publicity - any commercial news covered by the media that boosts sales but for which the small business does not pay Publicity - any commercial news covered by the media that boosts sales but for which the small business does not pay Personal selling - the personal contact between sales personnel and potential customers resulting from sales efforts Personal selling - the personal contact between sales personnel and potential customers resulting from sales efforts Advertising - any sales presentation that is non-personal in nature and is paid for by an identified sponsor Advertising - any sales presentation that is non-personal in nature and is paid for by an identified sponsor Creating a Promotional Strategy Tips for Stimulating Publicity Write an article of interest to customers Write an article of interest to customers Sponsor an offbeat event to attract attention Sponsor an offbeat event to attract attention Involve celebrities on the cheap Involve celebrities on the cheap Offer to be interviewed on TV and radio stations Offer to be interviewed on TV and radio stations Publish a newsletter Publish a newsletter Speak to local organizations Speak to local organizations Sponsor a seminar Sponsor a seminar Write news releases and fax them to the media Write news releases and fax them to the media Serve on community and industry boards and committees Serve on community and industry boards and committees Sponsor a community project or support a nonprofit organization Sponsor a community project or support a nonprofit organization Promote a cause Promote a cause Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-6 Chapter 10 Advertising and Promotion Top Salespeople Are enthusiastic and alert to opportunities. Are enthusiastic and alert to opportunities. Are experts in the products or services they sell and understand how their products and services can help their customers. Are experts in the products or services they sell and understand how their products and services can help their customers. Concentrate on select accounts with the greatest sales potential. Concentrate on select accounts with the greatest sales potential. Plan thoroughly. Plan thoroughly. Use a direct approach with their customers. Use a direct approach with their customers. Work from their customers perspective. Work from their customers perspective. Use past success stories and testimonial. Use past success stories and testimonial. Leave sales material with potential customers. Leave sales material with potential customers. See themselves as problem solvers, not just vendors. See themselves as problem solvers, not just vendors. Measure success by customer satisfaction as well as by sales volume. Measure success by customer satisfaction as well as by sales volume. Copyright 2012 Pearson Education, Inc. publishing as Prentice HallChapter 10 Advertising and Promotion10-7 Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall How Sales Representatives Spend their Time Chapter 10 Advertising and Promotion10-8 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 10-9 Successful Personal Selling Requires a Selling System 1. Prepare 2. Approach 3. Interview 4. Demonstrate, explain, and show 5. Validate 6. Negotiate 7. Close the sale Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Fundamentals of a Successful Ad Chapter 10 Advertising and Promotion10-10 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Selecting Advertising Media: Key Questions How large is my firm's trading area? How large is my firm's trading area? Who are my customers and what are their characteristics? Who are my customers and what are their characteristics? Which media are most likely to reach those customers? Which media are most likely to reach those customers? What budget limitations do I face? What budget limitations do I face? Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Selecting Advertising Media: Key Questions Which media do my competitors use? Which media do my competitors use? How important are repetition and continuity of my advertising message? How important are repetition and continuity of my advertising message? How does each medium compare with others in audience, reach, and frequency? How does each medium compare with others in audience, reach, and frequency? (Continued) Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Comparing Media Audience the number of paid subscribers a particular medium attracts Audience the number of paid subscribers a particular medium attracts Reach the total number of people exposed to an ad at least once in a period of time, usually 4 weeks Reach the total number of people exposed to an ad at least once in a period of time, usually 4 weeks Frequency the average number of times a person is exposed to an ad in that same time period Frequency the average number of times a person is exposed to an ad in that same time period Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Selecting Advertising Media: Key Questions Which media do my competitors use? Which media do my competitors use? How important are repetition and continuity of my advertising message? How important are repetition and continuity of my advertising message? How does each medium compare with others in audience, reach, and frequency? How does each medium compare with others in audience, reach, and frequency? (Continued) What does the advertising medium cost? What does the advertising medium cost? Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Advertising Expenditures by Medium Chapter 10 Advertising and Promotion10-15 Advertising Media Options Word-of-mouth Word-of-mouth Copyright 2012 Pearson Education, Inc. publishing as Prentice HallChapter 10 Advertising and Promotion10-16 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Word-of-Mouth Advertising Make your business buzz-worthy Make your business buzz-worthy Promote your company to influencers Promote your company to influencers Make it easy for satisfied customers to spread the word Make it easy for satisfied customers to spread the word Use the Internet to amplify your companys word-of-mouth advertising Use the Internet to amplify your companys word-of-mouth advertising Tap into the power of YouTube Tap into the power of YouTube Advertising Media Options Word-of-mouth Word-of-mouth Sponsorships and Special Events Sponsorships and Special Events Copyright 2012 Pearson Education, Inc. publishing as Prentice HallChapter 10 Advertising and Promotion10-18 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Sponsoring Special Events Dont count on sponsorships for your entire advertising campaign Dont count on sponsorships for your entire advertising campaign Find an event that is appropriate for your company and its products and services Find an event that is appropriate for your company and its products and services Research the event and the organization hosting it before agreeing to become a sponsor Research the event and the organization hosting it before agreeing to become a sponsor Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Sponsoring Special Events Try to become the dominant (or, better yet, the only) sponsor of the event Try to become the dominant (or, better yet, the only) sponsor of the event Clarify the costs and the level of participation required for the sponsorship up front Clarify the costs and the level of participation required for the sponsorship up front Get involved in the event Get involved in the event (Continued) Advertising Media Options Word-of-mouth Word-of-mouth Sponsorships and Special Events Sponsorships and Special Events Television Television Radio Radio Copyright 2012 Pearson Education, Inc. publishing as Prentice HallChapter 10 Advertising and Promotion10-21 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Snappy Radio Copy Should... Mention the business often Mention the business often Stress benefits to the listener Stress benefits to the listener Use attention-grabbers Use attention-grabbers Zero in on a particular audience Zero in on a particular audience Be simple and to the point Be simple and to the point Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Sell early and often Sell early and often Be written for the ear Be written for the ear Be rehearsed before presentation Be rehearsed before presentation Use positive action words Use positive action words Put the listener in the picture Put the listener in the picture Focus on getting a response Focus on getting a response Snappy Radio Copy Should... Word-of-mouth Word-of-mouth Sponsorships and Special Events Sponsorships and Special Events Television Television Radio Radio Newspapers Newspapers Internet Advertising Internet Advertising Advertising Media Options Copyright 2012 Pearson Education, Inc. publishing as Prentice HallChapter 10 Advertising and Promotion10-24 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Advertising on the Internet 2013: U.S. companies spend $37.2 billion on Internet advertising 2013: U.S. companies spend $37.2 billion on Internet advertising Types of ads: Types of ads: Banner Display Pop-up Interstitial Contextual Pay-per-click Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Advertising Permissionvs. spam Permissionvs. spam Radicati Group study: Internet users have more than 3.1 billionaccounts 19 percent of alls are spam Stick to marketing basics Stick to marketing basics Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Advertising Collect customers and potential customers e- mail addresses Collect customers and potential customers e- mail addresses Make subject line short, meaningful, and to-the- point Make subject line short, meaningful, and to-the- point Make thes look and feel consistent with your companys image Make thes look and feel consistent with your companys image Sends when customers are most likely to make purchases Sends when customers are most likely to make purchases Write copy that produces results Write copy that produces results Incorporate social networking links and video Incorporate social networking links and video Use value-added items to increase response Use value-added items to increase response Magazines Magazines Specialty advertising Specialty advertising Point-of-purchase ads Point-of-purchase ads Out-of-home ads Out-of-home ads Transit advertising Transit advertising Direct mail Direct mail Word-of-mouth Word-of-mouth Sponsorships and Special Events Sponsorships and Special Events Television Television Radio Radio Newspapers Newspapers Internet Internet Advertising Media Options Directories Directories Trade shows Trade shows Copyright 2012 Pearson Education, Inc. publishing as Prentice HallChapter 10 Advertising and Promotion10-28 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall Preparing an Advertising Budget What is affordable What is affordable Matching competitors advertising expenditures Matching competitors advertising expenditures Percentage of Sales Percentage of Sales Past Sales Forecasted Sales Objective-and-Task Objective-and-Task Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-30 Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall How to Advertise "Big" on a Small Budget Hire freelance copywriters and artists Hire freelance copywriters and artists Use cooperative advertising Use cooperative advertising Participate in shared advertising Participate in shared advertising Use stealth advertising Use stealth advertising Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall How to Advertise "Big" on a Small Budget Repeat ads that have been successful Repeat ads that have been successful Use identical ads in different media Use identical ads in different media Hire independent copywriters, graphic designers, photographers, and other media specialists Hire independent copywriters, graphic designers, photographers, and other media specialists Concentrate advertising when customers are most likely to buy Concentrate advertising when customers are most likely to buy (Continued) Chapter 10 Advertising and Promotion Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall