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10-1
Chapter 10

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 Advertising is an investment in a company’s
future
Build brand equity
 One of the first steps is to define a company’s
unique selling proposition

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 Unique selling proposition (USP): a key customer
benefit of a product or service that sets it apart from
its competition
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
Focus on intangible or psychological benefits

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 Promotion: any form of persuasive communication
designed to inform consumers about a product or
service and to influence them to purchase goods or
services
Includes:
Publicity
Personal selling
Advertising

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 Publicity: any commercial news covered by the
media that boosts sales but for which the small
business does not pay
1. Write an article of interest to customers
2. Sponsor an event to attract attention
3. Involve celebrities “on the cheap”
4. Offer to be interviewed on TV and radio stations
5. Publish a newsletter
6. Speak to local organizations
7. Sponsor a seminar

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8. Write news releases and fax them to the media
9. Serve on community and industry boards and
committees
10. Sponsor a community project or support a
nonprofit organization
11. Promote a cause
12. Promote your company’s publicity

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 Personal selling: the personal contact between sales
personnel and potential customers resulting from sales
efforts
 Top sales people:
1. Are enthusiastic and alert to opportunities
2. Are experts in the products or services they sell and
understand how their products and services can
help their customers
3. Concentrate on select accounts with the greatest
sales potential
4. Plan thoroughly
5. Use a direct approach with their customers.

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6. Work from their customer’s perspective
7. Use past success stories and testimonial
8. Leave sales material with potential customers
9. See themselves as problem solvers, not just
vendors
10. Measure success by customer satisfaction as well
as by sales volume

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How Sales Representatives Spend Their Time

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 To improve sales reps’ “closing averages”:
 Hire the right people
 Train sales reps
 Develop a selling system
 Prepare; approach; interview; demonstrate, explain,
and show; validate; negotiate; close
 Be empathetic
 Set multiple objectives
 The primary objective
 The minimum objective
 The visionary objective
 Monitor sales efforts and results

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

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 Twelve tips for effective advertising:
1. Plan more than one ad at a time
2. Set long-run ad objectives and measure performance
3. Use ads, themes, and media that appeal to target
customers
4. View advertising expenditures as investments, not
expenses
5. Use advertising that is different from your
competitors’ advertising
6. Choose the media vehicle that’s best for your
business even if it’s not “number one”

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7. Consider using some else as the spokesperson on your
commercials
8. Focus ads on your company’s USP
9. Devise ways of measuring your ads’ effectiveness that
don’t depend on just tow or three customers’ responses
10. Don’t simply drop an ad because nothing happens
immediately
11. Emphasize the benefits that the product or service
provides to the customer
12. Evaluate the cost of different media

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Characteristics of a Successful Ad

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 Questions to ask when selecting advertising
media:
 How large is my firm's trading area?
 Who are my customers and what are their
characteristics?
 What budget limitations do I face?
 Which media do my competitors use?

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How Shoppers Gather Information About Local Small Businesses

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 Global Online Advertising Expenditures
as a Percentage of Total Advertising Expenditures

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 Advertising Expenditures by Medium
Percentage of Advertising Expenditures

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 Media options:
 Word-of-mouth advertising

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 Word-of-mouth advertising
 Make your business buzz-worthy
 Promote your company to “influencers”
 Make it easy for satisfied customers to spread the
word
 Use e-mail and social media to encourage viral
marketing and amplify your company’s word-of-
mouth advertising
 Tap into the power of YouTube

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 Media options:
 Word-of-mouth advertising
 Internet advertising

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 Internet advertising
 By 2016, U.S. companies are expected to spend $62 billion
on online advertising
 Five types of ads:
Banner
Impression
Click-through rate
Display
Pop-up
Interstitial
Contextual
Pay-per-click
Click fraud

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising

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 E-mail advertising
 Two forms:
 Permission
 Spam
 Triggered e-mail: sent in response to a potential
customer’s actions
 By 2017, 78% of users will access their e-mail on
a mobile device
 In-boxes are moving targets
 Smaller screen sizes

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media

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Social Media Advertising Expenditures in the United States

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 Social media advertising
 Facebook ads
 Twitter ads

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events

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 Sponsorships and special events
 Don’t count on sponsorships for your entire advertising
campaign
 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
 Try to become a dominant sponsor of an event
 Clarify the costs and level of participation required up front
 Get involved

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television

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 Television
 Ranks first in popularity of all media
 Offers distinct advantages:
 Broad coverage
 Ability to focus on a target audience
 Visual advantage
 Flexibility
 Design assistance
 Brief exposure
 Clutter
 Zapping and zipping
 Zappers and Zippers
 Fragmented audiences
 Costs

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 Guidelines for creative television ads
 Keep it simple
 Have one basic idea
 Make it unique
 Get viewers’ attention
 Involve the viewer
 Use emotion
 Consider production values
 Prove the benefit
 Identify your company well and often

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 Using television creatively
 Infomercials
 Direct response television

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio

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 Radio
 Advantages:
 Extensive reach
 Audience delivery
 Market segmentation
 Flexibility and timeliness
 Friendliness
 Disadvantages:
 Poor listening
 Need for repetition
 Limited message

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 Buying radio time
 Zero in on specific advertising target by using the
appropriate radio station
 Time sells in 15-second, 30-second, and 60-
second increments

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 Guidelines for effective radio copy:
Mention the business often
Stress benefits to the listener
Use attention-grabbers
Zero in on a particular audience
Be simple and to the point
Sell early and often
Write for the ear
Prepare your copy
Triple space
Use positive action words
Put the listener in the picture
Focus on getting a response
Don’t stay with a loser

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers

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 Newspapers
 Advantages:
 Selected geographical coverage
 Flexibility
 Timeliness
 Communication potential
 Low costs
 Prompt responses
 Attractive target audience

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 Disadvantages:
 Wasted readership
 Reproduction limitations
 Lack of prominence
 Less effective in reaching young adults
 Short ad life

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines

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 Magazines
 Advantages:
 Long life span
 Multiple channels of engagement
 Reader engagement
 Target marketing
 Ad quality
 Disadvantages:
 Costs
 Long closing times
 Lack of prominence
 Declining circulation rates

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines
 Specialty advertising

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 Specialty advertising
 More than $20 billion is spent annually on promo gifts
 Advantages:
 Reaching select audiences
 Personalized nature
 Versatility
 They work
 Disadvantages:
 Potential for waste
 Cost

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines
 Specialty advertising
 Point-of-purchase ads

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 Point-of-purchase ads
 Shoppers make 76% of all buying decisions at the point of sale
 End-cap and free standing displays are most effective

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines
 Specialty advertising
 Point-of-purchase ads
 Outdoor advertising

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 Outdoor advertising
 One of the oldest forms of advertising
 Advantages:
 High exposure
 Broad reach
 Attention-getting
 Flexibility
 Cost efficiency
 Disadvantages:
 Brief exposure
 Limited ad recall
 Legal restrictions
 Lack of prominence

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 Using outdoor advertising
 Billboards should have:
 Quick and clear product and company identification
 Simple background
 Large illustrations
 Clear, legible fonts
 Black and white designs
 Simplicity
 Illumination
 Right-hand side of highway location
 New trends:
 Internet-connected billboards
 Billboards that send messages to cell phones

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines
 Specialty advertising
 Point-of-purchase ads
 Outdoor advertising
 Transit ads

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 Transit advertising
 Advantages:
 Wide coverage
 Repeat exposure
 Low cost
 Flexibility
 Disadvantages:
 Generality
 Limited appeal
 Brief message

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines
 Specialty advertising
 Point-of-purchase ads
 Outdoor advertising
 Transit ads
 Direct mail

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 Direct mail
 Companies spend $21 billion annually on direct mail
 Advantages:
 Flexibility
 Reader attention
 Rapid feedback
 Measurable results and testable strategies
 Effectiveness
 Disadvantages:
 Inaccurate mailing lists
 Clutter
 High relative costs
 High throwaway rate

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 How to use direct mail
 Need the “right” mailing list
 Consider using list brokers
 The Direct Marketing List Source

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 Media options:
 Word-of-mouth advertising
 Internet advertising
 E-mail advertising
 Social media
 Sponsorships and special events
 Television
 Radio
 Newspapers
 Magazines
 Specialty advertising
 Point-of-purchase ads
 Outdoor advertising
 Transit ads
 Direct mail
 Trade shows

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 Trade shows:
 Companies spend $24 billion annually on trade shows
 Advantages:
 A natural market
 Preselected audience
 New customer market
 Cost advantage
 Disadvantages:
 Increasing costs
 Wasted effort

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 Four methods:
1. What is affordable
2. Matching competitors’ advertising expenditures
3. Percentage of Sales
 Past Sales
 Forecasted Sales
4. Objective-and-Task

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Advertising Scheduling Strategies

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 Three techniques:
1. Comparative advertising: manufacturer shares the cost of advertising with the retailer if the retailer
features its products in its ads
2. Shared advertising: a group of similar businesses forms a syndicate to produce generic ads and then
dubs in local details
3. Stealth advertising: innovative ads that do not look like traditional ads and may be located in
unexpected places

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 Other ways to save
 Repeat ads that have been successful
 Use identical ads in different media
 Hire independent copywriters, graphic designers, photographers, and other media specialists
 Concentrate advertising when customers are most likely to buy

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