Marketing Essentials Chapter 19

Promotional Advertising
Goal is to increase sales. Supports selling efforts, sale promotions, visual merchandising, and display efforts.
Institutional Advertising
Creates a favorable image for a company and fosters goodwill in the marketplace.
Media
Are agencies, means, or instruments used to convey advertising messages to the public.
Print Media
Includes advertising in newspapers, magazines, direct mail, signs, and billboards. Oldest and most effective ways of advertising. Has least shelf life.
Transit Advertising
Can be found on public transportation. Includes posters inside trains, taxis, and buses; ads on benches, bus stops, kiosk, and newsstands; stain advertising near trains, buses, and airline terminals.
Broadcast Media
Radio and television. Gets a large amount of population.
Online Advertising
Form of advertising that uses either email or the Internet.
Impression
Single appearance of an ad on a computer user’s screen.
Specialty Media
AKA giveaways or advertising specialties; relatively inexpensive, useful items featuring an advertisers name or logo. Calendars, pens, t-shirts, are called premiums or specialty media.
Media Planning
Process of selecting the advertising media and deciding the time or space in which the ads should appear to accomplish a marketing objective.
Audience
The number of people exposed to an ad.
Frequency
Number of times an audience sees or hears an advertisement.
Cost per Thousand (CPM)
Media cost of exposing 1,000 readers or viewers to an advertising impression. Equation —–> —-> ———->
( $Cost of Ad multiplied by 1,000) / Circulation
——-> $400 for ad in Mpls Tribune, 300,000 readers, —–>
$400 X 1,000 = $400,000 / 300,000 = $1.34 to reach 1,000 readers.
Bleed
Ads are printed to the very edge of the page, leaving no white border. Magazines charge 15 -20% more for this.
Circulation
The number of readers or subscribers or customers of a magazine or paper. The rate that a magazine charges for its advertising space is based on circulation.
Cost per column inch
Newspapers display advertising rates by the column inch. If the rate for a column inch is $17 in the Mpls Tribune, and the ad is 4 inches by 3 inches. The cost would be as follows:
$17 x 4 x 3 = $204
Consumer Magazine
People, Life, Sports Illustrated are examples of this. Magazines that are read for pleasure.
Trade Magazine
Publications that are targeted for people with an interest in a particular field or job area.
Media Types
Print, broadcast, online, and specialty media
Directory
This type of media type is in 98% of homes and stays there for a year. A business can receive a free listing of its name, address, and phone number in the White Pages of a telephone directory.
Shopper
a local newspaper with just want ads and coupons. There is no news.
Direct Mail
A media type that 10% return rate would be considered excellent. Usually it is less than 1%. Postcards and flyers. other unwanted mailings. Could also be electronic.
Newspaper
55% of adults read a newspaper everyday. Within a specific geographic area, newspapers appeal to a greater number of people than magazines do.
Advertising
This always identifies the name of the business. It also identifies the features and benefits of a product or service.
Terms of Bill or Invoice (2/10, net 30)
2/10 net 30 are terms of a bill or invoice. This means that if you pay your Bill or invoice within 10 days you get a 2% discount. So if your bill was $18,000 and you paid it within 10 days you would only have to pay $17,640. However if you pay your bill after the first 10 days it is due in full and is due in 30 days. You will owe $18,000 if you pay on 11 – 30 days after receiving it.
banner ad
an ad that appears in a wide,shallow rectangle at the top or bottom of Websites.
display ad
a newspaper ad that includes art or photos, copy, and a business or product’s logo.
outdoor advertising (billboard)
often restricted to roadways.