Advertising PowerPoint PPT Presentation

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What is Advertising?. An important part of the way a business promotes its products and services to customersUse of

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1. Advertising

2. What is Advertising? An important part of the way a business promotes its products and services to customers Use of “media” to reach and communicate with potential customers Encourages customers to buy through information and/or persuasion

3. How is Advertising Used in the UK?

4. Choice of Advertising Medium Who does the medium reach? National or local audience? How many customers will see the advert? Nature of product Media needs to reflect image of product E.g. a recruitment advert would be placed in a trade magazine or newspaper but a lipstick advert would be shown on TV or women’s magazines Position in product life cycle Launch stage will need different advertising than adverts for a product that is well established Cost of medium Television is the most expensive; national advertising is more expensive than local advertising May want to consider cost per head if reaching a larger audience

5. Television Advertising Advantages Use of pictures and sound very powerful combination Can reach a large audience Can target audience with different adverts going out with certain programs (children’s TV and toys) Disadvantages Very expensive – both the cost of making the adverts – and the cost of buying the broadcasting time Need to get message across in very short space of time – e.g. 15-30 seconds Need to look good against some other very clever and attractive advertising by other businesses and/or competitors

6. Classified and Display Advertising Classified advertising Normally put into a newspaper or magazine Expressed solely in words and numbers Less space – therefore lower cost Display advertising Space also bought in newspapers or magazines Can be filled with words and/or pictures Takes up more space and is more expensive Often more effective in attracting attention of readers

7. Persuasive and Informative Advertising Persuasive advertising Aims to convince customers that they really like the product or service Focuses on product benefits and features Aims to persuade customers to buy – i.e. increase demand for the product or service Informative advertising Provides customer information Mostly done by government (e.g. health campaigns, new welfare benefits)

8. Newspaper Advertising Advantages Cheaper than TV advertising Market segments can be targeted better: National, regional and local newspapers Target different socio-economic groups – e.g. popular tabloids (Sun, Mirror) Newspapers also have special sections, such as Homes, Travel and Gardens where advertising will reach target audience Disadvantages Newspaper readership is falling – adverts do not reach as many people Still expensive – particularly for smaller businesses

9. Advertising Agencies Role Plan, organise and produce advertising campaigns Design and produce advertising material (e.g. posters, display adverts, television commercials) Monitor and report on effectiveness of advertising Advantages: Expertise a business may not have, e.g. copywriters, designers and media buyers Specialise in particular markets (e.g. agencies

10. Advertising and the Law Advertising is covered by legislation (law) Trade Descriptions Act – goods advertised for sale must be as they are described. However, the advertising industry is largely “self-regulated” Advertising Standards Authority – regulates adverts that appear in “non broadcast media” (e.g. newspapers, magazines, posters) Broadcasting regulator (OFCOM) regulates adverts on television and radio Misleading adverts can be referred to the Office of Fair Trading

11. “Above Line” and “Below Line” Above the line Paid for communication in independent media E.g. advertising on TV or in newspapers All advertising done via advertising agencies is “above the line” – because the agency is paid to arrange publication of the adverts Below the line Promotional activities where business has direct control No payment made for the “advertising” itself E.g. direct mail, point of sale displays, giveaways

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