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Advertising. Chapter 11.1. Step by Step. Advertising is: Paid, non-personal communication between an identified sponsor and a potential customer about a product or service. Sports teams and entertainment venues frequently partner with sponsors to advertise before and during a game or event.

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Chapter 11.1

step by step
Step by Step

Advertising is:

Paid, non-personal communication between an identified sponsor and a potential customer about a product or service.

Sports teams and entertainment venues frequently partner with sponsors to advertise before and during a game or event.

This partnership adds a source of revenue for the team or venue and gives the sponsor access to its potential target customers.


To be cost effective, the advertiser must research and plan carefully each step of the advertising process.

  • Seven steps of the advertising process
    • Set a measurable advertising goal
    • Develop the advertising budget
    • Create an advertising theme
    • Choose the advertising media
    • Create the advertisement
    • Develop an advertising schedule
    • Measure the effectiveness of the advertisement
the goal
The Goal

Determining a specific, measurable goal is the first step in the advertising process.

A company must decide what it wants to accomplish by advertising and how it will know that the goals has been met.

Brand recognition refers to the number of people who recognize the brand name of the product.

the budget
The Budget

The methods used to determine the advertising budget are varied. Some of those methods include:

Marginal Analysis is a technique of setting the advertising budget by assuming the point at which an additional dollar spent on advertising equals additional profit.

Percent of Sales is a method of determining the advertising budget based on an analysis of past sales as well as a forecast of future sales.


Bartering is exchanging merchandise or something other than money for advertising time or space.

  • Fixed Sum per Unit is a method of determining an advertising budget based directly on the number of units sold.
  • Payout Planning is an approach to advertising budgeting in which the dollars spent to advertise are considered an investment toward sales and profits.
  • Competitive Parity is a method of determining an advertising budget that is designed to maintain the current “share of voice” or spending the same amount as your competitors.
the theme
The Theme

The goal of the ad and the product or service will drive the selection of a theme.

The theme of an ad is also known as the tag line.

The tag line is usually a slogan that conveys the main message of the ad.

the media
The Media
  • Media are the vehicles used to convey the advertising messages.
  • The media can include:
    • Print such as newspapers, magazines, plastic bags, and billboards
    • Broadcast/Cable such as radio, TV, and the Internet
  • Media can be divided into:
    • Out-of-home such as billboards, stadium signage, and radio
    • In-home such as TV and magazines

Media strategy is choosing the media that will bring the most effective advertising message to the targeted consumer.

Information about the reach of the media, or which targeted demographic segments are most likely to be reached, is a factor in setting the media strategy.

the advertisement
The Advertisement

With the goal, budget, theme, and media selected, the advertisement is on its way to being completed.

The creative talent in the advertising firm or department writes the copy.

Copy is the spoken or printed words in an advertisement.

Artwork or photographs are added to copy to enhance viewers’ interest and grab their attention.

Wear out occurs when an ad loses its effectiveness due to overexposure or poor message quality.

the schedule
The Schedule

Marketing research data provide demographic information about the target customer and the frequency.

Frequency is the number of times the targeted customer is exposed to the media.

The most cost-effective media provide the greatest reach and the highest frequency at the lowest cost.

Concentration strategy is buying space in or time on a single medium.

Dominance strategy is when a firm buys the maximum reach and frequency in one medium and purchases additional space in or time on other media.

the effectiveness
The Effectiveness

Determining the effectiveness of advertising is critical.

If the ad does not meet its goals, then the cost and efforts have been wasted.

Response rate refers to the number of customers who connect with and act in relation to the ad.

Response data can be collected, compiled, and examined.

putting it all together axe
Putting it All Together - Axe

Axe made maximum use of the dominance strategy when selecting media to reach its target market.

Targeted college-age males

Sent samples of the product to thousands of male college students.

Recipients were also offered a chance to attend a huge party.

Young women were hired to stand in stores and spray the product on young men.

Print advertisements and broadcast media were used extensively to advertise the product and party.

The party was filmed and shown as an hour-long special on a cable television network.

running the show
Running the Show
  • Advertising revenue is critical to the survival of widely distributed entertainment such as that shown by TV networks.
  • The ad firms buy time slots on the TV shows based on the compatibility of the target customers and the potential viewing audiences.
  • Primetime, or when the largest viewing audiences are watching TV, is the most expensive time to advertise.
  • The time slots are priced based on expected audience ratings.