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It Pays to Advertise!




Integrated Marketing
Integrated Marketing
  Communications
   Communications




                                  1
Developing a Marketing
     Communications Plan
Step 1: Create specific,
measurable objectives.
Step 2: Identify and analyze
the target audience.
Step 3: Design an
advertising message and
choose the media for
transmitting it.


                               2
Build Ads Around 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?”
Identify your product or service's USP
by describing the primary benefit it
offers customers and then list other
secondary benefits it provides.


                                         3
Build Ads Around a Unique
   Selling Proposition (USP)
                  (continued)



Don’t overlook the intangible or
psychological benefits your product
or service offers.
Briefly list a few facts that support
this USP.
Then, focus your ads to stress these
top benefits and the facts supporting
them!

                                        4
A Six-Sentence Advertising
            Strategy
What is the purpose of this ad?
What USP can you offer customers?
What other key benefits support your USP?
At whom are you aiming the ad?
What response do you want from your target
audience?
What image do you want to convey in your
ads?


                                             5
Five Fundamentals of a Successful Advertisement.

                                                                                         It should emphasize a key
          It should attract attention.                                                   benefit of the product or
                                                                                         service to the customer.




                                                      It should communicate
                                                      the company’s Unique
                                                      Selling Proposition (USP).



        It should prove the USP
        and benefits to the customer                                                     It should motivate customers
        with facts, statistics, or                                                       to take action immediately.
        testimonials.

Source: Adapted from Jerry Fisher, “Fine Print,” Entrepreneur, November 1994, pp. 145-
Can Your Ad Pass These 7 Tests?

Scan test
Comprehension test
Differentiation test
Puffery test
Believability test
Immediate clarity test
USP test                 Click Here
                         For Details

                                       7
The Scan test: scan the ad quickly, reading only the headline
and any copy that is designed to stand out and looking at the
photos or drawings that it includes. Can you tell what the ad
is offering and, more importantly, does the benefit jump out
at you?
The comprehension test: Give the ad to someone who fits the
profile of your target audience but who is unfamiliar with the
product or service you are advertising. After reading the ad
once can that person tell you what the product or service is,
what benefits it provides, what the offer is, and how to order?
The differentiation test: Does the combination of ad copy and
graphics differentiate your product or service from those of
your competitors? If a prospective customer read your ad and
one of your chief competitor's ads, would she be bale to tell
how your product is different and better?
The puffery test: Go through your copy and highlight every
word or phrase that can be considered “sales puffery,” such
as “best,” “greatest,” “finest,” and others. Can you eliminate
these words and replace them with specific facts? If not, can
you support the ad’s claims with customer testimonials?
                                                                  8
The Believability test: Give your ad to a potential
customer and ask her to read through it. Ask her to
highlight any claims in the ad that she finds hard to
believe. Can you change them to make them more
believable or offer facts to support them?
The immediate clarity test: After the potential
customer conducts the believability test, ask her to
circle any words, phrases, or abbreviations that are
not clear to her. Rewrite those parts of your ad.
The USP test: Is the ad built around your company’s
USP? Does the USP come through in the message the
ad sends to potential customers?




                                                        9
Promotion Includes…
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.
Advertising - any sales presentation that is
nonpersonal in nature and is paid for by an
identified sponsor.


                                                  10
Tips for Stimulating Publicity
Write an article of interest   Sponsor a seminar.
to customers.                  Write news releases and fax
Sponsor an off-beat event.     or e-mail them to the media.
Involve celebrities “on the    Serve on community and
cheap.”                        industry boards and
Offer to be interviewed on     committees.
TV and radio stations.         Sponsor a community
Publish a newsletter.          project or support a
Speak to local                 nonprofit organization.
organizations.                 Promote a cause.



                                                              11
Sponsorships and Special Events

Sponsoring special events generates
publicity, attracts interest, and provides a
lasting impression of a company in
customers’ minds.
Small companies can create their own
special events.



                                               12
Tips for Sponsoring an Event

Don’t count on sponsorships for your
entire advertising campaign.
Look for or create an event that is
appropriate for your business.
Research the event and the organization
hosting it before agreeing to become a
sponsor.


                                          13
Tips for Sponsoring an Event
                 (continued)




Try to become the dominant (or ideally,
the only) sponsor of the event.
Clarify the costs and the level of
participation required for sponsorship up
front.
Get involved; take an active role in the
event.


                                            14
Top Salespeople…

Are enthusiastic and alert to new opportunities.
Are experts in the products and services they
sell.
Concentrate on select accounts.
Plan thoroughly.
Use a direct approach. They
get right to the point with
customers.


                                                   15
Top Salespeople…
                 (continued)


Work from the customer’s perspective.
Use past success stories.
Leave sales material with clients.
See themselves as problem solvers, not
just vendors.
Measure their success not just by sales
volume but by customer satisfaction.


                                          16
Successful Personal Selling
 Requires a Selling System

Create trust and respect - Establish rapport
with the prospect.
Interview the prospect - Let the prospect
talk to determine the key criteria that
influence the buying decision.
Demonstrate, explain, and show – Make
clear the benefits of your product or service.



                                                 17
Successful Personal Selling
 Requires a Selling System
                  (continued)


Validate - Prove the claims about your
product or service.
Overcome objections- Listen for objections
and try to overcome them.
Close - Stop talking and ask for the order.




                                              18
Selecting Advertising Media:
          Key Questions
How large is my firm's trading area?
Who are my customers and what are
their characteristics?
Which media are my target customers
most likely to watch, listen to, or read?
What budget limitations do I face?




                                            19
Selecting Advertising Media:
          Key Questions
                      (continued)


Which media do my competitors use?
How important are repetition and
continuity of my advertising message?
How does each medium compare with
others in its audience, its reach, and its
frequency?
What does the advertising medium cost?
  Absolute cost-the actual dollar outlay
  Relative cost-the cost of an ad per potential
  customer reached
                                                  20
Advertising Media Options

Word-of-Mouth     Outdoor ads
Newspapers        Transit advertising
Radio             Directories
Television        Trade shows
Magazines         Specialty advertising
Direct mail       Point-of-purchase
World Wide Web    ads

                                          21
Advertising Expenditures by Medium

          25% 23.5%
          20%     19.3%19.1%
Percent



          15%                                                      13.0%
          10%                  7.7%
                                      5.9% 4.8%
           5%
                                                  1.9% 2.2% 2.5%
           0%




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                                      Medium
Newspapers

Advantages
 Selected geographic coverage
 Flexibility
 Timeliness
 Communication potential
 Low cost
 Prompt responses


                                23
Newspapers
                  (continued)




Disadvantages
  Wasted readership
  Reproduction limitations
  Lack of prominence
  Declining readership
  Short ad life




                                24
Radio

Advantages
  Universal infiltration
  Market segmentation
  Flexibility and timeliness
  Friendliness
Disadvantages
  Poor listening
  Need for repetition
  Limited message

                               25
Snappy Radio Copy Should....
Stress benefits to the    Be rehearsed before
listener.                 presentation.
Use attention-getters.    Use positive action
Zero in on a particular   words.
audience.                 Put the listener in the
Be simple and to the      picture.
point.                    Mention the advertiser
Sell early and often.     often.
Be written for the ear.   Focus on getting a
                          response.
                                                    26
Television

Advantages
 Broad coverage
 Visual advantage
 Flexibility
 Design and production assistance




                                    27
Television
                 (continued)




Disadvantages
  Brief exposure
  Clutter
  Zapping
  Fragmented audience
  Costs




                               28
Creative Television Ads
Keep it simple.        Use emotion.
Have one basic idea.   Consider
Make your point        production values.
clear.                 Prove your
Make it unique.        product’s or
Get viewers’           service’s benefit.
attention.             Identify your
Involve the viewer.    company well and
                       often.
                                            29
Magazines

Advantages
  Long life spans
  Multiple readership
  Target marketing
  Ad quality
Disadvantages
  Cost
  Long closing times
  Lack of prominence

                         30
Direct Mail

Advantages
 Selectivity
 Flexibility
 Reader attention
 Rapid feedback
 Measurable results and
 testable strategies
 Effectiveness

                          31
Direct Mail
                  (continued)




Disadvantages
  Inaccurate mailing lists
  Clutter
  High relative costs
  High throwaway rate




                                32
Creating Direct Mail Ads That
        Really Work
Promise benefits in the headline.
Use short “action” words.
Use lots of white space.
Use eye-catching words.
Forget grammatical rules.
Repeat the offer at least three times.
Offer proof of claims and endorsements.
Ask for the order.

                                          33
Creating Direct Mail Ads That
        Really Work
                   (continued)

Ask the reader questions in the copy.
Use high-quality paper and envelopes.
People usually open envelopes that resemble
bills.
Address envelopes to a particular person.
Use stamps if possible.
Use a “P.S.” because recipients almost always
read them.
Make the order form easy to fill out.

                                                34
Advertising on the Web

Banner ads
Pop-up ads
Cookies
Full-page ads
Push technology ads
E-mail ads
  Permission e-mail
  Spam


                              35
Outdoor Advertising
Advantages
  High exposure
  Broad reach
  Flexibility
  Cost efficiency
Disadvantages
  Brief exposure
  Limited ad recall
  Legal restrictions
  Lack of prominence


                            36
Transit Advertising

Advantages
  Wide coverage
  Repeat exposure
  Low cost
  Flexibility
Disadvantages
  Generality
  Limited appeal
  Brief message

                            37
Directories

Advantages
  Prime prospects
  Long life
Disadvantages
  Lack of flexibility
  Ad clutter
  Obsolescence


                           38
Trade Shows

Advantages
  Natural market
  Pre-selected audience
  New customer market
  Cost advantage
Disadvantages
  Increasing costs
  Wasted effort

                          39
Specialty Advertising

Advantages
  Reaching selected audiences
  Personalized nature
  Versatility
Disadvantages
  Potential for waste
  Costs


                                40
Preparing An Advertising Budget
  What is affordable
  Matching competitor's advertising
  expenditures
  Percentage of Sales
    Past Sales
    Forecasted Sales
  Objective-and-Task


                                      41
How To Advertise “Big”
      On A Small Budget
Take advantage of cooperative
advertising.
Consider shared advertising.
Repeat ads that have been successful.
Use identical ads in different media.




                                        42
How To Advertise “Big”
      On A Small Budget
                (continued)




Hire independent copywriters and
artists.
Concentrate advertising when customers
are most likely to buy.
Maximize publicity with techniques such
as cause marketing.



                                          43

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Integrated marketing communication

  • 1. It Pays to Advertise! Integrated Marketing Integrated Marketing Communications Communications 1
  • 2. Developing a Marketing Communications Plan Step 1: Create specific, measurable objectives. Step 2: Identify and analyze the target audience. Step 3: Design an advertising message and choose the media for transmitting it. 2
  • 3. Build Ads Around 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?” Identify your product or service's USP by describing the primary benefit it offers customers and then list other secondary benefits it provides. 3
  • 4. Build Ads Around a Unique Selling Proposition (USP) (continued) Don’t overlook the intangible or psychological benefits your product or service offers. Briefly list a few facts that support this USP. Then, focus your ads to stress these top benefits and the facts supporting them! 4
  • 5. A Six-Sentence Advertising Strategy What is the purpose of this ad? What USP can you offer customers? What other key benefits support your USP? At whom are you aiming the ad? What response do you want from your target audience? What image do you want to convey in your ads? 5
  • 6. Five Fundamentals of a Successful Advertisement. It should emphasize a key It should attract attention. benefit of the product or service to the customer. It should communicate the company’s Unique Selling Proposition (USP). It should prove the USP and benefits to the customer It should motivate customers with facts, statistics, or to take action immediately. testimonials. Source: Adapted from Jerry Fisher, “Fine Print,” Entrepreneur, November 1994, pp. 145-
  • 7. Can Your Ad Pass These 7 Tests? Scan test Comprehension test Differentiation test Puffery test Believability test Immediate clarity test USP test Click Here For Details 7
  • 8. The Scan test: scan the ad quickly, reading only the headline and any copy that is designed to stand out and looking at the photos or drawings that it includes. Can you tell what the ad is offering and, more importantly, does the benefit jump out at you? The comprehension test: Give the ad to someone who fits the profile of your target audience but who is unfamiliar with the product or service you are advertising. After reading the ad once can that person tell you what the product or service is, what benefits it provides, what the offer is, and how to order? The differentiation test: Does the combination of ad copy and graphics differentiate your product or service from those of your competitors? If a prospective customer read your ad and one of your chief competitor's ads, would she be bale to tell how your product is different and better? The puffery test: Go through your copy and highlight every word or phrase that can be considered “sales puffery,” such as “best,” “greatest,” “finest,” and others. Can you eliminate these words and replace them with specific facts? If not, can you support the ad’s claims with customer testimonials? 8
  • 9. The Believability test: Give your ad to a potential customer and ask her to read through it. Ask her to highlight any claims in the ad that she finds hard to believe. Can you change them to make them more believable or offer facts to support them? The immediate clarity test: After the potential customer conducts the believability test, ask her to circle any words, phrases, or abbreviations that are not clear to her. Rewrite those parts of your ad. The USP test: Is the ad built around your company’s USP? Does the USP come through in the message the ad sends to potential customers? 9
  • 10. Promotion Includes… 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. Advertising - any sales presentation that is nonpersonal in nature and is paid for by an identified sponsor. 10
  • 11. Tips for Stimulating Publicity Write an article of interest Sponsor a seminar. to customers. Write news releases and fax Sponsor an off-beat event. or e-mail them to the media. Involve celebrities “on the Serve on community and cheap.” industry boards and Offer to be interviewed on committees. TV and radio stations. Sponsor a community Publish a newsletter. project or support a Speak to local nonprofit organization. organizations. Promote a cause. 11
  • 12. Sponsorships and Special Events Sponsoring special events generates publicity, attracts interest, and provides a lasting impression of a company in customers’ minds. Small companies can create their own special events. 12
  • 13. Tips for Sponsoring an Event Don’t count on sponsorships for your entire advertising campaign. Look for or create an event that is appropriate for your business. Research the event and the organization hosting it before agreeing to become a sponsor. 13
  • 14. Tips for Sponsoring an Event (continued) Try to become the dominant (or ideally, the only) sponsor of the event. Clarify the costs and the level of participation required for sponsorship up front. Get involved; take an active role in the event. 14
  • 15. Top Salespeople… Are enthusiastic and alert to new opportunities. Are experts in the products and services they sell. Concentrate on select accounts. Plan thoroughly. Use a direct approach. They get right to the point with customers. 15
  • 16. Top Salespeople… (continued) Work from the customer’s perspective. Use past success stories. Leave sales material with clients. See themselves as problem solvers, not just vendors. Measure their success not just by sales volume but by customer satisfaction. 16
  • 17. Successful Personal Selling Requires a Selling System Create trust and respect - Establish rapport with the prospect. Interview the prospect - Let the prospect talk to determine the key criteria that influence the buying decision. Demonstrate, explain, and show – Make clear the benefits of your product or service. 17
  • 18. Successful Personal Selling Requires a Selling System (continued) Validate - Prove the claims about your product or service. Overcome objections- Listen for objections and try to overcome them. Close - Stop talking and ask for the order. 18
  • 19. Selecting Advertising Media: Key Questions How large is my firm's trading area? Who are my customers and what are their characteristics? Which media are my target customers most likely to watch, listen to, or read? What budget limitations do I face? 19
  • 20. Selecting Advertising Media: Key Questions (continued) Which media do my competitors use? How important are repetition and continuity of my advertising message? How does each medium compare with others in its audience, its reach, and its frequency? What does the advertising medium cost? Absolute cost-the actual dollar outlay Relative cost-the cost of an ad per potential customer reached 20
  • 21. Advertising Media Options Word-of-Mouth Outdoor ads Newspapers Transit advertising Radio Directories Television Trade shows Magazines Specialty advertising Direct mail Point-of-purchase World Wide Web ads 21
  • 22. Advertising Expenditures by Medium 25% 23.5% 20% 19.3%19.1% Percent 15% 13.0% 10% 7.7% 5.9% 4.8% 5% 1.9% 2.2% 2.5% 0% et re dio O rs Pa s er il n or s s w Ma e Di isio er M orie rn th pe do in Ra ap O te az ut ct v ct In sp le ag re Te Di Ne Medium
  • 23. Newspapers Advantages Selected geographic coverage Flexibility Timeliness Communication potential Low cost Prompt responses 23
  • 24. Newspapers (continued) Disadvantages Wasted readership Reproduction limitations Lack of prominence Declining readership Short ad life 24
  • 25. Radio Advantages Universal infiltration Market segmentation Flexibility and timeliness Friendliness Disadvantages Poor listening Need for repetition Limited message 25
  • 26. Snappy Radio Copy Should.... Stress benefits to the Be rehearsed before listener. presentation. Use attention-getters. Use positive action Zero in on a particular words. audience. Put the listener in the Be simple and to the picture. point. Mention the advertiser Sell early and often. often. Be written for the ear. Focus on getting a response. 26
  • 27. Television Advantages Broad coverage Visual advantage Flexibility Design and production assistance 27
  • 28. Television (continued) Disadvantages Brief exposure Clutter Zapping Fragmented audience Costs 28
  • 29. Creative Television Ads Keep it simple. Use emotion. Have one basic idea. Consider Make your point production values. clear. Prove your Make it unique. product’s or Get viewers’ service’s benefit. attention. Identify your Involve the viewer. company well and often. 29
  • 30. Magazines Advantages Long life spans Multiple readership Target marketing Ad quality Disadvantages Cost Long closing times Lack of prominence 30
  • 31. Direct Mail Advantages Selectivity Flexibility Reader attention Rapid feedback Measurable results and testable strategies Effectiveness 31
  • 32. Direct Mail (continued) Disadvantages Inaccurate mailing lists Clutter High relative costs High throwaway rate 32
  • 33. Creating Direct Mail Ads That Really Work Promise benefits in the headline. Use short “action” words. Use lots of white space. Use eye-catching words. Forget grammatical rules. Repeat the offer at least three times. Offer proof of claims and endorsements. Ask for the order. 33
  • 34. Creating Direct Mail Ads That Really Work (continued) Ask the reader questions in the copy. Use high-quality paper and envelopes. People usually open envelopes that resemble bills. Address envelopes to a particular person. Use stamps if possible. Use a “P.S.” because recipients almost always read them. Make the order form easy to fill out. 34
  • 35. Advertising on the Web Banner ads Pop-up ads Cookies Full-page ads Push technology ads E-mail ads Permission e-mail Spam 35
  • 36. Outdoor Advertising Advantages High exposure Broad reach Flexibility Cost efficiency Disadvantages Brief exposure Limited ad recall Legal restrictions Lack of prominence 36
  • 37. Transit Advertising Advantages Wide coverage Repeat exposure Low cost Flexibility Disadvantages Generality Limited appeal Brief message 37
  • 38. Directories Advantages Prime prospects Long life Disadvantages Lack of flexibility Ad clutter Obsolescence 38
  • 39. Trade Shows Advantages Natural market Pre-selected audience New customer market Cost advantage Disadvantages Increasing costs Wasted effort 39
  • 40. Specialty Advertising Advantages Reaching selected audiences Personalized nature Versatility Disadvantages Potential for waste Costs 40
  • 41. Preparing An Advertising Budget What is affordable Matching competitor's advertising expenditures Percentage of Sales Past Sales Forecasted Sales Objective-and-Task 41
  • 42. How To Advertise “Big” On A Small Budget Take advantage of cooperative advertising. Consider shared advertising. Repeat ads that have been successful. Use identical ads in different media. 42
  • 43. How To Advertise “Big” On A Small Budget (continued) Hire independent copywriters and artists. Concentrate advertising when customers are most likely to buy. Maximize publicity with techniques such as cause marketing. 43