Introduction Advertising influential in nature a powerful tool

Introduction Advertising: Þ influential in nature Þ a powerful tool

Functions of Advertising • To increase sales • To introduce new products / features • To promote public image of a firm • To create brand loyalty • To educate the public

Types of Advertising • Informative advertising • Persuasive advertising

Advertising Techniques • Soft sell or hard sell: – – – – Associate to lifestyle Help to avoid rejection Create a positive mood Recommend by personalities Appeal to sex Get recognition Make use of observable facts

Advertising Media Television advertising Advertising in cinemas Newspaper advertising Advertising on magazines & periodicals Radio advertising Transit advertising Advertising by posters & signboards Advertising by direct mail Advertising on yellow pages Advertising by leaflets & handouts Advertising in exhibitions & trade fairs Advertising on the Internet

Television Advertising Advantages • reach a huge no. of people in a short time • appealing • actual demonstration can be seen • the easiest way to build up image • choose a particular broadcasting period to attract target groups Advertising Media Disadvantages • cost is high • tend to be short • deliberately skipped by people

Advertising in cinemas Advantages • attractive • audience are concentrated on what is shown Advertising Media Disadvantages • cannot reach the nonmoviegoers • latecomers will miss the advertising

Newspaper Advertising Advantages Disadvantages • relatively cheaper • not attractive enough • budget is flexible • daily newspaper will not be kept for a long time • can contain more details • can be kept by readers for • only confined to the sense of sight future reference • can be read at any time and place Advertising Media

Advertising on Magazines and Periodicals Advantages • will be kept for a longer time • will be handed on to more readers • easier to reach potential customers • more effective for persuasive advertising • colour printing is more attractive Advertising Media Disadvantages • only confined to the sense of sight • readership is smaller than newspaper • more expensive than newspapers advertising

Radio Advertising Advantages • relatively cheaper than that of TV • can capture target customers • less disturbing Advertising Media Disadvantages • no visual support • difficult to capture the focus of audience • unlikely to be recorded for future reference

Transit Advertising Advantages Disadvantages • most places can be reached • production is simple and cheap • cost is flexible • electronic road shows have both sound and visual effects • without a specific group of audience • audience are not concentrated on what is shown • Paintings only confined to the sense of sight • Passengers may feel annoyed to road shows Advertising Media

Advertising by Posters and Signboards Advantages Disadvantages • cost is low • content is limited • message is straightforward • location is restricted • longer exposure Advertising Media • only eye-catching

Advertising by Direct Mail Advantages • Can reach the target customers • full control over timing and format of advertising Advertising Media Disadvantages • cost is higher • may be treated as junk mails

Advertising on Yellow Pages Advantages • Cost is low • coverage is large Advertising Media Disadvantages • Unlikely to stimulate the initial demand of people to purchase a product

Advertising by Leaflets and Handouts Advantages • cost is very low Disadvantages • can provide details • Delivery process is labour-intensive • can be kept for future reference • not many people can get the message • reach target groups easily Advertising Media

Advertising in Exhibitions and Trade Fairs Advantages Disadvantages • allow demonstrations and • cost is high direct explanations • may not raise public • easier to attract potential interest buyers • too many products may • immediate feedback Advertising Media distract potential consumers’ attention

Advertising on the Internet Advantages Disadvantages • cost is low • need to update regularly • no time and place restrictions • may be attacked by computer viruses • Interactive • only restricted to those get access to the Internet Advertising Media

Factors Affecting the Choice of Advertising Media • Characteristics of the potential customers • Nature of the product Nature of Characteristics products • Contents of the message of customers • Cost Market coverag Cost • Market coverage e Contents Profe of nal ssio Profmessage essio Magazin M na e agazin e l

Launching an Advertising Campaign Ø Advertising Campaign = a series of strategies Ø 2 stages: – Plans before promotion – Evaluations after promotion

Plans Before the Promotion • • • Setting the objectives Setting the budget Setting the approach and choice of media Advertising production Pre-testing Setting the schedule of advertising

Evaluation After the Promotion • Comparing the sales before and after the advertising promotion • Considering the length of the campaign and the frequency of advertisements • Justifying the effectiveness and finding alternative methods or media

Major Work of an Advertising Agency Consultati on Presentati on Market research Concept creation

Arguments For Advertising • • Improve living standard Provide job opportunities Lower the prices of goods Stabilize the economy Raise the quality of goods Promote social activities Subsidize mass media Provide information

Arguments Against Advertising • • Waste of resources Raise the cost Stimulate materialism Mislead the public Immoral Generate garbage Reduce competition Interruption

Government Controls and Restrictive Measures on Advertising • Televisions and Radios: ____________ Broadcasting Authority • Films: ___________________ Film Censorship (Amendment) Ordinance • Newspapers, magazines, periodicals and posters: ______________________ Control of Obscene and Indecent Articles Ordinance • Others: different controls to protect the consumers