Types of Advertising Promotional Advertising Introduces a new

Types of Advertising ØPromotional Advertising • Introduces a new product, service, or business •

Types of Advertising ØInstitutional Advertising • Creates a favourable impression and goodwill for a

Advertising Objectives Ø Informative Advertising - Inform consumers of a new product, service or

Advertising Objectives ØPersuasive Advertising - Becomes more important as competition increases, the company’s objective

Advertising Objectives ØReminder Advertising- Is important for mature products, it keeps consumers thinking about

Advertising Advantages Ø Large number of people are exposed to advertisements Ø Advertising costs

Advertising Disadvantages Ø Cannot focus on individual needs Ø Some forms of advertising are

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Types of Advertising ØPromotional Advertising • Introduces a new product, service, or business • Encourages an interest in products, explains new features, attributes, etc.

Types of Advertising ØInstitutional Advertising • Creates a favourable impression and goodwill for a business or organization • Promotes a positive image by communicating positive information, example: Community Sponsorship, Environmental Support, etc.

What type of ad is this?

Advertising Objectives Ø Informative Advertising - Inform consumers of a new product, service or feature, to build primary demand. ü ü ü ü Telling the market about a new product Suggesting new uses for a product Informing the market of a price change Explaining how the product works Describing available services Correcting false impressions Reducing buyers’ fears Building a company image

Advertising Objectives ØPersuasive Advertising - Becomes more important as competition increases, the company’s objective is to build demand. ü Building brand preference ü Encouraging switching to your brand ü Changing buyer perceptions of product attributes ü Persuading buyers to purchase immediately ü Persuading buyers to receive a sales call

Advertising Objectives ØReminder Advertising- Is important for mature products, it keeps consumers thinking about the product. ü Reminding buyers that the product may be needed in the near future ü Reminding buyers where to buy the product ü Keeping the product in buyers’ minds during off seasons ü Maintaining top-of-mind product awareness

What is the purpose of this ad?

Advertising Advantages Ø Large number of people are exposed to advertisements Ø Advertising costs per potential customer are lower than other forms of promotion Ø Repetitive viewing, keeps product in consumers’ minds Ø Advertising can “pre-sell” products Ø Businesses are able to select the most appropriate advertising for their target audience

Advertising Disadvantages Ø Cannot focus on individual needs Ø Some forms of advertising are too expensive for many businesses ex. TV Ø Inefficient at times ex. Magazine Ø Often advertising messages are too short, therefore, not able to explain product in detail