Forms of Advertising

Forms of Advertising

Mr. Medley's Economics

Forms of Advertising

Most businesses engage in multiple kinds of promotion. Nearly all of them create advertising of some kind to promote the products they make or the services they provide. Producers use product advertising for several reasons:

• to introduce new goods or services
• to draw consumers into their stores or sites
• to encourage sales or promote special events

Forms of Advertising

Product Advertising Companies around the world use multiple forms of advertising to communicate messages to consumers. One main form of advertising, product advertising, is fairly self-explanatory. It is paid promotion of a specific product or service. As a consumer, you see product advertising everywhere: television, the Internet, business signs, billboards, the radio, print ads, direct mailings, social media, and more. For retail businesses, the goal of advertising is simple: get customers to make purchases.

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Comparative Advertising This form of product advertising involves a business comparing its product to those of its competitors. An ad could include offers such as better price, increased quantity for your money, or additional features or benefits.

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Direct Mail This form of advertising was one of the earliest methods of sending product information to consumers. Often termed promotional mail, direct mailing includes catalogs, flyers, and product or service brochures.

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Cooperative Advertising This common form of advertising is used by wholesalers and manufacturers who jointly advertise a product. For example, if a manufacturer wants to promote a new coffeemaker, it might team up with a wholesaler or retailer of household goods to advertise the product. Because the product is advertised directly from the manufacturer, the wholesaler is then able to sell it at a discounted price, and keep track of supplies so it can have large quantities in stock.

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Promotional Advertising This form of advertising involves creating an ad campaign featuring a special activity of some kind as part of the promotion. For example, sale promotions might offer discounted prices on featured products for a limited time, or advertise a free gift with a minimum purchase. This type of advertising also applies to product displays that draw customers to buy products or services.

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Retail Advertising In-store retailers advertise to get customers in the door. Retailers have a limited window of opportunity to get a customer's attention. Many stores run their own ads at the local level, but oftentimes retailers are also dependent on other levels of ad and marketing support. For example, national department stores like Macy's use nationwide ad campaigns, usually involving ads (both print and electronic) that appear in media across the United States. Each local branch of Macy's and other national stores depends on these corporate promotions to bring in business. The focus of the ads themselves varies, but there are basic strategies to most ads used in retailing.

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Advertising Product Features This strategy can be carried out by a local store, but oftentimes it is part of the company's overall campaign. These ads tend to focus solely on a single featured product. Advertisements and promotions generally come directly from a manufacturer or producer of the product. Advertising focuses exclusively on the product features or benefits.

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Advertising Price and Product Availability Ads based on price and availability make up a major portion of the ads consumers see. They are intended to inform customers that the product is available and to encourage them to buy in various ways. Typical ads of this sort feature products from many manufacturers that list the prices and benefits of each; think of the weekly ads that arrive with a Sunday newspaper, for example. With these kinds of ads, companies have to consider the following:

• Retailers must ensure product availability to consumers if they are going to advertise in this way.
• Advertising provides price information and any applicable discounts or sales promotions.
• Advertisements come from the retailer, either local or as part of a national campaign.

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Vendor Advertising Another type of retail advertising is referred to as vendor advertising. This is advertising that comes directly from a particular vendor, intended to get consumers to exclusively buy a specific brand, without including a named price or specific deal on the product. Examples of Vendor Advertising:

• television ad for Apple iPads
• television and print ads for Nike athletic apparel
• Estee Lauder Cosmetics Company ads that run in fashion magazines
• Coca-Cola ads that air during televised sporting events

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Broadcast and Online Media When retailers or marketers talk about "broadcast media," they often mean television and radio. Until the advent of the Internet, these were the primary non-print ways of advertising to a wide audience. The Internet similarly reaches a broad spectrum of people, and is now often grouped with broadcast media because of its similar scope. These mediums can be effective channels for advertising. They can generate appealing, animated images and connect directly with the audience in a more emotional way than most print ads.