Page 42 - Encyclopedia of Business and Finance
P. 42
eobf_A 7/5/06 2:54 PM Page 19
Advertising
desires for its product, the more expensive the advertising ADVERTISING EVALUATION
campaign. Thus, often only large companies can afford to Once the advertising campaign is over, companies nor-
have high-frequency advertisements during a campaign. mally evaluate it compared to the established goals. An
effective tactic in measuring the usefulness of the advertis-
Media Impact. Media impact generally refers to how ing campaign is to measure the pre- and post-sales of the
effective advertising will be through the various media company’s product. In order to make this more effective,
outlets (e.g., television, Internet, print). A company must some companies divide up the country into regions and
decide, based on its product, the best method to maximize run the advertising campaigns only in some areas. The dif-
consumer interest and awareness. For example, a company ferent geographic areas are then compared (advertising
promoting a new laundry detergent might fare better with versus nonadvertising), and a detailed analysis is per-
television commercials rather than simple print ads formed to provide an evaluation of the campaign’s effec-
because more consumers are likely to see the television tiveness. Depending on the results, a company will
commercial. Similarly, a company such as Mercedes-Benz, modify future advertising efforts in order to maximize
which markets expensive products, might advertise in spe- effectiveness.
cialty car magazines to reach a high percentage of its
potential customers. Before any money is spent on any
SUMMARY
advertising media, a thorough analysis is done for each
Advertising is the paid, nonpersonal promotion of a cause,
one’s strengths and weaknesses in comparison to the cost. idea, product, or service by an identified sponsor attempt-
Once the analysis is done, the company will decide which ing to inform or persuade a particular target audience.
media outlet is best to use and will embark on its advertis-
ing campaign. Advertising has evolved to take a variety of forms and has
permeated nearly every aspect of modern society. The var-
ious delivery mechanisms for advertising include banners
Timing. Another major consideration for any company at sporting events, billboards, the Internet, logos on cloth-
engaging in an advertising campaign is when to run the ing, magazines, newspapers, radio spots, and television
advertisements. For example, some companies run ads commercials. While advertising can be successful at get-
during the holidays to promote season-specific products.
ting the message out, it does have several limitations,
The other major consideration for a company is whether
including its inability to focus on an individual con-
it wants to employ a continuous or pulsing pattern of
sumer’s specific needs, provide in-depth information
advertisements. Continuous refers to advertisements that about a product, and be cost-effective for small compa-
are run on a scheduled basis for a given period. The nies. Other factors, such as objectives, budgets,
advantage of this tactic is that an advertising campaign approaches, and evaluation methods must all be consid-
can run longer and might provide more exposure over
ered.
time. For example, a company could run an advertising
campaign for a particular product that lasts years with the SEE ALSO Advertising Agencies; Promotion
hope of keeping the product in the minds of customers.
Pulsing indicates that advertisements will be sched- BIBLIOGRAPHY
uled in a disproportionate manner within a given time Adams, R. (2003). WWW.advertising: Advertising and marketing
frame. Thus, a company could run thirty-two television on the World Wide Web. New York: Watson-Guptill.
commercials over a three- or six-month period to promote Boone, Louis E., and Kurtz, David L. (2005). Contemporary
the specific product is wants to sell. The advantage with marketing 2006 (12th ed.). Eagan, MN: Thomson South-
the pulsing strategy is twofold. The company could spend Western.
less money on advertising over a shorter period but still Brierley, S. (2002). The advertising handbook (2nd ed.). New
gain the same recognition because the advertising cam- York: Routledge.
paign is more intense. Churchill, Gilbert A., Jr., and Peter, Paul J. (1998). Marketing:
Creating value for customers (2nd ed.). New York: Irwin
McGraw-Hill.
Reach. Reach refers to the percentage of customers in the
Farese, Lois, Kimbrell, Grady, and Woloszyk, Carl (2002). Mar-
target market who are exposed to the advertising cam- keting essentials (3rd ed.). Mission Hills, CA:
paign for a given period. A company might have a goal of Glencoe/McGraw-Hill.
reaching at least 80 percent of its target audience during a Kotler, Philip, and Armstrong, Gary (2006). Principles of market-
given time frame. The goal is to be as close to 100 percent ing (11th ed.). Upper Saddle River, NJ: Pearson Prentice-
as possible, because the more the target audience is Hall.
exposed to the message, the higher the chance of future Pride, William M., and Ferrell, O. C. (2006). Marketing concepts
sales. and strategies. New York: Houghton Mifflin.
ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 19