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Chapter 14 Advertising: The Art ofAttracting an Audience

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Introduction to Business, Advertising: The Art of Attracting an Audience Slide 2 of 66

Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:

1.1. IdentifyIdentify the different types of media used to advertise products.

2.2. List List advantages and disadvantages for each type of advertising medium.

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Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:

3.3. NameName factors in the cost of advertising.

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Why It’s ImportantWhy It’s Important

Businesses rely on advertising to get your attention and to promote their products. Advertising pays for many of the costs of TV, radio, newspapers, and magazines.

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Key WordsKey Words

advertisingmass mediadirect-mail advertisingtransit advertisinginfomercialwebcast

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Key WordsKey Words

cyber adspop-up adsbanner ads screen ads

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Advertising Media Advertising Media Advertising is the paid, nonpersonal form of communication that businesses use to promote their products.

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Advertising Media Advertising Media Mass media are means of communication such as TV, radio, and newspapers.

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Advertising Media Advertising Media The type of medium an advertiser uses depends on the market it wants to reach.

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Figure14.1 CATCHY SLOGANS

Advertising slogans have become so well known in many cases that people all over the country recognize them. Here are ten slogans from advertisements.

How many of the products or services can you name?

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Print Media Print Media Print media use writing and pictures to communicate.

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Newspapers Newspapers Newspapers are the main advertising medium in the United States.

More than 50 percent of adults in the United States read newspapers.

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Newspapers Newspapers Advertisers can target people within a certain area.

The cost of printing an ad is fairly cheap.

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Newspapers Newspapers Most people throw their newspapers away after they read them, so an ad’s lifespan is usually short.

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Magazines Magazines Most magazines are national in scope and appear every week or every month.

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Magazines Magazines Special-interest magazines like Teen and Sports Illustrated make it possible to reach target markets on a large scale.

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Magazines Magazines People take their time to read magazines and often save them, so magazine ads have a much longer lifespan than newspaper ads.

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Magazines Magazines Most magazines are printed in color with much higher quality ink and paper than newspapers.

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Magazines Magazines Magazines are so broadly circulated they are of little use to local advertisers.

Magazine ads can’t be easily changed or used to promote a limited offer.

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Graphic OrganizerQualities of Newspaper andQualities of Newspaper andMagazine AdvertisingMagazine Advertising

Graphic OrganizerGraphic Organizer

Narrow CirculationNarrow Circulation

Local/regional reachLocal/regional reach

Short lifespanShort lifespan

Easy preparationEasy preparation

Basic printing and paperBasic printing and paper

InexpensiveInexpensive

Broad circulation

Regional/national reach

Long lifespan

Complex preparation

Quality printing and paper

Expensive

Newspaper AdvertisingNewspaper Advertising Magazine AdvertisingMagazine Advertising

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Direct-Mail Advertising Direct-Mail Advertising Direct-mail advertising consists of ads sent by mail to people’s homes.

It is the biggest advertising medium after TV and newspapers.

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Direct-Mail Advertising Direct-Mail Advertising Direct mail allows advertisers to reach a specific target market.

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Direct-Mail Advertising Direct-Mail Advertising Direct-mail advertisers can use a variety of formats—letters, fliers, postcards, and catalogs—and include coupons or free samples.

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Direct-Mail Advertising Direct-Mail Advertising The cost of sending ads through the mail can be very high.

Direct mail is often referred to as “junk mail” because people who receive direct-mail advertising often throw it out without ever looking at it.

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Directory Advertising Directory Advertising Directory advertising, which consists mostly of phone books, is especially useful for local advertisers.

The cost of a directory ad is usually very cheap.

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Directory Advertising Directory Advertising Phone books are used in almost every home, in all areas, and kept for at least a year.

A disadvantage of directory ads is that they have to compete with numerous similar ads.

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Outdoor Advertising Outdoor Advertising The most common form of outdoor advertising is a billboard.

They are useful for local businesses and businesses that cater to travelers.

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Outdoor Advertising Outdoor Advertising The main disadvantage of billboards is that people often drive by them too quickly to notice.

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Transit Advertising Transit Advertising Transit advertising usually consists of posters placed on the sides of buses, in subway stations, inside trains, and at airports.

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Broadcast Media Broadcast Media Broadcast media are the most effective means of advertising.

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Television Television Television has an advantage over any other medium because it combines sounds, images, and motion.

Some ads are so effective that they become part of our everyday language.

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Television Television TV ads can be shown on national, local, or cable stations to reach any kind of market.

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Television Television An infomercial is a TV program, usually 30 minutes long, made to advertise a product.

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Television Television The biggest disadvantage of TV ads is that they can be very expensive to produce.

Advertisers also have to pay to broadcast an ad during a TV show.

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Radio Radio Like TV ads, radio ads can reach a very wide audience.

Radio ads use music, dialogue, and sound effects creatively to get an audience’s attention.

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Radio Radio Radio stations broadcast within certain areas so they are a good medium for local advertising.

Advertisers can reach people on the move.

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Webcasting Webcasting A webcast is like a TV or radio broadcast but it is sent and received over the Web.

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Webcasting Webcasting A webcast usually consists of a live broadcast made by a Web camera (or “cam”) crew hired to film a specific location or event.

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Cyber Ads Cyber Ads Cyber ads are ads that appear on the Internet.

Cyber ads are different from webcasts in that they’re displayed like magazine ads.

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Cyber Ads Cyber Ads Pop-up ads appear for a few seconds when you first log onto the Internet or when you click on a site.

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Cyber Ads Cyber Ads Banner ads are displayed across the top or bottom of the screen and remain there.

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Cyber Ads Cyber Ads Screen ads appear at the left or right of the screen and can be printed for future reference.

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Cyber Ads Cyber Ads Cyber ads can be sent directly to people on mailing lists and can include order forms like direct-mail ads.

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Cyber Ads Cyber Ads Cyber ads have an added advantage in that they can use sound effects and animation.

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Fast Review

1. What are some of the differences between newspaper and magazine ads?

2. What are some disadvantages of outdoor ads such as billboards?

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Fast Review

3. Name places where you would see transit ads.

4. What are some advantages of advertising on the radio rather than on TV? continued

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Fast Review

5. What are the three biggest media for advertisers?

6. What advantages do print media and cyber ads share?

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Advertising Rates Advertising Rates The factors that determine advertising rates are: • The size of an ad• The number of people it reaches• How often it appears • When it appears • Where it is placed

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Figure14.2 BIG SPENDERS

This chart shows the five companies who spent the largest sums of money on advertising in a recent year. General Motors Corporation, for example, spent about $3.7 billion on advertising.

Think about the advertisements for these five companies. In what media have you seen their advertisements? Why do you think their spending for advertisements is so extensive?

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Print Media Print Media Newspaper and magazine rates are based on circulation, or the number of people who read them.

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Print Media Print Media Newspaper and magazine ads are sold by the inch on the page.

Ads that appear on the front or back cover of a magazine cost more than ads inside the magazine.

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Broadcast Media Broadcast Media The cost of radio and TV ads depends on the size of the audience.

The cost to advertise on a national network is much more expensive than on a local station.

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Broadcast Media Broadcast Media The cost of radio and TV ads also depends on what time of day an ad is shown.

Advertisers also pay more for special events like the Oscar Awards or the Super Bowl.

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Broadcast Media Broadcast Media Radio and TV advertisers usually pay for ads that are 10, 30, or 60 seconds long.

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Broadcast Media Broadcast Media Advertisers often hire media consultants and ad agencies to put together advertising packages for them.

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The Internet The Internet The cost of Internet advertising is based on the size and format of ads.

The length of time an ad runs also affects the price.

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The Internet The Internet Internet advertisers pay a certain amount for every 1,000 people that receive the ad.

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Fast Review

1. What factors determine ad costs?

2. On what day and what time might a film studio advertise an adult action movie?

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What store features a blue police light flashing?

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What do you think was the impetus behind the creation of Kmart’s BlueLight Special?

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Why do you think Kmart went to such costly and creative lengths to create the BlueLight Special campaign?

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How does Kmart’s alliance with Martha Stewart help Kmart?

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Information bombards you. On the job, you’ll have to figure out what information is necessary, or relevant. Other information is irrelevant.

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Distinguishing Between Relevant and Irrelevant Information

Business Building BlocksBusiness Building Blocks

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Relevant information will define, explain, illustrate, or offer cause-and-effect relationships concerning the main topic you’re exploring.

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If someone gives you irrelevant information, ask questions that will redirect his or her focus to what’s important.



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End ofChapter 14 Advertising: The Art ofAttracting an Audience

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