Definition: To call the public's attention to your business, usually for the
purpose of selling products or services, through the use of various
forms of media, such as print or broadcast notices
Advertising provides a direct line of communication to your
existing and prospective customers about your product or service.
The purpose of advertising is to:
- Make customers aware of your product or service;
- Convince customers that your company's product or service is
right for their needs;
- Create a desire for your product or service;
- Enhance the image of your company;
- Announce new products or services;
- Reinforce salespeople's messages;
- Make customers take the next step (ask for more information,
request a sample, place an order, and so on); and
- Draw customers to your business.
Your advertising goals should be established in your business
plan. For example, you may want to obtain a certain percentage of
growth in sales, generate more inquiries for sales, or build
in-store traffic. The desired result can simply be increasing name
recognition or modifying the image you're projecting. Objectives
vary depending on the industry and market you're in.
All products and businesses go through three stages, with
different advertising goals for each one.
1. The start-up business. You're new in the market and
need to establish your identity. Your company needs high levels of
promotion and publicity to grab consumers' attention.
2. The growing business. Once your identity is established,
you need to differentiate yourself from your competition and
convince buyers that yours is the service or product to try.
3. The established business. The purpose at this point is to
remind consumers why they should continue buying from you.
No matter which stage your business is in, advertising follows
four steps, according to the industry mnemonic, "AIDA: Awareness,
Interest, Desire, Action." Your job is to make prospective
customers aware that your product or service exists, pique their
interest in what your product or service can do for them, make them
want to try your product or service, and finally take action, by
asking for more information or actually buying the product.
When developing an advertising campaign, complete the following
four-step procedure:
1. Define your market. Determine who your target market
is (those customers most likely to buy your product or service).
One magazine that's fun to read, interesting and helpful in this
regard is American
Demographics.
2. Establish your budget. Know what you can afford to spend
to reach your target audience.
3. Plan which media you'll use. Figure out what are the best
ways to reach your prospective customers with your message.
4. Create an advertising strategy. Choose the most effective
message and visuals for your advertising campaign.