Fact Sheets: Advertising and Promotion
well in business, customers have to know about you and your
products or services. Many small business people question
the value of advertising. What they forget is that advertising
can build sales volume at a lower cost per sale than any other
method. It is necessary to advertise, but with limited funds
available every dollar must count. The newer the business,
the more advertising is required to make it known.
are a number of approaches to get your message across. The
promotional mix aimed for your target market (customers) can
include the following elements:
Radio advertising is more effective when it is used frequently,
but be sure you identify what the prime listening time is
for your clients. The individual stations will provide rate
cards with audience profiles and discuss what can be bought
with your budget.
This is very expensive and most small businesses cannot
afford this type of advertising. If you decide it is for
you, choose the channel and timing most appropriate for
you. Most channels have facilities to make your ad and can
advise of the appropriate time to place your ad. The businesses
it serves best are those with products and services with
a wide appeal, not specialised businesses.
There are three main categories: daily, weekly and local
or community papers. The daily papers
There is a wide variety of these and before advertising
you must assess which will best suit your target market.
Magazines best serve businesses whose target markets are
well defined, such as restaurants, entertainment and specialty
The Internet has opened up a whole new world of options
for both business and consumers and is especially powerful
as a medium for advertising and promoting services and branded
products. A well-structured website may reach a great number
of potential clients.
Placing an ad in the Yellow Pages telephone directory is
a very good method of advertising for services. Another
important method is to display an outstanding sign at your
place of business which will attract local traffic. Check
with your local Council regarding approvals before erecting
any external signage.
There are many ways to assess the usefulness of advertising,
but the most important one is results - does it make people
buy your product? This can be measured by sales, but this
often does not happen until after the advertisement is long
gone. One simple measurement method of the cost of your
advertising and its effectiveness is the cost per thousand
method (CPM). CPM tells how much it will cost to get a message
to one thousand people.
is: Cost of sending message x 1,000 = Cost per thousand Number
of people reached For example, if a daily newspaper's circulation
is 30,000 and an ad costs $500, then the CPM will be $16.67
per thousand. CPM can be used as a guideline to compare the
relative cost of different advertising media, but you must
also consider: location of target market, size of target market,
type of people in target market and the results achievable.
Advertising Checklist · Is Your Message Simple and Clear?
Is your message easily understood? Crowded ads, or ads with
too much information, will not be effective.
a Big Headline? A good headline is very important to the success
of an advertisement. In print advertising your headline is
80% of the ad. 80% of the readers read no further than the
headline. · Is It Relevant? Does your advertisement describe
your product, service or store?
Different From Your Competition? Is the advertising fresh
and original or is it merely a pale carbon copy of your competitor's
advertising? · Does It Demonstrate Customer Benefits? Nothing
works harder or sells better than an ad which shows customer
benefit. · Can You Be Found? Does the ad prominently mention
your business name, address, phone and/or fax number, e-mail
address and website? The objectives of the advertisement are
as follows: · Get the customer's attention. · Interest the
customer in your store, product or service. · Create a desire
the customer to take action. In order for a business to keep
its share of the market, expenditures must bear some relationship
to what competitors are spending. Aggressive competition usually
requires aggressive advertising. The New Tax System Ensure
that you are able to claim your business's tax credits for
GST paid by obtaining appropriate documentation (eg Tax Invoices)
for advertising and other taxable supplies. Business Enterprise
Centre staff are always available to talk over business management
issues. Call the BEC to set up a confidential interview with
an experienced business counsellor.
Publicity includes such things as non-paid messages in the
different news media such as newspapers, magazines, radio
and television. This may be in the form of news stories and
announcements which mention your product or business, or the
exposure your business can receive through community involvement
such as charity support.
This includes all types of specials; promotions such as giveaways
(caps, pens, T-shirts, etc.), free samples, coupons, contests
and point-of-purchase displays designed to help your sales
Containers such as boxes, wrapping, see-through plastic packages,
tins, bags and cartons used to deliver or display products.
In the service business packaging can mean how you present
your service (your company brochure).
Brochures or letters sent to potential customers through the
mail. If you use this method your message must be simple and
interesting. generally have a much wider circulation and higher
advertising costs. When placing ads in newspapers, be certain
that your ad is placed in the appropriate section of the paper.
Make sure you prepare a budget and target your audience before
deciding in which paper(s) to run your ad. The Newspaper Advertising
Bureau of Australia Ltd on (02) 9955 8599 may be able to provide
information to assist with the use of this medium.
Direct one-on-one selling to customers by you or your sales
representatives in the store, over the phone, or at customers'
homes or businesses.
This includes paid messages using different advertising media
such as radio, television, newspapers, magazines and billboards.
In selecting the media for advertising, attempt to identify
your market audience and then decide the best way to attract
Botany Bay BEC
21A Dalley Avenue, Pagewood 2035, Telephone: 61 2 9316 5877, Facsimile: 61 2 9666 5141 email