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To do 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.

There are a number of approaches to get your message across. The promotional mix aimed for your target market (customers) can include the following elements:

Publicity
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.

Sales Promotion
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 effort.

Packaging
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).

Direct Mail
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.

Personal Selling
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.

Advertising
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 their attention.

Radio 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.

Television 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.

Newspapers There are three main categories: daily, weekly and local or community papers. The daily papers

Magazines 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 shops.

Internet 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.

Other 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.

Costs 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.

The formula 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.

Is There 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?

Is It 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 to buy.

Get 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.

 

Botany Bay BEC
21A Dalley Avenue, Pagewood 2035, Telephone: 61 2 9316 5877, Facsimile: 61 2 9666 5141
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