2008

NEED AND FEED

Foundation

www.needandfeed.org ALI ZULFIKAR ZAHEDI

BBA, PGDPM, MBA, DIP in AD

Why it is not worth a company

using certain types of
advertising and how the
company would research the
advertising medium and arrives
at the conclusion that the
advertising is not worth
spending time and money on
 www.needandfeed.org

2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

Why it is not worth a company using certain

types of advertising and Include information
regarding how the company would research the
advertising medium and arrive at the
conclusion that the advertising is not worth
spending time and money on.
--------------------------------------------------------------------------------------------

Company must understand and analysis carefully the types of

advertising they going to run to make worth for them. On the other
Hand Company also should look of the lessons to understand why it is
not worth like:

Cost and choose the media

There are some advertising media were it would not be worth

advertising because the company might not have the money to
advertise in all the advertising mediums, like press and magazines
advertising because the range of cost is extremely wide, the smallest
black and white advertisement is some magazines can cost into the
thousands. Some question are classic one advertisers are advised to
ask themselves before deciding how much to invest in publishing a
product or services, Is money sufficient to advertise in all the
advertising, what is the advertising objective, what can the product
afford, what are competitors spending, the way of advertising budget.
If company does not get the answer of these then, advertising would
not be worth for a company.

Good design

While on the subject of design, company should try to redesign the

site has been made more complicated with advertising. If company
does not make a good design according company establishment then
advertising would not be worth for a company.

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2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

Too many choices

Company make first mistake by offering too many choices. Keeping it

simple makes it easier for everybody. If not then advertising would
not be worth for a company.

Statistics

Doing a survey of site visitors can also be advantageous as company

hopefully get more insight beyond what a stats package can offer, like
gender, age, and interests. If not accurate statistic, advertising
would not be worth for a company.

Exclusivity

Small company cannot run advertising frequently and exclusively. If

not the advertising run exclusively, advertising would not be worth
for a company.

Advertising can never be an expense; it must always be an investment.

There must be at least a 75% expectation that the advertising will
reach and produce more in sales than it will cost to place. If company
don't have that 75% expectation then company should not place the
advertising and a small firm cannot invest properly that advertising
could not be worth for the business.

Example: If company advertise refrigerator product in a winter time it

would not be worth for the company.

On the other hand, Traditional advertising may not be the best

promotional method for many firms. It will depend on:

• The purpose of the media based advertising. Many products are

not found of expected in traditional media (industrial products
for example of specialist products).

• Their target market (who may not view traditional marketing

media). They may for example spend most of their time online.

• They may not look in traditional media for their type of specialist
product (hobby/job related)

For this reason some types of advertising may not a worth for a
company.

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2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

How the company would research the advertising medium

The word “research” can make many Business owners shrink.
Because it sounds like such hard work. Let’s analyse the word itself.
“Search” means to go looking for something and “re” means “again”.
Put them together and it means to go looking for something again.
Research for the advertising medium is also similar to research of
other’s marketing aspect like:

MARKET RESEARCH + DOCUMENTARY ADVERTISING = MEDIA CONTENT

Company should know how to do market research, It often had that

business is going to do incredibly well because everyone will want to
buy their product or service. But it is matter of nervous when they say
that because it means that they don't really understand who their
buyers are going to be. Company would think that having a very wide
appeal to everyone would mean that company would sell more
products; it’s not often true that having a huge pool of potential
buyers and users is a very good thing for a start-up business.

Well, the biggest drawback for a start-up business in looking at an

enormous potential market is getting a compelling sales offer to
customers. It's time to talk about market research. How do company
find people who will want to buy product? What is the most effective
way to tell them about company’s product?

Step One: Ask the Potential Buyers

Usually, a product or service will appeal to a group or groups of

potential buyers. The most direct way to find out who wants to buy
product is to take it to the potential buyers. Company should let them
see it and use it if possible. Then ask them what they think about it.
What do they like? What don't they like? Do they think that they might
use it? Would they buy it with their own money? Company want to
listen and hear them, company don't want to tell them what to say. If
larger company, may wish to hire a market research team to run full
focus groups to find out how prospective clients view product or
service and where improvements can be made.

Marketing Research Activity for Step One

If company have an example of product, bring together a group of

people company think might be interested in it. Collect information
from them that company think is relevant to their purchase of the

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2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

product or service. For a consumer product, that may be: Age Gender
Marital Status Income

Now company ask them about the product, let them try it. How do
they feel about it? Is it something that they'll: Buy, consider buying or
have no interest in? Are there any features that they'd like to see in it?
What kind of price and warranty would they like? Where would they
buy it?

Step Two: Estimating Market Size

That means that potential market can be narrowed down to people

who are major. Company should estimate the targeted market size
according their product feature.

Marketing Research Activity for Step Two

Take the results of informal focus group (Step One Activity) and need
to see if company can classify the most likely buyers and users of
product or service. Then use the resources that company can find to
estimate the total size of that market. Again, if it's a consumer
product, a good place to find people sorted by age, gender, marital
status and income level.

Answer the following questions: Who is likely to buy product or

service? In which demographic groups (age, gender, income, marital
status, etc.) do potential customers fall? How many potential
customers is there that meet these descriptions?

Step Three: Take It Local

Now it's turn to get local. Although market may be spread across the
country, company need to determine which areas have a significant
amount of target customers. So company should go to the Census, or
Sales & Marketing Management's Survey of Buying Power, or trade
associations or other resources, to determine where your market is so
that company can focus on making promotional money count. How
many of target customers are there in each of the prospective sales
territories.

Step Four: Getting the Lay of the Land

In order to does a great job of selling, company need to find out how
things are currently done in industry? Once again, the trade
associations and trade magazines are a great place to pick up this
basic information. When evaluating whether to join a trade

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 www.needandfeed.org

2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

association, company need to determine what it's going to cost to join,

both in money and time. Then evaluate the benefits: Is it going to be a
benefit more than it will cost? Trade associations can be a valuable
source of information on pricing and distribution. They may also
organize trade fairs where company can contact potential distributors
and resellers for product. They can help company find manufacturer's
representatives and potential strategic partners and financial
investors. They are usually excellent sources of information about the
legal and other regulatory hurdles that company may encounter while
producing or distributing company’s product.

Marketing Research Activity for Step Four

Find industry's trade associations and trade magazines. In most

cases, it will be possible to get an initial complimentary copy of a
magazine before purchasing a subscription. In some cases, trade
magazines will be free to the subscriber who is active in the business.
Find the trade association organization that will work best for a
company. Company may need to be a little creative, particularly if
business is something that a great deal of people choose as hobbies, in
order to find which magazine takes the most businesslike approach
because it may not be labelled as a "trade magazine." company will be
able to tell, though, by determining if the ads in it are geared to people
in the business or just to hobbyists.

Step Five: Marketing Research Wrap-up

Finding this information will probably take company a number of

hours, especially once begin looking for industry practices. It is time
that will be well spent because it will let company target customers.
That means company won't spend the resources on people who are
highly unlikely to buy and company will find the way that comparable
products and services are sold and learn a lot about the finances in
the industry.

In order to determine what advertising medium to use, a

business needs to determine who their current customers are, who
they want as customers. How is this done? And then Research.

Who Are the Customers? What do my customers purchase? What is

the average sale? Do they purchase the product/service daily, weekly,
monthly? At what time of the year do they purchase the
product/service? Where do my customers geographically live? What is
the household income of the people who purchase product/service?
Does the household have children? How many cars and what type of

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2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

cars do they own? Do they own a home or do they rent? What is the
age of the purchaser? What is the sex of the purchaser? Are they a
repeat purchaser? How did they hear about the business?

All of these questions provide answers to help the business determine

which advertising medium to use, the message to communicate and
when to use the medium.

If company can learn all about customers: age, sex, employment

status, buying habits, etc., then company can advertise using the
mediums that effectively reach the target. Company can target the
customer, save money and increase the sales.

What type of research can help? It doesn't need to be complicated; a

simple customer survey often will be enough to steer in the right
direction. The key of course is to monitor the customer from time-to-
time to determine any changes in buying behaviour, household status,
etc. What you're trying to achieve determines the scope of the
questions and analysis.

There are many differences between advertising options in small towns

as opposed to large cities. Small town may not have a newspaper, TV
station or even radio. So options to choose the media of advertising
that will reach the target market may be limited in many respects
because it has to come from outside sources. In spite of these
restrictions here are some amazing facts to understand by the below
information:

• The major television networks

• How many magazines operated
• How many newsletters operated
• How many news paper operated
• How many radio stations
• How many cable systems
• Prime web sites and millions more being added each day.

With all of the above sources the average person could receives
advertising messages per day of certain frequency.

In order to determine the right media to purchase there are a few

questions company need to ask them self:

• What is the true message - What exactly do want customers to

know and how is advertising going to make them react? Is this
advertising designed to promote business name or is it designed

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 www.needandfeed.org

2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

to bring customers to place of business? Is the message

emotional or logical?
• market right product at right place
Who and where is the target market:
at right time. Company should understand the place where their
product is appropriate or not. If company advertise meat product
in a vegetarian area it would not be worth for the company.
• Cost per thousand - Advertising must always be an investment
never an expense. What should be concerned with is cost per
customer. How much does advertising cost to bring a target
market customer into place of business? Cost per thousand is
immaterial if most of the audience is not the target market. The
cost per customer would probably make this advertising too
costly for a satisfactory return on advertising investment. This is
the usual way of quoting comparative cost of newspapers or
magazines: how much it cost to reach one thousand customers
or household. It is expresses like this
Page rate x1000
Cost per thousand (CPM) =--------------------------------------------
=--------------------------------------------
Circulation

The whole process relating to advertising media planning is to choose

the type of media a company wants to use in order to achieve certain
marketing objectives. In this article we will take a look at the various
stages involved in this process. These include:-

1. Consumer market research

2. Media planning and buying: deciding which type of media the
company will use in order to reach its target audience and
3. How to go about buying placement with different media
4. Analyzing what has occurred after the purchase of the media
space.

From the above brief discussion a small or large company could be

understood how the company would research the advertising medium
before placing their advertisement.

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 www.needandfeed.org

2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

Conclusion is that the advertising is not worth spending time and money.

There are some advertising media were it would not be worth

advertising because the company might not have the money to
advertise in all the advertising mediums, like press and magazines
advertising because the range of cost is extremely wide, the smallest
black and white advertisement is some magazines can cost into the
thousands, that's why it is important to the target market right from
the outset, if company decide to go for a full colour advertisement,
company will see the budget increase by approximately 60%. So this
type of media might not be the way to go if company need to have a
colourful and exciting advertisement.

Television is as or even more expensive as press and magazines

advertisement, many television companies have a complex pricing
structure, divided into prime time days and hours, prime time
television is between 6pm and 9pm, an advert shown at 11pm is
obviously going to going to dramatically less than the same advert
shown at 7pm, but production cost will stay the same.
Radio costs vary tremendously, because time is rarely bought in units
but in 'campaigns'.

The usual duration is a 30 second spot it can vary incredibly,

depending on the time of the day chosen, as well as the radio station
selected, the breakfast session is the peak radio listening time.
In cinema company must consider particularly high costs of
production and expensive placement; this can vary on the cinema of
course. Rates are worked out on capacity and grading of cinema.
Cinema slides are both inexpensive and effective but many cinemas do
not accept them.

Outdoor advertising has a very low cost per exposure, so this type of
media is very cheap compared to all the other media's above.

Agency media departments rely heavily on computers for planning and

research, this means the computers can pin point the 'best' medium to
reach each market, and using the 'best' to mean most cost effective.
It takes a human brain to have that certain intuition for the right
medium. With computers however it is obvious that they save time in
producing budgets and identifying target markets.
To justify the amount company spend on advertising is more
important to smaller businesses, if company have a small local firm
making a specialised product or offer a special service, company may
find that the advertising has little effect on the business.

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 www.needandfeed.org

2008 ALI ZULFIKAR ZAHEDI BBA, PGDPM, MBA, DIP in AD (UK)

But other elements in the marketing mix may have more effect on turn
over like professional personal selling, sales promotion and
merchandising techniques, the use of stalls at exhibitions and fairs or
demonstrators in stores, press releases and articles in magazines, and
a video which salesmen or contacts can use.

When running a small business it’s easy to fall using uneconomical

media, or for using media uneconomically. Too wide and thin spread
may prove ineffective.

Having posters up and having an ear space in local paper may work
better for the small business. The best thing to do for an advertiser
with a small budget is to place advertisement, however small, in the
same place regularly.

So, it is easily clear that for some company like small or

beginning firm usually the advertising is not worth just a
spending time and money for them only.

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