CPA Info # 111 February 2005

Advertising 101
Megan L. Bruch
Marketing Specialist
Center for Profitable Agriculture

Introduction Advertising Media

While advertising may not be a typical Advertising can be accomplished through

marketing strategy for traditional farming many types of media including newspapers,
operations, farmers and agri-entrepreneurs radio, magazines, television, direct mail,
involved in direct-marketing, value-added or point of sale, outdoor (signage and
agritourism enterprises should include billboards) and the Internet. The media type
advertising in their marketing plan. These used by the target audience to learn about
entrepreneurs need to become familiar with products and services and to make
advertising fundamentals and concepts. purchasing decisions need to be consistent
with the advertising media chosen. It is also
What is advertising? important to consider the advantages and
disadvantages of each media type. The types
While the term “advertising” is often of media are compared in Table 1.
thought to be synonymous with the term
“marketing,” advertising is only one option Once the type of media is chosen, the
for promotional strategies within a complete specific media outlet, such as the specific
marketing plan. A marketing plan will likely newspaper or radio station, must be selected.
include a combination of promotional Consider the geographic reach of the
strategies, including advertising, publicity, publication or station and the demographics
sampling, word-of-mouth referrals and of the readers or listeners to determine if
discounting. they match the target audience of the
product or service being advertised.
Advertising is an announcement made to the
public to call attention to the desirable The placement or timing of the
characteristics of a product or service. It advertisement is also an important factor to
requires investments of both time and determine. When is the target audience
finances. Done well, investments in likely to tune in to a radio or television
advertising may generate sales. Done station? Which section of the newspaper or
poorly, consumers may develop a negative magazine is the target audience likely to
impression of the business. read?

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 Table 1: Advantages and Disadvantages Associated with Specific Advertising Mediai
Media Advantages Disadvantages
Newspaper Potentially large coverage area Inconsistent reproduction
Low cost relative to other media Typically one-day exposure
Immediate/timely (daily or weekly) Clutter (can be lost among other ads)
Access to many socioeconomic groups May be limited to text or black-and-white
Target specific audience via specialty section Lack of movement and sound
Can use color
Flexibility in ad size and cost
Visibility of the product (i.e., picture)
Use of coupons to measure effectiveness
Short lead time
Radio Specific audience (demographics) Time limitations restrict message
Immediate/timely/multiple exposures Need for repetition
Possible high entertainment value of ad Clutter (can be lost among others)
Celebrity endorsement or pitch Ad recall is low
Time and content flexibility “Station surfing” during commercial breaks
Use of a human voice (celebrity) Short ad exposure
Sound reinforcement
Magazines Potentially large coverage area Clutter (can be lost among others)
Can target a specific audience Cost associated with repeat exposure
Can use color Lack of movement and sound
Flexibility in size and cost Not immediate; publication may be weekly,
Visibility of the product (i.e., picture) monthly or less frequent
Use of coupons to measure effectiveness
Large repeat and secondary exposure
Television Large coverage area Can be costly to produce and air
Can target a specific audience Time limitations restrict message
Uses both visual and auditory stimulants Need for repetition/short ad recall
Large repeat exposure Clutter (can be lost among other ads)
Inverse relationship between hours watched and
audience income
Direct Mail Can target a specific audience Expensive ($1 to $2 per piece)
More opportunity to educate on product/service Difficult to obtain “clean” mailing list
benefits May be perceived as junk mail/discarded
unopened
Point of Can influence impulse purchasing Can be expensive
Sale Helps product stand out among competition Clutter (ad can be lost among other point-of-sale
Customer has opportunity for direct response at material)
time of ad presentation (i.e., purchase)
Outdoor Large audience exposure depending on Limited message length
(signage placement Initial production and preparation costs
and Use of color Ideal sites are difficult to access
billboards) Can provide information and directions
Continuous exposure
Internet Information available 24/7 Maintenance necessary
Customers access at their convenience Not effective as stand-alone strategy
Relatively cost effective Difficult to gauge impact
Can target types of viewers Costs of development and maintenance can vary
Messages can be timely
Ads can be interactive
Ability to use coupons to measure effectiveness

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Developing Advertisements Preparations for advertising should begin at
least two months prior to the time when the
Advertisements should be developed to advertisements will be run. Preparations
reach the target audience and designed include contacting media for costs and
around the business’ desired image. scheduling information. If development of
Advertising can only be effective if the the advertisements will be outsourced, more
message reaches the business’ specific target time will be needed. A professional
audience. advertising agency may be able to assist in
the development of effective advertisements
Advertisements and all other promotional and in determining advertisement
materials should portray a consistent image placement. If possible, advertisements
for the business enterprise. The portrayal of should be developed by the same source to
a consistent image through all of your maintain consistency.
marketing efforts will help to build customer
recognition of your business or product and When developing advertisements, consider
decrease the potential for customer the six point advertising strategy. This
confusion. strategy will assist in creating a focused and
comprehensive advertisement that will
The development and use of an appealing effectively communicate needed information
business name and an attractive logo will to potential customers. Be sure to carefully
help to build awareness and recognition of check the advertisements for grammar and
the enterprise and to create consistency in spelling errors.
marketing efforts. A graphic artist could
assist in the development of a logo. The
business name and logo may be trademarked
so that it cannot be used by other businesses.

Six Point Advertising Strategyii

1. Primary Purpose
What is the primary purpose of our advertisement?
2. Primary Benefit
What unique benefit can we offer customers? What primary customer value or need
can my enterprise meet?
3. Secondary Benefit
What other key benefits will customers receive from our products or services?
4. Target Audience
At whom (what target market) are we aiming this advertisement?
5. Audience Reaction
What response do we want from our audience (come to the operation, visit a Web
site, call an information line)?
6. Company Personality
What image do we want to convey in our advertisement?

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Purchasing Advertisingiii
The effectiveness of advertisements can be
Like many products and services, evaluated using several methods including
advertising is often a “get what you pay for”
business. Although the rates for a four-line y Tracking and evaluating total sales,
classified advertisement in the newspaper or average sales per customer or customer
a radio spot running at 3:00 am may seem visits before, during and after an
like a bargain up front, they may not be an advertisement or series of
effective method to reach the specific target advertisements is run
audience of a particular product or service. y Recording the number of coupons
redeemed (if a coupon was included in
Remember that media agencies are the advertisement)
businesses too. Selling advertising space is y Asking new customers how they heard
how these businesses earn revenue. Media of your business
agencies and advertisers support each other
in their business endeavors and need each
other. Summary

Advertising is an investment necessary for

Evaluating the Effectiveness of many value-added agriculture businesses.
Advertisements With proper choices of media types,
placement and design, advertising can be an
During and following an advertisement effective component of an enterprise’s
campaign, it is important to evaluate the overall marketing plan.
effectiveness of the advertisements in
meeting the established purpose. This
evaluation will help to determine if the The author would like to acknowledge the
correct media type, specific media outlet or assistance of Rob Holland and Amanda
advertisement placement was chosen or if Ziehl, Extension Specialists with the Center
the customers received the desired message. for Profitable Agriculture, for their review
The information learned from the evaluation of this publication.
can be used to develop future advertising
campaigns or make adjustments to the
current campaign.

i
Adapted from Dalton, Anne, Rob Holland, Shasta Hubbs and Kent Wolfe. Marketing for the Value-Added
Agricultural Enterprise. The University of Tennessee Agricultural Development Center. May 2002.
ii
Adapted from: Marchall, Maria I. The Marketing Mix: Putting the Pieces Together. Purdue University. Available
online < http://www.foodsci.purdue.edu/outreach/vap/materials/marketing.pdf> Accessed February 15, 2005.
iii
Adapted from Clark, Patricia. Communications Plans for Small Enterprises.