Product Advertising is meant to influence a perception of your product or service. It makes us want to own a product. Product advertising is a long-term investment.
Promotional Advertising offers an inducement that prompts an immediate purchase:
1. sale price,
2. a discount coupon
3. a free gift
or some other incentive.
Promotional advertising can be effective in the short term. If over used it may have the effect of cheapening your product. Think of those stores that are always holding sales. What is your impression of their product?
Each has it’s place in your advertising plan.
Here is a list of expenses that should be considered as advertising expenses:
- All paid media advertising - Magazine, TV, radio, newspaper
- Production expense - Art, photography, ad preparation charges, and miscellaneous expenses related to preparing the paid advertising.
- Collateral material - Brochures, mailing pieces, catalogs, etc..
- Internet expense - Website design, maintenance and hosting expense are included to the extent that they are incurred for marketing communication. Add in Internet marketing expense (banner ads, etc.) and e-mail marketing, too.The purpose of an online presence is to bring customers to your website where they can learn more about your products or purchase them.
- E-commerce presents further issues. An e-store replaces or supplements the company’s conventional “bricks and mortar” outlets. This expense should be associated with rent and utilities.
- Public relations – Those gifts you give to charities and fund raisers for drawings, the services you provide you customers at less than cost in order to promote community relations.
- Craft show display and booth expense - A well-designed exhibit enhances your product image.
