Advertising 101

Advertising has truly become a part of all of our lives as consumers, as business owners, as parents, as concerned citizens. We simply cannot escape from its presence no matter how hard we try. Considering how pervasive advertising is in our daily lives, it's no surprise that people have such extreme views about it.

Many home-based business owners want to steer clear of it altogether. They might dabble in marketing or use some sales strategies, but most don't want much to do with actual advertising. Unfortunately, this is a mistake on their part and it usually comes as a result of not understanding the purpose of advertising.

So what is the true reason for advertising? According to Michael Corbett, author of The 33 Ruthless Rules of Local Advertising, you should advertise "to create an equity position in a target market and to ...motivate a sufficient number of consumers..." In simple language, you advertise so that people will know you exist and will keep you in business. What's so evil about that?

Absolutely nothing! Here are a few very good reasons why you need to start advertising today:

1. Potential customers are constantly shopping

The truth is that most people are always looking for ways to spend their money. They don't always realize it, but they are. That's why banner ads, commercials, and billboards work even though they are being viewed miles away from the business. If you don't advertise, you're missing out on a chance to tap into that human desire.

2. Potential customers may forget you

While the desire for shopping may be permanent, a consumer's memory is not. Even if they have had a tremendous experience with your business, even if they've recommended you to their friends and family, even if you were the only company they ever thought of doing business with, after awhile they would forget you or forget how to get in touch with you.

3. Potential customers don't always make buying decisions immediately

Another tried and true rule about consumers is that they don't always decide to buy as soon as they see an ad. For example, if you see a commercial for a fast food restaurant right after Thanksgiving dinner, you're not going to run right out to the drive thru after seeing the commercial. However, the next time you're hungry, you might remember that commercial and choose to stop in then. So the idea of advertising is to plant an image in consumers minds so that when they need your product, your business comes to their minds.

4. Customers rely on name recognition to guide their consumer choices most of the time

Why do people still buy name brand products over generics even when the price difference is significant and the quality of the products is equitable? Because of name recognition! Consumers respond to names that are familiar whether they are buying a new car, a computer, a lawyer, or ketchup. If you want to succeed, you need to be sure that your targeted audience will know your name when they hear it and will think of your name when they need your product. Advertising can make that happen.

On the other hand, many business owners see advertising as a quick fix. If business gets a little slow, a newspaper ad or a direct mail piece will fix everything in a jiffy. That's not the case either. Let me give you a few reasons why.

1. Advertising works on a six month cycle

Many times when people think their advertising hasn't worked, it's because they haven't waited long enough to see results. Generally, the advertising you do today won't fully pay off for another three to six months. For that reason, if you want to ensure a consistent stream of customers, you need to continue to advertise all the time. Advertising only when business is slow simply won't save your business because by the time you start seeing results, it may be too late.

2. Your problems are related to another step in the process

Another reason advertising can't cure everything is that simply attracting customers is only one step of the process. Once you lure them in, you need to have the content or the customer service to convince potential buyers to take that next step. If any step in the process is lacking, then no amount of advertising is going to help.

3. You are neglecting your current customers and their potential

Don't make the mistake of focusing all of your efforts on finding new customers when your best source of additional revenue is being neglected. Past customers are more likely to become repeat customers, plus they don't require the additional expenses of marketing and advertising.

As you can see, the truth about advertising is that it can be a powerful force for your success if handled correctly. Too many people see it as an evil force or as a business miracle when the reality is somewhere in between.

Vishal P. Rao is the owner of: http://www.work-at-home-forum.com/ An online community of people who work at home.

In The News:


Earthtimes (press release)

Online advertising up 11 percent from last year
CNET News, CA - 9 hours ago
Internet advertising revenues for the third quarter were nearly $5.9 billion, representing an 11-percent increase over the same period last year, ...
Internet Advertising Revenues in Q3 '08 at Nearly $5.9 Billion MarketWatch
Online Advertising Nearly $5.9 Billion in the Third Quarter Seeking Alpha
Growth In Online Advertising Revenue Slows InformationWeek
PC World - Forbesall 215 news articles

Current World News

TV Ads Contribute to Childhood Obesity, Economists Say
New York Times, United States - 9 hours ago
The researchers used several statistical models to link obesity rates to the amount of time spent viewing fast food advertising, finding that viewing more ...
Researchers: Ban on Fast Food TV Advertising Would Reverse ... MarketWatch
Study: Banning fast-food TV ads could dent obesity The Associated Press
Fast-food ad ban could cut child obesity: US study Reuters
Los Angeles Times - Telegraph.co.ukall 461 news articles

Sport Chalet Teams With TM Advertising
MarketWatch - 14 hours ago
one of the nation's premier specialty sporting retailers, today announced that it has hired TM Advertising as its first advertising agency of record. ...
Precor Names New England, New York Metro Home Fitness Dealer MarketWatch
Precor Selects Sport Chalet for California, Arizona and Nevada MarketWatch
all 28 news articles

WideOrbit Welcomes Angela Bandlow as Chief Marketing Officer
MarketWatch - 7 hours ago
WideOrbit drives the business of selling advertising - maximizing advertising profitability and sales efficiencies. Media companies around the globe rely ...

Advertising Agency Search Consultant, Hank Blank, Speaks to AAF ...
MarketWatch - 12 hours ago
"I recently had the honor of attending several of Hank's presentations when he spoke at the American Advertising Federation 4th District quarterly ...

Journal Communications Reports October Revenue for Its Publishing ...
MarketWatch - 18 hours ago
For the tenth period 2008, advertising revenues of $32.48 million decreased 3.8% compared to $33.75 million for the 2007 tenth period. ...
Journal revenue down in October The Business Journal of Milwaukee Bizjournals.com
Mixed month for Journal Communications Radio Business Report
Journal Communications October revenue slips Forbes
Streaming Magazineall 15 news articles

Digital Signage Leaders Give Digital Out of Home (DOOH) Industry ...
MarketWatch - 5 hours ago
"We expect that gross advertising spending in Q1 for digital out of home networks will be light, but we have already seen significant bookings for Q2 and ...

A Global Strategic Business Report on the Advertising Industry ...
MarketWatch - Nov 19, 2008
The global outlook series on the Advertising Industry provides a collection of statistical anecdotes, market briefs, and concise summaries of research ...

Telegraph.co.uk

Compromise On Search Deal With Microsoft Could Lift Yahoo
CNNMoney.com - 12 hours ago
Microsoft also wants to build a unified search and display advertising platform, a goal that will be hard to achieve without Yahoo's search business. ...
Yahoo! Is the One for You, Microsoft Motley Fool
AP Technology NewsBrief at 7:33 pm EST TMCnet
Analyst upgrades Yahoo, calling stock cheap MarketWatch
Redmond Channel Partner - DailyTechall 113 news articles

Advertising pioneer George Beach to be honored
Philadelphia Inquirer, PA - 8 hours ago
By Jane M. Von Bergen The interview was winding down, and longtime advertising executive George Beach had begun to relax a little. ...
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