SUCCESSFUL ADVERTISING STRATEGIES - PART 1

Few subjects are as controversial and confusing as advertising. As an entrepreneur, you already may have strong opinions about the value of advertising. Like most new-business owners, however, you probably can't afford to hire a high-powered Madison Avenue firm to help.

Even if you are buying a franchise business, where advertising is usually handled for you, you need to know the answers to questions about the subject. And unlike other aspects of your business, you may have difficulty judging just how worthwhile your ad program is or could be in the future.

Why advertise?

In our highly competitive business world, the real question is whether you can afford not to advertise. Your prospective buyers are probably far too busy to seek you out on their own. Without advertising, buyers may not think of you when they need your product or service–or worse, may not even know you exist.

What's more, you can't exercise complete control over most business factors: Rent, labor, merchandise costs, and other business realities to some extent may be fixed. And you can't do much about your competitors' activities. But you can be completely in charge of your advertising and promotions.

For the owner of a start-up business, good advertising can do the following:

Launch a new product or service.
Demonstrate a new product or service.
Suggest new uses for a product or service that others have established.
Describe product or service benefits to new customers.
Announce a change or improvement in an existing product or service.
Inform about product or service availability.
Create awareness of a product or service with a new target audience.
Build the image of your business.
Increase the desire for and consumption of a product or service.
Increase the frequency of purchase, use, or both.
Inform existing and potential customers about a sales event or special promotion.
Encourage customers to write or call for information, or to visit a place of business.
Inform about service, warranties, or guarantees.
Persuade people to support or contribute to a cause.

What advertising can't do

Good advertising won't sell an inherently bad product, service, or business. If your business is poorly operated–for example, if delivery is slow, you lack quality control, or you convey a feeling of incompetence–advertising might lure people initially, but they won't return to you.

In fact, many experts believe nothing kills a bad product or service like good advertising. Once the word is out that your product or service is inferior, prospective customers will stay away. Likewise, you'll be wasting ad dollars if you advertise good products but don't back them up with decent service, or if you advertise good services and don't stand behind your claims.

Nor will advertising shore up a basically inadequate marketing program. It won't sell a product or service that no one wants or needs–or for which wants or needs can't be created.

What should you advertise?

Items or services in current demand. As your ads run, measure how featured items pull. Pick the winners and repeat those ads until their momentum wanes.
Newsworthy items or services. These can be unique, better than competitors' offerings, staples at an attractive price, or recognizable brand names.
Items stocked in depth. Advertising gives customers a cumulative impression of your business. If your focus is upscale, orient ads that way. If you deal heavily in promotional, low-priced items or services, advertise those.
Good values. Ideally, advertising should represent your best values. That doesn't necessarily mean your most inexpensive items. Instead, advertise those offering best value for the money.
Coordinated price lines. If you're advertising related items or services, make sure prices parallel one another. For example, someone who buys a $50 dress won't want to spend $200 for a pair of shoes.

If your business will be retailing, you'll want to be aware of merchandise whose seasonal curve drops from month to month. Such merchandise will need to be moved immediately.

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