1. What?
   1. commercial promotion of ...
      1. Goods & services
      2. companies & ideas
2. Why?
   1. Create consumer wants
      1. Used on both existing & new products
      2. Used as long as Ad cost covered by increase in sales
         1. repeat purchases = steady stream of income
      3. effective: interest -> demand (shift in D curve)
   2. Create brand image
      1. consumers' perceptions of a product
      2. Ad to differentiate product from others
      3. leads to customer loyalty
         1. protect firm's market share
         2. willing to pay premium price
         3. continue to buy even Px decreases
         4. D is P inelastic
      4. consumers also 'buy' into values assoc with products
   3. Deter new competition
      1. large Ad spending makes new competing firms hard to be visible
   4. Provide information
      1. factual info abt G&S
      2. mostly used by Gov't bodies e.g. laws, rights, schemes
   5. Ultimate goal = max profit
3. How?
   1. Step1: Market segmentation
      1. Analyse consumers by characteristics
         1. e.g. banks (high,low net worth), lifestyle, genders
   2. Step2: Targeting the right audience
      1. target consumers = diff groups identified most likely to buy
      2. Design ad to incl appealing message & image
   3. Step3: Select type
      1. Informative Ad
         1. eg timetables, dates
      2. Persuasive Ad
         1. encourage to buy using image, logo, catchphrases, music
   4. mostly used together
4. Intervention
   1. Standards & codes set by gov't bodies to safeguard consumers
   2. e.g. Advertising Standards Authority (ASA) [UK]
   3. guidelines
      1. legal, decent, honest, truthful
      2. responsible & promote safety
      3. in line with fair competition
5. Media
   1. Newspapers
      1. +Wide coverage
      2. +Can refer back
      3. +Detailed info
      4. -small ads get lost
      5. -easily ignored
      6. -less appealing
   2. Magazines
      1. +linkable to articles
      2. +better target for specialist mag
      3. -time lag
      4. -competitors' ads alongside
   3. Radio
      1. +can use sound/music
      2. +cheap
      3. +better audience targeting
      4. -non-visual
      5. -short-lived msg
      6. -easily ignored
   4. Cinema
      1. +can use images, colour, sounds
      2. +target accordingly
      3. -limited audience
      4. -audience not consistent
   5. The Internet
      1. +easy & cheap to set up
      2. +both visual & audio
      3. +interactive
      4. +world-wide & 24-7
      5. -depend on access to the net
      6. -risk of credit card fraud (Phishing)
   6. Posters
      1. +Cheap
      2. +can be placed near 'point of sale'
      3. -limited info can be provided
      4. -susceptible to vandalism & adverse weather