Advertising is one of the most important tools a retailer has. A sound understanding of
its use and elements will result in more effective advertising. For some businesses
seasonal ads are the most effective. For others, ongoing print ads for special sales work
best. Still others will utilize radio to capture the attention of the market for that
limited time only sale. And now more than ever, companies are advertising with their own
Internet web site or "renting" space on commercial sites that offer storefronts
for their product promotion and ordering.
Whatever form advertising takes, the financial commitment to advertise is a very basic
business decision. Advertising expenses should be planned with a return on investment in
mind. For every advertising dollar, the business must recoup a percentage as part of every
sale. When you set discounted promotional pricing that must be considered as well. Does a
discounted promotional price and the advertising expense mean a loss on a particular sale
item? Is that a calculated loss to bring business in the door in anticipation of a
multi-item sale? Does that technique work?
Advertising is a fundamental business question. The answer is yes— if you are a
retailer you should advertise. The question now becomes how to budget and implement an
effective advertising program. Plan your expected highs and lows for foot traffic and
sales volume. Develop a one-year advertising plan. In your own mind, you need to know when
to emphasis advertising in your marketing mix. You can’t advertise everywhere all the
time. Be selective before you ever spend that first dollar. Think first and spend later.
As part of your advertising plan, budget for the creative concept, layout and
production of an advertising theme. If at all possible, hire someone specializing in
advertising to develop a campaign for you. This does not have to be expensive. You can
choose between advertising agencies, graphic design firms and freelance marketing pros.
This expertise can help provide you with the savvy copy that attracts customers interest,
attention and action. If you can’t afford to invest in a campaign theme. Carefully
plan your messages and goals for the ads and get production support from the television
station, radio station, newspaper or magazine running the ads.
An advertisement should generate a buying response. The potential consumer should
become interested in the product and understand the benefit of the product or service. How
will your product or service make life easier or more enjoyable? The creative aspect of a
clever and intriguing ad should help elicit interest. Invest wisely. A poorly conceived or
executed advertising campaign can harm your business. Advertising is an investment and the
time and money invested should add value to the bottom line. You want foot traffic and you
want increased sales volume—advertising can help make it happen.
To review your advertising plans, contact a business counselor. The SCORE Association
(Service Corps of Retired Executives) offers free and confidential business counseling and
mentoring as a community service. More than 12,000 working and retired business owners,
executives and managers donate their time to advise entrepreneurs. SCORE has assisted more
than 3.5 million Americans, since 1964. Call 1 (800) 634-0245, for a referral to the SCORE
chapter nearest you.
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