Cost-Effective Advertising Strategies
Cost-Effective Advertising Strategies
a) We will calculate the 'cost per useful contact' of each of them and choose the one that
present lower cost.
The audience is the quantitative measure of the number of individuals who receive information from a medium.
or advertising support.
The insertion price is the cost of advertising an item or service in a particular medium.
The cost per useful contact represents the economic amount that the advertiser incurs to reach a
individual belonging to your target audience.
To calculate the 'cost per useful contact' we must divide the insertion price (Pi) by the audiences.
tools (Ai), corresponding to each support.
Supports (Yes) Audiencias útiles (Ai) Precio de inserción Cost per contact
(Pi) useful (€)
S1 150,000 9135€ 0.0609
S2 350,000 9015€ 0.0257
S3 125,000 5409€ 0.0432
S4 270,000 8444€ 0.0311
S5 400,000 9616€ 0.0240
S6 200,000 9015€ 0.0450
b) We will make a sorted list of supports arranged from lowest to highest cost:
Supports (Yes) Cost per contact
useful (€)
S5 0.0240
S2 0.0257
S4 0.0311
S3 0.0432
S6 0.0450
S1 0.0609
As we observe in the table, the support S5 is the most interesting as it represents the least value.
and therefore it is for which Julia must decide. The supports S5 and S2 record very similar costs,
coinciding that both are aimed at a larger number of recipients, 400,000 and 350,000
respectively, which lowers the operation cost. In contrast, support S1 is the least competitive. It is
It is evident that there is a direct relationship between the final price and the number of receivers, although the price
insertion is also a key variable, as it will have a clear impact on the final price. A
A significant example is support S3, which despite having a smaller number of recipients than all.
the others, is by no means the least profitable, as it ranks fourth in the classification
anterior.
ACTIVITY 2
Maria is interested in carrying out her first TV campaign. She has consulted with a
advertising agency and it has recommended that based on the type of company and
the services it offers it is advisable to carry out the following campaign:
Before proceeding with the exercise, we will learn about some points related to it:
Unspotes is one of the most effective tools to promote our product or service.
stimulating the desire of the audience it is aimed at. They are usually short-lived since they are quite
expensive and are reproduced in mass media such as radio and television.
The target audience is the group of people to whom a campaign is directed or the buyers to whom it is aimed.
It is intended to seduce. This concept is also known as target, target market, or market segment.
Coverage is the ability of a medium to manifest itself geographically with its message.
Television and radio, being the most important, can have both regional and national coverage.
The impact is the total number of contacts that a message achieves with a target audience.
Frequency is the number of times a person is exposed to the same advertising message.
GRPs (Gross Rating Points) is the total number of impacts produced by a campaign per 100 people.
including all supports and relating coverage to frequency. It is always expressed in
percentage.
Impactos= 74.400 x 8
Impactos=595.200
First, we must calculate what the actual audience is, since the campaign has a coverage of
62% of the target audience. Therefore:
Audience = PO x coverage
CPC=2688.1
ACTIVITY 3
Our company, T&L, S.A., has hired the services of a negotiation expert
in the sale of services. He has gathered all the sellers and after the presentation
has asked them:
1. Reason what type of seller you consider most common based on their attitude.
The sales process encompasses all the activities that must be carried out to promote the
purchase of a product or service. The sales cycle can be divided into four phases:
- Attention: The seller is trying to capture the attention of their potential clients.
- Interest: Once the attention is captured, the seller arouses the customer's interest by showing the
advantages of the product and all the benefits that its acquisition can provide.
- Desire: If the customer's interest is evident, the previous phase will be reinforced by indicating all the
points that differentiate us from the competition, enticing the buyer to want
only our product.
- Action: the buyer is already convinced of what they want and the sale takes place.
All these phases can have different characteristics, and will mainly depend on both the...
the behavior and attitude shown by both the seller and the buyer.
If we consider their character and the way they interact with the customer, we can classify them into:
- Serious: they convey security, always with a calm and assertive attitude. The client feels
sure and convinced of everything stated by the seller.
- Friendly: easily empathizes, makes the sales process enjoyable, and the buyer is captivated by
the exhibition.
- Flexible: provides concrete solutions to all problems, resolves doubts, and analyzes complaints.
to offer the best possible product. It has a great power of persuasion.
- Charismatic: radiates enthusiasm, desire, and passion, creating an atmosphere of trust with the client and
it even makes decisions on their behalf.
We can also differentiate them according to the attitude they show during the sales process.
regardless of the type of customer:
- Impassive: focuses on taking note of orders, providing low guidance towards sales.
It does not usually persuade the customer with new products, promotions, discounts, etc.
- Aggressive or mercenary: just the opposite of the former, as it has a high orientation towards the
sales. Moreover, it does not excessively take care of already loyal customers, and directs all its efforts towards
to achieve new ones to reach the highest possible sales index.
- Condescending: high orientation towards customers and low towards sales. It tends to be little
assertive, that is to say, not knowing how to say no, which can create conflicts with their own company
for not being able to fulfill the promises made with the client. Additionally, their lack of drive to
Closing sales causes loss of opportunities.
- Consultant: shows great dedication to both the client and the sale. Meets their objectives.
commercials creating very favorable ties with buyers resolving all their
problems and concerns.
It is evident that both the impassive sellers and the condescending ones are the ones who least
benefits will be generated in their respective companies. For this reason, they are the least common.
current events, and due to the great competitiveness of the markets, the sellers who are the best
The results obtained are from the consultants, especially if the purchases are repetitive and the markets
they have reached their maturity, aggressive sellers can also achieve good results and,
they are possibly the most common, although the best results are obtained in markets of
products with a very long duration and especially monopolistic.
2. Indicate the actions or strategies to be carried out regarding the following types
of buyer: economic, competitive, and indecisive.
Each buyer has their own characteristics, and for this reason, sellers must treat them
in a different way to provide them with the best possible service and, at the same time, meet their expectations of
purchase. Next, we will learn about some aspects related to the seller's predisposition.
before the buyer, using the most advisable techniques, depending on the characteristics
specifics of the client in question.
The economical buyer is more interested in getting a discount than in any other aspect.
as important as quality, service, etc... For this reason, the seller must:
- Show him what it will cost him not to buy the product.
- Apply attractive discounts.
- Compare their prices with those of the competition, especially when there is a significant difference.
between them.
- Provide negative examples related to competing companies.
- Reward their loyalty with gifts and timely details.
The indecisive buyer finds it difficult to make decisions, which can make the seller nervous.
Although once they lose their doubts, they are quite easy to deal with. They tend to be calm, introverted, and a little
talkative and very observant. The most advisable sales techniques for this type of clients are:
- Speak slowly.
- Provide the information they need.
- Ensure commitment clearly and simply.
- Be sincere.
- Explain the ideas logically and orderly.
- Gain their trust.
- Focus on the person.
The competitive buyer is a natural negotiator, and will aim to acquire the product for less money.
They tend to be confident people, do not express initial interest in the purchase, and once they show it, they will negotiate.
the final price always looking out for their interests. The best way to serve buyers
competitive are:
ACTIVITY 4
Our company, with the new image of T&L, S.A. is still developing its share
in the market, and notices the emergence of a new competitor. The company is unsure between
two immediate actions: one, defend against the new brand by making it more addictive
to the clientele; the other, to try to attract new customers.
In both cases, what will be the most appropriate promotional techniques?
What would you recommend to him/her?
When a new competitor appears in the market, it is essential to carry out a series of
actions that counteract all the factors that can negatively influence development
our company, especially if the product in question is not yet fully integrated and loyalized
in the market. Next, we will learn about the most advisable mechanisms to continue being
competitive and, at the same time, to attract new customers.
- Maintain special relationships with each client, and never confuse the client's interest with
the interest of the sale, since long-term relationships are what will bring us the most
profitability.
- A motivated work team will directly influence the treatment they will give to the customers.
To achieve this, we will make them feel important and, at the same time, we will apply juicy incentives to
that their involvement be total and they convey their harmony to the clients.
- To provide personalized attention, adopting the most appropriate approach for each client.
and make them part of this great project.
- Implement loyalty plans, which will generate loyalty towards the brand. To do this, it
will implement a program for accumulating points, which will entail a great
satisfaction among the most loyal customers.
- Surprising our customers with gifts or details that they will appreciate. For this,
very advisable to use programs like CRM.
- Apply special prices to all customers who demonstrate their loyalty. Discount cards
personalized or exclusive certificates can be very attractive aspects for our
buyers.
- Learning from mistakes, as they can be a great opportunity to show our
commitment.
- Accept suggestions and concerns, as these actions show that the customer matters to us.
and that our main goal is your satisfaction.
- Quality post-sale service, capable of handling issues and carrying out actions.
advisable so that they do not occur again.
- Improve expectations, without promising what cannot be fulfilled and offering more than what
The client is waiting.
- Bringing our new products and promotions closer to the consumer through calls, brochures,
emails, etc…
The acquisition of new customers is an equally or even more important point than the previous one, and for that we will take
to carry out the following actions: