Retail Observer

APRIL 2014 RETAILOBSERVER.COM 65 S o, what is the difference between marketing and advertis- ing? Is there even a difference at all? Let's start with the formal definitions of each: ADVERTISING: The act or practice of calling public attention to one's product, service, need, etc., especially by paid announcements in newspapers, magazines, radio, television or billboards, etc. MARKETING: The process of creating, communicating, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutual exchange of offerings that have value for customers, clients, partners and society at large. Now that we have defined the two terms it is easy to understand how the difference can be confusing and how people tend to think of them as one in the same. • Advertising is a single component of the marketing mix. Think of it as just one piece of the marketing pie. It is the part that involves getting the word out concerning your business, product or the services you offer. It involves the process of developing strategies such as ad placement, fre- quency, etc. Advertising is the largest expense of most marketing plans. • Marketing is a process that takes into consideration everything that your organization does to bring about an exchange between the company and the consumer. Market research, media planning, public relations, product pricing, distribution customer service and community involvement, and advertising are all part of the marketing mix. Peter Drucker once said: "Because of the nature of business, it has just two functions and only two; marketing and innovation. Marketing and innovation make money. Everything else is just cost." So, while we are on the subject of advertising, let's look at some of the dos and don'ts. • The mind of the consumer is a glorious thing. Every waking moment it is scanning the horizon for things of interest. The common is ignored, the unusual and intriguing are immediately recognized. The challenge in advertising is to create an ad that will cause the customer to willingly give you their attention by offering them a thought more interesting than the thought that currently occupies their mind. • Most ads are about the product or the company that makes it. Such ads yield disappointing results. The best ads are about the customer and how the product or service will change their life. • When a business owner develops an ad, many times their egos take over and the ad talks about themselves and how great their company is. This is advertising from an inside perspective and it is not very effective and has a very low return on the advertising investment. A better way is to think outside the box when developing an ad. Ask yourself, "What does the consumer want to hear?" Do they want to hear how polished your truck is? No, they want you to tell them how you will change their life. The word "YOU" is the most important word you can use in your Ad. "YOU" engages the imagination of the listener. The skillful use of the word "YOU" makes the listener a participant in your ad. • Many times during a down economy such as we are experiencing, business owners stop advertising due to cash flow problems. While it is true that we need to watch our outflows and tighten our belts, it is also true that business's that continue to advertise will reap the benefits as the economy begins to turn itself around. Your name will not have been lost to those who have continued to interrupt the consumers mind with interesting thoughts. • In advertising, it is vitally important that you know exactly who it is that buys what you are selling (market research, a component of marketing) and then talk only to those people. It is inevitable that no matter what medium you use for your advertisements, there are going to be some percentage of people who see it or hear it who will not be a prospect for what you are selling. Make sure your message is directed for and targeted to only those who are qualified prospects. When you try to speak to everyone, your message gets diluted to the point where it says nothing to anyone. Remember, you can't be all things to all people. Okay, so let's review and start to put your advertising to work for "You". • Don't stop your advertising during a down economy. You may have to reduce your budget but do not stop advertising. It is an investment for better times. • Think outside perspective and don't let your ego develop the ad. • Identify your customer and direct your advertising only to them. Don't try to speak to everyone. Remember: "Advertising may be described as the science of arresting the human intelligence long enough to get money from it." RO Ralph E. Wolff , MCAP, CSM Industry Relations, PSA Service News features alternating writers discussing topics of the service industry.

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