4. The problem of newspaper advertising:
Very expensive: a full page ad in a major metropolitan newspaper can cost $30,000. The expense doesn’t allow small businesses to run ads more than one or two times a week.
Only reaches 50% of a market:
Example:
Print run could be 100,000
Circulation could be 90,000 …Paid and free circulation
Readership 60,000 and special sections such as sports could be12,000.
You pay for the entire 90,000 circulation when you only want to reach your customers perhaps 10,000 in a five mile radius of your store or business.
People under age 30 don’t read newspapers; get news and info from electronics like Internet, TV, and cell phones.
If you want to reach customers age 30 and under, the newspaper is not the right choice.
5. The problem of television advertising:
Very expensive, it could cost anywhere from $50-$1,000 per spot depending on the size of the audience.
Must pay for spot production, additional costs.
A business needs high repetition or frequency to be effective and high cost per spot prevents small businesses from getting adequate frequency.
6. The problem with radio advertising:
Must buy enough repetition to get results.
Example: the real estate company and businesses that buy only one spots.
Large number of competing radio stations in most markets. It’s not unusual to have 40 or more radio stations in the same market. This saturates the market.
Radio is not visual. It does use the “theater of the mind� to create images.
You hear it for 30 seconds and then it is gone. Print advertising can be referred to often.
Fractured market: too many stations in most markets, can’t advertise on all of them. In the Salt Lake City Metro area the top station has a 9 share, all the rest have less.
Various radio station formats:
Country
Hot AC
 Oldies
Classic Rock
 Top- 40
Rock
Religious
Alternative
Spanish
Hip Hop
Adult Contemporary
Smooth Jazz
Variety
Adult Album Alternative
Talk
News/Talk
Sports
 Nostalgia
 Christian Contemprary
 Gospel
7. Direct Mail: the best option
Advantages:
• Can target specific demographic or physiographic targets: Can target by geographical area, by age, by income, sex, education, and more.
• Mail lists can be rented or purchased from a list broker, or a mailing house.
• No wasted circulation: Since you target a specific mailing group, you don’t pay for extra circulation or readers.
• Inexpensive: The business person can send either larger or smaller amounts of mailers out at a time.
Disadvantages:
Cost per customer reached is high, but you only pay for the customers you reach.
Mailers are limited in the information presented because of size of mailer.
8. How to use direct mail:
Several techniques:
Letters:
Use envelopes and paper approprate for the target customer
Example: mailer to doctors use very good paper and good printing, manufacturer you can use cheaper paper.
Postcards:
Use card stock 80# cover stock. Either glossy on one side, or both sides, or none glossy. Print either one, two or four color printing. They are cheap.
Marriage mailers:
Like Val Pak that includes many flyers in one mailing.
Where do you get mailing lists?
Rent mailing lists: list brokers, mail houses, look in the yellow pages  under advertising, direct mail, or under the heading of mailing.
Mail them yourself or use a mailing house. A mailing house will address them stuff them, stamp them, and mail them. You pay for each thing they do. Print them separately from the mail house unless their price is better.
Response rate: Usually from ½% to 2% response. With a special list you can get higher response. Example: memberships
How to get them opened or read:
A I D A formula
Mailer design: get their attention with a dominate headline or photo
Offers: make the offer strong, not 10% off. Use 2 for one or buy one get second free. Make the incentive to respond strong.
Summary:
Why direct mail is best for small businesses
How to identify your target customer
What are demographics?
What are psychographics?
How different media relates to target customers
The problem with newspaper advertising
The problem with TV advertising
The problem with radio advertising
Why the solution is direct mail
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