PROMOTIONAL OPPORTUNITIES
Ready to Promote Your New Product? Think About Maximizing Your Free Publicity.
By James F. Riordan
PART THREE
One of the most effective ways to mount an advertising campaign which will get your product name and company name in front of your target audience, without having to pay the full cost of the advertisement, is to offer your retail sales outlets a CO-OP ADVERTISING ALLOWANCE.
In a typical co-op advertising agreement, you, the manufacturer, agree to allow your retail outlet up to 50 percent of the cost of a given ad, with the total budget not to exceed two percent to five percent of monthly or annual purchases that the retailer buys from you. You can pay the allowance by either allowing the store a credit on their order (which is what I usually opt for) or by giving them a cash payment.
The retailer places the ad in the local newspaper, magazine, or tabloid, or places an ad on a local radio or television station. Usually, you'll want to stipulate that the name of your product and the name of your company be mentioned one or more times in the ad to qualify for the allowance.
Many manufacturers even help prepare the advertising copy, photographs, etc. for the retailer. This can be a win-win situation. You get your product and company name before the public, who is made aware that they can purchase the product locally. If the store is a respected one, you have the added benefit of the credibility afforded your product by its association with the store's name.
The retailer has incentive to advertise your product more often, and the added product exposure sells more product for them. Hopefully, your product will have enough of a profit margin to allow you to develop and use a co-op advertising program.
If you have a limited ad budget, radio and television ads can become extremely hard to justify. There are several ways to get the most "bang for your buck." Timing of radio and television ads can be arranged to suit your needs.
Some companies may want to run a spot three times a day, while others may choose to run their spot once every three days. One company recently chose to run three ads per day only ONE day per week, because their research showed that most of their audience was listening on that one day.
These methods of advertising have been called "pulsing" or "blinking." A little research into your target audience will go a long way toward making your advertising more effective.
The above article was taken from James F. Riordan's classic book, HOW TO EVALUATE THE POTENTIAL FOR SUCCESS OF A NEW PRODUCT OR TECHNOLOGY. Riordan's highly-acclaimed, 36-point system is a valuable tool for inventors, product evaluators or anyone interested in the invention process. Each section is followed by a comprehensive questionnaire that can be used to evaluate your product.
The highly-recommended book can be ordered through the Dream Merchant, 2309 Torrance Blvd., Suite 104, Torrance, CA 90501. The phone number is (310) 328-1925.
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