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Why advertise?
Strong, effective advertising increases the portion of sales you receive in a thin market. What is a thin market? If you've ever bought a microwave, you understand the "thin market" concept already. That's because you wouldn't expect to buy another one soon after the first. The market is thin because only a small fraction of consumers shop for any general merchandise product in a given week. In fact, in an average week, less than 1% of Americans will shop for a major appliance; only five percent will shop for a more popular item like women's shoes. For example: More than $2 billion dollars worth of washing machines are sold in the U.S. every year. However, only $15.2 million are sold in the Birmingham market every year. That averages to $41,644 of washing machines sold each day. There are 34 major appliance retailers in the Birmingham MSA. If each retailer gets an equal share, each business would have $1,225 in washing machine sales per day. Of course, we know not every retailer will get an equal share. This is because consumers are influenced by "top-of-mind" awareness. That is, they make purchasing decisions based on what choices first come to mind. Let's go back to the washing machine. If someone's washing machine suddenly dies, chances are a new washing machine will be purchased within 24 hours. If you sell washing machines, your prospect will be in and out of the market in a single day and will not return again for years. To remain competitive, you must reach this and other potential customers and maintain a consistent presence among them to build "top-of-mind" awareness in them of your business. Businesses reaching only a portion of their market and infrequently or sporadically advertising will be less thought of, especially at the critical time their potential customers are in the market. That is not say more advertising is always better. A business can also saturate the market with advertising past the point of gaining any additional benefit, needlessly wasting its advertising budget. The Birmingham
News can show you how to maximize your advertising budget while achieving
the outstanding results your business needs to succeed. We understand
the Birmingham market and how to make the most from it. We offer a diverse
range of products, targeted delivery to specific market areas and personalized
market research. We can determine exactly where your consumers are, select
products that will allow your advertising to effectively reach them without
waste or duplication, and deliver your advertising to them with the consistency
and frequency needed to achieve "top-of-mind" awareness. |
