What is erosion and how does it affect you marketing strategy

Erosion - the numbers game

A popular area for small firms is the 'Postal Bargains' slot in many papers, but research on response is hard to come by. I have carried out my own research on the pulling power of this slot. A dozen advertisers were canvassed. I picked out what looked like newish small firms, asking for the response to their ads. Few claimed more than 30 replies. Though a paper's circulation may exceed half a million, half of the readership may only buy it for the pictures, a quarter for the sport, some the crossword, and a surprisingly high number never buy by post on principle. The moral is clear: don't be deceived by massive circulations. That's erosion.

Coverage

There could be a lot of duplication when you use different advertising media. You want to establish how well you reach the audience - the penetration or coverage. A DIY product could be advertised in Practical Householder, mailshoted to power-drill owners, taken to a trade show to tempt stockists, pushed on TV or any combination of all those. The women's magazine market is a lively and populous one. How many women buy two or more? Which magazine gives the best penetration for your age group? Is TV Times a better buy anyway? The eternal problem with most advertising is measuring the effectiveness.

National corporations can afford to have online ads, poster displays, bus panels and whole-page ads in the Financial Times, but even they have great difficulty in isolating which medium has pulled in the most response. By definition, small firms tend to be frugal with their advertising budgets, and should avoid any promotions where the results cannot be measured. Your advertising has to be more specific, measurable and sell.

Opportunities to see (OTS)

The popularity of breakfast TV (at least with the advertisers) is that they can get the message over before the shops open. Trade buyers are deluged with calendars, diaries, pen sets and message pads in the hope that they will remain in the office at the point of action when a buying decision is made. The more opportunities to see that are given, the greater chance that the company name or product will stick. This is why direct mail letters involve more pieces of literature. The theory (and practice) is that each piece of mailing is looked at before being discarded. It may only be a brief scan but it gives the seller another chance to hook a punter. Bus advertising on the rear panels should be aimed at the motoring public, with ads for tyres and accessories being the most popular.

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