Question

S.D. Coin and Stamp Co., Inc., is located in Garden Grove California. It has been in business for over 30 years and has a reputation for carrying fine quality, collector coins and stamps. Each month it buys three ads. One goes in Linn’s Stamp News, and another runs in Coin Age. The owner of the store, Tom Ezma, has also found his ads draw a lot of response when they are run in the Antique Gazette. As people are trying to settle estates, it is not uncommon for the heirs to find a stamp or coin collection among the personal effects. While these collections are usually not very valuable, something of real value turns up every once in a while.

1. Every time Tom Ezma runs an ad for his company in one of the three specialized magazines, he anticipates each individual ad to draw at least 25 inquires. Is this sound thinking? Do you have any ideas how he might use print advertising to increase this response?

2.Tom Ezma runs an ad in Coin Age that includes in the copy free FedEx delivery on all orders and a money-back guarantee if a buyer is not satisfied with his or her order. He is the only dealer to make such an offer. Explain why Ezma is positioning his company in this way and what are the benefits of this type of positioning?

3. All of the ads for the S.D. Coin and Stamp Co., Inc., contain a mailing address, toll-free number, fax number, web site, and the ad contains quite a bit of copy. What are the advantages of including all this information, and would this type ad be more of an informational or transformational approach?

Answer 1

1) Each of the three specialised magazines might have their own customer base , with their own customer preferences and way of responding, so the ideology of Ezma to believe that each individual ad should bring a definite of at least 25 queries is not compelling and satisfying. As there is a possibility that one of magazine will bring even more queries while the other might not even come up to expectations.

So in order to increase this response, print media can be used to place advertisements in the most response providing magazine. In other words rather than posting ad every month in three specialised magazines, he should buy ad , twice a month in Antique Gazette, so as to even further increase response through attracting customers with the collection and providing alluring deals.

Moreover if it is a fact that stamps or coins are mostly found in personal effects while settling estates the very purpose of selling them should be shifted to make them appear to wide range of customers.

2) The primary purpose of Ezma to use such poisitioning strategy is to draw a lot of attention of customers towards its product as the response of customers from magazine Coin Age is not satisfying Ezma.

Moreover Ezma is poisitioning the company this way to create a perception in the minds of customers that the product available to them through his company is a good deal to them , and better from that of the rest of the options available as the deal will also save money on delivery and will reduce the uncertainty through cash back offer.

The major benefits of this type if positioning are;

Ezma will be able to gain trust and loyalty of customers through ensuring its efficient use

It will help her attract potential customers and new customer base.

It will provide to Ezma A competitive edge and help overcoming competition.

3) The major advantages of including all this information are :

Ezma will be able to build better customer relationship through providing all such information so that customer can connect to the company whenever required through one of the mentioned means or options.

Ezma will be able to extend a better customer support in case of queries complains and will therefore readdress them to minimize customer grievances.

Ezma will enhance the chances of customer contact by providing ease of options to connect to company in the way that suits to them.

E, g s real estate purchased will connect through toll free number, A professional through email, an association through fax etc.

Thus making available multiple options to get to business, customers will be able to track thetheir order or ensure that they are being informed of all the latest deals available.

This type will be more of an transformation approach of ad which aims to appeal to customers through holding their interest and catching their attention by poisitioning the product in their minds. And through providing amazing offers and containing an Ad copy , the company is persuading the customer, for purchasing the product through making them see it as an attractive and profitable deal

Moreover through keeping these information available through which they can easily connect to employees and recieved necessary required information regarding the product, they are using a transformational approach of advertising through differentiating their ad from the rest of competitors.

Thanks dear student hope I explained well.

Good luck and God bless :)

Please rate if satisfy:) that will be encouraging :)