Abstract:
The system and method described herein generally relate to method and system for generating advertising revenue by promoting products with advertisements placed thereon to a target market where the distribution of such products may be subsidized by advertising revenues. The system and method facilitate sales transactions by, at least at the initial sales transaction, subsidizing the true costs of goods through proceeds from ad placements. Subsequent transactions may be similarly subsidized or be allowed to operate through the theory of supply and demand.

Description:
[0001]     The system and method described herein generally relates to a method for generating advertising revenue by promoting products with advertisements placed thereon to a target market where the distribution of such products may be subsidized by advertising revenues.  
       BACKGROUND  
       [0002]     Systems and methods of advertising are well known in the art. Common mediums for advertising include newspaper, billboards, the Internet, television, and radio. Advertisements may be used to introduce new products into the market or to introduce existing products to new consumers. Advertising methods may suggest new uses for products already on the market or help facilitate the management of a distribution system. They help to build brands and to foster the good will of an advertiser.  
         [0003]     Although systems and methods of advertising revenue are known in the art, there is a continuing need for improved systems and methods. In this manner, it would be desirable to develop an alternative system and method for generating advertising sales.  
       SUMMARY  
       [0004]     The present invention describes a system and method for generating advertising sales by selecting at least one marketable good of a first cost amount to be distributed, receiving payment for placing at least one ad on or in association with the at least one marketable good, and distributing the at least one marketable good to an entity for a second cost amount, wherein the entity distributes the at least one marketable good to at least one patron for a third cost amount, and wherein the second cost amount is less than or equal to the first cost amount.  
         [0005]     Alternatively, the present invention my be practiced by selecting at least one marketable good by a first party to distribute, finding a second party to place an ad on or in association with the at least one marketable good, receiving payment from the second party for the placement of the ad on or in association with the at least one marketable good, receiving the at least one marketable good from a third party for a first cost amount, placing the ad on or in association with the at least one marketable good, and distributing the at least one marketable good to a fourth party for a second cost amount, wherein the fourth party distributes the at least one marketable good to a fifth party for a third cost amount, and wherein the second cost amount is less than or equal to the first cost amount.  
         [0006]     In another embodiment, the present invention my be practiced by acquiring a first set of goods at a first unit cost from a first supplier, wherein the first set comprises a plurality of said goods, selling the plurality of goods at a second unit cost to a first purchaser, the second unit cost being priced based in part on advertising venue for placement of ads in connection with the plurality of goods by a first advertising party, selling at least part of the plurality of goods at a third unit cost to a second purchaser, the third unit cost is either zero, less than the first unit cost, or greater than the first unit cost, and selling a second set of plurality of goods at a fourth unit cost to the first purchaser, the fourth unit cost being different from the second unit cost. 
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0007]     The invention is best understood from the following detailed description when read in conjunction with the accompanying drawings. Like numerals denote like features throughout the specification and drawings. Included are the following figures:  
         [0008]      FIG. 1  is a flow chart of an exemplary system and method for generating advertising sales in accordance with aspects of the present invention;  
         [0009]      FIG. 2  is a flow chart of an exemplary system and method for generating advertising sales in accordance with the system and method of  FIG. 1  where the target market is restaurants;  
         [0010]      FIG. 3  is a flow chart of an alternative embodiment of the system and method for generating advertising sales in accordance with the system and method of  FIG. 1  where the target market is retail stores; and  
         [0011]      FIG. 4  is a flow chart of an alternative embodiment of the system and method for generating advertising sales in accordance with the system and method of  FIG. 1  where the target market is supermarkets.  
     
    
     DETAILED DESCRIPTION  
       [0012]     The detailed description set forth below in connection with the appended drawings is intended as a description of the presently preferred embodiments of the system and method for generating advertising sales provided in accordance with aspects of the present invention and is not intended to represent the only forms in which the present invention may be constructed or utilized. The description sets forth the features and the steps for implementing and using the system and method for generating advertising sales of the present invention in connection with the illustrated embodiments. It is to be understood, however, that the same or equivalent functions and steps may be accomplished by different embodiments, which are also intended to be encompassed within the spirit and scope of the invention. Also, as denoted elsewhere herein, like element numbers are intended to indicate like or similar elements or features.  
         [0013]     A flow chart of an exemplary system for generating advertising sales provided in accordance with aspects of the present invention is shown in  FIG. 1 , which is generally designated  10 . In one exemplary embodiment, the system for generating advertising sales  10  comprises five groups of parties, with each group of parties comprising one or more members or species of the particular party group. For simplicity, only one member or species per party group is discussed, although it is understood that there may be a plurality of members per party group. In one embodiment, the first party  100  initiates the system by selecting a target market to advertise in and at least one exhaustible good  106  to be used as an advertising vehicle. In one embodiment, the first party  100  may be a promoter, an entrepreneur, or other business entity interested in implementing the system for generating advertising sales  10 . The first party  100  solicits a second party  200  to advertise on the goods  106  or on the packaging of the goods. The second party  200  may have a desire to participate in the system  10  due to the attractiveness of the target market. The first party  100  receives from the second party  200  a cost amount  102  for advertising in exchange for ad placements  104  on the goods  106  or on the packaging for the goods. In one embodiment, the second party  200  may be a manufacturer, a corporation, or some other business entity wishing to target the selected market for advertising.  
         [0014]     The first party  100  acquires the goods  106  from a third party  300  for a first cost amount  108 . In one embodiment, the third party  300  may be a supplier, a wholesaler, a manufacturer, or any other business entity in the business of providing the goods  106 . In one embodiment, the first party  100  may be combined with the second party  200  to represent a single entity. In one embodiment, the first party  100  may be combined with the third party  300  to represent a single entity. In one embodiment, the first party  100  may be combined with both the second party  200  and third party  300  to represent a single entity. The first party  100  places the desired ads  104  on either the goods  106  or the packaging of the goods. In one embodiment, the ads  104  may be unrelated to the goods  106  upon which they are placed. The first party  100  distributes the goods with ads  112  to a fourth party  400  doing business in the target market for a second cost amount  110 . In one embodiment, the second cost amount  110  may be zero or some amount less than the first cost amount  108 . In various embodiments, the fourth party  400  may be a restaurant, a retailer, a supermarket, or some other business entity doing business directly with consumers. The fourth party  400  distributes the goods with ads  112  to a fifth party  500  for a third cost amount  114 .  
         [0015]     In one embodiment, the fifth party  500  may be a patron, a customer, or a potential customer of the fourth party  400 . In an exemplary embodiment, the third cost amount  114  may be zero or some amount greater than zero. Initially, the first party  100  may give away the goods  112  to the fourth party  400  or may offer to sell the goods to the fourth party at some price below its fair market value to spark the interest of the fourth party. The fourth party  400  may also give away the goods  112  for free or sell them at an amount below their fair market value to the fifth party  500  to spark the interest or demand of the fifth party  500 . By giving the goods  112  away for free, the first party  100  builds good will with the fourth party  400  who in turn builds good will with the fifth party  500 .  
         [0016]     In perpetuating the cycle, and due to the demand from the fifth party  500 , the fourth party  400  requests additional goods  112  from the first party  100  for a second cost amount  110 ′, which may be different from the initial second cost amount  110 . In one embodiment, the second cost amount  110 ′ may be zero, greater than zero, or greater than the first cost amount  108 . In one embodiment, the fifth party  500  purchases goods or services  116  from the second party  200  as a consequence of the exposure to the second party&#39;s ads  104  placed on the goods  112  by the first party  100 . After the system  10  is put into motion, the number of goods, the amount for the goods, and the cost to place the ads on the goods can vary in accordance with the economic principles of supply and demand, which are represented by the closed loop cycles  90 .  
         [0017]     Referring now to  FIG. 2 , a flow chart of an exemplary system for generating advertising sales in accordance with the system and method of  FIG. 1  is shown. In one exemplary embodiment, the system  10  for generating advertising sales may comprise the following parties or groups: an advertiser  202 , a promoter  120 , a supplier  302 , a restaurant  402 , and patrons  502  of the restaurant. For simplicity, only one member or species of each group is discussed, although it is understood that there may be more than one advertiser  202 , promoter  120 , supplier  302 , and restaurant  402 . In one embodiment, the promoter  120 , who may be an entrepreneur or a marketing agent, initiates the system by selecting chopstick holders  126  to be used as the advertising vehicle, i.e., the goods. Alternatively, the promoter  120  may select the target market first and then the goods the target market would be interested in. Still alternatively, the promoter  120  may interview or conduct market surveys with business entities that cater to the target market. In this instance, the promoter  120  may opt to interview the restaurant owner  402  and conclude that chopstick holders are ideal goods for patrons of Asian food providers.  
         [0018]     Chopstick holders are well known in the art and described in U.S. Pat. No. 5,810,411 (Major), U.S. Pat. No. 4,721,334 (Nakatsu), U.S. Pat. No. 4,787,633 (Laramie), U.S. Pat. No. 5,486,029 (Kobayashi), the contents of these patents are expressly incorporated herein by reference. Generally speaking, a chopstick holder is a device that comprises two receiving units connected to one another by a bridge or a connector, which functions as a fulcrum. The receiving units each receive an end of a chopstick and the bridge facilitates movement of the chopsticks while preventing the chopsticks from dislodging from the user&#39;s hand.  
         [0019]     The promoter  120  solicits an advertiser  202  to advertise on the chopstick holders  126  or on the packaging of the chopstick holders. The advertiser  202  may be one of many businesses that sell products in a restaurant, a supermarket, a hardware store, or any other business entity that would find restaurant patrons to be a prime demographic for advertising. The promoter  120  receives an amount  122  for advertising from the advertiser  202  and the desired ad or ads  124  to be placed on the chopstick holders  126  or on their packaging.  
         [0020]     The promoter  120  acquires the chopstick holders  126  from a supplier  302  for a first amount  128 . In one embodiment, the supplier  302  may be a manufacturer, a wholesaler, or any other business entity that provides chopstick holders. The promoter  120  places the desired ads  124  on either the chopstick holders  126  or the packaging of the chopstick holders. In practice, the manufacturer of the chopstick holders may place the ads on the goods or on the packaging directly at the request of the promoter  120 . The promoter  120  distributes the chopstick holders with ads  132  to the restaurant  402  for a second amount  130 . In one embodiment, the second amount  130  may be zero or some amount less than the first amount  128  to entice the restaurant  402  to distribute the chopstick holders  132  to its patrons. The restaurant  402  then distributes the chopstick holders with ads  132  to the patrons  502  for a third amount  134 . In one embodiment, the third amount  134  may be zero or some de minimus amount as a gesture to build customer loyalty or good will.  
         [0021]     In perpetuating the cycle, and because the initial supply of goods has run out or simply because of the demand from patrons  502 , the restaurant  402  requests additional chopstick holders with ads  132  for a second amount  130 ′, which may be different from the initial second amount  130 . In one embodiment, the second amount  130 ′ may be zero, greater than zero, or greater than the first amount  128 . In one embodiment, the patrons  502  of the restaurant  402  purchase goods or services  136  from the advertiser  202  as a consequence of exposure to the ads  124 . After the system  10  is put into motion, the number of chopstick holders, the amount for the chopstick holders, and the cost to place the ads between party groups can vary in accordance with supply and demand.  
         [0022]     In an alternative embodiment, the promoter  120  may initiate the system  10  by sending a package containing a plurality of goods  126  with ads  124  placed thereon to the restaurant  402 , or a host of random restaurants. Of course, the sent packages would include information for ordering additional goods. The restaurant  402  then distributes the goods to its patrons, either at a small cost or for free. Once the restaurant  402  runs out of chopstick holders  126 , it requests a new order or a refill from the promoter  120 , who then orders from the supplier  302 . The system  10  would then evolve as discussed above with four chains or cycles of supply and demand and one chain of advertising.  
         [0023]     Referring now to  FIG. 3 , a flow chart of an alternative embodiment of the system and method for generating advertising sales in accordance with the system of  FIG. 1  is shown. In one exemplary embodiment, the system for generating advertising sales  10  may comprise the following groups: an advertiser  204 , a promoter  140 , a supplier  304 , a retailer  404 , and patrons  504  of the retailer. For simplicity, only one member or species of each group is discussed, although it is understood that there may be more than one advertiser  204 , promoter  140 , supplier  304 , and retailer  404 . In one embodiment, the promoter  140  initiates the system by selecting perfume samples  146  to be used as the advertising vehicle. In one embodiment, the promoter  140  is an entrepreneur or other business entity interested in implementing the system for generating advertising sales  10 . The promoter  140  solicits an advertiser  204  to advertise on the perfume samples  146  or on the packaging of the perfume samples. The promoter  140  receives an amount for advertising  142  from the advertiser  204  and the desired ads  144 . In one embodiment, the advertiser  204  may be a manufacturer, a corporation, or some other business entity wishing to target the selected market for advertising. As perfume samples are the goods being promoted, the target market or patrons may include female shoppers or visitors of health spas and salons. The market segment that caters to these patrons may include salons, health spas, and clothing stores.  
         [0024]     The promoter  140  acquires the perfume samples  146  from a supplier  304  for a first amount  148 . In one embodiment, the supplier  304  may be a manufacturer, a wholesaler, or any other business entity providing perfume samples  146 . The promoter  140  places the desired ads  144  on either the perfume samples  146  or the packaging of the perfume samples. The promoter  140  distributes the perfume samples with ads  152  to a retailer  404  for a second amount  150 . In one embodiment, the second amount  150  may be zero or some amount less than the first amount  148  to entice the retailer  404  to distribute the perfume samples  152 . As discussed above, in one embodiment, the retailer  404  may be a department store, a salon, a health spa, a perfume store, or any other business entity wishing to distribute perfume samples  146 . The retailer  404  distributes the perfume samples with ads  152  to patrons  504  for a third amount  154 . In one embodiment, the third amount  154  may be zero.  
         [0025]     In perpetuating the cycle, and because of the demand from the patrons  504 , the retailer  404  requests additional perfume samples with ads  152  for a second amount  150 ′, which may be different from the initial second amount  150 . In one embodiment, the second amount  150 ′ may be zero, greater than zero, or greater than the first amount  148 . In another embodiment, the patrons  504  of the retailer  404  purchase goods or services  156  from the advertiser  204  as a consequence of exposure to the ads  144 . After the system  10  is put into motion, the number of perfume samples, the amount for the perfume samples, and the cost to place the ads between party groups can vary in accordance with supply and demand.  
         [0026]     Referring now to  FIG. 4 , a flow chart of an alternative embodiment of the system and method for generating advertising sales in accordance with the system of  FIG. 1  is shown. In one exemplary embodiment, the system and method for generating advertising sales  10  comprises the following parties or groups: an advertiser  206 , a promoter  160 , a supplier  306 , a supermarket  406 , and patrons  506  of the supermarket. For simplicity, only one member or species of each group is discussed, although it is understood that there may be more than one advertiser  206 , promoter  160 , supplier  306 , and supermarket  406 . In one embodiment, the promoter  160  initiates the system by selecting an automobile  166  to be used for advertising. In one embodiment, the promoter  160  is an entrepreneur or other business entity interested in implementing the system for generating advertising sales  10 . The promoter  160  solicits an advertiser  206  to advertise on or in association with the automobile  166 . The promoter  160  receives an amount for advertising  162  from the advertiser  206  in return for placement of the desired ads  164  on the automobile  166 . In one embodiment, the advertiser  206  may be a manufacturer, a corporation, or some other business entity wishing to target the selected market for advertising. As the automobile  166  is the good to be promoted, the patrons may include race car fans, members of a golf club, customers of a new supermarket in a car give-away sweepstake, customers of a new department store car give-away sweepstake, etc.  
         [0027]     The promoter  160  acquires the automobile  166  from a supplier  306  for a first amount  168 . In one embodiment, the supplier  306  may be a manufacturer, a dealer, or any other business entity providing automobiles. The promoter  160  places the desired ads  164  on either the automobile  166  or on associated displays to be placed adjacent the automobile. The promoter  160  distributes the automobile with ads  172  to a supermarket  406  for a second amount  170 . In one embodiment, the second amount  170  may be zero or some amount less than the first amount  168  to entice the supermarket  406  to distribute the automobile  172 . The supermarket  406  distributes the automobile with ads  172  to patrons  506  for a third amount  174 . In one embodiment, the third amount  174  may be zero. In a preferred embodiment, the automobile  166  is given away by the supermarket  406  in a contest. The patrons  506  may pay a fee to enter the contest, in which case the third amount  174  is greater than zero.  
         [0028]     In perpetuating the cycle, and because of the demand from patrons  506 , the supermarket  406  requests additional automobiles  172  for a second amount  170 ′, which may be different from the initial second amount  170 . In a preferred embodiment, the request to the promoter  160  for additional automobiles  172  may come from the supermarket  406 , a related supermarket, a competing supermarket, or any other store. In one embodiment, the second amount  170 ′ may be zero, greater than zero, or greater than the first amount  168 . In one embodiment, the patrons  506  of the supermarket  406  purchase goods or services  176  from the advertiser  206  as a consequence of exposure to the ads  164  of the advertiser  206 . After the system  10  is put into motion, the number of automobiles, the amount for the automobiles, and the cost to place the ads can vary in accordance with supply and demand.  
         [0029]     Although the preferred embodiments of the invention have been described with some specificity, the description and drawings set forth herein are not intended to be delimiting, and persons of ordinary skill in the art will understand that various modifications may be made to the embodiments discussed without departing from the scope of the invention, and all such changes and modifications are intended to be encompassed within the appended claims. Various changes to the number of parties involved may be made without deviating from the spirit and scope of the present invention. For example, various parties may be added to the interactions involving the first party. In addition, while the specification define the parties in terms of first, second, third, etc., the sequence can change. In other words, in the context of one transaction, a party may be referred to as a first party. However, in the context of another transaction, the same party may be referred to as a second or a third party. In the event of a conflict, the positions or blocks of various parties shown in the figures should control and not their numeric designations. Other changes include the use of a service instead of a good as the advertisement vehicle. Accordingly, many alterations and modifications may be made by those having ordinary skill in the art without deviating from the spirit and scope of the invention.