Warming Up

1. How would you define advertising?

2. What types of advertising do you know?

3. What types of media are used in advertising?

4. What is your personal attitude to advertising? Do you trust it?

5. Sometimes companies are accused of ethically wrong, controversial advertising. Can you give any examples? What do you think of this?

Advertising

The process of marketing includes a whole range of activities relating to selling the product ― actual selling, decisions on pricing and distribution policy, advertising and other forms of promotion.

Advertising can be defined as commercial messages to the public designed to inform potential and established customers and to encourage sales for the advertiser.

Every ad and every advertising campaign should have clearly defined objectives. These should grow out of the firm's overall marketing strategy ― and the jobs assigned to advertising. It isn't enough for the marketing manager to say, “Promote the product.” The marketing manager must decide exactly what advertising should do.

Advertising objectives should be more specific than personal selling objectives. Salespeople can shift their presentations for each customer. Each ad, however, must be effective for thousands — or millions — of customers.

The marketing manager may give the advertising manager one or more of the following specific objectives — along with the budget to accomplish them:

1. Help introduce new products to specific target markets.

2. Help position the firm's brand or marketing mix by informing and persuading target customers or middlemen about its benefits.

3. Help obtain desirable outlets and tell customers where they can buy.

4. Prepare the way for salespeople.

5. Get immediate buying action.

6. Help buyers confirm their purchase decisions.

The advertising objectives largely determine which of two basic types of advertising to use — product or institutional.

Product advertising tries to sell a product. It may be aimed at final users or channel members.

Institutional advertising tries to promote an organization's image, reputation, or ideas — rather than a specific product. Its basic objective is to develop goodwill or improve an organization's relations with various groups — not only customers but also current and prospective channel members, suppliers, shareholders, employees, and the general public. For example, the British government uses institutional advertising to promote England as a place to do business.

Product advertising falls into three categories: pioneering, competitive, and reminder advertising.

Pioneering advertising — builds primary demand

Pioneering advertising tries to develop primary demand for a product category rather than demand for a specific brand. Pioneering advertising is usually done early in the product life cycle: it informs potential customers about the new product and helps turn them into adopters. When Merrell Dow introduced a prescription drug to help smokers break the habit, it did pioneering advertising to inform both doctors and smokers about its breakthrough. The ad didn't even mention the name of the drug. Instead it informed smokers who wanted to quit that doctors could now help them overcome their nicotine dependence.

Competitive advertising — emphasises selective demand

Competitive advertising tries to develop selective demand for a specific brand. A firm is forced into competitive advertising as the product life cycle moves along — to hold its own against competitors.

Competitive advertising may be either direct or indirect. The direct type aims for immediate buying action. The indirect type points out product advantages to affect future buying decisions.

Most of Delta Airlines' advertising is of the direct competitive variety. It tries for immediate sales with prices, timetables, and phone numbers to call for reservations. Some of its ads are the indirect type. They focus on the quality of service and suggest you mention Delta when you talk to a travel agent.

Comparative advertising is even rougher. Comparative advertising means making specific brand comparisons — using actual product names. A recent comparative ad for Ford trucks belittles Chevy trucks — by name — as more expensive to buy and worthless later.

Many countries forbid comparative advertising, but that situation is changing. For example, Japan banned comparative advertising until about four years ago. Japan's move followed an earlier change in the United States. The Federal Trade Commission decided to encourage comparative ads — after banning them for years — because it thought they would increase competition and provide consumers with more useful information.

In the United States, superiority claims are supposed to be supported by research evidence — but the guidelines aren't clear. Some firms just keep running tests until they get the results they want. Others talk about minor differences that don't reflect a product's overall benefits.

Reminder advertising — reinforces early promotion

Reminder advertising tries to keep the product's name before the public. It may be useful when the product has achieved brand preference or insistence — perhaps in the market maturity or sales decline stages. Here the advertiser may use soft-sell ads that just mention or show the name —as a reminder.

Institutional advertising usually focuses on the name and prestige of an organization or industry. It may seek to inform, persuade, or remind.

Large companies sometimes rely on institutional advertising to present the company in a favourable light — perhaps to overcome image problems. Ads for an oil company, for example, might highlight its concern for the environment.

Some organizations use institutional advertising to advocate a specific cause or idea. Insurance companies and organizations like Mothers Against Drunk Driving, for example, use these advocacy ads to encourage people not to drink and drive.