In a poll of automobile experts but you can find a mindset” common to the pep- ND industry journalists, the Mini ranked as the peel likely to purchase them, said Martin. 5 “These number two “Car of the Century” behind the are people who have a great appreciation for De- revolutionary Ford Model T. Sign and style; they re confident but not cocky; In 1 994, the Minim’s new parent company, successful, but on their own terms. They love to BMW, recognized the makings of a retro-cool discover things on their own and they don’t like profit grabber. To tap into the Minim’s potential, to be hit on the head with marketing messages. BMW pumped about $500 million and six years Therefore, all of the advertising Omaha- into engineering a Mini that met the luxury car- sized the newcomer’s small stature and out- maker’s standards for safety, performance, and sided mystique. Minis mounted atop Ford 2 knockout looks. Excursions roamed through key urban markets, In March 2002, the new Mini would go on and they got free TV exposure when they were sale in the United States. Kerri Martin, the Mini parked in the stands at pro baseball and foot- USA marketing common actions director, needed ball games.
Magazine inserts established a to determine how best to introduce this retooled where personality for the Mini, inviting readers icon in the world’s largest market for automat- into its friendlier world, where those in the bills. After a four-month search for the right know went “motoring” instead of “driving. ” advertising agency, Martin enlisted Crispin Plain black billboards with white tastiness such Porter+Bogus, a well-established, Miami-based, as “The SIBS backlash officially starts now” boutique agency. “Crispin convinced us they drove the curious to www. Minimums. Com. Page 4 part 1 An Introduction to Advertising Thrifty and creative media planning maximized a relatively small budget of bout $20 million (one-fifth Of what Chrysler had spent the previous year to launch its own retro design, the OPT Cruiser). 6 Jim Pooh, Spot’s director of creative content distribution at that time, said, “Lots of advertisers spend their money on frequency, but we’d rather spend the money on surprise than bore people over and over again. “7 Pooh fit advertisements in unusual places, such as the margins of magazines and on the front of a supermarket tabloid.
In another unorthodox move, there were no TV spots in the campaign. Instead, Pooh brokered a deal to show provide commercials in a large, national heater chain. Where there had been no brand awareness, no product personality, nothing but potential a mere year before, there was now a phenomenon. Every one of the 20,000 Minis allocated to the U. S. Market for all of 2002 sold in nine months, and thousands of prospective buyers were on waiting lists. What Is Advertising? You are exposed to hundreds and maybe even thousands of commercial messages every day.
They may appear in the forms used by the Mini campaign? magazine ads, billboards, provide commercials, Web sites, and publicity product exposure?or in the form of TV commercials, coupons, sales teeters, event sponsorships, telemarketing calls, or e-mails. These are just a few of the many communication tools that companies and organizations use to initiate and maintain contact with their customers, clients, and prospects. You may simply refer to them all as “advertising. ” But, in fact, the correct term for these various tools is marketing communications. And advertising is just one type of marketing communication.
So, then, what is advertising? At the beginning of the twentieth century, Albert L asker, generally regarded as the father of modern advertising, defined advertising as “salesmanship in rink, driven by a reason why. “8 But that was long before the advent of radio, television, or the Internet. The nature and scope of the business world, and advertising, were quite limited. Over century later, our planet is a far different place. The nature and needs of business have changed, and so have the concept and practice of advertising. Definitions of advertising abound.
Journalists, for example, might define it as a communication, public relations, or persuasion process; businesspeople see it as a marketing process; economists and sociologists tend to focus on its economic, societal, or ethical significance. And some consumers might define it simply as a nuisance. Each of these perspectives has some merit, but for now we’ll use the following functional definition: Advertising is the structured and composed nonparallel communication of information, usually paid for and usually persuasive in nature, about products (goods, services, and ideas) by identified sponsors through various media.
Let’s take this definition apart and analyze its components. Advertising is, first Of all, a type Of communication. It is actually a very structured form of communication, employing both verbal and nonverbal elements that are imposed to fill specific space and time formats determined by the sponsor. Second, advertising is typically directed to groups of people rather than to individuals. It is therefore nonparallel, or mass communication. These people Page 5 chapter one Advertising Yesterday, Today, and Tomorrow Even nonprofits use advertising to bring in needed revenue. Loud be consumers, who buy products for their personal use. Or they might be businesspeople who would buy large quantities of products for resale in their stores. Most advertising is paid for by sponsors. GM. Wall-Mart, Coca-Cola, and your coal fitness salon pay the newspaper or the radio or TV station to carry the ads you read, see, and hear. But some sponsors don’t have to pay for their ads. The American Red Cross, United Way, and American Cancer Society are among the many national organizations whose public service announcements (AAAS) are carried at no charge because of their nonprofit status.
Likewise, a poster on a school bulletin board promoting a dance is not paid for, but it is still an ad? a structured, nonparallel, persuasive communication. 5 6 Page 6 CONCEPT CHECK Describe the six components that define advertising. Of course, most advertising is intended to be persuasive?to win converts to a product, service, or idea. Some ads, such as legal announcements, are intended merely to inform, not to persuade. But they are still ads because they satisfy all the other requirements of the definition.
In addition to promoting tangible goods such as oranges, pods, and automobiles, advertising helps publicize the intangible services of bankers, beauticians, bike repair shops, bill collectors, and Internet providers. Increasingly, advertising is used to advocate a wide variety of ideas, whether economic, political, religious, or social. In this book the term product encompasses goods, services, and ideas. An ad identifies its sponsor. This seems obvious. The sponsor wants to be identified, or why pay to advertise? Finally, advertising reaches us through a channel Of communication referred to as a medium.
An advertising medium is any paid means used to present an ad to its target audience. Thus, we have radio advertising, television advertising, newspaper ads, and so on. When you tell somebody how cool a Mini is, that’s sometimes called word-of-mouth (WHOM) advertising. Although WHOM is a communication medium, it’s not an advertising medium. It’s not structured, or openly sponsored, or paid for. Historically, advertisers have used the traditional mass media (the plural of medium)?radio, TV, newspapers, magazines, and billboards?to send their messages.
Modern technology enables advertising to reach us efficiently through a variety of addressable media (like direct mail) and interactive media (like the Internet). Advertisers also use a variety of other nontraditional media such as shopping carts, blimps, and DVD’s to find their audience. The Role of Advertising in Business In Chapter 5 we discuss in more detail how advertising helps to inform and erasure consumers, but first let’s consider advertising role in business.
Every business organization performs a number of activities, typically classified into three broad divisions: Operations (production/manufacturing) Finance/administration Marketing Of all the business functions, marketing is the only one whose primary role is to bring in revenue. Without revenue, of course, a company cannot pay its employees’ salaries or earn a profit. So marketing is very important. What Is Marketing? Over the years, the concept of marketing has evolved based on the supply of ND demand for products.
Because we need to understand marketing as it relates to advertising, we will use the American Marketing Association’s definition: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. 9 We will devote all of Part 2 to the subject of marketing and consumer behavior. What’s important to understand now is that marketing is a set of processes?a series 4:47 p M Page 7 7 of actions that take place
Marketing Strategy sequentially?aimed at satisfied a target market and marketing mix gasifying customer needs profitably. These processes are typically broken down Distribution into the 4 As of the moratorium price Promotion (Place) kiting mix: developing products, pricing them strategically, distributing them so they are available personal As Sees Direct Advertising Selling Marketing to customers at appropriate places, and promoting them through sales and Public Sponsorships advertising activities (see Relations and Events Exhibit 1-1). The ultimate goal of the marketing Exhibit 1-1 process is to earn a
Advertising is just one of several activities that fall under promotion component of the marketing mix. Profit for the firm by consummating the exchange of products or services with those customers who need or want them. And the role of advertising is to promote?to inform, persuade, and remind groups of customers, or markets, about the need- satisfying value of the company’s goods and services. Advertising and the Marketing Process Advertising helps the organization achieve its marketing goals. So do market research, sales, and distribution.
And these other marketing specialties all eve an impact on the kind of advertising a company employs. An effective advertising specialist must have a broad understanding of the whole marketing process in order to know what type of advertising to use in a given situation. Companies and organizations use many different types Of advertising, depending on their particular marketing strategy. The marketing strategy will help determine who the targets of advertising should be, in what markets the advertising should appear, and what goals the advertising should accomplish.
The advertising strategy, in turn, will refine the target audience ND define what response the advertiser is seeking?what that audience should notice, think, and feel. We will discuss the development of marketing, advertising, and media strategies later in the text. But first, we need to understand the economic dimension of advertising and how advertising has evolved as both an economic and a societal tool. Economics: The Growing Need for Advertising Economics has driven the growth Of advertising since its earliest beginnings and has made it one of the hallmarks of the free enterprise system.