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Advertising

Advertising is the nonpersonal


communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Bovee/Arens, 1992
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through
the various media.
Two kinds of selling
 Personal  Expensive in both
 Plenty of time to time and money
deliver the message  Labor-intensive
 Done face to face
 Time consuming
 Message can be
adjusted to fit how
it’s getting across
 Easy to find
customers
Non-Personal
 Limited in time and/or  Message doesn’t have to
space be created on the spot
 Don’t know who the  Extensive research
customer is  Far cheaper than
 Don’t know how the personal selling
customer is reacting
 Can’t change the
message in mid-stream
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through
the various media.
The Senses
 Smell

 Touch

 Taste

 Sound

 Sight
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through
the various media.
Affirmative disclosure
 "Sometimes the consumer is provided not with
information he wants but only with the
information the seller wants him to have.
Sellers, for instance, are not inclined to
advertise negative aspects of their products
even though those aspects may be of primary
concern to the consumer, particularly if they
involve considerations of health or safety . . . "
Lewis A. Engman, FTC Chair
Puffery
 The legitimate exaggeration of
advertising claims to overcome
natural consumer skepticism
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through
the various media.
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through
the various media.
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through
the various media.
The bundle of values
 Functional value

 Social value

 Psychological value

 Economic value

 Whatever else the consumer thinks is


important
Three ways to differentiate products
 Perceptible
 Actual differences
 Easily seen

 Imperceptible
 Actual differences
 Can’t be seen

 Induced
 No actual differences
 Parity products
Advertising is the nonpersonal
communication of information
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media.
Advertising is the nonpersonal
communication of information,
usually paid for and usually
persuasive in nature about
products, services or ideas by
identified sponsors through the
various media
 Has been around for a
long time
 We still don’t know
what the Lascoux
paintings were for
For the first few
thousand years
advertising promoted
locations, services and
“want ads”.
Ad written on a Roman tomb
 Weather permitting, 30 pairs of gladiators,
furnished by A. Clodius Flaccus, together with
substitutes in case any get killed too quickly,
will fight May 1st, 2nd, and 3rd at the Circus
Maximus. The fights will be followed by a big
wild beast hunt. The famous gladiator Paris
will fight. Hurrah for Paris! Hurrah for the
generous Flaccus, who is running for
Duumvirate.
Under the ad was written:
Marcus wrote this sign by the light of the moon.
If you hire Marcus, he’ll work day and night to
do a good job.

Daniel Mannix, Those About to


Die
Location
Handbills and fliers to promote
events or to recruit for the
military
Handbill
recruiting sailors
for
USS Constitution
1798
Ad about runaway slave - 1770
Since most products such as
shoes and clothing were one-of
and made to order you only
needed to advertise where to
order
Service
Industrial Revolution
 Early 19th Century
 Mass production of products
 Led to three stages of marketing:
Production-oriented
 Demand far outstripped supply
 Could just advertise the existence of the
product and where to get it
 Whatever was made was sold
 Example: People wanted cars, so car
companies made whatever they wanted and
the cars were sold before they were built
Sales-oriented
 Supply exceeded demand
 Companies tried to convince consumers to buy
their products rather than their competitors’
 Companies still made whatever they wanted,
counting on their ability to peddle their products
 Example: supply of cars went up, so the
companies made whatever they wanted and
convinced people they wanted that
Marketing-oriented
 Supply of products far exceeded demand
 More choices than any promotion could overcome
 Resistance to “hard-sell”

 Companies tried to discover what products


consumers wanted before making them, then
advertise they had it
 Non-American companies (e.g., VW) found
out what people wanted, then built cars that
had it (e.g., a gas gauge)
Let’s take a example

The American auto


industry
Production-oriented
Sales-oriented
Marketing-oriented
 Early sales-oriented ads were basically “caveat
emptor” (let the buyer beware)
 Producers said whatever they wanted and thought
they could get away with
 For example, the “Health Jolting Chair”
 Led to consumer and competitor anger
 1938 – Federal Trade Commission given
power to regulate deceptive and unfair
advertising
 Advertising could no longer lie, so new
approaches were tried
40s and 50s
 Era of the hard-sell
 Rosser Reeves “irritation school of
advertising”
 Relied on brain-numbing repetition and treating
the consumer as an idiot
 The USP – Unique Selling Proposition

 It was jack-hammered into consumers’ skulls


60s
 The positioning era
 Shift to the soft-sell
 Compare your
product to your
competitors’
 Treat consumers as
intelligent
 Appeal to emotion
more than intellect

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