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Advertising

23

ADVERTISING

CONTENTS

Introduction

CHAPTER 1

1. Local Advertising

1.1 Types of Local Advertising

1.2 Objectives of Local Advertising

1.3 Planning the Advertising Effort

1.4 Creating the Local Advertising

1.5 Seeking Creating Assistance

CHAPTER 2

Public Relations, Corporate Advertising, and Noncommercial Advertising

1. The Role of Public Relations

2. Corporate Advertising

2.1 Public Relations Advertising

2.2 Corporate/Institutional Advertising

2.3 Corporate Identity Advertising

2.4 Recruitment Advertising

3. Noncommercial Advertising

3.1 Examples of Noncommercial Advertising

3.2 Types of Noncommercial Advertising

3.3 Advertising Council

CHAPTER 3

International Advertising

1. Growth and Status of International Advertising

1.1 Managing International Advertising

1.2 Creative Strategies in International Advertising

Bibliography

Finally

INTRODUCTION

Advertising can be used for a variety of special purposes. Local businesses advertise within a particular geographic area rather than nationwide, corporations sometimes advertise to enhance their reputations rather than to sell products, and international businesses advertise around the world. This course paper is a thorough coverage of these special types of advertising. The prevalence of advertising underscores its many advantages. Of the various forms of promotion, it is the best for reaching mass audiences quickly at a low person cost. It is also the form of promotion over which the organizations has the greatest control. In an advertisement, you can say what ever you want, as long as you stay within the boundaries of the law and conform to the moral and ethical standards of the advertising medium and trade associations. You can promote goods, services, and ideas, using a full range of creative and generating sales leads. In addition, it can rekindle interest in a product whose sales have grown sluggish, as illustrated by the remarkable success of Isuzu's memorable "liar" commercials. While sales of other Japanese cars and trucks were growing by only percent, Isuzu's sales jumped 21 ercent within a few months after "Joe suzu" started hawking the cars on TV with subtitles announcing that he was stretching the facts.

The object of our investigation is special types of advertising.

The aim of investigation is to tell about special types of advertising.

The main tasks of our course paper is to learn the special types of advertising.

The theoretical value of the investigation are different examples on different firms by the theoretical explanation.

The practical value of the investigation is to learn how different kinds of firms do their advertising. The novelty of investigation is to show what modern technologies of advertising the population has achied.

CHAPTER 1. "LOCAL ADVERTISING"

1. LOCAL ADVERTISING

As opposed to regional or national advertising, refers to advertising by businesses within a particular city or county to customers within the same geographic area. In 1990, approximately 44 percent of all dollars spent on advertising were for local advertising.

Quite often, local advertising is referred to as retail advertising because it is commonly performed by retail stores. However, retail advertising is not necessarily local - it can be regional or national as well, as the volume of commercials run by national retail firms such as sears and J.C.Penney. Moreover, many businesses not usually thought of as retail stores use local advertising - real estate brokers, banks, movie theaters, auto mechanics, and TV stations, restaurants, museums, and even funeral homes. Local businesses of all types often use public service or issue advertising.

Local advertisers fit into three categories:

* Dealerships or local franchises or regional or national companies that specialize in one main product or product line ( such as Toyota, McDonalds, or H&R Block).

* Stores that sell a variety of branded merchandise, usually on a nonexclusive basis ( such as department stores ).

* Specialty businesses and services ( such as music stores, shoe repairshops, florists, hair salons, travel agencies ).

Businesses in each of these categories have different advertising goes and approaches. Local advertising is very important because most sales are made or lost locally. A national auto manufacturer may spend millions advertising new cars, but its nationwide network of local auto dealers spend just as much or more on a combined basis to bring customers into their showrooms to buy the cars. In fact, if the dealers don't make a strong effort on the locallevel, the effort of national advertisers may be wasted. So when it comes to consummating the sale, local advertising is where the actions is. The basic principles used by national advertisers are also applicable to local advertising, but local advertisers have special problems that stem from the simple, practical realities of marketing in a local area.

Local and national advertisers differ in basic objectives and strategies, perceived needs of the marketplace, amount of money available to spend on advertising, greater emphasis by local advertisers, on newspaper advertising, use of price as a buying inducement, and the use of specialized help in preparing advertisements.

1.1 TYPES OF LOCAL ADVERTISING

The two major types of local advertising are produce and institutional. As its name implies product advertising is designed to sell a specific product or service and to get immediate action institutional advertising, on the other hand, attempts to obtain favorable attention for the business as a whole not for a specific product or service the store or business sells. The effects of institutional advertising are intended to be long term rather than short rang.

1.2 OBJECTIVES OF LOCAL ADVERTISING

The objectives of local advertising differ from the objectives of national advertising in both emphasis and time. National manufacturers tend to emphasize long-term objectives of awareness, image, and credibility. On the local, retail level, the advertiser's needs tend to be more immediate, as shown in the checklist of Local Advertising Objectives. The emphasis is on keeping the cash register ringing - increasing traffic, turning over inventory, and bringing in new customers among other things. As a result on the local level, there are constant promotions, sales and clearances, all designed to create immediate activity. The trade-off, of course, is that the day after the promotions or sale the traffic may drop. So to increase traffic again, the merchant may plan another sale or another promotion. Then another and another. This can result in a cycle of sporadic bursts of activity followed by inactivity, sharp peaks and valleys in sales, and the image of a business that should be visited only during a sale. Long-term and short-term objectives work against each other when one is sought at the expense of the other. Successful local advertisers must there fore think of long-term objectives first and then develop short-term goals to help achieve their long-term objectives. This usually increases the emphasis on institutional and regular price-line advertising, improves customer service, and reduces the reliance on sales and clearances for creating traffic.

1.3 PLANNING THE ADVERTISING EFFORT

The key to success in any advertising program, local or national, is adequate planning. Planning is not a one-time occurrence, however, but a continuous process of research evaluation, decision, execution, and review. On the local level, more advertising dollars are wasted because of inadequate planning than for any other reason. The success of Rebio's was due to the fact that Ralf Rubio made planning a continuous, flexible process that allowed for change, improvement, new facts, and new ideas. Several steps are involved in planning the local advertising effort: analyzing the local market and the competition, conducting adequate research, determining objectives and strategy, establishing a realistic budget, and planning media strategy. However the small advertiser will often profit from a bottom-up planning approach. Rubio's success, for example, can be attributed to his starting with a tactic- the fish taco- and then building a complete strategy around it, from the bottom up.

1.4 CREATING THE LOCAL ADVERTISING

One of the most competitive businesses in any local market is the grocery business. Characterized by high overhead, low profit margins, heavy discounting, constant promotion, and miser doses of advertising, food retailing is a difficult and highly competitive business at best. The Tom Thumb Page grocery stores in Dallas had an additional problem. They had elected to avoid price competition whenever possible and to compete instead on the basis of quality and service. This policy made it potentially difficult to attract new customers and create store traffic, because grocery customers tend to be very price-oriented.

The Tom Thumb Chain had been doing " maintenance advertising " in routine food-day newspaper sections for about four years. When they hired a new Charles Cullum explained their situation and their objectives. They asked the agency to develop a campaign that would show that Tom Thumb was, in fact, very competitive in giving top value even though the prices might be slightly higher. Barbara Harwell and Chuck Beau, the agency's creative directors, responded by developing a local institutional compaign that made grocery advertising history. They suggested opening the campaign with a television promotion for Thanksgiving turkeys. They convinced the Cullums and Tom Hailstone, the Chain's president, that to present a truly quality image they would have to create an absolutely outstanding commercial in terms of production quality. Furthermore, to communicate that Tom Thumb's policies truly warranted higher prices, they pervaded the clients to make a bold, risky statement that would impress the viewing public. Hairston and the Cullums agreed two weeks before Thanksgiving, the campaign began.

The Commercial Opened with a tight close-up of a live turkey. As the off-camera announcer spoke, the camera pulled slowly back, and the turkey rested to the copy with an occasional" gobble ". The announcer said: At Tom Thumb we stand behind everything we sell... And that's a promise. It's always been that way. Even when we started, Mr. Cullum said, "We want our customers to be happy with every thing they buy in this store. If a woman buys a turkey from us and comes back the day after Thanksgiving with a bag of pones and says she didn't like it we'll give her money back or give her another turkey." The moment he said that, the turkey reacted with a big " gobble " and ran off-camera.

The commercial closed on the company lag with the announcer saying, "That's the way we do business at Tom Thumb... we stand behind everything we sell, and that's a promise." The company merchandised the campaign by printing the slogan " We stand behind everything we sell... and that's a promise". On grocery sacks, on red lapel buttons for employees, and on outdoor billboards. The audio portions of the commercials were aired as radio spots. Most important employee-orientation meetings were held to explain the concepts to the company's personal and to make absolutely sure that any customers returning merchandise received a friendly, cordial smile from the employee handling the transaction. The reaction to the campaign was astounding. First, it became the topic of local conversation. Then people began to wonder how many turkeys' people began to talk about the campaign and showed the commercial in their newscasts. Finally, the top disk jockey in Dallas sponsored a contest inviting listeners to guess how many turkeys would be returned to Tom Thumb. The day after Thanksgiving, the local TV film crews waited at the stores to count and interview people carrying in bags of bones. One customer said she returned a turkey and got her money back with no questions asked. Another said she was given her money immediately but that she then gave the money back. She had just wanted to test them to see whether they were telling the truth.

The final score was 30.000 turkeys sold and only 18 returned - a fantastic marketing, advertising, and publicity success. Since then, the store has been reported in numerous grocery and advertising trade journals, and Tom Thumb Page successfully continued the " we stand behind everything we sell " advertising campaign theme.

This " talking turkey " example shows that creativity in developing an ad campaign is just as important at the local level as it is on the national level, Local advertisers often fail to realize that their print and broadcast messages the budgetary constraints of local businesses, creativity becomes even more important in grabbing the consumer's attention. The final section of this chapter addresses elements that go into creating local ads, and the kinds of creative assistance available to local advertisers.

1.5 SEEKING CREATIVE ASSISTANCE

Local businesses have a number of sources they can turn to for creative help, including advertising agencies, the local media, free-lancers and consultants, creative boutiques, syndicated art services, and wholesalers, manufacturers, and trade associations.

CHAPTER 2. "PUBLIC RELATIONS, CORPORATE ADVERTISING, AND NONCOMMERCIAL ADVERTISING"

1. THE ROLE OF PUBLIC RELATIONS

Public relations (PR) is a term that is widely misunderstood and misused to describe anything from selling to hosting, when in fact it is a very specific communications process. Every company, organization, association, and government or says. They might be employees, customers, stockholders, competitors, suppliers, or Just the general population of consumers. Each of these groups may be referred to as one of the organization's publics. The process of public relations manages the organization's relationships with these publics.

As soon as word of the Valdez Spill got out, the PR staff at Exxon assumed responsibility for handling the barrage of phone calls from the press and the public and for managing all company communications with the media.

Simultaneously, other company departments had to deal with numerous local, state, and federal government agencies and with the community at large - not just in Valdez, Alaska, but anywhere in the world where someone was touched by the disaster. In addition, myriad other publics suddenly popped into the spotlight demanding special attention and care: Alaskan fishermen, both houses of congress, local politicians, the financial community, stockholder, employed, the local press, national networks, Exxon dealers, and environmental groups, for starters.

Companies and organizations know they must consider the public impact of their actions and decisions because of the powerful effect of public opinion. This is especially true in time of crisis, emergency, or disaster. But it is just as true for major policy decisions concerning changes in business management, pricing policies, labor negotiations, introduction of new products, or changes in distribution methods. Each of these decisions affects different groups in different ways. Conversely, effective administrators can use the power of these groups' opinions to bring about positive changes.

In short, the purpose of ever using labeled public relations is to influence public opinion toward building goodwill and a positive reputation for the organization. In one instance, the PR effort might be to rally public support; in another, to obtain public understanding or neutrality or in still another, simply to respond to inquiries. Well-executed public relations is a long-term activity that molds good relationships between an organization and its publics. Put yourself in the position of Exxon's top public relations manager at the time of the Valdez accident. What do you suppose was the major thrust of the PR staff's efforts in the days immediately following the discovery of the oil spill? What might they have been called on to do?

We will discuss these and other questions in this chapter. But first it is important to understand the relationship between public relations and advertising they are so closely related but so often misunderstood.

2. CORPORATE ADVERTISING

As mentioned earlier, corporate advertising is basic tool of public relations. It includes public relations advertising, institutional advertising, corporate identity advertising, and recruitment advertising. Their use depends on the particular situation, the audience or public being addressed, and the message the firm needs to communicate.

2.1 PUBLIC RELATIONS ADVERTISING

Public relations advertising is often used when a company wishes to communicate directly with one of its important publics to express its feelings or enhance its paint of view to that particular audience. The Claris ad in exhibit 18-7, for example, targets customers investors, and stock analysts. Public relations ads are typically used to improve the company's relations with labor, government, customers, or suppliers.

When companies sponsor art events, programs on public television, or charitable activities, they frequently place public relations ads in other media to promote the programs and their sponsorship. These ads are designed to enhance the company's general community citizenship and to create public goodwill. The ad in Exhibit 18-8 promotes an art exhibit ant southwestern Bell's sponsorship role.

2.2 CORPORATE/INSTITUTIONAL ADVERTISING

In recent years the term corporate advertising has come to denote that broad area of nonproduct advertising used specifically to enhance a company's image and increase lagging awareness. The traditional term for this its institutional advertising.

Institutional or corporate ad campaigns may serve a variety of purposes - to report the company's accomplishments, to position the company competitively in the market, to reflect a change in corporate personality, to shore up stock prices, to improve employee morale, or to avoid a communications problem with agents, suppliers, dealers, or customers.

Companies and even professional advertising people have historically questioned, or simply misunderstood, the effectiveness of corporate advertising. Retailers, in particular, have clung to the idea that institutional advertising may be pretty or nice, but that it " doesn't make the cash register ring ". However, a series of marketing research studies sponsored by Time magazine and conducted by the Jankelovich, Kelly & White research firm offered dramatic evidence to the contrary.

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