Week 15 Introduction to Marketing and ADvertising

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Week 15 Lecture 1
Defining Advertising/Marketing;
Advertising Methods
• Marketing is critical to business, and thus to
any capitalist society:
•
• Kotler, Keller, Brady,Goodman and Hansen
(2009) “other business functions will not
really matter if companies do not
understand consumer needs and identify
sufficient demand for their products and
services for them to make money.”
Marketing versus Advertising
• Advertising is PART OF Marketing
• Advertisement: A public, persuasive message on
behalf of a product or brand.
• Marketing: The systematic planning of a mix of
business activities on behalf of a product or brand
– This includes advertising, but also
– Public Relations
– Brand management
• Developing packaging
• A logo,
• etc
“Marketing Mix: “Four P’s” of
Marketing
1960 – Jerome McCarthy described the four
P’s” of marketing
“Marketing Mix: “Four P’s” of
Marketing
• The Product: What ( physical thing or
service* is being sold?
• Price: How much does it cost
• Place: Where Do I Get It?
• Promotion: How will I know about it?
The Augmented Product (other
services provided, eg a warranty,
or a different color option)
The Actual Product (The
Actual Car)
The Core Product (being
able to drive places)
Review
• Our relationship with ads
are different depending on
whether we encounter it
in:
• PRIMARY MEDIA: We pay
close attention (TV,
magazine)
• SECONDARY MEDIA: “On
in the background” radio,
or TV while we are doing
other things.
• Radio ads, knowing you might be doing
other things (ironing, driving, vacuuming)
might be quite repetative and basic
• TV ads might try to draw you into “a story”
– Not always. This ad ran on late night TV in the
US:
http://www.youtube.com/watch?v=Is3icfcbmb
s
Like the “head on” ad, early ads
Focused on the Product…
1657 Coffee Ad
• From London
• But contemporary advertising is all about
the brand.
• With industrial revolution, we live in a
society with plenty of products available to
us that we must choose between.
• Why choose one cereal over another?
Businesses must convince us through
marketing.
Brand
•
•
•
•
Brand is central to the “actual product”
A Dictionary of Business and Management (Law, 2009) defines a brand as:“A
name, sign or symbol used to identify items or services of the seller(s) and to
differentiate them from goods of competitors.”
But in addition, brand adds value
A product is worth what the consumer will pay
– Studies show that consumers will pay more for the branded product
– Google “off-brand cereal” people will go on and on about how it tastes different when
more often then not it comes from the same factory.
Pears Soap
• 19C advertising
• Shows importance of branding and that
• Techniques have not changed significanttly
over time.
• The campaign is about images and associations
rather than specific information about the
products themselves.
• Use of children
• Use of male expert (remember rhetorical
fallacies!)
Advertising vs. Art – “Bubbles”
• Dear Sir John Millais!
...I get inwardly wrathful whenever I think of your "Bubbles" in the hands of Pears
a soap-advertisement! Gods of Olympus! – I have seen and loved the original pictu
– the most exquisite and dainty child ever dreamed up, with the air of a baby Poet
well as of a small angel – and I look upon all Pears' "posters", as gross libels both o
your work and you! [...] "Bubbles" should hang beside Sir Joshua's "Age of Innocen
in the National Gallery where the poor people could go and see it with the
veneration that befits all great art. (Corelli, "To John Millais", 24 Dec. 1895)
• Product makers were already using brands
and recognizably modern ad techniques
• But only between the wars did advertising
really become a profession in itself.
Professionalization of Advertising: The
Agency
• John Powers (19371919) Considered the
first “ad writer”.
• “Powers style” short and
to the point
• 1902, First ad agency,
“Calkins and Holden”
opens in New York. They
are famous for hiring
professional artists and
designers.
• Claude Hopkins
was another ad
pioneer
• Developed
campaign for
Pepsodent
toothpaste
– “discovery” of
plaque
• Wrote “Scientific
Advertising”, that
is, advertisers
should always test
their ads and try
to measure the
results in terms of
sales.
Many product
based ads
focus on a:
DIRECT
BENEFIT:
Removes
plaque
INDIRECT
BENEFIT:
Attractiveness,
social success
• This ad demonstrate “Means End” theory of
marketing.
• Reynolds, Gangler and others say we all
share a vision of our “ideal lives”
• The trick is to make the produce seem a
means to that end.
• Toothpaste becomes a means to being our
most beautiful and attractive self
1950s-Present
Advertising industry fully professionalized
David Ogilvy is the archetype
created clean, powerful ads
Famous for the “Hathaway shirt” ad “the
man with the eye patch
• Create a story around the product.
•
•
•
•
• …or, not just
shirts, but mystery
and glamour
• Small budget
($30,000).
• But Hathaway
Shirts promised to
let Ogilvy do what
he wanted – no
“changes” to the
ad.
• “Story appeal”
• The copy, the guy’s eye patch, all suggest
that there is a reality outside of the ad itself,
a story we want to know.
Levitt, Marketing Myopia
• Ogilvy’s famous ad can be understood as an example
of customer orientation - rather than product
orientation
• 1960 article by Theadore Levitt
• Companies must avoid defining themselves too
narrowly
• Companies need to be customer oriented not
product oriented
• Railroad Industry
– Defined their product as RAILROADS
– Should have defined their product as
TRANSPORTATION
• Hollywood was threatened by invention
of TV
– Suffered because they were PRODUCT
ORIENTED (making movies)
– Instead of customer oriented (making
Entertainment
They saved themselves by expanding into
distribution, etc
Homage to
Ogilvy
Dos Equis
“Most
interesting man
in the world”
http://www.yo
utube.com/wat
ch?v=UVQjUus2JA&NR=1
Brand Personality …Your Personality
• Advertising seeks to create a link between
the “brand personality” and yours.
• “Brand personality” encourages the
consumer to identify aspects of their “best
self” with a brand
• Coke (1971)
http://www.youtube.com/watch?v=wRbQy-FxTg
Brand
Personality
– symbolic,
emotional
Product
Related
attributes –
practical,
utilitarian
Aaker’s Five Brand Personality
Dimensions
• Sincerity (Clean and Clear
http://www.youtube.com/watch?v=AETKvKZ8
h0k )
• Excitement – Nestle
(http://www.youtube.com/watch?v=NoHkpb5
XeMw )
• Competence
• Sophistication
• Ruggedness (Chevy – “Like a Rock”
http://www.youtube.com/watch?v=eKY9V_Uf
Break
• Merchants of Cool
• http://www.pbs.org/wgbh/pages/frontline
/shows/cool/view/?utm_campaign=search
page&utm_medium=videosearch&utm_sour
ce=videosearch
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