Why Do We Do Advertising

Personal Selling is preferred, because it is so effective - but, it is expensive sometimes to contact EVERYBODY this way

Advertising is not as direct as Personal Selling, but you can reach a lot of people

Advertising in Canada has to be International

Our Canadian market is very multi-cultural Advertising in Canada has to acknowledge

the international aspects in order to be successful

A large part of the market in Toronto is NOT from the U.K. so we have to have advertising that can be understood by other people

Advertising Objectives are a Strategy Decision

Every ad should have clearly defined objectives

these objectives guide the people who create the ads

Nonpersonal selling of a particular Nonpersonal selling of a particular good or service.good or service.

- TV ads- TV ads

- billboards- billboards

- junk mail- junk mail

Product Advertising

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Institutional AdvertisingInstitutional Advertising

Also called Advocacy advertisingAlso called Advocacy advertising

See slide # 16See slide # 16

Competitive Advertising

Pioneering Advertising, also called Informative

“… “… tries to develop primary demand…”tries to develop primary demand…”

Done in the early stage of the Product Life Cycle.Done in the early stage of the Product Life Cycle.

Direct Indirect

Competitive Advertising

Tries to get you to take action now - buy the product Tries to get you to take action now - buy the product now. Immediate Buyingnow. Immediate Buying

Direct

Indirect

Tries to point out the advantages so if you think Tries to point out the advantages so if you think about this product later, you will buy their brandabout this product later, you will buy their brand

Advertising that makes direct comparisons Advertising that makes direct comparisons with competitive brands.with competitive brands.

Companies used to hesitate to do this, but now they Companies used to hesitate to do this, but now they do it freely.do it freely.

Sometimes it can backfire and cause the viewer to Sometimes it can backfire and cause the viewer to NOT want to buy the product - if the comparison is NOT want to buy the product - if the comparison is too harsh eg. Political advertising that is too nastytoo harsh eg. Political advertising that is too nasty

Comparative Advertising

Some countries do not allow Comparative Some countries do not allow Comparative Advertising.Advertising.

Other countries allow it,,, but,, you have to Other countries allow it,,, but,, you have to prove any statements you makeprove any statements you make

Comparative Advertising

Reminder Advertising

Done in the Maturity and Decline stage of the Done in the Maturity and Decline stage of the Product Life Cycle. You already know about the Product Life Cycle. You already know about the product - they want you to keep using it, even if new product - they want you to keep using it, even if new competitors come along.competitors come along.

These ads are usually “soft-sell” and try to be These ads are usually “soft-sell” and try to be entertaining.entertaining.

•Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Relationship between Advertising and the Product Life Cycle

Pioneering

Competitive

Comparative

Promoting a concept, idea, or Promoting a concept, idea, or philosophy, or the goodwill of an philosophy, or the goodwill of an industry, company, or organization.industry, company, or organization.

This is closely related to the PR program This is closely related to the PR program of the companyof the company

Institutional Advertising

Also called Advocacy advertising

Used often by Japanese conglomerates Used often by Japanese conglomerates that have many types of productsthat have many types of productseg.eg.

HitachiHitachi

SONYSONY

MitsubishiMitsubishi

Panasonic (Matsushita Electronics)Panasonic (Matsushita Electronics)

Institutional Advertising

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The sharing of advertising costs between the The sharing of advertising costs between the middlemen and retailer and the manufacturer. This middlemen and retailer and the manufacturer. This means they will co-operate to display sales means they will co-operate to display sales promotion material and share the costs of promotion material and share the costs of commercials and billboards etc.commercials and billboards etc.

Co-operative Advertising

Retail Advertising

Retail advertising is the advertising done by stores Retail advertising is the advertising done by stores that sell “stuff” directly to the consumers.that sell “stuff” directly to the consumers.