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

• 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?

“Marketing Mix: “Four P’s” of Marketing

THE PRODUCT HAS 3 LEVELS

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=Is3icfcbmbs

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 as a soap-advertisement! Gods of Olympus! – I have seen and loved the original picture, – the most exquisite and dainty child ever dreamed up, with the air of a baby Poet as well as of a small angel – and I look upon all Pears' "posters", as gross libels both of your work and you! [...] "Bubbles" should hang beside Sir Joshua's "Age of Innocence" 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 (1937-1919) 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.youtube.com/watch?v=UVQjUu-s2JA&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=wRbQ-y-FxTg

Aaker’s Five Brand Personality Dimensions

• Sincerity (Clean and Clear http://www.youtube.com/watch?v=AETKvKZ8h0k )

• Excitement – Nestle (http://www.youtube.com/watch?v=NoHkpb5XeMw )

• Competence• Sophistication• Ruggedness (Chevy – “Like a Rock”

http://www.youtube.com/watch?v=eKY9V_UfdCM )

Break

• Merchants of Cool • http://www.pbs.org/wgbh/pages/frontline

/shows/cool/view/?utm_campaign=searchpage&utm_medium=videosearch&utm_source=videosearch