Adam Flynn

MKT 229 - Principles of Advertising

             12:30 pm
                                      Company Overview

       AT&T is a major communication company that is used throughout the USA and world.

Within this company many citizens and businesses rely on this company as way to stay

connected through wireless connection to stay in touch with clients and families around the

world. Within this corporation, they focus on they focus on providing local, long distance and

wireless communication. They provide everyone with their different needs and wants; rather it is

in house calling using wireline or on the go wireless connection which can be used around the

world. They do not limit their service within the USA; instead they branch out and give citizens

the opportunity to stay connected globally (EBSCO Host, 2009).

       Throughout the last three years, AT&T has been very busy in mergers and signing multi-

year commitments with major internet sources to globalize their products even more. The

mergers all began in December 2006 when BellSouth agreed to merge with AT&T which in turn

increased the growth of the corporation because it now gave AT&T complete control over

AT&T Mobility (Cingular Wireless) and This merger was very big for

AT&T because they now controlled all their wireless needs and received publication through a

major phone and citizen search tool (yellow pages). This all became finalized on May of 2007

when AT&T made a huge brand name change by changing all their owned Cingular stores

around the nation to AT&T. This was a huge step for AT&T as they finally were able to convert

all the Cingular retail stores over from their merger with BellSouth (LexisNexis Academic ).

Then, two years later in January 2008, AT&T made a big multi-year commitment with the major

internet search tool, “Yahoo!” in hopes to advertise their products while being recognized with a

major internet search engine. Lastly, a couple months later AT&T joined the, “Trans-Pacific

Express”, which is a submarine cable network that links Japan, China, Korea, Taiwan, and the
US which increases communication of the USA with other countries and corporations around the

world. This is just another step that AT&T has made in becoming a global communication

corporation; rather than just limiting its business within the USA (EBSCO Host, 2009).

                                          Situational Analysis

       AT&T is a major communication network that keeps people connected. Within this

company I have chosen to focus on the “Wireless” aspect and showcase its ability to connect

people around the world through voice and internet. Within this wireless aspect of the

corporation, AT&T focus on giving their customers the opportunity to not be limited to a certain

area of access, instead they broaden their communication not only nationally, but globally which

gives them the upper hand with major corporations who have clients and sister companies

outside the USA. Within this wireless branch, consumers will be able to experience the speed of

the 3G network which is the fastest communication available on a phone. Within the 3G

network, consumers can experience the luxury of high speed internet on their phone that will

allow them to surf the web, download music, use email, and play games. Basically, AT&T

offers the consumer the opportunity to not only contain a phone, but a small computer at the

same time. Two popular products within the 3G network are the IPHONE from apple, which

contains numerous applications and the new Blackberry bold which is popular for the upper-

class businessman. AT&T is big on advertising its global opportunities by showcasing ads

containing backgrounds/ designs of cultures (like Japan; showcasing a hand holding a phone

with Japanese art on the hand, with a subtitle saying, “Works in over 200 countries, like Japan”)

to get the viewer attracted to the ad and give away their message of a global communication

       Also, within this company, AT&T offers several different telecommunication services

besides the wireless portion. Within these services, they offer; Internet, Home phone, bundles

and Yellow pages. In the internet portion, they offer either dial-up or DSL high-speed

connection. Then, in the home phone services, they offer the options of local, national calling

which will cost a flat rate, or they offer a worldwide plan that costs more, but allows you more

area of calling. Also, they have a bundle service which includes home phone and high speed

internet all in one. This bundle allows one payment, instead of having to pay a phone and

internet bill. Then lastly, they offer yellow pages which allow the consumer the opportunity to

search for a huge array of contacts (at&t).

       Age and income is a huge area of study when it comes to an ad campaign. Within

AT&T, they have a target market of citizens in the 18-35 year old range because they know that

most kids won’t be able to afford a cell phone plan because of the monthly payments. This range

is also true because AT&T focuses a lot on corporate America and producing technology that

can fit the on-the-go theme of business. They allow their products to do for the consumer what

they could have done in the office. It gives the consumer the opportunity to get out of the office

to meet clients and not worry about being connected or missing emails or important information.

The only down side is that cell phone plans can be pricy, that is why AT&T targets the business

working world you can afford the monthly cost of a cell phone.

       According to VALS II, AT&T wireless consumers fit into the achievers and actualizes

categories. This is true because an achiever is someone who wants premium products, with a

variety and someone who has a business mind. This is a fit for the AT&T wireless branch

because they can offer the variety and premium brands to fit their busy business lifestyle. They

offer many different plans and cell phones to fit these citizens’ needs. They give them options
and support towards their lifestyle. This is why it is important to target this group because

AT&T can support several different phones with several different plans. This is also true for

actualizes because they want finer, new products and technology to keep up with the trends of

the world. AT&T is a perfect fit for them because they can offer the 3G network on the

Blackberry and IPHONE which will give them the chance to have the newest technology and

phones to fit the trends. The consumer can keep up with the changing environment and feel as

though they are at the top when it comes to fashion of technology.

               In terms of the Retail Consumer Markets of AT&T, they target both the

conservative and classic group. Within the conservative group, they make their decisions based

on need rather than impulse. So, by targeting the business world, which is ever changing and

looking for the highest level of technology to give them the maximum communication

opportunities, they find the conservatives who will buy their products in the business world

because they will see the opportunities of the products and service and feel as though it is a

needed purchase for their company. Then, the classic group represents a group that are the most

responsive to service. They appreciation comfort through always getting what they need. This is

a good group to market to because AT&T offers a great communication technology that will

meet their needs of connection and allow them the option to increase from the essentials, and

upgrade to the 3G network on the newest lines of phones.

               A competitor to AT&T would be Verizon Wireless. Verizon wireless is another

major communication company that offers similar products to AT&T. Some of these products

include similar plans like nationwide calling or phones like the Blackberry storm that offer

internet access and email. Also, they are a competitor because they offer free calling within any

person that also is a subscriber to the version “IN” network and within this network they have the
saying “can you hear me now?”, which showcases them in all their commercials in off the wall

location, showing that no matter what, they still stayed connected. This is a big competitor to

AT&T because they are both trying to reach the same target market and attack consumers who

need the freedom of wireless access wherever they go.

                               Development of Creative Strategy

       AT&T has several different branches of their communication company that they spend a

lot of time on advertising. But, the most noticeable and popular area of concern for AT&T is the

way they showcase their wireless connection. They like to let the consumers know right away

what they are trying to showcase and do so by straight forward, clearly stated ads with graphic

designs. For example, in the 2007-2008 year, they spent a lot of their advertising technique on

showcasing their ability to have wireless connection not only in the USA, but around the world.

Within these ads they use three types of ads to get the reader’s attention and get her technology

options across. In the first set of ads they will focus on showcasing culture of countries around

the world to support their global wireless network. This is done by creating ads with a

background that fills the page (leaving no white space) with pennies that form a design of the

culture they are trying to showcase. For example, in one of these ads they use the pennies to

form the famous clock tour in England. This is an effective ad because the pennies give off a

bright gold shimmer that attracts the viewer’s eyes to the ad and allow them to see the design that

is made (realizing that it is London, England) and read the headline, “Call England now for just

pennies”. At this point the reader is in the ad and has a straight forward idea of what AT&T is

offering. The reader will now then go to the subtitle (“Wireless calls from the U.S. to England

8cent/ minute”) and be given full detail of the ad and what AT&T is offering.
       In the second style of ad, AT&T likes to stay on the same idea of mixing culture with

their popular cell phones. For example, in one of their magazine ads in “Newsweek”, there is a

picture of a person’s hand that is painted to showcase designs of a Japanese woman and as the

design goes further down the persons arm, the painting acts as though she is wearing a traditional

Japanese dress. Also, the thumb of the hand is pointed out and on the thumb is the new

blackberry Smartphone. This is a creative ad idea that attracts the eyes of a passing viewer

because they see the multiple bright colors on the hand, and then their eyes switch from the

painting to the phone resting on the thumb. Eventually, this will cause the viewer to read the

headline, “Works in over 200 countries, like Japan” and make since of the ad. This is an

effective ad because of the bright colors (red, black, yellow, etc.) blended together in a graphic

design to grab the reader’s attention and then the phone showcases their new technology that

goes along with the global network. This ad does contain some white space, but I feel as though

the white space makes the ad more known and allow the graphic design to be more distinct and

stand out to the viewers eyes more. The white background with a tint of pink allowed the

graphic hand design to stand out to the viewer’s eyes and make the viewer read the information

about the global connection.

       Lastly, the third ad type used is to showcase the 3G network that goes along with the

global connection. Within this type of ad, AT&T showcases the “speed” of the 3G network by

showing their new Blackberry Smartphone crashing through glass (showing speed to break

through anything). This aspect is effective because the black background, with the shattered

glass with the phone coming out of it really attracts the viewers eyes and allows them to see the

ad and be interested in what it has to offer. Once the viewer is attracted to the ad by the color

and clutter of shattered glass, the eyes then switch to the headline saying, “The fast Blackberry
ever, On the nation’s fastest 3G network” and the viewer now understands what is going on in

the ad. Then, lastly the viewers eyes will switch down to the subtitles which describe the aspects

of the 3G speed and the coverage that it has within over 200 countries.

       In the 2007/2008 ad campaign for AT&T wireless, the corporation used a couple

different advertising objectives. These advertising objectives include; informative advertising,

persuasive advertising, and reminder advertising. Within informative advertising, ones company

will want to make sure that they are producing ad campaigns that are letting the market know

about a new product or service, suggest new ways to use the product or service or build an image

through explaining how the product or service can be useful to the market. AT&T wireless does

a good job at using informative advertising by showcasing ads that have their new service

promotion of global service, as well as tying in the new 3G Blackberry phone that has all the

capabilities of wireless technology including internet and email.

       Also, AT&T wireless will use persuasive advertising as a technique to attract the market.

This is not used as much as some of the other objectives, but it is still used in their ads. They

use things like promoting greater service around the nation and world with the fast technology as

a way to attract the eye of the consumer to them rather than have the consumer go to a

competitor like Verizon. By showcasing more possibilities with their phone and service area,

they attract consumer’s eyes because they see no restrictions when they travel out of country for

pleasure or business, as well as enjoying the 3G speed technology (which is the fast technology

for wireless in present day).

       Finally, AT&T uses reminder advertising to sell their campaign. Within the reminder

advertising they constantly put out ads that promote the 3G technology and greater nation and
global service. They do this by showcasing ads that are the same. They switch up the style of

their ads through color and theme, but at the same time are giving off the same message. They

will give off the same message through the design and graphics of the ads, as well as displaying

the same headlines and subtitles to reassure the consumer about what they are promoting within

the wireless network.

         Lastly, AT&T uses the execution style of lifestyle and mood and image to promote their

ad campaigns. They use lifestyle in their ads by placing the setting of their ads in the target

market they are trying to reach. For example, when they showcase their ability to connect you to

India for only pennies a minute, they create an ad that forms the shape of Indian architecture

through the uses of pennies. This is effective because the consumer knows exactly what is being

advertised and it goes right at a particular target market that is trying to be reached.

       Also, they use mood and image as a tactic for ads to get the attention of the consumer.

An example of this is when they create an ad that displays their new Blackberry crashing through

a glass wall. This showcases the speed of the 3G network that goes along with it and shows the

consumer that nothing can stand in the way of the speed that the 3G offers. This stands out to a

consumer because it is loud and attracts the eye and at the same time it hits another execution

style of humor because it’s an odd, but exciting ad that makes you laugh and smile at the image

being portrayed.
                                        Media Objectives

       The main media vehicle used within the AT&T wireless campaign is Magazines. This is

true because AT&T believes that by expressing color and graphics they can attract more

customers. They also can reach out to their target market greater because they can place ads in

magazines with a business/ everyday magazine, to reach corporate America and the middleclass

citizen. The main magazines that I found contained the most ads were Newsweek and Time

Magazine. AT&T places the majority of their ads in these magazines because they want to

attract the everyday middleclass American as well as reach out to the upperclassmen of corporate

America. These magazines focus on the issues and news of today, as well as connecting with the

technological advancements of the world. This is why these magazines are a popular advertising

choice for AT&T because they can showcase their ability to use the 3G network, allowing

endless possibilities of their phone.

       Within the magazine, Newsweek; they will charge the corporation $226,590 for a four

color 1 page ad. Also, the frequency of this magazine is based on monthly bases so the reach of

this magazine and the ads it contains is pretty high considering that one will be confident that

over 20 million people a year will see this magazine which means that it has a circulation of

2,701,893. Then, the CPM will calculate out to be 83.86. Then, in Time Magazine, the

corporation will be charged $182,095 for a four color 1 page ad. The Frequency of this

magazine is also on monthly bases meaning that the reach is high because it is a popular

magazine for educational purposes of what’s going on in the world. The circulation of this

magazine is 1,638,140 which means that the CPM calculates to be 111.16 (SRDS Media

Solutions, 2008).
       Both of these magazines have a lot in common. They both represent educational

structure to the world by keeping up with the issues of the nation and world. Within both of

these, I found that AT&T would have numerous ads that ranged from the beginning, middle, and

end of the magazine. They did not just have an ad either in the front or back. Instead, they used

a reminder advertising technique by consistently putting ads all throughout the issue. This is

effective because the brand keeps being seen by the reader and eventually after seeing a brand

and ads multiple times, one will stop and examine the campaign to see. It is a curiosity factor

that everyone has; it’s normal to skip over something, but after seeing it over and over,

eventually you will stop out of frustration and wonder to see for yourself why this brand keeps

popping up.

       Also, besides the use of magazines, AT&T uses a lot of commercials to get their message

across. Within these commercials they like to really elaborate on the speed and availability that

their phones give to the consumer. For example, AT&T produced a commercial where a family

goes to a beach in Spain and does not realize it’s a nude beach until they get there because they

were not able to call their friend back home who told them about the spot and get the right

directions. The ad is humorous shows the viewer that with AT&T you would not make this

mistake of going to a provocative spot like this with your young children because AT&T is

global and you could receive signal bars while away in another country. The ad shows the

capabilities of the wireless network where ever you go and shows that you should not feel

restricted to go anywhere because of the lack of service. With AT&T you will not need to worry

about this, because they represent the greatest global communication of any company.

       AT&T does do some sales promotion as a way to promote their products. Some of these

sales promotions include giving away free cell phones if one signs on with AT&T for a two year
deal. One of these promotion examples is if a consumer signs on as an individual or multiple

family members sign up for a two year contract, then they will receive a free cell phone for each

of the members on the plan. Now, they will not receive the top of line apple phone with the 3G

network, but they will be given a broad selection of phones from Motorola, Pantech, Sony,

Nokia, Samsung and LG. This is a good sales promotion because the actual retail price of most

of these phones is up in the $100 to $200 range. So, by offering to give these phones away for

free with the deal of signing a 2-yr contract, attracts more buyers to the company and will

eventually increase the amount of people that become part of the AT&T network (at&t).

       Another sales promotion that was used by AT&T was during the 2008 Olympics when

they created a thing called, “the blue room”. This was a website

( that allowed U.S. citizens the opportunity to view some of the

American athletes (especially the gymnasts) as they trained and prepared for the Olympic

Games. Also, this site allowed the U.S. citizens the opportunity to follow alongside their

favorite athletes as they competed and they could keep up with all their competitions. This was

good because the Olympics are the biggest global event and AT&T was a sponsor of the USA

team. This allowed their brand name to be put out there a lot and be recognized as a reliable,

always there for you company. Lastly, within these Olympic Games, AT&T was the official

telecommunications service for the USA team while they competed in Beijing. This also helped

their image and campaign because they really exert their ability to connect more people around

the world than any other communication company (at&t).
                                        Financial Overview

       Over the last three years, AT&T has done very well in terms of sales. Each year AT&T

has increased its sales. The biggest increase being from the 2006 to the 2007 year. Within these

sales; in 2006 their sales were $63,055,000. Then, in 2007 their sales increased to $118,928,000

and finally increased to $124,028,000 in 2008 (Hoovers).


       After finishing all my research, it is clear to me that there are no records of pre-testing or

post-testing being done within the company.

       It seems to be that AT&T uses Market Penetration and Product development as its way of

focus. This is true because AT&T will take it same products and promote them to the same

market in hopes to reach that market even more. This is true because they target business

America and they constantly focus on showcasing ways that their phones and wireless plans can

fit the needs of all types of business; rather it be a corporation or a private/ small business. They

also use product development because they constantly creating new products that they are

promote to the target market of businessmen and women. Within this, they are producing new

products like the IPHONE and Blackberry Bold that contain the 3G speed which can be a perfect

fit for corporate America. By coming out with new products, with new technology, they can

market to the same target group because corporate America is forever changing, so by staying up

with their change, AT&T can further their sales and reputation as a reliable communication


AT&T inc. Business Source Complete. Shapiro Library. Retrieved April 2009


At& Retrieved April 2009

AT&T. LexisNexis Academic Shapiro Library. Retrieved April 2009

AT&T. (from Shapiro Library). Retrieved April 2009

AT&T. SRDS Media Solutions ( Shapiro Library. Retrieved April 2009

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