THE BUSINESS PLAN PROJECT
“I can hardly
wait for the
Check Out The Biggest Price
Drops In the Vultures™ Database
Sell Product or Service
Create a Want (Perceived Need)
Develop Brand Image
Establish Customer Relationship
Or Make you feel Bad about
Yourself … And the Only
Way to Feel Better is to…
BUY THE PRODUCT!
In 1971, Phil Knight was supplementing his modest income
from his fledgling Blue Ribbon Sports, Inc., by teaching an
accounting class at Portland State University. There he met
Carolyn Davidson, a graphic design student, who was
working on a drawing assignment in a hallway. Knight
offered to pay her a few bucks if she would do some design
work for his small company.
Up against a deadline, Knight picked
Davidson’s rendering of the Swoosh, telling
her, "I don't love it, but it will grow on me.”
Being fresh out of school and hungry for work,
Davidson billed $35 for the Swoosh design.
Advertising is only One Piece of the Mix
used to Communicate with Customers
A “PULL” Selling Strategy
requires high spending on
PUSH advertising and consumer
promotion to increase
A “PUSH” Promotional Strategy existing levels of consumer
makes use of a company's sales product demand
force and trade promotion
activities to create consumer If strategy is successful, Consumers
demand for a product will ask their Retailers for product,
Retailers will ask Wholesalers, and
Producer promotes the product to
Wholesalers will ask Producers
Wholesalers,Wholesalers promote it to
Retailers, and Retailers promote it to
CAN ADVERTISING BE ETHICAL?
Doesn’t Advertising try to
make you do something
you don’t have to do?
Doesn’t Advertising rely on Claims that
aren’t verifiable? How can it be
proven, before you buy a product, that
you’ll feel or look better?
Advertising: Some Thoughts
“Advertising may be described as the science of
arresting the human intelligence long enough to
get money from it.” ~Stephen Butler Leacock
“It is difficult to produce a television documentary that
is both incisive and probing when every twelve
minutes one is interrupted by twelve dancing
rabbits singing about toilet paper.” ~Rod Serling
“In general, my children refused to eat anything that
hadn't danced on TV.” ~Erma Bombeck
WHICH IS ETHICAL?
HERE’S THE WINNER!
Federal Trade Commission (FTC)
Regulates Advertisements and
Enforces Legal Requirement that
Advertising not be
UNFAIR or DECEPTIVE
Advertising is UNFAIR if:
Substantial Injury Might Result
No Benefits to Consumers or Competition
Advertising is DECEPTIVE if:
Misrepresentation or Material Omission
Misleading or Detrimental
SEE ANYTHING THAT’S UNFAIR?
Should Advertising target Users
(Children) or Purchasers (Parents)?
Is anyone being “substantially injured?”
Are Advertisers responsible for Fat Kids?
Will More Government Regulation Produce
IS THIS “FAIR” ADVERTISING?
Who benefits from
SEE ANYTHING MISLEADING?
Would a “Use at Your Risk” Disclosure fix any Problems?
WHAT’S REALLY BEING SOLD?
Is Underage or Irresponsible Drinking being
Encouraged? Should Advertisers be Concerned?
WHERE’S THE DECEPTION?
Would you feel “Deceived” if you knew
that less than 2% of the Ingredients in
Kraft’s Guacamole Dip are Avocadoes?
QUESTION: Do you really want to know
what’s the other 98%?
Food and Drug Administration (FDA)
1997: Regulates Content of Direct-to-Consumer
Prescription Drug Advertising (US and New Zealand)
PRO: Educate Consumers, Encourage Treatment
and Reduce Health Care Spending
CON: Promotes Unnecessary Costs (Generics
excluded) and Complex Information that may
"Kaiser Family Foundation
found that every dollar drug
companies spend on ads
brings more than four dollars
in additional sales.“
"16 million people expressly
medicines from their doctors
as a result of advertising"
Drug makers spent nearly $5 billion on direct-to-consumer advertising in
2006 and a 2004 study found that American TV viewers watch an
average of 30 hours of drug ads per year. (Nielsen Media Research)
Dr. Jarvik does not practice clinical
medicine; He does not treat
patients. Dr. Jarvik also does not
row; a body-double was used in the
QUESTION: Is Dr. Jarvik endorsing Lipitor as an
“Expert” or a “Celebrity?” Does it make a
difference? Is the Advertising “deceptive” if it
infers he’s something that he isn’t?
Advertising is “Protected Speech”