Docstoc

ADVERTISING

Document Sample
ADVERTISING Powered By Docstoc
					THE BUSINESS PLAN PROJECT




“I can hardly
  wait for the
  next Team
  Project…”
                                  MISFORTUNE
                                   PROVIDES
                                  OPPORTUNITY
                                         Chinese Proverb




 Check Out The Biggest Price
Drops In the Vultures™ Database
ADVERTISING
                         Advertising

WHY ADVERTISE?
   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
                                                            Advertising

                                                       PULL
                                            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
               Consumers
 “PULL”        “PUSH”
Advertising   Advertising
     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!
                         Advertising




Federal Trade Commission (FTC)
    Regulates Advertisements and
      Advertising Practices
    Enforces Legal Requirement that
      Advertising not be
       UNFAIR or DECEPTIVE
                               Advertising



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
                       Ethical Advertising?
IS THIS “FAIR” ADVERTISING?
Who benefits from
 saying Advertisers
         are “Child
        Predators?”
        Does this
       Advertising
    “Substantially
           Injure”
     Competition?
   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%?
                                      Advertising



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
    be Misleading
                                     Direct-to-Consumer
                                              Advertising
                                            "Kaiser Family Foundation
                                            found that every dollar drug
                                            companies spend on ads
                                            brings more than four dollars
                                            in additional sales.“
                                            "16 million people expressly
                                            requested prescription
                                            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)
EXPERT OR
CELEBRITY?


                          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
                                     advertisement.

   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?
 IS THIS
           Advertising
HELPFUL?
Advertising is “Protected Speech”
Advertising

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:14
posted:8/13/2012
language:English
pages:25