ADVERTISING

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ADVERTISING
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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!

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Advertising is only One Piece of the Mix used to
Communicate with Customers
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Advertising
PULL A PULL Selling Strategy requires high
spending on advertising and consumer promotion to
increase existing levels of consumer product
demand If strategy is successful, Consumers
will ask their Retailers for product, Retailers
will ask Wholesalers, and Wholesalers will ask
Producers
PUSH A PUSH Promotional Strategy makes use of a
company's sales force and trade promotion
activities to create consumer demand for a
product Producer promotes the product to
Wholesalers, Wholesalers promote it to Retailers,
and Retailers promote it to Consumers
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PUSH Advertising
PULL Advertising
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CAN ADVERTISING BE ETHICAL?

• Doesnt Advertising try to make you do something
  you dont have to do?

Doesnt Advertising rely on Claims that arent
verifiable? How can it be proven, before you buy
a product, that youll feel or look better?
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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

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• WHICH IS ETHICAL?

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• HERES THE WINNER!

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Advertising

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

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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

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• SEE ANYTHING THATS 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?
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• IS THIS FAIR ADVERTISING?

Who benefits from saying Advertisers are Child
Predators?
Does this Advertising Substantially Injure
Competition?
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• SEE ANYTHING MISLEADING?

Would a Use at Your Risk Disclosure fix any
Problems?
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• WHATS REALLY BEING SOLD?

Is Underage or Irresponsible Drinking being
Encouraged? Should Advertisers be Concerned?
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• WHERES THE DECEPTION?

Would you feel Deceived if you knew that less
than 2 of the Ingredients in Krafts Guacamole
Dip are Avocadoes? QUESTION Do you really
want to know whats the other 98?
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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

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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)
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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 hes something that he isnt?
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Advertising
IS THIS HELPFUL?
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JANUARY 26 ELECTION CAMPAIGN
Referendum (Re-vote) on Two Tax Measures passed
by Oregon Legislature
Measure 66 Increases Income Taxes for Top 2 of
Taxpayers
Measure 67 Increases Minimum Tax (10 to 150)
and Tax Rate for Corporations netting more than
250,000
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JANUARY 26 ELECTION CAMPAIGN

• VOTE YES
• Health Care, Public Safety and Schools need Money
  
• Minimum Tax is Paltry and Most Corporations
  based out-of-state

• VOTE NO
• Raising Taxes wont recover Lost Jobs
• Different Mix of Spending Cuts and Taxes is Better

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Whos the Target Market?
What are Key Points of Message?
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Whos the Target Market?
What are Key Points of Message?