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CH 3 Types of Advertising
CH 3 Types of Advertising
CH 3 Types of Advertising
Types of advertising.
INTRODUCTION
1. Scope of advertisingL
Advertising serves many purposes and many advértisers, from the individu¡l
who places a small classified advertisement in the local newspaper to the
big spender who uses networked TV tó sell poputar brands to the nations
millions. Anyone can be an advertiser'and advertising touches everyone.
Even some company newspapers contain sales and wants ads.
2. Types
It is possible to identify seven main categories of advertising, namely:
Consumer,
" business-to-business,
" trade,
" retail,
- -
" financial,
direçt response,.
" recruitrient.
Each cátegory is déscribed in detail below-(except.direct respònise, which is
discussed separátely in Chapter 9).
. It will be seen that each requires its own treatment in, creative presentation
and use of media, i.e. the twin skills described as thà 'heart of advertising'
(see,1: 29),
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ADVERTIsING
CONSUMER ADVERTISING
3. Different kinds
the general publlc, consumet goodg
There are two kinds of goods bought bywith.congunier servlces are..advertised
"and consumer durables, whlch. together
approprlate soclal grades. These four termg
media addressed to' the
through
now as they wll be usedfromtime ta.timé thrqughout
are best explained
this book.
BUSINESS-TO-BUSINESS ADVERTISING,
9. Purpose
( The purpose of business-to-business advertising is to' promote non-consumner
goods and services. These may. include raw materials, components and
accessories; plant and imachinery;, services such as insurance; office equip
ment and supplies.
Hardly any of these products and services will be bought by consumers,
except as replacements as when a car needs a new battery or týre_. Unless
çorsumers will be unaware of most of
the fommula or specification is stated,
Ehese products. parts
Many finished products are produced or assembled-from matérials, self
Few'manufacturers are
or components tad by numerous suppliers.
will coDsist of steel
sufficient,supplying everything themselves. A building and all the internal
work, cemént, glass, timber, bricks, roofing materials
furri_hings, together with special equipment such as escalators and services,
suppliers and subcontractors
e.g. water, gas and electrical systenis. Secondary main contractor or a
willbe involved, together with consltants, although afinal construction.
consortium of contractors will be responsible for the
TRADE ADVERTISING
12. Definitions
wholesalers, agents)
Trade advertising is addressed todistríbutors, chieflylarge
importers/exporters, and numerous kinds of retailers, and sS1mal. Goods
are. advertised for resale.
)
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3 TYPES OF ADVERTISTNG
RETAIL ADVERTISING
17, Introduction
consume
Here we have a form of advertising which lies between trade and
department store
advertising. The most obvious examples are those for conducted
d supermarkets, but it can inchude the adyertising by any
supplier including a petrol.station, restaurant or insurance broker
This will be dealt with separately in Chapter 9, but a major form a
setailing nowadays is direct response marketing or retailing without shop
traditio
Thus is today's mail-order tradng which has moved fromn the
club catalogues to sophisticated off-the-page and direct mail campaigns
products and services. Financial houses and department stores have beco
leading practitioners of these techuniques.
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3. TYPES OF,AOVERTTSING
18, Purpose
The purpgse of retail advertising is. threefold:
in the
(a) To sell the establishment, attrat customers to the premises andnumber
case of a shop,increase what is known as 'store traffiC, that is the
of people passing through the shop. IF they can be encouraged to step
inside they may possibly buy something which they would not otherwise
philosophy of Gordon Selfridge
be tempted to buy. This was the original his London store, or Jesse Boot
who encouraged people to enjoy a visit t¡ chemist's shops.
who laid out the goods for all to see on the counters of his
They were pioneers of inodem shopping.
retail distributors
(b) To sell goods which are exclusive to the store. Some
Others,such as
are appointed dealers for certain inakes, e.g. the Ford dealer manufacturers
supermàrkets, sell 'owi label' or 'private label' goods which
pack in the name of the retailer There are also small symbol group shops
which setl goods fromonewhotesater,scttas iace orSpar,.ancarry tBreir
brands which are advertised on behalf of the retailers.
Woolworths
Large department and variety stores such as Debenhams,products, e-g.
and Marks & Spencer have a special brand name for all their
Marks && Spencers St Michael brand.
Most of the chain stores such as Boots, Sainsbury and Tescq-sell many
brands.
own label lines. They will be cheaper thari and compete with national also sell
Thus Sainsbury and Tesco willhave their own baked beans but
Heinz..However, Nestlé, Kelloggs and aome other makers of farnous na
tional-brands make it very clear that they do not pack own label goods.
Competition between national arnd own label brands is intense, and there
favour of a
is always the risk that the national brandwill be de-listed in
store'sown label. About 31.5 per cent of grocery products are own or private
label in Britain according to AGB Superpanel &TCA, and as many as 50
per cent of Sainsbury's lines are oWn label.
Own label products are usually made to the retailer's own speciications
retailer's
er recipes, and arè not simply exi_ting national brands sold under a
label at a chaper price. Sometimes, because the retailer is negotiating a
speçial price, it is an inferior product. For exnple, the baked beans are
sometimes in watery sauce compared with the.national brand in nch tonato
sauce. There are some manufacturers which are 'contract packers',-e.g- jam
makers, who supply own labels only.
This is a very old systern which dates back to the corner shop family
grocer who existed long before the arrival Df chaini stores like Boots or the
supérmarkets which emerged after the Second World War.
Accordirig to AGB Superpanel, the largest private label 'share by, value
are paper goods (43.6 per cent), frozen foods (42.4 per cent), dairy products
(41.0per cent), bakery products (35.0 per cent), beverages (35.0 per cent).
41.
bu_ineSses sellng a Variety Or goo ha cotectioners,.
tobacconists and newsagents shop. Others will be speciality shops sellino
say, flowers, photographic goods, meat, ish, fuit andIvegetables, orselling,.
goods. Then there are the niche shops which sell, say, socks, ties orfashion
shi
Mixed retailing has also become popular whereby a speciality shopshirts.
may
sellcomplementary lines as when a butcher sells.canned yegetables, o:a
fish and chip shop sells soft, drinks. The latest development has been the
general'store, often open 24 hours a day, at the petrol station, and BP, Shell
Esso and other petrol di_tributors have spent fortunes rebuilding their service
stations to include such shops.
Al these retail outlets are likely to use advertising to promote sale of
their stock.
(c) To sellthe stock in the shop, perhapspromoting items whích are seasonal,
or presenting arepresentative selection,or making special offers. The latter
toatt beTeguBar poliey, or could be organised as shopping events such as
winter or summer sales.
20. Special_characteristics
Retail adyertising is characterised by föur main aspects:
d creating an image of the shop:
establishing its location,
" variety ar special kind of gaods offered
competitive price offers.
Nearly always, the object of the advertising is to persuade people to visit
the shop, although telephone ordering and the u_e of credit accounts andt
credit cards isa growing feature. Many stors have developed postal sales,
but these realy come under the heading of direct response marketing (see
Chapter 9), the modern name for mail order advertising (whether "off-the
page' with press advertising, or by direct mail). Increasingly, many larger
stores are using the Internet.
FINANCIAL ADVERTISING
22. Introduction
It is probably difficslt to put a limit on what can be contained under this
heading, but broadly speaking fnancial advertising includes that forbanks,
Savings, mortgages, insurance and investments. In addition to advertising
addressed to custeAerS Or elients it can a'so include company reparts, pro
spectuses for new share issues, rcords of investrments in securities and
other financial announcements.
Some, like building society and National Savings advertiserñents, nay be
addressed' to the general public while others will appear in the financial
and business press only, e.g. the Financial Timas, The Eçonomist or the Inves
tors Chronicle. It is interesting that whiletrade and technical
magazine_ may
be scarce in developing countries thére is often a business or fin¡ncial weekly,
sometimes distinguished by pink paper for which th British Financil Times
is-famous.
23. Purposè
The object of financial.advertising may be.to borrow.or lend money, con
duct allkinds of insurance, sell shares, unit trusts, bonds and pensien funds
or report fnaneia results.
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AOVERTISING
Ciinternational
oditudadure-ord-compartcansbcoasd-BanTdnycar,
American Express and Dinera' Club, promota plastic money faclltles, oflen
on an
scale.
(i) Local þorrow mohey from the publlc, uBLally on
authorities
loans which aare advertised.
() Companis ahnóhnce their intenttonsand-inal- djvidenda,
agvinghort-term
maries of annyal reports, and often ofering coples of ahnual reports su-
and
accounts,
RECRUITMENT ADVERTISING
27. Introdktion
This form of advertising aims to recruit staff (including personnel for the
police, armed forces and other public services) and may consist_ofrun-on
classified advertisements or displayed classifiéd. Other media such as radio
and television are sometimesused. Before recession and mass unemployment
oCcurred, recruitment advèrtising hadbecome an important source of rev
enue for the mdia and there were many. specialist recruitment advertising
agencies or divisions of advertising agencies devoted'to handling.this kind
of advertising. Famious-enes-ike Austin Kaight Adyetising have súrvived.
Today, recruitment advertising mákes good.use of'smaller 'circulation
newspapers. AB (middle and lower middle-class) redèrships such as the
Guardian and the Independent recruit highly skilled, specialist, sales, market
the week when
ing, mariagerial or 'èxecutivestaff. There are certain days ofprofessions
recruitnent adverisemernts.appear for particular tradés or such
as accointancy, computers or teaching..