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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!
Advertising is only One Piece of the Mix
used to Communicate with Customers
Advertising
PULL
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
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
“PULL”
Advertising
“PUSH”
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
HELPFUL?
Advertising
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
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 won’t recover Lost Jobs
Different Mix of Spending Cuts and Taxes
is Better
Who’s the “Target Market?”
What are Key
Points of
“Message?”
Who’s the “Target Market?”
What are Key Points
of “Message?”