Download IEInstructorNotes

Chapter Sixteen
Interactive Exercise – Types of Advertising
Instructions for the Professor:
Overview:
The purpose of this drop and drag exercise is to illustrate examples of how the
different kinds of advertising might be executed. Six print ads are offered for
examination; students are asked to identify whether each ad illustrates an
example of pioneering, competitive, reminder or institutional advertising. Some
kinds of advertising will be used more than once.
Concept Review:
Institutional advertising is differentiated from the three forms of product
advertising in that a primary objective of the ad content is to promote goodwill
towards the organization or enhance the image of the corporation. Product
advertising, whether for goods or services, is typically organized into three
subtypes: pioneering advertising, competitive advertising, and reminder
advertising. The purpose of pioneering advertising is to stimulate interest and
demand for an entire product category. As the focus of this kind of advertising is
to promote the benefits and unique differences of a new product class, rather
than a specific brand, it is most effective in circumstances where competition is
non-existent or quite limited, such as during the introduction stage of the product
life cycle. When one or more competitors exist, pioneering advertising benefits
all brands within a product class or category, not just the brand responsible for
initiating the ad. Competitive advertising builds selective demand for a specific
brand by promoting a unique competitive advantage or a desired image for the
brand, and is typically used in the growth stage of the product life cycle (and
later) once competitors have entered a product class or category. The direct
type of competitive advertising aims for immediate buying action, perhaps
through the inclusion of coupons or the announcement of a short-term sale. The
indirect form of competitive advertising seeks to create favorable attitudes toward
the brand by promoting a certain image or creating awareness of particular
attributes and benefits, both of which may result in a future preference for the
brand and ultimately a sale. Reminder advertising is most common during the
maturity stage of the product life cycle when brand names and benefits are
already well known. The purpose of reminder advertising is to keep the top-ofthe-mind brand awareness high and to reinforce prior promotions and
advertising. Outdoor advertising and print ads featuring minimal copy are
frequently used methods of executing reminder advertising, though other media
can be used as well.
1
Using the Exercise:
Initial Screen:
1. This screen introduces the four kinds of advertising that are the
subject of the exercise.
 After the animation sequence ends, the professor clicks on the
rectangle with the pulsing question mark to begin the exercise.
 The exercise will automatically transition to the next screen
featuring a thumbnail of an ad.
Next Screen:
2. The screen pertaining to the selected ad appears.
 The professor reads the ad headline and body copy to the class.
 Clicking on the magnifying glass icon will enlarge the ad. Clicking
on the “+” sign located in the upper left-hand corner of the screen
will enlarge the ad even further, while clicking the “-“ sign will
reduce the ad to the size it was before being enlarged.
 Placing the cursor on top of the ad and holding down the right
mouse key while moving the mouse will allow the professor to
physically move the ad up, down, or to the side.
 When the class has had ample opportunity to examine the ad,
clicking within the magnified ad returns to the prior screen featuring
the kinds of advertising and a thumbnail of the ad that was just
enlarged.
The professor then challenges students to determine which kind of
advertising is best exemplified by the ad. The professor should
emphasize that while some ads may technically be classified in
more than one area (for example, competitive and reminder),
students should focus on the kind of advertising that seems to be
most descriptive of the ad.
 The professor clicks on the ad thumbnail in the middle of the screen
to activate it, and holding down the left-hand mouse button, drags
the ad on top of the oval pertaining to the student’s response.
When the ad thumbnail is correctly positioned on top of the
selected oval, the professor releases the mouse button.
If the wrong response is given, the sound of a crowd “booing” will
be heard, and the ad thumbnail will return to the middle of the
screen. For details related to right and wrong answers, refer to the
ANSWERS AND EXPLANATION section below.
The selection process is repeated until the correct answer is
chosen, and a cheering sound is heard. The ad thumbnail will
dissolve and disappear and the exercise will automatically transition
to the next screen as described in step 3.
2
Next Several Screens
3. The selection process described in step 2 is repeated until all
six ads have been investigated. Some kinds of advertising will
be used more than once.
Final Screen
4. The final screen will automatically display each of the four kinds
of advertising along with the ad thumbnails that exemplify each.
Clicking on any ad thumbnail will return to a blow-up of that ad.
Clicking anywhere within the ad blow-up will return to the final
screen.
5. The professor clicks the “X” icon in the upper right hand corner
of the screen to end the exercise.
Answers and Explanations
PEPSI-COLA SCREEN
Correct Answer: REMINDER
Some students may argue that this ad is an example of competitive
advertising. While its true that the ad promotes a specific brand, the lack of
any ad copy but the current campaign slogan, “The Joy of Cola” in
combination with the heavy visual element indicates that this ad is really
meant to reinforce other promotional elements, specifically the long-running
“Joy of Cola” television advertising campaign. Reminder advertising is
certainly appropriate for Pepsi, as the brand runs neck and neck with CocaCola for market share leadership and already enjoys a high level of brand
awareness and knowledge. Finally, pioneer advertising is obviously incorrect
as soft drinks represent a mature product category. Students who incorrectly
identify this ad as an example of institutional advertising may not understand
the corporate image vs. brand focus that distinguishes institutional advertising
from product advertising.
HYUNDAI AD
Correct Answer: COMPETITIVE
It is possible that students may be confused by this product ad and incorrectly
identify it as an example of institutional advertising. The instructor can point
out that while the warranty and roadside assistance program promoted in the
ad copy are common to all Hyundai brands, these features still represent
3
specific product attributes. Furthermore, the graphic pictured in the ad is
identified as a particular brand of car (Hyundai Sonata) complete with base
price. To enhance learning, the professor may wish to query students as to
whether the ad is comparative or non-comparative in nature. The ad is an
example of a comparative ad; Saturn, Honda, and Lexus are specifically
identified in the ad copy (though it could be debated whether or not Lexus is a
legitimate direct competitor of Hyundai).
GMEV ELECTRIC CAR
Correct Answer: PIONEERING
Students may be highly confused by this ad. Some may argue that it is an
example of reminder advertising, due to the limited amount of copy and the
media used (outdoor). Others may argue that it is an example of noncomparative competitive advertising. Actually, the ad is really best classified
as an example of pioneering advertising. The electric car is in its infancy with
respect to the product life cycle and a general lack of awareness and
knowledge exists; “reminder” advertising is not appropriate in these
circumstances. Furthermore, the focus of the ad copy is on the product class
– electric car – rather than on a specific brand; this fact indicates that the
intention of the ad is to build primary rather than secondary (brand specific)
demand. Finally, while the ad does not provide a great deal of information, it
is probably an example of a “teaser” ad that attempts to build curiosity and
interest for a more copy intensive print and TV campaign which may be
running either concurrently, or which is scheduled to follow soon.
GTE
Correct Answer: INSTITUTIONAL
The purpose of the ad is to generate favorable attitudes towards the GTE
Corporation among all stakeholders by promoting a reputation for the
organization that values individuality among various stakeholders. No
specific product or product line is featured in the advertisement. This form of
institutional ad is also known as the corporate image ad.
PENSKE
Correct Answer: COMPETITIVE
One purpose behind presenting this ad example is to emphasize that product
advertising is not restricted to physical goods. The ad is an excellent
example of competitive advertising as it lists a number of attributes and
benefits associated with outsourcing transportation via Penske. The ad is
non-comparative in nature. It may be beneficial to query students as to
4
whether the ad is an example of direct or indirect competitive advertising.
While a call to action (invitation to phone) is included in the ad, it is unlikely
that the ad itself will result in an immediate sale. Multiple sales meetings will
be necessary prior to a commitment being made; phoning for more
information is merely the first step in a multi-phase purchase process. If
students ask for an example of a competitive ad that is direct in nature, the
instructor might choose to show or cite a restaurant print ad containing
coupons, or an ad from the local newspaper that focuses on a special sale or
price promotion available only for a limited time.
SHELL
Correct Answer: INSTITUTIONAL
The Shell institutional ad is a specific example of corporate issue advertising.
In this case, the issue at hand is driving safety. Other examples of corporate
issue advertising include those targeting drunk driving (“Know When to Say
When”) and those that explain a company’s stance on controversial issues
(Apartheid, hiring practices, etc.).
5