As we begin to examine how advertising works and how we may best make it work for us, it's important that we first view in proper perspective this marketing activity that has been going for so many centuries. Let's look at advertising in the past, at the part it has played historically in our lives. Advertising has changed, as we have changed. If you had been a young Roman soldier in the occupation army in Gaul, spending an afternoon at the chariot races at the stadium at Names, you would have been exposed to advertising.
If you, in your former life, were a tall straight-nosed Grecian beauty strolling the streets of Corinth, with your market basket on your ears would have assailed by the cries of street vendors broad calling their wares for sale. On walls and buildings you would have read advertisements of a wide variety of products and, most likely, there would have been some "lost – and – found" notices too.
Because the notices on Roman walls often began with the Latin words si quis (If anyone) as in 'If anyone has information', or, "If anyone wishes to obtain", for many centuries afterward any poster advertisement in England or in America was known as a siqui?
The Advertising Broker
It was in this time of the growing attractiveness of periodicals to the national advertiser that the modern advertising agency had its beginning. Brokers purchased space from publications at whole sale rates, and resold space to the advertiser at whatever markup the cold demand.
In a larger sense, however, the agency's chief service in this early period was to promote the general use of advertising, and to aid in discovering cheaper and more effective ways of marketing goods.
The shift from "advertising broker" to "advertising agent" was very important; the emphasis had been changed from working for the interests of the publication to serving the interests of the advertiser. Thus today all of the advertising agency's services are directed toward helping the advertiser achieve his marketing goals.
Advertising Grows up
In the fist decades of the 20th century, advertising underwent two marked and significant changes. The first was the recognition by advertising of its responsibilities to society and business. This recognition of responsibility was evidenced by the formation of numerous organizations whose goals were the improvement in the effectiveness of advertising and control over its taste and honesty.
The second significant development in the early 1900s was the emergence of the nation and regional advertising agency in much the same forms as we recognize it today. Advertising agencies are tightly geared just to provide the advertiser with all those services that will enable him to invest his advertising dollars most effectively.
The New Face of Advertising
The third development in modern advertising, and perhaps the most interesting and significant of all, occurred in the first decades of the last century. Their ingenuity, imagination, and restless curiosity changed the face of advertising. It changed from something that was basically a 'notice' or a simply an attention-caller, to a logical, carefully thought-out selling tool fully integrated with the marketing strategy.
The Marketplace and What Happens in it
There're as many definition of marketing as there are authors of textbooks on the subject. Let's look at a couple of them:
Richard R. Still and Edward W. Cundiff call it "the business process by which products are matched with markets and through which transfers of owner ship are affected".
William J. Stanton calls marketing "a total system of interacting business activities designed to plan , price, promote , and distribute want-satisfying products and services to present and potential customers" (more precise definition).
The American Marketing Association defines marketing as being made up of 'the performance of business activities that direct the flow of goods and services from producer to consumer or user'.
This is a simple explanation of what happens. The key phrases are: 'from producer to consumer ', and 'the flow of goods'.
This is the fate of every product as it makes its way from the manufacturer's loading platform to its final destination – into your hands. A great many things happen to it.
Advertising is one of the things that happen. These forces all work together.
The quality, appearance, and performance of the product.
How much it costs.
Where you can buy it.
The promotional efforts, including advertising, that help to sell it.
Sometimes advertising can be very important. For another product, distribution may be the vital force.
The Consumer and Why He Acts the Way He Does
The 'image makers' are all around us, and they are not confined to advertising. Publicists and press agents, retained by individuals, are paid to develop or change images. The Hollywood drum – beaters have in the past created 'sex kittens' out of some very ordinary country girls.
People, through their own efforts or the efforts of others, can reflect a certain image. Business can also fix a certain place for them in the public regard. To many large companies the 'corporate image' is very important and carefully protected. Sometimes a company must fight to overcome an industry image. This is about corporate images for big companies. Does this apply to a smaller businessman? It certainly does. When a local retailer institutes a policy of 'return the merchandise and your money refunded with no questions asked', the seller is saying to the consumer, "I'm the kind of strait, honest guy you can trust me". For example, a jeweler in a small town who appears on TV every now and then, talks about his merchandise. He is talking about them with pride and affection and knowledge. There's absolutely nothing professional about his accent or his delivery. Honest jeweler with whom you'd like to do a business.
Trade Marks, Labels, and Logotypes
To help remember who isdoing the talking, companies and products have ways of branding themselves just as a rancher brands a calf so that he can distinguish it from other ranchers' calves.
The 'brands' fall into different categories:
Brand names: Usually this is a mad – up name which should be unique and memorable. Copywriters often spend hours thinking up new names for products. Some well – known trade names are Exxon, Teflon, and Maybelline.
Symbols: These are literally 'brands' which could be reproduced in iron and burned into surface.
Names: To help keep its name memorable.
Logotypes: You will usually find these at the base of the advertisement, and often they are a combination of the company name, a symbol, and slogan if they have one.
Labels: By means of color and design, labels brand a family of products, such as Campbell Soup, Maxwell House Coffee.
Trade characters: The symbol can be a human or a cartoon character.
Layout design: Sometimes a brand will immediately identify itself by the design of its advertising layout.
Slogans: These are catchy, memorable lines that put a 'handle' on the company. For example Coca Cola's "It's the real thing" or "You can be sure if it's Wasting House".
It's important to be very careful while thinking up a brand name for a product. Many brand names have been thought up, registered, and never used. All slogans, symbols, names, and so on, must be 'searched'.
The Different Kinds of Advertising
Advertising people recognize a number of different kinds of forms of advertising. They are differentiated from one another according to the different jobs they are designed to do. Now let's take a look at these different kinds of advertising, and we will fix in our minds the role they play in the marketing process.
Institutional or Corporate Advertising
This often projects an image of the company. It's just as important for a company to have a good character and a good reputation as it is for individual business person, and for exactly for the same reasons. Your name has a great deal to do with the consumer – buying decision. The fact is, all companies have characters and personalities of their own, and those characteristics affect their relationship with buyers and sellers alike.
Trade or Professional Advertising
Ordinarily you don't see trade or professional advertising unless you pick up a publication directed to a particular trade or a profession. There're a great many of these publications, and manufacturers fill them with advertising addressed to retailers. The messages to the retailer are very different from those addressed to the consumers. In trade advertising, the manufacturer tells the retailer what he can do for him in terms of the marketing mix – new, attractive products, money – making volume, and profit spreads, ingenious distribution plans, and exciting promotional programs.
You see and hear retail advertising every day. Without it, most newspapers and radio stations would not be able to exist. And our television station might find itself somewhat pressed. In most cities of any size, department store advertising represents an important source of income for newspapers.
Promotional Retail Advertising
At Christmas, at back – to – school time, and at many other times during the year, we can see a special kind of retail advertising. This is advertising that does not directly advertise the products, but advertises the promotion of a product or group of products. If a famous author is going to sign autographs at the book store, or if a chef is going to give omelet cooking lessons in the kitchen – wares section of the department store, every effort must be made to let as many people as possible know about the event. Often store promotions are sponsored by manufacturers. A cosmetic manufacturer may make a 'beauty consultant' available. A manufacturer of women's sports car may provide a traveling fashion show. If so, the supplier often pays for all or part of the promotion.
Industrial advertising is simply advertising directed to a customer who happens to be an industry. Most people are not particularly conscious of industrial advertising because they have little occasion to see the publications in which it appears. But there's hardly an industry we might think of – from steel to coal, or from perfume to fishing – that doesn't have its own 'trade book' devoted to the interests of the industry. Some of the businesses that advertise in a publication directed to the fishing industry are: boat builders, rope makers, engine manufacturers, makers of depth – sounding equipment, marine hardware manufacturers, paint manufacturers, and publishers of nautical charts and books.