Discussion #3: Brand Loyalty–Brand and Price–Some examples
Hello Everyone!
For shaving cream I buy Barbasol.
For diet soda I buy Big K at Kroger because it is cheaper than Coke.
For peanut butter and bread I buy Kroger’s cheapest.
Kroger has a value brand category that is the cheapest.
For breakfast cereal I buy the Kroger brand for corn flakes and fruity rice crisps.
For batteries I buy Ravovac because they are the cheapest.
I usually do not buy a national brand because they are usually the most expensive and you can invariably find a product of equal or greater quality and much lower price.
Compare Kroger prices with those of the national brands and you will see what I mean.
You can get a box of saltine crackers for less than $1 or pay nearly $2 for a national brand name. I buy the Kroger discount value brand for this as well.
I just noticed this new discussion topic after I posted the one due at 5.
Raymond
Unit 6–Part 2-Careers in Advertising
How To Get A Job In Advertising
Matryoshka Dolls with Olga & Dema
“When you are appointed to head an office in the Ogilvy & Mather chain, I send you one of these Russian dolls. Inside the smallest you will find this message: ‘If each of us hires people who are smaller than we are, we shall become a company of dwarfs, but if each of us hires people who are bigger than we are, Ogilvy & Mather will become a company of giants.’:
~David Ogilvy, Ogilvy On Advertising, page 46.
A conversation about advertising, with David Ogilvy
David Ogilvy interviewed by John Crichton in 1977. Realized by the American Association of Advertising Agencies AAAA. David is seen as the “pope of advertising”. This is the complete interview version.
While in the past I have never considered a career in advertising, I recently read the late David Ogilvy’s books, Confessions of An Advertising Man and Ogilvy On Advertising to learn more about career opportunities in advertising and advertising agencies.
I highly recommend reading both books for any one interested in a career in advertising or mass communications and for business owners and executives interested in growing their businesses.
David Ogilvy started his own advertising agency in 1948.
Today Ogilvy & Mather is one of the top ten marketing communication firms worldwide and employs over 15,000 people in 450 offices around the world with a tradition for training and developing their talent. Ogilvy & Mather is part of the WPP family of companies.
Ogilvy & Mather
http://www.ogilvy.com/Careers.aspx
According to Ogilvy advertising offers four different career paths:
-
You can join a television network, a radio station, a magazine or a newspaper and sell time or space to advertisers and their agencies.
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You can join a retailer like Sears Roebeck, and work as a copywriter, art director or advertising manager.
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You can join a manufacturing company like Procter & Gamble, and work as a brand manager.
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You can join an advertising agency.
Source: Ogilvy On Advertising, page 31.
I would most likely pursue the career path of working for a leading advertising agency such as the following:
All of the above advertising agencies are owned by British marketing giant WPP http://www.wpp.com/wpp/companies/
Since I live in Dallas, Texas I would also be interested in working for a local Dallas advertising agency such as the Richards Group http://www.richards.com/index.html# or the local Dallas office of ReachLocal http://reachlocal33-px.rtrk.com/ .
There are several jobs in advertising agencies including the following:
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Account executive
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Art director
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Copywriter
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Creative director
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Media director
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Researcher/Analyst
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Program Director
Actual job or position descriptions from the Ogilvy & Mather web site are provided at the end of this essay.
With over twenty years of experience in the financial services industry, sales, and running my own firm, the positions that most interested me are account executive, copywriter, researcher/analyst and program director.
An account executive or in earlier times the contact man is responsible for representing the agency to the client and getting the best possible work from the various agency departments for the client.
A copywriter is responsible for writing interesting prose for print media and dialogue for broadcast media ( television and radio).
Media director is responsible for all aspects of client’s media services.
A researcher/analyst conducts surveys, writes reports and provides answer to questions.
Market research is information on the market, competition, prospects, distribution and pricing.
Advertising research is information directly related to an advertising campaign including the development, pretesting, and evaluation of the actual advertising campaign or materials.
A program director is responsible for assembling and managing teams to deliver work.
Since I do not know anybody that works in an advertising agency to interview, I decided to first interview Marshall Siegel, the Advertising Advisor for Richland College, School of Human & Academic Development, who has over thirty-seven experience in advertising with a trade magazine publisher where he had numerous positions in all departments except media.
Marshall Siegel is a graduate of the University of Missouri, School of Journalism. After college, his first job was with the Chicago Tribune, formerly self-styled as the “World’s Greatest Newspaper” (for which WGN radio and television is named). When the Korean War broke out, he was called up by the U.S. Army and served in Korea as a private first class. Siegel subsequently joined the Army Reserves and retired years latter as a Major.
After completing his active duty military service, he returned to the Chicago Tribune. At the time he was paid only $35 per week and decided for financial reasons to take a higher paying position selling advertising space for a firm that publishes trade magazines.
After thirty-seven years with the trade magazine publishing company, the company was sold to a British firm for forty million dollars in cash.
Siegal retired soon thereafter when the British firm wanted one of their executives to manage the company.
Siegel now assists students at Richland College as an advertising and writing coach and as Advertising Advisor to Richland College. When advertisers want to post their ads on the Richland College campus, he is the person you go to get your ad approved and stamped. Place you ads only on cement walls and be sure to take them down after two weeks!
He loves owning and driving Porsches and carries photos of his “babies” in his wallet.
Siegel recommended that with my financial services and sales background I approach an advertising agency about selling advertising of financial publications to prospects and clients of the advertising agency.
He suggested I go to the main library in Plano or Dallas and look up the names of the agencies that I was interested in working for in the Advertising Red Books to determine who the advertising agency’s clients were.
“…The Advertising Redbooks Standard Directory of Advertising Agencies January Edition (S11) 2010
Each Volume 1 Advertisers $ 1495.00 AS LISTED TO BE ORDERED FROM THIS SECTION
Each Volume II AGENCIES $1495.00
CD-ROM; CONTAINS Both These Volumes is $1995.00
PLEASE CALL AT 905 946 9588 OR EMAIL US at sales@ippbooks.com
The Advertising Redbooks’ defines useful agency-to-advertiser relationships for prospecting and competitive intelligence research. …”
http://www.ippbooks.com/store/advertising-red-book-advertising-agencies-of-the-usa.html
Siegel also recommended that I obtain for selected financial publications their advertising rates from the SDRS directory at the library:
“…”For 90 years, SRDS has built and maintained the largest and most comprehensive database of media rates and data in the world, including:
-Magazines
-Newspapers
-Television & Radio Stations
-Online Sites
-Out-of-Home Venues
-Direct Marketing Lists …”
http://www.wpp.com/wpp/companies/companydetail.htm?id=532
WPP acquired SDRS in 2009.
SRDS Portal
http://www.srds.com/portal/servlet/LoginServlet
Siegel also recommended that I send a letter or e-mail to the founder or head of the advertising agency expressing by interest in working for his agency.
I indicated that I was more interested in a creative position in advertising such as copywriter for I write every day on a blog and have published over sixty videos on YouTube http://www.youtube.com/user/raymondpronk and designed and developed a number of web sites on famous artists
The one agency in Dallas that most impresses me is the Richards Group founded by Stan Richards.
2010 JA Dallas Business Hall of Fame Laureate – Stan Richards
I still remember participating in a focus group one evening for The Richards Group.
A group of individuals in the financial services were there to review the advertising and marketing materials for a financial services client of The Richards Group.
I will be reading his book next:
Another firm that interests me is ReachLocal that is relatively new and has just opened an office in Dallas.
ReachLocal has a unique system that gets prospects for advertisers.
ReachLocal Vision
ReachLocal Promo – What We Do
ReachLocal Promo – How It Works
How It Works: The ReachLocal Platform
Job Descriptions
From Actual Job Open Positions At Ogilvy & Mather
Account Executive
“…Responsibilities:
- Responsible for the smooth week-by week running of the account and the effective management of all Client projects
- Develops positive, proactive relationships with Client and Agency team creating a stimulating environment within which the best work can develop
- Begins to develop people management skills by coaching and developing their reports and by demonstrating an ability to effectively delegate both up and down.
- As the Account Executive moves towards promotion to Account Supervisor he/she will begin to show leadership and drive in thinking of innovative solutions to business/strategic problems and in merchandising the Agency’s services
- Understands challenges facing Client’s business in the short-term
- Makes it their business to know all aspects of competitive activity
- Develops an understanding of the motivations/behaviour patterns of consumers in the marketplace by attending focus groups/ quantitative debriefs, store visits etc.
- Goes to lengths to gain a thorough understanding of all aspects of the brand – from reading reports, visiting factories/stores and talking to sales force to using/experiencing the product/service
- Supports planners in developing ideas and stimulus for research
- Actively contributes to discussions on strategy and advertising development
- Works with Account Director and Planner to develop inspirational briefings for Creatives
- Keeps in regular contact with Creatives during development of ideas, keeping them supplied with any useful stimulus and helping to ensure they remain motivated and enthusiastic
- Keeps Client involved in the development process to build their confidence and enable them to buy braver ideas.
- Has mastered a range of presentation techniques and works with the Account Director to identify the most appropriate and inspiring way to present and sell each piece of creative work
- Be a sound judge of creative work, able to coherently argue the case for or against creative work based on the brief and factual accuracy, both internally and with the Client …”
Art Director
“…Responsibilities:
- Generate original concepts in partnership with copywriter
- Manage multiple deadlines/projects
- Present creative to senior management, account teams and clients
- Be a brand expert and steward for clients and Ogilvy
- Cast (or assist with casting) talent for TV/radio/photo shoots and attend production/editing
- Liaise with production companies, photographers, typographers, designers and printers
Copywriter
“…Responsibilities:
- Generate original concepts in partnership with art director
- Write strategically sound headlines and body copy for digital, print and broadcast deliverables
- Manage multiple deadlines/projects
- Present creative to clients
- Keep breast of cultural and industry trends
- Become a brand expert and steward for both clients and Ogilvy
- Cast (or assist with casting) actors for TV/radio/photo shoots and attend production/editing
- Liaise with production companies, photographers, typographers, designers and printers
http://careers.ogilvy.com/private/myjobs/openjob_outside.jsp?a=3jdo4jjibi1r49wrf9pgq9n9b2pvqyz45f4wjbysqnrh3rk24g6avteuh5ueleox0&from=COMP&id=2325396&SearchString=Copywriter&StatesString=
Media Director
“…Responsibilities:
- Oversight on all aspects of client’s media services
- Responsible for overall media objectives and strategies that fulfill client business objectives
- Lead creation of all important plans and presentations
- Demonstrate thought leadership and innovation for enhanced media plans and results
- Foster cross-agency relationships with account, production, and outside partners
- Train, motivate & develop Media Supervisors, Media Planners, Assistant Media Planners
http://careers.ogilvy.com/private/myjobs/openjob_outside.jsp?a=3jdo4jjibi1r49wrf9pgq9n9b2pvqyz45f4wjbysqnrh3rk24g6avteuh5ueleox0&from=COMP&id=2280700&SearchString=Media+Director&StatesString=
Researcher/Analyst
“…Responsibilities
•Assist senior analytic staff with various analytic projects for experiential , shopper, and promotional campaigns
•Retrieve raw data gathered from field or market activities and synthesize it into usable forms for account team usage
•Join multiple sources of data into one, normalized dataset
•Provide analysis beyond reporting basic facts, such as regression, cluster and factor analysis, and simple tests for statistical significance
•Maintain library of analytics case studies used to develop industry benchmarks
•Produce analytics reports from both custom and template designs
•Manage time spent against multiple projects, ensuring deadlines are maintained and met
•Assist in writing of reports
•Some client-facing responsibilities …:
Program Director
“…Responsibilities:
- Will work primarily on the digital side of the business, including such projects as:
- Tutorials
- New product launches
- Various TWC.com site initiatives
- TWC online Applications
- Scoping new projects and recognizing changes to current scope
- Should be familiar with key disciplines and their processes for delivering work (IA, Creative, Content Strategy, Project Management, Strategy, Engineering, Usability, etc.)
- Working with other disciplines (especially digital project management) to assemble and manage teams to deliver work
- Project plan development and risk planning
- Reviewing actuals to track profitability of projects and course correct if necessary
- Day-to-day client contact and advisement
- Presentation writing and presenting skills, meeting facilitation skills …”
“The biggest problem which besets almost every agency is the problem of producing good campaigns. Copywriters, art directors, and television producers are easily come by, but the number of men who can preside over an agency’s entire creative output – perhaps a hundred new campaigns every year – can be numbered on the fingers of one hand. These rare trumpeter swans must be capable of inspiring a motley crew of writers and artists; they must be sure-footed judges of campaigns for a wide range of different products; they must be good presenters; and they must have a colossal appetite for midnight oil.”
- ~David Ogilvy, Confessions of an Advertising Man, 1971, New York:
David Ogilvy made it very clear what he wanted when he advertised for a Creative Director for Ogilvy & Mather International:
Trumpeter Swans
In my experience, there are five kinds of Creative Director:
1. Sound on strategy, dull on execution.
2.Good managers who don’t make waves…and don’t produce brilliant campaigns either.
3. Duds.
4. The genius who is a lousy leader.
5. TRUMPETER SWANS
who combine personal genius with inspiring leadership.
We have an opening for one of these rare birds in one of our offices overseas.
Write in inviolable secrecy to me,
David Ogilvy, Touffou, 86300 Bonnes, France.
Signed David Ogilvy
~Source: Ogilvy On Advertising, page 48
Ultimate Animal Dads: Trumpeter Swans
http://www.youtube.com/watch?v=OnqkfglZI2Q&feature=related
The Trumpeter Swan
A Trumpeter Swan looking for a new career opportunity with an advertising agency.
Background Information
The Pope of Modern Advertising – David Ogilvy
http://www.hulu.com/watch/46488/the-david-susskind-show-the-pope-of-modern-advertising—david-ogilvy
David Ogilvy: We Sell or Else
David MacKenzie Ogilvy
“…David MacKenzie Ogilvy, CBE, (June 23, 1911–July 21, 1999), was a notable advertising executive. He has often been called “The Father of Advertising.” In 1962, Time called him “the most sought-after wizard in today’s advertising industry.” [1] He was known for a career of expanding the bounds of both creativity and morality in advertising. …”
“…The Ogilvy & Mather years (1949–1973)
After working as a chef, researcher, and farmer, Ogilvy started his agency with the backing of Mather and Crowther, the London agency being run by his elder brother, Francis, which later acquired another London agency, S. H. Benson. The new agency in New York was called Ogilvy, Benson, and Mather. David Ogilvy had just $6,000 in his account when he started the agency. He writes in Confessions of an Advertising Man that initially, he struggled to get clients. Ogilvy also admitted (referring to the pioneer of British advertising Bobby Bevan, the chairman of Benson) “I was in awe of him but Bevan never took notice of me!” They would meet later, however.[3]
Ogilvy & Mather was built on David Ogilvy’s principles, in particular, that the function of advertising is to sell and that successful advertising for any product is based on information about its consumer.
His entry into the company of giants started with several iconic advertising campaigns:
“The man in the Hathaway shirt” with his aristocratic eye patch which used Baron George Wrangell as model; “The man from Schweppes is here” introduced Commander Edward Whitehead, the elegant bearded Brit, bringing Schweppes (and “Schweppervesence”) to the U.S.; a famous headline in the automobile business, “At 60 miles an hour the loudest noise in this new Rolls-Royce comes from the electric clock”; “Pablo Casals is coming home – to Puerto Rico”, a campaign which Ogilvy said helped change the image of a country, and was his proudest achievement.
One of his greatest successes was “Only Dove is one-quarter moisturizing cream”. This campaign helped Dove become the top selling soap in the U.S.
Ogilvy believed that the best way to get new clients was to do notable work for his existing clients. Success in his early campaigns helped Ogilvy get big clients such as Rolls-Royce and Shell. New clients followed and Ogilvy’s company grew quickly.
In 1973 Ogilvy retired as Chairman of Ogilvy & Mather and moved to Touffou, his estate in France. While no longer involved in the agency’s day-to-day operations, he stayed in touch with the company. His correspondence so dramatically increased the volume of mail handled in the nearby town of Bonnes that the post office was reclassified at a higher status and the postmaster’s salary raised.
Ogilvy & Mather linked with H.H.D Europe in 1972. …”
http://en.wikipedia.org/wiki/David_Ogilvy_(businessman)
Russia-Matryoshka doll class
SRDS sale gives WPP an unfair advantage
“…This affects the direct marketing industry because SRDS provides a research system that is used for making mailing list purchasing decisions and formulating media plans. List managers use SRDS to promote their lists. List brokers and mailers use SRDS to make list selections.
WPP Group is a huge advertising agency holding company with an estimated 100,000 employees and £6.18 billion revenue in 2007. A big part of WPP’s revenue is commissions from media purchases done by their stable of advertising agencies. It’s a good strategy for WPP to buy SRDS because it will give them better insight into media purchases that happen outside of WPP. They can use SRDS’ database to better calculate their market share and to develop laser-focused strategies to acquire the share they don’t already own.
If I were a list broker, I’d be really nervous about this.
After all, list brokers compete with WPP agencies for their commissions (i.e. their livelihood). If WPP owns their list research system, it would provide WPP with powerful insights that enable them to steal the business away from list brokers and move those commissions to WPP agencies.
Imagine if your competitor could see all your research and proposals before you publish them. They would eat your lunch! …”
http://blog.nextmark.com/2008/11/srds-sale-gives-wpp-an-unfair-advantage.html
The Richards Group
“…The Richards Group is an American advertising agency. It is the largest independently owned agency in the country.[citation needed]
Based in Dallas, Texas, The Richards Group reports annual billings approaching $1.25 billion. Memorable work includes the iconic Chick-fil-A Cows (“Eat Mor Chikin”)[1], the Motel 6 campaign featuring Tom Bodett, and the dialogue-free Corona Beer TV commercials set on tropical beaches.
Major clients include Baby Magic[2], Fruit of the Loom, Home Depot, Sub-Zero/Wolf, and Zales. The agency handles advertising, public relations, and promotions for dozens of clients nationwide, in addition to sports/entertainment marketing for colleges and universities.
In the 3rd quarter of 2009, PODS signed The Richards Group as their creative agency.[3]
The Richards Group is associated by common ownership with Houston advertising agency Richards/Carlberg
http://en.wikipedia.org/wiki/The_Richards_Group
Trumpet of the swan – Ogilvy & Mather Chairman and CEO Rochelle Lazarus
“…In 1994, IBM stunned the marketing world by consolidating its $500 million advertising account, parceled among 40 agencies, into just one. It was the largest account switch ever and at its center was Shelley Lazarus, then the president and COO of WPP Group’s Ogilvy & Mather Worldwide.
Named chief executive last fall, on April 30 Lazarus inherited the chairman’s baton from Charlotte Beers, the 61-year-old dynamic Texan who became the first female chief executive in O&M’s history in 1992. Heading the $7.6 billion agency that legendary adman David Ogilvy founded in 1948, whose clients include Duracell, Ford, Kimberly Clark, Shell Oil, Jaguar, Sears Roebuck, Eastman Kodak, and American Express, makes Lazarus the most powerful woman in advertising – not bad for someone who couldn’t find work 25 years ago.
“Other agencies wouldn’t hire me, claiming they didn’t want to alienate the wives of account executives with whom I’d have to work late,” Lazarus recalls. But O&M took her on in 1971 as an assistant and a few years later – when she was six months pregnant – named her its first female account executive. With the exception of a hiatus in 1974 to follow her husband on a two-year posting at a Dayton, OH, Air Force base and care for their newborn, she has spent virtually her entire career at O&M. On returning to New York, she rejoined the firm and was soon running O&M Direct, the unit responsible for “junk mail.” Considered “off-the-path” at the time, Lazarus found direct marketing “a specialty with enormous profit potential,” and parlayed the job into a launch pad for posts as president of the New York office and president of Ogilvy North America. …”
http://findarticles.com/p/articles/mi_m4070/is_n124/ai_19694503/
Read Full Post | Make a Comment ( 1 so far )Unit 5, Part 1–Ethics in Advertising
Unit 5 ASSIGNMENT & FINAL- ADVERTISING
- Attached Files
Advertising case summaries.pdf (52.018 KB)- Fallacies 10 common.doc (20 KB)
Advertising students:
Fortunately I investigated both Presidential candidates on their positions on many issues and by September noticed a fairly consistent pattern of deception and lying on the part of candidate Barack Obama.
This pattern only continues and has gotten much worse.
Many of those who voted for Barack Obama are now experiencing what in sales is called buyer’s remorse.
The sheer hypocrisy and deception are so palpable that even his supporters on the left are commenting upon it.
Once you lie or deceive a customer, it is very difficult, if not impossible for them to ever trust you again and buy your products and services.
More and more Americans are waking up to the fact that voting for Obama was a one big awfull mistake America.
No amount of political campaign advertisements will be able to overcome this basic lack of trust.
The American people do not like to be lied to and mislead.
Even the best advertising campaign cannot re-elect or sell damaged goods.
The following videos document the broken promises of Barack Obama on transparency and the influence of special interest and their Washington lobbyists in his administration:
Obama Already Breaking Promises On No Lobbyists In Administration
Major Garrett reports on the Obama Administrations transparency and lobbyist regulations
Cavuto Blasts Obama’s Transparency Claims: “People Have Had It With Phonies!”
Jack Cafferty Rips Obama on Failed Openness Pledge: ‘Just Another Lie Told for Political Expediency’
Obama Speech Followed By Lobbyist Visit?
Barack Obama on Lobbyists and His Campaign
THE GREAT DECEIVER
Many politicians are underestimating the impact that web sites such as YouTube are having with the voters.
Any politician’s position on an issue can be easily checked by using Google and YouTube to read and to view what a candidate stated position on an issue is.
A comparison of what was said during a political campaign can be compared with their actions once elected and in office.
Background Information
Former lobbyists in senior Obama administration positions
By: Timothy P. Carney
Examiner Columnist
February 2, 2010
“…Although Barack Obama promised lobbyists would not serve in his White House, and issued executive orders restricting former lobbyists, more than 40 ex-lobbyists now populate top jobs in the Obama administration, including three Cabinet secretaries, the Director of Central Intelligence, and many senior White House officials.
Below is our working list of ex-lobbyists in the Obama administration:
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Read more at the Washington Examiner: http://www.washingtonexaminer.com/politics/Former-lobbyists-in-senior-Obama-administration-positions-83362902.html#ixzz0vlR3rVDt
Secondly, find 5 samples of ads that correlate with one of the top 10 fallacies in advertising (attached sheet):
The 10 most frequently used fallacies are
1. Ad hominem (meaning “against the person”)—attacks the person and not the issue
2. Appeal to emotions—manipulates people’s emotions in order to get their attention away from an important issue
3. Bandwagon—creates the impression that everybody is doing it and so should you
4. False dilemma—limits the possible choices to avoid consideration of another choice
5. Appeal to the people—uses the views of the majority as a persuasive device
6. Scare tactic—creates fear in people as evidence to support a claim
7. False cause—wrongly assumes a cause and effect relationship
8. Hasty generalization (or jumping to conclusions)—draws a conclusion about a population based on a small sample
9. Red herring—presents an irrelevant topic to divert attention away from the original issue
10. Traditional wisdom—uses the logic that the way things used to be is better than they are now, ignoring any problems of the past
An example of a false cause fallacy of assuming a cause and effect relationship between robots dropping an auto part and everybody obsessed with quality including the robot:
GM Robot Super Bowl Commercial
An example of an appeal to emotions in order to get your attention away from an important issue that you are watching too much television on both a television set and computer:
Hulu Alec Baldwin Commercial
An example of a false dilemma fallacy that limits choices between a silly breakfast and a serious breakfast:
Denny’s – Serious Breakfast
An example of a hasty generalization that if you use E*TRADE you will have a diversified investment portfolio.
NEW E*TRADE Baby – Girlfriend
An example of ad hominem fallacy political attack ad of Jon Corzine targeted against Chris Christie who is overweight. Chris Christie won the election and is now Governor of New Jersey.
Jon Corzine – If
An example of a bandwagon fallacy ad of every day should feel this good provided you eat Quaker oats high fiber hot cereal breakfast.
1992 TV Commercial: Wilford Brimley Quaker Oats
An classic example of a scare tactic to create fear that you better use one company’s computer then another company’s computer.
1984 Apple Commercial
Background Information
Huckabee Weighs In On Corzine’s “Fat Attack” On Christie
Corzine: ‘Probably A Good Idea’ To Not Say Christie ‘Threw His Weight Around
1992 TV Commercial: Wilford Brimley Quaker Oats
Unit 3, Part II, Assignment 3b, Part 2
Assignment #3b, Part 2
The Campaign: Create a mock Wal*Mart advertising campaign.
Read:
http://ezinearticles.com/?Advertising—How-to-Find-Your-Target-Audience&id=2385285
2. Review the platforms of advertising available from Unit 2.
3. Estimate the cost of each ad placement:
NOTE** this is a crisis response campaign. Soon we will be doing a new product campaign.
Part 2 is due Tuesday, July 27 at 5 p.m.
1. Identify the Wal*Mart Brand.
Walmart has several brands but the most important is Great Value which is used primarily for grocery items.
Walmart has expanded its private store brand to over 5,200 items in over 100 product categories.
The Walmart Great Value brand is now the largest grocery brand in the world.
Pictured below are some examples of the Walmart Great Value private store brand of grocery items:
Wal-Mart CMO Defends Private-Label Expansion
WalMart switching to cheap generic items due to economy? Great Value brand
Background Information
“…The retailer’s Great Value brand, first introduced in 1993, spans more than 100 categories and is the country’s largest food brand in both sales and volume.
With a strong focus on better quality, Walmart worked with several hundred suppliers and product testing facilities to:
- Test more than 5,250 products against leading national brands to ensure Great Value quality is equal to or better;
- Conduct more than 2,700 consumer tests to compare the flavor, aroma, texture, color, and appearance of Great Value products against leading national brands;
- Change the formulas for 750 items including: breakfast cereal, cookies, yogurt, laundry detergent, and paper towels; and
- Introduce more than 80 new products, such as: thin crust pizza, fat free caramel swirl ice cream, strawberry yogurt, organic cage-free eggs, double stuffed sandwich cookies, teriyaki beef jerky and more, all at unbeatable prices….”
- “…According to new consumer data from GfK Custom Research North America, 75 percent of shoppers, say the “current economic conditions” are playing a big role in their decision whether to purchase national or grocery store brands. Additionally, three out of 10 consumers in the study say they are now “buying more store brand products” compared to a year ago, and more than 77 percent of respondents “agree” that the store brands they buy “are as good as, if not better than, national brand products.”
“…According to new consumer data from GfK Custom Research North America, 75 percent of shoppers, say the “current economic conditions” are playing a big role in their decision whether to purchase national or grocery store brands. Additionally, three out of 10 consumers in the study say they are now “buying more store brand products” compared to a year ago, and more than 77 percent of respondents “agree” that the store brands they buy “are as good as, if not better than, national brand products.” …”
“…Walmart operates Walmart discount stores, supercenters, Neighborhood Markets and Sam’s Club locations in the United States. The Company operates in Argentina, Brazil, Canada, Chile, China, Costa Rica, El Salvador, Guatemala, Honduras, India, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom. The Company’s securities are listed on the New York Stock Exchange under the symbol WMT. More information about Walmart can be found by visiting http://www.walmartstores.com. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com. ..”
http://walmartstores.com/pressroom/news/9028.aspx
2.Target Audience
The primary target audience are current Walmart shoppers who may buy a few or no national brands but are currently purchasing the Walmart Great Value private label mainly due to the significantly lower price compared to the national brands.
The secondary target audience is current Walmart shoppers who also have the discretionary income to purchase national brands at Walmart and usually do so and might consider switching to the Great Value brand.
The tertiary target audience for the advertisements are consumers who either never shop or only rarely shop at Walmart but who have the discretionary income to purchase and usually purchase both national brand names and value brands from Walmart competitors such as Kroger and Target.
3. Review the platforms of advertising available from Unit 2.
The advertising platforms considered for the advertising campaign include the following:
Direct Mail
Advantages: High audience selectivity, flexibility, no ad competition with the same medium, allows personalization.
Limitations: Relatively high cost per exposure, “junk mail” image
Newspapers
Advantages: Flexibility, timeliness, good local market coverages, broad acceptability, high believability.
Limitations: Short life, poor reproduction quality, small pass-along audience.
Magazines
Advantages: High geographic and demographic selectivity, credibility and prestige, high-quality reproduction, long life and good pass-along readership.
Limitations: Long ad-purchase lead time, high cost, no guarantee of position.
Internet
Advantages: High selectivity, low-cost, immediacy, interactive capabilities.
Limitations: Small audience, relatively low impact, audience controls exposure.
Radio
Advantages: Good local acceptance, high geographic and demographic selectivity, low-cost.
Limitations: Audio only, fleeting exposure, low attention, fragmented audiences.
Television
Advantages: Good mass-market coverage, low-cost per exposure, combines sight, sound, and motion, appealing to the senses.
Limitations: High absolute costs, high clutter, fleeting exposure, less audience selectivity.
Outdoor
Advantages: Flexibility, high repeat exposure, low-cost, low message competition, good positional selectivity.
Limitations: Little audience selectivity, creative limitations.
4. Estimate the cost of each ad placement:
I recommend an outdoor digital billboard or sign located in front of each Walmart store where the advertisements can be frequently rotated and changed over the internet.
A digital billboard or sign offers the advantages of flexibility, high repeat exposure, low message competition, and good positional selectivity.
The cost would be the purchase of the billboard, running the billboard and the of producing the advertisement for the billboard.
The cost of digital billboards is falling and runs between $100,000 to $500,000 depending upon the size and whether its is a fixed or mobile unit.
The monthly cost of running the ad varies from $1,000 to $10,000 per month again depending upon the size and whether it is fixed or mobile.
The ads are relatively simple and can be produced either in-house or through an advertising agency.
Photographs of the Great Value brand products would be the main image used in the advertisements together with the text message and images of national brands.
Walmart already has an excellent website for looking up all the products carried in their stores for both national brands and the Great Value private store brand.
http://www.walmart.com/cp/Grocery/976759
The website address can be included in the advertisement for latter lookup by the prospective Walmart shopper.
Once the above outdoor billboards and signs are in place, a thirty-second radio and television commercial promoting the Great Value private store brand should be considered.
I would keep the advertisement simple with video or photographs of a selection of Great Value products and a text message.
The production of the commercial would cost between $50,000 to $250,000 depending upon the creatives used.
The cost of each spot would vary by each city or market selected, the length of the advertisement campaign, when the spot is run and what demographics are trying to be reached.
Walmart should first test the commercials in local markets to determine the relative pull of the advertisements in terms of increased sales.
Background Information
Bright Lights, Big Impact
“…Edina is part of a group of trendsetting advertisers that are pioneering the use of what the Federal Highway Administration, or FHWA, calls electronic variable message signs. These large, computerized displays marry the choice location of traditional roadside billboards with the opportunity for customization and frequent updating that is the hallmark of Web advertising. Today, there are nearly 800 of these digitized billboards in the U.S. It’s a small number compared with 450,000 traditional billboards across the country, but it’s growing fast. The Outdoor Advertising Association of America, an industry trade group, projects that the number of digital billboards in the U.S. will expand at a rate of several hundred per year.
Though some big companies, like McDonald’s (NYSE:MCD), are active advertisers on such venues, most digital billboards–as with traditional billboards–feature ads for regional and local companies. Prices vary according to a sign’s size and location, but the cost of advertising on a digital billboard runs from $1,200 to $10,000 a month, and the ad campaigns are typically not expensive to create. Most ad agencies can handle the work, and some companies even design their own digital billboard ads in-house using basic design software such as Adobe Illustrator and Apple (NASDAQ:AAPL) Final Cut Pro.
It’s not difficult to under stand why digital billboards are attractive to advertisers. They are bright and eye-catching and can convey multiple marketing messages at once. Marketers can arrange to have computerized ads change with much greater frequency than typical outdoor ads, timing their message to the season, the day of the week, and even the time of day. For instance, Edina Realty used its billboards to promote a number of time-sensitive sales and special offers. …”
“…Moreover, the technology that makes the signs work has fallen in price by more than half over the past few years, to $200,000 to $500,000 per sign, depending on size. In turn, the rates charged to advertisers have come down. And in September, the FHWA issued a memo stating that digital billboards violated no law. The ruling assuaged concerns among local and state officials who worried that the signs could pose a traffic hazard. It is generally accepted that if a motorist takes his or her eyes off the road for two seconds or longer, the likelihood of an accident greatly increases. The FHWA is working on a safety study concerning digital billboards; it is scheduled to be released at the end of 2009. For the time being, the agency recommends that the images on digital billboards remain static for at least four seconds–long enough, the agency believes, to ensure that the signs are no more distracting than standard billboards. (Many municipalities go further, requiring that an ad remain in place for no less than six seconds. …”
Digital Signage Replaces Static Print and Billboards
“…Digital signage involves a huge array of technologies that virtually replaces traditional retail signs. The static print signs and billboards people are used to seeing will soon be replaced with digital signage composed of electronic content and messages that are both targeted and interactive for everyone.
Plasma display panels, liquid crystal displays (LCDs) and scrolling message boards are currently the most common methods of projecting full-motion videos, sounds and text content. With digital signage, a manager or retailer is able to control and display any message they choose and deliver it to the public quickly and effectively. …”
// //
“…The benefits of using digital signage can be condensed into five important aspects:
1. Monitor and Manage Your Content
Digital signage software allows managers or retailers to easily add, remove or edit their content, and stream real-time broadcasting for instant delivery.
2. Give Your Business Better Visibility and Exposure
Whether your digital signage is indoor or outdoor, this software allows the use of any number of electronic devices that can be used to give your business the exposure it needs. These devices can include plasma screens, electronic billboards, kiosks, LCD monitors, HDTVs, touchscreen monitors and so many others.
3. Multiple Applications and Uses
Digital signage can be used for so many different tasks, such as retail advertising, employee training, consumer information, weather updates, corporate communication and much more.
4. Increased Revenue From Selling Advertising Space
Your digital signage software can generate more income through selling advertising space to your suppliers. Promote new brands or products by working with related manufacturers or advertise an upcoming corporate event. The possibilities are endless.
5. Target Your Audience
Changing the content of your digital signage is so quick and easy, you will be able to target any specific audience you desire during any time of day or night. …”
5. Outline which method(s) of advertising you wish to use, how long you think the ads should run and where they should run AND WHY. Local? Or National?
*This will require research
I would use outdoor digital billboards advertising using large LCD displays located near the street to attract passing motorists into the Walmart stores as well as mobile advertising trucks that can be parked at a Walmart store and moved to other stores in an area.
The adverstisements would run 24 hours per day, 7 day a week, 365 days per year and could be easily changed over the internet giving maximum exposure and flexibility.
Outdoor Advertising-Speech of the Street
VTV Outdoor Digital Billboard, 04/02/09
LED Billboard
Lamar LED Billboard
Digital Mobile Billboards Nationwide
U.S. Billboard Business Prepares Big Change
Selling Ads Into Store Windows: The New Billboards
6. Select a theme that correlates with the Wal-Mart brand.
What should the ads say? What overall message should they convey?
You do not have to create any ads, just plan the type and frequency you wish to run.
The theme and name for the advertising campaign will be:
Walmart– Guilty By Association–Guilty As Charged!
The ad will convey that Walmart carries quality national brands as well as the Walmart Great Value private store brand for most product categories, offers them at low unbeatable prices and provides great service from its team of associates.
The ad will also use the phrase Great Value which is also the name of the Walmart brand.
http://walmartstores.com/pressroom/Photos/Gallery.aspx?id=605
http://www.underconsideration.com/brandnew/archives/the_great_white_wash.php
The headline and body text of the ad will be surrounded by the logos of participating national brand names and will appear something like this:
Guilty By Association
Quality Brands
at
Unbeatable Prices
a
Great Value
with
Courteous Service
from
Walmart Associates
now
Shop & Buy
at
Guilty As Charged!
For example the following logos national brand names are currently appearing on the Walmart web site:
The ads will run continuously on an outdoor billboard and sign in front of every Walmart store to attract passing motorists. The ads will be rotated or switched every minute so that a passing motorists sees different ads each time he passes with the same message but with a different selection of Great Value products in the photograph.
Background Information
Walmart’s Private Label Product Packaging Re-Design
http://mattearleyworks.wordpress.com/2009/04/19/walmarts-private-label-product-package-re-design/
Wal-Mart chooses new advertising agency
Martin Agency known for quirky campaigs for GEICO and UPS
“…NEW YORK — Wal-Mart Stores Inc. said Friday that it has picked Interpublic Group of Co.’s Martin Agency, known for its quirky ads for GEICO insurance company and UPS, to help spearhead the discounter’s future image with consumers.
The decision comes after the world’s largest retailer in early December dumped its newly hired Draft FCB, another division of Interpublic Group, two days after the highly publicized firing of a top marketing executive, Julie Roehm along with her subordinate, Sean Womack.
Wal-Mart said Friday that Martin Agency will handle its creative responsibilities, and announced that Publicis Groupe SA’s MediaVest will oversee media buying and planning duties. Wal-Mart’s media and creative business is worth more than $500 million
Martin’ client list includes other big names such as Hanes and Discover Card. MediaVest’s long-standing clients include Coca-Cola Co. and Procter & Gamble Co.
“We’ve assembled a top-tier group of marketing partners that have deep retail experience, recognized creativity and an understanding of our customers,” said John Fleming, chief marketing officer at Wal-Mart, in a statement.
In an interview, John B. Adams, chairman and CEO of Martin Agency, based in Richmond, Va., said the agency’s “strong middle-American perspective” and its expertise in “provocative ads” make for a good combination for Wal-Mart. Its GEICO ads featured cavemen and testimonials from personalities like Little Richard.
“It is a useful perspective in doing work for Wal-Mart,” Adams said. ”
http://www.msnbc.msn.com/id/16601355/
http://www.martinagency.com/
Read Full Post | Make a Comment ( None so far )Unit 3 Part II, Assignment 3, Part 1, Wal Mart SWOT
UNit 3 Part II Princ. of Advertising
- Attached Files
- Major Methods of Advertising.rtf (7.517 KB)
Unit 3, Part II: The Campaign, Cont…
Official Wal-Mart website:
Assignment #3b, Part 2
The Campaign: Create a mock Wal*Mart advertising campaign.
Read:
http://ezinearticles.com/?Advertising—How-to-Find-Your-Target-Audience&id=2385285
2. Review the platforms of advertising available from Unit 2.
3. Estimate the cost of each ad placement:
NOTE** this is a crisis response campaign. Soon we will be doing a new product campaign.
Part 2 is due Tuesday, July 27 at 5 p.m.
A product definition of Walmart would be we run discount stores.
A market-oriented definition of Walmart would be we deliver low prices, every day.
Before one can do a SWOT analysis of Walmart’s current situation, one must first know who are the current customers or buyers of Walmart products.
SWOT analysis: how to create a useful one
Walmart like most companies has several types of customers or buyers of the products they sell at their stores.
Walmart divides the market into a number of groups with distinct needs, characteristics, or behaviors who might require separate products or marketing mixes.
Market segmentation and targeting requires the identification of the market segments, selecting one or more of them, and developing products that are tailored to their needs.
There are at least three distinct groups of customers who shop at Walmart:
(1) Customers wanting to buy manufacture’s brands or national brands at lower prices than they usually find at other retail stores.
(2) Customers wanting to buy manufacturer’s brands or national brands at lower price as well as the Walmart’s private store brand products at even lower prices provided these products have the perceived quality of the national brand.
(3) Customers wanting the lowest priced products and usually purchase and use the Walmart private store brand products instead of the manufacturer’s national brand.
All three market segments are impacted by the current economic recession with over 30 million Americans seeking full-time employment.
Many customers who are unemployed can no longer afford purchasing the manufacturer’s national brands and are turning instead to the Walmart private store brand, Great Value, a national brand equivalent or NBE ,to save money.
WalMart switching to cheap generic items due to economy? Great Value brand
Wal-Mart CMO Defends Private-Label Expansion
The Food Industry, Part 1: Markets and Money
The Food Industry, Part 2: “Then, Now, and Tomorrow”
Those customers who are still employed or employed only part-time are also cutting back on the purchase of manufacturer national brands and trying and switching to the Walmart private store brands as seen above.
Given the economy is currently in a recession and unemployment levels will remain high for the next two years or longer, the market segments that purchase the Walmart private store brand products will be the focus of the Walmart SWOT analysis and advertising campaign.
The SWOT analysis below focuses primarily on Walmart’s grocery store and Great Value private store brand and does not cover Sam’s Club, discount stores and the non-grocery products and services.
Walmart SWOT Analysis
Strengths
World’s number one retailer in terms of sales revenues with over $400 billion in sales revenue in 2009.
An established and trusted retail brand with a reputation for lower price or value, convenience and a wide range of products in one retail store.
Largest private employer and grocery store retailer in the United States.
Recognized core competencies in information technology in support of its logistics and procurement systems.
Grocery items account for about 49% of Walmart sales revenues.
More than 8400 stores including about 800 discount stores, 3,100 combination discount and grocery stores (Wal-Mart Supercenters in the US and ASDA in the UK), and 595 Sam’s Club warehouses.
Reputation for low prices on manufacturer national brand products and Walmart private label brand products.
Over 40% of its sales are from private label brands through contracts with manufacturers.
Offers a wide variety of products in its stores.
World’s largest private brand, Great Value, with over 5,000 items.
Economies of scale in distribution because they can supply a wide range of products to the same customer base.
Walmart International is the fast-growing part of Walmart’s overall operations, with 4,112 stores and more than 680,000 associates in 14 countries outside the continental U.S.
The International division with 25% of sales is growing at a fast pace; it’s the #1 retailer in Canada and Mexico and it has operations in Asia (where it owns a 95% stake in Japanese retailer SEIYU), Europe, and South America.
People are a key resource and asset and Walmart invests time and money training and developing them.
Over 2.1 million employees worldwide and 1.4 million in the United States., the majority of which are full time employees.
One of the largest employers in United States and Canada, and the largest in Mexico.
Walmart Superstores offer twenty-four hour shopping.
Walmart Sam’s Club enable customers to purchase products in bulk at discount low prices
High customer satisfaction.
Family controlled company with Sam Walton heirs owning about 45% of the company.
Weaknesses
A global company with a presence in only fourteen countries worldwide.
Low market share outside of the United States.
Does not specialize in many product sectors and may not have the needed expertise in managing some of these product sectors as do their more focused competitors.
Big size stores may not work well in emerging markets, where customers may prefer small stores located in their communities compared to larger stores that may require travelling long distances outside of their communities.
Opportunities
Walmart currently operates in only 14 countries; and it has great opportunities to expand into other countries as well as grow within the countries they are currently operating in.
Form strategic alliances with other giant retailers in China, Europe and India.
The recession in the United States and the remainder of the world including those in which Walmart operates provides an opportunity for Walmart to switch their customers from manufacturer national brands to their own Walmart private and attract customer who normally do not shop at Walmart.
Acquire other discount retail and grocery stores in other markets for fast entry into other markets abroad.
Acquire manufactures of Walmart’s private store brand products.
Switch customers to higher profit margin Walmart private label brand, Great Value, from lower profit margin manufacturer national brands due to the recession.
Settle sex descrimination law suits that have merit to avoid unnecessary, costly and prolonged litigation, negative publicity and impact on customer and employee base.
Continue and expand successful growth strategy of large supercenters.
Threats
Faces competition from local, regional, national and international business firms.
Top competitors are Carrefour SA, Costco Wholesale Corporation, Kroger, and Target Corporation.
Intense price competition from falling manufacturing costs in lower cost regions due to outsourcing.
Target of lawsuits from litigants who perceive Walmart as a deep pocket financially.
Small companies can compete successfully by distributing specialty products or providing superior customer service
Many competing companies are outsourcing which leads to greater competition on price.
Many small towns do not want Walmarts to establish a store in their community because many small businesses cannot compete on price and subsequently close down once a Walmart store is openned.
Subject to political and foreign exchange currency risks in countries when operating abroad.
Background Information
In grocery sales, Wal-Mart sacks competition
“…While much of retail has experienced sharply declining sales for more than a year, food – especially if perceived as a good value – still brings customers through the door.
“It’s all about foot traffic, and foot traffic is just not happening unless you have the food to draw people in,” said Patricia Edwards, a retail analyst and founder of Storehouse Partners LLC in Seattle.
Wal-Mart gets more than half the grocery dollars spent in Arkansas, Oklahoma and Mississippi and is the top grocer in the other states that border Arkansas, according to Shelby Publishing Co. Inc. of Gainesville, Ga., which tracks the supermarket business.
Globally, Wal-Mart had $401.2 billion in sales for its fiscal year that ended Jan. 31, and grocery items accounted for 49 percent of that figure, according to the company’s annual report. …”
http://wakeupwalmart.com/news/article.html?article=2212
Private label plays off low-key, low-price approach – Wal-Mart, Target marketing strategies
“…Traversing a Wal-Mart store looking for proprietary brands isn’t as straightforward as it might seem. Unlike other discounters and supermarket chains this retailer doesn’t plaster the store name on house brands or make a big deal out of the product line as a point of differentiation. Rather, it simply and unobtrusively offers inexpensive product to its value-conscious customers.
Wal-Mart has long operated its merchandising programs in such a manner. It doesn’t advertise product in the traditional sense. Where other retailers spend hundreds of millions of dollars running Sunday circulars and using co-op advertising money from manufacturers to run product-heavy ads, Wal-Mart uses its every-day-low-pricing (EDLP) strategy to cut out that enormous expense and keep prices on both private-label and national brands as low as possible.
So it stands to reason that it would adopt a similarly low-profile approach to marketing its house brands. All proprietary product is positioned within its respective category based on price.
“Wal-Mart’s strategy is to reinforce their price leadership,” said Sid Doolittle of the consulting firm McMillan/Doolittle. “That’s their main theme; they’ve stuck with it for a long time, and it works. …”
http://findarticles.com/p/articles/mi_m0FNP/is_11_40/ai_75452808/
Private Label Trends
“…Private label describes products manufactured for sale under a specific retailer‘s brand. They are often designed to compete against branded products, offering customers a cheaper alternative to national brands. Though the public generally used to see them as low-cost imitations of branded products, private labels have overcome this reputation and achieved significant growth in recent years. The most commonly known private label goods are the “store brands” sold by food retailers, though this is just one example of many. Department stores, electronics stores, and office supply retailers all offer private label products or services.
Private labels offer several benefits to both retailers and customers, driving the segment’s rising popularity. For retailers, margins on private label goods are an average of 10% higher than those on similar branded products. Customers benefit from private labels’ lower prices, which are often significantly less than those of national brands. This combination, while beneficial to retailers and consumers, can put substantial pressure on the manufacturers of branded goods, who have to compete against their own customers (the retailers) for market share. …”
“…Private label goods are generally much cheaper to produce than branded goods, due to the lack of advertising and marketing expenses. As such, retailers are able to purchase private label goods for much less than they would have to pay for comparable branded products. The cost difference is usually large enough that retailers can offer customers lower prices while still making higher profit margins themselves. Lower prices can be enticing to customers and increase a company’s competitiveness. Small chains have a particular incentive to offer private label goods; they are often unable to match larger retailers’ prices for branded goods, but private label can allow them to price more competitively. …”
http://www.wikinvest.com/concept/Private_Label_Trends
“…Wal-Mart Stores, Inc. (formerly branded as Wal-Mart, branded as Walmart since 2008) (NYSE: WMT) is an American public corporation that runs a chain of large discount department stores and a chain of membership required warehouse stores. In 2010 it was the world’s largest public corporation by revenue, according to the Forbes Global 2000 for that year.[6] The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. Wal-Mart, headquartered in Bentonville, Arkansas,[7] is the largest majority private employer[8] and the largest grocery retailer in the United States. In 2009, it generated 51% of its US$258 billion sales in the U.S. from grocery business.[9] It also owns and operates the Sam’s Club retail warehouses in North America.
Wal-Mart operates under its own name in the United States, including the 50 states and Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda (“Asda Wal-Mart” in some branches), in Japan as Seiyu, and in India as Best Price. It has wholly-owned operations in Argentina, Brazil, and Canada. Wal-Mart’s investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful, while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful. …”
“…In March 2006, Walmart sought to appeal to a more affluent demographic. The company launched a new Supercenter concept in Plano, Texas, intended to compete against stores seen as more upscale and appealing, such as Target.[35][36] The new store has wood floors, wider aisles, a sushi bar, a coffee/sandwich shop with free Wi-Fi Internet access, and more expensive beers, wines, electronics, and other goods. The exterior has a hunter green background behind the Wal-Mart letters, similar to Wal-Mart Neighborhood Markets, instead of the blue previously used at its supercenters.
On September 12, 2007, Walmart introduced new advertising with the slogan, “Save Money Live Better,” replacing the “Always Low Prices, Always” slogan, which it had used for the previous 19 years. Global Insight, which conducted the research that supported the ads, found that Walmart’s price level reduction resulted in savings for consumers of $287 billion in 2006, which equated to $957 per person or $2,500 per household (up 7.3% from the 2004 savings estimate of $2,329).[37]
On June 30, 2008, Walmart unveiled a new company logo, featuring the non-hyphenated name “Walmart” followed by a stylized spark, as it is referred to on store advertisements. The new logo received mixed reviews from some design critics, who question whether the new logo is as bold as competitors such as the Target bullseye or as instantly recognizable as the former company logo, which was used for 18 years.[38] The new logo made its debut on the company’s walmart.com website on July 1, 2008. The new logo will eventually replace store logos at the company’s US locations throughout the year[clarification needed which year].[39] Wal-Mart Canada started to adopt the logo for its stores in early 2009.
On March 20, 2009, Wal-Mart announced that it is paying a combined $933.6 million in bonuses to every full and part time hourly worker of the company. An additional $788.8 million in profit sharing, 401(k) contributions, and hundreds of millions of dollars in merchandise discounts and contributions to the employees’ stock purchase plan is also included in this plan. While the economy at large was in an ongoing recession, the largest retailer in the U.S. reported solid financial figures for the most recent fiscal year (ending January 31, 2009), with $401.2 billion in net sales, a gain of 7.2% from the prior year. Income from continuing operations increased 3% to $13.3 billion, and earnings per share rose 6% to $3.35.[40] …”
http://en.wikipedia.org/wiki/Wal-Mart
List of Walmart Brands
“…Great Value
Great Value was launched in 1993 and forms the second tier, or national brand equivalent (“NBE”), of Walmart’s grocery branding strategy.
Products offered at Walmart through the Great Value brand are claimed to be as good as national brand offerings, but are typically sold at a lower price because of minimal marketing and advertising expense. In fact, in early 2009, Walmart had over 5,200 testers who failed to prove that the new Great Value revamp was better than the national brand. As a house or generic brand, the Great Value line does not consist of goods produced by Walmart, but is a labeling system for items manufactured and packaged by a number of agricultural and food corporations, such as ConAgra, which, in addition to releasing products under its own brands and for Walmart, also manufactures and brands foodstuffs for a variety of other chain stores.
As Walmart’s most extensively developed retail brand, covering hundreds of household consumable items, the Great Value line includes sliced bread, frozen vegetables, frozen dinners, canned foods, light bulbs, trash bags, and many other traditional grocery store products. The wide range of items marketed under the Great Value banner makes it Walmart’s top-selling retail brand.
The Great Value brand can also be seen in Canada, Mexico, Argentina and Brazil and some Trust Mart stores in Xi’an, Shaanxi Province, China through a partnership with Walmart.
By mid-summer 2009, Walmart had redesigned the Great Value labels to be predominantly white. The new redesign also includes over 80 new items including thin crust pizza, fat free caramel swirl ice cream, strawberry yogurt, organic cage-free eggs, double stuffed sandwich cookies, and teriyaki beef jerky. Walmart changed the formulas for 750 items including: breakfast cereal, cookies, yogurt, laundry detergent, and paper towels. The new brand was tested by over 2,700 people.[1] Other retailers are following suit with their private label packaging as well.[citation needed]
http://en.wikipedia.org/wiki/List_of_Wal-Mart_brands
Wal-Mart says Castro-Wright leaving his current post
“…Walmart U.S. has lost some higher-income shoppers gained during the recession and is facing stronger competition from rivals including Target Corp. … and Dollar General Corp. …”
“…The chain has been remodeling stores to make it easier and more pleasant to shop. It’s also cut prices on thousands of items and is bringing back some products to its U.S. store shelves after a move to narrow product assortment alienated shoppers who couldn’t find what they wanted — something Castro-Wright described as “self-inflicted pain” earlier this month at the Wal-Mart annual meeting. …”
http://www.marketwatch.com/story/wal-marts-promoting-from-within-for-key-us-post-2010-06-29
Wal-Mart plans to widen price gap, eyes more acquisitions
“…Wal-Mart has cut prices on thousands of products — its so-called rollbacks or price cuts for 90 days — in its U.S. namesake stores, and has made similar moves in its overseas chains, such as the U.K.’s Asda, as the retailing behemoth vied with rivals from Target Corp. /quotes/comstock/13*!tgt/quotes/nls/tgt (TGT 52.68, +0.79, +1.52%) to Family Dollar Stores Inc. /quotes/comstock/13*!fdo/quotes/nls/fdo (FDO 39.51, +0.04, +0.10%) that also have been sharpening their price message, analysts said. Target’s sales have outpaced that of Wal-Mart.
“In some cases we’ve lost some of the promotional price intensity,” said the company’s U.S. Wal-Mart unit’s chief, Eduardo Castro-Wright. “Competitors in certain segments of the trade have become very price oriented. We’ve responded.”
http://www.marketwatch.com/story/wal-mart-to-widen-price-gap-eyes-mobile-potential-2010-06-04
Sex Discrimination Lawsuit Against Wal-Mart Allowed to be a Class Action
“…The world’s largest retailer, Wal-Mart, is squarely in the crosshairs of a sex discrimination class action lawsuit that may have far reaching implications on sex-based bias in the workplace. On April 26, 2010, a federal appeals court in San Francisco ruled that the lawsuit against the retail giant may proceed as a class action. Originally filed in 2001 by six female employees, the suit alleges that Wal-Mart systematically discriminated against female employees by denying promotions, paying women less than men and giving women smaller raises.
Prior Sex Discrimination Suits
Wal-Mart has settled scores of sex-discrimination lawsuits in recent years. It recently settled a lawsuit filed by the Equal Employment Opportunity Commission (EEOC) where the Commission alleged that Wal-Mart denied jobs to female applicants at its London, Kentucky distribution center from 1998 to 2005. However, in the present case, Dukes v. Wal-Mart Stores, Inc., the Plaintiffs sought to certify a much larger class of potential plaintiffs: women who may have worked at any Wal-Mart store in the United States after December 26, 1998. This prospective class would include hourly and salaried workers in 3,400 locations who may have been subject to Wal-Mart’s allegedly discriminatory policies regarding equal pay and promotions …”
Walmart Corporate
http://walmartstores.com/7663.aspx
Official Walmart Site
http://www.walmart.com/
SWOT Analysis
SWOT Analysis: How to perform one for your organization
Video Lesson SWOT Analysis
Rob Frankel on Wal-Mart’s Sinking Brand
Walmart SWOT
http://www.marketingteacher.com/swot/walmart-swot.html
Read Full Post | Make a Comment ( None so far )Unit 3, Part I, The Advertising Campaign
How to create an advertising strategy.doc (33.5 KB)Principles of Advertising
Unit 3, Part I , The Advertising Campaign
a. Describe a SWOT analysis and how a SWOT analysis works
How to Do a SWOT Analysis
The late advertising legend David Ogilvy emphasizes the importance of discipline in art and the need to follow rules and regulations to produce a great advertising campaign.
Chapter 1: Situation Analysis
Chapter 3: Problems and Opportunities
Chapter 4: Marketing Objective
Chapter 5: Budget
The Advertisng Campaign Planning Document
Chapter 6. Marketing Strategy
Chapter 7: Advertising Creative
Chapter 8: Advertising Media
Chapter 9: Sales Promotion
Chapter 10: Marketing Communications (MARCOM)
Chapter 11: Evaluation (Research)
Chapter 12: Test Marketing
David Ogilvy provide the following useful definition:
“…a good advertisement is one which sells the product without drawing attention to itself. It should rivet the reader’s attention on the product. Instead of saying, “What a clever advertisement,” the reader says, “I never knew that before. I must try this product.” (page 90 of Confessions of An Advertising Man).
- What You Say Is More Important Than How You Say It.
- Unless Your Campaign Is Build Around a Great Idea, It Will Flop.
- Give the Facts.
- You Cannot Bore People into Buying.
- Be Well-Mannered, But Don’t Clown.
- Make Your Advertising Contemporary.
- Committees Can Criticize Advertisements, But They Cannot Write Them.
- If You Are Lucky Enough To Write A Good Advertisement, Repeat It Until It Stops Pulling.
- Never Write an Advertisement Which You Wouldn’t Want Your Own Family To Read.
- The Image and the Brand must be coherent and stable and the advertising must contribute to this.
- Don’t Be A Copy-Cat.
National Advertising Campaign
Honda’s Power of Dreams Campaign is a national corporate brand campaign that builds on Honda’s corporate theme, “Power of Dreams”:
http://dreams.honda.com/#/background
http://dreams.honda.com/#/video_la
Honda Creates Original Short-Film Documentaries for Corporate Brand Campaign
One Film in the Cinematic Series by an Acclaimed Director to be Screened at Sundance Film Festival
http://world.honda.com/news/2009/c090112Original-Short-Film/printerfriendly/index.html
Kick Out the Ladder
Racing Against Time
Honda the Power of Dreams Failure: The Secret to Success
Background Information
Honda “Impossible Dream” Commercial
the new Honda Impossible Dream 2010
Local (Texas) Advertising Campaign
University of Texas at Austin has a Texas advertising campaign with the theme of “What Starts Here Changes the World,” with nine broadcasting television spots.
http://www.utexas.edu/inside_ut/tvspot/
University of Texas at Austin ““What Starts Here Changes the World”
University of Texas Ad – Minds
University of Texas Ad – Soul
University of Texas Ad – We’re Texas
University of Texas Ad – Change
University of Texas Ad – Gutenberg
University of Texas Ad – Sole Purpose
University of Texas Commercial – “We’re Texas” Rallying Cry Ad
University of Texas Ad – Yet
Background Information
SWOT analysis: how to create a useful one
Market segmentation: a case study OxfordLearningLab
How to Advertise to market segments
World Class Marketing – Market Segmentation
Marketing communications: The scope
SWOT
“…SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, has been the subject of much researchCitation Needed.
-
- Strengths: attributes of the person or company that are helpful to achieving the objective(s).
- Weaknesses: attributes of the person or company that are harmful to achieving the objective(s).
- Opportunities: external conditions that are helpful to achieving the objective(s).
- Threats: external conditions which could do damage to the objective(s).
Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.
The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats [citation needed]. It is particularly helpful in identifying areas for development [citation needed]. …”
http://en.wikipedia.org/wiki/SWOT_analysis
“…Honda’s Impossible Dream is a panoramic 2 minute long television commercial that was launched on December 2, 2005 in the United Kingdom. It anchored the “Power of Dreams” campaign which also included a website with extensive information about the series of vintage Honda vehicles that were chosen to illustrate the dreams of the founder of Honda. It features an actor (Simon Paisley Day) singing, riding and driving across the scenic shorelines and roads of New Zealand, Twin Ring Motegi in Japan, and the Iguazu Falls in South America. …”
Defintion of Advertising Campagin
“…Coordinated series of linked advertisements (broadcast usually through several media channels) that (1) focus on a common theme and one or few brands or products, (2) are directed at a particular segment of the population (targeted audience), and (3) are aimed at achieving a specific objective (such as awareness or market share). Successful advertising campaigns achieve far more than the sporadic advertising, and may last from a few weeks and months to years. ..”
http://www.businessdictionary.com/definition/advertising-campaign.html
“…Top 10 Tips for an Effective Advertising Campaign
The goal of advertising is to cost-effectively reach a large audience and attract customers. If done correctly, advertising can enhance the success of your business. Here are 10 advertising tips to pay attention to:
- Go after your target audience. An advertising campaign should be geared to your niche market. It is a common mistake to create generic ads that do not speak the language or grab the attention of your potential customers. For more information, read How to Identify and Reach Niche Markets for Your Business.
- Highlight your competitive advantage. One of the keys to all advertising is to accentuate the pros of your company, those factors that give you your competitive edge. Too many ads are clever but fail to sell the benefits of the product or service.
- Establish an image. You can recognize the McDonald’s arches while whizzing by on the highway. Likewise, there are plenty of products that you recognize by their packaging or logo. Image counts when it comes to advertising and promoting your business. Too many advertisers do not work to build a consistent image. Check out Three Brand Identity Myths That Will Bring Your Business Down for additional issues to avoid.
- You have to spend money to make money. There are ways to save money, but typically advertising is not the place to cut corners. It will affect sales, and that affects the bottom line. Successful advertising may cost some money, but that is because it works. Check out More Bang for Your Advertising Buck for cost-cutting tips that won’t cut your goals.
- Advertise in the right places. Your favorite magazine, radio station, or even television program might not be a favorite of your audience. Know what they read, watch, and listen to, and advertise in media that reaches your target market.
- Don’t allow your budget to run your advertising campaign. If you budget $5,000 per month for advertising, you’ve made it very easy from a bookkeeping perspective. However, if like most businesses you have seasonal highs and lows, you are spending too much money advertising during down times and not enough when you want to attract customers. Too many entrepreneurs do not budget according to their seasonal advertising needs.
- Diversify. It is all too common for business owners to choose the best place to advertise based on price and potential rate of returns and then stop. As is the case with investing, you do not want to put all of your eggs in one basket. Spread your advertising dollars around.
- Don’t try to be everything to everyone. No product or service will appeal to everyone. Many business owners, including corporate executives, try to come up with ways to reach every market. Typically, this does not work. It can spell disaster for small businesses, who cannot afford to spread themselves too thin. Therefore, find your market and be everything you can be to that audience.
- Test your ads in advance. If you have the time or money to invest in focus groups, you should test your ads on other people. Do they understand and accept the message that you are trying to convey? For further information, read Focus Groups: How They Can Work for Your Small Business. There are other less-expensive ways to test your ads as well: questionnaires, for example. The article Creating Questionnaires for Gathering Market Research can be helpful.
- Monitor your ads. It is very easy to ask new customers or clients where they heard about you. As simple as this is, many entrepreneurs do not bother to do so. It is advantageous to know which ads generate business….”
http://www.allbusiness.com/marketing/advertising/3983-1.html
Read Full Post | Make a Comment ( None so far )Unit 2 Part 2 Platforms of Advertising
Unit 2 Part 2_Platforms of advertising .ContentAttached Files
Major Methods of Advertising.rtf (7.517 KB)
Modern Advertising Methods.rtf (11.812 KB) .
Assignment Title: Unit 2_Part 2
Different platforms of advertising
Research the different forms of advertising-
-Radio
-Television
-Print (magazine, newspaper, flyers, mail advertising)
-Outdoor (billboard, building)
Read this article: http://www.buzzle.com/articles/different-types-of-advertising.html
Part 1: In your blog, discuss one advertisement on each of the four platforms that you encounter in a given day. Describe the ads themselves, what they make you think about and how they make you feel. If possible, include clips/ photos of the ads in your response. Due July 20, 2010 by 5 p.m.
View this assignment with embedded videos and images on my Pronk Papers blog:
Unit 2 Part 2 Platforms of Advertising
Radio Advertisement
If you listen to talk radio, you have probably heard a commercial for Carbonite or seen one on the host’s web sites:
http://www.carbonite.com/comktg/signup.aspx?lp=57&sourcetag=Bennett_Banner1&cmpid=RA_Bennett_Banner1
http://www.carbonite.com/comktg/signup.aspx?lp=33&sourcetag=Beck_Banner1&cmpid=RA_Beck_Banner1
http://www.rushlimbaugh.com/home/today.guest.html
http://www.carbonite.com/ads/rush/banner1.aspx?SourceTag=RushSite&cmpid=RA_Rush_1_Banner
http://www.carbonite.com/comktg/signup.aspx?lp=lauraingraham
What is distinctive about Carbonite commercials is that the radio talk show host weaves the Carbonite commercial into the show and the celebrity host gives a personal testimonial about the product and its benefits–automatic, secure, reliable and unlimited.
This can be a little disconcerting at first, but definitely gets your attention and eventually you will go to the talk radio show’s site to check it out and get more information.
The following clips gives you a humorous example of this both on the radio and on television:
Ron & Fez: Carby and Little Carby for Carbonite, 5/12/09
Jimmy Kimmel on Carbonite
The listener to the talk show is directed to the Carbonite ad on the talk radio show’s web site where they can get additional information about the product or they can directly go to the Carbonite site:
Any one who has a personal computer knows they fear the day their hard drive crashes.
Carbonite provides a relatively inexpensive way to protect yourself against the lost of data when you hard drive or computer crashes.
I feel that if I had Carbonite backup protection that all my data or files including videos, photos, music, databases, business records would be safely, securely, conveniently stored by Carbonite with multiple backups.
What is most attractive about the service is that it is done automatically for you in the background when you computer is on.
For many months I remembered the radio talk shows that I had heard the Carbonite commercial for the computer online backup service, but simply could not remember the name of company, Carbonite.
This partially confirms what the late advertising legend, David Ogilvy said about celebrity testimonials, namely the viewers remember the celebrity while forgetting the product.
I say partially for I did remember both the celebrity and the product category, computer online backup, but I simple could not remember the company or brand name, Carbonite.
That said, I knew I could quickly find the name by going to one of the talk radio show site above.
Background Information
Carbonite: Backup. Simple.
About Carbonite
“…Carbonite launched its Online PCBackup™ service in May 2006. Carbonite’s industry-first offer of unlimited backup space for a flat low price revolutionized the market for consumer and small business backup services. So far the company has backed up more than 2.5 billion files, has restored more than 160 million lost files for its customers and has a large data center where capacity is measured in petabytes. There are Carbonite users in nearly 100 countries.
Founded in 2005, Carbonite believes that computer users should not have to think about backup. The company’s mission is to provide an affordable, reliable, secure and easy-to-use solution for the mainstream computer user. Carbonite is available to consumers and small business through numerous channels, including its corporate Web site, major US retailers and international distributors. For more information, please visit http://www.carbonite.com. …”
http://www.carbonite.com/blog/?tag=/carbonite+online+backup
Carbonite (online backup)
“…Carbonite is an online backup service available to both Windows and Mac users that provides unlimited backup space to consumers and small businesses. It is named after carbonite, the substance used to freeze Han Solo in Star Wars: The Empire Strikes Back.[1]
Carbonite was the first online backup company to offer unlimited backup space for a fixed price. Prior to Carbonite entering the market in early 2006, all online backup services were priced by the gigabyte.[2] Many other vendors have since changed to an unlimited model similar to Carbonite’s.[3]
Carbonite was named ‘Best Windows Backup Tool’ by Lifehacker,[4] ‘Labs Winner’ by PC Pro, ‘Editor’s Choice’ by NextAdvisor,[5] Hottest Boston Company by Lead411,[6] but received only ‘two mice’ in a MacWorld review putting it second to last.[7]
http://en.wikipedia.org/wiki/Carbonite_(online_backup)
Carbonite Commercial 2009 – 1 of 4
Carbonite Commercial 2009 – 2 of 4
Carbonite Commercial 2009 – 4 of 4
Carbonite Online Data Backup Review
Television Advertisement
The shaving cream brand, Barbasol, has a radio, television, print and online advertising campaign for its shaving cream products. If you listen to Bill Bennett’s Morning In America talk show, that airs from 6 a.m. to 9 a.m Eastern Standard time, you have probably heard the Barbasol song that you also can hear and see in Barbasol Close Shave America video below:
Barbasol | “Close Shave America”
The lyrics of the thirty-second commercial are worth examining closely, pun intended.
The road is tough, your spirits strong, driving one and all,
Close shave America, close shave Barbasol.
America you are looking good, handsome, free and tall.
Close shave America, close shave Barbasol, close shave Barbasol.
The road is tough like a man’s beard or someone who has not shaved for a day or two.
Still the individual’s and country’s spirit is strong as you drive one and all of the roads of America.
The individual is identified with all the people of America in the phrase, “America you are looking good, handsome, free and tall.”
The suggestion is that the individual is like all the American people and you too can look good, handsome and tall provided you shave close with Barbasol shaving cream.
The commercial repeats the brand name, Barbasol, and tag line, Close Shave Barbasol, the benefit of the product, several times in the commercial.
The image of the product, a can of shaving cream, is shown several times on the side and back of the truck, and on the table in the home.
A benefit tag line–BEARD BUSTER–is towards the top of can followed by the company brand name–Barbasol–and a second feature tag line–THICK & RICH SHAVING CREAM.
The videos also provides a web address or url, www.barbasol.com for more information.
The ad makes me think about shaving and the need for a close shave and one of the products you would need to accomplish this– shaving cream–Barbasol.
When I go shopping for shaving cream, the product in that category that I think of first is Barbasol.
This is exactly what the advertiser wants to happen, namely being the first brand name product in the product category cue or list.
The second name I think of is Colgate, followed by Gillette.
However, I usually buy Barbasol for it is the cheapest and best.
Subsequent shorter commercials reenforce this by making the consumer aware that Barbasol comes not only in the original flavor but in six other flavors and one designed for sensitive skin as well.
Also, if you want a close shave, you better buy Barbasol and not the other brands.
Barbasol Champ
Barabasol – Close Shave “Baseball”
Barbasol – Sensitive Skin “Hockey”
Close Shave and All Better Get Barbasol
Each flavor has it own color for quick identification and the products are on the web site:
http://barbasol.com/product_landing.aspx
Barbasol shaving cream also comes in a small can for traveling to save on the space and weight (see photo of can above).
This is a distinct benefit now that airlines are charging passengers for suitcases weighing more than a certain limit.
The Barbasol brand is usually the least expensive or lowest price shaving cream.
For those who prefer a shaving gel or a premium product, the company has a brand extension, Barbasol Ultra:
Perio, the company who owns the Barbasol brand, also has a brand of shaving cream products targeted for woman Pure Silk:
http://barbasol.com/products.aspx?cid=3
Pure Silk shaving cream commercials are targeted for woman as illustrated in these commercials:
Pure Silk Shave Cream
Brittany Lincicome’s New Commercial – Pure Silk
I agree with the late advertising legend David Ogilvy who did not recommend using celebrities in advertising.
His research found that the ads that use celebrity testimonials get below average results in their ability to change brand preference . Ogilvy stated that “Viewers have a way of remembering the celebrity while forgetting the product.” (see his classic book Ogilvy On Advertising, page 109).
However, Ogilvy thought that “the most effective testimonial commercials are those which show loyal users of your product testifying to its virtues-when they don’t know they are being filmed” (see his book Ogilvy On Advertising, page 105).
The Barbasol | “Close Shave America” commercial is much better than the Pure Silk commercial with celebrity golfer Brittany Lincicome.
Perio, Inc. is a privately owned company that owns the Barbasol and Pure Silk brand and is headquartered in Dublin, Ohio:
Made in America – Barbasol
For a close shave guys, better buy Barbasol, and gals, Pure Silk.
Print advertisement
eHarmony uses radio, online, television and print advertisements to attact customers to its date matching services:
http://www.eharmony.com/?ctk=1&cid=50601&aid=1001&kid=ZCO7
eHarnmony’s tag line is bringing good people together
eHarmony’s Advice tag line is real people, real advice.
The focus of both is people and the formation of personal relationships.
It provides prospects of its service a free review of its service and if you are at their site a button to click on to “Get Matched For Free”.
In other words it gives you a taste by requiring you to first complete a extensive questionaire covering the 29 dimensions of compatability
The more time you spend at the site and get involved, the more likely you are going to try it the service at least once.
Like most companies, eHarmony is trying to get you hooked or adicted to its date match services.
The company in its advertisements wants you to go to your computer and type in www.eharmony.com
Once there eHarmony is selling you their services.
I still remain skeptical and did not use their service.
eHarmony: bringing good people together
eHarmony Ad – Tanyalee & Johsua
eHarmony does remind me of a song from Fiddler On The Roof:
Fiddler on the roof – Matchmaker ( with subtitles )
Background Information
eHarmony
“…eHarmony is an online dating website which matches men and women with other singles. In addition to singles matching, eHarmony operates eHarmony Labs, a relationship research facility, and publishes eHarmony Advice, a relationship advice site. eHarmony, which was launched on August 22, 2000, is based in Pasadena, California and has operations in the U.S., Australia, Canada and the U.K. The company is privately-held, with investors that include Technology Crossover Ventures, Sequoia Capital and Fayez Sarofim & Co. …”
http://en.wikipedia.org/wiki/EHarmony
Outdoor advertisement
Half Price Books uses its company brand name and logo on its buildings and billboards:
The familiar white text on a red background gets your attention as you are driving past.
It is similar to a traffic stop sign which also has a red background and white letters in America.
However the Half Price Books sign makes me want to stop at the store and buy some books.
I feel I am saving money by buying used books at a discount of at least 50% or more off the retail price.
What usually happens is I buy significantly more books than I would have if I had to pay the suggested retail price on book’s cover.
Since I enjoy reading, I have been a loyal customer of Half-Price Books for over twenty-five years and live only a few miles away from their main store.
The company name, Half Price Books, is also the main selling proposition and business model behind the chain of stores that were started in Dallas, Texas in 1972 and have now grown to over 100 stores in 15 states nationwide.
Store Locations
http://www.halfpricebooks.com/find_a_store.html
Their main store in Dallas is most likely the largest book store in the world and uses the company logo on the entrance to the store:
Half Price Books should seriously consider deleting the word RECORDS as fewer and fewer people are listening to music on this format.
The only thing I would change or add to the company logo and sign is that I would add the words CDs, GAMES and VIDEOS and delete the word RECORDS.
The bottom two lines would read CDs, GAMES/MAGAZINES, VIDEOS.
I seriously doubt the company will do this because of the expense of changing all the signs on their buildings and marketing material.
http://www.halfpricebooks.com/
The store sells these products as well as computer software, calendars, notebooks, and book related items.
The video below gives you a good idea of its store and customer reactions:
Extra 20% Off Everything Sale
Great Opening at Half Price Books
Background Information
Billboard Goes Down.
Billboard Goes Up.
Part 2: Compose a 500-word essay comparing and contrasting modern advertising methods with traditional methods (read attached article “Modern Advertising Methods”). Focus on how advertising has changed and/or stayed the same. Post this essay in your blog by Thursday, July 22 at 5 p.m.
Read Full Post | Make a Comment ( 1 so far )Unit 2 Advertising–History of Advertising
Unit 2 Advertising_ History of Advertising .ContentGo to the following link and answer the questions in your Assignment Blog
Title: Unit 2_ Assign 1
A Brief History of Advertising:
A. Go to the following link and read through the brief history of advertising.
http://historymatters.gmu.edu/mse/ads/intro.html
-Complete the quiz “Match the Ad to its Purpose.”
-Answer the following questions in your blog:
1. What three devices did Benjamin Franklin use in his publication the Pennsylvania Gazette to reach out to readers?
The three device that Benjamin Franklin used in his Pennsylvania Gazette to reach out to reader were headlines, illustrations, and advertising placed next to editorial material.
Franklin also published stories on politics, political cartoons to illustrate these stories, the community’s weather and current events, foreign affairs, and under Pennsylvania Gazette header used the tagline–“Containing the freshest Advices Foreign and Demestick”.
Background Information
History of Advertising 2/9
“…This political cartoon (attributed to Benjamin Franklin) originally appeared during the French and Indian War, but was recycled to encourage the American colonies to unite against British rule. From The Pennsylvania gazette, 9 May 1754. Abbreviations used: South Carolina, North Carolina, Virginia, Maryland, Pennsylvania, New Jersey, New York, and New England. This is a somewhat odd division: New England was four colonies, and Delaware and Georgia are missing …”
http://en.wikipedia.org/wiki/File:Benjamin_Franklin_-_Join_or_Die.jpg
http://www.earlyamerica.com/earlyamerica/past/past.html
“…Selections, 1730-1743
In 1750 in New England, almost 70 percent of white men and 45 percent of white women could read; in the southern colonies, about 50-60 percent of men and 40 percent of women. With a literacy rate greater than Britain, the colonies by mid century hosted more newspapers than the mother country.1 A sample of this expansive output is this collection of brief items from Benjamin Franklin’s newspaper, The Pennsylvania Gazette, “containing the freshest Advices Foreign and Domestick.” Together they offer a window into life in the middle colonies in the mid 1700s: fire, earthquake, weather extremes, smallpox, the revival tour of Rev. George Whitefield, the king’s birthday, the mayor’s feast for the city’s citizens, fundraising for a “Negro school,” return of a castaway, the birth of triplets, the exhibition of a live camel from Arabia, a fraudulent marriage, spousal abuse, a false charge of rape, the murder of an enslaved boy, death by alcohol, a hunting accident, robberies, obituaries, advertisements, and Franklin’s announcement of his editorial policy. …”
http://nationalhumanitiescenter.org/pds/becomingamer/ideas/text5/pennsylvaniagazette.pdf
Benjamin Franklin
“…Franklin’s Pennsylvania Gazette provided information about politics to the people. Ben Franklin used political cartoons to illustrate news stories and to heighten reader appeal. The May 9, 1754 issue included Join, or Die, which is widely considered the first American political cartoon. Devised by Franklin, the cartoon reflected concern about increasing French pressure along the western frontier of the colonies.
Statesmen
To protest the Stamp Act provisions, which required newspapers be printed on imported, stamped paper, Franklin had the November 7, 1765 edition of the Pennsylvania Gazette printed without date, number, masthead, or imprint. In doing so, he highlighted the impact of royal policies on colonial freedom and exerted colonists’ autonomy.
http://inventors.about.com/od/fstartinventions/a/Franklin.htm
2. What does the article say was a particularly disturbing form of advertisements in the 18th and 19th century?
A disturbing form of advertisement were notices of slave sales or appeals for the capture of escaped or runaway slaves with rewards for their return. (see photos below)
Background Information
Collecting 19th Century Authentic Newspapers
Rare News Papers
3. How did mass production of goods in the 1880’s affect advertising revenues and methods?
The mass production of goods in the 1880s such as canned food, soap, and cigarettes in great quantities required these businesses to first find buyers and second persuade the buyers to purchase their products.
In addition to the manufactures of mass produced goods, other businesses such as large retail department stores in rapidly growing cities turned to advertising to sell their goods.
As a result the total advertising volume increased from $200 million dollars in 1880 to nearly $3 billion in 1920.
Advertising agencies that before 1880 primarily sold advertising space in local newspapers and a limited number of magazines, expanded their service for national advertisers by designing copy and artwork and positioning the advertisements to attract buyer attention. Advertising agencies and their employees sought legitimacy and public approval with many in the advertising business dissociating themselves from the fraud and swindles of the patent medicine peddlers.
Background Information
History of Advertising 3/9
4. What character, introduced in 1955, changed one cigarette company’s target and launched the company into becoming the best-selling brand? What changed?
Marlboro cigarettes were originally targeted for woman as being “Mild as May”.
In 1955 the Philip Morris & Co. targeted the Marlboro brand of cigarettes at men in the ”Tatooed Man'” campaign.
The character was became known as The Marlboro Man.
The target of the advertising campaign changed from women to men.
In 1955 a number of medical research studies found that cigarettes may cause lung cancer.
In response to this, a number of cigarette companies added filters to their cigarettes.
Philip Morris used this opportunity to expand its customer base by adding men who were concerned about cancer by switching them to the Marlboro brand whose tobacco flavor was mild but now also had a filter and came in a flip top box.:
“Man-sized taste of honest tobacco comes full through. Smooth-drawing filter feels right in your mouth. Works fine but doesn’t get in the way. Modern Flip-top box keeps every cigarette firm and fresh until you smoke it.” –
~Phillip Morris Marlboro Advertisement
Background Information
The Marlboro Man
History of Advertising 1/9
The Marlboro Man
“…The Marlboro Man is a figure used in tobacco advertising campaign for Marlboro cigarettes. In the United States, where the campaign originated, it was used from 1954 to 1999. The Marlboro Man was first conceived by Leo Burnett in 1954. The image involves a rugged cowboy or cowboys, in nature with only a cigarette. The ads were originally conceived as a way to popularize filtered cigarettes, which at the time were considered feminine.
The Marlboro advertising campaign, created by Leo Burnett Worldwide, is said to be one of the most brilliant ad campaigns of all time. It transformed a feminine campaign, with the slogan “Mild as May”, into one that was masculine, in a matter of months. Although there were many Marlboro Men, the cowboy proved to be the most popular. This led to the “Marlboro Cowboy” and “Marlboro Country” campaigns.[1] …”
The Marlboro Man Meets the Surgeon General
“…Philip Morris saw its chance to reintroduce Marlboro in the early fifties when the first studies linking cigarette smoking to lung cancer were released. Consumers began feeling mislead by the established brands and dropped their old allegiances. They were willing to try other brands but were unable to break away from smoking completely, due to what would later be attributed to nicotine addiction. Disillusioned consumers turned to Marlboros, the new “safer” filtered brand. Ross B. Millhiser, president of Philip Morris in 1968, looked back on Marlboro’s window of opportunity and explained that “the filter revolution caused more switching than all the cigarette manufacturers with all their money could have induced.”(White 121) Unfortunately for Marlboro, formerly known to be “Mild as May”, the new filters were considered effiminate. The dilemma would be to appeal to the attitudes of an old group of customers with a new concern, addicted men who feared lung cancer.
Philip Morris took the challenge to a midwestern agency, the Leo Burnett Company of Chicago, and reintroduced Marlboro to the nation in 1955 with the “Tattooed Man” campaign. Joseph Cullman, then president and chief executive officer of Philip Morris Inc., explained, “We felt that West of the Alleghanies we could secure a better understanding and feel of grass-roots America and what it wanted in a cigarette.”(Esquire 8/60 146) The resulting campaign assured buyers, with television commercials and printed pages, that “You get a lot to like with Marlboro, filter, flavor, flip- top box.” The image of the “new Marlboro smoker as a lean, relaxed outdoorsman–a cattle rancher, a Navy officer, a flyer–whose tattooed wrist suggested a romantic past, a man who had once worked with his hands, who knew the score, who merited respect,”(Esquire 6/60 146) proved that there was nothing sissy or feminine about these filtered cigarettes. The first advertisements spoke directly to the masculine audience suggesting in a descriptive paragraph that they try “old fashioned flavor in a new way to smoke.” They reassured men that the filter did not change Marlboro quality and the
Man-sized taste of honest tobacco comes full through. Smooth-
drawing filter feels right in your mouth. Works fine but doesn’t
get in the way. Modern Flip-top box keeps every cigarette firm
and fresh until you smoke it. (Made in Richmond, Virginia, from
a new Marlboro Recipe) …”
“…Philip Morris, with the Marlboro cowboy, has capitalized on what the cigarette advertising industry realized as an unique quality in its products. “The physical characteristics of the standard brands are nearly identical and their individual demands are highly elastic, yet despite close similarity, consumers are not indifferent to the choice of brands but show enduring loyalties based upon very slight physical differences or upon irrational grounds.”(Tennant 163). The irrational appeal of the strong individual is bolstered by the strong geometric design of the red, white and black-lettered flip-top package. It was designed by Frank Gianininoto in 1954 and carefully tested through consumer surveys by Elmo Roper&Associates and the Color Research Institute.(Advertising Age 11/9/88) When displayed on open cigar counters consumer reaction was gauged on hidden cameras as their eyes settled on the bright packaging(Esquire 6/60). Like a cowboy’s holster for his favorite gun the packaging makes a statement. It is estimated that the average smoker removes his or her cigarettes 20-25 times a day. In 1987, Thirty-two years after the box was designed, Forbes magazine(2/9/87) polled smokers and offered them Marlboro cigarettes unaltered except in a generic brown box and at half price. Only 21% were interested. The public embraced the red box as a symbol of membership to the club that recognized the Marlboro Man as their spokes-person. A 1959 ad showed the Flip-top box as a unifying element “From the Klondike to Key West…. Every man is a ‘Marlboro Man’ once he discovers that Marlboro is for real smoking.” [Image 3]. The box is a carrying card available to everyone. It is visable proof of participation in or appreciation for a certain idealized way of life that not many actually get to experience. Consumers carrying the box were now investing themselves and their reputation in the positive image of the Marlboro Man. …”
http://xroads.virginia.edu/~class/marlboro/mman3.html
Marlboro Cigarettes
“…Since Marlboro filtered cigarettes were previously oriented mainly to the female smoking audience, Phillip Morris decided to extend the range of customers, touching the group of addicted male smokers who were afraid of acquiring lung cancer. Therefore advertising strategies were completely revised.
As a result the “Tattooed Man” campaign got under way in 1955. The new advertisements popularized the image of rugged men (a cattle rancher, a Navy officer, a flyer), – “whose tattooed wrist suggested a romantic past, a man who had once worked with his hands, who knew the score, who merited respect”. The new Marlboro smokers were portrayed smoking while performing manly tasks. “Man-sized taste of honest tobacco comes full through. Smooth-drawing filter feels right in your mouth. Works fine but doesn’t get in the way. Modern Flip-top box keeps every cigarette firm and fresh until you smoke it.” – Phillip Morris Marlboro Advertisement.
The campaign proved that there was nothing feminine about the filtered cigarettes and tripled sales by 1957. In 1954, the cowboy image was introduced and became the most popular Marlboro advertisement character ever. By 1963, the Marlboro cowboy became the only character in the marketing of Marlboro cigarettes. The geometric design of the red, white and black-lettered flip-top Marlboro package boosted the appeal of a strong independent individual.
By 1972, Marlboro cigarettes had become the most popular world-wide and have stayed that way for majority of years that have followed. By 1992, Financial World ranked Marlboro the world’s No. 1 most valuable brand, with a market worth of $32 billion. Currently, Philip Morris’ tobacco brands are in 180 markets, have a 38% market share in the US, are the top-selling cigarettes in the world, and the tenth-most valuable product brands overall.
http://www.cigoutlet.net/cigarettes/marlboro-cigarettes.html
Trivia: Marlboro Was a Woman’s Cigarette
“…Filtered cigarettes were considered feminine as reflected by Marlboro’s original slogan “Mild as May.” In the 1930s, Marlboro even changed the cigarette tips from ivory to red so they wouldn’t smear ladies’ lipstick.
In 1955 Philip Morris & Co. tried to change Marlboro’s feminine image with the “Tattooed Man” campaign, where a rugged cattle rancher, a Navy officer, and a flyer (all with muscular, tattooed hands) were shown holding a cigarette. Supposedly the tattoo was suggestive of “romantic past.” Later, ad genius Leo Burnett used the image of a cowboy to prove that the cigarettes weren’t for sissies, and thus “The Marlboro Man” was born. ..”
Marlboro
“…Marlboro (US: /ˈmɑrb(ə)roʊ/[1]) is the largest selling brand of cigarettes in the world. It is made by Philip Morris USA (a branch of Altria) within the US, and by Philip Morris International (now separate from Altria) outside the US. It is famous for its billboard advertisements and magazine ads of the Marlboro Man.
The brand is named after Great Marlborough Street, the location of its original London Factory. Richmond, Virginia is now the location of the largest Marlboro cigarette manufacturing plant.
Philip Morris, a London-based cigarette manufacturer, created a New York subsidiary in 1902 to sell several of its cigarette brands, including Marlboro. By 1924 they were advertising Marlboro as a woman’s cigarette based on the slogan “Mild As May”.
The brand was sold in this capacity until World War II when the brand faltered and was temporarily removed from the market. At the end of the war, three brands emerged that would establish firm holds on the cigarette market: Camel, Lucky Strike, and Chesterfield. These brands were supplied to US soldiers during the war, creating an instant market upon their return.
During the 1950s Reader’s Digest magazine published a series of articles that linked smoking with lung and other cancers. Philip Morris, and the other cigarette companies took notice and each began to market filtered cigarettes.[citation needed] The new Marlboro with a filtered end was launched in 1955. In the early 1960s Philip Morris invented “Marlboro Country” and distilled their manly imagery into the rugged cowboys known as the “Marlboro Men”. The famous slogan used on radio and television during the mid-’60s was, “Come to where the flavor is…come to MARLBORO COUNTRY”, backed by Elmer Bernstein’s theme from The Magnificent Seven.
In the USA, in order to comply with new regulations prescribed by the Food and Drug Administration, Marlboro had until June 22, 2010 to rebrand tobacco products marketed as “Lights”, “Ultra-Lights”, “Medium”, “Mild”, or any similar designation that yields an impression that some tobacco products are comparatively safe. Similar restrictions were applied in the European Union some years ago. …”
http://en.wikipedia.org/wiki/Marlboro_(cigarette)
Now visit this link and answer these questions in your Blog:
http://adage.com/century/timeline/index.html
1. What newspaper printed the first known advertisement?
In 1702 The Boston News-Letter’s printed the first known advertisement in the United States.
2. What magazine was the first magazine to carry $100 million annually in advertising?
Life magazine was the first magazine to carry $100 million annually in advertising.
3. What year did Congress prohibit broadcast advertising of cigarettes?
In 1971 Congress prohibited broadcast advertising of cigarettes.
4. What was The Associated Advertising Clubs of America?
In 1904 a group of advertising agencies, advertiser and media representatives formed The Associated Advertising Clubs of America.
Assignment 1 is due Monday, July 19 at 5 p.m.
Advertising Books–Videos
Hitting The Sweet Spot
By Lisa Fortini-Campbell, ISBN-13: 9781887229098
Positioning
By Al Ries and Jack Trout.
Brand Positioning by NextMove
Ladders in the Mind
Japanese Disease
Influence: The Paychology Of Persuasion
By Robert B. Cialdini, PhD., Harper Collins, ISBN-13: 9780061241895
Robert Cialdini – Renowned Expert in the Psychology of Influence, Negotiation & Communication
Robert Cialdini – Renowned Expert in the Psychology of Influence, Negotiation & Communication
Influence and Leadership
Truth, Lies and Advertising: The Art of Account Planning
By Jon Steel, ISBN13: 9780471189626
Jon Steel from WPP introduces and hosts the ‘Listen’ section
Guerrilla Advertising
By Jay Conrad Levinson and Charles Rubin, Mariner Books, ISBN 0395687187
Advertising Without an Agency
By Kathy J. Kobliski, Oasis Press, ISBN 1555714293
Hey, Whipple, Squeeze This: A Guide To Creating Great Advertising
By Luke Sullivan, John Wiley & Sons, ISBN-13: 9780470190739
Luke Sullivan Summarizes Ad Pro Session
Cutting Edge Advertising II
By Jim Aitchison,
The 33 Ruthless Rules of Local Advertising
By Michael Corbett, Pinnacle Books, ISBN 096673839X
The Anatomy of Buzz Revisited
By Emanuel Rosen, Doubleday, ISBN 0385496672
Interview with Emanuel Rosen at SES Toronto 2009
Firebelly Marketing | Duncan Alney and Emanuel Rosen | The Anatomy of Buzz Revisited
Emanuel Rosen keynote – PRSA-LA “New Media & Web 3.0”
Emanuel Rosen on generating buzz in the online and offline communities
http://search.barnesandnoble.com/The-Anatomy-of-Buzz-Revisited/Emanuel-Rosen/e/9780385526326–
The Advertising on the Internet
By Robin Lee Zeff and Brad Aronson, John Wiley & Sons, ISBN 0471344044
OGILVY ON ADVERTISING
David Ogilvy, Knopf Doubleday Publishing, ISBN-13: 9780394729039
A conversation about advertising, with David Ogilvy
Background Articles and Videos
Charlie Rose – Preview of interview with YouTube Co-founders
Honda Impossible Dream
Honda Ad
Oh Gode
Truth in Advertising
The Truth In Ad Sales
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