Introduction to Advertising

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Commonly Used Advertising Terms[edit]

-Advertiser The entity that lays for the advertisement, and who wishes to persuade others (in ways). An advertiser can be a person, group of persons, an organization, a company.

-Medium/Media (sing./pl.) The channel through which a message is communicated. Some media are mass, such as print and television, but other channels are not, such as the telephone, mail, and person-to-person. Media may be privately or publicly owned. For example, Newscorp is owned by Rupert Murdoch, but the BBC in the UK and PBS in the US are publicly held, sponsored by the government and/or through taxes or fees.

-Target Audience/Market The group of people, usually consumers, that an advertiser tries to reach by creating the correct message and using the correct media vehicles. A target is defined through either demographic or psychographic data.

-Demographics Demographic data include objective and measurable data about people and their lives. Census data is a common example. Age, ethnicity, occupation, income, zip code, number of children, marital status, gender are other examples. Even more specific information information can be measured: how often one purchases a car, goes shopping, home ownership, etc.

-Psychographics Psychographic data are less objective and often rely on self-reported information. Often, it has to do with what people like, dislike, personality traits. Examples of psychographic categories are: people who are depressed, people with lots of friends, people who are adventurous, like to travel, cook, or fish.

-Public Service Advertising Advertising that contains a socially positive message and encourages pro-social activity. It may not be paid for by an advertiser (the advertising time or space may be donated). Usually, public service advertising is generated by a non-profit advocacy group or a governmental organization. Common examples include anti-drug advertising, support the troops, and pro-recycling efforts. In order for TV stations to receive a license from the FCC, they must agree to provide a certain amount of free time for Public Service Advertising.

The Purposes of Advertising[edit]

Advertisers consider advertising a way to communicate with a particular audience. The overarching purpose of advertising is to increase an advertiser's revenue and encourage purchase of the product or service. The more immediate purposes of any particular advertisement can include: -Awareness of the product category These are most common with a new kind of product category, for example, when VCRs became available, advertisers ran advertisements explaining how VCRs worked and what they could do, rather than specifically telling consumers to buy a particular brand. The immediate purpose for these ads is education about the product category - the long term purpose is to encourage purchase.

-Awareness of the brand or product These advertisements are most common when an advertiser introduces a new product or brand in a category that consumers are already aware of. For example, when a company introduces a new flavor of potato chips. Consumers are familiar with snack foods and chips, but perhaps not this specific brand or flavor. The immediate purpose is awareness. Ideally, the consumer is then interested and will engage in trying the product, leading to purchase, and loyalty to the new product or brand

Targeting[edit]

Advertisers use research and other insights to determine which consumers to focus their advertising effort on. Targeting also helps advertisers make creative decisions as well as other marketing decisions.

Case study: According to Nike company lore, one of the most famous and easily recognized slogans in advertising history was coined at a 1988 meeting of Nike’s ad agency Wieden and Kennedy and a group of Nike employees. Dan Weiden, speaking admiringly of Nike’s can-do attitude, reportedly said, “You Nike guys, you just do it.” The rest, as they say, is (advertising) history. After stumbling badly against archrival Reebok in the 1980s, Nike rose about as high and fast in the ‘90s as any company can. It took on a new religion of brand consciousness and broke advertising sound barriers with its indelible Swoosh, “Just Do It” slogan and deified sports figures. Nike managed the deftest of marketing tricks: to be both anti-establishment and mass market, to the tune of $9.2 billion dollars in sales in 1997. —Jolie Soloman “When Nike Goes Cold” Newsweek, March 30, 1998 The Nike brand has become so strong as to place it in the rarified air of recession-proof consumer branded giants, in the company of Coca- Cola, Gillette and Proctor & Gamble. Brand management is one of Nike’s many strengths. Consumers are willing to pay more for brands that they judge to be superior in quality, style and reliability. A strong brand allows its owner to expand market share, command higher prices and generate more revenue than its competitors. With its “Just Do It” campaign and strong product, Nike was able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent, from $877 million in worldwide sales to $9.2 billion in the ten years between 1988 and 1998. Nike spent $300 million on overseas advertising alone; most of it centered around the “Just Do It” campaign. The success of the campaign is that much more remarkable when one considers that an estimated 80 percent of the sneakers sold in the U.S. are never used for the activities for which they have been designed. Nike’s marketing tactics in the ‘80s, and in particular its campaign against Reebok, gambled on the idea that the public would accept sneakers as fashion statements. Nike later cashed in on the jogging/fitness craze of the mid 1980s, during which its “Just Do It” campaign expanded to attract the female and teenage consumer, in addition to the stalwart 18 – 40-year-old male consumer. (Nike was losing ground to Reebok during this time, thanks to the explosion of aerobics.) Phil Knight, the founder and CEO of Nike, suffused his company and ads with the idea of the intense, inwardly focused competitor. The ads rarely focused on the product itself, but on the person wearing the product. Heroes and hero worship abound on the Nike campus in Beaverton, Oregon. The “Just Do It” campaign seemed to capture the corporate philosophy of grit, determination and passion, but also infused it with something hitherto unknown in Nike ads—humor. Nike had always been known for its “detached, determined, unsentimental” attitude. “In a word, [Nike is] cool.” The new ads retained that attitude, but several of the original 12 “Just Do It” ads incorporate jokes, explicit and implicit, to make their point. The Bo Jackson ad stands out. Jackson is seen working out at several different activities, joking while on a bike machine, “Now when is that Tour de France thing?” and after slam dunking a basketball contemplates “Air Bo.” “I like the sound of that,” he says. The “Just Do It” campaign received mixed ratings, ranging from “an instant classic” to “sociopathic.” One critic went so far as to say the ads were “an impatient- bordering-on-contemptuous exhortation to the masses. Cool is one thing. Poverty of warmth is another.” Eventually the campaign was credited with embracing not just resolve and purpose, but also the “beauty, drama and moral uplift of sport—even, every now and then, fun.” Linking the Campaign to Consumer Needs Through its “Just Do It” campaign, Nike was able to tap into the fitness craze of the 1980s. Reebok was sweeping the aerobics race and gaining huge market share in the sneaker business. Nike responded to that by releasing a tough, take-no- prisoners ad campaign that practically shamed people into exercising, and more importantly, to exercising in Nikes. The “Just Do It” campaign was also effective in reassuring consumers that the brand they picked, Nike, was a quality brand. This was most effectively portrayed by celebrity sports figures such as Bo Jackson, John McEnroe and later, Michael Jordon. If Michael Jordan can play an entire NBA season in a pair of Nikes, certainly the average weekend warrior can trust the shoes’ durability. Celebrity endorsements also appealed to the consumers’ sense of belonging and “hipness,” as Nike became a self-fulfilling image prophecy: if you want to be hip, wear Nike; if you are hip, you are probably wearing Nike. The “Just Do It” campaign was able to turn sweaty, pain-ridden, time-consuming exercise in Nike sneakers into something sexy and exciting. Perhaps most importantly, even those who were not in fact exercising in Nikes (the vast majority) still wanted to own them. By focusing on the aura and image conveyed by the fitness culture, Nike was able to attract those who wanted the image without incurring the pain. RES3:990108 2 Linking the Campaign to Strategy Nike was in a tough spot in the late 1970’s. It was being swamped by Reebok’s quick initiative on designing aerobics shoes and needed to respond dramatically and forcefully. It could be argued that the “Just Do It” campaign was not only about sneakers but about Nike’s own renaissance. No longer content to be the choice running shoe of a few thousand marathoners and exercise nuts, Nike wanted to expand its operation to target every American, regardless of age, gender or physical-fitness level. “Just Do It” succeeded in that it convinced Americans that wearing Nikes for every part of your life was smart (the shoes are designed for comfort) and hip (everyone else is wearing them, you too can belong to this group.) Nike took its own advice and “Just Did It” by directly attacking Reebok in the sport-shoe market. Why Was the Campaign Successful? The timing of this campaign could not have been better. Americans were buying exercise equipment at a record pace in the mid 1980s, and body worship was at an all time high. Nike tapped into consumers’ desire for a healthy lifestyle by packaging it into a pair of $80 sneakers. The ads were often humorous, appealing to the cynic in all of us, while imploring consumers to take charge of their physical fitness. The ads made starting an exercise regime seem like a necessity, and the way to start exercising was to buy Nike merchandise. More importantly, by owning Nikes you were instantly a member of a desirable group. The campaign was easily identifiable (to the point that Nike eventually did not even bother to display the word “Nike” in commercials—the swoosh was enough) and stayed true to its message.

Your turn[edit]

Create and distribute some advertising materials for Wikiversity. Describe your work below.

See also[edit]