The Advertising Industry
- "a system of communication through which goods and services are brought to the attention of the general public" (Johnston, 196).
? Certain advertising is targeted at different target segments
? General public changes
- See Johnston on history of advertising in Canada
- Macalister piece as well is helpful for advertising
Why Advertise?
- Form of market competition (To increase or at least maintain, sales and profits)
? Which kind of markets are best to advertise in?
? The most important in "oligopolistic" markets (where a few large producers dominating a particular market). Those few have a lot to gain and a lot to lose.
- Barriers to entry
? Costs
? Market Share
? Economies of Scale
? Big Corporations keep out little guys.
- Advertising more effective in persuading consumers to buy particular brands rather than particular products
? Seeing car ads doesn’t make you buy a car. But if you were thinking of buying a car, advertising influences you on which brand to buy or model.
? Advertising dollars are spent on brand names than products.
§ We all have to buy clothing, but where are we going to buy it.
? Brands are what pulls people in.
- Persuasion vs. information
? Advertising is mostly about persuading people
? Persuasive advertising creates an image in mind of consumer, and is more successful that informational advertising
? Informational ads show you people using products, give you information.
? Informational advertising is more likely to be institutional advertising
- Advertising is everywhere. Cant go out without being influenced. Huge multi billion dollar industry
? Firms advertising to increase and maintai ...