Статья: Методичка по Английскому языку для экономистов
Advertising is impersonal, usually paid communication intended to inform,
educate, persuade, and remind.
Advertising is a sophisticated form of communication that must work with
other marketing tools and business elements to be successful. Advertising
must be interruptive — that is, it must make you stop thumbing through the
newspaper or thinking about your day long enough to read or hear the ad.
Advertising must also be credible, unique, and memorable in order to work.
And finally, assuming the actual advertising is built upon a solid
positioning strategy, enough money must be spent to provide a media schedule
for ad frequency, the most important element for ad memorability.
History of Advertising
Marketing is more than just distributing goods from the manufacturer to the
final customer. It comprises all the stages between creation of the product
and the after-market which follows the eventual sale. One of these stages is
advertising. The stages are like links in a chain, and the chain will break
if one of the links is weak. Advertising is therefore as important as every
other stage or link, and each depends on the other for success.
The product or service itself, its naming, packaging, pricing and
distribution, are all reflected in advertising, which has been called the
lifeblood of an organization. Without advertising, the products or services
cannot flow to the distributors or sellers and on to the consumers or users.
2. Early forms
Advertising belongs to the modern industrial world, and to those countries
which are developing and becoming industrialised. In the past when a
shopkeeper or stall-holder had only to show and shout his goods to passers-
by, advertising as we know it today hardly existed. Early forms of
advertising were signs such as the inn sign, the red-and-white striped
barber's pole, the apothecary's jar of coloured liquid and the wheelwright's
wheel, some of which have survived until today.
3. Effect of urban growth
The need for advertising developed with the expansion of population and the
growth of towns with their shops and large stores; mass production in
factories; roads and railways to convey goods; and popular newspapers in
which to advertise. The large quantities of goods being produced were made
known by means of advertising to unknown customers who lived far from the
place of manufacture.
Advertising grew with the development of media, such as the coffee-house
newspapers of the seventeenth century, and the arrival of advertising
agencies nearly 200 years ago, mainly to handle government advertising.
4. Advertising and the modem world
If one looks at old pictures of horse buses in, say, late nineteenth-century
London one will see that they carry advertisements for products famous today,
a proof of the effectiveness of advertising. Thus the modern world depends on
advertising. Without it, producers and distributors would be unable to sell,
buyers would not know about and continue to remember products or services,
and the modern industrial world would collapse. If factory output is to be
maintained profitably, advertising must be powerful and continuous. Mass
production requires mass consumption which in turn requires advertising to
the mass market through the mass media.
16. Advertising involvement
Although advertising is listed as a single element it is associated with
almost every other element, borrowing from them or interpreting them.
(a) The volume, emphasis and timing of advertising will depend on the product
life cycle situation. For instance, at the introductory or recycling stages,
the weight of advertising will be heavier than at the maturity or decline
(b) Marketing research will provide evidence of motives, preferences and
attitudes which will influence not only the copy platform or advertising
theme but the choice of media through which to express it.
(c) Naming and branding may be initiated by the advertising department or
agency, and clearly plays an important role in advertisement design.
(d) The product image will be projected by advertising.
(e) The market segment will decide the tone or style of advertising, and the
choice of media.
(f) Pricing can play an important part in the appeal of the copy. Is the
product value for money, a bargain or a luxury? Pricing can be a very
competitive sales argument. People are very price conscious.
(g) The product mix has many applications. In advertising, one product may be
associated with another, or each brand may require a separate campaign.
(h) Packaging can be a vital aspect of advertising, as when pack recognition
is sought. It is itself a form of advertising, especially at the point-of-
sale, as in a supermarket when the package often has to identify the product
and literally sell it off the shelf.
(i) Distribution involves trade advertising such as by direct mail, in the
trade press and at exhibitions.
(j) The sales force has to be familiarised with advertising campaigns which
will support their efforts in the field.
(k) Market education is a public relations activity aimed at creating a
favourable market situation in which advertising will work.
(1) Corporate and financial public relations often uses institutional
advertising in the business press.
(m) Test marketing requires a miniature advertising campaign simulating the
future national campaign.
(n) Advertising research includes copy-testing, circulation and readership
surveys and statistics, recall tests, tracking studies and cost-per-reply and
(o) Sales promotion can augment or even replace traditional advertising.
(p) The after-market calls for advertising to make customers aware of post-
(q) The maintenance of customer interest and loyalty may be achieved by
advertising which promotes additional uses and accessories, or simply
Advertising is used to create consumer interest in a product and also to
increase the sales of that product. It may be described under three headings:
1 descriptive advertising;
2 persuasive advertising;
3 both descriptive and persuasive advertising together.
This type of advertising gives the most: important facts about the product.
It is the cheapest form of advertising and is used a lot by the small trader
selling through the local paper. It will usually say:
1 what the product is;
2 how much it will cost;
3 where it may be obtained.
Example: 1972 Ford Escort £500. Telephone London 1234.
This type of advertising tries to persuade people that the product which is
being advertised has a special quality or usefulness which makes it much better
than other similar products. It is used a lot in television advertising where
consumers arc persuaded to think that if they buy that product they will become
very popular or very happy. This is a psychological approach, and it is hoped
by the advertiser that people will be persuaded to buy the product. The method
uses 'association of ideas'. Brand names such as Guinness and Oxo
are used in persuasive advertising.
Example: 1983 Ford Capri £2000 - good condition - low mileage, a
bargain, first to see will buy this attractive car.
There are both national newspapers and local newspapers. Advertising in the
national press is usually much more expensive than advertising in the local
press. Both types of advertising are sold by the column centimetre, the half
page and the page. A page in a national newspaper may cost many thousands of
pounds for one day. This is because national newspapers have very large
circulations (they are read by a lot of people).
Television advertising in Great Britain is controlled by the Television Act
1954. It is the most expensive kind of advertising and costs many thousands
of pounds (on a national network) for just a few seconds of television time.
Charges are made by the second. If the advertisement is shown at a time when
relatively few people are watching, then it will be cheaper. If it is shown -
at a time when many people are watching (peak viewing time) then the charges
are much higher. Television advertising is mostly used by large organizations
and the nationalized industries.
This kind of advertising is much cheaper than television advertising. It is
very popular in the United States. The most popular radio station in Europe
is Radio Luxembourg, which carries a lot of commercial advertising. In Great
Britain radio advertising is usually carried by local independent radio
Hoarding advertisements are usually put up in eye-catching positions at the
side of the road. The cost of the advertisement will depend on where the
hoarding is and how large it is. If it is in a very good position and near
the centre of the city where it will be seen by many potential customers,
then it will probably be quite expensive. The sites are usually rented out to
clients on a monthly basis by an advertising agency.
These are quite often used by local traders to advertise their goods and
services. They are expensive in labour costs and are not very effective.
The inside and outside of buses, trains, vans and other kinds of public
transport are used in transport advertising. The most expensive position is
where the advertisement is most likely to be seen by the public such as the
back of a bus or the inside of a bus, especially at the front where the
potential customer will be seated looking at it. The most inexpensive
position is upstairs on the bus or at the back inside the bus. It is
difficult to tell whether transport advertising is effective.
The cinema screen is used for advertising by local and national traders. Like
transport advertising, it is difficult to judge how effective cinema
These are mostly used by large firms. The signs are usually displayed in city
These are mostly used as an advertising medium by large manufacturing and
distributing companies. They are read by persons and companies who are
interested in this particular kind of product, and the journals will also
contain other information that is useful to the readers. Technical journals are
usually printed once a month. Examples are The Hairdresser, The Radio and
Television Magazine and the Farmers Live Stock Journal. Advertising
in technical journals is a very good method of advertising.
Trade fairs and shows
The Motor Show, the Boat Show, the Radio Show and the Ideal Homes Exhibition
are a few examples of trade fairs and shows. Dairy products may be advertised
at agricultural shows. Aircraft may be advertised and displayed at the
Farnborough Air Show. The disadvantage is that the shows and exhibitions are
expensive to organize.
It is very difficult for advertisers to tell whether a particular
advertisement or method of advertising has been effective, but there is no
doubt that without advertising the customer would never hear of some
products. Perhaps the most effective advertising of all is the recommendation
of the product by a satisfied customer to a potential customer – advertising
by word of mouth.
The language of advertising
Here are some methods used in persuasive advertising. Read them quickly.
Decide which appeal to you and which don’t. Now think of an example for each
type from your country.
1. Repetition The simplest kind of advertising. A slogan is
repeated so often that we begin to associate a brand name with a particular
product or service.
2. Endorsement A popular personality is used in the advertisement.
3. Emotional appeal Advertising often appeals to basics such as
mother-love, sex, manliness, feminity.
4. Scientific authority Sometimes the advert shows a person in
a white coat (i.e. a scientist) telling us about the product. More often it
mentions “miracle ingredients” or “scientific testing” to persuade us.
5. “Keeping up with the jones’s” An appeal to pure snob value.
You want to appeal to be richer or more successful than your neighbours.
6. Comparison The advert lists the qualities of a product in
direct comparison with rival products.
7. An appeal to fear or anxiety This type is similar to 3, but
works on our fears.
8. Association of ideas This is usually visual. Until it became
illegal in Britain, cigarette advertising showed attractive, healthy people
smoking in beautiful rural situations.
9. Information If a product is new, it may be enough to show it
and explain what it does.
10. Special offers/free gifts This is a very simple and direct
appeal – it’s half a price!
11. Anti-advertising This is a modern version which appeals to the
British sense of humour. It makes fun of the techniques of advertising.
Do you agree that the only background for the problems with brand names would
- wrong pronunciation;
- wrong association;
- wrong translation.
Types of advertising
1. Scope of advertising
Advertising serves many purposes and many advertisers, from the individual
who places a small classified advertisement in his local newspaper to the big
spender who uses networked TV to sell popular brands to the nation's
It is possible to identify seven main categories of advertising, namely
consumer, industrial, trade, retail, financial, direct response and
3. Different kinds
There are two kinds of goods bought by the general public, consumer goods
and consumer durables, which together with consumer services are
advertised through media addressed to the appropriate social grades.
4. Consumer goods
These are the numerous goods to be found in the shops, those which enjoy
repeat sales like foods, drinks, confectionery and toiletries being called
Fast Moving Consumer Goods, (FMCGs).
5. Consumer durables
Usually more expensive and less frequently bought, consumer durables are of a
more permanent nature than consumer goods and include clothes, furniture,
domestic appliances, entertainment goods like radio, television and video,
and mechanical equipment from lawn-mowers to motor-cars.
6. Consumer services
They include services for security and well-being like banking, insurance,
investment, repairs and maintenance, and those more to do with pleasure such
as hotels, restaurants, travel and holidays.
7. Social grades
The social grades system makes it possible to identify certain groups of
people—prospective buyers—and then to pinpoint the media which will
reach them most effectively.
8. Media of consumer advertising
The media of consumer advertising will tend to be those with wide appeal, and
even when more specialist journals such as women's magazines are used they
will still have large circulations. In fact, the term 'consumer press' is
applied to the publications which are displayed for sale in newsagents shops,
on news-stands and on newspaper vendors' pitches'
Most of the trade, technical and professional journals have other forms of
distribution such as special orders placed with newsagents, postal
subscription or free postal controlled circulation. Controlled circulation
are not to be confused with membership or subscription magazines. They are
mailed (free of charge) to selected readers plus those who have requested
In Britain there are also hundreds of 'free' local newspapers which are
delivered door-to-door every week. With saturation coverage of urban areas
they provide good advertising media for many local businesses.
The primary media of consumer advertising are the press, radio, television,
outdoor and to a limited extent cinema, supported by sales literature,
exhibitions and sales promotion. We should not forget sponsorship, especially
the sponsorship of many popular sports which in turn can be supported by
arena advertising at the sports venue.
The purpose of industrial advertising is twofold:
(a) to promote sales of equipment and services used by
industry—machinery, tools, vehicles, specialist consultancy, finance and
insurance come within this category;
(b) to promote sales of raw materials, components and other items used in
industrial production—under this heading come metals, timber, plastics, food
ingredients, chemicals and parts for assembly into finished equipment from
watches to aircraft.
Hardly any of these products and services will be bought by consumers, except
as replacements as when a motor-car needs a new battery or tyres. Unless the
formula or specification is stated, consumers will be unaware of most
10. Media of industrial advertising
The suppliers of services, equipment, raw materials and components will
usually advertise in media seldom seen by the general or consumer public. The
media used will consist of trade and technical journals, technical literature
and catalogues, trade exhibitions, direct mail, and technical demonstrations
and seminars. Technical journals will have smaller circulations than the
consumer press, and exhibitions will tend to have fewer exhibitors and
smaller attendances than public exhibitions open to the general public; in
fact, admission is usually by ticket or business card. The amount of money
spent on advertising will be far less, and there may be more reliance on
market education using public relations techniques such as video
documentaries, external house journals and technical feature articles.
11. Special characteristics
Industrial advertising differs in yet another way. Whereas consumer
advertising may be emotive, industrial advertising has to be more detailed
and informative, although not unimaginative. Trade journals provide valuable
international market-places for thousands of products and services,
maintaining sales of long-established ones and introducing new ones.
Public relations activities, while not to be regarded as free advertising,
may be more effective and economical, especially when the need is to educate
the market and create knowledge and understanding.
Trade advertising is addressed to distributors, chiefly wholesalers, agents,
importers/exporters, and numerous kinds of retailers, large and small. Goods
are advertised for resale.
The purpose of trade press advertising is to inform merchants and traders
about goods available for resale, whether it reminds them about well-
established brands, introduces new lines or, as is often the case, announces
special efforts to help retailers sell goods, e.g. price reductions, better
trade terms, new packages, consumer advertising campaigns or sales promotion
schemes. Such advertising invites enquiries and orders and also supports the
advertiser's field salesmen when they call on stockists.
14. Media of trade advertising
The trade press may or may not be used for this kind of advertising. There
could be a mix of two or three media addressed to the trade. Direct mail is
often used, especially when it is necessary to provide a lot of information
such as consumer advertising campaign schedules giving dates and times when
and where advertising will be taking place in the press or on radio and/or
Another useful medium is the trade exhibition, sponsored by a trade magazine
or trade association, which will be attended by distributors. Some of the
larger exhibitions may also be open, or open on certain days, to the general
public as well, e.g. motor-car and furniture exhibitions.
Occasionally, commercial television time may be bought to tell retailers
about new lines, or retailers may be mailed to tell them that consumer
advertising campaigns are about to appear on TV.
15. Special characteristics
Since the object of trade advertising is to encourage shopkeepers (whether large
chains or one-man businesses) to stock up the product (especially to achieve
adequate distribution in advance of a consumer advertising campaign),
emphasis will be placed on the advantages of so doing. The advantages will be
higher sales and more profits, and the appeal will be to the retailer's desire
to make money. In so doing, trade advertising will also have to compete with
the 'selling-in' activities of rival manufacturers.
Trade advertising will be seen as part of the total advertising campaign for
the product and so will be produced by the same advertising agency that
handles the consumer advertising. However, whereas consumer advertising aims
to persuade the consumer about the benefits to be gained from buying the
product, trade advertising aims to persuade the retailer about the benefits
which will result from selling the product. Trade advertising supports
distribution. It prepares the way. There is no point in advertising products
and encouraging consumers to buy them if the goods are not in the shops. The
demand created by consumer advertising must be satisfied by the availability
of the goods in the shops. That is what is meant by 'adequate distribution'.
If the advertised goods cannot be bought, customers will buy either nothing
or, worse still, a rival product!
Here we have a form of advertising which lies between trade and consumer
advertising. The most obvious examples are those for department stores and
supermarkets, but it can include the advertising conducted by any supplier
including a petrol station, restaurant or insurance broker.
A major form of retailing nowadays is direct response marketing or retailing
without shops. This is the modern form of mail-order trading which has moved
from the traditional club catalogues to sophisticated off-the-page and direct
mail campaigns for products and services, of which financial houses and
department stores have become leading participants.
The purpose of retail advertising is threefold, as outlined below.
(a) To sell the establishment, attract customers to the premises and, in
the case of a shop, increase what is known as 'store traffic', that is the
number of people passing through the shop. If they can be encouraged to step
inside they may possibly buy something which they would not otherwise be
tempted to buy.
(b) To sell goods which are exclusive to the shop. Some distributors are
appointed dealers for certain makes, e.g. the Ford dealer. Others, such as
supermarkets, sell 'own label' goods, having goods packed by the manufacturer
in the name of the retailer. All the goods in the shop may bear the same brand,
or certain lines such as tea, coffee, biscuits or baked beans may bear the
retailer's own label.
(c) To sell the stock of the shop, perhaps promoting items which are
seasonal, or presenting a representative selection, or making special offers.
The latter could be regular policy, or could be organised as shopping events
such as winter or summer sales.
18. Media of retail advertising
The principal of media for retail advertising are:
(a) local weekly newspapers, including numerous free newspapers which
gain saturation coverage of residential areas by being delivered from door to
(b) regional daily newspapers, of which most are 'evenings';
(c) public transport external posters and internal cards, and arena
advertising at sports grounds;
(d) direct mail to regular or account customers, and door-to-door leaflet
(e) regional commercial television;
(f) independent local radio;
(g) window bills and point-of-sale displays within the shop;
(h) window and in-store displays;
The shop itself is a considerable advertising medium, and it may well be a
familiar landmark. Marks &: Spencer rarely advertise, but their shops are
so big they advertise themselves. With retail chains, the corporate identity
scheme will quickly identify the location of a branch.
19. Special characteristics
Retail advertising is characterised by four main aspects: creating an image
of the shop, establishing its location, variety of goods offered, and
competitive price offers. Nearly always, the object of the advertising is to
persuade people to visit the shop, although telephone ordering and the use of
credit accounts and credit cards is a growing feature.
It is probably difficult to put a limit on what can be contained under this
heading, but broadly speaking financial advertising includes that for banks,
savings, insurance and investments. In addition to advertising addressed to
customers or clients it can also include company reports, prospectuses for
new share issues, records of investments in securities and other financial
Some, like building society and National Savings advertisements, may be
addressed to the general public while others will appear in the financial and
business press only.
The object of financial advertising may be to borrow or lend money, conduct
all kinds of insurance, sell shares, unit trusts, bonds and pension funds or
report financial results.
22. Classes of financial advertising
The main categories in this field are as follows.
(a) Banks advertise their services which today are not confined to
traditional bank accounts but include deposits, loans, insurance, house
purchase, wills and executorship and advice on investment portfolios. Some
banks specialise in certain areas of banking, and others concentrate on certain
kinds of business.
(b) Friendly societies and private medical care organisations like BUPA
offer schemes to provide insurance in time of illness.
(c) Building societies both borrow money from savers and lend money to
house-buyers. Most of their advertising is directed at not only raising funds
but keeping funds so that they have sufficient money to meet loan applications.
Competitive interest rates are important sales points, and today in Britain
there is rivalry between building societies, banks and insurance companies for
the same kind of business.
(d) Insurance companies exist to insure against almost any risk from big
commitments like ships and aircraft worth millions to covering [he risk that
rain may stop play. Some insurance not only covers risks but provides benefits
to savers or pensions in old age. In the cases of fire and theft, insurance
companies are also selling peace of mind should damage or loss be suffered.
(e) Investments are offered, not only in share issues but in unit trusts
and other investments in which smaller investors can share in the proceeds of a
managed portfolio of shares.
(f) Savings and banking facilities are offered through post offices which
sell National Savings certificates and various bonds and operate the Giro and
Post Office banks.
(g) Brokers offer insurance, pension and investment schemes and advise
their clients on how to manage such financial commitments. The Automobile
Association acts as a broker for motor insurance.
(h) Credit and charge card companies, such as Access, and Barclaycard,
American Express and Diners' Club, promote plastic money facilities, often on
an international scale.
(i) Local authorities borrow money from the public, usually on short-term
loans which are advertised.
(j) Companies announce their intentions and final dividends, giving
summaries of annual reports, and often offering copies of annual reports and
23. Media of financial advertising
Choice of media will depend on the target audience. Building societies appeal to
small savers and therefore use the mass media of the popular press and
television. The big national banks with branches everywhere also use the
national press and television. Investment advertising will appear in the
middle-class and business press. Prospectuses for share issues, which usually
occupy two or more pages, appear in newspapers like The Times and
Financial Times. Banks may take stands at exhibitions. They also produce
sales literature about their services, as do insurance companies especially in
the way of proposal forms.
24. Special characteristics
Financial advertising in the press, and especially the business press, tends
to occupy large spaces and contain detailed information necessary to explain
schemes and achieve confidence. The emphasis is generally on benefits which
are usually represented by figures such as interest rates and returns on
investments. Profit, benefits, security, confidence, credibility and
reputation are the keynotes of the copy appeals.
This form of advertising aims to recruit staff (including personnel for the
police, armed forces and other services) and may consist of run-on classified
advertisements or displayed classified, although other media such as radio
and television are sometimes used.
26. Different kinds
Recruitment advertising is mainly of two kinds, that inserted by employers
whether identified or using box numbers, and that placed by employment or
recruitment agencies which have been commissioned to fill vacancies.
27. Media of recruitment advertising
Except for the occasional recruitment advertisement on radio and television,
the media are mainly made up of the following categories of press.
(a) National newspapers. Different newspapers appeal to different target
groups, e.g. the managerial advertisements in the Daily Telegraph and
Sunday Times and the teacher advertisements in the weekly education feature
in the Guardian and the Independent.
(b) Trade, technical and professional journals. These are the more
obvious market-places for recruitment advertising addressed to those with
special skills, qualifications and experience.
(c) Regional press. Local dailies and weeklies are used to advertise
jobs offered by local employers.
(d) Free publications. A number of freely distributed publications gain
their revenue chiefly from recruitment advertising, e.g. those which are
distributed in the street to office workers such as secretaries. Recruitment
advertising is also featured in the free newspapers delivered weekly to homes.
28. Special characteristics
The art of recruitment advertising is to attract the largest number of
worthwhile applications at the lowest possible cost. The advantage of using a
recruitment or selection agency is that applications can be obtained
discreetly and they can be screened to provide employers with a short list of
the best candidates. Two skills have to be applied. The advertisements must
be so worded that they both sell the job and attract the best applicants,
while correct choice of media will bring the vacancy to the notice of the
largest number of good applicants as economically as possible.
The Higher Purpose of Marketing
What is the higher purpose of marketing? What should an enlightened marketer
try to accomplish?
This question is raised because managers sometimes lose sight of their
ultimate goals and settle for short-term gains of dubious benefit to
themselves and others. When they lose a sense of higher purpose, their work
becomes unsatisfying and their attitude cynical.
The most common view is that the marketer's goal is to maximize the market's
consumption of whatever the company is producing. In this view, the marketer
is a technician who engineers sales gains. Marketing success means selling more
and more gum, cars, and ice cream bars as if the consumer were a huge
consumption machine that must constantly be stuffed with goods and services.
Even if consumers don't want this much consumption, it is good for the economy
and creates jobs. Yet Adam Smith observed that hunger is limited by the size of
the human stomach. More generally, people will eventually run out of time to
consume all that they could buy. They may rebel against overeating and
overdressing, and start thinking "enough is enough" or even "less is more."
Frederick Pohl wrote a science-fiction short story, "The Midas Touch," in which
factories are completely automated and the goods roll out continuously and
people consume as much as they can in order not to be buried under the goods.
In the story, ordinary people are given high consumption quotas, while the
elite are excused from having to consume so much. Furthermore, the elite are
given the few jobs that are still left to do, so that they don't have to face
the bleakness of no work.
A sounder goal for the marketer is to aim to maximize consumer satisfaction.
The marketer's task is to track changing consumer wants and influence the
company to adjust its mix of goods and services to those that are needed. The
marketer makes sure that the company continues to produce value for the target
Even consumer satisfaction, however, is not a complete goal for the marketer.
The act of creating "goods" to satisfy human desires also creates some "bads"
in the process. Every car that is produced satisfies a transportation need
and at the same time contributes to the level of pollution in society. The
economist Kenneth Arrow noted that high gross national product also means
high gross national pollution. The sensitive marketer has to take
responsibility for the totality of outputs created by the business. First,
the marketer is a member of the public and therefore victimizing himself to
some extent. Second, the society has spawned consumerists, environmentalists,
and other public-action groups, who make life difficult for those firms that
are indifferent to the "bads" they create in the process of pursuing profits.
Ultimately, the enlightened marketer is really trying to contribute to the
quality of life. The quality of life is a function of the quantity and
need-satisfying quality of goods and services, the quality of the physical
environment, and the quality of the cultural environment. Too often the firm
rests its case on its ability to produce great quantities of goods and services
and does not pay enough attention to its impact on the other components of life
Marketing is the cornerstone discipline of some of the most successful
companies in America and a discipline of growing interest to companies and
nonprofit organizations throughout the world. All organizations face the
problem of how to increase value for target markets that are undergoing
continuously changing needs and wants. Organizations must thoughtfully define
their products, services, prices, communications, and distribution in a way
that meets real buyer needs in a competitively viable way. That is the task
Although selling is a very old subject, marketing is a relatively new
subject. It represents a higher-order integration of many separate functions
- selling, advertising, marketing research, new-product development, customer
service, physical distribution - that impinge on customer needs and
satisfaction. Many organizations at first resist marketing because it
threatens vested interests within the organization and their own concepts of
how to manage the organization effectively. Marketing gradually gets
established, however, first as a promotion function, later as a customer
service function, still later as an innovation function, then as a market
positioning function, and ultimately as an analysis, planning, and control
function. Few companies understand and install marketing in its full form
when first considering it. Even after marketing is effectively implemented in
an organization, there is a tendency for many managers to forget its main
principles in the wake of success.
Marketing's task in the organization is not only to help it recognize
business opportunities and serve the various publics but also to harness the
organization's energy to enhance the quality of life in society.
Marketing is human activity directed at satisfying needs and wants
through exchange processes.
Human Needs and Wants
The starting point for the discipline of marketing lies in human needs and
wants. Mankind needs food, air, water, clothing, and shelter to survive.
Beyond this, people have a strong desire for recreation, education, and other
services. They have strong preferences for particular versions of basic goods
There is no doubt that people's needs and wants today are staggering. In one
year, in the United States alone, Americans purchased 67 billion eggs, 250
million chickens, 5.5 million hair dryers, 133 billion domestic air travel
passenger miles, and over 20 million, lectures by college English professors.
These consumer goods and services led to a derived demand for more
fundamental products, such as 150 million tons of steel and 3.7 billion
pounds of cotton. These are a few of the wants and needs that get expressed
in a $1.3 trillion economy.
A useful distinction can be drawn between needs, wants, and
intentions, although these words are used interchangeably in common speech.
A need is a state of felt deprivation of some generic satisfaction arising
out of the human condition. People require food, clothing, shelter, safety,
belonging, esteem, and a few other things for survival. People actually need
very little. These needs are not created by their society or by
marketers; they exist in the very texture of human biology and the human
Wants are desires for specific satisfiers of these ultimate needs. A
person needs food and wants a steak, needs clothing and wants a Pierre Cardin
suit, needs esteem and buys a Cadillac. While people's needs are few, their
wants are many. Human wants are continually shaped and reshaped by social
forces and institutions such as churches, schools, corporations, and families.
Intentions are decisions to acquire specific satisfiers under the given terms
and conditions. Many persons want a Cadillac; only a few intend to buy one
at today's prices.
These distinctions shed light on the frequent charge by marketing critics that
"marketers create needs" or "marketers get people to buy things they don't
need." Marketers do not create needs; needs preexist marketers. Marketers,
along with other influentials in the society, influence wants. They suggest to
consumers that a particular car would efficiently satisfy the person's need for
esteem. Marketers do not create the need for esteem but try to point out how a
particular good would satisfy that need. Marketers also try to influence
persons' intentions to buy by making the product attractive,
affordable, and easily available.
The existence of human needs and wants gives rise to the concept of
products. Our definition of product is very broad:
A product is something that is viewed as capable of satisfying a need or want.
A product can be an object, service, activity, person, place, organization,
or idea. Suppose a person feels depressed. What might the person do to
get out of his or her depression? What products might meet the need to feel
better? The person can turn on a television set (object); go to a movie
(service); take up jogging (activity); see a therapist (person); travel to
Hawaii (place); join a Lonely Hearts Club (organization); or adopt a different
philosophy about life (idea). All of these things can be viewed as products
available to the "feeling depressed." If the term product seems
unnatural at times, we may substitute the term resource or offer
or satisfier to describe that which may satisfy a need.
In the case of physical objects, it is important to distinguish between them
and the services they represent. People do not buy physical objects for their
own sake. A tube of lipstick is bought to supply a service: helping the
person look better. A drill bit is bought to supply a service: making a
needed hole. Every physical object is a means of packaging a service. The
marketer's job is to sell the service packages built into physical products.
Marketing exists when people decide to satisfy needs and wants in a certain way
that we shall call exchange. Exchange is one of four ways in which a
person can obtain a product capable of satisfying a particular need.
The first option is self-production. A hungry person can relieve hunger
through personal efforts at hunting, fishing, or fruit gathering. The person
does not have to interact with anyone else. In this case there is no market and
The second option is coercion. The hungry person can forcibly wrest food
from another. No benefit is offered to the other party except the chance not to
The third option is supplication. The hungry person can approach someone
and beg for food. The supplicant has nothing tangible to offer except
The fourth option is exchange. The hungry person can approach someone
who has food and offer some resource in exchange, such as money, another good,
or some service.
Marketing centers on that last approach to the acquisition of products to
satisfy human needs and wants. Exchange assumes four conditions:
1. There are two parties.
2. Each party has something that could be of value to the other.
3. Each party is capable of communication and delivery.
4. Each party is free to accept or reject the offer.
If these conditions exist, there is a potential for exchange. Whether exchange
actually takes place depends upon whether the two parties can find terms of
exchange that will leave them both better off (or at least not worse off)
than before the exchange. This is the sense in which exchange is described as a
value-creating process; that is, exchange normally leaves both parties with a
sense of having gained something of value.
The concept of exchange leads naturally into the concept of a market:
A market is the set of all actual and potential buyers of a product.
An example will illustrate this concept. Suppose an artist spends three weeks
creating a beautiful sculpture. He has in mind a particular price. The question
he faces is whether there is anyone who will exchange this amount of money for
the sculpture. If there is at least one such person, we can say there is a
market. The size of the market will vary with the price. The artist may
ask for so high a price that there is no market for his sculpture. As he brings
the price down, normally the market size increases because more people can
afford the sculpture. The size of the market depends upon the number of persons
who have (1) an interest in the object, (2) the necessary resources, and (3) a
willingness to offer the resources to obtain it. These three things make up the
level of demand.
Wherever there is a potential for trade, there is a market. The term "market" is
often used in conjunction with some qualifying term that describes a human
need or product type or demographic group or
geographical location. An example of a need market is the relaxation
market, which exists because people are willing to exchange money for lessons
on yoga, transcendental meditation, and disco dancing. An example of a
product market is the shoe market, so defined because people are willing to
exchange money for objects called shoes. An example of a demographic market
is the youth market, so defined because young people possess purchasing power
that they are willing to use for such products as education, bikinis,
motorcycles, and stereophonic equipment. An example of a geographic market
is the French market, so defined because French citizens are a locus of
potential transactions for a wide variety of goods and services.
The concept of a market also covers exchanges of resources not necessarily
involving money. The political candidate offers promises of good government to
a voter market in exchange for their votes. The lobbyist offers
services to a legislative market in exchange for votes for the
lobbyist's cause. A university cultivates the mass-media market when it
wines and dines editors in exchange for more publicity. A museum cultivates the
donor market when it offers special privileges to contributors in exchange
for their financial support.
The Marketing Concept
The marketing concept is a management orientation that holds that the
key task of the organization is to determine the needs and wants of target
markets and to adapt the organization to delivering the desired satisfactions
more effectively and efficiently than its competitors.
In short, the marketing concept says "find wants and fill them" rather than
"create products and sell them." This orientation is reflected in various
contemporary ads: "Have it your way" (Burger King); "You're the boss" (United
Airlines); and "No dissatisfied customers" (Ford).
The underlying premises of the marketing concept are:
1. Consumers can be grouped into different market segments depending
on their needs and wants.
2. The consumers in any market segment will favor the offer of that
organization which comes closest to satisfying their particular needs and
3. The organization's task is to research and choose target markets and
develop effective offers and marketing programs as the key to attracting and
The selling concept and the marketing concept are frequently confused by the
public and many business people. Levitt draws the following contrast between
these two orientations:
Selling focuses on the needs of the seller; marketing on the needs of the
buyer. Selling is preoccupied with the seller's need to convert his product
into cash; marketing with the idea of satisfying the needs of the customer by
means of the product and the whole cluster of things associated with creating,
delivering and finally consuming it.
The marketing concept replaces and reverses the logic of the selling concept.
The selling concept starts with the firm's existing products and considers
the task as one of using selling and promotion to stimulate a profitable
volume of sales. The marketing concept starts with the firm's target
customers and their needs and wants; it plans a coordinated set of products
and programs to serve their needs and wants; and it derives profits through
creating customer satisfaction
Among the prime practitioners of the marketing concept is McDonald's
Corporation, the fast-food hamburger retailer.
In its short, twenty-year existence, McDonald's has served Americans and
citizens of several other countries over 27 billion hamburgers! Today it
commands a 20 percent share of the fast-food market, far ahead of its closest
rivals, Kentucky Fried Chicken (8.4 percent) and Burger King (5.3 percent).
Credit for this leading position belongs to a thoroughgoing marketing
orientation. McDonald's knows how to serve people well and adapt to changing
needs and wants.
Before McDonald's, Americans could get hamburgers in restaurants or diners,
but not without problems. In many places, the hamburgers were poor in
quality, service was slow, decor was poor, help was uneven, conditions were
unclean, and the atmosphere noisy. McDonald's was formulated as an
alternative, where the customer could walk into a spotlessly clean outlet, be
greeted by a friendly and efficient order-taker, receive a good-tasting
hamburger less than a minute after placing the order, with the chance to eat
it there or take it out. There were no jukeboxes or telephones to create a
teenage hangout, and in fact, McDonald's became a family affair, particularly
appealing to the children.
As times changed, so did McDonald's. The sit-down sections were expanded in
size, the decor improved, a very successful breakfast menu featuring Egg
McMuffin was added, and new outlets were opened in high-traffic parts of the
city. McDonald's was clearly being managed to evolve with changing customer
needs and profitable opportunities.
In addition, McDonald's management knows how to efficiently design and
operate a complex service operation. It chooses its locations carefully,
selects highly qualified franchise operators, gives them complete management
training and assistance, supports them with a high-quality national
advertising and sales promotion program, monitors product and service quality
through continuous customer surveys, and puts great energy into improving the
technology of hamburger production to simplify operations, bring down costs,
and speed up service.
A marketing orientation is also relevant to nonprofit organizations. Most
nonprofit organizations start out as product oriented. Thus many colleges
facing declining enrollments are now investing heavily in advertising and
recruitment activities. These organizations begin to realize the need to
define their target markets more carefully; research their needs, wants, and
values; modernize their products and programs; and communicate more
effectively. Such organizations turn from selling to marketing.
In recent years marketing has become a driving force in most companies.
Underlying all marketing strategy is "The Marketing Concept", explained in
THE MARKETING CONCEPT (We must produce what people want, not what we want to
produce) - This means that we PUT THE CUSTOMER FIRST (We organize the company
so that this happens) - We must FIND OUT WHAT THE CUSTOMER WANTS (We carry
out market research) - We must SUPPLY exactly what the customer wants.
We can do this offering the right MARKETING MIX "The Four P's". The right
PRODUCT at the right PRICES available through the right channels of
distribution: PLACE, presented in the right way: PROMOTION.
Nowadays, all divisions of a company are used to "Think Marketing". To think
marketing we must have a clear idea of:
what the customer needs,
what the customer wants;
what cruses them to buy.
What the product is to the customer: functional, technological, economical,
aesthetic, emotional, psychological aspects.
"FEATURES" (what the product is) + "BENEFITS" (which means that a company
that believes in marketing is forward thinking and doesn't rest its past
achievements: it must be aware of its strengths and weaknesses as well as the
opportunities and threats it faces in market (remember the letters "SWOT")).
More about "The marketing Mix" and the "Four P's"
PRODUCT: the goods or service that you are marketing. The product is not just
a collection of components, but includes its design, quality and reliability.
Products have a life cycle, and forward-thinking companies are continually
developing new products to replace products whose sales are declining and
coming to the end of their lives. A "total product" includes the image of the
product as well as its features and benefits (see below). In marketing terms,
political candidates and non-profit-making public services are also
"products" that people must be persuaded to "buy" and packaged attractively
(see Promotion below).
PRICE: making it easy for the customer to buy. The marketing view of pricing
takes account of the value of a product, its quality, the ability of the
customer to pay, the volume of sales required, the level of market saturation
and the prices charged by the competition. Too low a price can reduce the
number of sales just as significantly as too high a price. A low price may
increase sales but not as profitably as fixing a high, yet still popular,
price. As fixed costs stay fixed whatever the volume of sales, there is
usually no such thing as a "profit margin" on any single product.
PLACE: getting the product to the customer. Decisions have to be made about
the channels of distribution and delivery arrangements. Retail products may
go through various channels of distribution:
1. Producer - sells directly to end users via own sales force, direct
response advertising or direct mail (mail order).
2. Producer - retailers - end-users.
3. Producer - wholesalers/agents - retailers - end-users.
4. Producer - wholesalers - directly to end-users.
5. Producer - multiple store groups/department stores/mail order houses -
6. Producer - market - wholesalers - retailers - end-users.
Each stage must add, "value" to the product to justify the costs: the
middleman is not normally someone who just takes his "cut" but someone whose
own sales force and delivery system can make the product more easily and
cost-effectively available to the largest number of customers. One principle
behind this is "breaking down the bulk" the producer may sell in minimum
quantities of, say, 10000 to the wholesaler, who sells in minimum quantities
of 100 to the retailer, who sells in minimum quantities of 1 to the end-user.
A confectionery manufacturer doesn't deliver individual bars of chocolate to
consumer: distribution is done through wholesalers and then retailers who
each "add value" to the product providing a good service to their customers
and stocking a wide range of similar products.
PROMOTION - presenting the product to the customer. Promotion involves
considering the packaging and presentation of the product, its image, the
product name, advertising and slogans, brochures, literature, price lists,
after-sales service and training, trade exhibitions of fairs, public
relations, publicity, and personal selling's, where the seller develops a
relationship with the customer.
Every product must process a "unique selling proposition" (USP) - features
and benefits that make it unlike any other product in its market.
In promoting a product, the attention of potential customers is attracted and
an interest in the product aroused, creating a desire for the product and
encouraging customers to take prompt action ("AIDA").
Direct Mail and Direct Response
Shopping without shops or direct marketing has become very big business,
aided by direct mail, TV commercials and teletext, off-the-page selling, the
telephone, the computer, and the credit card. Mail order nowadays better
known as direct or direct response marketing. In Britain, direct mail takes
third place to press and television and takes up 10 per cent of the total
advertising expenditure. It is also an excellent medium for international
advertising when it is more economical to airmail selected prospects than to
advertise in the press which may be very limited anyway.
Confusion of terms can be avoided by remembering that direct mail is an
advertising medium but mail order (or direct response) is a form of
distribution, that is, trading by mail whatever medium is used for
advertising sales offers. Consequently, direct mail is not limited to direct
marketing: a retailer can use direct mail to attract shoppers to his store.
Characteristics of direct mail
It is addressed to selected, named recipients or at least to chosen people at
selected addresses whether they be householders or managing directors. The
quantity can be controlled, the message can be varied to suit different
groups of people, and the timing can be controlled or at any rate estimated
within postal limits.
Because of the controls mentioned above, it is economical in the sense that
even the selected lists can be culled of unwanted addresses. De-duplication
can be applied when a number of lists are being used in which certain names
are repeated. It is also economical because in a mail shot more copy and
illustrations can be used than would fill a whole page broadsheet newspaper,
and at a fraction of the cost.
Unlike any other medium, except possibly the telephone, it is a one-to-one
personal medium, like a conversation on paper. Generally, people like
receiving mail, and if the recipient is well-chosen the mail shot will be
welcomed. This medium is also personal in the sense that sales letters and
envelopes can be addressed by name (personalised). Using special techniques
like laser printing, dramatic and colourful effects can be achieved with the
recipient's name inserted at various points in the body of the letter itself.
A direct mail campaign can be mounted very quickly, in a few hours if
necessary given the facilities to write and reproduce a sales letter, and
pack and post it with or without an enclosure. It is therefore a very
flexible medium which can be used in an emergency.
For those advertisers who (a) have or can hire a reliable mailing list
and (b) need to supply considerable information, direct mail can be
their first line or primary advertising medium. In fact, they may use no other,
except perhaps sales literature as enclosures. Others may use press advertising
to produce enquiries or initial orders which provide a mailing list for future
A direct mail shot is usually consists of sales letter and enclosures. A
sales letter is not just a business letter. It is a special form of
copywriting with its own techniques. The length of the letter will depend on
the extent to which the reader's interest can be sustained The letter may
present a complete selling proposition, or it can be a covering letter
referring the reader to an enclosure. The latter should not laboriously
repeat the contents of the enclosure but highlight special features of it.
Writing a sales letter we have a pattern to follow.
The main parts of a sales letter.
1. Introductory opening paragraph needs to capture reader’s attention.
2. The proposition is the heart of the letter.
3. Convincing the reader. There may be a price concession if the offer
is taken up quickly, or the offer may have a time limit.
4. Final paragraph consists of instructions on how to respond or order.
Adopting the above four-point formula, here is an example of how a sales
letter might be written.
Dear Mr. Brown
What do you do when your wife says the lawn needs cutting? Do you turn over a
new leaf in the book you are trying to read? Or maybe you take the dog for a
walk? If you haven't got a dog perhaps you pray that it will rain?
That's if you have an old back-breaker of a lawnmower that's agony to push up
and down the lawn on a hot day.
With the new Smith and Jones electric lawnmower you don't have to push. You
simply steer! The machine does all the work. It's a pleasure, really.
Your wife will be surprised how willingly you take your Smith and Jones out
of the garden shed. She'll probably have a drink waiting for you afterwards,
not that you'll be hot and weary. It will just be nice to sit down with her
in the deckchairs and admire that neat, trim lawn. Nice work, Mr. Brown!
You can see the new Smith and Jones electric lawnmowers at the New Town
Garden Centre – open all weekend sо you can call in when it suits you. It
comes in a box you can put in the boot, and it's very easy to assemble. Why
not bring the wife along?
Yours sincerely John Donaldson
When writing a sales letter it is necessary to use language which is appropriate
to the medium, the product and the reader. The contents of the envelope should
be kept to a minimum. Some mailings consist of so many items of different
shapes and sizes that the recipient is bewildered and may well discard the
whole lot! Good enclosures are those which supplement the sales letter. Some of
the best examples of well-planned shots are the one-piece mailers which
contain all the necessary information and the order form, making an
accompanying sales letter unnecessary.
A printed envelope can be an advertisement just like the packaging of a
retail product. It is the first thing people see. It can attract attention
and invite curiosity about the contents, and if sufficiently interesting to
the recipient the printed envelope could achieve priority over other
correspondence received at the same time.
The size of envelopes can be controlled by the format of printed enclosures.
Large leaflets in large envelopes can arrive in a very battered state whereas
smaller leaflets in smaller envelopes are more likely to arrive in the same
condition as when packed. So it’s better to use the small ones.
In order to send direct mail shots the company should create mailing lists.
There are a lot of ways of creating or obtaining mailing lists. The
information may be took from sales bills bearing the names and addresses of
purchasers, from the response to advertisements, from yearbooks, annuals,
directories and membership lists. They may be created by using a direct mail
house or by hiring a list from list-brokers who specialize in this service.
There are also firms which specialize in client's lists on computerized
databases, adding and deleting names as requested, and so managing and
maintaining a client's own list.
It is important to have an up-to-date mailing list, and it is bad policy to
build a continuous mailing list which is never checked or revised. People do
move, change their names or die. A mailing list of customers can be out-of-
date after two years and in some cases in six months.
Not all direct advertising, or distribution of materials, is sent by post. A
large volume is delivered door-to-door to houses, shops or offices. There are
three types of mail-drop service:
1) by specialist door-to-door distributors;
2) by the Post Office;
3) in conjunction with the delivery of free newspapers.
Direct Response Marketing
Direct response is a form of distribution as I’ve mentioned above. The
reasons for its growth and success are lack of personal services in self-
service stores and supermarkets, problems of car-parking and road congestion
near shopping centres, popularity of credit and charge cards.
Today the variety of means by which 'armchair' shopping can be conducted are
only limited by the ability of modern mail order traders to conceive yet
another technique of what is now called direct response marketing. We have
moved a long way from the mail-order bargains of the popular press or the
mail order club catalogues, although both still exist. It is now a
sophisticated business extending rapidly into the realms of alternative
television, micro-computers and videodisc catalogues. At the same time,
traditional media continue to be used, but this does now include commercial
television, as with recorded music producers. The largest single user of
direct response is insurance.
Direct response has become a very substantial area of agency business,
conducted either by specialist agencies, or by specialist subsidiaries of
well-known agencies. A major reason for the expansion of direct response
marketing has been the demand from clients for 'accountable advertising'
where they can measure the response in enquiries, sales leads or sales.
From small black and white ads in the popular press to full-colour, full-page
ads in the weekend colour supplements, a huge variety of goods and services arc
sold off-the-page. Most hobby and enthusiasts magazines carry ads offering
goods by post, from foreign stamps to computer software. The business pages
offer unit trusts, and even the popular papers offer life insurance, motor-car
and private hospital insurance. Correspondence courses have long been sold this
way. Even the sale of shares is conducted by prospectuses published in The
Times and Financial Times.
A number of commercial and non-commercial organisations sell from catalogues
which may be advertised in the press and on TV or sent to regular customers,
members or donors, or direct mailed against selected mailing lists. Such
catalogues are usually distributed annually or seasonally, but some are
issued more frequently. They may be for specific products or services such as
garden seeds, bulbs or roses; foreign stamps or coins; fashion goods; wines;
pipes; or perhaps tour holidays.
There are two kinds of clubs, those for club agents who enrol a circle of
members, with the agents earning commission on the sales; and clubs for
individual members who usually undertake to buy a minimum number of books,
records, cassettes or CDs a year. Some airlines operate mail order clubs for
The first group enrol agents by means of ads in the women's press and in family
magazines like TV Times and Radio Times. The reader should note
the special wording of the application coupons in these ads. Particular
information is requested such as whether the applicant has a telephone, and
there is generally an age limit and perhaps geographical limits.
Also television, telephone and teletext may be used as the method of
distributing. Advertisers quote the Teledata (ВНР) number to make enquiries
or order goods. It is a 24-hour personalised telemarketing service, making it
unnecessary for customers to mail coupons and for advertisers to handle them.
All the sales information is held in a computer. For example, an
advertisement for the Hyundai Stella 1.6 motor car, concluded with: 'phone
Teledata 071-200-0200 for a brochure and the name and address of your nearest
dealer'. The teledata receptionist gives the addresses of the nearest
dealers, and note the caller's address in order to send the brochure, and
asks where the advertisement has been seen and the make and year of the
caller's present car.
Electronic mail is a system whereby mail is received on a Telex or non-Telex
computer terminal with a modem which permits a print-out on a printer. This
system is limited to recipients who have the necessary receiving equipment.
But the growth of such office facilities is making electronic mail a viable
direct response medium especially since there is the interaction facility to
respond directly and quickly.
Direct marketing relies on trust. Customers have to send money in advance and
do not see the goods until they arrive. That is why this form of trading is
less common in developing countries. In Britain, the Mail Order Protection
Scheme means that customers are protected by the publishers who do not wish
to receive complaints from readers.
In Britain there are many laws which could concern the direct response
marketer, and some may be of general application wherever the goods are sold.
To these may be added the common law of contract. Most of these laws apply to
off-the-page direct response, some apply to all forms of direct response
I. Importance of exhibitions
Exhibitions are popular throughout the world and have a long history,
originating with old trading markets such as the 'marts' in what are today
Belgium and the Netherlands, where British merchants sold their wool and
woollens in the fourteenth century. The exhibition developed into the show
attended by either the trade or the general public. London for many years
became a major exhibition centre, to mention only the Great Exhibition of
1851, the Wembley Exhibition of 1924, and the Festival of Britain in 1951. In
recent years the National Exhibition Centre in Birmingham has rivalled London
although many events are held at Olympia, Earls Court, the Horticultural
Halls and the Barbican Centre in the City.
Throughout the world there are major exhibition centres, often government
supported (unlike Britain!), the chief ones in Europe being Frankfurt, Basle
and Milan. Many exhibitions are nowadays held in the Gulf states, an
indication of the need to develop their emergent economies. Permanent trade
exhibition centres exist in developing countries such as Malaysia and
II. Types of exhibition
1. Public indoor
Usually held in specially built halls, the public show is based on a theme of
public interest such as food, the home, do-it-yourself, gardening or holidays
2. Trade or business indoor
A more specialised type of exhibition, this will probably have a smaller
attendance consisting of bona fide visitors who are invited, given
tickets in their trade journal or admitted on presentation of their business
3. Private indoor
These are usually confined to one sponsor, but occasionally consist of a few
sponsors with associated but not rival interests Venues are usually hotels,
local halls, libraries, building centres or company premises if suitable.
Certain subjects lend themselves to outdoor exhibitions, for instance
aviation, farm equipment (at agricultural shows) camping and large
construction equipment. Exhibition stand may also be available at outdoor or
tented events like flower shows and horse shows. In hotter countries
exhibitions normally held indoors in the northern hemisphere will be held
Mobile exhibitions can be transported by caravan, specially built exhibition
vehicles, converted double-decker buses, trains aircraft and ships. British
Rail has its special Ambassador exhibition train which can be used by a
single client and taken to a choice of railway stations throughout the
country where visitors can be received. It can also be taken to European
countries Mobile van shows are common in developing countries, travelling
from town to town and village to village.
These are popular with foreign sponsors who organise weeks in different towns
to display foods, wines, fabrics, pottery, glassware or tourist attractions.
The displays are usually in appropriate stores, but a special entertainment
evening may be organised for the public in a theatre or hall, when singers,
dancers and/or films may constitute the programme.
7. Permanent exhibitions
Some large organisations may hold exhibitions within their premises or in
special halls or parks. A particularly attractive one is Legoland, a
children's park at Billund, Denmark, which demonstrates Lego toys.
The following are well worth visiting, combining as they do well mounted
exhibits with video shows:
The Thames Barrier Exhibition, near Woolwich. The Mary Rose Exhibition,
Portsmouth Dockyard. The Eurotunnel Exhibition, Folkestone.
In association with annual conferences there is often an exhibition supported
by suppliers which delegates may visit between and after conference sessions.
Some of them are quite small, perhaps arranged in an ante-room or in the
foyer of the hotel, but others are as big as the conference itself. The
larger exhibitions are usually held at venues like Brighton or Harrogate
where there are combined conference and exhibition facilities.
III. Characteristics of exhibitions
· Exhibitions are unlike any other forms of advertising and can include
selling direct off-the-stand to visitors. The special characteristics of
exhibitions are summarised in 16-21.
· The chief value of an exhibition is that it draws attention to it
subject and so attracts people, often from great distances. Thus the
exhibitor has the opportunity of meeting people he would never meet nor have
time to contact. The message of the exhibition, and often that of individual
exhibitors, spreads far beyond the even itself, and coverage is possible
throughout the appropriate media at home and abroad.
· An exhibition requires a lot of time for its preparation, and for
manning the stand. It is essential that the stand is manned by knowledgeable
people capable of answering visitors' questions.
· Exhibitions provide opportunities to display prototypes of new
products, and to receive visitors' comments and criticisms.
· Confidence, credibility and goodwill can be established by meeting
potential customers face-to-face. This applies to both distributors and
· There are ideal opportunities actually to show the product which is
more authentic than describing and illustrating it in advertisements,
catalogues and sales literature. Similarly, sampling provides a good sales
· The atmosphere of an exhibition is very congenial, even though a
long visit may be hard on the feet. For many people it is an outing to be
enjoyed and there is an atmosphere of entertainment like going to the circus
or the theatre.
IV. Using exhibitions
There are many trade papers which give forward dates of exhibitions, the most
complete details appearing in Exhibition Bulletin. Other publications
which announce some exhibition details are British Rate and Data,
Conferences and Exhibitions International and Sales and Marketing Management.
The following points should be borne in mind before booking space in an
(a) Organisers. Is the event organised by a responsible firm? Are they
members of the Association of Exhibition Organisers? Have they run this or
other shows before?
(b) Date. What is the date, is it convenient and does it clash with any
(c) Venue. Is it a good venue, that is one likely to attract a good
attendance? Is it a convenient one for transporting exhibits to and from? Some
foreign venues may impose transportation and customs problems. Does it have
good transport links? Is there adequate car-parking? Are there nearby hotels?
(d) Cost of sites. What is the charge per square metre and are, perhaps,
modestly priced shell schemes available?
(e) Facilities. Are all the necessary facilities available such as
water, gas or electricity, if they are required?
(f) Publicity. How will visitors be attracted?
(g) Build-up and knock-down. Is there adequate time allowed before and
after the show for erection and dismantling of stands?
(h) Public relations. What press office and press visit facilities will
This is an aspect of exhibitions which is overlooked by many exhibitors. It
pays to co-operate with the exhibition press officer months before the event.
Valuable press, radio and television coverage can be gained from exhibitions,
and this is a valuable bonus. Hundreds of journalists visit shows, looking
for good stories and pictures. They do not carry suitcases and will shun
clumsy press kits packed with irrelevant material.
(i) Associated events. Are there any associated events like a conference
or film/video shows?
(j) Is it justified? Is the cost of designing and constructing a stand,
renting space, printing sales literature, providing hospitality (especially at
a trade show) and taking staff away from their regular work justified? Has the
company something new to show, does it need to meet distributors and/or
customers, must it compete with rival exhibitors? What value may be anticipated
for the money spent—in goodwill or sales, including perhaps the finding and
appointing of new agents or distributors?
In his very useful book, Exhibitions and Conferences from A to Z,
(Modina Press, 1989) Sam Black makes the following comment:
'Exhibitions are visited by people expecting to see actual objects.
Photographs, diagrams and illustrations play an important part in conveying
technical or general information but they should be subsidiary to the three-
dimensional exhibits. People will read quite detailed explanatory copy on an
exhibition stand if it explains an exhibit which has attracted their
curiosity, but isolated panels of text will rarely be read.'
Sponsorship consists of giving monetary or other support to a beneficiary in
order to make it financially viable, sometimes for altruistic reasons, but
usually to gain some advertising, public relations or marketing advantage.
The beneficiary could be an organisation or individual. While some sponsors
may simply wish to be philanthropic, this is seldom so today when the object
is more often deliberately commercial.
At present, the bulk of sponsorship money is spent on sport, and while this
support is given mainly to the major sports of motor-racing, horse-racing,
football, cricket, tennis, golf, a number of other sports have become popular
through sponsorship and television coverage, to mention only bowls, snooker,
and darts. For example, Canon were the origional sponsors of the football
League and at the end of their three - year sponsorship, costing f 3mln they
were able to boast that there was hardly an office in Britain which didn't
have a Canon machine. The strength of this sponsorship was that British
football is played of many months of the year by 92 teams, this producing
constant media coverage.
What can be sponsored?
a) Books and other publications such as maps.
b) Exhibitions which may be sponsored by trade associations and professional
c) Education, in the form of grants, bursaries and fellowships.
d) Expeditions, explorations, mountaineering, round-the-world voyages and
f) The arts such as music, painting, literature and the theatre.
g) Charities, especially by helping them to promote their activities.
The aim of a sponsorship is to gain results associated with the advertising,
public relations or marketing strategy.
a) When media advertising a banned. The product may be banned by certain
media, e.g. cigarettes cannot be advertised on British TV, although this may
not apply in other countries. Cigarette manufactures have succeeded in
gaining considerable TV programme coverage by sponsoring cricket, golf and
b) In association with sponsorship, arena advertising in the form of boards
and bunting can be displayed at racecourses, sports stadiums, motor-racing
circuits and other venues so that they are inevitably picked up by the TV
cameras covering the event, apart from being seen by spectators on the spot.
Public relations objective:
Public relations objectives do not seek to advertise in order to persuade and
sell, but aim to develop knowledge and understanding of the organisation. An
important public relations objective may be to create goodwill towards the
company, locally, nationally or internationally. A large corporation, making
big profits, may adopt a social conscience by donating funds or gifts to
society. It might give financial aid to a library, college, theatre, hospital
or medical research fund. When a foreign company enters export markets, where
it may be unknown or greeted with prejudice or suspicion, sponsorship can
help create a friendly attitude without which it would be impossible to sell.
Very popular is the presenting the awards to journalists for their skill and
knowledge when writing about the sponsor's subject or industry. At to
marketing objectives sponsorship helps to position a product, to support
dealers, to establish a change in marketing policy, to launch a new product,
to establish the product in international markets.
Types of stores
Retailers can be classified by the length and breadth of their product
assortment. Among the most important types are specialty stores, department
stores, supermarkets, convenience stores and superstores.
A specialty store carries a narrow product line with a deep assortment within
that line. Examples include stores selling sporting goods, furniture, books,
electronics, flowers or toys. Today, specialty stores are flourishing for
several reasons. The increasing use of market segmentation, market targeting,
and product specialization has resulted in a greater need for stores that
focus on specific products and segments. And because of changing consumer
life styles and the increasing number of 2-income households, many consumers
have greater incomes but less time to spend shopping. They are attracted to
specialty stores which provide high quality products, nearly locations, good
store hours, excellent service and quick entry and exit. The shopping centre
boom has also contributed to the recent growth of specialty stores, which
occupy 60 to 70% of the total shopping centre space.
A department store carries a wide variety of product lines-typically
clothing, home furnishing, and household goods. Each line is operated as a
separate department. The first department stores appeared and grew rapidly
through the first half of the century. But after World War II, they began to
lose ground to a growing list of other types of retailers, including discount
stores, specialty stores, and *off-price* retailers.
Department stores are today waging a *comeback war*. Most have opened
suburban stores, and many have added "bargain basements" to meet the discount
threat still others have remodelled their stores or set up "boutiques" that
compete with specialty stores. Many are trying mail order and telephone
Supermarkets are large, low-cost, low-margin, high-volume, self-service stores
that carry a wide variety of food, laundry, and household products. Most US
supermarkets are owned by supermarket chains like Safeway, Kroger, A&P,
Winn-Dixie & fewel. Chains account for almost 70% of all supermarket sales.
Most supermarkets today are facing slow sales growth because of proliferation
of stores, slower population growth, & the appearance of innovative
competitors such as convenience stores, discount food stores & superstores.
They have also been hit hard by the rapid growth of out-of-home eating. Thus,
supermarkets are looking for new ways to build their sales. They practice
"scrambled merchandising", carrying many non-food items-beauty aids, toys,
house wares, prescriptions, appliances, videocassettes, sporting goods, garden
supplies - hoping to find high - margin lines to improve profits. Many
supermarkets are moving "upscale" with the market. Retailers are adding such
amenities as full-service seafood departments, "from scratch" bakeries, gourmet
prepared foods & in store restaurants complete with bars, jazz pianists,
& wine stewards.
Finally, to attract more customers, large supermarket chains are starting to
customize their stores for individual neighbourhoods. They are tailoring store
size, product assortment, prices & promotions to the economic & ethnic
needs of local markets.
Convenience stores are small store that carry a limited line of high-turnover
convenience goods. Examples include 7-Eleven, Circle K, & Open Pantry.
These stores locate near residential areas & remain open long hours &
seven days a week. Convenience stores charge high prices to make up for higher
operating costs & lower sales volume. But they satisfy an important
consumer need. Consumers use convenience stores for "fill-in" purchases at off
hours or when time is short, & they are willing to pay for the convenience.
Superstores are almost twice the size of regular supermarkets & carry a
large assortment of routinely purchased food & non-food items. They offer
such services as laundry, dry cleaning, shoe-repair, check cashing, bill paying
& lunch counters. Because of their wide assortment, superstore prices are 5
to 6% higher than those of conventional supermarkets. Many leading chains are
moving towards superstores.
Hypermarkets are in size up to about 6 football fields. The hypermarket combines
supermarket, discount & warehouse retailing. It carries more than routinely
purchased goods, also selling furniture, appliances, clothing, & many other
things. The hypermarket offers discount prices & operates like a warehouse.
Customers select items from bulk displays, & the store gives discounts to
customers who carry their own heavy appliances & furniture out of the
Most stores today cluster together to increase their customer pulling power
& to give customers the convenience of on-stop shopping. A shopping centre
is a group or retail businesses planned, developed, owned & managed as a
unit. A regional shopping centre is like a mini downtown. At contains from 40
to 100 store & pulls customers from a wide area.
PR is often confused with advertising, and sometimes wrongly termed
"publicity". PR is wrongly regarded as "free advertising". The two are very
different forms of communication, but advertising is likely to be more
effective if PR is well carried out.
Briefly, PR aims to create understanding through knowledge, it must be
factual, credible and impartial. Advertising has to be persuasive in order to
sell and it may be emotional, dramatic and certainly partial. Thus, a basic
difference is that in order to succeed PR must be unbiased while advertising
has to be biased. PR may be thought to consist only of press relations, or
rather media relations since radio and television are also involved. Modem PR
extends into all the functions of commercial and noncommercial, public and
private organisations. It deals with matters far removed from marketing and
advertising to mention only community, employee, share holder and political
relations. A major area of public relations in recent years has been the
handling of crisis situations such as strikes, disasters and take over bids.
The creation of understanding is best explained by the "PR transfer process".
A company, product or service may be subject to some negative states as
hostility, prejudice, apathy, ignorance. PR is concerned with changing them
into positive attitudes such as sympathy, acceptance, interest, knowledge.
There may be hostility towards a company because its behaviour has been
criticised, a product has performed badly, a company personality has received
bad publicity , the company is of foreign origin or simply because it is very
big. There may also be hostility towards the industry because it is believed
to be hazardous or endangers the environment. Prejudice is a more difficult
obstacle to overcome, and is usually long-standing and derived from family,
education, ethnic or even geographical influences. Many people are still
prejudiced about flying, holidays abroad, foreign foods, computers, etc.
Disinterest and apathy is very hard to overcome. People tend to be
conservative, set in their ways and unwilling to try new things. They may be
apathetic about things that could benefit them such as banking insurance,
savings, diet, holidays or different kinds of clothes. In a complex world
everyone is ignorant about many things. It is inevitable. There was a time
when most people were ignorant about detergents, air conditioning, video-
cassettes, all of which large number of people take for granted today. These
are all negative attitudes which PR has to change into positive ones. From
what has been described it is seen that PR concerns the total communications
of the total organisation. It is not confined to marketing nor it is a form
of advertising. Nevertheless, advertising can benefit from PR activity. In
fact advertising may well fail because of lack of PR. PR has its own
communication techniques and it can contribute to the success of advertising
just as it can contribute to good management-employee relations or good
financial relations. The chief benefit lies in the creation of understanding.