Theme 6. Mass media. Advertising. Internet.

Средства массовой информации. Реклама. Интернет.

6.1 The media

Text 1.

British people watch a lot of television. They are also reported to be the world's most dedicated home-video users. But this does not mean that they have given up reading. They are the world's third biggest newspaper buyers; only the Japanese and the Swedes buy more.

Newspaper publication is dominated by the national press: the Sun, the Daily Mirror, the Daily Express, the Times, the Financial times, the Guardian, the Daily Telegraph.

The Internet, a global computer network embraces millions of users all over the world.

The union of television and the internet is spawning a wide variety of offspring. This could provide new models for programme- makers to finance their productions and offer advertisers new ways to reach consumers.

6.2 Advertising

Text 2. Nature of advertising

Mass communication is needed to reach mass markets at reasonable costs. Advertising, sales promotion, public relations, and publicity are the tools for this job. It is too costly and time-consuming to use only sales people in large, geographically diverse markets. However, whereas personal selling can be tailored to the individual prospect, mass communicators try to reach people with a common message.

Advertising consists of all activities involved in presenting to a group a nonpersonal, sponsor-identified message about a product or organization. This message, called an advertisement, can be verbal and/or visual, and is disseminated through one or more media. Two factors differentiate advertising from publicity. The public knows who is doing the advertising because the sponsor is openly identified. And payment is made by the sponsor to the medium that carries the message.

Types of advertising: Product and Institutional Advertising

All advertising may be classified as product or institutional. In product advertising, advertisers inform or stimulate the market about their products Product advertising is subdivided into direct-action and indirect-action advertising:

Direct-action advertising seeks a quick response._;

Indirect-action advertising is designed to stimulate demand over a longer period of time. It is intended to inform or remind consumers that the product exists and to point out its benefits. Most network television advertising is of this type.

Institutional advertising presents information about the advertiser`s business or tries to create a good attitude—build goodwill—toward the organization. This type of advertising is not intended to sell a specific product. Two forms of institutional advertising are:

Customer service advertising, which presents information about the advertiser's operations. Advertisements describing the variety of automobile repairs and services•

Public service advertising, which is designed to improve the quality of the life and show that the advertiser is a responsible member of the community. Such ads may urge the public to avoid drugs or to support a local antipollution campaign.

Task 1. Read the texts. Translate them into Russian, and render them.

Task 2. Memorize the key terms, concepts, expressions and their meaning.

advertising	реклама
advertisement	реклама
product advertising	рекламный продукт
direct-action advertising	прямая реклама
indirect-action advertising	косвенная реклама
institutional advertising	институционная реклама
customer service advertising	реклама обслуживания покупателей
public service advertising	общественная реклама

Task 3. Answer the questions. Solve the problems. Do the tasks.

:

1. What is advertising?

2. What are the tools which are needed to reach mass markets at reasonable costs?

3. How may all advertising be classified?

4. Can you characterize the major types of advertising?

5. What are advantages and disadvantages of each of the types of advertising described in the text?

Task 4. Comment briefly on the media, nature of advertising and Internet.

Task 5. Write a resume on the text “Nature of advertising”.

Use:

1. The text is written by…

2. It is generally known…

3. In this text the author uses…

4. He points out that..

5. The text deals with..

Text 3. Primary and selective demand advertising

Primary demand advertising is designed to stimulate demand for a generic category of a product such as Colombian coffee, Florida citrus fruit, or garments made from cotton. This is in contrast to selective demand advertising intended to stimulate demand for individual brands.

Primary demand advertising is used in either of two situations. The first is when the product is in the introductory stage of its life cycle. This is called pioneering advertising. A firm may run an ad about its new product, explaining the product's benefits, but not emphasizing the brand name. The objective of pioneering primary demand advertising is to inform, not to persuade, the target market. The buying decision process model explains why such ads are limited to information : a consumer must first be made aware of a product before becoming interested in or desiring it. Combine this with the fact that only so much information can be communicated in a single ad, and it becomes clear that only one objective can be accomplished at a time. In recent years pioneering demand ads have been run for cellular phones and video camcorders.

The second use of primary demand advertising occurs throughout the product life cycle. It is usually done by trade associations trying to stimulate demand for their industry's product. Thus the Beef Industry Council's ads urge us to consume beef products. The council doesn't care what brand of beef products we buy, just that we use more of them. Similarly, the National Dairy Association encourages us to consume more milk and dairy products.

Selective demand advertising essentially is competitive advertising—it pits one brand against another. This type of advertising typically is employed when a product has gone beyond the introductory life-cycle stage. The prod­uct is reasonably well known and in competition for market share with sev­eral brands. The objective of selective demand advertising is to increase the demand for a brand. To accomplish this goal, it emphasizes the particular benefits—the differential advantages—of the brand being advertised.

Comparative advertising is an important kind of selective demand advertising that is used for a wide variety of products.

Cooperative advertising promotes products of two or more firms that share the cost of the advertising. There are two types—vertical and horizontal:

Vertical cooperative advertising involves firms on different levels of distribution. For example, a manufacturer and a retailer share the cost of the retailer`s advertising of that manufacturer's product. Frequently the manufacturer pre pares the actual ad, leaving space for the retailer's name and location. Then the manufacturer and retailer share the media cost of placing the ad. Most retail ads in newspapers are cooperative ads. Cooperative ads are also common on radio but appear less frequently on TV.

Another type of vertical cooperative advertising uses an advertising allowance, or cash discount offered by a manufacturer to a retailer, to encourage the retailer to advertise or prominently display a product. The difference between cooperative advertising and allowances is the amount of control exerted by the manufacturer over how the money is actually spent.

These arrangements benefit retailers by providing them with extra funds for promotion. Manufacturers benefit from advertising at the local 1evel. In addition, ad dollars go farther because rates for local media are typically lower for ads placed by local firms than for ads placed by national advertisers.

Horizontal cooperative advertising is undertaken by firms on the same level of distribution—such as a group of retailers—that share the costs of advertising. For example, all stores in a suburban shopping center may run a joint newspaper ad. The principal benefit is that by pooling their funds, the firms can achieve much greater exposure than if they advertised individually.

Cost of advertising. Advertising in one form or another is used by most marketers. The significance of advertising is indicated by the amount of money spent on it.

Advertising as a percentage of sales. When gauging the importance of advertising, we should measure expendi­tures against a benchmark rather than simply look at the total. Frequently, advertising expenses are expressed as a percentage of a company's sales.

Advertising cost versus personal selling cost While we do not have accurate totals for the costs of personal selling, we do know they far surpass advertising expenditures. In manufacturing, only a few industries, such as drugs, toiletries, cleaning products, tobacco, and beverages, spend more on advertising than on personal selling. Advertising runs 1 to 3 percent of net sales in many firms, whereas the expenses of recruiting and operation a sales force are typically 8 to 15 percent of sales.

At the wholesale level, advertising costs are very low. Personal selling expenses, however, may run 10 to 15 times as high. Even among retailers in total—and this includes those with self-service operations—the cost of personal selling is substantially higher than that of advertising.

Task 1. Read the text. Translate it into Russian, and render it.

Task 2. Memorize the key terms, concepts, expressions and their meaning.

primary demand advertising	реклама первичного спроса
selective demand advertising	реклама селективного спроса
pioneering advertising	первичная реклама
differential advantages	разнообразные преимущества
comparative advertising	компаративная реклама
co-operative advertising	кооперативная реклама
vertical cooperative advertising	вертикальная кооперативная реклама
advertising allowance	рекламная скидка
horizontal cooperative advertising	горизонтальная кооперативная реклама
cost of advertising	рекламная стоимость

Task 3. Answer the questions. Solve the problems. Do the tasks.

1. What is the difference between primary and selective demand advertising.

2. What is pioneering advertising?

3. Comparative advertising has been encouraged as a means of stimulating competition, hasn’t it?

4. What does cooperative advertising promote?

5. How important is the difference between vertical and horizontal cooperative advertising?

Task 4. Conduct a debate in which you discuss the pros and cons of different types of advertising.

Task 5. Read the text “Cost of advertising” and debate about the significance of advertising in terms of the amount of money spent on it.

Text 4. Objectives of advertising

The fundamental purpose of advertising is to sell something—a good, service, idea, person, or place. This broad goal is reached by setting specific objectives that can be incorporated into individual advertising campaigns. Recall again our discussion of the buying decision process. Buyers go through a series of stages from unawareness to purchase in the process of making a decision. Thus the immediate objective of an ad may be to move target customers to the next stage in the hierarchy, say from awareness to interest. Note also that advertising seldom is the only promotional tool used by a firm. Rather, it is typically one part of a strategy that may also include personal selling, sales promotion, and other tools. Therefore, the objective of advertising may be to "open doors" for the sales force.

Specific advertising objectives will be determined by the-firm's overall marketing strategy. Typical objectives are:

• Support personal selling. Advertising may be used to acquaint prospects with the seller's company and products, easing the way for the sales force.

• Reach people inaccessible to the sales force. Sales people may be unable to reach •top executives or may be uncertain who in the company makes the buying decisions. A well-placed ad may attract the attention of these executives.

• Improve dealer relations. Wholesalers and retailers like to see a manufacturer support its products.

• Enter a new geographic market or attract a new market segment.

• Introduce a new product.

• Expand the use of a product.

Advertising may be used to lengthen the season for a product (as has been done by Lipton for iced tea); increase the frequency of replacement (as was done by Fram for oil filter; or increase the variety of product uses (as was done for baking soda by Arm & Hammer).

• Expand industry sales.

• Counteract substitution.

• Build goodwill for the company.

Task 1. Read the text. Translate it into Russian, and render it.

Task 2. Memorize the key terms, concepts, expressions and their meaning:

objectives of advertising	цели и задачи рекламной деятельности
support personal selling	поддержка индивидуальной продажи
improve dealer relations	совершенство отношений диллеров
enter a new geographic market	выход на новый географический рынок
attract a new market segment	привлечение нового сегмента рынка
introduce a new product.	введение нового продукта
expand the use of a product	расширение использование продукта
expand industry sales	расширение индустрии продаж
counteract substitution	противодействие замене
build goodwill for the company	способствование благосостоянию компании

Task 3. Answer the questions. Solve the problems. Do the tasks.

1. What is the fundamental purpose of advertising?

2. What is the difference between the broad goal of advertising and specific objectivities which are described in the text?

3. Can you name typical objectivities of advertising and discuss the principal similarities and differences between them.

4. In terms of international perspective who do you think spends the most on advertising in Russia and other countries.

5. How important are objectivities of advertising to advertising campaigns?

Task 4. Find the information about the history of advertising in the free encyclopedia “Wikipedia”(www.wikipedia.org/) and “Britannica”(www.britannica.com), make up theses and discuss them in class.

Task 5. Discuss an international perspective: who spends the most on advertising in the world.