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Business Brief. Unit 6

A D V E R T I S I N G

Whether or not you agree with Marshall McLuhan that advertising is the greatest art form of the 20th century, it is a big part of modern culture. Shared references feed into it and it in turn feeds into daily life: advertising catchphrases turn up in TV comedy sketches and everyday conversation. And we become 'ironic' about advertising, perhaps to show that we think we are able to resist it.

TV advertising is the most glamorous, but the other media are not to be ignored: radio, cinema, and the press, while hoardings (BrE) and billboards (AmE) are a characteristic part of the urban landscape. All these will be around for some time, despite Internet advertising and its promises of online shopping. While there are still shops there will be point-of-sale displays designed, among other things to prevent last minute changes of mind about what brand to buy.

Advertising can be continued by other means with sponsorship of particular events, or product placement in films, where the product's makers negotiate for their products to appear and be used by the film's characters, a related phenomenon is product endorsement, where a celebrity is used in advertising a particular product. This can be dangerous if, for whatever reason, the celebrity falls from favour.

Some very creative minds come up with seductive combination of sound, image and words, but tests show that we often don't remember the brand being advertised. Quantifying the effect of advertising is very difficult and there has been a backlash against it in favour of other, supposedly more targeted, forms of communication. This usually means direct marketing, otherwise known as direct mail, but as those living in apartments who receive mailshots for gardening products know the targeting can still be ludicrously imprecise.

Advertising agencies may offer to run direct mail campaigns but what they are best at is creating traditional advertising campaigns. When a client becomes dissatisfied and the agency loses the account, this is major news in the advertising industry and means a big loss of revenue (and self-esteem) for the agency.

Until recently, agencies took 15% of the advertiser's budget, and what they did not spend on advertising (designing ads and media buying: buying time on TV and space in the press for the ads to be run) they spent or ’free' services in pack design, corporate identity (a unified look in all of a company's communication, from its advertising to its letterhead, perhaps with the use of a logo), market research, and even strategic advice. These ancillary activities are below-the-line activities. Today, most of these are undertaken by specialist organisations, leaving agencies to concentrate on their core activity, creating advertisements.

Despite all these activities and all this expenditure, the ultimate in advertising is word of mouth: friends and colleagues are often our most reliable sources of information. This form of advertising is usually free. All the advertiser can do is hope that it is positive.

Hoardings-a large sign used for advertising (BrE). =billboard (AmE)

internet advertising-advertising posted in internet

online shopping -

point of sale – the place where a product is sold

sponsorship – financial support given to pay for sports or art events. Trainings etc in exchange for advertising or to get public attention

product placement – when the market of a product arranges for it to appear in a film or television programme as a form of advertising

product endorsement – when a well-known person says in advertising how good product is

direct marketing – any form of marketing where possible costumers are contacted directly bu the seller, for example by telephone or post

targeted – investing relatively small amounts in targeted areas can bring big profits

mailshorts – when information or advertising material is sent through the mail to a large number people at one time

advertising agence – a business that advice to companies about how they should advertise their product, and produces for them

advertising campaings – an organization`s programme of advertising activities over a particular period of time with specific aims, for example to increase sales of a product

media buying – buying advertising space in newspapers etc or advertising time on television etc

pack design -

corporate identity – a unified look in all of a company`s communication, from its advertising to its letter head, perhaps with the use of a logo

logo – a design or way of writing its name that a company or organization uses as its official sign on its products

market research – the activities involved in obtaining information about a particular market, icluding how much of a product is being sold, who buying it, why they are buying it etc or information about what people might buy

bellow-the-line – relating to a company`s spending on marketing activities other than advertising, for example research

word of mouth – when people hear about something from their friends, people they work with etc

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