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larly for companies whose products and services are targeted at mass consumer markets. More than 200 companies each spend over $100 million a year on advertising in the United States. Figure 1-2 shows the advertising expenditures of the 25 leading national advertisers in 2001.

There are several reasons why advertising is such an important part of many marketers' promotional mixes. First, it can be a very cost-effective method for communicating with large audiences. For example, the average 30-second spot on the four major networks during prime-time network television reaches nearly 10 million households. The cost per thousand households reached is around $14.27

Advertising can be used to create brand images and symbolic appeals for a company or brand, a very important capability for companies selling products and services that are difficult to differentiate on functional attributes. For example, since 1980 Absolut has used creative advertising to position its vodka as an upscale, fashionable, sophisticated drink and differentiate it from other brands. The advertising strategy has been to focus attention on two unique aspects of the product: the Absolut name and the distinctive shape of the bottle (Exhibit 1-7). Most of the print ads used in this long-running campaign are specifically tailored for the magazine or region where they appear. The campaign, one of the most successful and recognizable in advertising history, has made the Absolut brand nearly synonymous with imported vodka. While all other spirits sales have declined by more than 40 percent over the past 15 years, Absolut sales have increased 10-fold and the various Absolut brands have a combined 70 percent market share.28

Figure 1-2 25 leading advertisers in the United States, 2001

Rank Advertiser Ad Spending (Millions)

1 General Motors Corp. $3,374.4

2 Procter & Gamble 2,540.6

3 Ford Motor Co. 2,408.2

4 PepsiCo 2,210.4

5 Pfizer 2,189.5

6 DaimlerChrysler 1,985.3

7 AOL Time Warner 1,885.3

8 Philip Morris Cos. 1,815.7

9 Walt Disney Co. 1,757.3

10 Johnson & Johnson 1,618.1

11 Unilever 1,483.6

13 Verizon Communications 1,461.6

14 Toyota Motor Corp. 1,399.1

16 Sony Corp. 1,310.1

17 Viacom 1,282.8

18 McDonald's Corp. 1,194.7

19 Diageo 1,180.8

20 Sprint Corp. 1,160.1

22 Honda Motor Co. 1,102.9

24 U.S. government 1,056.8

25 L'Oreal 1,040.7

Source: Advertising Age, June 24, 2002, p. S-2.

Belch: Advertising and Promotion, Sixth Edition

I. Introduction to Integrated

Marketing

Communications

1. An Introduction to Integrated Marketing Communications

© The McGraw-H Companies, 2003

Exhibit 1-7 Creative advertising has made Absolut the most popular brand of imported vodka in the United States

Exhibit 1-8 Eveready uses the popularity of its pink bunny campaign to generate support from retailers

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