Advertising Interests

The Advertising Industry
- "a system of communication through which goods and services are brought to the attention of the general public" (Johnston, 196).
○ Certain advertising is targeted at different target segments
○ General public changes
- See Johnston on history of advertising in Canada
- Macalister piece as well is helpful for advertising

Why Advertise?
- Form of market competition (To increase or at least maintain, sales and profits)
○ Which kind of markets are best to advertise in?
○ The most important in "oligopolistic" markets (where a few large producers dominating a particular market). Those few have a lot to gain and a lot to lose.
- Barriers to entry
○ Costs
○ Market Share
○ Economies of Scale
○ Big Corporations keep out little guys.
- Advertising more effective in persuading consumers to buy particular brands rather than particular products
○ Seeing car ads doesn’t make you buy a car. But if you were thinking of buying a car, advertising influences you on which brand to buy or model.
○ Advertising dollars are spent on brand names than products.
§ We all have to buy clothing, but where are we going to buy it.
○ Brands are what pulls people in.
- Persuasion vs. information
○ Advertising is mostly about persuading people
○ Persuasive advertising creates an image in mind of consumer, and is more successful that informational advertising
○ Informational ads show you people using products, give you information.
○ Informational advertising is more likely to be institutional advertising
- Advertising is everywhere. Cant go out without being influenced. Huge multi billion dollar industry
○ Firms advertising to increase and maintain profits in competitive markets.
- Institutional advertising- advertises the company not a product

Principal Forms of Advertising
- Product and brand advertisements (usually based on image of the product)
○ Persuading you to buy a type of clothing or type of car
-... [continues]

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