Which of the following claims do you agree with?

1. Advertising is essential for business, especially for launching new consumer products.

2. A large reduction of advertising would decrease sales.

3. Advertising often persuades people to buy things they don’t want.

4. Advertising lowers the public’s taste.

5. Advertising raises prices.

6. Advertising often persuades people to buy things they don’t need.

7. Advertising does not present a true picture of products.

8. Advertising has a bad influence on children.

D) In a well-known survey, the Harvard Business Review asked 2,700 top or senior business managers whether they agreed with these statements. The survey produced some unexpected results. Which of the following percentages do you think go with which of the statements above?

41% 49% 51% 60% 72% 85% 57% 90%

F) After matching up these figures and statements, look at the true figures on the next page. After reading the opinions expressed in the Harvard Business Review survey, do you want to revise the opinions expressed above?

VII. Match the ideas with the examples of real advertisements, then try to find ten adds (in newspapers, magazines or TV commercials) that illustrate the ideas below:

1. Ask a question Think IBM

2. Use a two-fold delivery with a twist Never forgets Elephant Memory Systems

3. Show your unique commitment Common sense. Uncommon results David Ingram and Associates

4. Describe your product in a novel way Liquid jewelry Lorr Laboratories (nail polish)

5. Link company name to product benefit Does she or doesn’t she? Clairol

6. Use an imperative call to action Understanding comes with Time

Time magazine

7. Use a one-word call to action We take the world’s greatest pictures Nikon

8. Link a well-known phrase with A diamond is forever DeBeers

Your product benefit

9. Brag about yourself We try harder Avis

Link a product feature

with an abstract need Just do it Nike

VII. Using the family life cycle, in which stage would people, be most likely to need these products?

productstage (1, 2a, 2b, 2c, 3, or 4)

fast food _____

a big car _____

a set of encyclopedias _____

expensive wine _____

laundry detergent _____

toys _____

television _____

laxative _____

shoes _____

a small car _____

sheets and blankets _____

a smaller house or apartment _____

a diaper service _____

a divorce counselor _____

sports equipment _____

IX. Written Task

Research proves that the effect of the creativity factor in a campaign is more important than the money spent. “Only after gaining attention can a commercial help to increase the brand’s sales”, writes Philip Kotler in his famous book Marketing Management. Use your creativity and write an advert following one of the tips above.

Referenece to the previous page

Discussion: The numbers of respondents who agreed with the statements were as follows:

1). 90%, 2). 72%, 3). 85%, 4). 51%, 5). 41%, 6). 49%, 7). 60%. 8). 57%

X. These are some of the things the marketer must know about a foreign market. Add to the lists.

legal environment economic environment sociocultural environment

tariffs standard of living need for the product

restrictions on imports cost of living attitude toward the product

___________ ___________ ___________

___________ ___________ ___________

___________ ___________ ___________

___________ ___________ ___________

___________ ___________ ___________

VI. CASE STUDY

Targeting New Markets

No one has been able to develop a list of superbly managed companies that withstands the test of time. Levi Strauss, one of the models of excellence in the early 1970s, faced hard times in the late 1970s and early 1980s. The company struggled in its attempts to appeal to both the youth and adult markets. The company’s efforts to appeal to both markets through a single advertising strategy proved unsuccessful. New product lines of jeans came and went.

The company became determined to shine up its tarnished image. Image, sales, and profits are being improved through product diversification, acceptance of the fact that the preferences of students of the 1960s and 1970s have evolved, and by the targeting of ethnic groups throughout the United States.

Today, Levis are again a staple for baby boomers. Different sizes, silhouettes, and fabrics have helped retain Levi’s appeal. And for the younger market, Levi continues to stress hip, fit, and image. The company also uses varied commercials to appeal to specific groups and is planning to target different age and racial groups as demographics continue to change.

Demographics, especially in California, are changing rapidly, and the company is responding with new lines of casual pants. Economic and population trends in California reveal that Hispanics, blacks, and Asians will exert increasing economic influence as their numbers continue to expand. Research by the Center for the Continuing Study of the California economy predicts that California’s population will expand by 500,000 people a year through 1995; due to immigration trends, around two-thirds of this increase will be Hispanics and Asians. California will represent one-fifth of the entire U.S. economic expansion during the same time period. Levi

Strauss is successfully using this demographic information to develop clothing to appeal to new target markets. However, Levi’s Strauss’s Office of Strategic Research director John Wyek, who has helped the company utilize demographic information, realizes that change will be a constant factor: “From now until the year 2,000, there is going to be a steady decline in the total number of 18-to-24-year-olds…… Hispanic 18-to-24-year-olds will increase by 40 percent. It changes the wheel of our audience.”

By creating new products with a well-known trademark, new designs and fabrics, and by improving its advertising and image, Levi Strauss intends to capture emerging markets as well as better respond to its traditional clientele.

Questions:

1. How is Levi Strauss shining up its tarnished image?

2. In what ways is Levi Strauss implementing the marketing concept? Explain.

3. How have demographic factors influenced Levi Strauss’s marketing strategies?

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