Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

16. Advertising and Sales
    Promotion

Text © The McGraw−Hill

Companies, 2002

Advertising and Sales Promotion 457

product’s overall benefits. Some comparative ads leave consumers confused or even angry

if the product they’re using is criticized. Comparative ads can also backfire by calling

attention to competing products that consumers had not previously considered.^7

Reminder advertising—reinforces a favorable relationship

Reminder advertisingtries to keep the product’s name before the public. It may

be useful when the product has achieved brand preference or insistence—perhaps

in the market maturity or sales decline stages. It is used primarily to reinforce pre-

vious promotion. Here the advertiser may use soft-sell ads that just mention or show

the name—as a reminder. Sunkist, for example, often relies on reminder ads because

most consumers already know the brand name and, after years of promotion, asso-

ciate it with high product quality.

Institutional advertising usually focuses on the name and prestige of an organi-

zation or industry. It may seek to inform, persuade, or remind.

Large companies with several divisions sometimes use a persuading kind of insti-

tutional advertising to link the divisions in customers’ minds. Many Japanese firms,

like Hitachi, emphasize institutional advertising, in part because they often use the

company name as a brand name.

Companies sometimes rely on institutional advertising to present the company

in a favorable light—perhaps to overcome image problems. Oil giant BP, for exam-

ple, ran ads in a bid to be seen as more pro-environmental. However, in this case,

they just drew more criticism.^8

Some organizations use institutional advertising to advocate a specific cause or

idea. Insurance companies and organizations like Mothers Against Drunk Driving,

for example, use these advocacy ads to encourage people not to drink and drive.^9

Institutional

advertising—

remember our name

Buster Brown is a well-known

brand with a hundred-year

history, but at back-to-school,

shoe-buying time it ran print and

outdoor ads to remind parents of

their positive feelings about

Buster Brown shoes. Ads

featured a toll-free number to call

or website address so consumers

could learn the location of the

closest retailer.

Vertical cooperation—

advertising allowances,

cooperative advertising

Sometimes a producer knows that a promotion job or advertising job should be

done but finds that it can be done more effectively or more economically by someone

further along in the channel. Alternatively, a large retail chain like Best Buy may

approach a manufacturer like Panasonic with a catalog or ad program and tell them

Coordinating Advertising Efforts with Cooperative Relationships