1. Scope of advertising

Advertising serves many purposes and many advertisers, from the individual

who places a small classified advertisement in his local newspaper to the

big spender who uses networked TV to sell popular brands to the nation's

millions.

2. Types

It is possible to identify seven main categories of advertising, namely

consumer, industrial, trade, retail, financial, direct response and

recruitment.

Consumer advertising

3. Different kinds

There are two kinds of goods bought by the general public, consumer goods

and consumer durables, which together with consumer services are advertised

through media addressed to the appropriate social grades.

4. Consumer goods

These are the numerous goods to be found in the shops, those which enjoy

repeat sales like foods, drinks, confectionery and toiletries being called

Fast Moving Consumer Goods, (FMCGs).

5. Consumer durables

Usually more expensive and less frequently bought, consumer durables are of

a more permanent nature than consumer goods and include clothes, furniture,

domestic appliances, entertainment goods like radio, television and video,

and mechanical equipment from lawn-mowers to motor-cars.

6. Consumer services

They include services for security and well-being like banking, insurance,

investment, repairs and maintenance, and those more to do with pleasure

such as hotels, restaurants, travel and holidays.

7. Social grades

The social grades system makes it possible to identify certain groups of

people—prospective buyers—and then to pinpoint the media which will reach

them most effectively.

8. Media of consumer advertising

The media of consumer advertising will tend to be those with wide appeal,

and even when more specialist journals such as women's magazines are used

they will still have large circulations. In fact, the term 'consumer press'

is applied to the publications which are displayed for sale in newsagents

shops, on news-stands and on newspaper vendors' pitches'

Most of the trade, technical and professional journals have other forms of

distribution such as special orders placed with newsagents, postal

subscription or free postal controlled circulation. Controlled circulation

are not to be confused with membership or subscription magazines. They are

mailed (free of charge) to selected readers plus those who have requested

copies.

In Britain there are also hundreds of 'free' local newspapers which are

delivered door-to-door every week. With saturation coverage of urban areas

they provide good advertising media for many local businesses.

The primary media of consumer advertising are the press, radio, television,

outdoor and to a limited extent cinema, supported by sales literature,

exhibitions and sales promotion. We should not forget sponsorship,

especially the sponsorship of many popular sports which in turn can be

supported by arena advertising at the sports venue.

Industrial advertising

9. Purpose

The purpose of industrial advertising is twofold:

(a) to promote sales of equipment and services used by industry—machinery,

tools, vehicles, specialist consultancy, finance and insurance come within

this category;

(b) to promote sales of raw materials, components and other items used in

industrial production—under this heading come metals, timber, plastics,

food ingredients, chemicals and parts for assembly into finished equipment

from watches to aircraft.

Hardly any of these products and services will be bought by consumers,

except as replacements as when a motor-car needs a new battery or tyres.

Unless the formula or specification is stated, consumers will be unaware of

most industrial products.

10. Media of industrial advertising

The suppliers of services, equipment, raw materials and components will

usually advertise in media seldom seen by the general or consumer public.

The media used will consist of trade and technical journals, technical

literature and catalogues, trade exhibitions, direct mail, and technical

demonstrations and seminars. Technical journals will have smaller

circulations than the consumer press, and exhibitions will tend to have

fewer exhibitors and smaller attendances than public exhibitions open to

the general public; in fact, admission is usually by ticket or business

card. The amount of money spent on advertising will be far less, and there

may be more reliance on market education using public relations techniques

such as video documentaries, external house journals and technical feature

articles.

11. Special characteristics

Industrial advertising differs in yet another way. Whereas consumer

advertising may be emotive, industrial advertising has to be more detailed

and informative, although not unimaginative. Trade journals provide

valuable international market-places for thousands of products and

services, maintaining sales of long-established ones and introducing new

ones.

Public relations activities, while not to be regarded as free advertising,

may be more effective and economical, especially when the need is to

educate the market and create knowledge and understanding.

Trade advertising

12. Definitions

Trade advertising is addressed to distributors, chiefly wholesalers,

agents, importers/exporters, and numerous kinds of retailers, large and

small. Goods are advertised for resale.

13. Purpose

The purpose of trade press advertising is to inform merchants and traders

about goods available for resale, whether it reminds them about well-

established brands, introduces new lines or, as is often the case,

announces special efforts to help retailers sell goods, e.g. price

reductions, better trade terms, new packages, consumer advertising

campaigns or sales promotion schemes. Such advertising invites enquiries

and orders and also supports the advertiser's field salesmen when they call

on stockists.

14. Media of trade advertising

The trade press may or may not be used for this kind of advertising. There

could be a mix of two or three media addressed to the trade. Direct mail is

often used, especially when it is necessary to provide a lot of information

such as consumer advertising campaign schedules giving dates and times when

and where advertising will be taking place in the press or on radio and/or

television.

Another useful medium is the trade exhibition, sponsored by a trade

magazine or trade association, which will be attended by distributors. Some

of the larger exhibitions may also be open, or open on certain days, to the

general public as well, e.g. motor-car and furniture exhibitions.

Occasionally, commercial television time may be bought to tell retailers

about new lines, or retailers may be mailed to tell them that consumer

advertising campaigns are about to appear on TV.

15. Special characteristics

Since the object of trade advertising is to encourage shopkeepers (whether

large chains or one-man businesses) to stock up the product (especially to

achieve adequate distribution in advance of a consumer advertising

campaign), emphasis will be placed on the advantages of so doing. The

advantages will be higher sales and more profits, and the appeal will be to

the retailer's desire to make money. In so doing, trade advertising will

also have to compete with the 'selling-in' activities of rival

manufacturers.

Trade advertising will be seen as part of the total advertising campaign

for the product and so will be produced by the same advertising agency that

handles the consumer advertising. However, whereas consumer advertising

aims to persuade the consumer about the benefits to be gained from buying

the product, trade advertising aims to persuade the retailer about the

benefits which will result from selling the product. Trade advertising

supports distribution. It prepares the way. There is no point in

advertising products and encouraging consumers to buy them if the goods are

not in the shops. The demand created by consumer advertising must be

satisfied by the availability of the goods in the shops. That is what is

meant by 'adequate distribution'. If the advertised goods cannot be bought,

customers will buy either nothing or, worse still, a rival product!

Retail advertising

16. Introduction

Here we have a form of advertising which lies between trade and consumer

advertising. The most obvious examples are those for department stores and

supermarkets, but it can include the advertising conducted by any supplier

including a petrol station, restaurant or insurance broker.

A major form of retailing nowadays is direct response marketing or

retailing without shops. This is the modern form of mail-order trading

which has moved from the traditional club catalogues to sophisticated off-

the-page and direct mail campaigns for products and services, of which

financial houses and department stores have become leading participants.

17. Purpose

The purpose of retail advertising is threefold, as outlined below.

(a) To sell the establishment, attract customers to the premises and, in

the case of a shop, increase what is known as 'store traffic', that is the

number of people passing through the shop. If they can be encouraged to

step inside they may possibly buy something which they would not otherwise

be tempted to buy.

(b) To sell goods which are exclusive to the shop. Some distributors are

appointed dealers for certain makes, e.g. the Ford dealer. Others, such as

supermarkets, sell 'own label' goods, having goods packed by the

manufacturer in the name of the retailer. All the goods in the shop may

bear the same brand, or certain lines such as tea, coffee, biscuits or

baked beans may bear the retailer's own label.

(c) To sell the stock of the shop, perhaps promoting items which are

seasonal, or presenting a representative selection, or making special

offers. The latter could be regular policy, or could be organised as

shopping events such as winter or summer sales.

18. Media of retail advertising

The principal of media for retail advertising are:

(a) local weekly newspapers, including numerous free newspapers which gain

saturation coverage of residential areas by being delivered from door to

door;

(b) regional daily newspapers, of which most are 'evenings';

(c) public transport external posters and internal cards, and arena

advertising at sports grounds;

(d) direct mail to regular or account customers, and door-to-door leaflet

distribution;

(e) regional commercial television;

(f) independent local radio;

(g) window bills and point-of-sale displays within the shop;

(h) window and in-store displays;

(i) catalogues.

The shop itself is a considerable advertising medium, and it may well be a

familiar landmark. Marks &: Spencer rarely advertise, but their shops are

so big they advertise themselves. With retail chains, the corporate

identity scheme will quickly identify the location of a branch.

19. Special characteristics

Retail advertising is characterised by four main aspects: creating an image

of the shop, establishing its location, variety of goods offered, and

competitive price offers. Nearly always, the object of the advertising is

to persuade people to visit the shop, although telephone ordering and the

use of credit accounts and credit cards is a growing feature.

Financial advertising

20. Introduction

It is probably difficult to put a limit on what can be contained under this

heading, but broadly speaking financial advertising includes that for

banks, savings, insurance and investments. In addition to advertising

addressed to customers or clients it can also include company reports,

prospectuses for new share issues, records of investments in securities and

other financial announcements.

Some, like building society and National Savings advertisements, may be

addressed to the general public while others will appear in the financial

and business press only.

21. Purpose

The object of financial advertising may be to borrow or lend money, conduct

all kinds of insurance, sell shares, unit trusts, bonds and pension funds

or report financial results.

22. Classes of financial advertising

The main categories in this field are as follows.

(a) Banks advertise their services which today are not confined to

traditional bank accounts but include deposits, loans, insurance, house

purchase, wills and executorship and advice on investment portfolios. Some

banks specialise in certain areas of banking, and others concentrate on

certain kinds of business.

(b) Friendly societies and private medical care organisations like BUPA

offer schemes to provide insurance in time of illness.

(c) Building societies both borrow money from savers and lend money to

house-buyers. Most of their advertising is directed at not only raising

funds but keeping funds so that they have sufficient money to meet loan

applications. Competitive interest rates are important sales points, and

today in Britain there is rivalry between building societies, banks and

insurance companies for the same kind of business.

(d) Insurance companies exist to insure against almost any risk from big

commitments like ships and aircraft worth millions to covering [he risk

that rain may stop play. Some insurance not only covers risks but provides

benefits to savers or pensions in old age. In the cases of fire and theft,

insurance companies are also selling peace of mind should damage or loss be

suffered.

(e) Investments are offered, not only in share issues but in unit trusts

and other investments in which smaller investors can share in the proceeds

of a managed portfolio of shares.

(f) Savings and banking facilities are offered through post offices which

sell National Savings certificates and various bonds and operate the Giro

and Post Office banks.

(g) Brokers offer insurance, pension and investment schemes and advise

their clients on how to manage such financial commitments. The Automobile

Association acts as a broker for motor insurance.

(h) Credit and charge card companies, such as Access, and Barclaycard,

American Express and Diners' Club, promote plastic money facilities, often

on an international scale.

(i) Local authorities borrow money from the public, usually on short-term

loans which are advertised.

(j) Companies announce their intentions and final dividends, giving

summaries of annual reports, and often offering copies of annual reports

and accounts.

23. Media of financial advertising

Choice of media will depend on the target audience. Building societies

appeal to small savers and therefore use the mass media of the popular

press and television. The big national banks with branches everywhere also

use the national press and television. Investment advertising will appear

in the middle-class and business press. Prospectuses for share issues,

which usually occupy two or more pages, appear in newspapers like The Times

and Financial Times. Banks may take stands at exhibitions. They also

produce sales literature about their services, as do insurance companies

especially in the way of proposal forms.

24. Special characteristics

Financial advertising in the press, and especially the business press,

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