1. Introduction: Anyone who resides in America is conscious of advertising. One can see full-page ads tempting consumers to buy cigarettes, clothes, kitchen appliance, and autos by reading newspapers and magazines. There is hardly a program in television and radio without any commercials; Americans are familiar with the phrases "sponsored by" and "brought to you by" thousands of times. While driving, one can witness billboards or road signs informing the qualities of products or the locality of motels or restaurants.
Further, if one travel on a transit system, one cannot help but observe the high-flying signs displayed on the subways and buses. Mails are in no way an exception as ad is made along with the bills and the letters which accompany shiny flyers and circulars promoting products. Though the concept of advertisement has centered on product oriented in America , now different concept of advertisement has been practiced by the American corporations mainly to promote the image of the corporation along with its product which has been famously known as “advocacy “ and “issue advertising”. [Health and Nelson 1985].
This is also known as “hybrid ads” which blend both the company product and the company image building. [Winkleman 1985]. Consumers are of the opinion that Americans are under attack by advertisers. During the economic downturn during 2001 in the aftermath of 9/11 attack, there was considerable decline in advertisement spending.
However, spending on advertisement has registered a steep increase of $ 168 billion in 2003 from that of $ 128 billion in 1997. Spending on advertisement is expected to register a record level of $ 220 billion in the year 2007. Advertising is an easy target for shoppers and regulators .At the same time, when products and services come under examination, whether it is food products, a drug or alcoholic beverages, the most likely and expedient target is to go after the marketing. Advertising is just providing information to consumers so that they can make informed choices on product or service.
If one look back to the last phase of the 20th century, certain factors in the social, physical and economic environment imply an active role for corporate advertising. Due to recent corporate scandals like Enron, worlddot. com etc, some corporate image has been in low ebb and there is an urgent need to repair the same.Due to globalization and ever mounting trade deficit, American economy is now witnessing a most grim confront. Due to emerging strong European Union with ever increasing global competitors like Germany, Korea, China and Japan, American corporates is now facing heavy challenges in the international business arena. To recapture and to share a major pie in the international economy , American business have started to make a huge cry for greater quality conscious and to offer maximum customer satisfaction.
This too implies that there is an increased role for corporate advertising.It has become quiet obvious that in the future, American companies is to keep their consumers and public better informed of the customer specific corporate business activities. With this anticipated increment of corporate promotion in the short future, an evaluation of the present state of corporate advertising appears necessary. Thus, the purpose of this research is to review the secondary sources like already published research literature and various research articles on the subject and to offer a conclusion how effective the corporate advertising are now in America. This research also studies how advertising plays a dominant role in American airline industry by analyzing three different American airlines and their advertising strategy.
2. What is advertisement? Advertising has many benefits. Advertisement helps the business to develop trustworthiness which is essential to kindle growth as one will able to cherish the business name among consumers due to frequent advertising and finally the word of mouth will spread which also acts as an advertisement. The quality of product or service one offer is only one part of the branding that a business will be establishing.
Many recommendations will come from viewers who have read advertisement in a paper or saw one’s products at a show. Most of the recommendations that a business will receive will come from strangers that business have never come across of. One can not guarantee how creative ideas of the business can actually turn into business opportunities. For instance, airline business is offering the same type of business services but each airline is having established their own brand image due to their of quality service and through regular marketing programs.Each airliner is going to give something which is little diverse than that of other airline. It is to be observed that it does not necessarily going to make one airline service which is better than the other airline, but they do make just different from each other.
It is always recommended that a business should accentuate the positive and to spotlight on the program elements that the business offer in their advertising and no sooner the business will find that it has attracted many new customers since it has offered something unique and different.By advertising on a continuous basis, a business can maintain its brand image. 3. Various Types of Advertisement: Advertising is not an expense but it is really an investment.
There exists a large number of advertising alternatives and one has to select those which will be most cost-effective for reaching a targeted business customers. Following are some of the common advertising methods that are being used by the business in general. Magazines Print media advertisements always regarded as expensive. However, advertisements in specific magazines are aimed to explicit reader demographics.Advertisement in magazines offers dual benefit as it is not only having a longer shelf life but also facilitate readers to read them more than once and to exchange them with other people. These ads oblige planning in advance as the final artwork is so frequently required couple of months before the publication date.
This method of advertisement has one inherent disadvantage as last-minute changes can not be carried out. Newspapers Newspapers are the most economical and universally employed advertising mechanism for businesses with necessary marketing budgets.Since newspapers are normally published on daily basis, a business can issue a series of ads or release the ad for special offers that is being offered on short-term basis which may contain a discount coupon which can assist the business to conclude how many people responded to its advertisement. In targeting certain smaller communities, insertions like sample packs, flyers, or CDs can also assist a business to reach one’s probable customers. Yearbooks and Community Events In smaller and local communities, ads in event programs and yearbooks are predominantly effective as they demonstrate a business support.
Advertising in a local baseball, soccer, or hockey program will assist to foster awareness of a company and brand one’s business. Advertorials An advertorial is a method of advertisement that is intended to appear like a news story about the product or service, owners, and the company. In this type of advertisement, pictures of products or employees are often included. Readers of regional newspaper value this type of ad as they offer some information on local businesses.
Flyers and Circulars This is a low cost advertisement but at the same time very effective. A business can distribute flyers to divulge more about products.Though this type of advertising is being pursued by retail sector, other types of business can also derive advantages from this method. Printing cost can be minimized by printing company and its brand information on both sides of the flyers.
Business Cards Most of the entrepreneurs take business cards for granted as they are so common. Business card can be made as an efficient marketing tool by including information about a business products and services. In some business cards, more information are provided like a map to business location or more features about business services or products on the back side of the card.Signage Signage ad is also a more effective that it can be bus ads, billboards, even an advertisement on one’s company vehicle can be fairly successful. Business has to make sure that the signage of the company clearly depicts its business, blotches its location and expresses the right image. Associated Flyers While mailing the invoices and statements, these types of brochures or flyers are enclosed additionally.
This type of advertisement is more particularly valuable as it is forwarding to its customers notice in advance about unique or informing new services or products.This flyers is no doubt will include product or service information, discount, pricing, and an order form and direct contact information. These are not only to augment the chance of sales with little or no extra mailing costs, but also may offer an pointer as to whether the product line or service will be in demand or not. Websites As of today, a business without website is like a business without a valid address.
A website offers one’s customers to search up the information they require, when they require it. Web presence is costing nothing but it is significant to have a website that attains business objectives and purposes.Consumers all over the world, who have internet facility, can reach an organization’s web-site. Each visiting consumer to the company’s web-site has the opportunity of easy navigation through each individual web page, ease of access to affiliates, and an opportunity to receive special on-line promotions.
Radio and Television One another advertising technique is the Radio and television ads. These are very effective as business can visibly target its audience by airing a business commercial during explicit programming.National TV advertising may suit the large business’ price range. However, advertising on cable television and on local radio stations may be reasonably priced. Matters to be followed consistently: While deciding advertisement campaign, it is important to pay more attention to the name of one’s business, logo, grasp phrase, etc.
, are identical with one’s business cards, print ads, signage, letterhead, sales collateral and business website. Apt spending on advertising is always judicious but too low advertisement budget can result in loss of sales and struggle for viability.A business should conceive a reasonable budget and examine available options carefully to make sure that the business at last can reach its targeted customer. Past experience should guide a business to decide about the advertising budget to decide the quantum of each advertising medium should be based on and also should take into account the general practice in the industry and should also borrow suggestions from media specialists. It is wise to observe the type of media being used by the competitors. This strategy will give the business an idea about where its potential customers look and listen.
