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
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