44. The speaker claims that high-quality ads can sell almost anything, and that * M4 l5 C4 M0 y0 f/ ~
companies should accordingly invest heavily in such advertising. I agree that the quality
! E, k. y. N+ [; mof an ad can in some instances play a pivotal role in a product's success or failure in the : V( c$ E/ S: x" v; A
marketplace. However, the speaker over-generalizes, for advertising is far more critical , ?6 ?& r" B; V, P# u3 \
in some businesses and for some products than for others.7 s2 V+ y4 E- d7 x; R
Certain types of businesses benefit greatly from investing in high-quality
% R* Y$ w; Q1 J, J0 f5 X; Wadvertising. Fledgling companies, for example, may require an extensive top-notch
5 s5 s) M4 F2 ~7 S% o+ ?3 Radvertising campaign to achieve the name recognition that older competitors already ; Y' V0 W! O2 U
enjoy. Even established companies may need an expensive ad campaign. When 4 }7 M) U( o2 j; l5 W6 v+ ]5 ^4 C
introducing new products or venturing into new markets. Companies selling products
f( H9 ?0 ~; \( Lthat are no utilitarian value perhaps stand to gain the most from an extensive high-2 t1 d) c+ Y2 X" {8 g* {
quality advertising effort. Consider, for example, the kinds of products that are marketed
. B; ?9 N' }( R' ?( aby means of the most extensive and expensive advertising: beer, cigarettes, soft drinks, 6 y9 j# a0 v! E4 X
and cosmetics. None of these products has any utility. Their success depends on
( k/ G4 S8 r/ B' J+ A2 n% {consumers' fickle tastes, their emotions, and their subjective perceptions. Accordingly,
) `/ Y' I2 f! p/ o0 ^# U3 v/ A) m& cinfluencing consumer attitudes through popular and appealing ads is about the only way
' Z5 q4 R; V; I+ K4 t2 K( Zto increase sales of such products.' B/ V- H1 D$ ]
In some industries, however, substantial-investment in high-quality advertising 9 s. z3 Z' M7 s5 ]
simply does not make sense from a cost-effectiveness viewpoint. Pharmaceutical 8 Z- p4 W. w3 \
companies, for example, might be better off limiting their advertising to specialized
2 C& @" N& D# }, D2 j. R( M3 `publications, and focus instead on other kinds of promotional programs, such as the
$ s' r0 z# c- P' U* A# Q ydistribution of free samples. And widespread, flashy advertising would probably have a + F& a+ U. ?* }7 I. w2 x4 t
limited effect on overall sales for companies such as Deere and Caterpillar, whose name
7 `- `% P$ H W1 Irecognition and long-standing reputations for quality products are well established and " U, C; F2 ^% a5 w8 A
whose customers are unlikely to be swayed by sensational ads.
, x; ~9 Y; a) A5 j; [+ a In sum, the speaker over-generalizes. Not all companies have an equal need to & m* i* W D! Z% B9 S6 ?7 ]
invest heavily in high-quality advertising. Companies with new products and products 7 a3 O' @+ A4 [) r' M2 J! i/ H
that have little utility stand to benefit most from expensive, high-quality advertising. + ^1 u# n2 n; _" H" e0 x9 W
But other companies, especially those whose customers are businesses rather than 9 v4 \9 e$ F1 ]6 o( ^
consumers, would be better off focusing on product quality and reputation, not on
, ~9 P7 F2 ^. i$ T7 msensational advertising. |