44. The speaker claims that high-quality ads can sell almost anything, and that
4 ^& u6 n( [4 Q: ^8 j# e! f+ {+ r* ^companies should accordingly invest heavily in such advertising. I agree that the quality 6 J1 Q- u+ J; k! ~9 A6 g
of an ad can in some instances play a pivotal role in a product's success or failure in the
@$ C [( |- |2 b% g. m- f4 P, Hmarketplace. However, the speaker over-generalizes, for advertising is far more critical
( _) V, g" ?1 f+ Y5 `, f* Vin some businesses and for some products than for others.
, U: [& G9 k# M6 u: Y& E7 d Certain types of businesses benefit greatly from investing in high-quality
, {, Z3 V: l, k$ Dadvertising. Fledgling companies, for example, may require an extensive top-notch 7 ~0 Q! }- X8 q& u
advertising campaign to achieve the name recognition that older competitors already + \9 w* b# ~, T
enjoy. Even established companies may need an expensive ad campaign. When " J$ i6 G. l6 w3 x
introducing new products or venturing into new markets. Companies selling products . C1 Z. Y3 g: _( y; r8 h- B- Q% h
that are no utilitarian value perhaps stand to gain the most from an extensive high-/ u1 Y, k5 A8 S {" J! u
quality advertising effort. Consider, for example, the kinds of products that are marketed
- y) W# s& ~0 k4 R* T$ Y9 r! cby means of the most extensive and expensive advertising: beer, cigarettes, soft drinks,
* m/ B: l+ A& N' p) yand cosmetics. None of these products has any utility. Their success depends on
, | M# d5 L" _consumers' fickle tastes, their emotions, and their subjective perceptions. Accordingly,
" w/ L( `8 _0 ~6 J3 p, s7 T$ pinfluencing consumer attitudes through popular and appealing ads is about the only way 0 d1 F8 i# @* G2 r- z+ `
to increase sales of such products.+ ^) A. |& a( x% Y" v, }
In some industries, however, substantial-investment in high-quality advertising $ Q/ P& s' n# P: g0 i: F
simply does not make sense from a cost-effectiveness viewpoint. Pharmaceutical
' N1 q) I. v& J& h% N7 vcompanies, for example, might be better off limiting their advertising to specialized
7 M* F5 S U8 Y8 Npublications, and focus instead on other kinds of promotional programs, such as the 4 A. g+ \8 T, Y( c
distribution of free samples. And widespread, flashy advertising would probably have a
! o/ V1 {6 s2 R( P5 C2 flimited effect on overall sales for companies such as Deere and Caterpillar, whose name
/ J0 a; x5 B1 crecognition and long-standing reputations for quality products are well established and
* w3 w) e- J! Q, N( _7 _whose customers are unlikely to be swayed by sensational ads.
" P0 L2 W; l7 D2 T X In sum, the speaker over-generalizes. Not all companies have an equal need to . _; o* q- o2 Y4 |8 u$ v
invest heavily in high-quality advertising. Companies with new products and products 5 D5 }2 }$ _4 @' w! `' q
that have little utility stand to benefit most from expensive, high-quality advertising. " P3 y7 g5 S5 Q- o: R
But other companies, especially those whose customers are businesses rather than
5 e7 Q g# d% b9 v7 p: R# lconsumers, would be better off focusing on product quality and reputation, not on 6 |4 w) k+ W! E' s9 r
sensational advertising. |