The Frito Company began operations in San Antonio, Texas, in 1932 and merged with H. W. Lay & Company to form Frito-Lay in 1961. Four years later, Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo, and during the 1990s the snack food division became known as the Frito-Lay Company. In 1997 Frito-Lay expanded its product lines in Europe, Australia, and South America by purchasing salty snack brands in countries there, and in the United States it acquired the Cracker Jack brand of candy-coated popcorn and peanuts. Frito-Lay made nine of the 10 top-selling brands of snack chips in the United States, including Lay’s and Ruffles potato chips, Cheetos cheese puffs, Rold Gold pretzels, and Tostitos and Doritos tortilla chips. The company’s first product had been Fritos corn chips, which were promoted for years by a character called the Frito Kid and later with the tag line ‘‘Munch a Bunch! Continue reading
Advertising Management Concepts
Different Classifications of Advertising
Advertising intends to persuade an audience (viewers, readers or listeners)to purchase or take some action upon products ,ideals or services. It includes the name of a product or service and how that product or service could benefit the consumer, to persuade a target market to purchase or to consume that particular brand. These advertisements serve to communicate an idea to the public in an attempt to convince them to take certain action, such as encouraging environment friendly behaviors, and even unhealthy behaviors through food consumption etc. To advertise is to draw the public’s attention usually for the purpose of selling products, or services, through the use of various forms of media, such as print or broad cast and notices. Advertising is not only used as a means to promote a company’s products and services and to drive sales but as a means to build a brand identity and communicate changes Continue reading
Changing Scenario of Advertising Strategies
In recent years, advertisement has grown dramatically. Many people are exposed to several ads every day. Some people can think that advertisements don’t mean anything, but usually ads sell more than they offer. Sometimes, ads can sell values, norms, lifestyles, love, popularity, and happiness. Ads have an important role in society because sometimes those ads tell people who they are or who are they going to be. Advertising has a profound effect on everyone, and sometimes we don’t know that. In fact, marketers spend billions trying to reach audience. Advertising is everywhere from the clothes we use until the food we eat. Marketers use many ways to approach to audience, but some of these methods are unethical. One of these methods is called “divide and conquer”, and its purpose is to increase sales through market segmentation. Marketers use strategies based on social diversification, audience packaging, and product targeting. Even though Continue reading
Advertising Planning – Process and Components
The advertising management is mainly concerned with advertising planning and decision making. The advertising manager will be involved in the development, implementation, and overall management of an advertising plan. The development of an advertising plan essentially requires the generation and specification of alternatives. Decision making involves choosing from among the alternatives. The alternatives can be various levels of expenditure, different kinds of objectives or strategy possibilities, and kinds of options with copy creation and media choices. Thus, the essence of advertising planning is to find out the feasible alternatives and reduce them to decisions. An advertising plan reflects the planning and decision — making process and the decisions that have been arrived at in a particular product and market situation. Advertising Planning Framework Advertising planning and decision making depends on internal and external factors. Internal factors are situation analysis, the marketing program, and the advertising plan. The three legs of Continue reading
Measuring Advertising Effectiveness
All advertising efforts are directed mainly towards the achievement of business, marketing and advertising objectives i.e., to increase the sales turnover and thus to market the maximum profit. The advertiser spends millions in to this advertising activity. In the background of all these efforts, is an attempt to attract the customer towards the product through advertising. As soon as the advertising campaign is over, a need is generally arisen to measure the effectiveness of the campaign. Whether, it has achieved the desired results i.e. desired sales profitability or results in terms the change in customer behavior in favor of the company’s product which will naturally, affect the future sale of the product. In order to measure the effectiveness of advertising copy, two types of tests pre-tests and post-tests can be undertaken. Pre-tests are generally conducted in the beginning of the creation process or at the end of creation process or Continue reading
Make Money with an Advertising Agency
The source of an advertising agency’s income: A manufacturer who operates out of a small and unpretentious office is often impressed (sometimes unfavorably!) by the obviously furnishings in the offices of some advertising agencies. Paying for part of the agency’s overhead, rent, payroll, etc. is naturally going to use up some of the money he spends for advertising. Should he spend his money through an agency, or should he spend that money direct and thus save the cost of the agency’s services? Questions like these are good questions, but the answer to them is often not as clear or simple as it seems. In order to answer them, attention must be focused not on the total costs of advertising agency service but on the additional costs, if any which the use of an advertising agency will involve as against the expenditure of the same number of advertising dollars on a Continue reading