Page 274 - (DK) The Business Book
P. 274
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IN GOOD TIMES PEOPLE
WANT TO ADVERTISE;
IN BAD TIMES
THEY HAVE TO
WHY ADVERTISE?
IN CONTEXT When a recession
begins, consumers
FOCUS cut back.
Advertising
KEY DATES
1729 Benjamin Franklin, Makers of Brand A Makers of Brand B
maintain or increase
scientist and Founding Father cut advertising spend advertising spending,
of the United States, advertises to bolster profit.
risking profit shrinkage.
his company’s inventions in
the Pennsylvania Gazette.
1840 The world’s first
advertising agency is founded Profit may be maximized
in Philadelphia, PA. in the short term but Profit may suffer in the
short term but customers
customers forget about
1939 Coca-Cola uses Santa stay aware of the brand.
the brand.
Claus in its ad campaign,
helping to create the rotund
figure so well known today.
1955 The iconic Marlboro In bad times people have
Man ad is launched and is to advertise.
hugely successful, despite
research that links lung
cancer to smoking.
n the corporate landscape times people want to advertise;
1994 HotWired becomes the
advertising is sometimes seen in bad times they have to” is that
first website to sell banner ads;
a
I s a waste of money, and advertising should be employed as
a year later the first server
expenditure on it is often the first part of an ongoing effort to build
able to track and manage part of the budget to be cut back relationships with existing and
ads is released. during a recession. The point that prospective customers.
advertising executive Bruce Barton Barton, who was responsible
(1886–1967) was making with his for some of the key American
much-quoted statement “In good advertising campaigns of the 1920s
