Friday, October 25, 2013

Ch. 16 - Advertising, Public Relations and Sales Promotion


Apple’s Inc. is probably one of the most known companies in the world. It is impossible to achieve popularity like Apple’s based only on the quality of your products. Product advertising is one of the most important tools if not the most important, of the promotional mix. Apple's success in advertising its products is not something new to the company. For over three decades ,Apple has spent millions of dollars participating in every kind of advertising from institutional to product advertising. Its most significant ad campaigns include the "1984" Super Bowl commercial, the 1990s Think Different campaign, and the "iPod people" of the 2000s. Apple's ad budget rose only marginally from a base of $467 million in 2007 until 2010.  Then, recognizing the importance of the promotional mix and advertising, Apple doubled its Ad budget to $ 1 billion a year in 2011. That year, Apple began a series of new product launches in both the iPhone and iPad lines that has continued unabated. This might sound like a lot of money to spend for the everyday person, but with such fierce competition, Apple has to constantly improve and increase its Ad budget.


Just a couple of weeks ago, the TV advertising analytics firm, Ace Metrix, found that Samsung's ad featuring clips from futuristic shows and movies which featured technology similar to their new Galaxy Gear smart watch were very successful. Dreams of the past had become reality! This ad scored an extremely strong 682 on its 950-point Ace Score scale, whereas Apple’s most popular ad for the Iphone 5C, only scored a 522. The advertisements are displayed below. See for yourselves.
 Apple's Iphone 5C Advertisment
Samsung Galaxy Note 3 Gear Smart Watch TV Commercial
 

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