Do Advertisers Ignore Older Consumers?

This past Sunday my family and I decided to watch the Grammys together. After Beyonce and Jay-Z had graced the stage, the first set of commercials had rolled across the screen as we sat there captives in our seats watching whatever had flashed across the screen.

After viewing the first half of the Grammys and the commercial breaks throughout the program, I noticed that the featured advertisements shown during this time were generally catered to a younger audience. Without them saying anything, I had seen my parents (ages 50+) become disengaged and uninterested in the show. 

The question that formulated in my mind was, "Why are the Grammys and advertisements shown throughout the show ignoring the senior audience?"  

In class we covered the topics of marketing segmentation and ways companies use strategies to capture target markets. In this particular case, the Grammys were obviously targeted to a younger audience. The marketers of the Grammys had neglected the older viewers based on the assumption that this age group of Americans are not interested in current music and are stuck in the past. The Grammys are only one example of how the media, along with their advertising agencies ignore older consumers. This is  alarming because recently birth rates have been falling, while the senior demographic, which consists of the Baby Boomers is rising in the United States. Marketers need to be aware that the older demographic is a powerful purchasing group, and can be one of the most profitable markets in America. In fact, "...people ages 50 and older own 80% of the finical assets in the country, and also account for half of all discretionary spending" in the United States alone ("Are packaging designers ignoring the strongest segment of their audience?", 2011). 

I believe advertising agencies have trouble connecting, and communicating to senior markets. Many of the younger people who work in these creative departments of advertising agencies cannot develop ads that connect with older consumers because of the age-gap. This is a huge problem because it is essential for marketers to understand how consumers interpret their messages, react, and respond to the company's products or services.  The way consumers ages 50+ perceive advertisements and respond to an ads might be different from how younger demographics might view the same ad. Generating ads that have clear messages directed to different demographics or multiple ads directed to each demographic is essential for marketers in order to reach both markets. 

Not being able to reach an older market is a lost opportunity of marketers and their companies.

A company that has succeed in generating great advertisements focused on the senior demographic is AARP, also known as the American Association of Retired Persons. This company has created ads using different media sources and promotional techniques. Today, AARP's ads are shown throughout different magazines, commercials and billboards. These ads have captivated the elderly market, generating a large amount of revenue from this demographic alone. Their messages are clear and easy to understand and decode. For example, one AARP ad that demonstrates a clear message features an upset looking elderly women with the words "I am a Grandmother Not A Line Item On A Budget, Tell the Senate to vote "no" on cuts to Social Security benefits." This ad sends a clear message to the elderly to vote "no" on Social Security benefit cuts. The image alone can make this audience feel distressed before reading the text. After viewing the image, and reading the text the advertisers will tap into how consumers are feeling, and might persuade them to feel a different way about that topic. 


To view ad click link below: 
http://www.adweek.com/files/imagecache/node-detail/news_article/aarp-grandmother-obamasatan-hed-2013.jpg

Some critics argue that most advertising agencies ignore the elderly, but in fact, some companies and advertising agencies focus directly on this market. Advertising is about the consumers, and how they can appeal to the consumers wants, forcing the audience to generate that want into a need. If a advertisement is not clear, and does not generate a lucid message to the captive the audience, the consumer will not be able to decode its meaning as a result.

References

Are package designers ignoring the strongest segment of their audience? | Packaging World. (2011, December 9). Retrieved from http://www.packworld.com/package-design/strategy/are-package-designers-ignoring-strongest-segment-their-audience

Belch, GE. and Belch, MA.  Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition.  McGraw-Hill Companies.  2012.

AARP Ad. Retrieved from http://www.adweek.com/files/imagecache/node-detail/news_article/aarp-grandmother-obamasatan-hed-2013.jpg

Why do advertising agencies lose accounts?

I've looked into several reasons why major advertising and public relations agencies lose their clients.  The most common reasons why agencies lose accounts is because of the performance of the agency in relation to the clients needs want wants. Many companies have had long lasting relationships and have formed loyalties to their agencies, but as of lately this trend is diminishing. In the growing and fast paced advertising and marketing world has given companies the ability to move from agency to agency in order to achieve results that satisfy them, and that generate the most proficient advertisements that will entice the majority of consumers. Agencies should be aware of the company's needs in order to maintain a healthy relationship with their client and keep the client happy. The themes that revolve around agencies losing clients are as follows:

1) Clients can become dissatisfied with the agencies performance, service, and quality 

2) The client and agency relationship suffers from a lack of communication

3) The visions of the client might be unrealistic for the agency to provide

4) Personality conflicts between the customer and agency

5) Changes in management from with inside the agency and/or company 

For example, PepsiCo had a long relationship with Batten, Durstine and Orson, also known as BBDO, dates back to the 1960's. After several decades PepsiCo decided to terminate the relationship they had with BBDO with some of their products. As I said, BBDO still handles the advertising for some of Pepsi-Cola, specifically Mountain Dew and Sierra Mist. The reason why PepsiCo decided to join other agencies to market some of their brands is because BBDO was underperforming with those brands. PepsiCo and other soft drink brands have suffered in recent years due to customer perceptions of soft drinks negatively effecting sales. Meanwhile they spent $130 million dollars in advertising, but did not generate as much revenue as they wanted to with Mountain Dew and Sierra Mist. PepsiCo's SoBE and Pepsi-cola (in the U.S) are now under the Arnell agency. These are their most profitable and popular drinks Other controversies that lead into PepsiCo's departure with BBDO was due to personnel changes within BBDO. In 2004, BBDO had fired their former Chief Executive Ted Sann, which angered PepsiCo because they had a personal connection and close relationship with him. 

Companies have the ability to switch agencies at will. If the client is not happy with the performance of the agency they will leave. Even though PepsiCo had a long term relationship with BBDO they were unsatisfied with the agencies preformance which reflected in it's sales. And as previously states, came as result of the change within BBDO's upper management. The relationship of Pepsi and BBDO ultimately depends on Pepsi's satisfaction with their sales of their individual products being marketed. If the products are not selling then Pepsi can attribute this to BBDO's advertisement to consumers and fire them. Moral of the story, as an agent your clients product better sell or you'll receive the boot, losing out to a different advertising and public relations firm.

Sources:

BBDO's Recent Wins Quench Thirst Left by Diet Pepsi Loss - Businessweek. (n.d.). Retrieved from http://www.businessweek.com/stories/2005-09-12/bbdos-recent-wins-quench-thirst-left-by-diet-pepsi-loss

Belch, GE. and Belch, MA.  Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition.  McGraw-Hill Companies.  2012.

Pepsi Changes Ad Agencies After Decades With BBDO - WSJ.com. (n.d.). Retrieved from http://online.wsj.com/news/articles/SB122694177366333917

WELCOME!

Hello World! 

My name is Kianna Hedjazi. I attend Chatham University, working towards a degree in International Business with a minor in communications concentrating in Public Relations. This blog was designed to correspond with my BUS350 Advertising and Promotion class. The topics discussed in this course focus on integrated marketing communications and will be the focus of my blog. If you are interested in advertising and promotion take a look !

-Kianna 

Is Integrated Marketing More Efficient than more Traditional Advertising?

As you may or may not know, integrated marketing differs from traditional advertising and promotion in several ways. In recent years, more and more corporations have been ditching traditional views of mass marketing for an integrated marketing approach.
Why are companies more keen to integrated marketing over traditional advertising?
Integrated marketing communications uses various channels of communications for marketing. In the past, television had occupied many peoples times creating a direct way for companies to advertise but now in the more recent technologic age it is not as efficient of a marketing technique. Various IMC tools such as billboards, stadiums and transit advertisements can be used in big cities in order to reach larger markets.  Using these IMC tools favorable outcomes will come out of using these procedures rather than marketing only though one medium. Traditional advertising only uses advertising messages where the concept includes both online and offline marketing mediums.

In contrast, using the ideals of  IMC companies have the ability to use different media source to market their products, attracting consumers from various media outlets. Furthermore, the IMC uses business strategies to ultimately develop and recognize relevant target audiences promoting the company.  
Marketers choose IMC methods over traditional advertising and promotion because intergraded marketing involves targeting the customers that will be the most interested in the product they are marketing. Also, the public responds better to two-way interaction, allowing the message to become more focused. This way is more innovative, and profitable than marketing to the masses that have little interest in your product.