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Marketing Debate Has TV Advertising Lost Power?
Long deemed the most successful medium, television advertising has received increased criticism as being loo expensive and, even worse, no longer as effective as it once was. Ciritics maintain Hi at consumers tune out too many ads by sipping and zapping and that ii Is difficult to make a strongitnprts-sion. '['lie future, claim some. Is with online advertising.
Supporters of TV advertising disagree, contending that the mult i sensory impact of TV is t m surpassed and that no other media option offers the same potential impact
Takv a position: TV advertising has faded in importance versus TV advertising is still I he tnosi powerful advertising medium,
Marliding Discussion
What are some of your favorite TV ads? Why? I low effective are the message and creative strategies'? 1 low are they building brand equity?
Hatnboyant iconoclast Richard Branson roared onto the British slage ¡a the 1970s wtti his innovate Virgin Records. He signed unknown arlüls that no one would touch sad began a marathon ol pubdinity tiial coniinucs lo this cay. He has since sou Virgin ftecords [to thorn-EM tor nea;ly $1 billion in 1992), but be has created over 200 companies wtfthnde whose combined revenues meed S3 billion.
The Virgin name—vie Hiiiit mosl respected brand in Eriijin—gnrl ihe Branson personality cement (he 200 companies. The Virgin name appears on diverse products and services such as pianos, irains. finance, soil dmks, music, mobile phonesjeas, winas, [Riblettinrj, evert bridal wear. Despite the diwsity, an connote vatoe tot money, quality, innovation, ton, and a sense ol cotriiietitive chal sntje. The Virgin Group tooks to- nevv opportunities in markets with endar-scrved. O'röfCha'ged customers and complacent competition. Elranscm called these customer-hostile competitors1 big bail wolves." "Wnetever we fitd llwa, ihsre is a cleat osportunity area fw Virgin lodo a much beller job iban ine com-
petni&i. We introduce tri^l, innovation and customer Irieniliness where ihey oon't exist," Branson said.
Fes exampic, Branson launclied Virgin Atlantic Airv/ays lo take cn stodgy, overpriceit Mr iris;!"" Artyoys, A master of Ihe strategic publicity stun;. Branson announcsd tiie new airline in a way guaranteed to gain free advertising. Wearing World Wgr l-eta flying gear, he announced ths formate of Virgin Atlantic Airways:oo Fefirusny 29,Ilie fist Virgin flignt.qn Jtini 22,1554, took oil raden with celebrities and media. The flight came equipped dth a bras$ band, wgiiers from Mamms in white lie antf tails, and free-flowing champagne. Tne aitbnrne party en[oycd international press coverage and mil ions ol dollars' worth of ¡ree publicity. Branson mew mat plwtographets have a job to da and they'd tum uo at his evenis il he gave item a good reason,
Similarly, when Branson launched Virg-n Cola in the United Slales in 1998. ■ie steered an army lank down filth Avenue in Hew York., garneuriif interviews on each of the network motmng TV allows as a result, in 2002, He plunged mio
Times Square connected to a crane to announce tiis mobile phone business. In 2004, '-hen Introducing a ¡me of hip leciiie gadgeis called Virgin Pu^se. Benson again tocft center stage, this Hue al a nightclub in New York City. He arrived wearing a pair ol tesil colored lights and a poriaDte CD plijyer to covet ttie family jewels,
Tlie Virgin Group evokes wUi each new business venture. 'Tne Drand is regenerated, ralhet than emended in Uie ConvSntwnal sense, by each business we become involved In," Branson sa'd. "We are in essence a^i unusual venture capital organisation: a branded one.'' Rather man simply offering financial backing, the Virgm Group offers powerful branding and management resources ta stagnant organizations thai Branson acquires. Branson usually retains percent central of all Virgin-branded businesses. but he insists on a highly decentralized and irat management slruclure so thai employees are ¡¡^powered In make decisions.
Although Branson avoids iradiltiiial market research lor a "screw it, lei's do it" attitude. lie stays in touch ihrough constant customer coniacl When he lirst set up Virg n Atlantic, he called 50 customers every month lo etiat ami [)et liieir feedback. He appeared in a rpats lo tuh elbows with customers, and ii a plane was delayed, he handed out g fl oertilicates lo a Virgin Megastore or tiscounls on lulure trawl
Virgin's marketing campaigns include press and radio ads, mrect mail, and point-of-sale material. Virgin Mob le. for example, rated out a postcard advertising campaign offering consumers discounts on new phones
To identify where listeners to Virgin's Web-based Virgin Radio reside, me company created a VIP club, l.isteneis join Pie club by giving their postal Code, which then lets Virgin Radio large! promotions and advertising to specific locations, just as a local radio slalion would Once knew as the 'hippie capitalist," now kn:gh!ed by Ihe Ouee« nl England, -Sir ¡üchand Branson «¡mtinues to look (or new businesses and generate publicity in tus characteristic charismatic style. Remembering the advice of hs friend a&out publ :ity—"If you don't give them a photograph Iftat will get Ihcm on Ihe Iront page, they won't turn up al your nem event"—Branson always gives ttiem a leason
Discussion Questions
1. What have teen the key success ¡actors lor Virgin?
t Wheie is Virgin vulnerable"? Wlial should it watch out tor?
2. What recommendations would you make lo Virgin's senior iryrkei.ng executives going lorwardi? Whal should they he sure to do with their marketing?
Santas: Sean Haiyrave, "Making Waves," New Media Age, Jarnary Ii, 2ÜDJ. pp. 24-Si; Adam Lashmaty. "Stiootait in &jdgp Land." fortune. Number io, JQOfJ. p 74; Sam Hill und Glean Fti'kin. Radial tärtenry \bfk- Harper Builnes, 1099;-: "Virgin Holiday store Hires HIM for Major PiEti." Precision Itoketing. January 23,2ÖM, » 3-1; 'Virgin Vrt» (Words Oner Dtecourts.' Pm&on Marketing, Jantiaty 23, iOO-1, p|). S-G; anri<,,,w;viri]ln.MTl>
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