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Today brands are born, not made. A new brand must be capable of generating favorable publicity in the media or it won’t have a chance in the marketplace. And just how do you generate publicity? The best way to generate publicity is by being first. In other words, by being the first brand in a new category.
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Publicity is usually explained and justified as a competitive medium which ultimately benefits the public (the consumer) and the most efficient manufacturers - and thus the national economy. It is closely related to certain ideas about freedom: freedom of choice for the purchaser: freedom of enterprise for the manufacturer. The great hoardings and the publicity neons of the cities of capitalism are the immediate visible sign of "The Free World." For many in Eastern Europe such images in the West sum up what they in the East lack. Publicity, it is thought, offers a free choice.
All the recent marketing successes have been PR successes, not advertising successes. To name a few: Starbucks, The Body Shop, Amazon.com, Yahoo!, eBay, Palm, Google, Linus, PlayStation, Harry Potter, Botox, Red Bull, Microsoft, Intel, and BlackBerry. A closer look at the history of most major brands shows this to be true. As a matter of fact, an astonishing number of well-known brands have been built with virtually no advertising at all. Anita Roddick built The Body Shop into a worldwide brand without any advertising. Instead she traveled the world looking for ingredients for her natural cosmetics, a quest that resulted in endless publicity. Until recently Starbucks didn’t spend a hill of beans on advertising either. In its first ten years, the company spent less that $10 million (total) on advertising in the United States, a trivial amount for a brand that delivers annual sales of $1.3 billion today. Wal-Mart became the world’s largest retailer, ringing up sales approaching $200 billion, with little advertising. Sam’s Club, a Wal-Mart sibling, averages $56 million per store with almost no advertising. In the pharmaceutical field, Viagra, Prozac, and Vioxx became worldwide brands with almost no advertising. In the toy field, Beanie Babies, Tickle Me Elmo, and Pokémon became highly successful brands with almost no advertising. In the high-technology field, Oracle, Cisco, and SAP became multibillion-dollar companies (and multibillion-dollar brands) with almost no advertising.
Advertising works. Brand names are better known if they are advertised with sexy or alluring pictures, and better-known brands sell better. Why does it work? Because the price the consumer would have to pay in ignoring the subliminal message is just too high. It is better to be fooled into buying the second-best ice cream than go to the bother of educating yourself to resist the salesmanship.
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