Staff Writer: Carolyn Johnson
Although any Los Angeles marketing company – and advertising in general – would be concerned with the quickly fluctuating world and new technologies, what is vastly more important is how advertisers and marketers adjust to such changes. Perhaps one can learn about how to handle future changes by looking to the past to guide us.
Advertising has always been a tool that assists marketing in driving forward, with marketing as a tool to help the economy. Some of the advertising theories that have been proclaimed in the early days of advertising, believe it or not, still hold their own today.
For example, an advertising scholar from 1956 wrote an article on advertising, back when there was a similar revolution in advertising and media (i.e. the fear of television overcoming print media and Los Angeles outdoor advertising). The article in question covered product differentiation versus market segmentation. Product differentiation is a strategy that seeks to persuade mass audiences that their brand’s product is better than all the rest, due to being different and superior to other competitive brands.
Market segmentation, on the other hand, is the concept that suggests that appealing a single product to a mass audience isn’t necessarily the way to go, since the demands each audience is different. Market segmentation suggests that a brand should appeal to smaller but unique markets within the mass audience.
An example of market segmentation occurred with the release of the Volkswagen Beetle in the 1950s, which offered a small, affordable, unusual car during a time when powerful, stylish cars were all the rage.
The world of the Internet and digital media has taken market segmentation to a whole new level, with more interactivity and advertisers appealing to more niche markets than ever before.
There comes a concern in product differentiating when the unique market you’re advertising too becomes too competitive. What occurred in large brand name firms, then, was the brand names adopting their own marketing and advertising agency in Los Angeles, thus controlling all aspects of production and marketing of a product. In the 1960s and 1970s, focus remained more on product differentiation, whereas later in the 1980s and 1990s, branding sought out a more umbrella approach to marketing, attempting to market to the masses instead of one particular group.
In the 1980s, the idea of integrated marketing communications came to be as a way to make brand communication more efficient. Yet in today’s world, competition may effectively trump or outdate the work of marketers and advertisers that were based on integrated marketing communications.
We return, then to an age-old question: what can one brand do that others can’t do or copy? The answer is that other brands cannot copy a single brand’s relationship with customers. Customers are attracted to not the best brands on the market, but brands they can trust and with which they’ve had healthy relationships in the past. The answer to some marketing problems, then, may lie in capitalizing on customer loyalty, marketing primarily to current costumer so that they keep investing in the brand.