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Susan has an MBA in Management from the University of North Alabama. She teaches online and campus-based Business courses.
Imagine for a moment that your company just developed an exciting new product that will revolutionize the way people communicate. You'd want to get the word out and create as much anticipation and excitement as possible, right? Naturally, you'll want to inform the public what the product is, what it can do, and where they can find it. But that's just the beginning. Your job as the head of the advertising team will be to convince people that their lives will be fundamentally better if they purchase this exciting new product.
Creating a buzz about a new product category through informational ads is known as pioneer advertising. Pioneer advertising informs the public about groundbreaking new products that have features not previously available. A frequent strategy for pioneer advertising is to begin the campaign in the product development stage, before it is even available to the public. This heightens anticipation and gets people talking about the product in a favorable way. There won't be any distraction from competitors…because there aren't any competitors, yet!
Some companies prefer the strategy of keeping things under wraps until the product is actually available and will begin the pioneer advertising campaign in the introduction stage of the product life cycle. In either case, whether you begin your campaign before the release date or immediately after, the goal is to get the word out and inform the public. Advertising costs are generally high during this period in order to quickly create customer awareness and create a demand for the product.
One of the most prominent examples of pioneer advertising is Apple's unveiling of the iPhone at the Macworld Exposition. Steve Jobs chose his words carefully in January of 2007 when he introduced the revolutionary new device with the multi-touch interface:
'An iPod, a phone, an internet mobile communicator... these are not three separate devices! And we are calling it iPhone! Today, Apple is going to reinvent the phone. And here it is…
When the iPhone was released later that year on June 29th, 2007, six out of ten people surveyed reported that they knew about the iPhone before the release date. Thousands of people across the country lined up outside Apple stores for several days before the phones went on sale. Many locations ran out of iPhones in less than an hour after opening for business, and disappointed customers were turned away. Seventy-four days after the iPhone was released, Apple sold their one-millionth unit.
Similarly, when Apple introduced the first iPad in 2010, their strategic use of advertising created a demand before the launch date, which resulted in 300,000 iPads being sold on the very first day it became available! At the end of 80 days, they had sold three million iPads.
Another good example of pioneering advertising is found in the product launch of the original Sony Walkman. The Walkman, introduced in 1979, was the first personal stereo tape deck. It changed how people experienced music, so it was the perfect candidate for a shrewd pioneering advertising campaign.
Sony's strategy for the Walkman was to position it as a fashionable status symbol. Consumers were encouraged to become early adopters to show the world they were smart, savvy, and financially secure. The campaign was a success. Sony originally predicted they would sell 5,000 units a month when the Walkman was introduced in Japan, but they sold nearly 50,000 units in the first two months!
Pioneer advertising is the name given to the advertising campaign to launch a brand new product category. The purpose of pioneer advertising is to inform consumers what the product is, where it can be found, and how they can benefit from it. Advertising expenses are generally high during this stage in order to reach as many potential customers as possible. Successful pioneer advertising can be summed up in one sentence: Five minutes ago the customers didn't even know the product existed, but after seeing the ad, they just have to have one!
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Introduction to Business: Homework Help Resource25 chapters | 508 lessons | 1 flashcard set
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