Last night, I was watching the Seattle local news when I saw a new ad–from Boeing! The actual content of the ad was predictable, but why does Boeing bother with advertising? Obviously, you’re not going to the store to pick up a 747 and there are much more efficient ways to reach the companies that buy them than broadcast TV. Why does Boeing, and other non consumer firms like Basf and Archer Daniels, bother with broadcast advertising?
Mostily, I think, it’s about what the industry refers to as branding. They’re not so interested in getting the average consumer to buy their product; rather, they’re interested in getting the average consumer to equate their name with the product. YOU may never have the opportunity purchase a Boeing product but, through their adverstising, you’ll become familiar with Boeing and what it does. When you think “aircraft,” you’ll think “Boeing.” When you have some investment dollars to kick around, maybe you’ll pick up a share or two. When Boeing is involved in pending legislation or a bond issue or whatever, you may be on their side and vote accordingly (or encourage your representative to vote accordingly).
There’s also a fair chance that someone seeing that actually will, someday, have a chance to buy a Boeing product. Maybe not directly, of course, but who knows how many people who saw that ad might some day be involved in the airline industry and be involved in purchasing. In that case, the ad they saw might be buried somewhere in their subconscious.
For one thing, public perception factors into an airline’s choices when it comes to buying aircraft. The DC-10’s questionable early safety record adversely affected its operators for a while.
Besides, most of these companies have at least a small interest in consumer retail. BASF was one of the leading suppliers of audio casettes, for example, and presumably still produces stuff like that.
Anyway, if you’re, say, a purchasing manager, do you really think you’d be paying attention to the bajillions of unsolicited product reference guides and testimonials and such things you see every day?
ETA: People also like brands whether they directly consume related products or services or not. Wouldn’t you like a Boeing hat?
I won’t call it a WAG, but IANA Economist. I’d like to think I’m familiar enough with this that it’s more of an educated guess, but take it for what it’s worth…
I think the reasons they advertise on television are a lot of the same reasons consumer companies advertise, but most importantly is name recognition. When a company that might use your services or products is considering, if they’re familiar with your name, they’re more likely to choose your service or product.
Another reason is indirect, but I think just as valid; they want to have your customers recognize their name. If travelers have a choice between using an airline that has Boeing planes versus an airline that uses Brand X planes, which one do you think more of them will choose? Probably the one that has more name recognition which, again, reflects on those airlines wanting to buy Boeing planes over Brand X because it may bring more customers.
I also imagine name recognition helps with boosting stock value, but I imagine someone with more knowledgable in that area will do a better job of explaining that than I would
I wondered the same thing when I first saw the BASF ads, “We don’t make any of the products you buy, we make the products you buy, better.” So although you might not buy something they made, you may see a BASF logo on the back of a package and think, “Hmm, this must be better.”
But, back to the OP, aside from all the reasons HeyHomie mentioned, remember that a company like Boeing that is always designing commercial aircraft, defense systems, and working on government contracts is always looking for engineers. Working for a well-known company could be a dealmaker for a qualified, if inexperienced (read: cheap salary) engineer.
ETA: Funny that both Really Not All That Bright and I both mentioned BASF.
Because they want to reach people that make decisions about doing business with these companies.
ADM adveristies on the Sunday news shows because a lot of political insiders who have influence over farm legislation watch them.
I’m probably the only one who will enjoy this observation, but this exact question (why does BASF advertise?) was my very, very first Straight Dope Message Board post, way back in the AOL days.
Edit: Heh, forgot to say what the answer was, back then: “Investors. It’s about selling stock and keeping the price up.”
The other night during the Kentucky Derby, I was astonished to see Yum! Brand advertisements (and they were also the principal sponser). No, not individual restaurant commercials a la “eat here,” but definitely investment oriented, e.g., fasted growing chain, largest restaurant company, blah blah blah.
On the local AM radio here, we get commercials from automotive suppliers all the time. Sometimes this works, because there may be a company that doesn’t know who I am in order to get a hold of me, and I don’t know they exist, and so the exposure could lead to a business opportunity.
As a person who can fly but is really scared to do so, it does make a difference on what type of aircraft I’m flying and who makes it.
Reminds me, I need to pick up a six pack of 747’s at Costco tonight. Anyone need anything else while I’m there?
I would imagine that it is also about politics. A company like Boeing is highly subject to government decisions about contracts, airline regulation, labor, etc. If people have a positive opinion about Boeing, they may be less likely to support policies that might hurt Boeing. I think that’s why you see so much PR for the oil companies during the news shows these days. They know serious political change is coming, and they want the public to sympathize with them when that time comes.
Pick me up a couple flats of Bösendorfer grand pianos, and a quart of diamonds.
I’m not that scared to fly, but I admit I feel sceptical when boarding an Airbus. Probably not through any kind of brand loyalty, but I’m much more used to flying on Boeing and MD aircraft.
Because they want to buy influence?
“Drop that negative news story about the wings falling off our bombers, or we pull our ad.”
Perhaps not, but it shouldn’t be ruled out.
I got my .15 seconds of fame in a commercial for the 777. I was paid 8 hours of overtime for the 3 minutes it took the film the sequence I was in. As stated, Boeing does it for brand recognition.
Psst, hey buddy. Make you a heck of a deal on a dozen 737’s. I will use my oversized backpack tomorrow at work. You will have to paint them yourself though.
Correct. No accident that you see a fair number of ads for corporations individual consumers may never interface directly with, and that some of these are in politically-sensitive industries (defense contractors – I’ve seen lots of TRW and United Technologies ads over the years) or pharma and oil companies (what proportion of energy company ads these days has some goofy green theme? Hint: it’s much larger than the proportion of the company’s income or capital investment that flows from actual wind farm or tidal energy generation projects, but boy those green fields full of windmills or the surging waves breaking on the shore look real purty and non-threatening).
And as someone else mentioned, there may in some instances be company to company synergy. I recall Continental being happily surprised when the 777 came out and they were a big early adopter that people were fascinated by the plane, asked about it by name, to the extent that they started theming some of their ad pitches around the plane itself. Boeing would be well-advised (and this may be part of what’s going on) to run general media ads hyping people up for how cool the 787 will be, passengers begin looking for which airlines will be launch customers so they can try it out, everyone’s a winner.
Ooohh! Could you please pick me up an Ascari 10, a kilo of unobtainium, and Amanda Peet?
I’ll pay you back next Friday. Promise. Thanks a million.
I’ll take two.
Actually, there’s a pretty good chance that we will be buying “a six-pack or more” of Boeing aircraft, or deciding whether to do so. Remember that we live in a representative democracy, in which our Congresscritters pay attention to squeaky-wheeled constituents. And one of the largest customers for aircraft is the U.S. Air Force. Should we buy domestically, from Boeing or MD, and keep jobs and dollars here, or get a value from Aviane or that Brazilian manufacturer? We influence that decision – and Boeing’s ads influence us. Darn good reason to keep their name before the public, IMO.