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APR 221 Lecture Notes

by: Kate Steiner

APR 221 Lecture Notes 211

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Kate Steiner
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All in class notes for test 1
Intro to Advertising
Dr. Joseph Phelps
APR, 221
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This 6 page Bundle was uploaded by Kate Steiner on Wednesday February 10, 2016. The Bundle belongs to 211 at a university taught by Dr. Joseph Phelps in Spring 2016. Since its upload, it has received 180 views.


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Date Created: 02/10/16
1/19/16 Dr. Phelps’ Definition of Advertising:  A PAID form of persuasive communication that uses mass and interactive media  to reach broad audiences in order to connect an identified sponsor with buyers (a  target audience), provide information about products (goods, services, ideas), and  interpret the product features in terms of the customer’s needs and wants.  Idea—A creative person’s concept used to relate (or connect) the strategy to the  audience   Methods of Classifying Advertising 1. Type of audience (consumer or business( 2. Type of Media Used a. Radio b. TV c. Print d. Online Media 3. Geographic Area a. Local  b. Regional c. National d. Global  Types of Business to Business advertising “B–B” o Industrial—advertising directed at companies that might use your product  or service in the production of their own o Trade—The advertising of goods and services to wholesalers and retailers  o Professional—Advertising directed at individuals who operate under a  code of ethics or set of professional standards o Agricultural—Advertising directed to farmers and to others in the  agricultural business ________________________________________________________________________ 1/21/16 Method’s of Classifying Advertising 1. Type of Audience (Consumer or Business) 2. Type of Media Used 3. Geographic Area 4. By Purpose  a. (Product vs. Non­product) b. (Primary vs. Selective Demand) c. Direct Response vs. Awareness) Brief History Of Advertising  Volney Palmer, 1841—Media Representatives  o Their job was to buy and sell space  John Powers, 1880s o Helping to create messages  George P. Rowell, 1880s o Creating ads  Francis Ayer (N.W. Ayer & Sons), 1890 o The birth of the “Modern” Ad Agency ________________________________________________________________________ 1/26/16 National Advertising and Branding  The Struggle is Real! o The Struggle is Real!  The fight that launched national advertising: o The combatants were Producers vs. Retailers Early 1900s  Era of Reform o Development of Professional Codes of Conduct o Academic programs in advertising World in Turmoil WWI Depression WWII Post War  Television  Evolution of Media Choices  Slow Evolution of Advertising Industry What’s Happening Today?  Audience Identification  Message Creation  Message Dissemination  Advertising is an aspect of Marketing o Marketing: the process of planning and executing the conception, pricing,  promotion and distribution of ideas, goods and services to create  exchanges that satisfy individual and organization objectives o Marketing Concept: holds the key to achieving organizational goals can be found in determining the needs and wants of consumers and delivering the desired satisfactions more effectively and efficiently than competitors  Marketing Mix: o Product o Place o Price o Promotion  Promotion Mix o Advertising o Public relations o The management function that focuses on the relationships and  communications that individuals and organizations have with other groups (called publics) for the purpose of creating mutual goodwill  o The primary purpose of public relations is to manage a company’s  reputation and help build public consent for its enterprises  Sales Promotion o A direct inducement offering extra incentives all along the marketing  route00from manufacturers through distribution channels to customers— to accelerate the movement of the product from the producer to the  consumer  Personal selling o A sales method based on person­to­person contact, such as by a sales  person at a retail establishment or by a telephone solicitor  ________________________________________________________________________ 1/28/16 Where does Advertising fit?  Marketing Mix  Promotion Mix  Push vs. Pull promotional strategies o Look at where/which audiences the promotional effort are aimed Impact of Culture on Advertising  Culture influences consumptions rituals and influences interpretation of the  message  Culture: o A homogenous group’s shared set of beliefs, attitudes and ways of doing  things, typically handed down from generation to generation Comparative Advertising  Advertising that claims superiority to competitors in one or more aspects o E.g. Coca Cola says they taste better than Pepsi, but Pepsi says the same  thing about Coca Cola Influence of Advertising on Culture  Many say that advertising has a negative influence on society Areas of Advertising Criticism 1. Product Advertised o Tobacco products o Alcoholic beverages o Condoms and other sexually related products 2. Advertising Content o Negative stereotypes o Insulting portrayals/situations o Sexual suggestiveness o Falsity/exaggeration 3. Advertising Exposure o 4. Influences on Human Behavior ________________________________________________________________________ 2/02/16 2. Advertising Content  Negative stereotypes  Insulting portrayals/situations  Sexual suggestiveness  Falsity/exaggeration  3. Advertising Exposure  Repetitious   Intrusive 4. Influences on Human Behavior  Promotes materialistic values and lifestyles  Lowers values and moral standards  Exploits susceptible segments of society such as the poor, the elderly, the  mentally ill, and the young Ethical Systems  Standards or guidelines suggesting what behavior is appropriate or inappropriate   External System: Based on institutional codes, guidelines, regulations and  procedures   Internal System: Depends on the individual to decide what is right or wrong Groups Exercising Control Over Advertising 1. Government (Fed, State, and Local) 2. Industry Self Regulation 3. The Media 4. Consumers 5. The Courts *Who are the major players within regulation of the media? ­Federal Trade Commission FTC ­Food and Drug Administration FDA ­Bureau of Alcohol, Firearms and Tobacco ­US Patent Office ­USPS 2/04/16 Deception  The FTC policy is that deception exists if:  There is misrepresentation, omission of information, or practice that is likely to  create a wrong impression in the minds of reasonable consumers and if the  representation, omission, or practice is likely to affect consumer conduct or  decisions with regard to the advertised product or service.  Consent Decree o A negotiated settlement or formal agreement between the FTC and  advertiser specifying the actions to be taken by the advertiser.  Litigated Cease & Desist Order o The FTC brings the advertiser to face an administrative law judge or panel of judges. If the FTC wins they write up the order that specifies what the  advertiser must do to address the problems with the deceptive ads  Potential Remedy  Affirmative Disclosure o Including additional information in the ad so that it is no longer deceptive  Corrective Advertising o Creating entirely new ads in order to correct the misperceptions created by the earlier deceptive ads FTC Allows:  Puffery: an exaggerated subjective statement that probably would not be taken  seriously by the ordinary consumer Regulation State & Local  At the state level, advertising regulation is lead by the State Attorney General There is little regulation at the local level, with the exception of out of home advertising  ________________________________________________________________________ 2/9/16 Regulation by the Media  Media Clearance: o Decision by a broadcaster or publisher to accept the ad Industry Self Regulation Council of Better Business Bureaus  1 National Advertising Division (NAD  2 National Advertising Review Board (NARB)  Children’s Advertising Review Unit (CARU) Regulation by Consumer  Action for Children’s Television  Boycotts and the Power of Money The Courts  Summary of roles played by the courts: advertisers can appeal FTC & other  government agency rulings in court.  Advertisers can take other advertisers to Court directly  State Attorney Generals use the courts to prosecute cases when they find  deceptive advertising practices Economic Environment  Effects of economy on advertising  Effects of advertising on the economic environment facing individuals  Two schools of thought o Advertising=Market Power  Assumes advertising is all about persuasion  1. Advertising leads to industry concentration  2. Creates barriers to entry and reduces competition  3. Increases prices o Advertising=Market Competition  Assumes advertising is persuasion and information  1. Advertising Allows entry   2. Increases competition  3. Decreases prices Review for Exam 1  Exam Structure:  o 13 multiple choice and T/F questions and each = 2 points o 1 fill in the blank and 4 short answer o Total Points=50  Sample Questions 1. A; Puffery 2. The FTC can require a company to do corrective advertising: what is  corrective advertising?


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