Comm 3444 Midterm 1 Study Guide
Comm 3444 Midterm 1 Study Guide 3444
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This 10 page Study Guide was uploaded by Emma Dahlin on Friday February 5, 2016. The Study Guide belongs to 3444 at Ohio State University taught by Amy Nathanson in Spring 2016. Since its upload, it has received 585 views.
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Date Created: 02/05/16
Comm 3444 Study Guide for Midterm 1 Definition of Advertising o “to give notice, to inform, to notify, to make known” o “a paid, non-personal message from an identifiable source delivered through a mass-mediated channel that is designed to persuade” “Successful” advertising o Information o Reasoning o Emphasis Ambient advertising o Advertising is everywhere, we are bombarded by it o Ads are placed on unusual items or in unusual places you wouldn’t normally see them o Ads can be found anywhere and everywhere! o “ad creep” Non-traditional media placements (naming rights, product placement) o Naming Rights: corporation or other entity purchases right to name facility or event, typically for defined period of time o Product Placement: branded products/services noticeable within a drama production with large audiences (companies pay to have products featured) Goals of advertising (awareness, influence attitudes and behaviors, branding) o Breaking through the clutter o Influence attitudes & behavior Opinion Creation Canalization: channel existing needs to the product Opinion Conversion Action But immunization can occur too o Product Differentiation Distinguish from competition Relevant differences Perception of difference o Branding Crucial to a product’s success Positioning & identity Recognition and loyalty Main point of video “The Persuaders” o Giant companies spend billions of dollars and millions of hours trying to determine how to persuade consumers what to buy and what to think o Cultures of marketing and advertising influence not only how Americans buy but also how they view themselves and the world around them o However, while techniques of persuaders have become more sophisticated and complex, consumers have become more resistant to marketing messages o Clutter creates a dilemma for advertisers – need to know how to break through and overcome it (branded entertainment and other tactics) o Persuasion industries are developing and refining techniques to reinforce an emotional attachment b/t Americans and the brand sthey buy o Brands that can move to that emotional level, that can create loyalty beyond reason, are going to make profit o Techniques that marketers are developing are startling and including the hiring of anthropologists, ethnographers, linguists, and brain researchers to research our unconscious desire and influence our decision making Linguistic devices used by true but deceptive advertising o Hedges (ex: Progresso “May Help Lower Cholesterol”) o Elliptical comparatives (ex: FiberPlus “Now Tastes Even Better!”) o Implied causation (ex: Jenny Craig “Make some body happy”) o Implied slur on competition (ex: Allstate “You’re in good hands”) o Pseudo-science (ex: “More Doctors Smoke Camels Than Any Other Cigarette”) o Subliminal Advertising Advertising Literacy o Awareness of exposure o Building knowledge structures o What is the ad really selling? o What are your needs? Where did they originate? Influence of Industrial Revolution on advertising, branding o US population doubled Labor force Consumer market o From rural to urban society: Less self sufficient individuals o Mass Production o Mass Communication Era Printing press o Manufacturers begin to focus on branding Brand identity Customers ask for it by name Move beyond price competition Distinguish Perhaps the single largest triumph of advertising o Quaker Oats The first cereal company to register a TM o A Consumer Society Developed Enormous assortment of goods Constant change in the goods themselves Rise in income, discretionary spending, and leisure time Advertising efforts: devoted to human desires that not directly tied to basic necessities Became the “lifestyle” images we have today Culture of consumption, the role of income, and how advertising jumped in (including the strategies advertising used, as described in slides on “The Consumer vs. The Product) o Advertising began to address consumers as individuals o Criteria for success varied over time No longer measured against strict behavioral codes No longer measured against fixed standards of achievement and moral worth o Income became most important status indicator in US An individual achievement Provides access to tokens of success that are prized at any given moment o Creating and maintaining the “self” became a lifetime task Self-improvement, personal development, selling oneself, self-assertion A response to uncertainties introduced by urbanization Erosion of older cultures created a void in personal life o Advertisers jumped in Linked products with imaginary states of well-being Advertising provided guideposts for social/personal identity o 1920s: new approach focusing on the consumer o Individuals needed help learning how to find satisfaction amid so many new products Cultural traditions, socialization used to do this The marketplace began to instruct people about how to match their needs with products o Ads focused not only the product but with individuals’ lives, including social roles o Ads provide cues about new styles of personal behavior o Ads link new goods with traditional images o Consumers find comfort with this o Transfers positive feelings to the product Influence of radio on advertising o 1920s o Radio Literacy Music, jingles Drama o Programs were branded Kraft Music Hall Colgate Comedy Hour Radio stars delivered the commercial message during the shows 1950s and advertising o Postwar marketplace surge o TV took over Emotion Imagery Demonstrating the product in action o Early days: single sponsorship model TV programs produced by advertising agencies Paid for by a single sponsor The Flintstones Winston Cigarettes Kraft Music Hall o Shift to: participation advertising Single sponsorship struggled Don’t sell whole shows to advertisers, but small blocks of time Enter the commercial break Colgate toothpaste o The Research Era From 1950 to present Cost of advertising understand what works target more precisely Parallel industry develops Marketing Research The Science of Selling Market Power and Market Information models, problems with each o Market Power Model Advertising used to make consumers less sensitive to price (through brand loyalty, etc) allowing them to increase their market power Believe that one brand is superior, brand loyalty, not sensitive to price b/c don’t believe there are acceptable “alternatives” Higher prices Increased profits Less competition Higher barriers to entry and more market power Fewer available products; higher price o Market Information Model By providing info advertising makes consumers MORE sensitive to price, stimulating competition among companies Advertising facilitates entry (lower barriers) by allowing new products to gain awareness and enter the marketplace Informed consumers; increased price sensitivity Reduced market power More competition; more innovation More product alternatives; lower price o Problems with Market Power Model Assumes advertising is only cause of brand loyalty & price insensitivity What about product quality as developing loyalty? Other elements of the marketing mix o Problems with Market Info Model Assumes consumers engage in thorough/extensive research of product alternatives (assumes rational consumer) Assumes advertising provides quality information o Market Power or Market Information? Depends on product Convenience vs. nonconvenience goods How advertising affects price o Some evidence: Retail advertising Can lead to more competition, lower prices National advertising Can lead to higher prices Price sensitivity decreases Brand loyalty Cost of doing business increases o Economies of scale: as a company doubles output, the cost of making that output less than doubles (cheaper to make the second batch than the first) Average amount of spending on media o Average person spends: $800/year directly to media companies Buying books, music, movie tickets, cable, etc. o $1600/year indirectly Buying advertised products The media industry players o Interrelated system of Players Consumers Give: time, money Receive: entertainment, information Aggregate power (high) Individual power (low) Advertisers Give: money Receive: media time/space to reach target Seek: lowest cost/relevant audience member Audience structure is extremely important Media companies Give: money, media content, audiences Receive: profit Primary customer? Advertisers! o $ comes from advertisers, not viewers o create content to deliver the right audience Media employees Bring: talent, skill Receive: income Type (creative, technical, administrative) o Advertising is the engine! Media revenue linked to audience Audience size Audience composition o Bottom line: TV=bait TV business=selling audiences to advertisers Nielsen ratings (general methods) o Nielsen rating based on size & composition o Rating: percentage of people watching out of whole TV population o Share: percentage of people watching out of the people watching TV at the time o Advertisers pay based on CPMs CPMs = cost per thousand people reached Example: Total cost=15K, estimated audience=2.4 million (15,000/2,400,000) * 1000=$6.25 o Sampling and Recruiting o Meters: “People Meter” o Diaries (self-record viewing) o “Sweeps” periods o Ratings data collection Viewing information—what's being viewed by whom o Process 10 million viewing minutes/day based on 25,000 metered households Relayed via phone lines to the Nielsen operations center In addition, 1.6 million diaries during sweeps Effect of advertising on media content (“Nightline” example) o Its not all about audience SIZE o In 2002, ABC made a bid to replace Nightline with David Letterman, even though Nightline had higher ratings. Why would they do this? (1) Letterman audience is younger; more valuable early adopters / trend setters Lifetime potential Hard to reach (2) The humorous content of Letterman More conducive to consuming Nightline is serious and serious is riskier for advertisers. o This happens fairly regularly Popular TV shows cancelled for having the “wrong” audience: Financial news shows have low ratings but continue affluent audience Potentially offensive content o General aversion to risk Repeat what has worked May avoid offensive content o Avoid negative portrayal of advertisers o News, magazines, entertainment o Ex: NYT and Tiffany’s Seth Godin Ted Talk (main points) o Until Wonder came along and figured out how to spread idea of sliced bread, no one wanted it o Success is about can you get your idea to spread or not o TV industrial complex: At the heart of spreading ideas is TV and mass media Buy adsget more distributionsell more productsmake a profit (circular cycle) o Consumers don’t care about you at all- they have way more choices than they used to and way more time o You have to find a group that desperately cares about what you want to say and say it to them and they’ll share it Central Hudson case and Central Hudson test o Central Hudson case Energy crisis President Carter address to the nation on energy PSA from US Dept of Energy GE ad 1979 Ban on advertising that “promoted the use of energy” Lawsuit: Central Hudson Gas & Electric Co. Supreme Court verdict: State has no right to censor truthful commercial speech. o Central Hudson Test Ads for legal products can only be restricted if: (1) The regulated speech is deceptive, or (2) There is substantial government interest in restricting it, and (3) The regulation in question directly advances the government's interest, and (4) The regulation is narrowly tailored to serve the government's interest. FTC definition of a misleading advertisement o An ad is deceptive if it contains a statement or omission that: is likely to mislead a reasonable consumer AND is “material” o Misleading statement: What counts? Express claim: makes specific claim (ex: Listerine: “Help prevent colds and relieve sore throats”) Implied claim: indirect; suggestive (ex: Propecia: “You need not face the fear of more hair loss”, misleading b/c Propecia slows but does not STOP hair loss) o Omission: leaving out important information (ex: Wonder Bread “Fortified with vitamins to help kids grow big and strong”) o What is a reasonable consumer? Typical audience member: substantial number of consumers might be deceived Depends on target audience o “Puffery” is usually okay General; Unmeasurable; statements of opinion ex: “World’s Best Spaghetti”, “Lips never looked so luscious” o Small print: qualifying disclaimers must be legible and understandable o Material Misrepresentation: one that is likely to affect purchasing decision Ex: ad promising results “in as fast as 10 minutes” when in reality more like 30 minutes o Undisclosed Simulations Rule: Okay, as long as the fake demo is not being used to make a material claim about the product o Celebrity Testimonials If use is stated/implied by the ad Endorser must use product regularly Claims must be supported by evidence Typical product performance or disclaimer: “results not typical”
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