TEST ONE NOTES
TEST ONE NOTES APR 221
Popular in Intro to Advertising
Popular in Advertising
This 9 page Study Guide was uploaded by Kayla Peel on Tuesday February 16, 2016. The Study Guide belongs to APR 221 at University of Alabama - Tuscaloosa taught by Dr. Phelps in Fall. Since its upload, it has received 47 views. For similar materials see Intro to Advertising in Advertising at University of Alabama - Tuscaloosa.
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Date Created: 02/16/16
TEST ONE NOTES 19 JANUARY 2016 Advertising: A paid form of persuasive communication that does mass and interactive media to reach broad audiences in order to connect on identified sponsors with buyers (a target audience), provide information about products (goods, services, ideas) and interpret the product features in terms of the customers needs and wants. o Content the timing of the message o How well you know your audience is what response you will have o Advertising changes everyday o Is nonpersonal communication Idea: a creative person’s concept used to relate or connect the strategy to the audience. o How are you going to communicate their idea? o Apple 1984best ad in the last 100 years – it communicates a strong message o IBM was dominating of the time (1980s) o Connect strategy to audience 21 JANUARY 2016 Method of Classifying Advertising 1. Type of Audience (Consumer or Business) Types of businesstobusiness advertisers Industrial: Advertising directed at companies that might use your product or service in the production of their own o Tire company selling to a car company o Overlap with industrial and agriculture o Seen in magazines more than TV ads o Advertise where the target audience is o For BtoB know the professional audience Trade: the advertising of goods/services to wholesalers and retailers o This connects BtoB o Ads that go directly to wholesalers/retailers o Company that makes clothes sell to the GAP Professional: advertising directed at individuals who operate under a code of ethics or a set of professional standards. o Doctors (medication or new procedures) o Politicians (in a sense) o Advertising to not who’s making the ads o Professional group Agriculture: advertising directed to farmers and to others in the agricultural business o Super broad category o Farmers are business men and women o Bigger than farms/food/farmers o Second biggest advertising in some states o Things overlap between BtoB and BtoC 2. Type of Media Used Radio TV Print Online media 3. Geographic Area Regional Natural Global Scale smallest to largest Based on size of business SPOT advertising Coke buying additional spots in local spots coke Miami (Specifically cities) Companies focusing in local markets 4. By Purpose: Product vs Nonproduct Primary vs Selective Demand Direct Response vs Awareness How Does Advertising Work? o Simplistic: Marketer Controlled AdvertisingMarketer Uncontrolled; Market Behavior; Pressure/Weight o Realistic: AdvertisingOMarket Behavior; Mediated Model Price Competitive Conditions Economic Conditions Product Regulatory Conditions Psychological Predispositions Distribution Social Conditions Short History o Confectioner’s Ice Cream Ad June 1, 1859 o Volney Palmer, 1841 Media Representation o John Powers, George P. Rowell, 1880’s Creating Ads o Francis Ayer (N.W. Ayer & Sons), 1890 The birth of the “Modern” Ad Agency National Advertising and Branding o The struggle is real! o The fight that launched national advertising: The combatants were Producers vs Retailers 26 JANUARY 2016 Early 1900s o Era of Reform Development of Professional Codes of Conduct Academic Programs in Advertising Adoption of Scientific Approaches Going to need a workforce that can understand it World in Turmoil o WW1 Ads for war effort Was hard to get the attention and acceptance because the controversy was German or English o Depression Hurts advertising for every dollar spent A lot of reform in businesses including in advertising o WW2 Used to gather people to support the war effort Does better than it did in WW1 Post War o Television o Evolution of Media Choices Continued slow at first o Slow Evolution of Advertising Industry Meaning who works in the advertising industry EX: Mad Men TV show What’s Happening Today? o Audience Identification Ability to do this has increase majorly We can ID audiences of one and get messages to them Individual EX: depending on what you search or what you click on, we can take that information and send you specific messages meant just for you. When you are the people using that information you have the ethical responsibility to treat that information as if it is your own. o Message Creation: The information that we can gather now from audiences o Message Dissemination: How the message is going to be shared to that audience of one (email, post, etc) Advertising is an aspect of Marketing o But where does advertising fi in Marketing? Old Definition of 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 organizational objectives. o We want to facilitate these exchanges and these exchanges have to satisfy the individual and organizational objectives. Individual objectives the direct individual’s objectives to accomplish with the exchange. Not going to go back if they aren’t satisfied Organizational objectives What/Where the individual is You want your company to last. We need to understand their wants and needs Marketing Concept o What is it? o What do we get from it? Marketing Concept o The marketing concept holds that 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. We better know what it is in what they want and need is major Don’t know = we can’t create the products Organizational Resources: Environmental Factors: Production Competitive Marketing Regulatory Financial Economic Technological Social and Cultural Human Situation Analysis Marketing Opportunities Marketing Objectives Marketing Strategy Target Market Marketing Mix Marketing Mix o Price Have to decide the product price (important) Price better cover your cost o Product o Place (Distribution) o Promotion Where advertising really fits Promotion Mix o Advertising o Public Relations 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. The primary purpose of public relations is to manage a company’s reputation and help build public consent for its enterprises. o Sales Promotion: A direct inducement offering extra incentives all along the marketing route from manufacturers through distribution channels to customers to accelerate the movement of the product from the producer to the consumer. Direct inducement giving something to do something EX: coupons, sales, BOGO (by one get one), chance to win o Personal Selling: A sales method based on persontoperson contact, such as by a salesperson at a retail establishment or by a telephone solicitor. Advantages: creating that relationship, it is personal, immediate reaction 28 JANUARY 2016 Sales promotion and why it is escalating: o Accountability o Escalation of media costs o Consumer Behavior (more selective & less loyal) o Pricing (expectations for price reductions) You train these people to be this way, they expect a reduction in price. Never ending sales promotion, they won’t buy unless there is a give from the provider. o Battle for Market Share Spike the sales o Parity Products We are the same as all these other brands, not much of a difference = don’t expect anyone to be brand dedicated. If you have a parity product, you turn different. o Power of the Mega Retailers (e.g. Walmart) More money is put into the trade rather than the consumers. Advertising vs PR o Advantages of Marketing PR and Publicity Cost Collaborating Where does Advertising Fit? o Marketing Mix o Promotion Mix o It’s a broad world of where it could fit in. Push vs Pull promotional strategies o Look at where/which audiences the promotional efforts are aimed. o Push is taking to the product to the customer and pull is bringing the customer to you Impact of Culture on Advertising o Culture influences consumption rituals and influences interpretation of the message. o Culture: A homogeneous group’s shared set of beliefs, attitudes, and ways of doing things, typically handed down from generation to generation. o Not only on the way people behave but how they see advertising and products Comparative Advertising: advertising that claims superiority to competitors in one or more aspects. o Thought to give more information to the consumer Influence of Advertising on Culture o Many say that advertising has a negative influence. 2 FEBRUARY 2016 Areas of Advertising Criticism 1. Product Advertised Tobacco products, alcoholic beverages, condoms and other sexually related products 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, and exploits susceptible segments of society such as the poor, the elderly, the mentally ill, and the young Reading Materials o Books by Wilson Bryan Key The Age of Manipulation: The Con in Confidence, The Sin in Sincere Subliminal Seduction The Calm Plate Orgy o Article in the Journal of Consumer Affairs (2006), Vol.40, No.2 “Subliminal Advertising and the Perpetual Popularity of Playing to People’s Paranoia,” by Sheri J. Broyles Ethical Systems: Standards or guidelines suggesting what behavior is appropriate or inappropriate. o External System: based on institutional codes, guidelines, regulations, and procedures. Whether it is a profession or personal corporation, they are going to have these institutional regulations of what is right or wrong, appropriate. o Internal System: depends on the individual to decide what is right or wrong. This is you, you have to have a way to decide what is right and what is wrong. 4 FEBRUARY 2016 Groups Exercising Control over Advertising Government (Fed, State and 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 Industry Self Regulation Council of Better Business Bureaus National Advertising Division (NAD) go here 1 t nd National Advertising Review Board (NARB) go here 2 Children’s Advertising Review Unit (CARU) o They do it all their own The Media Media Clearance: Decision by a broadcaster or publisher to accept the advertisement. Consumers Action for Children’s Television Started by a housewife in her basement Boycotts and the power of money The Courts Summary of roles played by the courts: Advertisers can appeal FTC and other government agency ruling in court. Advertisers can take other advertisers to court directly o Land ham wade mark law State Attorney Generals use the courts to prosecute cases when they find deceptive advertising practices 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 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: A negotiated settlement or formal agreement between the FTC and advertiser specifying the actions to be taken by the advertiser. Litigated Cease & Desist Order: 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: Including additional information in the ad so that it is no longer deceptive Corrective Advertising: 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. 9 FEBRUARY 2016 Economic Environment Effects of economy on advertising Influenced by: what people are buying kinds of messages you create huge influence Effects of advertising on the economic environment facing individuals Two Schools of thought 1. Advertising = Market Power Assumes advertising is all about persuasion 1. Advertising leads to industry concentration 2. Creates berries to entry and reduces competition 3. Increases prices 2. Advertising = Market Competition Assumes advertising is persuasion and information 1. Advertising allows entry 2. Increases competition 3. Decreases prices
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