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Advertising 3100 Exam 1 Study Guide

by: Bridget Notetaker

Advertising 3100 Exam 1 Study Guide ADPR 3100-0

Marketplace > University of Georgia > Advertising > ADPR 3100-0 > Advertising 3100 Exam 1 Study Guide
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This is a study guide covering all the material you will need to know for the upcoming test.
Principles of Advertising
Nathaniel J. Evans
Study Guide
Advertising, 3100, exam, test, 1, Evans, uga, University, Of, Georgia
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This 11 page Study Guide was uploaded by Bridget Notetaker on Sunday September 4, 2016. The Study Guide belongs to ADPR 3100-0 at University of Georgia taught by Nathaniel J. Evans in Fall 2016. Since its upload, it has received 214 views. For similar materials see Principles of Advertising in Advertising at University of Georgia.


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Date Created: 09/04/16
Advertising 3100 Exam 1 Study Guide  Lecture 1:  What is advertising? o Advertising happens before marketing  Advertising is not about selling o Association is a new way to think about advertising  What matters is the experience and being entertained o Old view: three criteria must be met for a communication to be classified as advertising 1. Communication must be paid for 2. Communication must be delivered through mass media  The internet is not a media, it is a means of accessing media such as Facebook and Instagram 3. Communication must be attempting to persuade o New view: might look like “brands communicating with people”  Ex: ALS Ice Bucket Challenge – when people were posting challenges, ALS wasn’t paying people to do it  Advertisements/Ads: specific messages designed to persuade an audience  Advertising campaign: an integrated series of ads and promotions that communicate a central theme or idea o Can appear in one media (TV) o multiple media (TV, print, radio)  Integrated Brand promotion (IBP): coordinating promotional tools with advertising to build and maintain brand awareness, identity and preference  Main Advertising Eras: 1. Premarketing Era: pre-printing press 2. Mass Communication Era: 1700s to early 1900s o Newspapers, magazines, and radio 3. Research Era: 1920s to current o What motivates, how segment on demographics, psychographics, now BIG DATA 4. Interactive Data: current with focus on consumer control, use of interactive devices and social media o REAL TIME  Fundamental Influences on the Evolution of Advertising: 1. Rise of Capitalism: o Free market  need to compete  need to stimulate demand and persuade the audience (tool? Advertising!) 2. Industrial Revolution: o Mass production of goods  need to stimulate demand and compete for the customer 3. Manufacturers pursuit of power: o Branding emerges  Ex: Levi’s (1873), Maxwell House Coffee (1873), Budweiser (1876), Coca-Cola (1876), and Ivory Soap (1879)  The store owner set the prices and offered recommendations about what to buy 4. Rise of mass media: o Advertising subsidized some of the media’s operating cost  True with newspapers in 1800s until about 10 years ago  True with radio starting in the 20s and 30s  True with TV in the 50s and 60s o All that money from advertisers drove the cost of access down for the average consumer  Lecture 2:  Rise of Agencies: o What problem did business (advertisers) and the media (newspapers and publishers) face in the 19 century conditions? o How did agencies solve problems for businesses and media? o What were the emerging and changing roles of ad agents and agencies?  Advertising problems for businesses (advertisers): o Which publications to advertise in?  20,000 nationally  No central list  Today we have a number of sources o Ex: SRDS (Standard Rate Delivery Service)  Advertising problems for media (newspapers, etc.…) o How to keep track of advertising revenue  Up to 300-400 separate advertisers (businesses) per issue o How to increase profits  Increase price?  Increase quantity?  Ad agencies: o For businesses (advertisers)  Agencies manages advertising placement o For media companies (newspapers, etc.…)  Agencies took over billing  Agencies created a new revenue source:  Sell audiences to  Changing role of agents: o Media  space wholesaler (George Rowell)  Businesses o Conflict of interest o Rowell published a central directory for businesses to know how much was to be charged for ad space  Two changes: N.W. Ayers & Co. o Open contracts  Publicize cost for ad space  No secret deals o Agents worked only for businesses  Bought space only  Added creative services: o Beginning in 1800, prepared ad copy  More specialized roles: th o By the early 20 century:  Editorial bureau wrote ads  Art bureau designed ads  Rise of the Agency: o New relationships with other industries o New ways to organize increasingly complex work o Reflects increasing centrality of advertising in a capitalist economy  Lecture 3:  Advertising in Capitalist Markets: o 9 assumptions about the function and role of advertising (we are only covering 5): 1. Advertising is a powerful force in shaping consumer preferences  Some advertising is powerful but if consumers were to respond immediately to every ad they saw our lives would be utter chaos; so most advertising gets lost in the competitive clutter  Media environment has changed drastically since the 60s and even 10-15 years ago o Advertisers have to work harder to grab and keep our attention  What is really influential? o Traditional advertising or something else? o It is now about interaction, involvement, and engagement 5. Even if advertising seems ineffective, stopping it could be dangerous  Advertisers and agencies may argue suspension would mean consumers who were only exposed to competitive campaigns would ultimately fall victim to the competition  So in order to survive one must advertise? o Maybe it comes down to how competitive the category is?  Pepsi vs. Coke or Apple vs. PC 7. Advertising is highly profitable  The assumption might come from the link between advertising intensity (amount) and market share ($) but due to a flood of competitive activity, much advertising is, in reality, cancelled out o When advertisers increase weight in an effort to pull ahead of the competition, the advertisers often end up adding to their costs more than they do their profits 8. Logic or argument is the most effective advertising appeal  Consumers like to think of themselves as rational decision makers nevertheless, emotional ads are found to be: o More interesting o More easily remembered o More prone to lead to action o Less likely to arouse consumers defenses  The power of emotion in advertising is more effective for a couple of reasons o Not many true differences between products in some category; helpful to create perceived differences o Requires less “mental energy” to process  Memories are more closely tied with feelings/emotion instead of numbers/facts 9. Advertising is amoral in its practice; corrupts people’s values  Amoral: without morals/responsibility  Immoral: actively doing what is wrong  Does this corrupt value or is it a reflection of existing values? o Given that advertising has limited power it would seem that it does not corrupt  Lecture 4:  Living in a Consumer Culture: o So, what is advertising’s role in creating and encouraging a “consumer culture” in our society  In a consumer culture, our attractiveness or ability to be loved has nothing to do with who we are internally, but rather with what we buy and how those purchases are perceived by those around us  This is known as commodification: the process of stripping an object of all other values except its value for sale to someone else o For example, Christmas has become commodified because many people no longer see the holidays as a religious celebration, but rather as a festival of gift giving and thus based on the gifts that we give and receive  Consumer Society: our primary means of support are our consuming citizens o Not selling and marketing o Not buying and using goods and services  3 dimensions of emergence for the rise of a consumer society: 1. Agriculture vs. manufacturing  Manufacturing started outpacing agriculture  Industrial revolution drove the growth of manufacturing  Replaced farming as the main economic model  What was the by-product? 2. Rural population vs. urban population 3. Increase in personal earnings and spending  These factors caused an upsurge in the standard of living o Dramatic increases in:  Manufacturing compared to agriculture (wage workers with paychecks)  Nonfarm residents compared to farm residents (city dwellers)  Personal income and spending  Greater needs and means to buy  Ways of buying: o New: Department stores  Huge selection and volume  National, manufactured goods  Opulent interior  Shopping as “an experience” o Something more  More to choose from (preferences)  driven by advertising  More to do when shopping (experience)  driven by stores  National consumer base (not restrained by locality)  driven by infrastructure (railroads)  Lecture 5:  Producer Led Paradigm/Advertising: o We currently live in a consumer led paradigm  However, it was not always this way o In the 60s there was a major shift from producer led to consumer led o Common up through the 1950s  However, it is still used today o Market management (supply side)  4 P’s: Product, Price, Promotion, Place  Consumer consideration wasn’t there  Consumer was viewed as predictable  Magic Bullet Theory: states that an audience is passive and can’t resist the media messages  Product functionality over style: because all people were assumed to respond the same way to a message  “Paradigms” in consumer society: o Manufacturing: designing and making products o Marketing: distribution and promotion of products  Producer led paradigm was about “Company Control”  Main Features of Producer Led Paradigm: o Predictable, controllable customers o Mass produced, standardized products o Rigid, formulaic advertising (which was based on the notion that consumers respond uniformly)  Functionality and Standardization: o How well it works; not how nice it looks  Search for “perfect design”  Or standardize to minimize costs to maximize sales o Either approach  Functionality, not style  Reason-Why Advertising: o A kind of producer-led advertising o Claude Hopkins  Advertising as a science  Logical, rational appeals  Products solve problems  Unique Selling Proposition: o A second kind of producer-led advertising o Rosser Reeves’ formula:  Repetition  Continuity  Single, simple message  Mad Med “Lucky Strike” pre-emptive  Pre-emptive: when they came up with the idea to say Lucky Strike cigarettes were “toasted” even though all cigarettes were toasted  David Ogilvy: o Initially a pollster with Gallup o Founded and ran his own agency called Ogilvy & Mather o “Tell the truth…but make the truth fascinating” o “Advertising is about emotion and big ideas” o Hathaway Drip-Dry: (50s-70s)  Precursor to the “most interesting man in the world”  Imagery and character story drew in the reader  Unique because the strategy started thinking about the consumer  Reasons why:  “Quality construction”  Drip-dry “saved time”  Cut of the shirt “provided room for the man on the go”  Lecture 6:  Creative Revolution: o Began in the 1960s o 2 major happenings for the Creative Revolution 1. Growing importance of style 2. Cynicism about consumer society o Dramatic changes in advertising and agency organization o Steady development; still going on today o Bill Bernbach, David Ogilvy, Mary Wells o Advertising an art, not a science o Changed relationship between sellers and buyers o Clears the way for new paradigm of manufacture/design/advertising  That is focused on the CONSUMER  Making Products vs. Style: o Producer led paradigm  Stress functionality over style o But new ways of thinking start to change it  Economic value of style  So, style has been turned into a commodity  Economic Value of Style: o Popular styling could boost sales o Example of streamlining  Making Products: o Planned obsolescence: the purposeful shorting of the product’s usefulness  The idea is to get you to buy more  2 major ways this works: 1. Products are literally designed to “break down”  Bad parts, poor quality, or poor assembly/construction 2. Products “work” fine so people aren’t going to buy anymore  Create the impression that the new version is somehow better, which makes the old one obsolete  Changing styles to boost sales  Alfred P. Sloan (CEO of General Motors in 1941) said: “Today the appearance of a motorcar is a most important factor in the selling end of the business— perhaps the most important factor—because everyone knows the car will run”  Purposefully designed or build with a limited use-life  Subliminal Advertising Scare: o James Vicary came up with the idea that you can make someone buy your product even if they don’t want to  Flashed the words “Drink Coca-Cola, Eat Popcorn” on a movie screen for .03 seconds and sales went up 57.5% in popcorn and 18.1% in Coca-Cola  Emerging Problem: o Producer led paradigm increasingly ineffective o How to encourage an increasingly cynical public to believe advertising?  Bernbach and Creative Teams: o Realized that there had to be brainstorming on projects o No assembly line o Small teams work on an entire project o Insist on agency autonomy  Traditional Car Ads: o Long and big o Use color, show family o Use “ad talk”  Short, not very wordy o Bernbach style:  Short and small  Use black and white images  Rarely, if ever, show people  Wry humor  “Straight talk”  Impact on Industry: 1. Always show the product 2. Don’t use negative headlines 3. Always mention product name in headline 4. Always show people enjoying your product 5. Always feature news in your headline, even if it’s made up 6. Always make the logo prominent 7. Avoid unpleasant connotations about the product 8. Tell the reader where they can buy the product 9. Always localize your ads  Paradigms Compared: o Producer Led:  Market management  Formulaic advertising (reason-why, USP)  Accept consumer society  Goal of fitting in; social acceptance o Consumer Led:  Consumer satisfaction  Hip consumerism  Reject consumer society  Goal of standing out; personal freedom  Advertising in the consumer led paradigm  Buying things makes you free (not trapped)  From function to style  From company decisions to marketing research  From hard-sell formulas to hip consumerism  Changing relationships between companies and markets  Changing advertising  Design Compared: o Producer Led:  Company control  Stress on functionality o Consumer Led:  Market control  Stress on style  Sony Walkman: o Introduced in the 70s o Preference research not sufficient  Known options only o Turn to social trends and lifestyle research  Find out new options  Make into products  Demand for Style/Meaning: o Little practical market need o Instead, express a lifestyle o Sporty, outdoor, healthy, progress o Similar to other product uses  Hip Consumerism: o Advertising in the consumer-led paradigm o Buying things makes you free (not trapped) o Helps you stand out (not conform)


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