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Exam 1 Study Materials (Advertising and Integrated Brand Promotion)

by: Rachna Unadkat

Exam 1 Study Materials (Advertising and Integrated Brand Promotion) Adv 318j

Marketplace > University of Texas at Austin > Advertising > Adv 318j > Exam 1 Study Materials Advertising and Integrated Brand Promotion
Rachna Unadkat

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About this Document

Covers Chapter 1, Chapter 2, Chapter 3, Chapter 4
Intro to advertising
Anthony dudo
Study Guide
Advertising, IBP, ut, UT Austin, University of Texas at Austin, Communications, Dudo, Exam 1, midterm
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This 15 page Study Guide was uploaded by Rachna Unadkat on Tuesday September 27, 2016. The Study Guide belongs to Adv 318j at University of Texas at Austin taught by Anthony dudo in Fall 2016. Since its upload, it has received 3 views. For similar materials see Intro to advertising in Advertising at University of Texas at Austin.


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Date Created: 09/27/16
Chapter 3: History of Advertising 1 | Advertising, a Birth Story To be successful in ADV, must understand that advertising mirrors contemporary society ADV is the result of 4 major factors 1. The emergence of capitalist economic systems Competition: businesses must compete for their survival; they must earn capital Must Increase Demand  to earn capital, their products must be desired in the marketplace  Businesses must stimulate consumer demand for products How?: businesses need tools to stimulate this demand (adv plays a role here) 2. The Industrial Revolution Mass-produced goods  industrialization floods the marketplace with mass-produced goods; dependence on the marketplace  more jobs = ability to consume Transportation infrastructure expands Increased urbanization Advertising  the stage is set for advertising  goods can be produced, delivered, and consumed more efficiently 3. The Emergence of Modern Branding  Manufacturers must distinguish their products via branding  Brands demand higher prices  Brands give manufacturers over retailers  Ex. Coke: distinguished well from competitors, creates demand 4. Rise of Modern Mass Media Mass-circulation: infrastructure available so that messages can be disseminated Branding: allows brands to scale-up and become “national brands” Advertising flourishes  Now done on a national scale  Advertising supports mass media 2 | Evolution of Advertising Eras PT Barnum Era (1875 to 1918)  Consumer culture is born: branding and advertising become routine (fixture of the culture)  “There’s a sucker born every minute”: Ads can prey on them  assumption: unsophisticated consumer, cognitive misers Characteristics  hyperbole, way over the top  lots of copy  lack of real-world context  little color  assumption of uneducated consumer 1920s: modernity creates a cycle (b/w “The New” and risks) that sustains advertising “The New”  society shifts toward prosperity, openness, consumption, and pleasure  advertising feeds of this shift; instructs people how to be modern Risks  advertising highlights the risks of modern life and remedies in the form of products  a cycle of consumption and the need for more ADV Characteristics  women became the focus target group for Ads  80% more technology  ads stress science & technology  Ads start constructing social material relationships  Products get infused into social lives Creative Revolution: 1960 to 1972, the cultural revolution inspires an advertising revolution  Design gets cleaner, more minimalistic  Ads become more self aware, ironic  Ads become more transparent: treating audience as more educated, sophisticated  More daring: far more risks taken in terms of artwork and message  Assumption about audience is more sophisticated than before 3 | E-Revolution E-Revolution: 1993-2000  Becomes clear that the internet is fundamentally changing advertising o Large advertisers start questioning traditional media  Advertisers want results o With new technology comes increased expectations about measuring ad success o Despite real difficulties with measurement, advertisers want ROI and hold agencies accountable  Agencies spread to areas outside of NYC Consumer Empowerment: 2000-Present Old Media  Traditional media used to send messages to consumers about brands  Adv was pushed at potential consumers New Media  Media proliferates  Pull instead of push Characteristics  Consumers can talk to each other  Consumers can talk back to the brand  Consumers can generate content (crowd-sourcing) ADV is still a primary tool in brand promotion  Other methods are growing fast as well Fear and Anxiety: one trend that repeats itself over and over again is that advertisers leverage public fear and anxiety to sell products Chapter 4 Social Aspects of Advertising 1) Advertising educates consumers Good  Gives us information we need to make smart purchasing decisions– yields economic power  Gives us important info about social issues  Speeds up the learning curve for consumers–we learn about products quicker Bad  Gives us persuasion that pretends to be information–its deceptive, biased  Ultimately, the information is all self-serving  Advertising is intrusive and oppressive–erodes learning 2) Advertising improves the standard of living Good  Ads stimulate demand, increase production, and lead to cheaper prices  Ads help brands succeed; results in a greater variety of products  Ads fuel competition, which motivates brands to innovate and reduce prices  Ads aid the diffusion of innovations Bad  Ads merely shuffle existing demand  Ad spending is a waste of resources  Ads confuse and frustrate consumers; they don’t enlighten them  Ads widen the gap between the “haves” and the “have nots” The “Haves”: advertising helps consumers w/ higher socioeconomic status by exposing them to new products and ideas they can take advantage of self- actu “Have some” aliz anio (ed ** ucat ion, 3) Advertising affects happiness & well being estbies(car, tragoods)uxury, etc) Advertising CREATES needs; it seduces us into love and belonging (jewelry, luxury goods, entertainment) safety (insurance, cleaning products, etc) physiological (food, drink, medicine, tissues etc) consuming things we don’t really need or want (BAD) Good  Advertising merely reflects & reinforces culture  Materialism is a part of the American identity; advertising didn’t create this Bad  Advertising warps our sense of happiness  It stresses conformity, status-seeking and superficially  It stresses self-directed behavior; erodes public good 4) Reinforces stereotypes Bad  In their quest to connect with target audiences, advertisers continually reinforce negative stereotypes (ex. Skyy) Good  Signs of increasing sophistication (ex. Dove) 5) Class or Crass? Class crass Makes us aspire for better lives Speaks to the lowest common denominator Pushes the highest common Capitalizes on rude, crude, and lewd denominator behavior Brings about a democratization of goods; it liberates us Context determines what ads are seen as acceptable or offensive; it changes based on time and cultural changes Ethical aspects of advertising Deception Puffery False or misleading statements Generic superlatives, hyperbole One can test and legitimately refute Assumed that the consumers the claim recognize puffery Deception can be tricky to spot Advertising to Children Common Concerns  Promotes superficiality  Preys on an easily manipulated audience  Influences children’s demands  Worsens child-parent and spousal conflict Line between commercial + content  Are programs aimed at children really just program-length commercials?  So far, FCC permits these programs  Restrictions on amount of ad exposure: Advertising Controversial Products Product categories regarded as controversial  Tobacco: TV and radio advertising banned since 1971  Alcohol: brands target youth, but often self-regulate to preserve their brand image  Gambling: online gambling in US banned since 2006  Prescription drugs: FDA loosened regulations regarding advertising prescription drugs It’s a critic’s view Beer Ad is created: an alcohol brand creates ads that targets adolescents vs “may target adolescents” Beer Ad is transmitted: adolescents see the ad + are greatly influenced vs effect is quite minimal and varied Behavior change: adolescents are driven to initiate underage drinking behaviors vs new bhaviors are unlikely to be created, more likely to influence a current drinker’s brand choice While not condone unethical ads, we must be wary of presuming that ads have strong, direct effects on behaviors (either functional and maladaptive) Legal issues aside, the social and ethical dimensions of advertising are DEBATABLE. What offends one person my entertain and connect for another. Social and Ethical Implications Even with regulation, advertising professionals are faced with very tough ethical decisions  Will they use copy that has double meaning or reinforces negative stereotypes  Will they stretch the truth when making claims  Will they malign a competitor’s product even know it’s very similar to their own Texting & Driving  50% of drivers b/w 17-24  slows reaction times by 35%  6x more dangerous than driving while drunk  25% of accidents  Chapter One 1 | Advertising & IBP defined Shift in ADV and IBP: from push to pull Old Media  Traditional media used to send messages to consumers about brands  ADV was “pushed” at potential consumers New Media  New media proliferates  We now “pull” media messages  Technology + consumer control reshaping communications messages SITUATION: how are companies going to reach you w/ their adv + brand messages? Companies must adapt: traditional media supplemented by modern methods  Branded entertainment  Internet  Influencer marketing  Mobile marketing “STILL ABOUT THE BRAND” key challenge: to effectively communicate the brand Advertising  Small business: it gets people through the door  CEO: it builds brand awareness and loyalty  Artist: it’s creative expression  Website manager: drives people to their site  Sociologist: it’s a cultural artifact KEY perspectives  Advertising is ONE of many IBP tools; used to promote brands  Businesses of all sizes need + use these tools  Influences in world commerce + daily lives Criteria for ADV 1. Communication is PAID for 2. Communication is delivered via MEDIA 3. Communication aims to PERSUADE What advertising is NOT  Public relations / publicity  Public service announcement  Personal selling, sales promotions, etc. Advertising can be a persuasive message about an IDEA; it’s not only just about products **ad council** Distinctions within Advertising Advertisements: distinct messages designed to persuade Advertising Campaign: integrated between different “advertisements”  Consistency in terms of sound, look, feel Advertising must be effective  Clients demand that ads produce demonstrable results  “coolness” alone is not a result  Want ROI (return on investment) An Effective Ad: must satisfy the consumer + advertiser objectives STRATEGY + CREATIVITY + EXECUTION = EFFECTIVENESS (awareness, knowledge, persuasion, behavior) too creative if: call to action is not clear, brand is forgettable Integrated Brand Promotion: the process of using a wide range of promotional tools working together to create widespread brand exposure IBP is a process: advertising, sales promotion, Point of purchase, billboards, PR, social networks, event sponsorship, product placement 2 | Basic model of Communication Advertising Process 1. Message production: advertiser + social context determines the advertising messages 2. Message negotiation: individuals see the ad + interpret it through their own mental filters 3. Message reception: individuals receive the message, and decide what it means (if anything) Advertiser does not have full control over how individuals interpret advertisements Ads do not have a single meaning Political Campaign Ads: interpretations of these ads vary across individuals based on their political ideologies Harsh truth: eliciting a desired meaning is incredibly difficult 3 | Audience classification Audience: group of individuals who receive + interpret messages sent from companies and orgs Target Audience: a specific group of individuals singled out by a company organization to receive brand messages Audience Categories 1. Household consumers 2. Business members 3. Professionals 4. Government employees 5. Trade members ** Audience Geography: can be broken down geographically Global | used worldwide International | ads are tailored for different countries/ cultures National | Ads Regional | Local | 4 | Advertising as a business process ** a basic tool essential to attracting / retaining customers 1. The role of advertising gin marketing + marketing 2. E 3. E Marketing: the process of a business or organization uses to satisfy consumer needs and wants through goods and services (broader than IBP)  Mix or blend of responsibilities inherent in marketing “4 P’s” Product (1) Place (2) distribution Price (3) Promotion (4) advertising is only one type of tool Advertising in branding: influences brand development and management in 5 ways 1. Information: adv informs and persuades target audiences about the values of a brand 2. Introduction: new brands or extended brands are introduced via adv 3. Loyalty: repeated exposure via adv to brands helps create loyalty 4. Image: adv helps enrich the images and meanings associated with a brand – deeper connections with consumers 5. Trade loyalty: adv helps establish brand loyalty within the trade Toilet Paper Common thread: try to differentiate their brand by highlighting a specific value of their product Chapter 2 1 | Trends Affecting the Industry 1,000 to 5,000 # of ads the average consumer encounters each day About 50% of 4,000 Americans say advertising is “out of control”  We’re tired of this advertising barrage; we have become more psychologically resistant  New media technology gives us more power to minimize this barrage “Marketers want to move from interruptive to engagement” Trend 1 | Consumer Control: Consumers now have more control of the info they receive Web 2.0: $3 billion in marketing expenditures in 2014 Blogs: Word of mouth is highly effective Time-shifting: reducing ad viewership by 30% (DVR) Trend 2 | Media Ownership: Media owned by fewer companies Fewer people controlling advertising in general Trend 3 | More Media Options: means more fragmentation and more IBP tactics Less media  1995: 3 TV ads to reach 80% of women viewers  spend majority of ADV budget on traditional media More Media  2003: 97 TV ads to reach 80% of women viewers  spending increasing portion of ADV budget on different IBP methods Trend 4 | Crowdsourcing: lets consumers contribute to the brand  consumers are encouraged to create ads/products  Doritos super bowl ad Trend 5 | Mobile Marketing: can reach consumers everywhere e Tactics  Location based advertising  Sponsoring apps  Texts/push notifications Major growth  More than $1.2 B spent annually on this growth 2 | Scope & Structure of the Industry HUGE SCOPE: Giant shift storm of money being spent in advertising  Economic ramifications Structure of the ADV & IBP Industry Advertisers  Manufacture & service firms: make products & services  Retailers & wholesalers: buy products then resell them  Government: >$2B annually  Social orgs: support causes and ideas Agencies  AD agencies  Promotion agencies External Facilitators  AD research firms  Production firms  Consultants  Software firms Media  Broadcast  Print  Internet portals  Interactive  Support  Conglomerate 3 | Advertisers Advertisers (aka clients): anyone using ADV/IBP/messaging to communicate about their brand Must be prepared to work with agencies 1. Value: should understand their brand’s key values 2. Competition: should understand their brand’s market position 3. Objectives: should understand their brand’s short term and long term objectives 4. Audience: should understand their brand’s target audience 5. Logistics: should understand how their get their product to the audience 6. Marketing: should understand how ADV & IBP fit into the bigger picture 4 | Agencies Agency: An organization of professionals who provide creative and business services to clients in preparing, planning, and placing advertisements  come in all shapes and sizes  offer different levels of expertise  clients: must evaluate “goodness-of-fit” with agencies 1. Full service: can meet all the promotional needs of a client 2. Creative boutiques: creative concept development and services 3. Digital/ interactive: web based marketing 4. In house 5. Marketing Promotion agency: providing creative and business services to clients in preparing, planning, and placing IBP tactics 1. Direct marketing: maintain and manage databases of mailing lists 2. Sales promotion 3. Event planning 4. Design 5. PR IBP professions / specialties  Account planner  Media buyer  Creative director  Copywriter  Event planner  Graphic designer  PR specialist  Social media expert  Web developer 5 | External Facilitators 1. Research: provide, collect, and analyze relevant data 2. Consultants: specialize in different aspects of IBP 3. Production: broadcast, camera, lighting 4. Software: provide specialized 5. software to gather and analyze data


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