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Exam 1

by: Hannah Parcell
Hannah Parcell
GPA 2.0
Intro to Advertising
Dr. Phelps

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Intro to Advertising
Dr. Phelps
Study Guide
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This 0 page Study Guide was uploaded by Hannah Parcell on Tuesday November 17, 2015. The Study Guide belongs to APR 221 at University of Alabama - Tuscaloosa taught by Dr. Phelps in Fall. Since its upload, it has received 110 views. For similar materials see Intro to Advertising in Advertising at University of Alabama - Tuscaloosa.

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Date Created: 11/17/15
APR 221 Test 1 REVIEW economic environment ANSWER didn t cover this answer 13 multiple choice and truefalse questions each worth 2 points one fill in the blank and four short answer questions TOTAL POSSIBLE POINTS FOR EXAM 1 IS 50 POINTS regulatory environment lots of questions on that most questions PRACTICE QUESTION In advertising regulation an exaggerated ad claim that is not likely to be taken seriously by the consumer A puffery The FTC can require a company to do corrective advertising What is corrective advertising Push and Pull promotional strategies your decisions on allocating promotional resources where are you going to focus your efforts focus on final consumers or focus on trade Push gt focus on wholesalers and retailers Pull gt concentrate on consumers with promotional messages Not big on asking about names or years Big on understanding broad and overall concepts Industrial Advertising advertising to another business because they will use a product or service that you have in production of their own product or service ex if i have steel and you make cars Professional Advertising audience are professionals ex doctors lawyers advertisers De nition of Advertising paid form of persuasive communication mostly nonpersonal not oneonone no audience feedback uses mass media or interactive to convey the message targets a broad audience w mass media and a more selective audience w interactive media goals connect an identified sponsor with buyers to provide info about products to interpret product features publicity is not paid but advertising is you don t control the story published about you since the client is buying the time and ad space they control the message about their productservice in advertising since ads are nonpersonal it is crucial for you to understand your audience mass media communication is nonpersonal interactive media is more personal feedback advertising uses both forms What is good advertising effective communication expression of relevant ideas developing a creative concept to connect the strategy to an audience bad advertising just regurgitates info Apple Macintosh 1984 ad competed against IBM Big Blue message of doing your own thing not What everyone else does aka using macs not IBM PCs Simplistic view of advertising if you build it they will come marketer controlled advertising leads to marketer uncontrolled response favorable audience response not that easy Realistic VieW of advertising advertising gt market behavior mediated model price product distribution in uence the effects of the message things that in uence market behavior competitive conditions regulatory conditions social conditions economic conditions psychological predispositions Methods of classifying Advertising Type of Audience consumers or businesstobusiness gt types of B2B advertising industrial trade professional agricultural Type of media used Geographic area Purpose ind ustrial advertising 32 B advertising directed at companies that might use your product or service in the production of their own lumber companies to paper companies trade advertising 323 advertising goods and services to Wholesalers and retailers kelloggs to grocery store Wholesalers professional advertising 323 advertising directed at individuals who operate under a code of ethics or a set of professional standards medical supplies to doctors ag ricu ltural advertising 323 advertising directed to farmersfood producers and to others in the agricultural business john deere to farmers who need tractors Type of Media Used Geographic Area Local Regional National Global Spot Advertising When a national advertiser also focuses in specific local markets By Purpose Product vs Nonproduct Advertising a product service or brand versus advertising the company s image ie McDonalds ad for a Big Mac versus an ad focusing on their company values 0 Primary vs Selective Demand Stimulating demand for a product in general ie Got Milk ads for milk in general versus stimulating demand for a specific branded product ie Deans Horizon Borden Prairie Farms etc advertising their brand of milk 0 Direct Response vs Awareness Direct response will have a way for you to respond or react to the ad ie a web ad for nutritional supplements where you can request an order right then and there or something with a phone number listed versus other ads in general History of Advertising Volney Palmer 1840s Bought and sold spaces for ads in newspapers 0 Jay Walter Thompson 1860s Bought and sold media space as a primary purpose John Powers 1880s 0 George P Rowell 1880s Brought the creative function into the advertising agency Francis Ayer NW Ayer amp Sons 1890 Beginning of modern advertising agencies agency lasted over 100 years 1890 s Industrial Revolution era mass production globalization of products begins more things to advertise Birth of National Advertising 0 Growth of a National Market 0 Power Struggle Producers vs Retailers Branding and National Advertising enter the Power Struggle Reforms and World Wars After Depressions and World Wars Pent up Demand New Media TV and Huge Increases in Advertising Spending NYC AD TRIP Sunday may 3friday Make a resume get it reviewed and bring it in by feb 17 for extra credit career fair day Old De nition 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 for the exchange to work each party has to have something that the other wants and the parties have to know what each other have Marketing Concept 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 giving consumers what they want better than anyone else the marketer has to know what the consumer wants product wise what they want to accomplish in general what the marketer s capabilities are and what competitors are doing as a marketer look at your own orga nizational resou rces and at the environ mental factors to conduct situation analysis and to discover marketing opportunities then you can develop ma rketi ng objectives What you hope to accomplish and marketing strategy how to do it THEN YOU COME UP WITH Target Ma rket Who you decide to market to that will give you the best prospects The Marketing Mix the 4 Ps Price Product Place of distribution Promotion marketing communications aka advertising Promotion Mix advertising public relations sales promotion personal selling Public Relations 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 primary purpose of PR is to manage a company s reputation and help build public consent for its enterprises M a rketi n g P R getting free exposure for a productservice check book 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 ex coupon also can be for tradesretailers more money spent in sales promotion than advertising overkill financial incentives can hurt you in the long run people just wait for the sales to buy Personal Selling a sales method based on perstontoperson contact such as by a salesperson at a retail establishment or by a telephone solicitor advertising makes it more effective and efficient Adfed internship panel january 27 reese phiefer 180 730 pm tlvinescrimsonua edu Push or Pull promotional strategies look at which audiences consumer or trade the promotional efforts are primarily aimed push strategy emphasis is on Wholesalersretailers to supply a product so the consumer has access to it pu strategy emphasis on the consumer so they will want the productrequest it With consumer audience advertising is going to play a bigger role E n Vi ro n m e nta fa cto rs sociocultural competitive regulatory economic O rg a n iza ti 0 n a Stru ctu re advertising agencies advertisers media and supplies gt put these 2 things together situation analysis then marketing plan strategic resea rch is the first step in a marketing plan helps you set advertising objectives then you set an advertising budget sometimes the budget comes first gt all this in uences message and media strategy and tactics gt look back to objectives in order to measure advertising effectiveness C u Itu re a homogeneous group s set of beliefs attitudes and ways of doing things typically handed down from generation to generation in uences how people interpretreact to ads Com pa rative Advertising advertising that compares one brand to another to convince consumers that one is better than the other Areas of Advertising Criticism 1 product advertised obacco alcohol condoms and sexrelated products 1 advertising content perpetuates negative stereotypes insulting portrayals sexual suggestions falsityexaggeration 1 advertising exposure repetition and intrusiveness l in uences on human behavior promotes materialistic values and lifestyles lowers values and moral standards exploits susceptible segments of society poor elderly mentally ill youth Su bl i minal Advertising advertising below the threshold of consciousness doesn t really work you can get people to perceive things subliminally but can t really get the complex messages across through subliminal ads wilson bryan key books journal of consumer affairs sheri Broyles Ethical Systems standards of 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 write or wrong prob more important Groups Exercising Control Over Advertising Regulation 1 the government federal state local 2 industry selfregulation 3 the media 4 consumers the most important people to advertisers their feedback in uences advertising 1 the courts Laws of Advertising Federal Trade Commission Act 1914 established federal trade commission was not meant to regulate advertising meant to create a level playing field for businesses the biggest player at the federal level Wheeer Lea Amend ment 1938 federal trade commission watchdog actions later included deceptive advertising in order to protect consumers Lanha m TradeMa rk Act 1947 allowed 1 business to bring another business to court if they felt like the business was doing something unfair to them like trademark infringement Federal Government and Advertising 1 Federal Trade Commission see above 2 FDA regulates advertising that has to do with foodmedicine 3 Bureau of Alcohol Firearms and Tobacco selfexplanatory 4 USPS regulates what kinds of advertising goes through direct mail ie catalogues The FCC plays a very limited role can take away broadcasting licenses The FTC policy de nes deceptive advertising as 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 How A Case Goes Through the FTC and the Courts false claims noted by competitorsconsumersFTC staff FTC contacts advertiser and asks for proof FTC reviews evidence files a complaint to advertiser negotiation of a settlement gt consent decree what the advertiser agrees to do if negotiation doesn t work FTC vs advertiser hearing before a law judge judge makes a decision FTC almost always wins if FTC wins litigated case and desist order issued what advertiser must do advertiser appeal to court of appeals WNQMPP P Consent Decree a negotiated settlement or formal agreement between the FTC and advertiser specifying the actions to be taken by the advertiser Litigated Cease and 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 FTC can go after everyone in the ad Agency client even actors JAN 27 APR 221 AREAS OF ADVERTISING CRITICISM 1 PRODUCT ADVERTISED 2 ADVERTISING CONTENT 3 ADVERTISING EXPOSURE 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 Advertising leading us to a materialistic society Books by Wilson Bryan Key Subliminal Advertising The Age of Manipulation The Con in Confidence The Sin in Sincere Subliminal Seduction The Clam Plate Orgy 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 of 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 more i m p o rta n t GROUPS EXERCISING CONTROL OVER ADVERTISING 1 Government Fed State and Local 2 Industry Self Regulation 3 The Media 4 Consumers 5 The Courts 4 CONSUMERS Why do companies advertise To get their products to the people in exchange for money Customers have the most in uence of all Most impact big role 1 LAWS ON ADVERTISING Federal Trade Commission Act 1914 to level playing ground between businesses fair business practices protect businesses from unfair practice of other businesses 1938 got legit authority to look at advertising biggest federal player WheelerLea Amendment 193 8 FTC got formal authority to include advertising and protecting consumers from deceptive advertising Lanham TradeMark Act 1947 made it okay for one business to bring another business to court if they felt like the other business was doing something damagingunfair to their business important role of the court system FEDERAL GOVERNMENT ADVERTISING Federal Trade Commission FTC Food and Drug Administration FDA advertising w medicine foods Bureau of Alcohol Firearms and Tobacco United States Postal Service regulating advertising w anything that goes through the mail direct mail The Federal Trade Commission 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 of decisions with regard to the advertised product or service HOW A CASE PROCEEDS THROUGH THE FTC AND COURTS reach out to advertiser FTC reviews claim FTC files complaint here s what s wrong with this ad work together with advertiser to try and come to a negotiation each presents their case trying to come to agreement Consent decree FTC almost always wins Litigated cease and desist order the FTC brings the advertiser to face an administrative law judge or panel of judges if the FTC win they write up the order that specifies what the advertiser must to do address the problems with the deceptive ads Consent decree a negotiated settlement or formal agreement between the FTC and advertiser specifying the actions to be taken by the advertiser NOTES IAN UARY 29 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 that 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 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 REGULATION BY THE MEDIA Media Clea ra nce decision by a broadcaster or publisher to accept the ad INDUSTRY SELF REGULATION COUNCIL OF BETTER BUSINESS BUREAUS National Advertising Division NAD National Advertising Review Board NARB Children s Advertising Review Unit CARU REGULATION BY CONSUMER Action for Children s Television Boycott s and the Power of Money THE COURTS Summary of roles played by the courts Advertisers can appeal FTC and 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


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