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Intro to Ad Chapter 1

by: Victoria Spero

Intro to Ad Chapter 1 COM CM 317

Marketplace > Boston University > Advertising > COM CM 317 > Intro to Ad Chapter 1
Victoria Spero

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About this Document

These notes cover all material in Chapter 1 in the TB and what was discussed in class
Intro to Advertising
Dr. Michelle Amazeen
Class Notes
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This 3 page Class Notes was uploaded by Victoria Spero on Monday October 17, 2016. The Class Notes belongs to COM CM 317 at Boston University taught by Dr. Michelle Amazeen in Fall 2016. Since its upload, it has received 6 views. For similar materials see Intro to Advertising in Advertising at Boston University.


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Date Created: 10/17/16
Chapter 1: The evolution of advertising - Positioning = creating an image of a product, person, organization or idea in the minds of a large group of people - Integrated marketing communications (IMC) = the coordination and integration of messages from a variety of sources o Today its impossible to reach and effectively persuade viewers with only traditional media, they need to integrate PR, personal selling, sales promotion, and the new digital media to mount an effective campaign - Advertising is one type of marketing communications - The father of modern advertising Albert Lasker defined advertising as “salesmanship in print, driven by a reason why.” - Advertising = the structured and composed nonpersonal communication od information, usually paid for and usually persuasive in nature about products by identifies sponsors through various media - Word of mouth (WOM) is not considered advertising, but it is considered a communication medium - There are three divisions of what business organizations do 1. Operations 2. Finance/administration 3. Marketing. This is the only role that is supposed to bring in revenue - Marketing = the activity, set of institutions and processes for creating communicating, delivering, and exchanging offerings that have value for customers, clients, partners and society at large - Marketing is generally broken down into 4 steps, or the 4Ps of the marketing mix 1. Developing products 2. Pricing 3. Distributing to the right places 4. Promoting them through sales and advertising - Advertising helps the organization achieve its marketing goals - A good advertiser understands the whole marketing process, and knows what type of ad will work best based on what’s lacking in that process - Marketing strategy = determines who the targets of the ad should be, where it should appear, and what it should accomplish - Advertising strategy = refining the target audience, defining the response the advertiser wants - There are four assumptions of free market economics that a market driven society wants 1. Self-interest: people always want more for less. This means there will be greater product availability 2. Complete information: buys can have all access about products including prices quantity etc. 3. Many buyers and sellers: if one seller fails another will succeed and sellers can always find interested buyers 4. Absence of externalities: consuming certain goods have taxes bc they benefit/harm the public - Branding = to identify products and their source and to differentiate from others - There are several basic functions of advertising 1. Identify products and their source and to differentiate them from others 2. to communicate information about the product, its features, and its location of sale 3. to induce consumers to try new products and to suggest reuse 4. increase product use 5. stimulate the distribution of a product (globally/nationally) 6. build value, brand preference, and loyalty 7. lower the overall cost of sales - advertising first started in the preindustrial age (beginning of time- 1800), markets were growing and therefor more products were available. Most ads were in the form of carved signs in front of shops o important things happened during this time  paper was invented by the Chinese, and the first paper mill was created in Europe by 1275  printing press was invented in Germany (first formats of ads posters, signs etc.)  first English print ad was for a bible being sold by a church - the industrialization age (1800-1918, the bigger fueled market created a new need for ads - ads were mostly used for price currents - the first ad business by created by Volney B. Palmer in Philadelphia in 1841, the first agency was created in 1869 by Francis Ayer - the industrial age lasted into the 1970’s, consumer packaged goods were becoming more prominent - manufacturers were now focused on sales instead of production, developing new profucs created better sales - when the radio was created it became a huge source of advertising - products differentiation, unique selling positions and market segmentation became very important - in the post industrial age ads started to be used in demarketing - the importance of advertising in individual countries varies based on development, and the overall attitude towards promotion - estimates show that advertising costs in china will be higher than in the US by 2025 - narrowcasting medium = delivering programming to a specific group defined by demographics or program content, instead of mass appeal - advertising is turning into a two way medium where consumers with tvs, computers, internet and cable can choose the information they access and then spend time researching the product info they want - the strongest asset that a company has is the relationship they have with the consumer/customer, relationship marketing - - ad has increased productivity by labor and management - ad enables freedom of the press by supplying the most revenue to newspapers, magazines etc. - advertising has had a big effect on society, the economy and ultimately created laws to determine what ads could do


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