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Intro to Ad Notes

by: Victoria Spero

Intro to Ad Notes COM CM 317

Victoria Spero

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About this Document

These notes cover what was discussed in chapter 2 of the textbook
Intro to Advertising
Dr. Michelle Amazeen
Class Notes
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This 2 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 10 views. For similar materials see Intro to Advertising in Advertising at Boston University.


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Date Created: 10/17/16
Chapter 2: The Environment of Advertising - advertising is applauded and critiqued for its influence on economics, and society - advertising makes up 2% of US GDP - ads give value to process, and therefore ad price increase. 2 products can be exactly the same, but bc one is advertised it will be more expensive - competition does lower the number of businesses offering the same product, but the businesses that go down most likely weren’t effectively serving their customers, or they’re a part of mergers and acquisitions o another factor for business being unable to join the national market is the lack of backers to pay for production plants - promotional activities do affect aggregate consumption but they don’t influence as much as we think - primary demand = demand for the entire product class - selective demand = demand for a particular brand - abundance principle = in an economy that produces more foods and services than can be consumed, advertising serves two important purposes: It keeps consumers informed of their alternatives, and allows companies to compete more effectively for consumer dollars - consumers today insist that manufacturers be held accountable for the products that they sell - puffery = exaggerated often subjective claims that can’t necessarily be proven true or false. Subjective statements, the best, the most etc. - subliminal advertising = to seduce consumers, advertisers intentionally create ads with sexual messages hidden in the illustrations - some claim that advertising skews our value system (ex. Poor kids but expensive ass shoes) - while ads may legitimately be criticized for for offering less than complete information in something for creating unwanted problems, it also contributes to the benefits of free economy - ethical advertising = doing what the advertiser and the advertiser’s peers believe is morally right in a given situation - social responsibility = dong what society views as best for the welfare of people in general od for a specific community of people o the ad industry has specific organizations that do pro bono work for the better of the country at large - when considering ethics there are tow things to consider: ones personal values or the values of the society at large - there is a distinction between speech and commercial speech when referencing the first amendment - central Hudson gas v. public service commission tested 4 key parts 1. does the commercial speech at issue concern a lawful activity? 2. Will the restriction of commercial speech serve the asserted government interest substantially? 3. Does the regulation directly advance the government interest asserted? 4. Is the restriction no more than necessary to further the interest asserted? - Sorrel v. IMS - Advertising should not intentionally deceive kids - BBB, ASRC, NARB, NAD are some of the main organizations that work to keep standards high - All types of media do their own thing to make sure the ads they run meet all necessary standards (and often match them to the demographic they’re trying to reach) - broadcast standards departments = a dept. in a TV networks that reviews all content before it is aired to make sure it meets all the appropriate standards - consumer groups do a lot to regulate the ads that run. If they don’t like an ad they see a lawsuit is often filed - many advertisers have become more sensitive to minority groups, not bc of critics but simply bc its good business - most major ad agencies have in house legal, and do lots of reviewing before releasing an ad that makes a claim, so that they can substantiate their claims in the ads - foreign governments are much stricter with the types of ads that can run and the content that is found in them. Some also don’t allow promotional material such as coupons, premiums etc.


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