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Principles of Advertising

by: Mr. Raheem Shields

Principles of Advertising ADV 205

Marketplace > Michigan State University > Advertising > ADV 205 > Principles of Advertising
Mr. Raheem Shields
GPA 3.65


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This 22 page Class Notes was uploaded by Mr. Raheem Shields on Saturday September 19, 2015. The Class Notes belongs to ADV 205 at Michigan State University taught by Bukovac-Phelps in Fall. Since its upload, it has received 973 views. For similar materials see /class/207350/adv-205-michigan-state-university in Advertising at Michigan State University.


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Date Created: 09/19/15
CH 10 Type a Appearance and arrangement of the ad s printed matter Handdrawn Computer type Type has an aesthetic role Half tone screens the combination of dots when printed producing an illusion of shading as in a photo Ch 11 ROP lets the newspaper place the ad on any page or part of the page they want the advertiser has no control of the placement but most newspapers try to put the ad where the advertisers request Secondary readership pass along rate an estimate determined by market research of how many people read a single issue ofa publication Types of newspaper advertising Display advertising copy illustrations or photos headlines coupons and other visual components Vary in size and appear in all sections of the newspaper except the first page of major sections the editorial page obituary page and classified ad page Classified Advertising provides community marketplace for goods services and opportunities of every type A newspaper s profitability relies heavily on classified ads Public Notices for a nominal fee it shows changes in business and personal relationships public gov t reports notices by private citizens and organizations and financial reports Preprinted inserts catalogs brochures mailback devices and perforated coupons that are placed in sections ofa newspaper Online advertising fastest growing source of revenue for newspapers based on size and traffic on the site Pros and cons of different media Special uses with magazines ie bleeds Bleeds background color extends to the edge of the page allows for greater exibility in expressing the advertising idea a larger printing area and more dramatic impact Cover position front cover first cover inside of front cover second inside back third outside back fourth Fourth cover is more expensive than 2 101 and 3 1st is highest Iunior unit large ad placed in the middle ofa page and surround with editorial matter Island halves similar to junior units surrounded by even more editorial matter costs more than halfpage ad but since it dominates the page advertisers find it worth the extra charge Insert advertiser prints ad on high quality paper and ship to magazine co and they put in inside of pages Gatefold is an insert that is so large the left and right sides are folded in to fit inside the magazine Circulation Guaranteed circulation the minimum number of copies a publisher expects to circulate Circulation audit thorough analysis of circulation procedures outlets of distribution readers and other factors Normally done by companies such as Audit Bureau of Circulations Primary circulation represents number ofpeople that buy the publication either by subscription or at the newsstand Magazine dates Cover Date the date printed on the cover Onsale Date date the magazine is actually issued Closing date date all ad material must be in the publisher s hands for a specific issue Horizontalvertical magazines Vertical publication covers specific industry in all its aspects example restaurant magazine Horizontal publication deal with particular job functions across many industries example Purchasing How consumers use different types of media Ch 12 Syndication sale ofprograms on a station by station market by market basis For example a producer deals directly with stations often through a distributing company rather than through the networks Offnetwork syndication former popular network programs are sold to individual stations for rebroadcast re runs Firstrun syndication involves original shows that are produced specifically for the syndication system Barter syndication fastest growing trends offnetwork or first run programs offered by producers to local stations free or for a reduced rate but with some ad space presold to national advertisersoprah and jeopardy Syndication is a popular tool for many national advertisers enables them to associate with popular programs and reach difficult to reach audiences for a lower cost TV networks and affiliates networks AB CNBCCBS offer large advertisers Ll u e and efficient 39 m h airing messages across many affiliate stations Tend to reach masses of consumers representing a cross section of the population compared to cable networks reaching certain quotnichesquot Sponsorship Advertiser assumes total financial responsibility for producing the program and providing the commercials Gain 2 advantages public more readily identifies with the product due to the prestige of sponsoring first rate entertainment and sponsors control the placement and content ofits commercials Participation advertisers pay for 10 15 20 30 or 60 seconds of commercial time during a program Enables them to spread their budgets and avoid long term commitments to any single program Small amount of time but nationwide coverage Live versus recorded radio commercials most radio stations use recorded shows with live news in between Nearly all radio commercials are prerecorded to cut costs and maintain broadcast quality Nature of radio pg 339340 TVHH HUT Ratings audience share TVHH refers to the number of household that own a TV HUT percentage ofhomes in a given area that have one or more TV turned on at any particular time Audience share percentage ofhomes with sets in useHUT tuned to a specific program AQH average quarterhour audience identifies the average number ofpeople listening to a specific station for at least 5 minutes during an average 15 minute period of any given daypart Cume cume persons total number of DIFFERENT people who listen to a radio station for at least 5 minutes in a quarter hour within a reported daypart cume rating is the cume persons expressed as a percentage of the population being measured CH 15 Media scheduling 3 principle tactics continuous ighting and pulsing Continuous ads run steadily little variance throughout used with products consumers purchase regularly Flighting alternates periods ofadvertising with periods of none used with products and services that have large uctuations in demand throughout the year Pulsing mix of previous two Low level of advertising all year but pulses during peak selling periods Product example soft drinksconsumed all summer buy heavily in summer months Other techniques burstingrepeated use of same commercial on same network roadblocking buy airtime on all 3 networks simultaneously and blinkingonly show ad on one day both network and cable so it s impossible to miss the ad BDI CDI BDI brand development index indicates sales strength ofa brand in an area a of brand s total sales in the area X 100 of total US pop In that area CDI category development index determines strength of entire product category 01a of product category s total sales in the area X 100 of total US pop In that area GRP gross rating points reach x frequency Gives the quotweight quotof a media plan Reach and frequency Reach total number of different people or households exposed at least once to a media during a given time usually 4 weeks They have na opportunity to be exposed Frequency measures intensity based on repeated exposures to the medium or program Frequency is key to memory The average number of times the same individual or homes are exposed to a medium in a time period 310 to be effective CPM cost per thousand costthousands ofpeople 20002000001000 people Effective reach describes the quality of exposure Measures the number or percentage of the audience who received enough exposure to truly receive the message Media 5 M s Markets refers to the various targets ofa media plan trade and consumer audiences global national or regional audiences ethnic and socioeconomic groups or other stakeholders Money how much to budget and where to allocate it Media all communications vehicles available to the marketer Radio TV newspapers magazines outdoor internet and direct mail Plus sales promotion direct marketing public relations activities and publicity Mechanics the variety of time units available for commercials various styles and sizes of print ads that the media planner must approach to reach the best end result and give the consumer purchasing incentive Methodology the overall strategy of selecting and scheduling media vehicles to achieve message weight reach frequency and continuity objectives Media synergy Reach people unavailable through one medium Repeat exposure in lesser cost medium Extend creative effectiveness Produce synergy total effect appears greater than the sum of the parts CH 16 Sales promotions definitions a direct inducement that offers extra incentives anywhere along the marketing route to enhance or accelerate the product s movement from producer to consumer Types of consumers for sales promotions there are a lot Loyal Users Buy our brand on fairly consistent basis Goals Reinforce existing behavior Increase usage timing or quantity good or bad nachos vs tp Crosssell related products face cream cleanser Competitive Loyals Product category users who generally buy another brand Reasons for loyalty Intense loyals preference for brand as quotbestquot Value buyers most utility for the price Habitbound buyers need to know why Goals break the pattern trial Switchers Purchase more than one brand Ours plus competitors Only competitors Reasons for switching Availability Value price sensitive Usage occasion beer Variety cereal Goals increase share or include our brand Others Price Buyers Cost concerns Perception that all brands are alike Nonusers Price Value Lack of need Consumer sales promotions Display allowances POP point of purchase 50 supermarket purchases unplanned Buyback allowances Advertising allowances Coop advertising Widely used in auto industry Dealer promotions and contests Push money Company conventions and meetings Trades sales promotions and abuses Ch14 Outdoor advertising Why use outdoor advertising a way to communicate a succinct message or image to a mass audience quickly and frequently at the lowest CPM of any major medium It carries the message 247 Out ofhome provides potential to make strong visual impact Unique creative formats can lead to high impact Outdoor advertising legislation Effective billboards Standardized large format advertising displays intended for viewing from extended distances generally more than 50 feet Bulletin Digital billboard Spectacular Wall Mural Poster ampWrapped Poster Iunior Poster Showing unit of purchase for transit advertising Full showing one card will appear on each vehicle in the system Types of outdoor advertising 1 Billboard 2 Street Furniture 3 Transit 4 Alternative OOH 5 Cinema EYES 0N Visibility research Visibility research is used to convert people who have an opportunity to see an ad on a unit into audiences who actually notice an ad on a unit VAI 15000 highdefinition video simulations of vehicular and pedestrian exposures to units Factors included unit format unit size side of road angle to the road street type distance from road Data integration Peoplecount Traffic engineering amp pedestrian modeling Mediamark MRI Research instrumentation survey design Micromeasurements VAI Video simulation amp eye tracking PRS VAI Eye tracking field tests and coding MAP Interpublics VAI Model development and diagnostics Telmar Database architecture modeling RF Traffic counts All circulation measures are updated annually as data becomes available Inventory measured includes bulletins posters junior posters bus shelters kiosks and selected wall murals Panelbypanel measurement starts with accurately counting all people passing each unit using Department of Transportation sources which is the DEC Daily Effective Circulation Travel surveys 25000 travel surveys are used to determine the demographic profiles ofpeople viewing units Travel surveys also identify the origin of trips and travel patterns across the markets The method provides date for quotto and through and inmarket audiences Ch17 Ambush marketing promotional strategy nonsponsors use to capitalize on the popularity or prestige of an event by giving the false impression that they are sponsors Special types of sponsorships sports marketing entertainment causes festivals fairs and annual events associations and membership organizations venue marketing Sponsorship leveraging Direct marketing objectives 14 Any direct communication to a consumer or business recipient that is designed to generate a response DM databases 14 database marketers build and maintain a pool of data on current and prospective customers and communicate with them using a variety of media One of the fastest growing marketing methods since it s a cost efficient way to increase sales Personal selling a The Role of Personal Selling Advertising effectiveness pertains to how well a company39s advertising accomplishes the intended Small companies use many different statistics or metrics to measure their advertising effectiveness These measurements can be used for all types of advertising including television radio direct mail Internet and even billboard advertising A company39s advertising effectiveness usually increases over time with many ssa lf rgr l Our economy is based on competit n There is no perfect competition but it is based on four fundamental assumptions Self interest complete information many buyers and sellers and absence of externalities social costs lf u l glut in Advertising in the preindustrial age was simple As markets grew larger and became more complex the demand for products increased Most people couldn t read so signs and advertisings consisted of symbols and ictures The Chinese invented Paer and Guttenberg created the printing press Advertising during the Great Depression called for business to come up with product differentiation to portray their brands as different and better than others Each brand sought to sell the public on its own s ecial ualities l Advertising In this perIod took place during the Industrializrng age which lasted until WWI Patent medicines were not produced by legitimate drug companies but companies that really didn t knowwhat the effects were as an advertisin sc eme contracted with newspapers for large volumes of advertising space at discount price and then resold the sace to advertisers at a hi er rate A m Reeves introduced every ad must have USP Unique Selling Point The rest created a revolution in which ads focused on roduct features that implied social acceptance style luxury and success w Advertisers during WWI w re mainly focused on production and the burden on marketing fell on wholesalers They used advertising primarily as an information vehicle placing announcements 39n publications called price currents to let retailers know about the sources of supply and shipping schedules for unbranded commodities T deral Trade Commission is the major regulator of advertising for products sold in interstate commerce Established by Congress the FTC is charged with ensuring that the nation s markets function comet vel and are efficient and free of undue restrictions The WheelerLea Act of 1938 is a United States federal law that amended Section 5 of the Federal Trade Commission Act to proscribe unfair or deceptive acts or practices as well as unfair methods of tition Puffery refers to the exaggerated often subjective claims that can t necessarily be proven true or false such as the best or the only way to fly Puffery remains legal and is used widespread Puffery erodes advertisin credibilit as a trustworthy messenger by lowering the public s belief in the ad they see Ethics are the study of What is morally right or wrong Ethical advertising means doing What the advertiser and the advertiser s peers believe is morally right in a given situation Social responsibility is acting in accordance to what society views as best for the welfare of people in general or for a specific community of people Deceptive advertising is any ad that contains a misrepresentation omission or any other practice that can mislead a significant number of reasonable consumers to their detriment Proof that consumers were deceived is not re uired and the reresentation may be either expressed or implied Sublim just belowt inal advert s n rtisements with messages often sexual supposedly embedded in illustrations he thre t39 shold of perce ion l llilJ39L w t z ommercial speech is fferent from sp use s speech that promotes a commercial transaction Decisions over the last two decades suggest that truthful commercial speech is also entitled to protection under the First amendment Virginia State Board of Pharmacy v Virginia Citizens Consumer Council Central Hudson Gas v Public Service Commission r J Unfair advertising occurs when a consumer is unjustifiably injured or there is a violation of public policy Its due to the inadeuac o comlete information or some other externality H luv ers must make known their products limitations of deficiencies Such Affirmative disclosure is when adertis as 39 e 39 de warnings or statements that product could be hazardous to health esti A document advertisers sign without admitting any wrongdoing in which they agree to stop objectionable advertisin A ease and desist order maybe be issued by the FTC if an advertiser won t sign a consent decree and it rohibits the further use of an ad y the FTC for a period of time to explain and correct offending ads l The Federal Communications Commission is an independent federal agency with jurisdiction over the radio television telephone satellite and cable TV industries and the Internet The FCC can restrict both the roducts advertised and the content of the ads l The Food and Drug Administration is authorized by Congress to enforce the Federal Food Drug and Cosmetic Act and several other health laws The agency monitors the manufacture import transport storae and sale of over 1 trillion worth of roducts annuall and it costs taxpayers about 3 per person Michigan s item pricing law also known as the price scanner law makes sure that the prices marked on retail goods can be read by the consumer as well as the computerThis law was passed because computerized checkout systems which are now the most common checkout method rely on a code of vertical bars and numbers known as the Universal Product Code UPC to record the price of goods The price brand name etc are put into the computer The price is read by the scanner and charged to the client electronically Because the scanner instead of the clerk reads the price at checkout stores do not need to mark each item individually to conduct business The scanner law requires that with some exceptions a customer readable price still be attached to an item so you can compare prices and check for accuracy at eckout Advert sers regulate themselves They have to Most large advertisers gather strong data to substantiate their claims They maintain careful systems of advertising review to ensure that ads meet both their own standards an dustr media and legal requirements The Nat nal Adve g Division monitors advertising practices and reviews complaints about advertising from consumer and consumer groups brand competitors local BBB s trade associations and others The National Advertising Review Board is the appeals board for the NAD which consists of a chairperson and 70 volunteer members 40 national advertisers 20 agency representatives and 10 lay people There are onl certain allowable things that are suitable for kids and advertising to them isn t legal I think Almost all media companies review ads and reject material they regard as objectionable even if it isn t decetive iii Consumer advocate groups investigate advertising complaints received from the public and those that grow out of their own research If a complain is warranted they ask the advertiser to halt the objectionable ad or ract39ce zed approach to marketing and advertising in all countries are considered global marketers Their assumption is that the way the product is used and the needs it satisfies are universal Companies do a lot of research before attempting a global advertising strategy Has each country s market for the product developed in the same way Are the targets similar in different nations Do consumers share the same wants and needs ml i 39irsle quot1 Centralized advertising departments include a staff of employees usually located at corporate headquarters responsible for all the organization s advertising The department is often structured by the produc advertising subfunction end user media or geography In a decentralized system the establishment of adcertising departments by products or brands or in various divisions subsidiaries countries regions or ther cateories that suit the firm s nee vxn39ch erate with a major degree of independence 39 l l i iquot 3 ll ng agencies produce and place the quality of advertising suitable for national campaigns whereas local advertising agencies specialize in creating advertising for local businesses Local agencies encies less extensively than national agencies do Advertising agency is an independent organization of creative people and businesspeople who specialize in evelo39n ar39n advertising plans advertisements and other promotional tools for advertisers An inhouse aency is an agency wholly owned by an advertiser and set up and staffed to do all the work of 39 deendent fullservice aenc ipped to serve its clients in all areas of communication and promotion Its advertising services include planning creating and producing advertisements as well as performing research and media selection services Nonadvertising functions include producing sales promotion materials publicity articles annual reorts trade show exhibits and sales training materials ii I i iii LL 3 ti In a group s which an ad agency is divided into a number of little agencies or groups each composed of an account supervisor account executives copywriters are directors a media director and any other specialists required to meet the needs of the particular clients being served by the group In a departmental system the organization of an ad agency into departments based on function account services marketin services and administration i n 7 A creative boutique is an organizaton of creative specialists such as art directors designers and copywriters that work for advertisers and occasionally advertising agencies to develop creative concepts advertisin messaes an secialized art A boutique performs only the creative work A med a specialized agency or mediabuying service is an organization that specializes in purchasing and packain radio and television time Media commission is compensation paid by a medium to recognized advertising agencies traditionally 15 3 ercent for outdoor for advertising placed within it 0 some amount to a supplier s bill usually 1765 percent An agency s presentation of the advertisement it proposes using in the event it is hired It is usually made at the request of a prospective client and is often not paid for by the client Many forces influence the clientJagency relationship They generally can be grouped into the four Cs chemistr communication conduct and changes l Supp iers are peop e an organizations that assist both advertisers and agencies in the preparation of advertisin materials such as hotoraphy illustration printing and production 1 The totality of what consumers distributors dealers and competitors feel and think about a brand over an extended eriod of time39 in short it is the value of the brand s capital The way in which a product is ranked in the consumer s mind by the benefits it offers by the way it is classified or differentiated from the cometition or by its relationship to certain target markets The proiection of future consumer demand for a product category based on past demand and other market influence Consumer demand for a whole oduct categor Y Demographic segmentation is based on a population s statistical characteristics such as sex age ethn education occupation income or other quotquot quot39 factors g 39 39 39 is a method of segmenting markets by geographic regions based on the shared characteristics needs or wants of people within a region Psychographic segmentation is a method of defining consumer markets based on o ical variables includin va ues holo attitudes personality and lifestyle the whole market with a single basic product line and marketing strategy Undifferentiated marketing relies on mass distribution and mass advertising aiming to give the product a superior image in the minds of consumers It is cost effective because there is only one product line to be produced inventoried distributed and dvertised if v ii 1 1 A marketing process that showcases the differences between products Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products Successful product differentiation creates a competitive advantage for the seller as customers view these products as ror of a product including introduction growth maturity and decline that all affect duct is marketed and advertised Progress the wa ive stages in the life a 4 Product Promotion Place and Price used by every company The 4P s are a simple way to remember the basic elements of the marketing mix but within each element are many marketing activities a company can use to finetune its roduct concept and improve sales E fl ii ii 39i VALS is a psychographic segmentation tool to define areas where marketers us psychographics to view people as individuals with feelings and inclinations Then they can classify people according to What the feel What they believe the way the live and the products services and media they use VALS is a s chorahic classification s stem M ii i 39 39l V l Target marketing is the process by Which an advertiser focuses its marketing efforts on a target market A target market is the market segment or group within the market segment toward which all marketing activities will be directed The first process is to assess Which newly created segments offer the greatest profit potential aka find your target market then find Where to focus its attention and resources aka product concept and theorize its product life cycle then position it according to its stage in the life cycle and then differentiate the product through branding determine the price of the product and advertise accordingly STUDY GUIDE FOR TEST 1 What makes an ad effective Strategy most important creativity execution advertising must be goal directed Free market economy 1 N 03 gt self interests people and orginizations tend to act in there own self interest Open competition between selfinterested sellers advertising to selfinterested sellers advertising to self interested buyers leads to greater product availability at more competitive prices Complete Information Access by buyers and sellers to all information at all times about what products are available at what quality and leads to prices Many buyers and sellers have a wide range of products leads to customers who are interested in unique products Absence of externalities social costs sometimes the sale of consumption ofproducts may benefit or harm other people who are not involved in the transaction and didn t pay for the product Preindustrial advertising During this age several important developments enabled the eventual birth of modern advertising Chinese invented paper Europe had its first paper mill 1275 The printing press was invented and changed advertising forever 1440 guttenberg The beginning ofpuffery in the print ads 1472 hand bills 1650 newspaper ads Ben Franklin published pen gazette in phin included pages of new advertisements in 1729 J Guttenberg and his invention he invented the printing press in the 1440s in Germany It started print advertising and also helped in communicated revolutionized the way people live and worked Advertising and the great depression 1929 advertising plummeted advertising needed to improve its effectiveness they started to do research about there consumers started the marketing research industry which was the most important development in advertising history and revolutionized the way people lived and worked Pg 14 Late 1800 s advertising patent medicine There was no formal regulation which led to The Jungle consumer movement and eventually 1892 Ladies Home Journal bans patentmedicine advertising Men would make false statements on advertisements for medicine to get people to buy them By 1900 there were an estimated 350000 traveling men doing this in America Volney Palmer Set up business in Philadelphia in 1841 contracted with newspapers for large volumes of advertising space at discounted rates and then resold them to advertisers at a higher rate 1843 He was considered to be the rst advertisement man Reeves Ogilvy Burnett Bernbach Postwar creatives responsible for a creative reveloution Rosser reeves Unique selling product differentiation Responsible for mampms wonderbread and Eisenhower Leo Burnett inherent drama 1955 malboro man introduced tony the tiger David Ogilvy Imagery and story appeal to ads William Bernbach positioning feelings and emotions introuduced concept ofa creative team Postwar creative Rosser Reeves Unique Selling Proposition USP product differentiation ie Anacin MampM His techniques began to fail in the 1960s because consumers tuned out the repetition Leo Burnett inherent drama 1955 Marlboro man introduced David Ogilvy imagery and story appeal William Bernbachl960 positioning feelings and emotions Introduces the creative team approach of combining a copywriter with an art director WW I advertising Advertising likes wars world war 1 was the rst time advertising worked for the government FTC 1914 they stepped in after all bad ads Federal trade commission was established Advertising primary governing agency FTC Federal Trade Commission looks for Deception must mislead the consumer reasonable consumer Unfair Advertising causes or is likely to cause substantial injury to consumers which is not reasonably avoided by consumers not outweighed by countervailing benefits to consumers or to competition Wheeler Lea Wheeler Lea amendment FTC authority over both unfair methods of competition and unfair or deceptive acts or practices Stereotypes Stereotypes negative or limiting preconceived beliefs about a type of person or a group of people that do not take into account individual differences Advertisers have to be really careful not to sterotype people in there ads because it loses customers and with so many watchdog groups out there Puffery Puffery means exaggerated commendation or hype lt lowers publics trust in advertising that they see people begin to question ads Ads don t get in trouble for puffery because most of the time it is so exaggerated that the customer should not believe it Ethics Ethical advertising doing what the advertiser and peers believe is morally right in a given situation the traditional actions taken by people in a society or community and the philosophical rules that society or community and the philosophical rules that society establishes to justify such past actions Attitudes feelings and beliefs that add up to a personal value system Singular ethical rights such as good bad right wrong duty integrity Moral and value standards that act as behavioral guidelines for a societys citizens Unlike laws and regulations ethical codes are generally not written down Ethical issues include advocacy accuracy and acquisitiveness Marketers try to create effective attentiongrabbing messages without crossing the line beyond what is legal ethical and socially acceptable Deceptive advertising According to the FTC any ad in which there is a misrepresentation omission or other practices that can mislead a significant number of reasonable consumers to their detriment Subliminal advertising Advertisements with messages often sexual supposedly embedded in illustrations just below the threshold of perception 1st Amendment commercial speech and court cases First amendment freedom of expression speech vs commercial speech commercial speech is more pro t driven stronger than normal speech dif cult to subdue Valentine vs Christensen 1942 political speech Bigelow v Virginia 1975 ran ads for abortion Virginia State Board Pharamacy v Virginia citsens council 1976 Bates v St Bar of Arizona 1977 prohibited lawyers for advertising This opened up advertisings freedom of speech rights Speech vs C0mmercial Speechtheres a difference between speech and commercial speech Valentine V Christensen 1942 commercial speech loses freedom Bigelow V Virginia 1975 commercial speech deserves some protection Virginia State Board of Pharmacy V Virginia Citizens Council 1976 said pharmaceutical companies could make commercials Bates V St Bar ofArizona 1977 comparative advertising Advertising that claims superiority to competitors in some aspect Unfairness Unfair advertising is according to the FTC advertising that causes a consumer to be unjustifiany injured or that violates public policy affirmative disclosure Advertisers must make known their products limitations or deficiencies consent decree A document advertisers sign without admitting any wrongdoing in which they agree to stop objectionable advertising cease and desist May be issued by FTC ifan advertiser wont sign a consent decree prohibits further use of an ad corrective advertising May be required by the FTC for a period of time to explain and correct offending ads FCC Federal Communications Comission seven member independent federal agency with jurisdiction over the radio television satellite and cable TV industries and the Internet FDA Food and Drug Administration authorized by Congress to enforce the federal food drug and cosmetic act and several health laws See which food is safe and not safe what cosmetics wont hurt us and medicines that are safe Makes them have all their ingredeints State of Michigan Consumer Protection and Item Pricing You can file a compliant if there is a price on the item and it is different at the scanner than you get your money back to what the sale price was Self regulation When ad agencies have to regulate themselves and make sure there ads are up to standards so they don t get in trouble and they re representing the brand correctly AAAA American association of advertising one of the largest assocaitions for advertising NADNARB NAD National advertising divison where people le compliants NARB National Advertising Review Board it will get appealed to this Advertising to kids Kids have different regulations because they can be mislead by advertisements so much easier CARU children advertising review unit seeks and makes sure there are no misleading factors in child advertisements Media regulation Televison is the most regulated but then there is radio magazines and newspapers Consumer groups in the 1960s the consumer movement became more active consumer advocate is an individual or group that actively works to protect certain rights often by investigating advertising compliants received from the public and those that grow out of their own research Global marketers approaches The people that create global brands their assumption is that the way the product is used and the needs it satisfies are universal Advertiser dept structure centralized and decentralized Centeralized advertising department a staff of employees usually located at corporate headquarters responsible for all the organizations advertising The department is often structured by one product advertising subfunction end user media or geography Decentralized the establishment of advertising departments by products or brands or in various divisons subsidiaries countries regions or other categories that suit the firms needs which operate with a major degree of independence National versus Local advertising National focus brand market share strategies markets long term frame 5 10 million use of many specialists Local focus location volume tactics customers short term time frame less than a million use of few generalists Ad Agencies Ad agencies an independent organization of professionals who provide creative and business services to clients related to planning creating advertising lnhouse agencies Big companies have them allows individuals to become technical experts on products being advertised saves cost receives priority for clients and the needs ofclients and has more control over the product Full service agencies an agency equipped to serve its clients in all areas ofcommunication and promotion lts advertising service include planning creating and producing advertisments as well as performing research and media selection services Nonadvertising functions include producing sales promotion materials publicity articles annual reports trade show exhibits and sales training materials Ad agency structure group and department Group department system in which an ad agency is divided into a number of little agencies or groups each composed ofan account supervisor account executives copywriters art directors a media director and any other specialists required to meet the needs ofthe particular clients being served by group Departmental system The organization of an ad agency into departments based on function account services creative services marketing services and administration Creative boutique Are Organizations of creative specialists that work for advertisers and occasionally advertising agencies to develop creative concepts advertising messages and specialized art A boutique performs only the creative work Media specialized agencies Media buying service is an organization that specializes in purchasing and packaging radio and television time They purchase media slots on tv and radio gives detailed analysis Media commission Commissions around 15 airtime fees compensation paid by a medium to recognized advertising agencies for advertising placed with it Mark ups A source ofagency income gained by adding some amount to a suppliers bill usually 1765 percent Speculative presentations An agency s presentation of the advertisements it proposes using in the event it is hired It is usually made at the request ofa prospective client and is often not paid for the client Factors that impact client agency relationship chemistry communication conduct changes Suppliervendors art studios web design printers production houses research companies Brand equity The totality of what consumers distributors dealers and competitors feel and think about a brand over an extended period oftime in short it is the value ofthe brands capital Positioning The way in which a product is ranked in the consumers mind by the benefits it offers by the way it is classi ed or differented from the competition or by it relationship to certain target markets Primary demand Consumer demand for a whole product category Market segmentation demographic geographic psychographic Demographic based on a populations statistical characteristics such as sex age ethinicity education occupation income or other quantifilable factors Undifferentiated market strategy Differences perceptible hidden induced Product life cycle Progressive stages in the life of a product including introduction growth maturity and decline that affect the way a product is marketed and advertised 4 P s Product Price Place and Promotion used by every company VALS A classification system that segments according to resources and decision making motivation Target market process The process by which an advertiser focuses its marketing efforts on a target market Distribution The network of all the firms and individuals that take title or assist in taking title to the product as it moves from the producer to consumer The BrandThat combination of name words symbols or design that identifiers the product and its source and distinguishes it from competing products the fundamental differentiating device for all products lndividual brand assigning a unique name to each product a manufacturer prouduces Family brand The marketing of various products under the same umbrella name National Brands Product brands that are marketed in several regions ofthe country Price Dicated by supply and demand influenced by production and distribution costs should convey value realative to other products should convey relative to other products should meet a companies objective should match with products positioning Place distribution must be consistent with the brand image direct vs indirect distribution intensive sell everywhere low profit high volume MampMs selective limit number ofsales outlets coach bags exclusive used to maintain prestige Promotions What makes an ad effective I Guttenberg and his invention Advertising and the great depression Late 1800 s advertising patent medicine Volney Palmer Reeves Ogilvy Burnett Bernbach WW I advertising PSA FTC Wheeler Lea Stereotypes Puffery Ethics Deceptive advertising Subliminal advertising 1st Amendment commercial speech and court cases Comparative Unfairness Affirmative disclosure Consent decree Cease and desist Corrective advertising FDA State of Michigan Consumer Protection and Item Pricing Selfregulation NADNARB Advertising to kids Media regulation Ad agencies independent and inhouse Creative boutiques and media buying agencies and suppliers Media commission Markups Ad agency structure Advertising department structure National and local advertisers Agency client relationship Target marketing and Segmentation LS Marketing miX 4 P s Product life cycle Product differentiation Distribution channels Price Product demand Positioning Brand equity Maslow hierarchy ofneeds Brand loyalty Consumer decisionmaking process things that in uence Perception and Learning Physiological and Psychological screens Elaboration Likelihood Model Reference group Evoked set HealthteX Reliability and validity of research tests Primary and secondary data Research objectives Qualitative research andtechniques Quantitative research Recall Sampling New Coke Leo Burnett HealthteX Kotler and Armstrong 5 levels of relationships Objectives Strategy Tactics Four sources of brand messages Advertising plan SWOT Top down and bottom up planning Budgeting methods MSU football Creative pyramid Creative brief Theories of thinking Explorer Artist Iudge Warrior


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