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by: Vinnie Haley


Marketplace > Clemson University > Marketing > MKT 423 > PROMOTIONAL STRATEGY
Vinnie Haley
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Patricia Knowles

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Patricia Knowles
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This 6 page Class Notes was uploaded by Vinnie Haley on Saturday September 26, 2015. The Class Notes belongs to MKT 423 at Clemson University taught by Patricia Knowles in Fall. Since its upload, it has received 25 views. For similar materials see /class/214205/mkt-423-clemson-university in Marketing at Clemson University.

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Date Created: 09/26/15
Marketing 423 Dr Knowles Study Guide for the Chapter 22 Quiz Know that there are two sides to the idea that advertising and promotion are appropriate activities and be able to sum up the arguments of both proponents and critics of advertising Proponents of advertising argue that is it the lifeblood of business it provides consumers with information about products and services and encourages them to improve their standard of living They say advertising produces jobs and helps new firms enter the market place Companies employ people who make the products and provide the services that advertising sells Free market economic systems are based on competition which resolves around information and nothing delivers information better and at less cost than advertising Critics argue that most adveltising is more propaganda than information it creates needs and faults consumers never knew they had Ads suggest that children need cell phones that our bodies should be leaner our faces younger and our houses cleaner They point to the sultry scantily clad bodies used in ads to sell everything from perfume to beer to power tools and argue that advertising promotes materialism insecurity and greed Be able to de ne ethics and explain how promotional activities may be legal but unethical or illegal but ethical Ethics are moral principles and values that govern the actions and decisions of an individual group An action may be legal but still un ethical for example N0 laws restrict tobacco companies from targeting African Americans with adveltising despite high levels of lung cancer amongst the black population Know the industries e g alcohol and tobacco speci c topics eg women and minorities in advertisements and a company eg Benetton that have come under attack by critics of advertising Alcohol and tobacco companies had come under criticism for advertising to the young public Several studies have shown that there has been a signi cant increase in binge drinking among college students and have advocated a ban on alcoholic related advertising and promotion Groups like National Organization for Women and Women Against Pornography have been critical of advertisers for promoting sexual permissiveness and objectifying women in their ads Example recently NOW expressed outrage over a print ad used by fashion brand Dulce and Gabana that it feels suggests gang rape The ad features a woman fully clothed in a tight dress and spiked hills lying on her back hips raised while a bare chested man holds her down as four other men look on Another company that has received a great deal of criticism over the years for its adveltising is Benetton The Italian based clothing company ran numerous shock ads containing controversial images such as a black woman nursing a white baby an AIDS patient and his family moments before death and a priest kissing a nun The company noted that the controversial images were designed to raise public awareness of social issues and position the company as a cutting edge socially conscious marketer Know the various general social criticisms of advertising eg advertising is untruthful or deceptive advertising is offensive or in bad taste etc A number of studies have shown a general mistrust of advertisers among consumers A more recent study conducted by Forester Research found that consumers mistrust ads for most types of products and rely on word of mouth from friends and family as the most trusted source of information The problem of untruthful or fraudulent advewrtising and promotion exists more at the local level and in specific areas such as mail order telemarketing and other forms of direct marketing While many critics of advertising would probably agree that most advertisers are not out to deceive consumers deliberately they are still concerned that consumers may not be receiving enough information to make an informed choice Know the various categories of advertising that are most likely to result in critics arguing that advertising is offensive or in bad taste e g sources of distaste sexual appeals etc Sources of distaste Some object when certain products or services such as contraceptives or personal hygiene products are advertised at all condoms use to not appear in ads In a study the most irritating commercials were for feminine hygiene products ads for women s undergarments and hemorrhoid products were close behind Sexual Appeals These ads have been accused the most for poor taste A common criticism of sexual appeals is that they can demean women or men by depicting them as sex objects ads for cosmetics lingerie Know that consumers can be irritated or offended by ads in a number of ways and be able to explain those ways e g some don t like certain products to be advertised some don t like ads that make them feel anxious etc Refer to previous answer People may feel disrespected uncomfortable or misguided depending on the manner of the ad Be able to de ne and explain shock advertising Shock advertising has been increasingly used and is an appeal in which marketers use nudity sexual suggestiveness or other startling images to get the consumers attention Example Sex tips in the AampF catalogue Know the various arguments of critics of advertising aimed at children eg one is that children lack the experience and knowledge to understand and evaluate persuasive ad appeals Research has shown that pre school children cannot differentiate between commercials and programs do not perceive the selling intent of commercials and cannot distinguish between reality and fantasy Be able to de ne the consumer socialization process and explain how that concept relates to the topic of advertising and children For example would that process be more likely to be used by a critic or advocate of advertising to children There are those who argue that advertising is a part of life and children must learn to deal with it in the consumer socialization process of acquiring the skills needed to function in the marketplace They say existing restrictions are adequate for controlling children s advertising Know the various general social and cultural conseguences of advertising eg advertising encourages materialism advertising makes people buy things they don t need etc Advertising encourages materialism some believe it seeks to create needs rather than merely showing how a product or service ful lls them surrounds consumers with images of the good life and suggests the acquisition of material possessions leads to contentment and happiness and adds to the joy of living suggests material possessions are symbols of status success and accomplishment andor will lead to greater social acceptance popularity sex appeal and so on Many critics believe that advertising causes people to buy things that they do not need and they say advertising should just provide information useful in making purchase decisions and should not persuade Be able to de ne the term materialism discuss whether materialism is a good or a bad thing and explain how that term might relate to the social and cultural consequences of advertising Some of this answer is in the previous response Materialism is a preoccupation with material things rather than intellectual or spiritual concerns This criticism of advertising assumes that materialism is undesirable and is sought at the expense of other goals Know what the term Protestant ethic means and how it might relate to materialism Protestant ethic stresses hard work and individual effort and initiative and views the accumulation of material possessions as evidence of success Be able to give arguments on both sides of the issue Advertising makes people buy things they don t need Some believe advertising induces materialism and the purchase of things that people would not have bought or needed to buy otherwise However it has also been argued that an emphasis on material possessions does not rule out interest in intellectual spiritual or cultural values Many argue that the acquisition of material possessions has a positive economic impact by encouraging consumers to keep consuming after their basic needs are met Be able to explain the current situation of advertising s portrayal of women Advertising has received much criticism for stereotyping women and failing to recognize the changing role of women in our society Critics have argued that advertising often depicts women as preoccupied with beauty household duties and motherhood or shows them as decorative objects or sexually provocative pictures However many advertisers have begun to recognize the importance of portraying women realistically and not passive deferent lacking intelligence and credibility Be able to explain the past and current state of advertising to AfricanAmericans and Hispanics For many years advertisers virtually ignored all nonwhite ethnic groups as identi able subcultures and viable markets and use of African Americans or Hispanics in ads was very limited Now after several decades ads are increasingly likely to be racially integrated Some advertisers have begun breaking the taboo against suggesting interracial attraction Ikea ran a TV commercial showing an interracial couple shopping for a daddy chair and discussing their plans to conceive Know why advertisers are struggling with multicultural marketing and diversity see Diversity Perspective 221 on pp 755756 With the growing size of diversity among the US population marketers are realizing the necessity to advertise to those ethnicities as they now make up a large portion of the population However they are struggling because many marketers see the need to advertise to the multicultural markets but there is still much confusion among many marketing executives as to why they would do this Some execs feel that their company is not t for multicultural marketing and there are also very few African Americans who hold any managerial or creative position in marketing rms for a very long period of time PampG recently launched their My Black is Beautiful campaign as black females spend three times the amount of the general market on beauty supplies When it comes to Advertising and the Media know what economic censorship is It is well documented that economic censorship occurs whereby the media avoid certain topics or even present biased news coverage in acquiescence to advertiser demands There is a concern that advertising may even control the media due to the important role it plays in media Be able to intelligently discuss the argument that advertisers control the media as well as arguments that advertisers do not control media Arguments supporting advertiser control Advertising is the primary source of revenue for nearly all the news and entertainment in the United States Some critics chare that the media s dependence on advertisers support make them susceptible to various forms of in uence including exerting control over the editorial content of magazines and newspapers biasing editorial opinions to favor the position of an advertiser limiting coverage of a controversial story that might re ect negatively on a company and in uencing the program content of television Many programs are in uenced on the basis of what most people will watch and thus be most desirable to advertisers Arguments against advertiser control Advertisers say it is in the best interest of the media not to be in uenced too much by advertisers To retain the public con dence they must report the news fairly and accurately without showing bias or attempting to avoid controversial issues media in the US are basically supported by advertising this means we can enjoy them for free or for a fraction of what they would cost without advertising separation of their news in business is known as the wall and is often spoken of with a mixture of reverence and trepidation Most magazines and newspapers are concerned over maintaining the wall and ensuring that decisions on the writing editing and publishing of stories are made on journalistic merit rather than on whether they will attract or repel advertisers Be able to give examples of media that would be less vulnerable to in uence and pressure from advertisers on the type of stories they run and those that would be more vulnerable to advertiser in uence and pressure Newspapers and magazines receive nearly 70 percent of teir revenue from advertising commercial TV and radio derive virtually all of their income from advertising Small nancially insecure newspapers magazines or broadcast stations are the most susceptible to pressure from advertisers particularly companies that account for a large amount of the media outlet s advertising revenue V isa versa for larger more stable companies Know what the concept of The Wall means when it comes to magazines and newspapers Repeated from above separation of their news in business is known as the wall and is often spoken of with a mixture of reverence and trepidation Most magazines and newspapers are concerned over maintaining the wall and ensuring that decisions on the writing editing and publishing of stories are made on journalistic merit rather than on whether they will attract or repel advertisers Know the various proposed economic effects of advertising eg effects on consumer choice effects on competition etc Advertising plays an important role in a free market system like ours by making consumers aware of products and services and providing them with information for decision making Advertising can encourage consumption and foster economic growth Critics of advertising view it as detrimental that not only fails to perform its basic function of information provision adequately but also adds to the cost of the products and services and discourages competition and market entry leading to industrial concentration and higher prices for consumers Economists consider the economic impact of advertising on an entire industry or on the economy as a whole rather than its effect on an individual company or brand Be able to explain how a very large company with a very large advertising budget can create a barrier to entry into a market Economists argue that power in the hands of large rms with huge advertising bud gets creates a barrier of entr39y which makes it dif cult for other firms to enter the market Smaller firms already in the market nd it dif cult to compete against the large advertising budgets of the industry leaders and are often driven out of business Be able to explain the arguments concerning how advertising can affect product costs and prices both increasing and decreasing them Critics say that advertising increases the costs consumers pay for products and services in that the large sums of money spent on advertising a brand constitute an expense that must be covered and the consumer ends up paying for it through higher prices A second way advertising can result in higher prices is by increasing product differentiation and adding to the perceived value of the product in consumers minds Supporters argue that while advertising costs are partly paid for by consumers it may help lower the overall cost of a product more than enough to offset them It can also lower prices by making a market more competitive which usually leads to greater price competition Know and be able to explain the difference between the argument that advertising equals market power and advertising equals information Advertising equals market pow er re ects traditional economic thinking and views advertising as a way to change consumers tastes lower their sensitivity to price and build brand loyalty among buyers of advertised brands Proponents of this thinking generally have a negative attitude toward advertising Advertising equals information takes a more positive view of advertisings economic effects This model sees advertising as providing consumers with useful information increasing their price sensitivity which moves them toward low er priced products and increasing competition in the market


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