Advertising 318J Test 1

Pure Food and Drug Act

- A 1906 act of Congress requiring manufacturers to list the active ingredients of their products on their labels

E-Business

- A form of e-advertising or promotion in which companies selling to business customers rely on the Internet to send messages and close sales

Proactive Pubic Relations Strategies

- A public relations strategy that is dictated by marketing objectives, seeks to publicize a company and it's brands and is offensive in spirit rather than defensive. -Strives to bring goodwill (and buzz) for the brand. -A firm acknowledges opportunities to use public relations efforts to accomplish something positive, as the "Tools of Public Relations"

Consent Order

- A type of developmental research that seeks feedback designed to screen the quality of a new idea, using consumers as the final judge and jury. -an advertisers accused of running deceptive or unfair advertising agrees to stop running the advertisements​ in question, without admitting guilt.

Consumer Culture

- A way of life centered around consumption -Used during 1875-1918

Con: Advertisers Deceive Via Subliminal Stimulation

- No one every sold anything by putting images of breast in ice cubes or the word sex in the background of an ad. No one at an advertising agency, except the very bored or the very eager to retire, has time to sit around dreaming up such things.

Consumer, Access, Connections, Branded Entertainment, and The Great Recession (2000- To Present)

- Problem: the lack of a good web advertising revenue model. Popups and easy-to-avoid Internet ads had not generated enough advertising revenue -Consumers have much easier access to information and each other than before -Consumers can now communicate with each other, actually talk back to the marketer with one voice or millions, and even make their own ads and distribute them on social media such as YouTube -Consumers reactions are fused with agency "professional" creatives to make ads that are one step from homemade, or in some cases completely homemade.

Federal Communications Commission (FCC)

- Prohibits obscenity, fraud, and lotteries on radio and tv. Ultimate power lies in the ability to deny or revoke broadcast licences.

Consumerism

- The actions of individual consumers or groups to exert power over the marketplace activities of organizations -Consumers want a greater voice in the whole process of product development, distribution, and information dissemination

Earnest Elmo Calkins

- champion of advertising design

4 Important Aspects of the Marketing Process

- contributing to the marketing mix -developing and managing the brand -achieving effective market segmentation, differentiation, and positioning, -contributing to revenue and profit generation

Press Release

- covers the basic who, what, when ,where and why -shows the economic impact on sponsors, to help leverage their investment and attract future sponsors or the event

Competitive Threat

- dealers (especially since the advent of first department store chain and now mega-retailers like Walmart, Home Depot, and Target) can be given bogus cooperative advertising allowances from manufacturers

FTC Improvement Act (1975)

- expanded the authority of the commission by giving it the power to issue trade regulation

American Association of Advertising Agencies (AAAA)

- has no legal or binding power over its agency members, but it can apply pressure when its board feels that industry standards are not being upheld. -publishes guidelines for its members regarding various aspects of advertising messages Creative Code: code that outlines the responsibilities and social impact advertising can have and promotes high ethical standards of honesty and decency

Claude Hopkins

-Influential in promoting ads as "dramatic salesmanship

Digital Advertising Alliance (DAA)

- launched around self-regulatory principles for online behavioral advertising which formulated in 2009 -leading industry association applying consumer-friendly standards to online behavioral advertising across the Internet -operates as a true industry self-regulatory body in that it cannot mandate punishment for what it perceives as a violation of code of good practice

National Labeling and Education Act (NLEA)

- requires uniformity in the nutrition labeling of food products and establishes strict rules for claims about the nutritional attributes of food products

Corporate Advertising

--Advertising intended to establish a favorable attitude toward a company as a whole, not just toward a specific brand -typically uses major media to communicate a unique, brand-based message that is distinct from more product-specific brand building. -contributes to the development of an overall image for a firm without touting specific products or services -ex.) Apple, BP

Promoting Goodwill

--an image-building function of public relations.

National Advertising Review Board (NARB)

-A body formed by the advertising industry to oversee its practice -Demanded higher standards of honesty and disclosure from the advertising industry.

National Advertising Review Board (NARB)

-A body formed by the advertising industry to oversee its practice -operations arm of the Advetsiing Self-Regulator COunsil (ASRC) which establishes the policies and procedures for advertising industry self-regulation. -Complaints send to the BBB are forwarded to the NAD -After full review, of the complaint, the issue may be forwarded to the NARB and evaluated by a panel -NARB process states with a recommendation from the NAD that an advertising or promotional campaign complaint be fully evaluated -The NAD maintains a permanent professional staff that works to resolve complaints with the advertiser and its agency before the issue gets to the NARB. if no resolution is achieved, the complaint is appealed to the NARB, which appoints a panel agency representative, and one public representative. -First the NARB publicly identifies the advertiser, the complaint against the advertiser, and the panel's findings. Second, the case is forwarded to an appropriate government regulatory agency (usually the FTC)

Brand Loyalty

-A decision-making mode in which consumers repeatedly buy the same brand of a product as their choice to fulfill a specific need -Occurs when a consumer repeatedly purchases the same brand to the exclusion of competitors' brands. -This can result because of habit, because brand names are prominent in the consumer's memory, because of barely conscious associations with brand images, or because consumers have attached some fairly deep meanings to the brands they buy.

Phishing

-A form of email spam with which spammers try to entice Web users to enter personal information on fake websites that are forced to look like authentic sites such as a bank, the IRS, or other organizations that will get the email users' attention.

Action for Children's Television (ACT)

-A group formed during the 1970's to lobby the government to limit the amount and content of advertising directed at children.

Audience

-A group of individuals who may receive and interpret messages sent from advertisers through mass media

Industrial Revolution

-A major change in western society beginning in the mid-18th century and marked by a rapid change from an agricultural to an industrial economy -economic force that yielded the need for advertising -Beginning about 1750 in England, the revolution spread to North America and progressed slowly until the early 1800s, when the War of 1812 in the United States boosted domestic production -a basic influence in its emergence and growth in Western economies

Public Relations

-A marketing and management function that focuses on communications that foster goodwill between a firm and its many constituent groups -More about corporate communications and image management in times of noncrisis -to foster goodwill between a firm and its many constituent groups -groups include: customers, stockholders, suppliers, employees, government entities, citizen action groups, and the public. -A firm's ______ function seeks to highlight positive event like outstanding quarterly sales and profits (to stockholders) or noteworthy community service programs (to government entities and the general public) -one of the only tool that can provide damage control for bad publicity

Gross Domestic Product (GDP)

-A measure of the total value of goods and services produced within the economic system -Advertising is related to ______ in that it can contribute to level of overall consumer demand when it helps introduce new products, such as DVRs, smartphones, or alternative energy sources.

Brand

-A name, term, sign, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers -The most precious business asset owned by a firm. It allows a firm to communicate consistently and effectively with the market.

Advertising

-A paid, mass0mediated attempt to persuade -It is a complex communication process, a dynamic business process, and now a part of the social interaction process -It is a PAID communication by a company or organization that wants its information disseminated -If a communication is not paid for, its not advertising -Mass-mediated: it is delivered through a communication medium designed to reach more than one person -Must be attempting persuasion: the ad informs the consumer for some purpose, and that purpose is to get that consumer to lie the brand and eventually buy the product -Advertising can be persuasive communication not only about a products or service, but also about an idea, a person, or an entire organization

Target Audience

-A particular group of consumers singled out for an advertisement or advertising campaign -Singled out because the firm has discovered that these specific audiences members like the product category and might prefer their particular brand within that product category -always potential audiences because a company can never be sure that the message will actually get through to them as intended

Value

-A perception by consumers that a product or service provides satisfaction beyond the cost incurred to acquire the product or service -wanting every purchase to be a "good deal"

Great Depression

-A period (1929-1941 for the United States) in which the cast majority of people in many countries suffered from a severe economic decline. -changed the way people thought about a great many things: their government, business, money, spending, saving, credit, and , not coincidentally, advertising -say advertising as something more suspect, something that had tempted and seduced people into the excesses for which they were being punished -adopted a tough, no-frills advertising style

Public Relations Plan

-A plan that identifies the objectives and activities related to the public relations communications issued by a firm

Reactive Public Relations Strategies

-A public relations strategy that is dictated by influences outside the control of a company, focuses on problems to be solved rather than opportunities and requires defensive rather than offensive measures. -Relies heavily on IBP strategies, including free samples; dealer incentive programs; and beach parties featuring sound and light shows, DJs, and cocktail bars with free Cokes to win back the critical teen segment

Advertising Campaign

-A series of coordinated advertisements and other promotional efforts that communicate and single theme or idea -Successful campaigns can be developed around a single advertisement place in multiple media, or they can be made up of several different advertisements with a similar looks, feel, and message. -Requires a keen sense of the complex environments within which a company must communicate to different audiences

Influencer Marketing

-A series of personalized marketing techniques directed at individuals or groups who have the credibility and capability to drive positive word of mouth in a broader and salient segment of the population -Focuses on monitoring the digital environment and managing how consumers view a firm and its brands -New Era focuses on developing connector databases, findings the converstaion starters, tracking buzz online and off

Advertisement

-A specific message that an organization has places to persuade and audience.

Consumer-Generated Content (CGC)

-Advertisements for products produced either in part or completely by their end users. The recent explosion of consumer-generated content is largely due to the advent of content-sharing Internet websites (like YouTube) that essentially enable anyone to post and view video content.

Comparison Advertisements

-Advertisements in which an advertiser makes a comparison between the firm's brand and competitors' brands.

Celebrity Endorsements, Testimonials and Bloggers

-Advertisements that use an expert or celebrity as a spokesperson to endorse the use of a product or service -FTC guidelines state that the celebrity must be an actual user of the product, or the ad is considered deceptive

Con: Advertising Perpetuates Stereotypes

-Advertisers often portray people in advertisements that look like members of their target audience with the hope that people who see the ad will be more prone to relate to the ad and attend to its message. Critics charge that this practice yields a very negative effect- it perpetuates stereotypes

Subliminal Advertising

-Advertising alleged to work on a subconscious level to buy all sorts of things they didn't really need

Regional Advertising

-Advertising carried out by producers, wholesalers, distributors, and retailers that concentrate their efforts in a particular geographic region -EX.) Albertson's

Con: Advertising Creates Needs

-Advertising creates needs and makes people buy things they don't really need or even want. -Consumers are relatively easy to seduce into wanting the next shiny bauble offered by marketers

Local Advertising

-Advertising directed at an audience in a single trading area, either a city or state.

Pro: Advertising Fosters a Diverse and Affordable Mass Media

-Advertising fans argue that advertising is the best thing that can happen to an informed democracy - Within this sort of monetary support of the media, citizens have access to a variety of information and entertainment sources at low cost. -Another argument in support of advertising is that it provides invaluable exposure to issues. When noncommercial organizations use advertising, members of society receive information on important social and political issues. -Consumers are highly attentive to news about celebrities and ads featuring four widely known and talented celebrities who were lost to drug use was a powerful message indeed.

Advertising to Children

-Advertising in children promotes superficiality and creates values founded in material goods and consumption -Children are inexperienced consumers and easy prey for the sophisticated persuasions of advertisers, and as such, advertising influences children's demands for everything from toys to snack foods.

Prominent Tools Marketers use for IBP

-Advertising in mass media (television, radio, newspapers, magazines, billboards) -Sales Promotion (coupons, discounts, gift cards, contests, samples, trade shows) -Point-Of-Purchase (In-store advertising) -Direct Marketing (catalogs, telemarketing, email offers) -Personal Sellings -Internet Advertising (banners, pop-ups) -Social networks -Podcasting/Smartphone messaging -Event Sponsorships -Branded Entertainment (television programming, apps, video games,) "advertainment" -Outdoor signage -Billboard, transit, and aerial advertising -Public Relations -Influencer Marketing (peer-to-peer persuasion often through social networks) -Corporate Advertising

Corporate Advertising

-Advertising intended to establish a favorable attitude toward a company as a whole, not just toward a specific brand -ex.) Apple, BP

Advertising's Effect on Competition

-Advertising is alleged to stimulate competition and therefore motivate firms to strive for better products, better production methods, and other competitive advantages that ultimately benefit the economy as a whole. -Advertising can act as a barrier to entry into an industry; that is, a firm may have the capability to compete in an industry in every way except that the advertising dollars needed to compete are so great that the firm cannot afford to get into the business.

Pro: Advertising is Democratic Art

-Advertising is an anti-elitist, pro-democratic, widely accessible art.

World War II and the 1950's (1942-1960)

-Advertising often made direct reference to the war effort, linking the advertised brand with patriotism, and further helping to rehabilitate the tarnished image of advertising -Attitudes toward advertising were more negative, more skeptical, and the public largely assumed that it was very powerful -Ads show mythic nuclear families, well-behaved children, our "buddy" the atom, and uneasy faith in science, and rigid gender roles, while the rumblings of the sexual revolution of the 1960's were just audible.

The 1970's (1973-1980)

-Advertising retreated a bit from the creative revolution. -Ads took sexual sell a bit further, seemed a little less artistic, were a little more racially integrated, and used a bit more hard-sell -Social shifts of the decade were the second-wave of American feminism, the self-doubt of Western democracies, and a significant mass identity/authenticity question "Who am I; what is real?" -Advertising remained very white. In what is to this day an odd segregation, "specialty" agencies emerged for serving various ethnic groups.

Direct Response Advertising

-Advertising that asks the receiver of the message to act immediately -EX.) Call this toll free number! -Ex.) mail your $199.95 befor midnight tonight" -Ex.) click here to order now! -Used for products that consumers are familiar with, that do not require inspection at the point of purchase, and that are relatively low costs.

Advocacy Advertising

-Advertising that attempts to influence public opinion on important social, political, or environmental issues of concern to the sponsoring organization -directly relevant to the business operations of the organizations

Brand Advertising

-Advertising that communicates the specific features, values, and benefits of a particular brand offered for sale by a particular organisation -by contrast, the firms that have long-established corporate campaigns have designed them to generate favorable public opinion toward the corporation as a whole.

Cause-Related Advertising

-Advertising that identifies corporate sponsorship of philanthropic activities -Features a firm's affiliation with an important social or societal cause EX.) reducing overty, increasing literacy, conserving energy, protecting the environment, and curbing drug abuse, and takes place in part of the cause-related marketing efforts undertaken by a firm -GOAL: to enhance the image of the firm by associating it with social issues of importance to its constituents; this tend to work best when the firm confronts an issue that truly connects to is business

National Advertising

-Advertising that reaches all geographic area of one nation -The term typically used to describe the kind of advertising we see most often in the mass media in the domestic US market

Delayed Response Advertising

-Advertising that relies on imagery and message themes to emphasize the benefits and satisfying characteristics of a brand -Attempts to develops awareness and preference for a brand over time -Attempts to create brand awareness, reinforce the benefits of using a brand, develop a general liking for the brand, and create an image for a brand -most advertisements you see on tv

The "P.T. Barnum Ear" (1875-1918)

-Advertising was motivated by the need to sell the vastly increased supply of goods brought on by mass production and by the demands of an increasinhly urban peopulation seeking social identity throught branded products -Advertising made unmarked commodities into social symbols and indentity markers, and it allowed marketers to charge far more money for them -it was a period of rapid urbanization, massive immigration, labor unrests, and significant concerns about the abuses of capitalism

Peace, Love, and the Creative Revolution (1960-1972)

-Advertising was slow to respond to the massive social revolution going on all around it -Advertising still portraying women and other minorities in subservient roles -Creatives had a bigger say in management of their agencies, and the look and feel of the ads -Ads conveyed the sentiment, :ok, here's an ad, you know it's an ad, and so do we" -Advertising began to understand that it was all about hip, cool youth, and rebellion

The E-Revolution Begins (1993-2000)

-Advertising was struggling with all sorts of new possibilities and challenges. -Ads were getting edgier while e-ads were still trying to define themselves: find their best form -Problems with technology: incompatible standards, limited bandwidth, and disappointing measurement of both audience and return on investment. -The internet was fundamentally unable to yield precise measurements of return on investment in advertisements, too much variables, too much noise in the system, too many delayed effects, and too many uncertainties about who is really online

Pro: Advertisers Are Showing Much More Sensitivity

-Advocates of advertising counter with the argument that the stereotyping described above has become less prevalent and becoming part of the past. -Advertisers are realizing that a diverse world requires diverse in the social reality that ads represent and help construct

Corrective Advertising

-An FTC action requiring an advertiser to run additional advertisements to dispel false beliefs created by deceptive advertising -GOAL: to rectify erroneous beliefs created by deceptive advertising, but it hasn't always worked as intended.

Cease-and-Desist Order

-An FTC action requiring an advertiser to stop running an ad within 30 days so a hearing can be held to determine whether the advertising in question is deceptive or unfair

Affirmative Disclosure

-An FTC action requiring that important material determined to be absent from prior ads must be included in subsequent advertisements.

Advertising Substantiation Program

-An FTC program initiated in 1971 to ensure that advertisers make available to consumers supporting evidence for claims made in ads for their consumers. -strengthened in 1972 when the commission forwarded the notion of "reasonable basis" for the substantiation of advertising -Extension suggests not only that advertisers should substantiate their claims, but also that the substantiation should provide a reasonable basis for believing the claims are true

Brand Extension (variant)

-An adaptation of an existing brand to a new product area. Advertising helps companies implement brand extension. -EX.) Snickers Ice Cream Bar is an extension of the original snickers bar. Ex.) Crest Toothbrushes example -When brought to the market, advertising and IBP play a key role in attracting attention to the brand

Vertical Cooperative Advertising

-An advertising technique whereby a manufacturer and dealer (either a wholesaler or retailer) share the expense of advertising. -This technique is commonly used in regional or local markets where a manufacturer wants a brand to benefit from a special promotion run by local dealers

Public Relations Audit

-An internal study that identifies the characteristics of a firm or the aspects of the firm's activities that are positive and newsworthy,

Con: Advertising Promotes Materialism

-Argument that in societies characterized b heavy advertising, there is a tendency for conformity and status-seeking behavior, both of which are considered materialistic and superficial -Advertising creates wants and aspirations that are artificial​ and self-centered -results in an overemphasis on the production of private goods, to the detriment of public goods

Consumer Finance Protection Agency (CFPA)

-As proposed, the agency would have broad oversight over nearly every consumer financial products, including credit cards, debit cards, mortgages, money transfers​ and payday loans. It would make sure that the disclosure for financial products are clearly presented to consumers, and would protect against abuse and fraud. The CFPA would also be charged with ensuring that traditionally underserved consumers have access to the credit system and other financial services.

Giving Advice and Counsel

-Assisting managment in determining what (if any) position to take on public issues, preparing employees for public appearances, and helping management anticipate public relations are all part of the advice and counsel function of public relations

Physiological Needs

-Biological needs that require the satisfaction of hunger, thirst, and basic bodily functions

Possibilities for a Corporate Campaign

-Build the image of the firm among customers, shareholders, the financial community, and/or the general public -To boost employee morale or attract new employees -To Communicate an organization's views on social, political, or environmental issues -To better position the firm's products against competition, particularly foreign competition -To play a role in the overall advertising and IBP strategy of an organization, providing a platform for more brand-specific campaigns

Copyright Infrigement

-Can occur when a public relations effort uses written, recorded, or photographic material from others' work

Edwin L Artzt

-Chairman and CEO of Procter and Gamble

William T Esrey

-Chairman and CEO of Sprint -"going to hold ad agencies more closely accountable for results than ever before. That's just not just because we're going to be more demanding in getting value for our advertising dollars. It's also because we know the technology is there to measure advertising impact more precisely than you have done in the past."

The New World of Advertising and Integrated Brand Promotion

-Companies are trying to keep up with how and where consumers want to receive information about brands -The lines between information, entertainment, networking, and commercial messages are blurring -Companies are turning to brand entertainment. the internet influencer marketing (social media), and other innovative communication techniques to reach consumers and get their brand message integrates into consumers lifestyles

Advertising as a Business Process

-Consider the role advertising plays in the overall marketing and brand development programs in firms -Look at the types of advertising use by firms -Take a broader look at advertising by identifying the economic effects of the process

3 groups that regulate advertising in the truest sense

-Consumers -Industry organizations -Government bodies

How Advertising can help Create Flexibility

-Contributing to economics of scale -Helping create inelasticity (insensitivity)

Competitive Issues

-Corporate advertising -Comparison advertising -The use of monopoly power

Institutional Advertising

-Corporate advertising that takes place in the trade channel. This form of advertising is used most prominently be retailers -ex.) Nordstrom often features Clinique cosmetics -Main purpose:get the audience to shop at their store

Green Marketing

-Corporate efforts that embrace a cause or program in support of the environment. -Currently, a particular importance, as the public is becoming increasingly aware and concerned about they urgency of environmental issue -ex.) Shoe box made with 100% recyclable paper

Abrahamm Maslow

-Creator of the hierarchy of needs

Con: Advertising Wastes Resources and Raises the Standard of Living Only for Some

-Criticisms of advertising is that it represents an inefficient, wasteful process that does little more than "shuffling of existing total demand," rather than contributing to the expansion of total demand -Critics argue that brand differences are trivial and that the proliferation of brands does not older a greater variety of choice but rather a meaningless waste of resources and confusion and frustration for the consumer -Advertising is a tool of capitalism that only helps widen the gap between rich and poor, creating strife between social classes.

Con: Advertising Affects Programming

-Critics argue that advertisers who place ads in media have an unhealthy effect on shaping the content of information contained in the media. -Critics argue that these mass market programs lower the quality of television because cultural and educational programs, which draw smaller and more selective markets, are dropped in favor of mass market programs.

Con: Advertising is Superficial and Intrusive

-Critics argue that advertising does not provide good product information at all and that it is so pervasive and intrusive to daily life that it is impossible to escape -ads dont carry enough actual product information -Critics of advertising believe that ads should contain information on brands that relates strictly to functional features and performance results- things that can be measured and tested brand by brand -Advertisers argue in response that, in many instances, consumers are interested in more than a physical, tangible, product with performance features and purely functional value

Advertising Controversial Products

-Critics charge that tobacco and alcoholic beverage firms are targeting adolescents with advertising and with marking dangerous and addictive products appealing -Study shows that family, friends, and peer --not advertising-- are the promary influence on the use of tobacco and alcohol products

Chain of Needs

-Customer needs lead to products; new needs are created by the unintended side effects of modern times and new products; even newer products sole additional and even newer needs

The Great Recession

-December 2007 to June 2009 -had its impact on the advertising industry. -Many advertisers cut their ads budgets during this period -Many used the economy as a reason to invest more in branded entertainment and nontraditional advertising and brand promotion

Libel

-Defamation that occurs in print, and would relate to magazines, newspaper, direct mail, or Internet reports.

Pro: Advertising Only Reflects Society's Priorities

-Defenders of advertising argue that it did not create the American emphasis on materialism

Unfair Advertising

-Defined by Congress as "acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves and not outweighed by the countervailing benefits to consumers or competition" -This definition obligates the FTC to assess both the benefits and costs of advertising, and rules out reckless acts on the part of consumers, before a judgement can be rendered that an advertisers has been unfair

Brand Equity

-Developed by a firm that create and maintains positive associations with the brand in the mind of consumers -A set of brand assets linked to a brand, its name, and symbol -Even though it occurs over long period of time, short-term advertising activities are key to long-term success.

Global Advertising

-Developing and placing advertisements with a common theme and presentation in all markets around the world where the firm's brands are sold. -These are typically brands that are considered "citizens of the world" and whose manner of use does not carry tremendously by culture -Effective only when a brand and the message about that brand have a common appeal across diverse cultures

Mobile Marketing

-Directing Advertising and IBP campaigns to consumers' mobile devices: smartphones, iPods, and e-readers -Digital and interactive techniques can "funnel" consumers to retail sites and online shopping and purchasing

Preparing Internal Communications

-Disseminating information and correcting misinformation within a firm can reduce the impact of rumors and increase employee morale

CAN SPAM ACT

-Does not outlaw all unsolicited email, but rather targets fraudulent, deceptive, and pornographic messages, which is estimated to make up about 2/3rds of all commercial unsolicited email

Pro: The Economic Effects of Advertising Lower the Cost of product

-Due to the economies of scale (it costs less to produce products in large quantities), partly created by advertising's contributions to stimulating demand, products cost less than if there were no advertising at all. -Consumers have a greater variety of choice in products and services because advertising increases the probability of success that new products will succeed -The pressures of competition and the desire to have fresh, marketable brands motivate firms to produce improved products and brands and introduce lower-priced brands -The speed and reach of the advertising process aids in the diffusion of innovations. New discoveries can be delivered​ to a large percentage of the marketplace very quickly.

Corporate Image Advertising

-Efforts focus on enhancing the overall image of a firm among important constituents-typically customers, employees, and the general public

Branded Entertainment

-Embeddings one's brand or brand icons as part of any entertainment property (EX> a sporting event) in an effort to impress and connect with consumers in a unique and compelling way. -gets more first amendment protection than ordinary advertising does. -Important distinctions, since regulation and legal fights surrounding ads represent a large cost of doing business.

The Council Of Better Business Bureaus

-Establish a Children's Advertising Review Unit and has issued a set of guidelines for advertising directed at children. -These guidelines emphasize that advertisers should be sensitive to the level of knowledge and sophistication of children as decision-makers

Consumers Union

-Established in 1936 -An expert, independent, nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves.

Thomas J Burrell

-Founded Burrell Advertising -African American agency -Positive realism: people working productively; people engaging in family life; people being well-rounded

Bryson Lewis

-Founded Uniworld

The Center for Digital Democracy (CDD)

-Founded in 2001 and focuses on research,public education, and advocacy designed to protect consumers in the digital age

John H Johnson

-Founder of Ebony magazine -The man who made the black American experience in publishing, marketing, and advertising possible

Francis W Ayer

-Founder of N.W. Ayer

Albert Lasker

-Head of Lord and Thomas in Chicago -Possibly the most influential agency of its day

Reception

-History, personality, imagined advertiser, and purpose forming context of reception -Individual audience members understand of the advertisement -Meanings formed: common and individual

Word-Of-Mouth

-In marketing parlance, this is the process of encouraging consumers to talk to each other about a firm's brand or marketing activities

The Era of Industrialization (1800-1875)

-In practice, users of advettising in th emid- to late 1800s were trying to culivate markets for growing production in the context of an increasing urban population -Advertisers could outright lie, decieve, and otherwise chear with little or no threat of being punished by government

The Role of Advertising in Brand Management

-Information and Persuasion -Introduction of New Brand of Brand Extensions -Building and Maintaining Brand Loyalty among Consumers -Creating an Image and Meaning for a Brand -Building and Maintaining Brand Loyalty within the Trade

What are Advertising And Integrated Brand Promotion?

-It's a business, an art form, an institution, and a cultural phenomenon -CEO: advertising is an essential marketing tool that helps create brand awareness and brand loyalty -Small Business Owner: is a way to bring people into the store -Art Director: advertising is the creative expression of a concept -Media Planner: is the way a firm uses the media to communicate to current and potential customers -Website Manager: it's a way to drive traffic to the URL

Premiums

-Items that feature the logo of a sponsor and that are offered free, or at a reduced price, with the purchase of another item. - the main area of regulation has to do with requiring marketers to state their fair retail value of the item offered as a premium

Leo Burnett

-Located in Chicago

Ogilvy & Mather

-Located in New Yok

Doyle Dane Bernback

-Located in New York

Wells Rich and Green

-Located in New York

Trade Journals

-Magazines published specifically for member of a trade that carry highly technical articles

Deception

-Making false or misleading statements in an advertisement -EX.) "Small Print" or the appeal of a "Free giftf"

Interactive Media

-Media that allow consumers to call up games, entertainment, shopping opportunities, and educational programs on a subscription or pay-per-view basis. -allows direct measurement of ad exposure and impact, quickly revealing those ads that perform well and those that do not -Agency will be held accountable for results

3 Divisions of the BBB

-Merchandise, financial, and solicitations -investigate the advertising and selling practices of firms in their areas -The BB tried to avert problem associated with advertising by counseling new businesses and providing information to advertisers and agencies regarding legislation, potential problem areas, and industry standards.

4 Violations of Regulations that Marketers must avoid

-Misrepresentations about the value of the prizes being offered -Failure to provide complete disclosure about the conditions necessary to win -Failure to disclose the conditions necessary to obtain a prize -Failure to ensure that a contestant​ or sweepstakes is not classified as a lottery, which is considered gambling-- a contest or sweepstakes is a lottery if a prize is offered based on chance and the contestant has to give up something of value in order to play

Ethics

-Moral standards and principles against which behavior is judged. -honesty, integrity, fairness, and sensitivity are all included in a broad definition -3 aspects: truth in advertising, advertising in children, and advertising controversial products.

Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)

-Most direct influence has been on regulation of advertising for alcoholic beverages. This agency was responsible for putting warning labels on alcoholic beverage advertising and banning active athletes as celebrities in beer ads​. IT has the power to determine what constitutes misleading advertising in these product areas

John E Powers

-Most important copywriter of the period

Typical Categories of information that make for Good Story

-New products launches New scientific discoveries New personnel New corporate facilities -Innovative corporate practices, such as energy-saving programs or employees benefit programs -Annual shareholder meetings -Charitable and community service activities

Dailies

-Newspapers published every weekday; also, television ad production, the scenes shot during the previous day's production

Pro: Advertising is a Source of Fulfillment and Liberation

-On the other end of the spectrum, some argue that consumption that advertising glorifies is actually quite good for society. -Has helped bring us a :democratization: of goods. Observers argue that there is a liberating quality to advertising and consumption that should be appreciated an encouraged.

Professionals

-One of the five types of audiences for advertising; defined as doctors, lawyers, accountants, teachers, or any other professionals who require special training or certifications -Advertising directed to this group typically highlights products and services uniquely designed to serve their more narrowly designed needs

Government Officials and Employees

-One of the five types of audiences for advertising; includes employees of government organizations, such as schools and road maintenance operations, at the federal, state, and local levels -Advertising to this target audience is dominated by direct mail, catalogs, personal sellings, and web advertising

Members of a Trade Channel

-One of the five types of audiences for advertising; the retailers, wholesalers, and distributors targeted by producers of both household and business goods and services -Target audience for producers of both household and business goods and services -Personal selling is the promotional tool mostly used because the target audience represents a relatively small, easily identifiable group that can be reached with personal selling.

Members of Business Organizations

-One of the fives types of audiences for advertising; the focus of advertising for firms that produce business and industrial goods -EX.) office equipment, production machinery, supplies, and software -advertising is used to create awareness and a favorable attitude among potential buyers

Slander

-Oral defamation that in the context of promotion would occur during television or radio broadcast of an event involving a company and its employees

Branding

-The strategy of developing brand names so that manufacturers can focus consumer attention on a clearly identified item -Ivory, Coca-cola, Busweiser, Maxwell House were amoung the first consumers products to show up on shopkeepers' shelves

Two steps to help form Reactive PR strategies

-PR Audit: information provided by the audit gives a firm what it needs to issue public statements based on current and accurate data -Identification of Vulnerabilities: recognize areas where the firm has weakness in its operations or products that can negatively affect its relationships with important constituents -be prepared to discuss issues in a broad range of forums with many different constituents

Message Content

-PR messages should be researched and developed in much the same way tat advertising messages are researched and development

Children's Television Act

-Passed in 1990 -This regulation restricts advertising on children's programming to 10.5 minutes per hour on weekends, and 12 minutes per hour on weekdays

Promoting a product or Service

-Press release, events, or brand "news" that increase public awareness, or brand "news" that increase public awareness of a firm's brands can be pursued through public relations

Robinson-Patman Act (1936)

-Prohibits firms from providing phantom cooperative advertising allowances as a way to court important -- requires marketers to offer similar customers (particularly wholesalers and retailers) similar prices on similar merhcandise and quantities. -means that a marketer cannot use special allowances as a way to discount the price to highly attractive customers

6 Primary objectives of Public Relations

-Promoting Goodwill -Promoting a product or Service -Preparing Internal Communications -Counteracting Negative Publicity -Lobbying -Giving Advice and Counsel

Accommodation/Negotiation

-Receivers of the communication must accommodate their perceived multiple meanings and personal agendas and then negotiate a meaning of the ad according to their individual life experiences and value systems

Securities and Exchange Commission (SEC)

-Regulates the advertising of securities and the disclosure of information in annual reports.

Children's Online Privacy Protection Act (COPPA)

-Regulates websites directed at children under 13 -Limits the collection of information from preteen children

U.S Postal Services (USPS)

-Responsible for regulating direct mail advertising and prohibiting lotteries, fraud, and misrepresentation. It can also regulate and impose fines for materials seemed to be obscene.

Repositioning

-Returning to the process of segmenting, targeting, and positioning a product or service to arrive at a revised positioning strategy -Occurs when a firm believes that a brand needs to be revived or updated to address changing market or competitive conditions -How it is accomplished: by offering consumers new and distinctive features or images of the brand -ex.) Brand logo can have updates, packaging can be changed,

Consumer Protection Legislation

-Seeks to increase the ability of consumers to make more informed product comparisons -Includes: Fair Packaging and Labeling Act (1966), Fair Credit Reporting Act (1970), the Truth in Lending Act (1969), and the Fair Credit Reporting Act (1970)

Components of a PR Plan

-Situation Analysis -Program objectives -Program rationale -Communications Vechicles -Message Content

Communications Vehicles

-Specifies precisely what means will be used to implement the PR plan. -Will likely be discussion of precisely how press releases, interviews, and company newsletter and the WEB can be used

Inelasticity of Demand

-Strong loyalty to a product, resulting in consumers being less sensitive to price increases -When consumers are brand loyal, they are generally less sensitive to price increases for the brand. -Advertising contributes by persuading and reminding consumers of the satisfactions and values related to a brand and why they want to choose that brand over competitors' brands.

Situation Analysis

-Summarizes the information obtained from the public relations audit

Pro: Advertising Informs

-Supporters of Advertising argue that advertising educates consumers, equipping them with the information they need to make informed purchase decisions -Advertising reduces product search time: the amount of time an individual spends to search for desired products and services is reduced because of advertising, access to Web, and mobile messages from advertisers -Advertising communicated about social issues

How to Generate Buzz

-Talkers -Topics -Toos -Taking Part -Tracking

Lobbying

-The Public relation function can assist a firm in dealing with government officials and pending legislation -Industry groups also maintain active and aggressive lobbying efforts at both the state and federal levels

Economies of Scale

-The ability of a firm to lower the cost of each item produced because of high-volume production -When an organization creates large-scale demand for its brand, the quantity of product produced is increased and __________ lead to lower unit production costs. -Advertising contributes to demand stimulation by communicating to the market about the features and availability of a brand.

Self-Regulation

-The advertising industry's attempt to police itself. -Supporters say it is a shining example of how unnecessary govern,ent intervention is, whereas critics point to it as a joke, an elaborate shell game. -Purpose: to evaluate the content and quality of promotional activities specific to their industries

Counteracting Negative Publicity

-The attempt here is not to cover up negative events but rather to prevent the negative publicity from damaging the image of a firm and its brands.

Marketing Mix

-The blend of the four responsibilities of marketing--conception, pricing, promotion, and distribution-- used for a particular idea, product, or service. -"Mix" is used to describe the blend of strategic emphasis on the product versus its price versus its distribution when a brand is marketed to consumers

Client/Sponsor

-The company or organization that pays for advertising

External Position

-The competitive niche and brand persues -a firm tries to create a distinctive competitive position based on design features, pricing, distribution, or promotion or advertising strategies -Effective: the firm carefully segments the market, develops brand features and values that are distinctive from the competition, an follows through with advertising and IBP messages that highlight the extensions. -EX>) BMW vs Chevy

Primary Demand

-The demand for an entire product category -Advertising only capable of stimulating demand for a brand within a product category

The Preindustrialization (Pre 1800)

-The first newspaper advertisement is said to have appeared in 1704 in the BOSTON NEWS LETER -Pre 1800 -the PENNSULVANIA GAZETTE printed advertisements and was the first newspaper to separate ads with blank lines, which made the ads both easier to read and more prominent and was the first newpaper to use illustrations in advertisements

Federal Trade Commission (FTC)

-The government regulatory agency that has the most power and is most directly involved in overseeing the advertising industry

Positioning

-The marketer's attempt to give a brand a certain meaning relative to its competitors -the process of designing a brand so that it can occupy a distinct and valued place in the target consumer's mind relative to order brands. -Importance: consumers create a perceptual space in their minds for all the brands they might consider purchasing.

Household Consumers

-The most conspicuous of the five types of audiences for advertising; most mass media advertising is directed at them

Love and Belonging Needs

-The need for affiliation and affection. A person will strive for both the giving and receiving of love

Esteem Needs

-The need for recognition, status, and prestige. In addition to the respect of others, there is a need and desire for self-respect

Safety Needs

-The need to provide shelter and protection for the body and to maintain a comfortable existence

Internal Position

-The niche a brand achieves with regard to the other similar brands a firm's market -Effective: developing vastly different products within the firm's own product line Ex.) Ben and Jerry's Ice cream has a variety of ice cream flavors -creating advertising messages that appeal to different consumer needs and desires when there are few conspicuously tangible differences.

Rise of Capitalism

-The organizations compete for resources, in a free market environment. -Part of the competition for resources involves stimulating demand for the organization's goods or services

International Advertising

-The preparation and placement of advertising in different national and cultural markets for the same brand outside their home market. -Each international market may requires unique advertising due to product adaptations or message appeals tailored specifically for that market -Different ads for the same brand are tailored for each market

Market Segmentation

-The process of breaking down a large, widely varied (heterogeneous) market into submarkets/segments that are more similar than dissimilar in term of consumer characteristics -Strategy: the facts that consumers differ in their wants and that the wants of one person can differ under various circumstances. -Ex.) automobiles are divided into submarkets: large or small, luxury or economy, sedan or SUV or Mini-van Ex.) Bayor has 4 different brands of Asprin -Advertising's role: to develop messages that appeal to the needs and desires of different segments and then to transmit those messages via appropriate media -Segments are more fragmented and consumers are more mindful of exactly what they wants demanding the marketers interests and desires.

Marketing

-The process of conceiving, pricing, promoting, and distributing ideas, good, and services to create exchanges that benefit consumers and organizations

Viral Marketing

-The process of consumers marketing to consumers over the Internet through word of mouth transmitted through the web, social media, emails and electronic mailing lists. -occurs when word of mouth in digital media reaches high levels of activity. -Firms are anxious to encourage positive word of mouth among consumers, which is much easier in this era of social media

Differentiation

-The process of creating a perceived difference, in the mind of the consumer, between an organization's brand and the competition -The perceived differences can be tangible differences, or they ay be based on image or style factors. -Issue: consumers perceive a difference between brands -If a firm's brand is not perceived as distinctive and attractive by consumers, then consumers will have no reason to choose that brand over one from the competition or to pay higher prices for the "better" or "more meaningingful brand -In order for advertising to help create a difference in the mind of the consumer between a brand and its competitors' brands, the ad may emphasize performance features, or it may create a distinctive image for the brand. Goal: To develop a message that is different and unmistakably linked to a company's brand

Behavioral Targeting

-The process of database development made possible by online tracking markers that advertisers place on a Web surfer's hard drive to track that person's online surfing and shopping behavior -Google, Apple, etc, generate revenue somehow from these services, so they sell our online behavior patterns to advertisers.

Integrated Marketing Communications (IMC)

-The process of using promotional tools in a unified way so that synergistic communications effect is created -Want to build brand awareness, identity, and preference through advertising and promotion -Emphasizes the communication effort per se and the need for coordinated and synergistic messages (emphasize on brand and not just the communication)

The Rise of Advertising

-The rise of Capitalism -The Industrial Revolution -The Emergence of Modern Branding -The Rise of Modern Mass Media

Cooperate Advertising (Co-Op Advertising)

-The sharing of advertising expenses between national advertisers and local merchants. -Under special circumstances, national companies will share advertising expenses in a market with local dealers to achieve specific advertising objectives

The Rise of Modern Mass Media

-The telegraph not only allowed nations to benefit from the inherent efficiencies or rapid communication but also did a great deal to engender a sense of national identity. -Many new magazines designed for larger and less socially privileged audiences made magazines a viable mass advertising medium -Without this, there would be no advertising or national brands

Puffery

-The use of absolute superlative like "Number One" and "Best in the World" in advertisements -The courts have long held that superlatives are understood by consumers as simply the exaggerated commercial language of advertising and are interpreted by consumers as such

Appropriation

-The use of pictures or images owned by someone else without permission

Integrated brand promotion (IBP)

-The use of various promotional tools, including advertising, in a coordinated manner to build and maintain brand awareness, identity, and preference -Is a process that is complicated and needs to be managed in an integrated fashion -IBP used a wide range of promotional tools that have to be evaluated and schedules. -Creates exposure for the brand -highlights that all of these tools need to work together, they need to be integrated to create a consistent and compelling impression of the brand -Retains the emphasis on coordination and synergy of communication but goes beyond the parameters of IMC

Three elements as essential in declaring an ad deceptive

-There must be a representation, omission, or practice that is likely to mislead the consumer -This representation, omission, or practice must be judged from the perspective of a consumer acting reasonably in the circumstance - The representation, omission, or practice must be a "material" one. The basic question is whether the act or the practice likely to affect the consumer's conduct or decision with regard to the product or service. If so, the practices material and therefore consumer harm is likely because consumers are likely to have chosen differently if not for the deception

Self-Actualization Needs

-This is the highest of all the need states and is achieved by only small percentage of people, according to Maslow. The individual strives for maximum fulfillment of individual capabilities

Publicity

-Unpaid for media exposure about a firm's activities or its products and services -PR function seeks to monitor and manage publicity but obviously can never actually control what the media choose to say or report.

Spam

-Unsolicited bulk email sent to a large umber (often millions) of personal and commercial email addresses

Primary Demand Stimulation

-Using advertising to create demand for a product category in general -a company would try to create demand for an entire product category. -Attempts to stimulate demand for an entire product category for educating the consumer about the values and benefits of the product category as a whole rather than the values and benefits of an individual brand. -Challenging and costly, and research evidence suggests that it is likely to have an impact only for totally new products on the market-- not brand extensions or products on the market-- have been around a long time (known as mature products)

Selective Demand Stimulation

-Using advertising to stimulate demand for a specific brand within a product category -The true power of advertising realized when it functions to stimulate demand for a particular company's brand -Purpose: to point out a brand' unique benefits compared to the competition

Advertising's Effect on Value

-Value can be added to the consumption experience by advertising

Social Meaning

-What a product or service means in a societal context -Advertising is an essential way in which the image of a brand is developed, it contributes directly to consumers' perception of the value of the brand.

Symbolic Value

-What a product or services means to consumers in a nonliteral way -EX.) Branded clothing (Lululemon, Michael Kohrs, Puma, or The north face_ can symbolize on self-concept for some consumers.

Defamation

-When a communication occurs that damages the reputation of an individual because the information was untrue.

Production

-Where the content of a mass communication is created. -Interaction of advertiser, imagined audience, agency, media, and other social institutions that results in production of advertising content

Mass Communication

-a process where people, institutions, and messages interact. -Two major components: Production and reception

DO NOT CALL LAW

-allows consumers to sign up for a DO NOT CALL registry -you can still get calls from : -Charites, politicians, pollsters, and market researchers -Companies you do business with -Companies that have sold you something or delivered something to you within the previous 18 months -Business you've contacte in the past 3 months -Companies that obtain your permission to call you

Principle of Limited Liability

-an economic principle that allows an investor to risk only his or her shares of a corporation, rather than personal wealth, in business ventures. -restricts an incestor's risk in a business venture to only his or her shares in a corporation rather than all personal assets, of large amounts of capital to finance the Industrial Revolution

John E Kennedy

-creator of "reasons why" advertising

Program Rationale

-critical to identify the role the PR program will play relative to all the other communication efforts-- particularly advertising and community involvement being undertaken by a firm

Three basic areas of Advertising regulation:

-deception and unfairness in advertising -competitive issues -advertising to children

Wheeler-Lea Amendments to the Federal Trade Commissions Act

-declared "deceptive acts of commerce" to be against the lae; this was interpreted to include advertising -1938 -Now, individual advertisers could be help liable for deceptive practices

Consumer Finance Protection Bureau (CFPB)

-established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, in part, as a result of the financial crisis​ in 2009 caused by lack of banking regulations

Consumer Federation of America (CFA)

-founded in 1968 -includes more than 300 national, state, and local consumers groups and labor unions as affiliate members -Goals: are to encourage the creation of consumer organizations​, provide services to consumer groups, and act as a voice for consumers at the state and federal legislave level.

Raido

-had the ability to create a sense of community in which people thousands of miles apart listened to and became involved with their facorite radio soap opera, so maned in reference to the soap sponsors of these shows

Perceptual Space

-how one brand is seen on any number of dimensions--such as quality, taste, price, or social display value--in relation to those same dimensions in other brands

Direct Marketing Association (DMA)

-is active in promotion ethical behavior and standards amount its members -in 1971, the association established the Mail Preference Services, which allow consumers to have their names removed from most direct mail lists

Advertising has something in Common

-it leverages exixsting anxiety -it seeks to resolve culturals contradictions -it seeks to calm the individual consumer -reinforces a marketer-friendly vision of society

Con: Advertising is Often Offensive

-often offensive and the appeals are in poor taste -Moreover, some would say that the trend in American advertising is to be rude, crude, and sometimes lewd, as advertisers struggle to grab the attention of consumers who have learned to tune out the avalanche of advertising messages they are confronted with each day -Critics decry the ad as trivializing suicide- an acute problem among young people, who are also the target market for this ad.

National Association of Broadcasters (NAB)

-policing arms known as the Code Authority, which implements and interprets separate radio and television codes.

Telephone Consumer Fraud and Abuse Prevention Act of 1994

-requires telemarketers to state their name, the purpose of the call, and the commpant they work for. -The act prohibits telemarketers from calling before 8 AM and after 9 PM and they cannot call the same customer more than once every three months

The Designer Era (1980-1992)

-saw the explosion of designer goods: everything became about public consumption status and their markers -Openly promote consumption, but in a conservative way, wrapped up in "traditional American values" -About designer labels, social class consciousness, and having stuff -Television advertising was influenced by the rapid-cut editing style of MTV: rapid cuts with a very self-conscious character

Program Objectives

-should be set for both short-term and long-term opportunities -can be diverse and complex as advertising -Factors such as the credibility of product performance and the structure of the firm's research and development efforts

Monopoly Power

-the ability of a firm to make it impossible for rival firms to compete with it, either through advertising or in some other way -This problem arises in the context of mergers and acquisitions

Peer-to-Peer Programs

-the idea is to give influencers something fun or provocative to talk about -refer to efforts to stimulate word of mouth involving key targets that might otherwise be impervious to more traditional advertising and promotional tools.

Buzz Marketing

-the process of creating events or experiences that yield conversations that include the brand or product advertisers are trying to sell -occurs when a firm's marketing activities gain widespread media coverage and become a source of conversation in households, between friends, or at work

Advertising's Effect on Prices

-there is no consistent and predictable relationship between advertising spending and sales-- it all depends on the products category, competition, size of market, and complexity of the message.

Feature Stories

-typically more controllable, detailed, and lengthy -offers a single journalist the opportunity to do a fairly lengthy piece with exclusives rights to the information