C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Contemporary Advertising and Integrated Marketing Communications 15th Edition Arens Solutions Manual Download:http://testbanklive.com/download/contemporary-advertising-andintegrated-marketing-communications-15th-edition-arens-solutions-manual/ Contemporary Advertising and Integrated Marketing Communications 15th Edition Arens Test Bank Download:http://testbanklive.com/download/contemporary-advertising-andintegrated-marketing-communications-15th-edition-arens-test-bank/
CHAPTER TWO THE BIG PICTURE: THE EVOLUTION OF ADVERTISING AND IMC At a macr o le vel , advertising a nd IMC pla y a l arge role in t he ec onomic vit ali ty of a nat ion. Both consumer s and sel le rs gain from the informat ion a bout br ands c onta ine d in I MC mess ages . T o see how, this c hapte r intr oduces the bas ic pri ncipl es of fre e -mar ket econo mic s; the funct ions and e ffect s of advert ising in a fre e economy; t he evol ution of adver ti sing as a n econ omic tool ; and a dvert ising’s overa ll impact on soci ety. The cha pter will hel p you under sta nd why the practi ce of advert ising has changed an d how it may change even more in the futur e. Learning Obje ct ives Afte r s tudying thi s chapter , your student s will be abl e t o: LO2- 1 Explai n the rol e of co mpet it ion in free - mar ket economic s. LO2- 2 Discus s the functions advertising pe rforms in a free mar ket . LO2- 3 Underst and the importanc e of branding, includi ng the benefit s that st rong bra nds offer companie s LO2- 4 Ide nti fy import ant mil est ones in t he hist ory of adver ti sing. LO2- 5 Discus s how the rol e of adverti sing has changed i n recent years. LO2- 6 Explor e t he impa ct of advertising o n society yester day, toda y and tomorr ow.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Teachi ng Tips and Strat egi es Using the Chapter O pening Vignett e i n the C lassr oom I l ike t o emphasi ze the youth of adver ti sing a s a professi on, and ask s tude nts why t hat is so. The ear liest ads for Coca Cola da te back t o the ninetee nth c entur y, which is likely to seem ver y ancie nt to st udents. Yet eve n the oldest Coke ads a re just a bi t over a cent ury old. The professi ons of medi ci ne, la w, and fina nce date back t housands of years . Prompti ng st udent s in thi s fashion will like ly lead them to c onsi der the importanc e of severa l ninet eenth a nd twent ieth cen tur y develop ment s for the cr eation of the moder n ad i ndustry. These i nclude indus trialization, lit era cy, urba nizati on, incr ease s in t he sta ndard of li ving and weal th
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
(e specially in the U.S. and Europe ), and the development of ne w mass me dia such a s radio, te le visi on, and the Inte rnet. Shaping the dis cussion in t his way will lead student s to a deepe r appr eciation of the rol e that advert ising pla ys i n modern li fe. Today’s students, belie ve i t or not , wer e not even born when ―New Coke ‖ was i ntr oduced. I al wa ys gi ve a br ie f account of the New Coke fiasc o as a way of different ia ti ng the product (whic h consumer s pr eferre d in blind ta ste tests) from the bra nd (whic h consumer s re jected hands down to t he cla ssic for mula ). For ba ckgr ound on the discussion, see this site: htt p:// www.msnbc. msn.c om/i d/7209828/ . I find it also c an be qui te humbli ng to know tha t the one of today’ s most e ffect ive and powerful mar ket ers can sti ll make a ter ri ble mist ake. I f nothi ng els e, the New Coke st ory helps st udents under sta nd the di ffer ence between product at tributes (such as blind ta ste or container s) a nd a bra nd. Ot her T ips and Str ate gie s This cha pter wil l explain to st udents the evol ution of advert ising. It is imp ort ant for students to unde rstand tha t although advertising started i n the 1700s, it did not re ally become an ever yday occurrence until the 1800s in A mer ic a. Many pe ople t hat I ha ve disc usse d this wi th bel ie ve i t is because Amer icans were as not focused on cons umptio n the n as t hey are now. A great way to st art the cl ass is t o go to Advertising Age’s timel ine websit e ( www.adage.com/c ent ury/ ti mel ine/index.html ). Thi s site ha s an exce llent pictorial ti mel i ne of how advert ising st arted in A mer ic a. I recommend going over the t imel ine with s tude nts. Student s seem to rea lly get inte rested in t his informat ion. The t imel ine begins wi th the first ad was cr eated in A mer ic a and br ings the st udents up to dat e on mode rn a ds. Ther e i s also a ti mel ine in the st udent t ext. I l ike t o delve i nto the last ce ntury of advertis ing with s tude nts. As you know, in t he 1900s ads wer e very wordy. Back then, people read a lot more tha n they do today. This i s because ra dios a nd telev ision sets had not yet become st andar d possessions. Newspapers a nd magaz ine s were consumer s’ ways of cat chi ng up on the latest news. Advertiser s used t o make ads l ook like newspaper ar ticles to help se ll product s or ser vices.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
One neat fact to share with s tude nts is t hat Coca-Cola hel ped to st andar dize t he Amer ic an Santa Cla us in t he 1930s thr ough adver tising. Before t he sta ndar dizati on, I have been t old t hat Santa was usuall y called St. Nichol as, and was pl ump in ce rtain countri es and s kinny in othe rs . Cok e was tr ying to inc rease t he mar ket shar e of its product . They hel ped cre ate the Santa we have today (think Chri stmas Coke) . The re d and whit e colors were us ed t o mir ror
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
the re d and white Coke logo. That is the power of a wel l - known brand. One websit e to s how stude nts is htt p:// www.thecoca -col acompany.com/he ri ta ge/cokel ore _santa.html , which expl ai ns the stor y of Santa in more det ail. You can find onl ine copie s of the ads and a great deal of background i nformat ion a bout t he spot s at this gre at Web si te : htt p:// memory.loc.gov/amme m/c cmpht ml/ col ahome.ht ml . There is a wealth of infor mat ion a bout how such gr eat spots as t he famous ―Hil lsi de si nger s‖ ad were de vel oped. I s har e with stude nts how ra dio a nd te le visi on changed a dvertis ing forever. Wit h the adventof radiocametheliveradiocommer ci al. Now, inst ead of just reading about a pr oductorservice, peoplecouldhearcele bri ty spo kespeople on t he ra dio. Radio ads continue to t his day. I r ecommen d going over the a dvent of tel evi sion and how consumer s coul d, for the first t ime, act uall y hear a nd see a produc t or service on tel evisi on. This reall y hel ped to c hange a dver tising, and t he resulting television commerci al s have he lped t o sell bil lions of dolla rs of produc ts through the years. Tele visi on adver tising has ha d its ups and downs in t he last c ouple of deca des. Re mind st udent s that t he advent of televisi on al low ed many cons umer s, f or t he first time, t o act uall y hear a nd see a produc t or service. Thi s reall y helpe d to change adver tising, and the re sulting te levisi on commer ci al s have hel ped to sell bil lions of dollar s of product s through the year s. I al so tr y to en courage st udents to see the chal le nge faced by peopl e working i n agenc ies as they str uggled to dis cover e ffect ive ways t o write and pr oduce for ne w me dia . This poi nt can be a mpli fi ed by showing earl y commer ci al s fro m the 1950s and cont rasti ng the m with mo re current example s (I contr ast old Coca Cola ads wit h their newer ve rsions) . Resources: htt p:// www.adage.com/c ent ury/t imel ine /index.html ;; per sonal conversations wit h Dr. To m Po wers Web Resources f or Enhancing your Lecture s:
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Advert ising Age Histor ical Timel ine
www.adage. com/c ent ury/ ti mel ine/index.html
Coke Ads htt p:// me mo ry.l oc.gov/amme m/c c mphtml/ col aho me.ht ml Ads of the Worl d htt p:// adsoftheworl d.com AdRant s: A bl og htt p:// www.adrant s.com about adver tising
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Bill Bernbach htt p:// adage.com/c ent ury/ people 001.html Ad*Acce ss: John W. Hart ht tp://scri ptori um.li b.duke.edu/ adaccess man Collec tion AdFli p: His tori cal print ad ar chi ve htt p:// www.adfli p.com/i ndex.php
LECTURE OUTLINE Por tfoli o Rev iew: T he Mo dern His tory o f Advertisin g
Ethical Issue: Ethi cal Dile mma or Ethi cal Lapse ? My IMC Campaign 2 : Tools for Teamwor k AD LAB 2 – A Wh at Kills Bu gs Dead?
People behind the Ads : Wil li am Ber nbach
I. Vignett e: The Coca - Cola Stor y The Coca- Cola Compan y has a pproached advertising i n many differ ent ways si nce its beginni ng in the late ni net eenth c entury. Both Coke’s i mage a nd re cipe have c hanged with t he ti mes, ne ar ly bre aki ng the company in t he 1980s, and yet it remai ns t he worl d’s favori te car bonate d bever age today. II. Economic s: The Fu nct ions of Adver ti sing a nd IMC in Fre e Market s A. Princ iple s of Free - Market Economic s A mar ket econo my is c har acterized by four a ssumpti ons: 1. Sel f- interest—People and firms pur s ue the ir own goals . Open compet it ion bet ween self - intere ste d buyer s nat urally leads t o gre ater pr oduct avail abilit y at more compe ti tive pric es. 2. Comple te informat ion —Buyers mak e bet ter decisions when they have mo re
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A d v e r t i s i n g informat ion a bout t he products t hey can
c hoose from. 3. Many buyers and sel lers—Having many seller s ensur es that if one doesnot meetcustomerneeds, anothe r will capit ali ze on the si tuationbyproducinga better product .
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
4. Absence of exter nali ties (social cos ts)—So met ime s the sale or consumpti on produc ts may bene fit or har m othe r pe ople who are not invol ved i n the tr ansaction and didn’t pay for the pr oduct . But it may al so cont ri bute signi ficantl y to hea lth proble ms and c li mat e cha nge thr ough incr eases in air poll ution a nd car bon emiss ions. In these cases, gover nment may use taxa ti on and/ or regulation to compensat e for or e limina te the externaliti es. B. Functi ons and Effects of Adver ti sing in a Free Economy 1. For a c hronology of the evoluti on of the Coca - Cola br and and company, se e Exhibi t 2 –1. 2. Ide ntify product s and different ia te them fro m ot her s - a funct ion of bra nding 3. Co mmunic at e i nformat ion a bout t he produc t, it s featur es, a nd it s location of sal e 4. Induc e customer s to t ry new produc ts and to suggest r euse 5. Sti mula te the di stribution of a product 6. Inc rease pr oduct use 7. Build val ue, bra nd pre fere nce, a nd loyal ty 8. To lower the overall cost of sales C. The Brand 1. Scott M. Davis a nd Michael Dunn define the concept ― brand‖ as foll ows: Promise s made to customer s…bas ed on mult iple experienc es over time …del ivered with a consistently high leve l of qualit y and value…t hat ar e per ceived to be unpar alleled re lative to the compet it ion,…ult imat el y re sulting in dee p, trust - based re lations hips…, whic h in tur n, gar ners great amou nts of loyalty and profit s over ti me. 2. A brand i s a promise about a pro duct. It all ows consumer s to h ave a n expec tation that a product will do somet hing va lua ble or desira ble , and t hat this will happen each time t hey buy or use the product. Beca use of this per cepti on, consumer s bui ld trust - based r elationships wit h a bra nd. 3. Among the more spec ific bene fits provided t o a company by str ong brands ar e the se: a. They al low for pr e miu m pri ci ng ver sus c ompet it ors . b. They affo rd pr otection agai nst pr ice wars.
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c. They al low for a gre ater cha nce a new produc t will succeed. d. They affo rd l everage in negot iating with c hannel partners. e. They mak e companie s more attra ctive t o co - branding partners. f.Theyhelp companie s more effect ive ly de alwithabrandcrisis. g.They hel p companie s re cr uit t op ta lent. h. They gar ne r c onsumer loya lty.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
4. Fo r an o verv iew of i mpo rtant mil est ones i n advertising history, see Exhibit 2–3. D. The Evolution of Advert isi ng as an Economic To ol 1. Earl y Adverti sing a. Duri ng the prei ndustrial age , sever al import ant events contr ibute d to the event ual de vel opment of modern a dver tising. b. The Chinese invent ed paper ar ound 150 B.C. Euro pe had i ts first pa per mil l by 1275. c . Around 1449, Johannes Gutenber g invent ed t he movable - type pri nti ng pre ss i n Germany. The p ri nting pr ess is t he most import ant devel opment in the history of advert ising beca use it changed the way peopl e communic at ed, l ive d, and worked. d. In 1472, t he first ad in Engl ish a ppeared: a handbil l ta cked on church doors in London announc ing a prayer book for s al e. e. 1700s: The world’ s popula tion stoo d at abo ut 600 millio n peo ple, an d some ci ties were big e nough to support larger volumes of advert ising. f. Sa muel Joh nso n, a famou s En gl ish lit erary figu re, observed in 1 758 that adv ertise ment s were no w s o nu merou s th at th ey were ―neg lig ently peru sed‖ and it had b ecome n eces sary to gain atten tio n ―by magn ificence of pro
mise.‖ This was the begi nning of puff ery in a dvertising. g. In t he colonies, t he Boston Newsle tter s tarted carryi n g ads in 1704. h. About 25 year s later, Benj amin Fra nkli n, the father of advertising a rt, ma de ads more re adabl e by using la rge headli nes and consi der able white s pace. In fact , Frankli n was the first Amer ic an t o use il lus tr ati ons in ads. 2. The Indus trial Age and the Bir th of Ad Agenci es a. The industrial a ge began ar ound the middl e of the ni neteenth centur y and la sted wel l into t he twent ieth. b. Fresh ma ss mark ets th en d evelo ped fo r the n ew, in expensive b rand s o f co nsu mer
luxur y and convenience goods calle d consume r pack aged goods . c. Ads ap peared in p ublications called pric e currents th a t in fo rmed r et ailers abo ut th e sou rces o f suppl y and shipp ing sc hedul es for commodit ie s.
d. Th e A meri can pro fession of adv ertising b egan when Voln ey B. Pal mer set
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
up busi ness in Phi la del phia in 1841.
e. Th e manu fact u r ers chang ed t heir fo cus fro m a pro du ct io n or ientation to a marketing orientation.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
f. In th e 1920 s, th e era of sales mansh ip h ad arriv ed an d its b ib le was Scien tific Ad vertisin g , wri t ten by th e leg end ary copy writer Clau de Ho pk in s at Alb ert Lasker’ s agen cy , Lord & Tho mas . Radio was born at about
the same t i me and r api dly beca me a power ful new advertisi ng medi um. g. Man uf acturer s fo llo wed th is strategy o f pro du ct d ifferentia tio n vi goro usly , seeki ng to p ortray their br and s as dif fere nt fro m and b etter th an t he co mpetit io n by o fferin g consumer s qu al ity, va riety, and conve nie
nce. 3. The Golden Age a. Th e po stwar perio d fro m 1 94 6 thr ough the 1 97 0s is someti me s ref erred to as adv ertis in g’ s ―Gold en Ag e.‖ Th is is b ecau se the i nt ro duction o f televi sion h elped make t he ad verti sing in du stry a focus of great attention, which
led to bot h acc laim and cr iticism. b. In t he pr osper ous l ate 1940s and e arly 1950s, seemed t o many to create a cultu r e in whic h consumer s trie d to c limb the soci al l adder by buying more and more modern product s. c. USP (u ni qu e selling p rop ositio n) —features th at d ifferenti ate it fro m co mpetit iv e
produc ts. d. Co mpan ies tu rn ed t o a new mantra: mar ket segm enta tio n, a pr oce ss by wh ich mark eter s se a rched fo r unique gr oups of peopl e whose needs
could be addr ess ed through more spec ialized produc ts. e . Th e image er a of th e 19 60s was thu s th e natu ral cul minatio n of the creativ e revo lu tio n. Adv ertising’ s emph a sis shift ed f ro m pr od uct features t o br and image or p erson ality as adv ertiser s sought to align t hei r brands wit h
part icularl y profit able mar ket segme nts. f. Po sitio nin g strateg y pr ov ed to b e an effective way to separate a par ticul ar b rand fro m its co mpetito rs by associatin g th at b rand with a parti cular set of custo me r needs th at rank ed h igh o n the cons umer ’s pri ority list.
4. The Posti ndustr ial Age a. Beginni ng around 1980, t he posti ndustr ial age has be en a period of cat aclysmic change.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
b. Acute e ner gy shor ta ges of the 197 0s and 1980s intr oduced a new mar ket ing t erm, demar k et ing . c . To exp and glob ally , big mult in ation al compan ie s and th eir adv ertising agen cies went o n a bi nge, buying other big companies and cre ating a new word
i n the financi al le xic on: megamerger .
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
d. Two related e con omic f act or s characteri zed th e mark eting wo rld of th is p eriod : (1 ) th e agin g of tradi tio nal pro du cts, with a correspo nd in g gro wth in competit io n, and (2 ) th e gr owing affluen ce and sop hi stication o f th e con sumin g publ ic, led by the h ug e baby boomer gener ati on.
D. The Global Inter act ive Age: Looking at the 21st Cent ury 1. As Ex hi bi t 2 –4 sho ws, th e top 10 worldwide adve rtiser s are based in many differ ent countr ies. 2. In an effort to d o a better job o f relatio nshi p marketing, compan ie s under sta nd that must be consis te nt i n both what t hey say a nd what the y do. 3. Co mpanie s mu st in tegrate all th eir mar ketin g communi cation s with every th ing else do , t oo. T hat’s what in tegra ted marketing communicati ons really
means . III. Socie ty a nd Ethi cs: The Effects of Adver tising A. Advert ising has be en a maj or fact or i n improvi ng the standard of livi ng in the United St ates and ar ound the world. B. Newsp apers, magazin e s, ra di o, television, and many Web sites all receiv e th eir pr imary in come fro m adv ertising . This facilitates freedo m o f th e pr ess and p ro mot e s more comple te informat ion.
C. Th e Red Cro ss, Uni ted Way, and other nonco mmerci a l o rg anizatio ns receive con t in uo us fin ancial su pp or t an d vo lunteer assi stan ce du e in larg e part to t he power of a dver
tising. D. Adv ertising practitio ners fo r med g ro up s to impr ov e adv ertising effectiven ess and pr omot e pr o fessio nalism and started v ig ilance committe es to s afegu ard th e in tegri ty o f the
indus tr y. E. Adv ertising has h ad a p ro noun ced effect on so ciety as we ll as th e e con omy . I t has also fo stered a h ost of so cial attitu des an d laws that hav e dr a mati cally affected adv ertis in g it self.
IV. Chapter Summar y A. Econ omic th e ory in cludes fo ur fu ndamental assu mpt io ns of free - ma rk et econo mi cs: self - in terest, co mplete in fo rma tio n, many buy ers and sellers, and abse nce of exte rnalities .
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
B. The gre atest impact on the evolution of adver ti sing has be en economic . C. With chan gi ng econ omies and in creased competit io n, adv ertising has evol ved fro m the pre industria l age t hrough the indus trial izing and industrial ages t o the post industrial age. D. As a social fo rce, adv ertisi ng h as help ed impr ov e th e stand ard of livin g in t he Unit ed Stat es and around the world. E. Advert ising has a lso been seve rely criticiz ed over the years for it s la ck of hones ty and et hics.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Review Questi on s
1. What ar e t he four funda ment al ass umpti ons of fre e mar ket economic s? (1) Self - interest; ( 2) complete information; (3) many se llers , many buyer s; ( 4) abse nce of ext er nal ities (soci al costs) 2. What ar e t he pri mar y func ti ons of adver tising in a free e conomy? (Exhibit 2 –2) The pri mar y funct ions o f advertisi ng in a fre e ec ono my ar e: (1) t o ident ify produc ts a nd the ir sources and to di fferentiat e them fro m othe rs ; ( 2) t o communic at e infor mat ion a bout the product, it s features, an d it s loc ation of sal e; (3) t o induce cust omer s to try new produc ts a nd to s uggest re use, ( 4) t o sti mula te the di stribution of a product ; (5) to increas e produc t use; (6) to build val ue, brand pre ference , and l oyalty; and (7) t o lower t he overall cost of s al es. 3. What has had the gr eat est impact on the way advert ising has evolved? The pri nting pre ss, i nvente d by Johannes Gute nberg in t he 1440s, was t he most import ant inve ntion of the Preindustr ial Age. The pri nti ng press re volutioniz ed not only t he system of co mmuni cat ion, but also t he way people live d and worked. I n the Industr ializ ing Age, the advent of industr y was the most import ant inventi on, as it facilitated the mass produc tion of products. This t rend conti nued in the Industri al Age, whic h al so sa w t he inve ntion of broadc ast medi a and great er sophisticat ion in ma rke ting techniques, i ncl uding mar ket segment at ion. The most i mportant t hings t hat happened i n the Posti ndustrial Age is t he re ali zation of the limit s of natur al re sourc es and t he emergence of demar ket ing. The Int er net is t he gr eatest innovat ion of the Global Inte racti ve Age. 4. How does a dver tising lower t he cost of sal es? Advert ising can l ower the cos t of sales by increasing t he volume of sales , which in t urn lower s the costs of manu factur ing and dist ribution. 5. How would you differ ent iate t he adver tising used in t he industrializing a ge fro m the indus trial age? During t he indust rializ ing age, manu factur ers wer e more concer ned about ge tting pr oduct s out t o the general publi c. Whole sal ers used t o adver tise t o the publ ic to let t hem know
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
the y had a product or service. I n the indust rial a ge, soc iety start ed changing to more of a consumer- cent er ed proc ess. The increase d avail abil ity of competing br ands l ed t o a gre ater focus on di fferent iation, let ti ng consumer s know how and why a produc t was different from it s compe ti tors .
6. What has been the most i mport ant influence on advertisi ng in the postindustr ial age? The fact tha t consumer s st arted realizing that our re sour ces wer e not infinit e.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
7. What ar e t hree example s of co mpanie s or orga nizati ons that use a demar ket ing strategy? Three example s of companie s/or ganiz ations t hat use t he demar keting strate gy are states tr ying to curtail smoking, ut ilities trying t o get consumer s to u se l ess ener gy, and ci ties t ryi ng to ge t consumer s to l imit the waste they bring to t he curb each week for pi ckup. 8. What compa nie s ca n you thi nk of that ar e engaged in mar ket ing warfare? A cla ssic example is Coke and Peps i. They have be en at each othe r ’s thr oat s and a s of thi s writ in g, it seems Pepsi is s ta rting to edge ahead, especially with the purc hase of Quaker Oats ( which owns Gat orade). Today the biggest co mpet it ive advertising campai gns ar e those of the wire le ss phone companie s. 9. As a consumer , ar e you l ikely to s ave money b uy ing a t a store that does not adve rtise? Explai n. This ans wer will vary. Somet i mes a deci sion not to adver tise is an indication of excl usivi ty. In s uch cases, shopper s will not li kely sa ve money but may st ill get val ue in the form o f e xcellent service (th ink Nordst rom’s). But in ot her cases, a store that does not adver tise might still save consumer money (thi nk Dolla r St ore s). Often stor es that adver tise the price s of the i te ms the y sel l ar e genera lly tr ying to call at tention to l ow pri ces . Consumer s wi ll li kely sa ve money shopping at such outl ets. 10. What effect s do you bel ieve advertising has ha d on soci ety i n gener al? Expla in. Advert ising can he lp creat e trends and desir es. For e xample : BM W int roduc ed t he Z3 conver tible in a Ja mes B ond movie , which hel ped make t hat car a desired sta tus symb ol for many we al thy middl e - aged men. Por tfoli o Rev iew: T he Mo dern His tory o f Advertisin g
1. If we l ook back a t the ad campai gns of 30, 50, 70, a nd even 100 years a go, we get a fascinating indica tion of how li fe was l ive d back then, and we can al so see how the devel opment of moder n adver tising par allels the devel opment of our own standar d of li ving. 2. Study t he array of hist oric al ads in this Por tfolio Review and consi der how wel l ea ch re lates to t he seve n functions and effect s of advertising discus sed i n this c hapt er .
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
ETHICAL I SSUE Eth ical Dile mma or Et hi cal Lap se? This is an inte resting dis cus sio n to have with the clas s. Is i t an ethic al dilemma ( which te nds t o loo k at how the law wo uld in terpr et i t) o r is it a n et hical laps e (not tellin g the truth o r t rying to decei ve). It is als o interesti ng to discus s with st ude nts WorldC o m, Enro n, Tyco , e tc. Thes e are a ll instan ces o f unethical cor por ate beha vio r.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
I try to conve y to the class that the go al o f advert ising is to pos ition and sell prod ucts/ serv ices. Some people might inter pret tha t as unethi cal , whereas oth ers might i nt erpret it as et hical. One of the dilemmas with ethics is tha t what I thi nk is ethical, yo u mi ght find unethical. So meti mes e thics are open to interpretation.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
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My IMC Campaign 2 : Tools for Teamwor k
1.
Advertising agenci es loo k f o r at leas t thr ee q ualities i n th e peo ple they hire: tal ent, knowledge, and the a bility to wo rk well with o t hers. 2. First, yo u will nee d to coo rdinate everyt hing that you do. 3. Second, you will be sha rin g wo rk. 4. Finally, every o ne is ac coun table. Talk to yo ur profes so r abo ut wh e ther he or sh e ex peer pects evalua tions o r so me o ther means to as s ess differen c es in grou p m ember effor t a nd perfo rmance . S taying C onn ected E-mail, of cou rs e, remains an ess ential to o l. You may hav e a un ivers ity e -mail ac count, but these can be pro ble mat ic b ecause (1 ) your inbo x s pace is limi te d, (2 ) spa m fil ters in these a cco un ts are o ften very ag gress ive (too much usef ul m ail is mov ed to the s pa m fo lder), and (3) they la ck many useful too ls f o r orga nizing and labeli ng yo ur mail. Crea ting Doc umen ts Goo gle do cs ( http :// docs.g o o gle.co m ) is a free su ite o f simple yet p o werful docu ment crea tion to o ls that i ncludes a wo rd proce ss o r, a spreadsheet pro gr am, and a pr esentation cr eator . Staying Org a nized Many peo ple find that cale ndars and to - do lists ar e es sential. Goo gl e has an exce llent calen dar pro gram (w w w.goo gle.co m/calen dar ) t hat everyone in the tea m c an edi t. Conducting R esearch Fo r secondar y research pu rpo ses it is gr eat to hav e a pr o gram tha t allows you t o co py an d st o re docume nts, Web pag es, p hoto s, charts, and ot her ki nds of inform atio n. Working Wel l an d St aying A cc ountable Learning to a dapt to gro up projects is n o t eas y for ev eryo ne. K now ing w hat to expect and d eveloping the ski lls to w o rk well wi th o thers is esse ntial. Fo r guida nce, consid er th ese tho u ghts fro m experts: Susa n Heat hf ie ld: h ttp:/ /h umanreso urc es.abo ut.co m /o d/wo rkrelations hips/ a/ play_well.h tm If you vo lun t eer to be a te am leader (o r are appoin te d one ), so me helpful ti ps c an be found here: Stephen Co v ey: www.s te phen covey.c o m/blog/ ?p= 6 If you are doing p eer eva lu ations in yo ur clas s, your pr o fess o r will likely have a fo rm that you sho uld use. T hese ty pes of forms can be fo un d throughou t t h e Web. So m e exa mples in clude thes e: https:/ /cour s es.wo rldcam pus.ps u.e du/ publi c/facul t y/P eerEvalFo rm.html www.ute xas . edu/cours es/ kincaid/ peer evaltips.ht ml
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
AD LAB 2 – A Wh at Kills Bu gs Dead?
Laborat ory Applicat ions 1. Now tha t you know a l ittle about slogans, c reate one for your sel f personally or for your (r eal or ima gine d) c ompany. Whic h qualiti es and char acteristics do you want your slogan to hi ghlight? Share your sloga n with your cla ssmates a nd gauge the ir reacti ons.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Answer s to this que stion will vary. The key i s to make sur e the stude nt’s slogans s ound compel li ng. This exe rcise wil l also hel p st udent s re alize that these sloga ns ar e not as easy to c reate as they might have t hought. 2. Busines s cards se rve a higher purpose than simpl y provi ding informat ion for a Rolode x. They ar e mini - advertisement s. Crea te a busi ness car d for yours el f using your s loga n . This is a f un exercise to have students turn in. It always ama zes m e w hat st ude nt s co me u p wi th.
Inte rnet Exerc ise 1. Need help getting st art ed on your slogan ass ignment ? Adslogans.c om ha s st ep - bystep inst ructions that lead you thr ough the process ( www.adslogans .co.uk/general/students.ht ml ). For more ide as, l ook at slogans a nd ad campai gns pas t and present at www.adfli p.com. People behind the Ads : Wil li am Ber nbach 1. Fo r most of th e 19 50 s creativ ity carried l ittle cu rrency .
2. But by 1959 a cr eative revol ution was br ewing, le d by the founder and creati ve l eader of an upst art New York a gency, Doyle Dane Bernbac h. 3. Contradi cti ng Hopkins’s cl ai m t hat adver tising was a science, Ber nbach wrot e: ―I don’t want ac ademic ia ns. I don’t want scientist s. I don’t want people who do the r ight t hings. I want peopl e who do inspi ri ng thi ngs… Let us bl aze ne w tr ail s. ‖ 4. Bernbac h devel oped copy that e ncoura ged consumer s to r ej ect groupthi nk, the mass soci ety, a nd the idea that ever yone should be like ever yone else. 5. Bernbac h passe d away in 1982 afte r a fabl ed ca reer, but his le gacy i s int act. Harper ’s Maga zi ne, noti ng his passing, wrote that Bernbach had mad e ―a gr eater impact on Amer ic an culture than any of the distingui shed writ ers and ar tists‖ appear ing in t he magaz ine duri ng its 133 year s. The Adverti sing Experie nce 1. Ad Act ion: Dema rke ting
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
Ide ntify a soci al probl em at your school t hat ha s ha d an effect on your life in t he past few months. Then cr eate a print de mar keting advertisement tha t addresse s thi s probl em. T he ad shoul d have a vi sual ele ment as wel l as a slogan. Economic Pers pect ive s of Adver tising Visi t t he We b si te s that f oll ow for r eadi ngs on t he ec onomic s of advert ising. Afte r study ing them, do you be li eve adve rtisi ng pri mar il y promote s monopoly or doe s it foster many buyer s and s eller s? Support your a rgument with poi nts from the ar ti cle s.
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
a. ―The Econo mic s of Adver tising‖ (Int roduction), 2001 — intr oductor y essa y to a volu me edi te d by Columbia Univer sity economist Kyle B agwell : htt p:// web.stanford.e du/~kbagwell /Bagwell_Web/advertisingint rofv2.pdf b. ―Advert ising,‖ The Library of Econo mic s and Liber ty: The Concise Encycl opedia of Economic s —an i nteresti ng primer by Prof. Ge orge Bittli ngmayer , Univ er sity of Kansas: www.econli b .org/ library/Enc/ Adverti sing.html 3. Advert isi ng History Visi t t he following Web sit es to see what el se you can le arn about the ear ly adver tising effort s of companie s here and abr oad. Can you find so me ea rl y ads for Kodak? Coca - Cola? Sunkist? Who ar e some o f the other maj or adver tisers list ed? What spec ific char acteristics i n art and copy st yles do you noti ce t hat m ake t hese ads differ ent from adver tising today? a. The E mer gence of Adver tising in Amer ic a se cti on of the John W. Hart man Center for Sale s, Adverti sing, and Mar keting Hist ory at Duke University: htt p:// scr iptori um.li b.duke.edu/ eaa b. Archi ves of the His tory of Advert isi ng Trust: htt p:// www.hatads .org.uk/ c. Hist ory Matt ers : htt p://hist orymat ters.gmu.edu/ mse/ ads/ amadv .html d. The Museu m of Broa dcas t Commu nic ations ( Chic ago): htt p:// www.museu m.tv/ index.htm e. Ninet eenth- cent ury a dver tising in Harper ’s Weekl y magaz ine : htt p:// adver tising.harpweek.com f. USA TVAD S (a large — more than 1 mill ion exam ples — pay -site co llection of A merican tel evisio n commer cials) : www.usa tva ds.net g. Adver tising , marketi ng, a nd co mmer cia l imagery co llections o f th e Nationa l Mu seum of American His tory at the S mithso nian: http :// americ anhis tory.s i.e du/colle ction s /s ubjects/ adv ertising
4. Volkswagen’s adver tising from the ear ly 1960s was cl early quite differ ent from that of it s compet it ors —perhaps because of it s d ecision to pa ir copywrit ers with art dir ectors , a par tnership that i s now all but standar d in the adve rtising indus tr y. But did ot her aut omak er s sit up and take notice? Find some example s of Amer ic an
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
auto advertising in the year s s ince t hat coul d potentially have been i nflue nced by DDB’s VW work .
5. Some Co ca -Co la investo rs want the c o mpany to sp end mo re on adv ertising p ro ducts i n grow ing ca tego ries, suc h as spo rts dr inks, and less o n trying to r evive co nsu m er interest i n full- calorie so ft dri nks. How wo uld y o u respond t o these shar e holders ?
C h a p t e r 0 2 - T he B ig Picture: Th e E v o l u t i o n o f A dvertising
6. Afte r s ti rring up c onsumer s’ e moti ons and s haking t heir fait h in the company by int roducing New Coke , company e xecut ives have been treading s omew hat light ly for the last 20 year s. Do you thi nk their e ffort s to conserve and prot ect the brand have sti fled the creativity of Coca - Cola adver tising? Why or wh y not?
Chapter 2 The Big Picture: The Evolution of Advertising & IMC
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This doc ument may not be c opi ed, s c anned, dupl i c ated, forwarde d , di s tributed , or pos ted on a webs i te, i n whol e or part.
Chapter Overview Explains the principle s of free - market economics, the functions and effects of advertising, advertising as an economic tool, and the impact of advertising.
Artwork by Henry McAlear, Im age from the History of Medicine (NLM) .
is doc ument may not be c opi ed, s c anned, dupl i c ated, forwarde d , di s tributed , or pos ted on a webs i te, i n whol e or part.
2-2
Chapter Objectives Explain the role of Discuss the functions competition in free- advertising performs in market economics a free market Understand branding Identify milestones in and its benefits advertising history Discuss how the role of Explore advertising’s advertising has cha nged impacts on society .
Assumptions of Free Market Economics
Complete Self - Interest Information
Many Buyers Absence of & Selle rs Externalities
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Functions & Effects of Advertising Identify and differentiate products (b randing) Communicate product fe atures and availability Induce customers to try products and sugge st reuse Increase product use Stimulate product distribution Build value, brand preference, loyalty Lower overall cost of sales .
Benefits of Strong Brands Premium pricing Garner Price war cust omer protecti on loyalt y
Increases Recruit top
Strong new talent product brands su ccess Aid in Leverage
dealing for with crisis negoti ating Attractive to partners .
Evolution of Advertising Preindustrial Industr ializing Industr ial Postindust rial pre- 1800 1800- 1900 1900- 1980 1980- present
Source: Library of Congress Prints Source: The Coca- Cola Company and Photographs, LC- USZ62- 39705 .
Preindustrial Age of Advertising During this era, few could read Then. . . Chinese invented paper Gutenberg invented the printing press .
Š Pat & Chuck Blackley / Alamy
Industrializing Age of Advertising Producers needed mass cons umptio n to match mass product ion For the first time, it cos t less to buy a product than to make it yourself Transportati on breakthroughs facilitated distribution
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Increased need for mass marketing techniques
Industrial Age o f Advertising • Fresh markets for new, inexpe nsive brands of luxury and convenience goods • Consumer packaged goods • Catalogs mailed to rural areas • Radio provides new medium • Advertising becomes a professi on .
Golden Age of Advertising The Product Posi tioning Era Post WW II - 1970 Produc t differentiation Market segmentation Positioning .
Post Industrial Advertising Demarketing Cold W ar ends Multinational companies expand Traditional p roducts aged Afflue nt baby boomers Increased competition among agencies The Internet and Faceboo k
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Global/Interactive Age Advertising becomes a wo rld -wide enterprise
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Global Interactive Age TV Remote Control Personal computers Satellite and Cable Narrowcasting
Source: The Coca- Cola Company
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Smart phones
The Web —iTunes, Hulu
Advertising as a Social Force
Improves standard Ensures availability of living of information
Enables us to
Supports social benefit communicate about causes and ourselves by the organizations products we buy .
Advertising Ethics and Effects On t he other hand, advertising can be dishonest and unethical • Puffe ry • Advertising to children • Advertising legal but unhealthful products
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Effects of Unethical Advertising
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