Principles of Advertising Study Guide

* Advertising
Business - Either using an agency or have your own advertising department/advertise on your own.
Government - is a regulatory body, create laws to regulate advertising, things you can advertise and things you cant advertise
Cigarete Comercials on TV
Lobby – Corp trying to lobby gov. to change for the good, two forces, that think gov, is a positive thing and thinks its good for them to regulate everything and keep things in order. others who think the gov. needs to be smaller, and that they should not have as much control.
Society – the culture that your brought up in, tradition, morals and values of the people.
Business
Finance – the amount of money involved in advertising to promote your product.
Marketing – Finding a need that the people want, and filling that need.
Advertising – Non personal (to everyone whose watching, not just to one person), Always paid for, communication of info about the companies product, service or idea through the various medias (Television, Radio, Magazines, Internet)
Public Relations – figuring out what the people want.
Publicity – exactly like advertising but free
Personal Selling – what you selling is relatively expensive, and exclusive.
Trade shows – where companies get to meet perspective corp. buyers, they can buy a lot of stuff on behalf of their company.
Promotions – any inducement or excitement to get you excited about the companies product. (giving out free t-shirts)
Operations – whatever the company does
Types of markets advertising goes after
Consumer Market – things you might see on tv or hear on the radio
Business/Profesional Market
Government – Trying to sell things to the government, and
Profesional – advertising for accounting software, and things that your generally not going to read for pleasure, but there going to be ways to improve your business. Bar Magazines, no one is going to buy the stuff in that magazine, but owners of restraunts are going to buy it.
Business – trying to get your beer on the first shelf, and dealing with the grocery store , or liquor store
Integrated Marketing system – Customers hear from a various amount of different markets.(Flagler College business Cards) The consistency so everyone knows what a companies about, and what their image, logo, and slogan is.
All state – Have their lil slogan on anything they hand out, “The Good Hands People”, and have their logo on most things, and have their color that they always use, so it will last in peoples memories and they associate everything their company with it.
Art to creating proper advertising to get their message out properly.
Theres going to be a persona (Spokesperson), a Medium (Getting the message out with a catchy phrase or something) , and the way people will receive it.
Spokesperson – Someone that speaks on behalf of a company. they can be a person (like William Shatner for priceline) but they can also be a persona (like Ronald Mc’Donald), pretty much any person that’s getting the companies message out.
They should be catchy, and will use catchy phrases (subway foot-long song, or I want my Baby Back Ribs)
You need that artistic eye, certain color combos can make all the difference and mean completely different things.
A lot of times they will advertise things as being bigger, and sounding better than they are.
A lot of companies will take out some of the product, Bags of potato chips, making a beer only 11.5 ounces rather than 12.
4 out of 5 dentist recommend it ( that’s not a lot of dentist out of the millions that exist)

Price Economic Argument – Argument that competition
Exclusive Distributions – you need to buy the right to sell a certain product in that area.
Advertising perpetuating stereotypes – advertising can sometimes bring out stereotypes for certain people. They have women in the kitchen in commercials, and men always doing the work.
Ad agencies need to regulate themselves, they actually meet every year to figure out what they can do, and what they can’t do.
FTC – Federal trade commission deal with any company that does trade with more than one state.
If there is not trading involved in more than one state than it is generally just regulated by the states capital
The FTC will tell people to not air something, and make sure that nothing offensive is on the air.
If you don’t sign the consent to agree then you have make another commercial correcting your mistake, and putting out a new ad with the correction on your expense. (corrective advertising)
Puffery – is exaggeration, and that is something you can do.

* self actualization – becoming the top , ceo, of a company, you’ve proven to the world that your at the top, and are very successful. * Generally these people will buy the expensive cars, boats, jets, watches, and ect. * Assumption Factor - Never assume you know what your target is, or what they want. * Task Utility – product or service that does something for you, makes doing a task easier. * Premade food * Form utility – when a manufacturer puts together hundreds of pieces that you would not want to do. * A computer being built for you, a chair, ect. * Time Utility – product or service available when you want it. * Can’t buy a Harley Davidson right away, going to be at least a few months to get one. * Where utility – the product is available where you want. This includes being delivered to your house. * “Perception is the reality” – if you perceive a product to be better, than it is. * *

Ch. 1 Advertising Today
Advertising lets customer aware of a product, comprehend what its used for, and see how it is different from its competition.
Info will help create a conviction, that this product is better. It will then give the customer a desire to buy from this retailer, and help them take the action to buy a product.
Integrated Marketing Communications (IMC) – when consumers receive consistent and positive messages about a brand.
Marketing Communications – Tools that companies and organizations use to initate and maintain contact with their customer, clients, and prospects.
Advertising – is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products by identified sponsors through various media.
A type of communication, structured, and composed
Directed to groups of people, not individuals so its nonpersonal
Most is paid for by sponsors
Public service messages – carried at no charge because of their nonprofit status.
Product – encompasses goods, services, and ideas.
Medium – the channel of communication advertising reaches us through.
Word of mouth (WOM) – when you tell somebody how much you like a product. Becoming more popular thanks to twitter and facebook.
Mass Media – the traditional way of advertising.
Addressable media – direct mail.
Interactive media – the internet
Nontradional media – shopping carts, blimps, and dvds. * Two types of dimensions in advertising * Communication dimension – how advertising is actually a form of structured, literary communication.
Marketing dimension – explains the important role advertising plays in business.
Economic dimension – shows how and why advertising evolved as it did.
Social and ethical dimension – considers the impact of advertising on consumers, businesses and society. * Source Dimension
Sponsor – the company advertising a product or idea, legally responsible for the communication and has a message to communicate to actual consumers.
Author – the sponsors ad agency, a creative team at an ad agency.
Persona – real or imaginary spokesperson who lends some voice or tone to the ad. * Message dimension
Autobiographical – tell a story about myself to you the imaginary audience.
Narrative messages – a third-person persona tells a story about others to an imagined audience.
Drama message – the characters act out events directly in front on an imagined epmpathetic audience. * Reciever Dimensions
Implied consumers – Adressed by the ad’s persona, imagined by the ad’s creators to be the ideal consumers who accept uncritically the arguments made by the ad.
Sponsorial consumer- the gatekeepers who decide if the ad will run or not, group of decision makers at the sponsors organization.
Actual Consumer – people in the real world who make up the ad’s target audience. They will actually get to see and hear the ad . * Feedback – completes the cycle, verifying that the message was received. * Every business has three broad functional division – Operations, Finance, and Marketing. * Marketing – the process of planning and executing the conception, pricing, distribution, and promotion of ideas, goods, and services to create exchanges that atisfy the perceived needs, wants, and objectives of individuals and organizations.
Consumer advertising – most advertising falls under this category.
Retail advertising – advertising sponsored by retail stores and businesses.
PSA (Public Service Announcements) –
Industrial / Business Markets
Business to business – rarely seen by the actually consumer, because they will generally specialize in one department.
Kitchen Magazines for restraunts.
Trade Advertising – Wholesalers, retailers, and dealers. Generally a product is sold to these companies so they can get rid of a mass quanity at one time.
Professional advertising – advertising aimed at teachers, accountants, doctors, engineers, ect.
Used to convince professionals to recommend or prescribe a specific product or service, to buy brands of equipment and supplies for use in their work, or to use the product personally.
Agricultural advertising – to promote products and services used in agriculture to farmers and other employed in agribusiness.
Price strategies –
Image advertising – creates a perception of a company or a personality for a brand, is rarely explicit about price.
Almost never mention price, but always say how cool it is to have their product.
Sale advertising – used most often by retailers, dealers, and shops to call attention to a recent drop in the price of a brand or service.
Place :
Global, international, national, regional, and local.
Promotion
Personal selling – face to face interaction or telemarketing. Usually high priced items like cars or real estate.
Product advertising – service and goods
Nonproduct advertising – sells ideas
Noncommercial advertising – seeks donations, volunteers, or changes in consumer behavior.
Awareness advertising – wants to create an image for a product and position it competitively with the goal of getting readers or viewrers more aware of their product.
Action advertising (Direct-response) – toll free number for immediate information.
Sales promotion – coupons, free samples, contests, or rebates on the purchase price.
Public Relations –
Collateral materials – brocures, catalogs, posters, sales kits, instruction booklet, ect.

Art Director – responsible for visuals
Creative Director – responsible for all creative departments
Typically comes from the copy side * Graphic designer – works on the visuals * Rainmaker – acountive executive, they pitch what advertising agency can do * Copy-writer – responsible for the slogan, and words * Resignance – you get what the ad is trying to get through, or say to you. * Relevant – good ads should all be relevant, has some type of reason. * What good advertising should do :
Inform – where is product, how much does it cost, what is it,
Persuasion – should give you reasons to try product or service
Reminding – have to continue to let you know that they are still there.
Objective statement – what ad is trying to accomplish, are you solving a problem, something that makes life easier
Supportive Statement – what can you put in there to support what you are saying
Getting a spokesperson, athlete to go in there to back up the product.

Primary demand – demand for the entire product class
Selective demand – demand for a particular brand.
Abundance principle – states that in an economy that produces more goods and services than can be consumed, advertising serves two important purposes.
Keeps consumers informed of their alternatives (Complete information)
It allows companies to compete more effectively for consumer dollars (Self-Interest) * Why people are against advertising
Short term manipulative arguments – saying advertising is deceptive or manipulative.
Puffery – exaggerated, subjective claims that can’t be proven true or false, such as “the best”, or “the only way to fly”.
Non-product facts – aimed not at the product but the consumer, and does not really give any information about the actual product. Such as “Pepsi. The choice of a new generation”.
Social or enviormental impact of advertising – long-term macro arguments.
Manipulates us into buying things we don’t need. Replacing our citizen democracy with a selfish consumer democracy.
Only 17 percent of consumers view advertising as a source of information to help them decide what to buy.
Too much advertising. * Ethical – means doing what is morally right in a given situation. * Social responsibility – doing what society views as the best for the welfare of people in general or for a specific community of people. * CARU (Childrens Advertising Review Unit – promotes responsible children’s advertising and to respond to public concerns, self regulatory guidelines for childrens advertising. * Fair information practice principles
Notice – requires website to clearly post its privacy policy
Choice – consumers level of control over being profiled and how their information is used
Access – ability for consumer to access information collected about them and make amendments to it.
Security – requires advitisers to protect the data they have colleceted
Enforcement – requires all industry members subject themselves to third party monitoring by independent company.
FTC – major regulator of advertising for products sold in interstate commerce.
Substantiation – supporting data and scientific studies to their products purpose
Endorsements – the person promoting the product can’t be misleading, he has to actually use that product himself.
Affirmative disclosure – gives health warnings
Remedies for unfair advertising
Consent decree – document the advertiser signs agreeing to stop the objectionable advertising
Cease and desist order – when consent decree wont be signed ftc may prohibit further use of the ad.
Corrective decree – explains how their ad was wrong before and corrects the misleading mistake.
FCC – responsible for protecting the public interest and encouraging competition.

Four distinct groups in advertising
Advertisers – companies that sponsor advertising for themselves and their products.
Advertising agencies – helps the advertisers plan, create, and prepare ad campaigns and other promotional materials.
Suppliers – assist both advertisers and agencies in preparing advertising materials.
Media – sell time and space to carry the advertisers message to the target audience.
Local advertising – targeting customers in their geographic area. Sometimes called retail advertising because retail stores account for so much of it.
Dealers or local franchisees of national companies.
Stores sell a variety of items. (grocery, department stores, convience)
Speciality businesses and services (Banks, restaurants)
Governmental, and nonprofit organizations.
Product advertising – promotes a specific product or service
Regular price-line advertising – informs consumers about services or merchandise offered at regular prices. Accounting firms might use regualar price-line
Sales advertising – placing items on sale and offering deals
Clearance advertising – making room for a new product line getting rid of the old stuff at a low price
Institutional advertising – create a favorable long-term perception of the business as a whole, not just of a particular product or service. “Im loving campagn”. More of an idea
Classified advertising – locate and recruit new empoyees, offer services, sell or lease merchandise.
Integrated marketing communications – (IMC) joining together in a consistent manner everything that communicates with customers.
Co-op advertising – build the manufacturers brand image and to help its distributors, dealers, or retailers make more sales.

Newspapers – want to advertise in newspaper because a lot of people, different sections for different types of ads, and can also be local.
Disadvantage – poor production, no high quality animation and mostly black and white. Ad is normally short termed, because new paper comes out everyday.