Advertising and Brand Promotion Lecture PDF

Lecture 1 The World of Advertising and Integrated Brand Promotion Close Scheinbaum, Advertising and Brand Promotion, 9th Edition. Close Scheinbaum, Advertising and Integrate...

Lecture 1 The World of Advertising and Integrated Brand Promotion Close Scheinbaum, Advertising and Brand Promotion, 9th Edition. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th ©2023 Edition.Cengage. All RightsAll © 2023 Cengage. Reserved. May not be Rights Reserved. scanned, May copied or not be scanned, duplicated, or posted to a publicly accessible website, in whole or in part. copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1  Learning Objectives After reading and thinking about this chapter, you will be able to do the following: 1-1 Describe the new world of branding. 1-2 Define what advertising, advertising campaigns, and integrated brand promotion (IBP) are and what they can do. 1-3 Explain advertising as a communication process via a model of mass mediated communication. 1-4 Describe the different ways of classifying audiences for advertising and IBP. 1-5 Explain advertising as a business process. 1-6 Identify the various types of advertising and the economic effects of advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2  Icebreaker Consider the products you use on a frequent basis. 1. What types of advertising can you remember seeing for that company or product? 2. What stands out that makes you remember the company or its product? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  1-1 The New World of Advertising and Integrated Brand Promotion Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4  The New World of Advertising and Integrated Brand Promotion (1 of 2) Consumer preferences and new technologies are reshaping the communication environment and the future of advertising. Measurement and research cannot be stressed enough – every investment must be measured. Lines between information, entertainment, networking, and commercial messages are blurring. − Mobile marketing can reach up to 81 percent of American consumers. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5  The New World of Advertising and Integrated Brand Promotion (2 of 2) Old Media/New Digital Media—It’s All about the Brand Regardless of changes in technology, advertising and IBP is all about the brand. Challenge and opportunity for businesses – to communicate effectively about the brand, its values, and its benefits. Brands that do not meet the needs of consumers do not succeed. Established brands face a challenge of maintaining a market-driven image and communicating the contemporary identity to their target audience. − Cadillac was strong in the 1950s, but market share fell to 0.88 percent in 2020. − Product redesign, reaching a target audience, and boosting digital presence placed the Escalade as the 2021 Luxury Vehicle of the Year (by Cars.com). Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6  1-2 What Advertising, Advertising Campaigns, and Integrated Brand Promotion Are and What They Can Do Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7  What Advertising, Advertising Campaigns, and Integrated Brand Promotion Are and What They Can Do (1 of 4) Advertising means different things to different people. − Creates brand awareness and loyalty − Brings people into a store − Serves as the creative expression of a concept − Allows a firm to communicate with current and potential customers − Drives traffic to a specific website − Is an important cultural artifact, text, and historical record Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8  Small Business Saturday Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9  What Advertising, Advertising Campaigns, and Integrated Brand Promotion Are and What They Can Do (2 of 4) Advertising Defined The client or sponsor is the person who pays for advertising. If it is not paid for, it is not advertising. Advertising is mass mediated – meaning, delivered to reach a large mass of people. Advertising includes an attempt to persuade, inform, or remind. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10  What Advertising, Advertising Campaigns, and Integrated Brand Promotion Are and What They Can Do (3 of 4) Integrated Brand Promotion Defined Integrated brand promotion − Is a process that needs to be managed − Uses a wide range of promotional tools that need to be evaluated and scheduled − Tools work together to create a consistent and compelling impression of the brand − Effort undertaken is to create widespread exposure for the brand Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11  What Advertising, Advertising Campaigns, and Integrated Brand Promotion Are and What They Can Do (4 of 4) Advertisements, Advertising Campaigns, and Integrated Brand Promotion Advertisements convey a specific message while advertising campaigns are a series of coordinated advertisements and other promotional efforts that communicate a single theme or idea/message about a brand. A Focus on Advertising IBP allows consumers to quickly identify and evaluate the relevance of brands to their lives while those not utilizing IBP will be ignored. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Popeyes uses their X(Twitter) account to promote their “Hottie Sauce.” Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13  1-3 Advertising as a Communication Process: A Model of Mass-Mediated Communication Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14  Advertising as a Communication Process: A Model of Mass-Mediated Communication Advertising happens mostly through a medium (such as TV, phone, or side of a building) Two major components: production (sender) and reception (receiver) The source creates the content; accommodation and negotiation come between source and reception Critical point: No ad contains a single meaning or even the same meaning for each audience member. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15  A model of mass-mediated communication. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16  Integrated Brand Promotion in Action: Panera. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17  Discussion Activity Looking at the IBP in Action from the previous slide, consider the following: 1. What does the social media post and commercial screenshot convey to you about Panera Bread? 2. Who do they reach through the ads shown? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18  Discussion Activity Would you expect everyone to take away the same meaning from these ads? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19  1-4 Different Ways of Classifying Audiences for Advertising and IBP Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  Different Ways of Classifying Audiences for Advertising and IBP (1 of 4) The audience could be anyone from household consumers to college students to businesspeople, among others. A target audience is selected by their potential to like the product or service being offered, but they are not guaranteed, as the intended message must be received to attain their business. Audience Categories Household consumers are the main focus of advertising. Business and industrial goods and services focus on members of business organizations. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21  Different Ways of Classifying Audiences for Advertising and IBP (2 of 4) Audience categories (continued) Members of a trade channel: Retailers, wholesalers, and distributors Professionals: Doctors, lawyers, accountants, teachers, electricians, or other group with specialized training or certification − Commonly use trade journals to reach them Government officials and employees purchase in large quantities due to the number of federal, state, and local government employees and departments. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Different Ways of Classifying Audiences for Advertising and IBP (3 of 4) Audience Geography Global advertising is used worldwide with only minor changes in the visual and message content. International advertising: The preparation and placement of advertising in different national and cultural markets, outside the home market. National advertising: Advertising that reaches all geographic areas of one nation. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23  Different Ways of Classifying Audiences for Advertising and IBP (4 of 4) Audience Geography (continued) Regional advertising: Producers, wholesalers, distributors, and retailers concentrate their efforts in a particular geographic region. − Not conducted on a national scale. Local advertising: Directed at an audience in a single trading area. Cooperative advertising: Sharing of advertising expenses between national companies and local merchants. − Also called co-op advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24  1-5 Advertising as a Business Process Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25  Advertising as a Business Process (1 of 10) The Role of Advertising in the Marketing Mix The role of advertising relates to four important aspects of the marketing process undertaken by every organization: − Contributing to the marketing mix − Developing and managing the brand − Achieving effective market segmentation, differentiation, and positioning − Contributing to revenue and profit generation Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26  Advertising as a Business Process (2 of 10) The Role of Advertising in the Marketing Mix (continued) Advertising as a part of communication plays a vital role in marketing. Within an organization, the four main areas of responsibility and decision making are called the marketing mix: − Developing − Pricing − Promoting − Distributing Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27  Advertising as a Business Process (3 of 10) The Role of Advertising in the Marketing Mix (continued) Advertising plays a critical role in brand development and management. − Audiences learn about a brand’s features and benefits − Helps brands stand out − Persuades consumers based on tangible or intangible benefits − Critical when organizations introduce a new brand or extensions of existing brands ▪ Brand extension (also called brand variant): Adaptation of an existing brand to a new product area Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28  Advertising as a Business Process (4 of 10) The Role of Advertising in the Marketing Mix (continued) Loyalty to a brand is one of the most important assets a firm can have. − Brand loyalty: Consumer repeatedly purchases the same brand to the exclusion of competitors’ brands. − Brand equity: Set of brand assets linked to a brand, its name, and symbol. Advertising can help link a brand’s image and meaning to a consumer’s social environment and the larger culture. − Can deliver a sense of personal connection for the consumer Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30  Advertising as a Business Process (5 of 10) The Role of Advertising in the Marketing Mix (continued) Wholesalers, retailers, distributors, and brokers can favor one brand over others given the proper support from a manufacturer. − Sales training programs − Collateral advertising materials − Point-of-purchase advertising displays − Premiums − Web traffic—building advertising − Foot traffic—building special events Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31  Advertising as a Business Process (6 of 10) The Role of Advertising in the Marketing Mix (continued) Market segmentation breaks down larger markets into smaller, more similar segments, such as demographics or psychographics. Advertising helps: − Develop messages that appeal to the needs and desires of different segments. − Transmit those messages via appropriate media. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32  Advertising as a Business Process (7 of 10) The Role of Advertising in the Marketing Mix (continued) Differentiation: Process of creating a perceived difference between an organization’s brand and the competition − Based on consumer perception Advertising helps: − Emphasize performance features − Create a distinctive image for the brand − Develop a message that is different and unmistakably linked to a company’s brand Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33  Advertising as a Business Process (8 of 10) The Role of Advertising in the Marketing Mix (continued) Positioning: Designing a brand to occupy a distinct and valued place in the target consumer’s mind − External position: The competitive niche a brand pursues − Internal position: The niche a brand achieves with regard to the other similar brands a firm markets − Repositioning: Returning to the process of segmenting, targeting, and positioning a product or service to arrive at a revised positioning strategy ▪ Firm believes that a brand needs to be updated to address changing market conditions Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34  Advertising as a Business Process (9 of 10) The Role of Advertising in the Marketing Mix (continued) Advertising contributes to the process of creating sales and revenue. − Does not generate revenue directly Creates pricing flexibility by: − Contributing to economies of scale − Helping create inelasticity of demand to price changes Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35  Advertising as a Business Process (10 of 10) The Role of Advertising in the Marketing Mix (continued) Advertising can help organizations make a difference to society through purpose-driven marketing. − Can help organizations achieve long-term social purpose − Can contribute to sales growth − Helps recruit and motivate talented employees Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36  The purpose of a WWF ad. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37  1-6 Types of Advertising and the Economic Effects of Advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38  Types of Advertising and the Economic Effects of Advertising (1 of 5) Types of Advertising Primary demand stimulation is challenging, costly, and will likely impact only totally new products. Selective demand stimulation is effective for individual brands, including those in mature product categories. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39  Types of Advertising and the Economic Effects of Advertising (2 of 5) Types of Advertising (continued) Direct-response advertising encourages immediate action by the consumer, usually on products with which the consumer is already familiar. Delayed-response advertising works at a less immediate timeframe to build familiarity and brand loyalty. − Relies on imagery and message themes to emphasize benefits and satisfying characteristics of a brand Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40  Types of Advertising and the Economic Effects of Advertising (3 of 5) Types of Advertising (continued) Corporate advertising: Establishes a favorable attitude toward a company as a whole, not just toward a specific brand Brand advertising: Communicates the specific features, values, and benefits of a particular brand offered for sale by a particular organization Institutional advertising: When corporate advertising takes place in a trade channel − Used predominantly by retailers Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41 Nordstrom thanks its customers. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42  Types of Advertising and the Economic Effects of Advertising (4 of 5) The Economic Effects of Advertising Gross domestic product (GDP): Measure of the total value of goods and services produced within an economic system − Advertising can contribute to levels of overall consumer demand. Advertising can help with entering new markets, increasing competition, but does not universally stimulate competition. − The amount of advertising dollars needed to compete effectively in many industries can act as a barrier to entry. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43  Types of Advertising and the Economic Effects of Advertising (5 of 5) The Economic Effects of Advertising (continued) Advertising is built into product costs, which may be passed on to consumers, but cost savings are also passed to consumers. Consumers must find that the value of the product or service is larger than the cost incurred to acquire it. − Symbolic value: What a product or service means to consumers in a nonliteral way − Social meaning: What a product or service means in a societal context − The more value consumers see in a brand, the more they are willing to pay to acquire the brand. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44  Knowledge Check “‘Doodh Doodh, Piyo Glass Full” is a slogan that was part of which type of advertising campaign? A. Direct-response advertising B. Primary demand stimulation C. Institutional advertising D. Selective demand stimulation Read more at: https://brandequity.economictimes.indiatimes.com/news/advertising/how-amul- popularised-milk-in-the-1990s/100201812 Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 45  Kantar BrandZ Top 10 Most Valuable Global Brands 2021 Rank 2021 Brand Brand Value 2021 ($Mil) % Increase 2021 vs 2020 1 Amazon 683,852 64% 2 Apple 611,997 74% 3 Google 457,998 42% 4 Microsoft 410,271 26% 5 Tencent 240,931 60% 6 Facebook 226,744 54% 7 Alibaba 196,912 29% 8 Visa 191,285 2% 9 McDonald’s 154,921 20% 10 MasterCard 112,876 4% Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 46  Summary Click the link below to review the objectives for the presentation. Link to Objectives Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 47  Lecture 2 The Structure of the Advertising and Promotion Industry: Advertisers, Agencies, Media, and Support Organizations Close Scheinbaum, Advertising and Brand Promotion, 9th Edition. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th ©2023 Edition.Cengage. All RightsAll © 2023 Cengage. Reserved. May not be Rights Reserved. scanned, May copied or not be scanned, duplicated, or posted to a publicly accessible website, in whole or in part. copied or duplicated, or posted to a publicly accessible website, in whole or in part. 48  Learning Objectives After reading and thinking about this lecture, you will be able to do the following: 2-1 Describe the advertising and promotion industry’s size, structure, and participants. 2-2 Discuss the role played by advertising and promotion agencies/consolidated agency networks, the services provided by these agencies, and how the agencies are compensated. 2-3 Identify key external facilitators who assist in planning and executing advertising and integrated brand promotion campaigns. 2-4 Discuss the role played by media organizations in executing effective advertising and integrated brand promotion campaigns. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 49  The Structure of the Advertising and Promotion Industry Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 50 The structure of the advertising and promotion industry and participants in the process. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 51  The Scope and Structure of the Advertising and Promotion Industry (2 of 4) Advertisers use promotional techniques to reach target audiences. − Known as clients by their advertising and promotion agency partners. Manufacturers and Service Firms − The largest users of advertising and promotion. − Advertising (particularly mass media advertising) is essential in creating awareness and preference for brands. Trade Resellers − Trade resellers buy products and resell to customers. − Wholesalers and distributors work mostly with business customers and rely very little on advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 52  The Scope and Structure of the Advertising and Promotion Industry (3 of 4) Federal, State, and Local Governments − One of the 100 largest spenders on advertising in the U.S. − Indian Government spending on advertisement Social and Not-for-Profit Organizations − Raise awareness for organizations − Seek donations − Shape behavior Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 53  Integrated Brand Promotion in Action: India. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 54  The Scope and Structure of the Advertising and Promotion Industry (4 of 4) There is an important role played by the advertiser before the services of an agency are enlisted: − Understand and describe the value that the firm’s brand(s) provides to users. − Understand and describe the brand’s position in the market. − Describe the firm’s objectives for the brand in the near term and long term (e.g., brand extensions, international market launches). − Identify the target market(s) most likely to respond favorably to the brand. − Identify and manage the supply chain/distribution system. − Be committed to integrating advertising, event sponsorship, and other promotional tools as part of the organization’s overall marketing strategy. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 55  Advertising and Promotion Agencies Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 56  Advertising and Promotion Agencies (1 of 7) Advertising Agencies- An organization of professionals who provide creative and business services to clients related to planning, preparing, and placing advertisements. Most advertisers use an advertising agency. − Many American agencies are also international agencies. − Many top agencies are headquartered in Europe. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 57  Advertising and Promotion Agencies (2 of 7) Types of agencies include: − Full-service: Includes an array of advertising professionals to meet all the promotional needs of clients − Creative boutique: Emphasizes creative concept development, copywriting, and artistic services to clients − Digital/interactive agencies: Focus on using online, mobile, and social media for direct marketing and target market communications for clients − In-house agency: The advertising department within a firm − Media specialists: Buy media time and space and offer media strategy consulting to advertising agencies and advertisers Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 58  Advertising and Promotion Agencies (3 of 7) Promotion Agencies Promotion agencies are specialized. Handle everything from sampling to event promotions to retail promotional tie-ins. Types: − Direct marketing and database agencies maintain and manage large databases of mailing lists as one of their services. Fulfillment centers ensure customers receive product via direct mail or ecommerce. Infomercials promote a brand directly to viewers. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 59  Advertising and Promotion Agencies (4 of 7) Promotion Agencies (continued) Sales promotion agencies design and then operate contests, sweepstakes, special displays, or coupon campaigns for advertisers. − Consumer sales promotions and trade-market sales promotions Event-planning agencies find locations, secure dates, and put together a “team” of people to pull off a promotional event. − Crucial to measure events as a form of IBP. Designers help create create the visual impression of a firm’s advertising materials (including logo design). Public Relations firms manage relationships with different stakeholders like media, community, etc. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 60  Advertising and Promotion Agencies (5 of 7) Advertising and promotion agencies offer a wide range of services. − Most important issue is for advertiser and agency to negotiate and reach an agreement on services being provided before any agency is hired. − Account services entails: ▪ Identifying the benefits a brand offers and the best competitive positioning ▪ Developing a complete plan − Marketing research services involves: ▪ Locating studies that have bearing on a client’s market or advertising and IBP objectives ▪ Account planner: Assigned to clients to ensure that research input is included at each stage of development of campaign materials. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 61  Advertising and Promotion Agencies (6 of 7) Creative and production services: − Creative services develops the concept. − Production services turn the concept into the final product. Media planning and buying services: Contracted for media buying and planning Administrative services − Agencies have personnel departments, accounting and billing teams, and sales staffs that go out and sell the agency to clients. − Most important to clients is the traffic department, which has the responsibility of monitoring projects to be sure that deadlines are met. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 62  Advertising and Promotion Agencies (7 of 7) The way agencies get paid is somewhat different from the way other professional organizations are compensated. − Commissions: Around 15% total amount billed − Markup charge (also called cost-plus): Production cost + Fixed % − Fee system: Hourly rates, or by project − Pay-for-results: Fee based on the achievement of agreed-on results ▪ Tightly specified objectives (e.g., awareness, brand identification, brand feature knowledge among target audiences) ▪ Becoming more prevalent Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 63  External Facilitators Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 64  External Facilitators (1 of 2) External facilitators provide specialized services to advertisers and agencies. Marketing and advertising research firms: − Perform research for advertisers to understand potential market and consumer perceptions of a product or services Consultants are individuals who specialize in areas related to the promotional process. − Three new types: database consultant, website development and management, and integration of information ▪ Web developers help with managing user interface technical aspects. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 65  External Facilitators (2 of 2) Production facilitators offer essential services both during and after the production process. − Provide physical facilities − Directors, production managers, songwriters, camera operators, audio and lighting technicians, graphic artists, photographers, models, producers, video producers, animators, etc. Software firms help advertisers and agencies make the best use of evolving media and technology. − Gather and analyze data related to Web surfing behavior, broadband streaming audio and video, and managing relationships with trade partners Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 66  Knowledge Check 1 Which new type of consultant is particularly useful to an advertiser when planning a direct email campaign? A. Information integration B. Database C. UI D. Website development Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 67  Media Organizations Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 68  Media Organizations (1 of 2) Broadcast: TV, radio, satellite Print: Magazines, direct mail, newspapers, specialty, banners Interactive Media: Internet, interactive broadcast, social media and mobile media, etc. Media conglomerates: AT&T, Comcast, Walt Disney Co., etc. Support media: Billboards, directories, premiums, point-of-purchase displays, brand placement, event sponsorship Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 69  Media Organizations (2 of 2) Target audiences and content marketing: − No audience, no communication. − The audiences for promotional communications, with the exception of household consumers, are also the advertisers who use advertising and IBP communications. − Business and government audiences are key to the success of a large number of firms that sell only to business and government buyers. − Business advertisers are investing heavily in content marketing. ▪ Focus on making and sharing value-added content of interest to the target audience of decision makers. ▪ Content presented to target audiences in multiple media through integration of promotional efforts. ▪ Modern advertising effectiveness now transcends so much more than sales. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 70  Summary Click the link below to review the objectives for the presentation. Link to Objectives Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 71  Lecture 3 The History of Advertising and Brand Promotion Close Scheinbaum, Advertising and Brand Promotion, 9th Edition. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th ©2023 Edition.Cengage. All RightsAll © 2023 Cengage. Reserved. May not be Rights Reserved. scanned, May copied or not be scanned, duplicated, or posted to a publicly accessible website, in whole or in part. copied or duplicated, or posted to a publicly accessible website, in whole or in part. 72  Learning Objectives After reading and thinking about this chapter, you will be able to do the following: 3-1 Describe the main factors that gave rise to advertising. 3-2 Discuss eras in the evolution of advertising in the United States and relate changes in advertising practice to fundamental changes in society and culture—noting how successful ads leverage the social and cultural forces of their day. 3-3 Identify forces continuing to affect the evolution of advertising and integrated brand promotion. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 73  FUN FACT The first-ever written ad was created in 3000 BC by a slaveholder to find the runaway slaves and promote their weapon shop. It was a Papyrus found in the ruins of Thebes, Egypt. Here’s the full transcript translation made by James Playsted Wood: “The man-slave, Shem, having run away from his good master, Hapu the Weaver, all good citizens of Thebes are enjoyed to help return him. He is a Hittite, 5' 2" tall, of a ruddy complexion and brown eyes. For news of his whereabouts, half a gold coin is offered. And for his return to the shop of Hapu the Weaver, where the best cloth is woven to your desires, a whole gold coin is offered.” Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 74  3-1 Factors Behind the Rise of Advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 75  Factors Behind the Rise of Advertising (1 of 3) Advertising came into being as a result of at least four major factors: 1. The rise of capitalism 2. The Industrial Revolution 3. The emergence of modern branding 4. The rise of modern mass media Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 76  Factors Behind the Rise of Advertising (2 of 3) The Rise of Capitalism − Competes for resources − Stimulates demand for goods and services − Attracts capital to the organization in the form of money (or other goods) as payment The Industrial Revolution − Increase in mass-produced goods that required stimulation of demand − Principle of limited liability: Restricts an investor’s risk in a business venture to only their shares in a corporation Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 77  Factors Behind the Rise of Advertising (3 of 3) The Emergence of Modern Branding − Branding: The strategy of developing brand names so that manufacturers can focus consumer attention on a clearly identified item The Rise of Modern Mass Media − With the invention of the telegraph in 1844, a communication revolution was set in motion. − Without the rise of mass media, there would be no national brands and no advertising. − Mass media are supported by advertising. − Media vehicles sell audiences to make money. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 78  Integrated Brand Promotion in Action: Coca-Cola. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 79  Knowledge Check 1 Which of the following national brands was the first to show up on shopkeepers’ shelves in the late 1800s? A. Budweiser B. Coca-Cola C. Ivory D. Maxwell House Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 80  3-2 The Eras of Advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 81  The Eras of Advertising (1 of 12) Preindustrialization Era (pre-1800) Printed advertisements appeared in newsbooks. Advertisements were dominated by simple announcements by skilled laborers. The Era of Industrialization (1800 to 1875) Circulation of the dailies. New opportunities due to the railroads and growing urban centers. No laws or regulations to restrict advertisers. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 82 The expansion of newspapers fostered widespread use of advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 83  The Eras of Advertising (2 of 12) The “P.T. Barnum Era” (1875–1918) Advertising was based on consumer culture. − Consumer culture: Way of life centered on consumption Advertising became a full-fledged industry. Brands were preferred to unmarked commodities. Pure Food and Drug Act: Required manufacturers to list the active ingredients of their products on their labels Social and cultural changes opened up opportunities for advertisers. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 84 The ad shown here illustrates cooperation between the American advertising industry and the U.S. government. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 85  The Eras of Advertising (3 of 12) The 1920s (1918–1929) Advertising found respectability, fame, and glamour. Consumers were instructed how to be modern and avoid the pitfalls of this age. Chain of needs: Needs lead to products that lead to new needs, which is remedied by new products that further lead to newer needs, and so on. Women became primary target. Role of science and technology began to play. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 86 Here is a man with a limited future— if only he had used Lifebuoy. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 87  The Eras of Advertising (4 of 12) The Depression (1929–1941) The Great Depression changed people’s way of thinking about many things. Advertisers responded by adopting a tough, no-frills advertising style. Radio emerged as a new medium. The Wheeler-Lea Amendments to the Federal Trade Commission Act declared deceptive acts of commerce to be against the law. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 88 Look at this ad: it is selling plumbing and never says a word about plumbing. It doesn’t have to. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 89  The Eras of Advertising (5 of 12) World War II and the 1950s (1942 to 1960) Advertised brands were linked with patriotism. Economy and consumption improved. Consumers feared being manipulated by modern science, technology, and subliminal advertising. − Subliminal advertising: Advertising alleged to work on a subconscious level, which influenced consumers to buy things they did not need or want Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 90  Wartime advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 91  The Eras of Advertising (6 of 12) Peace, Love, and the Creative Revolution (1960–1972) Ads started to take on the themes, the language, and the look of the 1960s. Women and other minorities were portrayed in submissive roles. Characterized by the creatives. Advertising became a symbol of consumption itself. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 92  1960s advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 93  The Eras of Advertising (7 of 12) The 1970s (1973–1980) Women and minorities adopt new roles. Self-indulgence was encouraged. Action for Children’s Television: Lobbied the government to limit the amount and content of advertising directed at children. The Federal Trade Commission (FTC) and National Advertising Review Board demanded higher standards of honesty and disclosure from the advertising industry. Growth in communications technology. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 94 Claiming authenticity is tried and true branding, particularly when it is at the center of cultural conversations and social disruption. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 95  1970s advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 96  The Eras of Advertising (8 of 12) The Designer Era (1980 to 1992) Consumption was promoted conservatively. Television advertising was influenced by the rapid-cut editing style of MTV. The E-Revolution Begins (1993 to 2000) Rise of Internet advertising and e-brand promotions. Advertisers started demanding results. − Interactive media: Allow direct measurement of ad exposure and impact Centers of advertising power moved West. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 97 This ad’s tight visual focus, edgy for its day, and few words, all are pretty typical of the 1980s print ad style. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 98  The Eras of Advertising (9 of 12) Consumer Access, Connections, Branded Entertainment, and the Rise of Ad Blockers (2000 to 2020) Dot-com bubble burst—lack of a good Internet advertising revenue model Web 2.0: Uses pull strategy Integration of media: − One medium creates brand awareness. − Another medium pulls consumers. − Another medium engages the consumers. Consumers have easier access to information. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 99  The Eras of Advertising (10 of 12) Consumer Access, Connections, Branded Entertainment, and the Rise of Ad Blockers (2000–2020) (continued) Consumer-generated content (CGC): Consumers can co-create brand messages and brands − Led to this era being called the “post-advertising age.” − Ad blocker software is another reason for the post-advertising age. − Advertisers have to work harder and smarter to attract attention, engage consumers, and make any integrated brand promotion a great experience. Proliferation of business-to-business promotion online Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 100 Is this ad as simpleminded as it seems? Are we missing some greater meaning, or is it just Rock Out = Pepsi? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 101  The Eras of Advertising (11 of 12) Consumer Access, Connections, Branded Entertainment, and the Rise of Ad Blockers (2000 to 2020) (continued) Branded entertainment: Blending of advertising and integrated brand promotion with entertainment − Product placement: The significant placement of brands within films or television programs. ▪ Avoids running into consumer resistance to the ad ▪ Does not have to go through all the ad regulations ▪ Movies viewed by courts as artistic speech, providing more First Amendment protection than ordinary advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 102 It is crucial to measure event sponsorship. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 103  The Eras of Advertising (12 of 12) Business and Advertising in a COVID Era (2020–Current) National campaign focused on staying home. New emphasis on hygiene. Ads moved toward functional messages—service protocols and customer and employee safety. Live entertainment was canceled, halting ad placement in those industries. Unknown if shift to virtual is temporary or a new normal. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 104  Discussion Activity 1 What will the next era in advertising look like? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 105  Discussion Activity 1 Debrief A well-designed app can put information about products and services at the fingertips of millions of smartphone users. 1. What revolutionary ways are advertisers currently using smartphone apps? 2. Can you think of additional ways advertisers could use apps to drive sales while offering value or solving a problem for their customers? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 106  3-3 Forces Affecting the Evolution of Advertising and IBP Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 107  Forces Affecting the Evolution of Advertising and IBP Cyclical nature of history: Flu pandemic in the 1920s and the emergence of Covid-19 Technology: E-commerce and mobile commerce Leveraging contemporary culture: Using it to the advantage of creative advertising and branding Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 108  Summary Click the link below to review the objectives for the presentation. Link to Objectives Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 109  Lecture 4 Social, Ethical, and Regulatory Aspects of Advertising and Promotion Close Scheinbaum, Advertising and Brand Promotion, 9th Edition. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th ©2023 Edition.Cengage. All RightsAll © 2023 Cengage. Reserved. May not be Rights Reserved. scanned, May copied or not be scanned, duplicated, or posted to a publicly accessible website, in whole or in part. copied or duplicated, or posted to a publicly accessible website, in whole or in part. 110  Learning Objectives After reading and thinking about this chapter, you will be able to do the following: 4-1 Understand a balanced perspective of advertising and IBP by identifying both benefits and problems of advertising and promotion and debating key issues concerning their effects on society’s well-being. 4-2 Explain how ethical considerations affect the development and implementation of advertising and IBP campaigns. 4-3 Explain the role of government agencies, consumers, and industry self- regulation for the regulation of advertising and promotion. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 111  The Social Aspects of Advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 112  The Social Aspects of Advertising (1 of 8) Advertising Educates Consumers Pro: Advertising Informs Con: Advertising Is Superficial and Equips consumers to make informed Intrusive decisions Doesn’t carry enough actual product Enhance lifestyles and economic power information Increases awareness of tendencies of Can be intrusive persuasion Can create clutter, causing market Reduces product search time resistance Good for storytelling Elevates important information Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 113  The Social Aspects of Advertising (2 of 8) Advertising Improves the Standard of Living Pro: The Economic Effects of Con: Advertising Wastes Resources Advertising Lower the Cost of and Raises the Standard of Living Products Only for Some Economies of scale (costs less to produce Can be inefficient, wasteful large quantities) Brand differences are trivial Consumers have more choices Only helps widen the gap between rich Competition motivates first to improve and poor products and offer lower-priced brands Speed and reach facilitate the flow of innovations Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 114  The Social Aspects of Advertising (3 of 8) Advertising Affects Happiness and General Well-Being Pro: Advertising Addresses a Wide Con: Advertising Creates Needs Variety of Basic Human Needs Invents unnecessary needs Individuals turn to goods and services to Creates perceived “needs” that strive satisfy basic human needs toward unobtainable standards Advertising can remind us of five types of needs we all share: ▪ Physiological ▪ Safety ▪ Love and belonging ▪ Esteem ▪ Self-actualization Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 115 McDonald’s ad creatively reminding us we are hungry, on the other side body image issues Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 116  The Social Aspects of Advertising (4 of 8) Advertising Affects Happiness and General Well-Being (continued) Pro: Advertising Only Reflects Con: Advertising Promotes Society’s Priorities Materialism Reflects our love for special events – Wants and aspirations distorted “consumption culture” Tendency for conformity and status Did not create the American emphasis on seeking consumption, as it was already there Creates wants and aspirations that are artificial and self-centered Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 117  The Social Aspects of Advertising (5 of 8) Advertising: Demeaning and Deceitful or Liberating and Artful? Pro: Advertisers Are Showing Much More Sensitivity Con: Advertising Diverse world requires diversity in ads Perpetuates Stereotypes Stereotyping less prevalent now Often feature those who look like members of their target Changing stereotypes about older people audience Changing stereotypes of people with disabilities Portrayals of older people, Becoming more inclusive of LGBTQ+ consumers people of color, and women Beauty advertisers more inclusive to people besides women are of particular concern Helping counteract gender stereotypes Women often cast as objects Redefine constructs like beauty of desire or depicted unrealistically Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 118  Inclusive advertising. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 119 Advertisers today realize the diverse reality of consumers’ lives. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 120  The Social Aspects of Advertising (6 of 8) Advertising: Demeaning and Deceitful or Liberating and Artful? (continued) Pro: Advertising Is a Source Con: Advertising Is Often Offensive of Fulfillment and Liberation Appeals are sometimes in poor taste People enjoy the modern Some say can be rude, crude, and sometimes lewd conveniences that liberate us Taste is a personal and inherently subjective evaluation from fouler facets of everyday life Advertisers caught in controversy because small segment of population is offended Gives rise to “democratization” of goods What is acceptable and what is offensive changes over time in a culture Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 121  Objectification Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 122  The Social Aspects of Advertising (7 of 8) Advertising: Demeaning and Deceitful or Liberating and Artful? (continued) Pro: Advertising Is Democratic Art Con: Advertisers Deceive Via Just as much art as it is business Subliminal Stimulation Critiques and simultaneously celebrates Controversy and confusion over subliminal consumer culture communication Some companies invite submissions or Effects are short-lived and found only in feedback from consumers on ads that they labs like Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 123  The Social Aspects of Advertising (8 of 8) Advertising Has a Powerful Effect on the Mass Media Pro: Advertising Fosters a Diverse Con: Advertising Affects Programming and Affordable Mass Media Advertisers shape the content of what they Can be good for a more informed promote, sometimes unethically democracy Advertisers tend to buy airtime during Allows network TV, radio, websites, and programs that draw large audiences social media to be free Programs dealing with controversial issues Provides invaluable exposure to issues may have trouble getting advertisers Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 124  Polling Activity Advertising is clearly an immensely powerful instrument for the elimination of ignorance. ❑Agree ❑Disagree ❑Not Sure Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 125  The Ethical Aspects of Advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 126  The Ethical Aspects of Advertising (1 of 4) Ethics–Moral standards and principles against which behavior is judged. Related aspects interact with social and legal considerations. Truth in Advertising Most fundamental ethical issue has to do with deception (Making false or misleading statements in an advertisement). Puffery is legal because it is a superlative description (like “Number One” and “Best in the World” in advertisements) and understood to be exaggerated. “Small print” that accompanies contests and sweepstakes is often challenged by consumers. Consumer watchdog groups try to help bring attention and solutions to people receiving free product in exchange for a review—many people do not disclose this partnership. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 127  Ethical Aspects of Advertising (2 of 4) Advertising to Children Concerns: − Promotes superficiality − Creates values found in material goods and consumption − Influences demands for everything ▪ Creates child–parent conflict, called pester power. − TV programs, videos, and films aimed at children are just long commercials ▪ Children’s Television Act: Restricts advertising on children’s programming Arguments: − Children understand what advertising is, gain a healthy skepticism for advertising, and clearly recognize its intent. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 128  Ethical Aspects of Advertising (3 of 4) Advertising Controversial Products Concerns: − Advertising for tobacco, alcoholic beverages, gambling and lotteries, and firearms makes dangerous and addictive products appealing. − Adolescents are targeted. Arguments: − Children are aware that the products are intended for adults. − Advertising cannot create primary demand in mature product categories. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 129  Ethical Aspects of Advertising (4 of 4) Advertisements are capable of stimulating demand for a brand within a product category. Product category demand is the result of: − Social and cultural trends − Economic conditions − Technological change − Other broad influences on consumers’ needs and lifestyles Complex issues: − Basis for the claim of vulnerability − Basis for categorizing controversial products Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 130  Discussion Activity Why do you think advertising directed at children is the focal point of so much attention? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 131  Discussion Activity Debrief Do you think kids are particularly vulnerable—or do they know what advertising is all about? Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 132 The Regulatory Aspects of Advertising Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 133  The Regulatory Aspects of Advertising Consumers, industry organizations, and government bodies regulate advertising by shaping and restricting the process. Deception and Unfairness: − Federal Trade Commission (FTC) specifies three elements essential in declaring an ad deceptive: ▪ Representation, omission, or practice is one that is likely to mislead the consumer. ▪ Must be judged from the perspective of a consumer acting reasonably. ▪ Must be a “material” one. − Unfair advertising practices are those not reasonably avoidable by consumers and not outweighed by the countervailing benefits to consumers or competition. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 134  The Regulatory Aspects of Advertising Competitive Issues: − Vertical cooperative advertising occurs when a wholesaler and retailer share advertising expenses. − Comparison advertisements present a comparison between a seller’s brand and a competitor. − Some firms are powerful in their use of advertising that—by virtue of their advertising spending—monopoly power can become a problem. Advertising to Children: − Children’s Advertising Review Unit: Created by Council of Better Business Bureaus with guidelines for advertising directed at children − Children’s Online Privacy Protection Act (COPPA): Regulates websites directed at children under 13 Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 135  The Regulatory Aspects of Advertising Advertising regulations can vary dramatically from country to country. U.S. Government Regulation: − FTC Legislative Mandates: Regulate advertising that could be misleading to consumers − FTC’s Regulatory Programs and Remedies: Regulatory programs and remedies help enforce legislative mandates in specific situations State regulations- − No extensive policing powers over the promotional activities of the firms. Its a federal gov issue − The attorney general’s office is responsible for investigating questionable promotional practices. − The National Association of Attorneys General monitors advertising and shares its findings. Industry Self-Regulation: − Self-regulation is said to show government intervention is not necessary. − Evaluate content and quality of promotional activities specific to their industries. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 136  The Regulatory Aspects of Advertising in India The Principles of the Laws on Advertising in India Truthfulness and Non-Deceptiveness. Fair Competition. Adhering to Intellectual Property (IP) Caring the Target Audience. Data Privacy Regulations. Credibility in Health Claims and Product Endorsements. Respecting Cultural Sensitivities. Social Responsibility and Environmental Impact. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 137  The Regulatory Aspects of Advertising in India It’s the Ministry of Information and Broadcasting and the Advertising Standards Council of India (ASCI) who stand as key players. ASCI- The Advertising Standards Council of India (ASCI) is a voluntary, non-profit organization that enforces the ASCI Code, which is a set of guidelines for ethical advertising practices. The ASCI Code applies to all advertisements directed at consumers in India, regardless of where they originated. The ASCI Code requires advertisements to be legal, truthful, and fair, and not harmful or hazardous. CCPA- The Central Consumer Protection Authority (CCPA) is a regulatory body that works with the ASCI to enforce advertising regulations. The CCPA has the power to impose fines and penalties for non-compliance. Close Scheinbaum, Advertising and Integrated Brand Promotion, 9th Edition. © 2023 Cengage. All Rights Reserved. May not be scanned,