ADV 205 Lecture 4 Outline of Last Lecture I Issues in advertising II Advertising and the law III Advertising and the FTC IV FTC rules and regulations Outline of Current Lecture V Government agencies VI Social responsibility and self regulation VII Organized groups VIII Self regulation IX The advertising industry X Key players the target audience XI Advertisers XII Advertising and large companies Current Lecture 1 22 14 Government Agencies Federal Trade commission FTC The Food and Drug Administration FDA o Oversees package labeling ingredient listings and advertising for food and drugs o Watchdog for drug advertising o YAZ contraceptive they were accused of doing inadequate advertising FDA got involved and made them issue statement Federal Communications Commission FCC o Deals with communications such as radio and TV o Can issue and revoke licenses to broadcasting station o Indirect control over broadcast o They control licenses can take away and grant very easily o Can ban messages that are deceptive or poor taste Patent and Trademark Office protect things like trademarks Olympics sponsors need to be able to use the 5 rings State and local government system o Michigan fairly aggressive with accessibility and consumer protection rights These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Scanner Bill if a mistake is made up to 10 times the amount can be refunded Social Responsibility and Self Regulation Self discipline Media groups will make sure their ads are acceptable o Television o Magazines Time magazine has a different level of acceptability than playboy o Newspapers o Radio PETA o Many of their ads get rejected Organized Groups National Advertising Review Council NARC o National Advertising Division NAD First level monitor advertising to make sure its acceptable Gives advice to agencies when asked People file complaints to them they investigate the complaint The publish every thing they do so if the company does not respond favorably they will look bad National Advertising Review Board NARB o When a company doesn t agree to change advertisement they go to this second step o Once case is forwarded to this board NARB either rejects or accepts appeal Advertiser will either cooperate or they go to the government This system was set up in the 70 s to correct problems in advertising themselves Set up into a two tier system NAD and NARB Self Regulation Most advertisers and agencies have in house review procedures Every element of proposed ad should be evaluated by an in house committee American Association of Advertising Agencies AAAA Summary Advertising effects the economy Advertising is something other than speech Advertising is heavily regulated within society CHAPTER 3 The Advertising Industry Advertisers Advertising Agencies Suppliers Media Key Players Target Audience The desired audience for the advertising message Data gathering technology improves accuracy of information about customers Advertisers must recognize the various target audiences they are talking to and know as much about them as possible Advertisers Uses advertising to send out a message about its products Initiates effort by identifying a problem that advertising can solve Approves audience plan and budget Local Advertisers Dealers or local franchises Stores with branded merchandise Specialty business Government and non profit Focus Product advertising Institutional advertising Classified advertising Cooperative advertising seeks to Build the manufacturers brand image Help distributors dealers or retailers make more sales Differences between national and local advertising National Local Focus o Brand o Market Share o Strategies o Markets Long term time frame 5 10 million Use of many specialist Focus o Location o Volume o Tactics o Customers Short term time frame Less than 1 million Use of few generalists Advertising Large Companies Centralized Efficiency Continuity Decentralized Flexibility Competition among company brands Global Advertising Standardized Global Brands Efficiency Recognition Does not always work o Got Milk The concept of milk is different there they didn t translate right and it ended up asking if people were lactating o Gerber baby Took products into Africa gave baby a cleft lip Put packages out and different consider that lower literacy rate there Standard practice there is to put picture of what is inside Localized Based on differences in each country or culture Relevance Understanding Most companies will mix strategies