2 9 15 9 32 PM ComStrat 1 12 15 read syllabus blackboard learn wsu edu 1 14 15 Advertising Defining advertising Inform Persuade Remind Non Personal Communication From an identified sponsor Evolving definition Past Why we study advertising o Limited to purchased time space in media vehicles It s almost everywhere We re exposed to a few thousand branded messages each day Growing number of locations What ad agencies do Sell o Products o Services o Ideas Offer holistic services o Other forms of communication Integrated marketing communication IMC approach o Coordinating communication efforts History of Advertising Free market Self interest Complete information Many buyers sellers Absence of externalities Preindustrial Age 19th century Need medium Product demands increased Carved signs What lead to advertising today Paper 1275 Printing press 1440s 1st ad selling prayer book 1472 Benjamin Franklin 1700s Made ads more readable o Headlines o White space o 1st to use illustrations Industrializing age Had machines to mass produce good 1st time cost less to buy than make certain things Often selling to wholesale not consumers Business of advertising Volney Palmer 1841 o Sold space in newspaper 1st agency Francis Ayer 1869 Ad agency that planned created and executed ad campaigns 1892 had copy debt copyright What s happening Industrial age Magazing ads starting to be used Basic needs met by industry Commodity markets saturated New brands luxury convenience goods Radio TV available o New ways to advertise Product differentiation market segmentation Global interactive age New ways to reach consumers o Internet o Social media o Video games o Text messaging 1 16 15 Controversies of Advertising Are ads deceptive Most common criticism o Puffery be proven o Legally Aims to sell products but also effects economy and society Isn t journalism education or entertainments although often performs these tasks Inflate own position Use of exaggerated often suggested claims but cannot Only factually false or conveying a false impression Minorities women immigrants the elderly etc Why use them o In general it is easier to rely on these pre set ideas notions of Ethical advertising doing what is morally right in the given situation Social responsibility doing what society views as best for people Stereotypes others Social responsibility Advertising ethics What is acceptable for the group society Personal values Advertising to children o Children s Advertising Review Unit Ethical issues o Vulgarity obscenity o Misleading information o Puffery o Stereotypes o Racial issues o Controversial products follow Non government regulation Better business bureau National advertising review council Regulation by the media Regulation by consumer groups Regulation by the media TV Radio Magazines o Broadcast Standards Department Self regulation Alcohol advertising is an example of this Each type of alcohol distilled spirits beer etc has a code they Newspapers 1 26 15 Agencies and the Industry Key groups in ad industry on exam Advertisers clients o Most likely the people paying your salary Looking for a job Follow the trade press Who just won new accounts Who just lost them What accounts are up for review Ad agencies o Specialize in planning preparing and or placing ads o Many but not all are owned by holding companies o Why Control influence over subsidiaries Allows stepping outside of Traditional ad boundaries Synergy whole sum of parts Monetary External facilitators suppliers Tax consolidation Distribution of losses Profit o Independent agencies SS K McKinney Media Organizations o Sell advertising time space o Sometimes housed in a full service ad agency o Typically operate as a separate function External facilitators o Provide services to ad agencies Research firms art studios design firms web designers film video companies iPad iPhone Facebook app developers Sometimes agencies partner together to complement offerings Often agencies under the same holding company Types of agencies Full service promotion General consumer o Can serve clients and all areas of communication and o Widest variety of accounts focuses on consumer accounts companies that make good purchased be consumers Business to business o Markets products to other businesses Local vs regional and national agencies Example o Havas Worldwide Owns full service agencies and specialized agencies Specialized agencies In house agencies Getting paid Traditionally bases on amount spent n media for a campaign o 15 commission from media buys o Paid from media outlets to agency Today o Mark ups o Fees Flat fee or hourly based o Performance based compensation o Retainers Agency of Record AOR Account Management Positions o Group Account Director o Account Director o Account Supervisor o Account Executive o Assistant Account Executive o Manage client relationships o Strategy What they do marketing perspective Account Planning What they do o Know the consumer Identify product benefits target audiences develop advertising plan o This holistically about the client s business from an integrated o Research o Brand development and positioning o Develop creative briefs Document about what you know about the product Creative Positions o Creative Director o Associate Creative Director o Art Director o Copywriter What they do o Turn strategy into communications o Develop ad copy and visual designs of campaign o Create the big ideas o Focus on the creative process Media Positions o Media Strategist o Media Planner o Media Buyer What they do o Determine the media strategy o Plan the media buy o Negotiate on behalf of the client Production Studio Positions o Producer o Studio Manager o Graphic Designer o Traffic What they do 1 30 15 Understanding the Consumer Exam Friday 2 4 1 3 and 4 Communication Models Traditional Model Updated Model advertisers o Two way o Non linear What Influences behavior o Manage production of each piece of communication o Select images chose fort sizes oversee printing filming and recording liaison between media outlets o Advertisers talked at consumers o One way o Advertiser had communication power o Advertisers talk to consumers and consumers talk to The rules a group uses to determine appropriate values beliefs Interpersonal Influences o Family o Society o Culture subculture Social Norms attitudes ad behaviors May be explicit or implicit Want to be like others Maslow s Hierarchy of Needs Physiological Golf lessons Safety Luxury car Social Jewelry Esteem Life