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ADPR 3100: EXAM 1 - Flashcards
What is Advertising? |
form of non-personal communication
transmitted through media
usually paid for
usually persuasive
about products (goods, services, ideas)
usually identified sponsor |
Al Lasker |
"salesmenship in print driven by a reason why."
one of the most influential men
adv-giving lots of facts and reasons
|
McCann-Erickson |
"The truth well told."
changes-becoming more emotional
1950's |
Shelly Lazarus |
CEO of Ogilvy and Mather
"We're in the brand transformation business."
to change what we think about the product |
Marketing Communications |
Advertising-creating awareness and interest
Public Relations-creating exposure for your client
Sales Promotion-incentives to take action NOW ex. coupons
Personal Selling-most effective; face-to-face traditional sales
Direct Response-respond directly to the marketer
Sponsorship-linking to a meaningful cause or event
Digital/social-internet, mobile, facebook |
Evolution of Advertising |
PRINT (1700s) --> Radio (1920s) --> TV (1940s) --> online to mobile (1980s to present) |
Eras of Advertising |
Pre-marketing
Mass Communication
Research
Interactive |
Pre-Marketing Era |
primarily symbols and signs; town criers, tablets (clay)
First English AD 1472; First AD in US newspaper 1704
early ads promoted migration to US (not very exciting)
Ben Franklin in the "Advertising Hall of Fame" for buying the Pennsylvania Gazette and made FULL pages of Ads (1750s)
early ads were factual and formative
low technology, no extensive travel options (lived and died where you were born), Agrarian lifestyles (lived in small communities), commodities (general market-sugar, tobaco, flour) vs. branded goods |
Mass Communication Era |
everything comes together: mass transportation, production, media, and markets
railroads; boats bringing over more people and the market evolved>>concentrated market
package and seal goods allowing you to brand your products and ship them safely
Penny Press-Rotary Press (1830s) MASS production; offered news for cheap, made advertisers pay for space; localized newspapers; scandalous content (ex. TMZ) |
Mass Comm. Era Cont... |
magazines take off-serving national and regional markets appeal
1841= 1st ad person-Volney Palmer; newspaper broker=buy a page for cheap and sell parts to individual advertisers to make a profit
1869= 1st ad agency-NW Ayer & Sons; introduced commission system (15%) and full-service agency; made money based on media placement
Magazines go national=Postal Act (1879) cheap postage
Ladies Home Journal-1 million subscribers by 1900 |
MCE: Big Agencies ruled the day |
two dominated US pre-ww2
Lord and Thomas
J. Walter Thompson |
Lord and Thomas |
Albert Lasker
invented the soap opera
targeted Lucky Strike to women
needed a reason "why"
Emphasized "hard selling"
John E. Kennedy "salesmanship in print driven by a reason why." -just like a sales presentation
Claude Hopkins tookover 1920s; copywriter; wrote book 'scientific advertising' |
J. Walter Thompson |
Stanley Resor (strategist) and wife Helen Landsdowne (copywriter) bought in 1916
took small agency and 'blew it up' to the first international/global agency-London 1927
top agency in the 1920s
suggestive ads
emphasized emotional appeals (visuals)
emphasized through psychology and suggestion
emphasized research |
Research Era |
1920-2000
first talk of "positioning"
Industrial optimization
Golden Age of Radio & TV
Database marketing takes off
Mergers on Mad Ave |
Radio |
1920s-1950s "golden age" for radio
true national medium-connected rural areas to the rest of the nation
Beginning of NBC (formed by GE, RCA, and Westinghouse-all produced equipment), CBS, and ABC
First ad was a 10 minute talk about RE firm for $50
Sponsorships at first that quickly morphed into commercials (e.g., Kraft Music Hall)
1920s = “Reach for a Lucky instead of a sweet” successfully sold cigarettes to women |
Dr. John Watson |
1878-1958
PhD, Psychologist
Father of “Behaviorism”
Shenanigans at Johns Hopkins in 1920
VP at JWT by 1924
Brought research expertise to advertising |
The "Creative Revolution" |
1950s and 60s
Bill Bernbach
Eschewed quantitative research, the “hard sell,” and “speaking to the mind.”
Emphasis on “intuition” and aesthetic appeal
Paired writers and artists
Be creative above all else. |
DDB's VW campaign |
Doyle Dane Bernbach
Ad Age’s “Most Influential” campaign of the century
Began in 1960
Took VW from “zero” to top import |
TV's Golden Age |
quickly supplanted other media: 1946 7,000 TV homes in US; 1952 17,000,000; today over 110 million
dominated by "big three"-NBC, ABC, CBS
The 30-second spot
by 1958, dominant form of home entertainment
Last 50 years: 2400 hours/year watched; 7 hours/day; #2 activity; #1 transmitter of culture |
Interactive Era |
year 2000-present
now a dialog vs. monolog
interactive nature of new media
diminishment of 30-second spot
Hot new areas: social networks and mobile |
Today's issues |
Globalization
“Permission” marketing
ROI = Return on Investment-->John Wanamaker (a famous retailer from the old days) said, “Half the money I spend on advertising is wasted...The problem is, I don't know which half.”
Internet advertising and key-word searches offer precise measurement.
Must be more inventive as tastes/habits shift
Clutter! |
How does Advertising Work? |
MR about product
connects to Target Audience
it's what we use to let them know what we have to offer (signage/packaging/price, PR, Sales digital/social, Promos/sweepstakes/events) |
Hierarchy of Effects |
lots of variations--AIDA model
model of how persuasion can take place
explains how people come to buy things (and how advertising works)
get ATTENTION
generate INTEREST
motivate/stir up emotions DESIRE
feel they need to take ACTION
also can be awareness, comprehension, conviction, action |
Funnel Metaphor |
Awareness > opinion > Consideration > Preference > Purchase
Awareness > Attitude > Favorability > intent > Preference
both start with large number of potential consumers and each level weeds out some until you get to the bottom: the ones left want to (will) buy your product |
Advertising Strengths |
Create Awareness
breaking through the clutter
getting/maintaining brand in memory bank
2. Building Brands
giving/shaping a products identity
communicating a products utility
establishing emotional connection |
Awareness |
Breaking through clutter to make people aware of your product/service
1. No previous awareness
ad spiral: pioneering or competitive stages
2. Previous Awareness
goal: to maintain "top-of-mind" awareness
Ad spiral: retentive stage; competitive stages |
what grabs our attention? |
Images
bikinis, beagles, and babies
people like looking at people
animals
Emotional info.
fear evoking, sensual, music
Calling People Out
speak to peoples needs, interests, biases, desires, values
Theory of Selective Perception
News; New information |
Does Awareness matter? |
market share is linked to awareness levels
"just getting noticed will help you reach people interested in your product" and "keep people thinking about your product"
"Advertising creates awareness that increases selling. You have to make money from it." |
Building Brands |
branding- giving/shaping a product's identity
Shelly Lazarus- "we're in the brand-transformation business and that's where we're at our best..."
Positioning-perceptions in the minds of consumers about the product relative to the competition; advertising can influence what the product means to consumers; can contribute to a product's personality |
Brand Building with Info. Communicating "utility" |
teaching/educating/persuading how a brand can fulfill needs and wants
much advertising is about proving or demonstrating how brands fulfill needs
Utility: the ability of a product to fulfill a need or solve a problem (can help us do something practical or solve problems eg. faster, save time/money, etc.)-gives us an advantage |
Brand Building with Feelings connecting brands with emotion |
"Emotion" is the buzzword of the advertising industry
color everything we do/think
advertisers try to associate their products with compelling emotions
drives our behavior the most
discrete emotions: by imagery, music, etc. |
Fear and Advertising |
"Fear factor gets Brink's buzz--and a sales boost"
ex. home security systems protect against two out of every three burglaries; crimes increase during recessions
-cut costs (spent less for ads) |
Consumer "brand" scan |
*brand awareness
*info. about the brand
*emotions
*brand's personality
*how it compares to competition |
Celebrity "seeding" |
placement is extremely common
awareness/brand meaning/endorsement
seeding-ex. you see a celeb. wearing ugg boots..they become the new "must have" item |
Business of advertising |
Suppliers
Media
Advertisers
Ad Agency |
Suppliers |
those that contribute specialized services to get advertising produced
includes printers, film/video production houses, marketing research firms, web designers, photographers, etc. (behind the scenes) |
Media |
1/2 of advertising industry
advertisers need media channels
print (newspapers, magazines)
electronic (tv, cable, radio)
Digital interactive (internet, mobile)
out-of-home (outdoor, transit)
direct mail
promotional products (to raise awareness) |
Advertisers |
local, regional, national, multinational, global ex. state or North America or China, etc.
advertising done inhouse (mainly fashion), outsourced (hire agency), or a hybrid
invest $500 billion annually |
Top Advertisers |
Global: Procter and Gamble
beauty and grooming
household care products
sustainability > every product brand has to be associated with a cause
US: AT&T
Top category: Retail (then auto)
Top holding company: WPP (largest)
Top independent agency: Richards group |
The Advertising Agency |
independent organization of creative types and business folks who specialize in developing and preparing marketing and advertising plans, ads, and promotional tools
hundreds in US (most large agencies are owned by 6 large holding companies)
range from local to international
Range from full-service to specialized (Boutique agencies-planning or creativity or placement only)
range from 1 to many product types |
Advantages of Agencies |
offer outside, objective perspective
have close connections with suppliers
media expertise saves clients time and money
Advertisers only use agencies out of self interest.
Agencies pay for themselves. |
The "Pitch" |
one of the most important aspects of agency life
pitch= a "new business" presentation
clients put their accounts into "review" (invite agencies to bid for their account; agencies invest much time and money into the pitch) |
Holding Companies |
can hold more than one brand within the same category
if you use a holding company, you can use multiple agencies
if you hire an independent agency then you can only use them |
Minorities on Mad Ave. |
multiculturalism>problem on madison avenue (got sued for under representing minorities)
Biz believes too little multiculturalism in-house (set targets and strategically recruit eg. BBDO)
WHY IMPORTANT?
top 3 minorities=20% of total US buying power
hispanic buying power growth 300%
35% US minority population
Cultural Sensitivity-creative teams can overlook important cultural cues in a campaign (by accident) |
Typical Jobs within Agency |
Account Executives
Account Planners and Researchers
Creatives
Media planners and buyers |
Account Executives |
aka the "AE" or "suits"
link agency and client (interact with client; need to look professional)
Draw up objectives and goals (working on goals and strategies)
Pitch new business |
Account Planners |
relatively new function
consumer/customer focused (interests, values, goals, tastes, likes, dislikes, etc.)
voice of the agency (focus groups, surveys, in depth interviews)
conduct/analyze research to find out what the consumer wants (makes sure it shows up in the advertising) |
Creatives |
people who take the goals (AE) and research (planners) and turn it into creative messages
typical jobs: copywriters, art directors, and creative directors
they get the most attention and win the awards |
Media Planners and Buyers |
decide how to best reach the target market
bulk (80%) of ad campaign money goes to media purchases
connect the agency to the media outlets |
Pioneering stage |
the advertising stage of a product in which the need for such a product is not recognized and must be established or in which the need has been established but the success of a commodity in filling that need has to be established
purpose: to educate consumers about the new product or service; to show that people have a need they did not appreciate before and that the advertised product fulfills that need; to show that a product now exists that is actually capable of meeting a need that already has been recognized but previously could not have been fulfilled
stresses what the product can do, offer, or provide that could not have been done, offered, or provided by any product before |
Competitive Stage |
stage a product reaches when its general usefulness is recognized but its superiority over similar brands has to be established in order to gain preference |
Retentive stage |
reached when its general usefulness is widely known, its individual qualities are thoroughly appreciated, and it is satisfied to retain its patronage merely on the strength of its past reputation
most profitable for the product |