Flashcards
Chapter 11
Cards in this deck (61)
- 1To distinguish their approach from the commercialism of newspapers, early magazines refused to carry advertisements. By the mid-1800s, though, most magazines contained ads and most publishers started magazines hoping to earn advertising dollars.facts
- 2Before the Industrial Revolution, 90 percent of Americans lived in isolated areas and produced most of their own tools, clothes, and food. The minimal advertising that did exist usually featured local merchants selling goods and services in their own commu- nities.facts
- 3The first American advertising agencies were newspaper space brokers, individuals who purchased space in newspapers and sold it to various merchants. Newspapers, accustomed to a 25 percent nonpayment rate from advertisers, welcomed the space brokers, who paid upfront. Brokers usually received discounts of 15 to 30 percent but sold the space to advertisers at the going rate.facts
- 4The first full-service modern ad agency, N. W. Ayer & Son, worked primarily for advertisers and product companies rather than for newspapers. Opening in 1869 in Philadelphia, the agency helped create, write, produce, and place ads in selected newspapers and magazines. The tradi- tional payment structure at this time had the agency collecting a fee from its advertising client for each ad placed; the fee covered the price that each media outlet charged for placement of the ad plus 15% commission for the agencyfact
- 5During the mid-1800s, most manufacturers served retail store owners, who usually set their own prices by purchasing goods in large quantities. Manufacturers, however, came to realize that if their products were distinctive and associated with quality, customers would ask for them by name. This would allow manufacturers to dictate prices without worrying about being undersold by stores’ generic products or bulk items.facts
- 6Like many ads today, nineteenth-century advertisements often created the impres- sion of significant differences among products when in fact very few differences actually existed. But when consumers began demanding certain products—either because of quality or because of advertising—manufacturers were able to raise the prices of their goods. With ads creating and maintaining brand-name recognition, retail stores had to stock the desired brands.facts
- 7One of the first brand names, Smith Brothers, has been advertising cough drops since the early 1850s. Quaker Oats, the first cereal company to register a trademark, has used the image of William Penn, the Quaker who founded Pennsylvania in 1681, to project a company image of honesty, decency, and hard work since 1877. Other early and enduring brands include Campbell Soup, which came along in 1869; Levi Strauss overalls in 1873; Ivory Soap in 1879; and Eastman Kodak film in 1888.facts
- 8Product differentiation associated with brand-name packaged goods represents the single biggest triumph of advertising. Studies suggest that although most ads are not very effective in the short run, over time they create demand by leading consumers to associate particular brands with quality.facts
- 9By the end of the 1800s, patent medicines and department stores accounted for half of the revenues taken in by ad agencies. Mean- while, one-sixth of all print ads came from patent medicine and drug companies.facts
- 10Such ads ensured the financial survival of numerous magazines as “the role of the publisher changed from being a seller of a product to consumers to being a gatherer of consumers for the advertisers.facts
- 11abundance of inexpensive packaged consumer goods.7 The companies that produced those goods—Procter & Gamble, Colgate-Palmolive, Heinz, Borden, Pillsbury, Eastman Kodak, Carnation, and American Tobacco— were some of the first to advertise, and they remain major advertisers todayfacts
- 12The demand for newspaper advertising by product compa- nies and retail stores significantly changed the ratio of copy at most newspapers. While newspapers in the mid-1880s featured 70 to 75 percent news and editorial material and only 25 to 30 percent advertisements, by the early 1900s more than half the space in daily papers was devoted to advertising.facts
- 13As U.S. advertising became more pervasive, it contributed to major social changes in the twentieth century. First, it signifi- cantly influenced the transition from a producer-directed to a consumer-driven society.advertise influence
- 14Second, advertising promoted technological advances by showing how new machines, such as vacuum cleaners, washing machines, and cars, could improve daily life. Third, advertising encouraged economic growth by increasing sales.facts
- 15By the early 1900s, advertisers and ad agencies believed that women, who constituted 70 to 80 percent of newspaper and magazine readers, controlled most household purchasing decisions. (This is still a fundamental principle of advertising today.)facts
- 16Criticism of advertising grew as the industry appeared to be dic- tating values as well as driving the economy. To promote a more positive image, the industry developed the War Advertising Council—a voluntary group of agencies and advertisers that organized war bond sales, blood donor drives, and the rationing of scarce goods.facts
- 17The early 1900s saw the formation of several watchdog organizations. Partly to keep tabs on deceptive advertising, advocates in the business community in 1913 created the nonprofit Better Business Bureau, which now has more than one hundred branch offices in the United States.facts
- 18advertisers wanted a formal service that tracked newspaper readership, guaranteed accurate audience measures, and ensured that papers would not over- charge ad agencies and their clients. As a result, publishers formed the Audit Bureau of Circula- tions (ABC) in 1914 (now known as the Alliance for Audited Media).fact
- 19Established in 1917, the American Association of Advertising Agencies (AAAA), for example, tried to minimize government oversight by urging ad agencies to refrain from making misleading product claims.facts
- 20Until the 1960s, the shape and pitch of most U.S. ads were determined by a slogan, the phrase that attempts to sell a product by capturing its essence in words.facts
- 21By the mid-1980s, the visual techniques of MTV, which initially modeled its style on advertising, influenced many ads and most agencies. MTV promoted a particular visual aesthetic—rapid edits, creative camera angles, compressed narratives, and staged performances.facts
- 22, the Internet and multimedia devices, such as computers, mobile phones, and portable media players, have had a significant impact on visual design in advertising. As the Web became a mass medium in the 1990s, TV and print designs often mimicked the drop-down menu of computer interfaces. In the twenty-first century, visual design has evolved in other ways, becoming more three-dimensional and interactive, as full-motion, 3-D animation becomes a high-bandwidth multimedia standard.facts
- 23—large ad firms that formed by merging several agencies and that maintain regional offices worldwide—mega-agencies
- 24devote their talents to only a handful of select clients.boutique agencies
- 25By 2014, the three mega-agencies were Publicis Omnicom Groupe, WPP, and Interpublicfacts
- 26Structure of Ad agenciesTraditional ad agencies, regardless of their size, generally divide the labor of creating and main-
taining advertising campaigns among four departments: account planning, creative develop-
ment, media coordination, and account management. Expenses incurred for producing the
ads are part of a separate negotiation between the agency and the advertiser. As a result of this
commission arrangement, it generally costs most large-volume advertisers no more to use an
agency than it does to use their own staff. - 27The account planner’s role is to develop an effective advertising strategy by combining the views of the client, the creative team, and consumers. Consumers’ views are the most difficult to understand, so account planners coordinate market research to assess the behaviors and attitudes of consumers toward particular products long before any ads are created.facts
- 28The earliest type of market research, demographics, mainly studied and documented audience members’ age, gender, occupa- tion, ethnicity, education, and income.facts
- 29By the 1960s and 1970s, advertisers and agencies began using psychographics, a research approach that attempts to categorize consumers according to their attitudes, beliefs, interests, and motivations. Psychographic analysis often relies on focus groups, a small-group interview technique in which a moderator leads a discus- sion about a product or an issue, usually with six to twelve people. Because focus groups are small and less scientific than most demographic research, the findings from such groups may be suspect.facts
- 30(values and lifestyles) Using questionnaires, VALS researchers measured psychological factors and divided consumers into types. VALS research assumes that not every product suits every consumer and encourages advertisers to vary their sales slants to find market niches.facts
- 31The most recent system classifies people by their primary consumer motivations: ideals, achievement, or self-expression. The ideals-oriented group, for instance, includes thinkers—“mature, satisfied, comfortable, and reflective people who value order, knowledge, and responsibility.”facts
- 32are successful, sohisticated, takecharge eole with high selfestee and abundant resources. They exhibit all three riary otivations in varying degrees. They are change leaders and are the ost recetive to new ideas and technologies.innovators
- 33Thinkers are otivated by ideals. They are ature, satisfied, cofortable, and reflective eole who value order, knowledge, and resonsibility. They tend to be well educated and actively seek out inforation in the decisionaking rocessthinkers
- 34They are conservative, conventional eole with concrete beliefs based on traditional, estab lished codes: faily, religion, counity, and the nation. Many Believers exress oral codes that are deely rooted and literally interreted.believers
- 35Because they are otivated by achieveent, Strivers are concerned about the oinions and aroval of others. Money defines success for Strivers, who don’t have enough of it to eet their desires.strivers
- 36have goaloriented lifestyles and a dee coitent to career and faily. Their social lives reflect this focus and are structured around faily, their lace of worshi, and work.achievers
- 37Makers are otivated by selfexression. They exress theselves and exerience the world by working on it—building a house, raising children, fixing a car, or canning vegetables—and have enough skill and energy to carry out their rojects successfully.makers
- 38they seek variety and exciteent, savor ing the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sorts, outdoor recreation, and social activities.experiencers
- 39For television, the creative department develops a storyboard, a sort of blueprint or roughly drawn comic-strip version of the potential ad. For digital media, the creative team may develop Web sites, interactive tools, flash games, downloads, and viral marketing—short videos or other content that (marketers hope) quickly gains widespread attention as users share it with friends online, or by word of mouth.Facts
- 40Ad agency media departments are staffed by media planners and media buyers: people who choose and purchase the types of media that are best suited to carry a client’s ads, reach the targeted audience, and measure the effectiveness of those ad placements.media coordination: planning and advertising
- 41Along with commissions or fees, advertisers often add incentive clauses to their contracts with agencies, raising the fee if sales goals are met and lowering it if goals are missed.facts
- 42saturation advertising, in which a variety of media are inundated with ads aimed at target audiences.facts
- 43The Super Bowl remains the most expensive program for purchasing television advertising, with thirty seconds of time costing $4 million in 2013.facts
- 44______ are responsible for bringing in new business and managing the accounts of established clients, including overseeing budgets and the research, creative, and media planning work done on their campaigns.account executives,
- 45interstitials, which pop up in new screen windows as a user clicks to a new Web page. Other forms of Internet advertising include classified ads and e-mail ads. Unsolicited commercial e-mail—known as spam—now accounts for more than 85 percent of e-mail messages.facts
- 46In the United States, the Internet accounted for 19.1 percent of ad spending in 2012, and in that year became the second-largest advertising medium, behind television.facts
- 47Perhaps the biggest advantage—and potentially the most disturbing part for citizens—is that marketers can develop consumer pro- files that direct targeted ads to specific Web site visitors. They do this by collecting informa- tion about each Internet user through cookies (see Chapter 2 for more on cookies) and online surveys.facts
- 48Internet advertising agencies can also track ad impressions (how often ads are seen) and click-throughs (how often ads are clicked on). This provides advertisers with much more specific data on the number of people who not only viewed the ad but also showed real interest by clicking on it. For advertisers, online ads are more beneficial because they are more precisely targeted and easily measured.facts
- 49AdWords tracks and graphs the performance of the ad’s key words (through click-through and sales rates) and lets the advertiser update the campaign at any time. This kind of targeted advertising enables smaller companies with a $500 budget, for example, to place their ads in the same location as larger companies with multimillion-dollar ad budgets.facts
- 50Social media, such as Facebook, Twitter, and Foursquare, provide a wealth of data for advertisers to mine. These sites and apps create an unprecedented public display of likes, dislikes, locations, and other personal information. And advertis- ers are using such information to further refine their ability to send targeted ads that might interest users.facts
- 51Ad agencies and product companies often argue that the main purpose of advertising is to inform consumers about available products in a straightforward way. Most consumer ads, however, merely create a mood or tell stories about products without revealing much else.facts
- 52conventional persuasion strategiesfamous person testimonial
plain folks pitch
snob-appeal approach attempts to persuade consumers that using a
product will maintain or elevate their social status. Advertisers selling jewelry, perfume, cloth-
ing, and luxury automobiles often use snob appeal.
he bandwagon effect, points out in exaggerated claims that every-
one is using a particular product. Brands that refer to themselves as “America’s favorite” ore
“the best” imply that consumers will be “left behind” if they ignore these products. A differ-
ent technique, the hidden-fear appeal, plays on consumers’ sense of insecurity.
A final ad strategy, used more in local TV and radio campaigns than in national ones, has
been labeled irritation advertising: creating product-name recognition by being annoying
or obnoxious. - 53a persuasive technique used in most consumer ads that associates a product with a positive cultural value or image even if it has little connection to the product. For example, many ads displayed visual symbols of American patriotism in the wake of the 9/11 terrorist attacks in an attempt to associate products and companies with national pride.association principle
- 54One of the more controversial uses of the association principle has been the linkage of products to stereotyped caricatures of women. Another popular use of the association principle is to claim that products are “real” and “natural”—possibly the most familiar adjectives associated with advertising.facts
- 55Another way to understand ads is to use myth analysis, which provides insights into how ads work at a general cultural level. Here, the term myth does not refer simply to an untrue story or outright falsehood. Rather, myths help us to define people, organizations, and social norms.facts
- 56Three common mythical elements are found in many types of ads: 1. Ads incorporate myths in mini-story form, featuring characters, settings, and plots. 2. Most stories in ads involve conflicts, pitting one set of characters or social values against another. 3. Such conflicts are negotiated or resolved by the end of the ad, usually by applying or purchasing a product. In advertising, the product and those who use it often emerge as the heroes of the story.facts
- 57critics of advertisingt advertising
was manipulating helpless consumers, attacking our dignity, and invading “the privacy of our
minds.”23 According to this view, the advertising industry was all-powerful. Although consumers
have historically been regarded as dupes by many critics, research reveals that the consumer
mind is not as easy to predict as some advertisers once thought. - 58Founded in part by longtime consumer advocate Ralph Nader, Commercial Alert is a Portland, Oregon– based nonprofit organization and a lonely voice in checking the commercialization of U.S. culture. Some of its other activities have included challenges to specific marketing tactics, such as when HarperCollins Children’s Books created the series “Mackenzie Blue,” which included “dynamic corporate partnerships,” or product placements woven into the stories written by an author who is also the founder of a marketing group aimed at teens.facts
- 59A certain amount of puffery—ads featuring hyperbole and exaggeration—has usually been permitted, particularly when a product says it is “new and improved.” ads become deceptive when they are likely to mislead reasonable consumers based on statements in the ad or because they omit information. More- over, when a product claims to be “the best,” “the greatest,” or “preferred by four out of five doctors,”facts
- 60Since the 1950s, political consultants have been imitating market-research and advertising techniques to sell their candidates, giving rise to political advertising, the use of ad techniques to promote a candidate’s image and persuade the public to adopt a particular viewpoint.facts
- 61—
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- Flashcards on Chapter 11, created by Natalie Fernandez on 22/06/2015.
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