ADPR3100 Test 1

Old School View

The communication must be paid for, delivered through mass media, attempting to persuade

New View

Advertising doesn’t always fit well or satisfy old school criteria, try: brands communicating with people, brands communicating in order to make an impact now or at some point in the future, communication intent on impacting participants

Advertising Campaign

An integrated series of ads and promotions that communicate a central theme or idea: can appear in one media (TV) or multiple media (TV, print, radio)

Integrated Brand Promotion

Coordinating promotional tools with advertising to build and maintain brand awareness, identity, and preference

Premarketing Era

Pre printing press era

Mass Communication Era

1700s to early 1900s era with Newspapers, magazines, and radio

Research Era

1920s to current (History in psychology: what motivates, how to segment on demographics, psychographics, now Big Data)

Interactive Era

Current with focus on consumer control, use of interactive devices and social media

Influences on advertising evolution

Rise of capitalism, Industrial Revolution, Manufacturers pursuit of power, Rise of mass media

Rise Of Capitalism

A fundamental influence on the evolution of advertising; the free market created a need to compete, but in order to compete one needed to stimulate demand and persuade the audience (w/ the tool of advertising!)

Industrial Revolution

A fundamental influence on the evolution of advertising; technology advancements and progress leading to the mass production of goods caused a need to stimulate demand and compete for the customer

Manufacturers pursuit of power

A fundamental influence on the evolution of advertising; the concept of branding emerges with major brands such as: Levi’s, Maxwell House Coffee, Budweiser, Coca-Cola, etc. This caused consumers to develop preferences as they moved on from the suggestions offered in stores by the owner and workers

Rise of Mass Media

A fundamental influence on the evolution of advertising; the practice of advertising subsidized some of the media’s operating cost, and as media changed it became increasingly true (newspapers, radio, TV, social media) Ads drive the cost of access down for the average consumer

Advertiser problems during the 19th century

Questioning which publication to advertise in because: there were 20,000 of them nationally, no central list of all opportunities for advertising (today we have SRDS), no idea of circulation (how many people will actually be receiving the content, [publishers can lie])

Media Problems during the 19th century

How to keep track of advertising revenue (there were up to 300-400 separate advertisers per issue), No real idea on how to maximize profits: Increase price per ad? (problem lies with justification of pricing; increase quantity of ads?(problem lies with content)

Ad Agencies Role (Advertisers)

Agencies and practitioners manage advertising placement

Ad Agencies Role (Media Companies)

Agencies and practitioners took over billing, and created a new revenue source: selling audiences to businesses (advertisers)

Two changes to ad agencies

Open contracts: publicized costs for ads and no secret deals; and agents worked only for the businesses and bought space only

Creative Servicers

Starting in 1880 these individuals prepared ad copy, they were free-land journalists and writers, and by 1892 it became customary to have one full-time copywriter

Specialized Roles

In the 20th century: editorial bureau wrote ads, art bureau designed ads, engraving bureau produced ads, detail bureau coordinated the departments, and production bureau managed accounts

Consumer Society

Our primary means of support are our consuming citizens: not selling and making but buying and using goods and services

3 Dimensions for consumer society emergence

agriculture vs. manufacturing, rural populations vs. urban population, increase in personal earnings and spending

Agriculture vs. manufacturing

Dimension of consumer society emergence; the industrial revolution drove the growth of manufacturing and replaced farming as a central economic contributor

Rural vs. Urban

Dimension of consumer society emergence; from 1890 to 1930 the percentage of non farm families rose from 62% to 78% as farm families fell to just 22%; nonfarm residents (city dwellers) had a dramatic increase

Increase in personal earnings and spending

Dimension of consumer society emergence; as household income increases so does household spending, greater needs to buy → had to find sustenance, and also a gain in money was a greater means to buy

Old Ways of buying

traditional country/general store: variety of generic goods and merchant recommendations

New Ways of buying

Department store: huge selection and volume, national manufactured goods, and preferences created by advertising

Branding

advertising beyond notices and announcements that fits the needs of a consumer society

Brand loyalty

preference for specific brand, buy it no matter where you were or moved to, greater significance of products that are branded, larger and steadier revenue stream for manufacturers

Consumer culture

a society in which commodities, or marketed items that we consume, become more important than human values or people; also a means for obtaining desired ends like love and friendship

Commodification

the process of stripping an object of all other values except its value for sale to some one else (EX: Christmas is no longer seen as a religious celebration but more as a gift giving festivall; self worth can be potentially based on the gifts we give and receive)

Producer-led paradigm

A predictable paradigm with controllable customers; everything is mass produced leading the products to be standardized and brought forth with rigid, formulaic advertising. Common up through 1950s, but can still be used today. Strictly focused on functionality and not style, would standardize products to minimize costs and maximize sales

Market management (Producer-led paradigm)

1. 4 Ps 2. Consumer consideration wasn’t there at all 3. Consumer was viewed as predictable and passive 4. Product functionality over style: because all people were assumed to respond the same way to a message

Claude Hopkins

Got his start working for patent medicines (snake oil and antisnake oil), pioneered the “free sample” through direct mail and mail order catalogues, advertising was viewed as a science to him, logical and rational appeals, and his products were meant to “solve problems”

Rosser Reeves

He produced a second kind of producer-led advertising: using repetition, continuity, and a single, simple message

David Oglivy

Initially a pollster with Gallup, this man founded and ran his own agency. Created the Hathaway drip dry, which was the precursor to the “most interesting man in the world” ads. His imagery and character drew in the reader and it was unique to think about the customer. Agency named Oglivy & Mather

Creative Revolution

A movement during the 1960s post producer-led paradigm and the shift into a consumer-led paradigm

2 Influences of the Creative Revolution

Growing importance of style and cynicism about consumer society

Economic value of style

Popular styling can boost sales; example of streamlining

Planned obsolescence

The purposeful shorting of the product’s usefulness, the idea is to get you to buy more: 1. Products are designed to “break down” including poor quality, bad parts, or poor assembly 2. Products initially work fine so people aren’t going to buy more, creates the impression that the new version is somehow better – making the old one obsolete

James Vicary

This man flashed “Drink Coca-Cola Eat Popcorn” on the screen of a movie theater for .03 seconds and there was 57.5% increase in popcorn & 18.1% increase in coca-cola. Start of the subliminal advertising scare.

Cynicism

The problem of the producer-led paradigm becoming increasingly ineffective posed the question of how to encourage a public with this trait to believe advertising

Volkswagen

This car company utilized 3 different ad strategies that paid off immensely 1. Emphasizing that small is better 2. Not changing the car is good, leading to stability with brand loyalty 3. Their cars are unlike any other leading to their infamous “ugly is honest” 4. Also they associated their cars to someone that is humble, plain, and honest

Consumer-led paradigm

Consumer satisfaction “market controlled”; hip consumerism: rejection of consumer society, goal of standing out showing personal freedom through individualized buying

4 Ps of Producer-led paradigm

product, price, promotion, place

4 Ps of Consumer-led paradigm

commodity, cost, communication, convenience

Product to commodity shift

One of the P shifts between producer-led and consumer-led; Shifting the focus on satisfying consumer needs. Making solutions to individuals problems

Price to cost shift

One of the P shifts between producer-led and consumer-led; focuses on the total cost of ownership, looking at other factors besides price. Cost = time, emotional, buyer’s remorse, and change

Promotion to Communication shift

One of the P shifts between producer-led and consumer-led; broader vocus than just advertising any form of “communication” including personal selling, PR, viral advertising, CRM, influencer marketing

Place to Convenience shift

One of the P shifts between producer-led and consumer-led; Internet and hybrid modes of purchasing make place less meaningful. Easier to research/find/buy the product, if it isnt convenient then consumers will be turned off

Hip consumerism

advertising in the consumer-led paradigm, buying things makes you free, and helps you to stand out (no conforming that is seen in the rejection of consumer culture)

Bill Bernbach

His creative teams had no assembly line, small teams work on the entire project, insists on agency autonomy throughout