Advertising Exam 1

IMC

Building profitable relationships through coordinated strategic communications

Advertising

a paid, mediated form of communication from an identifiable source, designed to persuade the received to take some action

Autobiography

More personal and therefore more relatable

Narrative

Useful for a conflict or telling a story while allowing the brand to assert authority

Drama

More vivid, immersive, and entertaining

Implied consumers

An assumed audience of ideal consumers

Sponsorial consumers

Who pays for the ad

Actual consumers

People in the real world who view the ad. Don’t always align with implied consumers

Relationship marketing

Creating, maintaining, and enhancing long term relationships with stakeholders that result in exchanged of mutual value

4 Parts of Marketing

Place, Price, Product, and Promotion

Brand

Promises made to consumers based on multiple experiences over time

Brand promise

The goal and the promise to customers that differentiates the brand from competitors

Self interest

People and firms pursuer own interests. Buyers meet own needs. Firms lower prices to earn profit.

Complete Information

Buyers make better decisions when have lots of info about products

Many buyers and sellers

If one firm doesn’t meet buyers needs, another will produce better product, consumers win

Absence of Externalities

Externalities = social costs

Abundance Principle

In an economy that produces more goods and services that can be consumed advertising keeps consumers informed about alternatives and allows competition.

Deceptive advertising

Only claims that are factually false or convey a false impression are deceptive under current law

Puffery

Exaggerated, subjective claims that can’t be proven true or false

Federal Trade Commission

(FTC). Deceptive, unfair, comparative ads

Food and Drug Admininstration

(FDA). Nutritional labeling and education act

Federal Communications Commission

(FCC). Broadcast media licensing

Patent and Trademark Office

Intellectual property

Library of Congress

Copyrights, works of authorship: books, songs, paintings