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chapter 2 contemporary advertising

Transcript of chapter 2 contemporary advertising

chapter

2

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The Evolution of AdvertisingExplains about the Principles of Free-Market Economics, Functions and Effects of Advertising.

McGraw-Hill/Irwin Contemporary Advertising, 11e

Copyright 2008 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 2 ObjectivesExplain the role of competition in free-market economicsIdentify milestones in advertising history

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Discuss the functions advertising performs in a free marketDiscuss how the role of advertising has changed

Explore advertisings past, present, and future impacts on society

Economics: Principles of Free-Market Economics

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Self-Interest

Complete Information

Many Buyers & Sellers

Absence of Externalities

Economics: Functions and Effects of AdvertisingIdentify & Differentiate Products (Branding)Communicate Product Features and Availability Induce Customers to Try Products & Suggest Reuse Stimulate Product Distribution

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Increase Product UseBuild Value, Brand Preference, & Loyalty Reduce Overall Sales Cost

Economics: Evolution of AdvertisingPreindustrial pre-1800 Industrializing 1800-1900 Industrial 1900-1980

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Postindustrial 1980-present

Economics: Evolution of AdvertisingStage Waggons ad from the preindustrial age

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Economics: Evolution of AdvertisingPreindustrial pre-1800 Industrializing 1800-1900 Industrial 1900-1980

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Postindustrial 1980-present

Economics: Evolution of AdvertisingUneeda Biscuit ad from the industrializing age

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Economics: Evolution of AdvertisingPreindustrial pre-1800 Industrializing 1800-1900 Industrial 1900-1980

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Postindustrial 1980-present

Economics: Evolution of AdvertisingWeavers of Speech ad from the industrial age

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Economics: Evolution of AdvertisingPreindustrial pre-1800 Industrializing 1800-1900 Industrial 1900-1980

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Postindustrial 1980-present

Economics: Evolution of AdvertisingAmerican Legacy Foundation ad from the postindustrial age

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[Insert American Legacy Foundation ad (p. 46) here Position: 1.55 vertical, 3 horiz. Size: 5.7 wide]

Economics: Top Global Marketers[Insert Exhibit 2-4 (p. 49) here Position: 1.55 vertical, 0.5 horiz. Size: 8 wide]

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Society and Ethics: Effects of AdvertisingEthical advertising can . . . improve standards of living, inform of availability of products, imbue products with personality, help us make personal statements, &

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foster the free press & nonprofits.

Society and Ethics: Effects of AdvertisingOn the other hand, advertising can: be dangerous if misleading, promote unhealthy products, encourage conformity, glorify conspicuous consumption,

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or target vulnerable markets.