Relation to text This slide relates to material on pp. 772-78 of the text. Summary Overview Advertising plays an important role in a free market system. This slide shows the role of advertising in the economy, which is: Making consumers aware of products and services Providing consumers with information to use to make purchase decisions Encouraging consumption and fostering economic growth Use of this slide This slide can be used to discuss the economic role of advertising. Advertising informs customers of available goods and services but also affects consumer choices, competition, and product/service costs and prices.
Relation to text This slide relates to material on pp. 774-778 of the text. Summary Overview This slide summarizes the economic impact of advertising on consumer choice, competition, and product costs and prices. The impact of advertising includes: Effects on consumer choice Differentiation Brand loyalty Effects on competition Barriers to entry Economies of scale Effects on product costs and prices Advertising as an expense that increases the cost of products Increased differentiation Use of this slide This slide can be used to discuss the economic impact of advertising on consumer choice, competition, and product costs and prices. It has been suggested that the economic effect can be divided into two principle schools of thought that make different assumptions regarding the influence of advertising on the economy. The “Advertising equals market power” perspective views advertising as a way to change consumers tastes, lower their sensitivity to price, and build brand loyalty. However, this results in higher profits, higher prices, reduced competition, and fewer choices. The “Advertising equals information” perspective views advertising as providing consumers with useful information, increasing price sensitivity, and increasing competition. Proponents of this view believe the economic effects of advertising are favorable and it contributes to a more efficient and competitive market.
Relation to text This slide relates to the material on pp. 775-76. Summary Overview This slide shows ad that was used by South Korea’s Daewoo Motor Co. when it entered the U.S. market. In 2000 the company began running a major national advertising campaign to create an identify for the brand and position models such as the Leganza as offering affordable luxury. Use of this slide The ad shown in this slide can be used to discuss how advertising helps companies enter a market by providing a way to make potential buyers aware of their products or services and giving them a way to create an identity and image for their brands.
Relation to text This slide relates to the material on pp. 772-74 and IMC Perspective 22-3. Summary Overview This slide shows two of the print ads from the campaign developed by the Office of National Drug Control Policy (ONDCP) linking drug use with terrorism. The ONDCP developed this campaign following the terrorist attacks of September 11, 2001. The purpose of the campaign was to draw a connection between drug use and the support of terrorism by showing how drug money funds the efforts of terrorists. This ad on the left uses an interesting question type headline, “Is It Ok to Support Terrorism If Its Only a Little Bit?” The ad on the right does not link drug buyers with the support of terrorism but does suggest that they are supporting terror and violence that surrounds the drug trafficking and drug dealers. Use of this slide This slide can be used to discuss how the U.S. government used advertising to address the problem of illicit drug use. The ONDCP campaign linking drug use with terrorism was very controversial as many critics argued that the public would have a difficult time accepting the drug use/terrorism link. In April 2002 the ONDCP announced an end to the drugs-an-terror advertising campaign after its annual study found that the ads were not working and were putting the anti-drug office at odds with the Partnership for a Drug-Free America. You might ask student whether they think these ads linking drug use with the support of terrorism are an effective way of dealing with the drug problem in the U.S.
Definition of advertising . Any paid form of non personal presentation and promotion of ideas, goods and services through mass media such as newspaper, magazines, television or radio by an identified sponsor. (Kolter). . Advertising is mass, paid for communication which is used to transmit information,develop attitudes and induce some form of response from the audience
Perhaps the earliest form of advertising was simply traders shouting out what they had to sell. Closer to modern forms are the public notices found on the walls of Pompeii, advertising forthcoming dramatic and athletic entertainments and even rooms to let.
The first known printed advertisement is a handbill produced in 1478 by the English printer Caxton to advertise his book Salisbury Pye . It cleverly acts as a sample of the new technology used in the product it is selling (which is "enpryntid after the form of this present lettre").
By the end of the 18th century several daily newspapers were being published and competition for the advertisers' money had started in earnest. Even so, it was not until the latter half of the 19th century that advertising really began, not only to grow far more rapidly, but to take on its now familiar forms .
1923 (Kodak) (Kodak) 1912
Objectives . Inform Persuade Remind To provide information. Used especially with a new or complex product To persuade customers to buy a particular brand To remind customers about a product they might other overlook Print media is superior to TV for this type of advertsing. Stress the distinctive features of the brand. Minimal information. Advertsing a mature product Examples Insurance Financial products New electrical goods Examples: Perfumes Cars Coca Cola Examples Corn Flakes Kit Kat
Seeks to promote corporate identity, image and values.
There is distinct PR element in this form of advertising.
This type of advertising is not about individual products the company offer
The product is not mentioned.
Used by large companies, especially multinational companies. e.g. ICICI,BP
BP promotes itself an energy company rather than a petroleum company .
Direct Response Advertising . The use of prime media to elicit an order, enquiry or request a visit. . Direct response television advertising invites consumers to phone in to place an order (e.g. some music CD's are promoted in this way). The print media is alos used – coupons cut out of the page and inserts are means to invite people to respond.
Advertising can play an important role in the process by which an economic system guided by moral norms contributes to human development.
It is a necessary part of the functioning of modern market economies.
Advertising can be a useful tool for sustaining honest and ethically responsible competition that contributes to economic growth in the service of authentic human development.
Advertising informs people about the availability of rationally desirable new products and services and improvements in existing ones, helping them to make informed, contributing to efficiency and the lowering of prices, and stimulating economic progress through the expansion of business and trade.
All of this can contribute to the creation of new jobs, higher incomes and a more decent and humane way of life for all.
An advertisiment is said to evil to the society if it unethical Ethics Ethics is a branch of philosophy which seeks to address questions about morality; that is, about concepts such as good and bad, right and wrong, justice, and virtue. Advertisement is considered unethical in the following situations; . o When it gives false or misleading information on the value of the product. o When it fails to give useful information on the possible reaction or side effects of the product. And o When it has degraded or underestimated the substitute or rival's product o When it is immoral.
Advertising can betray its role as a source of information by misrepresentation and by with holding relevant facts
The practice of "brand"-related advertising can raise serious problems. Often there are only negligible differences among similar products of different brands, and advertising may attempt to move people to act on the basis of irrational motives ("brand loyalty," status, fashion, "sex appeal," etc.) instead of presenting differences in product quality and price as bases for rational choice.
It makes consumers forget abt there needs n only think abt their wants, which makes them spend more
Puffery as a legal term refers to promotional statements and claims that express subjective rather than objective views, such that no reasonable person would take literally. A two-year old might believe that polar bears enjoy sipping Coca-Cola. But we know better.
Nowadays advertisers are engaged in unhealthy brand comparison with the help of advertising. Such comparisons create problems and confusions for the right choice of the product as far as audience are concerned.
In the competition to attract ever larger audiences and deliver them to advertisers, communicators can find themselves tempted — in fact pressured, subtly or not so subtly — to set aside high artistic and moral standards and lapse into superficiality, tawdriness and moral squalor
Communicators also can find themselves tempted to ignore the educational and social needs of certain segments of the audience — the very young, the very old, the poor — who do not match the demographic patterns (age, education, income, habits of buying and consuming, etc.) of the kinds of audiences advertisers want to reach
Exploitation of women by advertisements:-
objects whose purpose is to satisfy others' appetite for pleasure or for power
the role of woman as wife and mother undervalued or even ridiculed
Amul macho Axe dark temptation Vulgar Advertisements banned by I & B Ministry :-
Surrogate advertising Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising.
for example, the costs of advertising limit political competition to wealthy candidates or groups, or require that office-seekers compromise their integrity and independence by over-dependence on special interests for funds.
instead of being a vehicle for honest expositions of candidates' views and records,political advertising seeks to distort the views and records of opponents and unjustly attacks their reputations
William “Bill” Clinton (D) vs. George H. Bush (R) 1992
d) Moral and Religious Harms of Advertising it deliberately appeals to such motives such as envy, status seeking and lust.
some advertisers consciously seek to shock and titillate by exploiting content of a morbid, perverse, pornographic nature.
the communications media have made pornography and violence accessible to a vastly expanded audience, including young people and even children, and a problem which at one time was confined mainly to wealthy countries has now begun, via the communications media, to corrupt moral values in developing nations.
commercial advertisers sometimes include religious themes or use religious images or personages to sell products. It is possible to do this in tasteful, acceptable ways, but the practice is obnoxious and offensive way.
Advertising is an important element in today's society, especially in the functioning of a market economy, which is becoming more and more widespread. Yet it also can do, and often does, grave harm to individuals and to the common good
To sum up, advertising has both advantages and disadvantages. But we are sure that it is growing very fast in contemporary society. Advertising promotes a product or service . Also it encourages economy to develop. We could say it is a necessary evil in our lives.