Mcom 341 week 1 summary


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Mcom 341 week 1 summary

  1. 1. MCOM 341<br />Week 1 Summary<br />Advertising is the structured and composed nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods, services and ideas) by identified sponsors through various media. Advertising reaches us through a medium, a channel of communication. More than one medium = media. The use of more than one medium at a time by an advertiser is called a multimedia approach.<br />Traditional media = newspaper, television, radio, magazines, and billboards<br />New media = web sites, social media, mobile, direct mail<br />Nontraditional media = shopping carts, bathroom stalls, blimps, people<br />Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.<br />The four P’s of marketing:<br />Product<br />Price<br />Place<br />Promotion<br />A free market is one in which the buyers and sellers have multiple alternatives, i.e. competition. <br />Fundamental assumptions of free-market economy:<br />Self-interest <br />Complete information<br />Many buyers and sellers<br />Absence of externalities<br />Functions and Effects of Advertising in a Free Economy:<br />To identify products and differentiate them from others<br />To communicate information about the product, its features, and its place of sale<br />To induce consumers to try new products and to suggest reuse<br />To stimulate the distribution of the product<br />To increase product use<br />To build value, brand preference, and loyalty<br />To lower the overall cost of sales<br />Significant moments in American advertising history:<br />1704: first American newspaper ad published in Boston Newsletter <br />1841: Volner B. Palmer becomes the first media buyer, contracting with newspapers at a discount and reselling space to advertisers<br />1869: Francis Ayer forms the first ad agency to charge commission and function<br />1920: KDKA Pittsburgh becomes the first radio station to broadcast in the U.S. <br />1922: The first radio ad runs on WEAF New York. The ad, for a new apartment complex in the city, generates thousands of $$$ in sales. Radio introduces the spoken word, music and jingles. <br />1938: Radio surpasses magazines in advertising revenues.<br />1994: AT&T runs the first banner ad online<br />1998: Google launches and revolutionizes search <br />2003: LinkedIn, the first social site dedicated to business, goes live<br />2003: MySpace introduced. By 2006, the world’s most popular social site<br />2004: Facebook, a social site for Harvard students only, debuts<br />2010: Facebook hits 500 million registered users, overtakes Google for most visited site a couple of times<br />2010: Internet advertising revenues surpass newspaper revenues. <br />Key terms and people:<br />Consumers: individuals who buy products for their own use.<br />Consumer packaged goods: Consumer luxury and convenience goods produced in mass quantities.<br />Product differentiation: The effort by manufacturers to portray their brands as different from, and better than, the competition.<br />Unique selling proposition (USP): Concept introduced by Rosser Reeves of the Ted Bates agency. The USP identifies the features that differentiate a company’s products from competitors, the “reason why” a person would buy it.<br />Market segmentation: unique groups of people addressed through specialized products.<br />Positioning: Associating a brand with a particular set of needs ranking high on consumers’ priority lists<br />Demarketing: Advertising efforts to slow the demand for a product<br />QR Code: a barcode, readable by a dedicated barcode reader and/or by smartphones, with encoded data<br />Bill Bernbach<br />Developed “image” for products <br />Believed copy should appeal to human nature, persuade<br />Emphasized creativity over formulaic advertising<br />Notable campaigns: VW, Levy’s Jewish Rye, Avis<br />David Ogilvy<br />Proponent of market research to drive marketing, advertising<br />Featured product benefits through facts and long copy<br />Valued sales results. “If it doesn’t sell, it isn’t creative.”<br />Notable campaigns: Rolls Royce, Dove, Hathaway<br />Leo Burnett<br />Developed brands and associated icons, such as Ronald McDonald, Tony the Tiger, Mr. Clean, Keebler Elves, Pillsbury Doughboy<br />Introduced the “Chicago school” of advertising, sentimental ads that appealed to Mid-Western values<br />Other notable campaigns: Marlboro, Maytag<br />