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FEDERAL REGULATION OF ADVERTISING IN THE UNITED MY AD CAMPAIGN 3–B CREATING LOCAL
STATES 44 ADVERTISING 65
The U.S. Federal Trade Commission 45 ETHICAL ISSUES IS RONALD MCDONALD BAD FOR KIDS?
The Food and Drug Administration (FDA) 46 ARE PARENTS? 79
The Federal Communications Commission
MY AD CAMPAIGN 3–C AGENCY REVIEW 81
(FCC) 46
The Patent and Trademark Office and the Library of MY AD CAMPAIGN 3–D WAYS TO BE A BETTER
Congress 49 CLIENT 85
STATE AND LOCAL REGULATION 50
NONGOVERNMENT REGULATION 51
The Better Business Bureau (BBB) 51
The Advertising Self-Regulatory Council (ASRC) 52 part two UNDERSTANDING THE
Regulation by the Media 52 TARGET AUDIENCE
Regulation by Consumer Groups 53
Self-Regulation by Advertisers and Ad Agencies 53
GOVERNMENT RESTRAINTS ON INTERNATIONAL CHAPTER 4 SEGMENTATION, TARGETING, AND
ADVERTISERS 54 THE MARKETING MIX 88
THE ETHICAL AND LEGAL ASPECTS OF ADVERTISING THE LARGER MARKETING CONTEXT OF
IN PERSPECTIVE 54 ADVERTISING 91
ETHICAL ISSUES TRUTH IN ADVERTISING: FLUFFING Customer Needs and Product Utility 91
AND PUFFING 35 Exchanges: The Purpose of Marketing and
Advertising 92
MY AD CAMPAIGN 2 YOUR CAMPAIGN
ASSIGNMENT 40 THE MARKET SEGMENTATION PROCESS 93
Types of Markets 93
Segmenting the Consumer Market: Finding
the Right Niche 94
Segmenting Business and Government Markets:
CHAPTER 3 THE BUSINESS OF Understanding Organizational Buying Behavior 103
ADVERTISING 56 Aggregating Market Segments 106
THE ADVERTISING INDUSTRY 59
The Organizations in Advertising 59
The People in Advertising 59
THE ADVERTISERS (CLIENTS) 59
Local Advertising 59
Regional and National Advertisers 64
Transnational Advertisers 68
Media around the World 70
THE ADVERTISING AGENCY 70
Types of Agencies 71
WHAT PEOPLE IN AN AGENCY DO 73
How Agencies Are Structured 76
How Agencies Are Compensated 77
The In-House Agency 78
THE CLIENT–AGENCY RELATIONSHIP 79
How Agencies Get Clients 79
Factors Affecting the Client–Agency Relationship 80
THE SUPPLIERS IN ADVERTISING 82
Art Studios and Web Designers 82
Printers and Related Specialists 82
Film and Video Houses 83
Research Companies 83
THE MEDIA OF ADVERTISING 83
CURRENT TRENDS 83
MY AD CAMPAIGN 3–A UNDERSTANDING YOUR
CLIENT 62
vii
THE TARGET MARKETING PROCESS 107 ADVERTISING AND THE PROMOTION (COMMUNICATION)
Target Market Selection 107 ELEMENT 117
The Marketing Mix: A Strategy for Matching Products THE MARKETING MIX IN PERSPECTIVE 118
to Markets 108
ETHICAL ISSUES BRAND NICHING MAY CAUSE BRAND
ADVERTISING AND THE PRODUCT ELEMENT 108 SWITCHING 98
Product Life Cycles 109
MY AD CAMPAIGN 4 SEGMENTING THE
Product Classifications 110
AUDIENCE 105
Product Positioning 110
Product Differentiation 111
Product Branding 112
The Role of Branding 113 CHAPTER 5 COMMUNICATION AND CONSUMER
Product Packaging 114 BEHAVIOR 120
ADVERTISING AND THE PRICE ELEMENT 114 COMMUNICATION: WHAT MAKES ADVERTISING
Key Factors Influencing Price 114 UNIQUE 122
ADVERTISING AND THE DISTRIBUTION (PLACE) The Human Communication Process 122
ELEMENT 115 Applying the Communication Process
Direct Distribution 115 to Advertising 123
Indirect Distribution 115 CONSUMER BEHAVIOR: THE KEY TO ADVERTISING
Vertical Marketing Systems: The Growth STRATEGY 125
of Franchising 116 The Importance of Knowing the Consumer 125
The Consumer Decision Process: An Overview 125
PERSONAL PROCESSES IN CONSUMER
BEHAVIOR 127
The Consumer Perception Process 127
Learning, Persuasion, and the Role of Involvement in the
Ways That Consumers Process Information 129
The Consumer Motivation Process 134
INTERPERSONAL INFLUENCES ON CONSUMER
BEHAVIOR 136
Family Influence 136
Societal Influence 136
Cultural and Subcultural Influence 138
THE PURCHASE DECISION AND POSTPURCHASE
EVALUATION 141
DIFFERENT RESPONSES FROM DIFFERENT
PRODUCTS 143
ETHICAL ISSUES IS IT MARKETING OR IS IT
EXPLOITATION? 140
MY AD CAMPAIGN 5 UNDERSTANDING WHAT CONSUMERS
LOOK FOR IN A PRODUCT 142
viii
Creative Concept Research 154
Pretesting and Posttesting 155 part four THE CREATIVE PROCESS
STEPS IN THE RESEARCH PROCESS 155
Step 1: Analyzing the Situation and Defining the CHAPTER 8 CREATING ADS: STRATEGY AND
Problem 156
Step 2: Conducting Secondary Research 156
PROCESS 196
Step 3: Establishing Research Objectives 158 THE CREATIVE TEAM: ORIGINATORS OF ADVERTISING
Step 4: Conducting Primary Research 158 CREATIVITY 198
Step 5: Interpreting and Reporting CREATING GREAT ADVERTISING 199
the Findings 165 The Resonance Dimension 200
IMPORTANT ISSUES IN ADVERTISING RESEARCH 166 The Relevance Dimension 201
Considerations in Conducting Primary Quantitative FORMULATING CREATIVE STRATEGY: THE KEY TO GREAT
Research 166 ADVERTISING 201
Collecting Primary Data in International Markets 169 Writing the Creative Strategy 201
MY AD CAMPAIGN 6–A RESEARCH 157 Elements of Message Strategy 203
MY AD CAMPAIGN 6–B METHODS FOR PRETESTING HOW CREATIVITY ENHANCES ADVERTISING 204
ADS 163 What Is Creativity? 204
The Role of Creativity in Advertising 205
MY AD CAMPAIGN 6–C METHODS FOR POSTTESTING
Understanding Creative Thinking 206
ADS 164
THE CREATIVE PROCESS 207
MY AD CAMPAIGN 6–D DEVELOPING AN EFFECTIVE
QUESTIONNAIRE 168 THE EXPLORER ROLE: GATHERING INFORMATION 207
Develop an Insight Outlook 208
Know the Objective 208
Brainstorm 208
CHAPTER 7 MARKETING, ADVERTISING,
THE ARTIST ROLE: DEVELOPING AND IMPLEMENTING THE
AND IMC PLANNING 172
BIG IDEA 208
THE MARKETING PLAN 174 Task 1: Develop the Big Idea 208
The Importance of Market Planning 174 Task 2: Implement the Big Idea 211
The Effect of the Marketing Plan on IMC 175 The Creative Pyramid: A Guide to Formulating Copy
Top-Down Marketing Plans 175 and Art 212
Bottom-Up Marketing: How Small Companies Plan 180
THE JUDGE ROLE: DECISION TIME 215
THE IMPORTANCE OF RELATIONSHIP MARKETING 181
THE WARRIOR ROLE: OVERCOMING SETBACKS
The Importance of Relationships 181
AND OBSTACLES 215
Levels of Relationships 183
MY AD CAMPAIGN 8 THE CREATIVE BRIEF 202
USING IMC TO MAKE RELATIONSHIPS WORK 184
IMC: The Concept and the Process 184 ETHICAL ISSUES DOES SEX APPEAL? 214
The Dimensions of IMC 187
The IMC Approach to Marketing and Advertising
Planning 187
The Importance of IMC to Advertising 188
THE ADVERTISING PLAN 188
Reviewing the Marketing Plan 188
Setting Advertising Objectives 188
Determining the Advertising Strategy 191
Allocating Funds for Advertising 191
Methods of Allocating Funds 193
MY AD CAMPAIGN 7–A DEVELOPING THE
SITUATION ANALYSIS 177
MY AD CAMPAIGN 7–B DEVELOPING A BRAND
STRATEGY 179
ETHICAL ISSUES A WAR OF COMPARISONS 182
MY AD CAMPAIGN 7–C THE SWOT ANALYSIS 183
MY AD CAMPAIGN 7–D DEVELOPING ADVERTISING
OBJECTIVES 192
MY AD CAMPAIGN 7–E WAYS TO SET ADVERTISING
BUDGETS 194
ix
CHAPTER 9 CREATIVE EXECUTION: ART AND MY AD CAMPAIGN 9–D DESIGN PRINCIPLES 231
COPY 218 ETHICAL ISSUES IMITATION, PLAGIARISM, OR
DELIVERING ON THE BIG IDEA: THE VISUAL AND THE FLATTERY? 232
VERBAL 221 MY AD CAMPAIGN 9–E WRITING EFFECTIVE COPY 235
THE ART OF CREATING PRINT ADVERTISING 221 MY AD CAMPAIGN 9–F CREATING EFFECTIVE RADIO
Designing the Print Ad 221 COMMERCIALS 238
The Use of Layouts 221 MY AD CAMPAIGN 9–G CREATING EFFECTIVE TV
Advertising Design and Production: The Creative and COMMERCIALS 241
Approval Process 221
Effect of Computers on Graphic Design 224
Principles of Design: Which Design Formats
Work Best 224
The Use of Visuals in Print Advertising 228 part five REACHING THE TARGET
PRODUCING GREAT COPY IN PRINT ADVERTISING 230 AUDIENCE
Headlines 230
Subheads 234
Body Copy 234 CHAPTER 10 PRINT ADVERTISING 246
Slogans 237 SELECTING MEDIA 249
Seals, Logos, and Signatures 237 PRINT MEDIA 249
CREATING GREAT COPY IN ELECTRONIC MEDIA 238 USING MAGAZINES IN THE MEDIA MIX 249
Writing Radio Copy 238 The Pros and Cons of Magazine Advertising 249
Writing Television Copy 238 Special Possibilities with Magazines 250
THE ROLE OF ART IN RADIO AND TV ADVERTISING 240 HOW MAGAZINES ARE CATEGORIZED 252
Developing the Artistic Concept for
BUYING MAGAZINE SPACE 254
Commercials 240
Understanding Magazine Circulation 254
Formats for Radio and TV Commercials 240
Reading Rate Cards 256
Outlining a TV Commercial 243
USING NEWSPAPERS IN THE MEDIA MIX 258
WRITING FOR THE WEB 244
Who Uses Newspapers? 259
MY AD CAMPAIGN 9–A PRODUCT FACTS FOR The Pros and Cons of Newspaper Advertising 259
CREATIVES 222 How Newspapers Are Categorized 259
MY AD CAMPAIGN 9–B CREATING GREAT HEADLINES AND Types of Newspaper Advertising 261
COPY 229 HOW ADVERTISERS BUY NEWSPAPER SPACE 262
MY AD CAMPAIGN 9–C DETERMINING THE CHIEF FOCUS Understanding Readership and Circulation 264
FOR VISUALS 230 Co-ops and Networks 266
Insertion Orders and Tearsheets 266
PRINT MEDIA AND NEW TECHNOLOGIES 267
DIRECTORIES AND YELLOW PAGES 268
MY AD CAMPAIGN 10–A THE PROS AND CONS
OF MAGAZINE ADVERTISING 250
MY AD CAMPAIGN 10–B THE PROS AND CONS
OF NEWSPAPER ADVERTISING 260
ETHICAL ISSUES WHAT’S AT STAKE WITH
SWEEPSTAKES? 264
MY AD CAMPAIGN 10–C PLANNING AND EVALUATING
PRINT MEDIA 267
x
TV Audience Trends 275 Sponsorships and Added-Value Packages 313
The Impact of Social Media and Streaming 277 E-Mail Advertising 313
The Use of Television in IMC 279 PROBLEMS WITH DIGITAL INTERACTIVE AS AN
Types of TV Advertising 280 ADVERTISING MEDIUM 315
Video Alternatives to TV Commercials 283
USING DIGITAL INTERACTIVE IN IMC 315
TV AUDIENCE MEASUREMENT 284
ETHICAL ISSUES IT’S NOT ALWAYS NICE TO SHARE 307
Rating Services 285
Cable Ratings 286 MY AD CAMPAIGN 12 USING FACEBOOK AND GOOGLE 316
Defining Television Markets 286
Dayparts 287
Audience Measurements 287 CHAPTER 13 OUT-OF-HOME, DIRECT-MAIL, AND
Gross Rating Points 288 PROMOTIONAL PRODUCTS 318
BUYING TELEVISION TIME 288 OUT-OF-HOME MEDIA 321
Selecting Programs for Buys 288 OUTDOOR ADVERTISING 322
Negotiating Prices 289 Standardization of the Outdoor Advertising Business 322
THE MEDIUM OF RADIO 289 Types of Outdoor Advertising 323
Who Uses Radio? 289 Buying Outdoor Advertising 325
The Use of Radio in IMC 290 Regulation of Outdoor Advertising 327
Radio Programming and Audiences 290 TRANSIT ADVERTISING 328
Satellite Radio and Portable Music Devices 291 Types of Transit Advertising 330
BUYING RADIO TIME 292 Buying Transit Advertising 330
Types of Radio Advertising 292 OTHER OUT-OF-HOME MEDIA 332
Radio Terminology 292 Cinema Advertising 332
MY AD CAMPAIGN 11–A PLANNING AND BUYING TV ATMs 332
AND RADIO 275 Mobile Billboards 332
MY AD CAMPAIGN 11–B THE PROS AND CONS Digital Signage 333
OF BROADCAST TV ADVERTISING 276 Mall Advertising 333
Guerrilla Advertising 333
MY AD CAMPAIGN 11–C THE PROS AND CONS OF CABLE
TV ADVERTISING 281 DIRECT-MAIL ADVERTISING: THE ADDRESSABLE
MEDIUM 334
ETHICAL ISSUES ADVERTISING TO CHILDREN: CHILD’S
Types of Direct-Mail Advertising 335
PLAY? 286
Using Direct Mail in the Media Mix 336
MY AD CAMPAIGN 11–D THE PROS AND CONS OF RADIO Components of Direct-Mail Advertising 337
ADVERTISING 293
PROMOTIONAL PRODUCTS 339
MY AD CAMPAIGN 13–A THE PROS AND CONS
OF OUTDOOR ADVERTISING 323
CHAPTER 12 DIGITAL INTERACTIVE MEDIA 296
ETHICAL ISSUES DOES SPILLOVER NEED
THE EVOLUTION OF DIGITAL INTERACTIVE MEDIA 299 MOPPING UP? 328
The Internet 299
MY AD CAMPAIGN 13–B THE PROS AND CONS OF TRANSIT
The Web 301
ADVERTISING 329
Digital Interactive Today 301
MY AD CAMPAIGN 13–C THE PROS AND CONS OF DIRECT-
MEASURING THE INTERNET AUDIENCE 304
MAIL ADVERTISING 337
How People Access the Internet 304
How People Use the Internet 304
Media Planning Tools 305
The Promise of Enhanced Tracking 305 part six INTEGRATING MARKETING
Seeking Standardization 306 COMMUNICATIONS ELEMENTS
BUYING TIME AND SPACE IN DIGITAL INTERACTIVE 308
Pricing Methods 308
The Cost of Targeting 309 CHAPTER 14 MEDIA PLANNING AND
Stretching Out the Dollars 309 BUYING 342
TYPES OF DIGITAL INTERACTIVE MEDIA PLANNING: INTEGRATING SCIENCE WITH
ADVERTISING 309 CREATIVITY IN ADVERTISING 345
Search Engine Ads 310 The Challenge 345
AdWords 311 The Role of Media in the Marketing
AdSense 312 Framework 348
Display Advertising 312 The Media Planning Framework 350
xi
DEFINING MEDIA OBJECTIVES 350 CHAPTER 15 IMC: DIRECT MARKETING,
Audience Objectives 350 PERSONAL SELLING, PACKAGING,
Message-Distribution Objectives 351
AND SALES PROMOTION 366
OPTIMIZING REACH, FREQUENCY, AND CONTINUITY: THE
THE IMPORTANCE OF RELATIONSHIP MARKETING
ART OF MEDIA PLANNING 353
AND IMC 369
DEVELOPING A MEDIA STRATEGY:
UNDERSTANDING DIRECT MARKETING 370
THE MEDIA MIX 355
Factors in the Media Strategy: The Five Ms 355 THE ROLE OF DIRECT MARKETING IN IMC 370
Factors That Influence Media Strategy Decisions 356 The Evolution of Direct Marketing 371
Stating the Media Strategy 358 The Impact of Databases on Direct Marketing 372
The Importance of Direct Marketing to IMC 373
MEDIA TACTICS: SELECTING AND SCHEDULING MEDIA
Drawbacks to Direct Marketing 374
VEHICLES 359
Criteria for Selecting Individual Media Vehicles 359 TYPES OF DIRECT MARKETING ACTIVITIES 374
Buyer Purchase Patterns 362 Direct Sales 375
Stating the Media Strategy 362 Direct-Response Advertising 376
The Synergy of Mixed Media 362 PERSONAL SELLING: THE HUMAN MEDIUM 378
Methods for Scheduling Media 362 Types of Personal Selling 378
Computers in Media Selection and Scheduling 364 Advantages of Personal Selling 378
THE ROLE OF THE MEDIA BUYER 364 Drawbacks of Personal Selling 379
The Role of Personal Selling in IMC 379
ETHICAL ISSUES MEET SOCIAL MEDIA AND THE
Gathering Information 380
WEB 346
Providing Information 380
MY AD CAMPAIGN 14 DEVELOPING MEDIA OBJECTIVES Fulfilling Orders 380
AND STRATEGIES 361 Building Relationships 380
TRADE SHOWS 382
PRODUCT PACKAGING 383
Environmental Issues in Packaging 384
Government Impact on Packaging 385
Package Manufacturing 385
When Should a Package Be Changed? 385
THE ROLE OF SALES PROMOTION IN IMC 385
The Positive Effect of Sales Promotion on Brand
Volume 386
The Negative Effect of Sales Promotion on Brand
Value 387
SALES PROMOTION STRATEGIES AND TACTICS 388
Giving Brands a Push with Trade Promotions 388
Using Consumer Promotions to Pull Brands
Through 390
MY AD CAMPAIGN 15–A DEVELOPING A PLANS
BOOK 381
MY AD CAMPAIGN 15–B CREATING EFFECTIVE SALES
PROMOTIONS 387
xii
Other Public Relations Activities 404 ENDNOTES 418
Public Relations Tools 405 CREDITS 434
SPONSORSHIP AND EVENTS 408 INDEX 436
The Growth of Sponsorship 408
Benefits of Sponsorship 410
Drawbacks of Sponsorship 411
Types of Sponsorship 411
Methods of Sponsorship 414
Measuring Sponsorship Results 414
CORPORATE ADVERTISING 415
Public Relations Advertising 415
Corporate/Institutional Advertising 415
Corporate Identity Advertising 417
Recruitment Advertising 417
MY AD CAMPAIGN 16–A CORPORATE BLOGGING 405
MY AD CAMPAIGN 16–B HOW TO WRITE A NEWS
RELEASE 406
MY AD CAMPAIGN 16–C THE CLIENT PRESENTATION 410
MY AD CAMPAIGN 16–D HOW TO SELECT EVENTS FOR
SPONSORSHIP 414
xiii
changes to the
second edition
chapter one • Updated three exhibits.
• Enhanced the discussion of geodemographic
• Added an opening paragraph describing chapter
segmentation.
coverage (in all chapters).
• Enhanced the discussion of vertical marketing
• Updated the opening vignette on 2012 Barack Obama
systems.
campaign.
• Introduced integrated marketing communications
earlier. chapter five
• Updated the timetable of advertising history. • Added new interactive model of communication that is
• Updated the references to Internet tools that enhance more relevant to effects of digital media.
teamwork. • Thoroughly revised and improved coverage of the
• Updated the table of global marketers. consumer perception process.
• Revised and improved the discussion of cognition and
memory, including consumer memory biases.
chapter two
• Updated the opening vignette on celebrity
endorsements and the collapse of Lance Armstrong’s chapter six
career. • Updated the Holiday Inn opening vignette.
• Updated the table relating a country’s ad spending to • Added a Bill Bernbach quotation in relation to the role
its standard of living. of research in advertising.
• Added a discussion of the implications of clutter on • Added a discussion of online focus groups.
websites. • Updated the information on Nielsen’s research
• Included fewer chapter “boxes” to reduce chapter services.
length.
chapter seven
chapter three • Revised and updated the Mountain Dew chapter
• Added material on local advertisers and social media. opener.
• Updated the statistics on top advertisers, and top • Added a new “My Ad Campaign” box on developing
media companies. brand strategy.
• Incorporated the AAAA definition of an advertising • Incorporated social media examples and references.
agency. • Used more references to chapter opener throughout
• Updated the trends in the advertising industry, the chapter.
including new material on Google.
chapter eight
chapter four • Made significant revisions and provided updates to the
• Replaced the Toyota opening vignette with an Old Target chapter opener.
Spice vignette. • Improved coverage of creative resonance, including a
• Converted the “Commercial Break” chapter boxes to reference to Leo Burnett’s creative philosophy.
exhibits or deleted them (throughout the text) to • Incorporated Bill Bernbach’s reflections on how
improve readability and reduce chapter length. creativity enhances advertising.
xiv
• Improved coverage of creative thinking, including • Added a new exhibit on how promoted tweets increase
incorporating the scholarship of Griffin and Morrison. brand favorability and purchase intent.
• Improved coverage of the collaborative nature of • Updated the exhibit on costs of a 30-second spot in a
advertising creative work. top-rated TV program.
• Added a new exhibit featuring some of advertising’s • Added a new exhibit on the 10-best-recalled product
greatest big ideas. placements of 2012–2013.
• Expanded the discussion of ethical issues involved in • Updated the exhibit on how Nielsen tracks TV viewers.
using sexualized appeals. • Significantly updated coverage of radio.
• Updated the exhibit on top radio advertisers.
chapter nine • Updated the exhibit on top radio formats.
• Added a new chapter opener on Sony Bravia. • Added a new exhibit on reach of terrestrial, satellite,
• Updated material on the use of computers in and streaming radio.
production.
• Added a new “My Ad Campaign” on choosing the chapter twelve
focus of visuals. • Added a new opening vignette on Google and digital
• Shortened and added focus on the ethics box on advertising.
plaigiarism. • Added a new exhibit on digital advertising
• Streamlined and tightened copy throughout the expenditures through 2016.
chapter. • Added new content on social media generally and
• Eliminated coverage of creating for international Facebook specifically.
markets. • Added a new exhibit on the most popular social media
sites in 2013.
chapter ten • Tightened the ethical discussion of Facebook Beacon.
• Removed the material on advertising production to • Updated the exhibit on top Internet display
reduce textbook length and the number of chapters. advertisers.
Material is still available online and in custom • Updated the exhibit on top Internet ad networks.
versions. • Revised and updated information on search engine
• Replaced the American Legacy opening vignette with a ads.
Levi’s GoForth campaign vignette. • Added a new exhibit on search engine market share as
• Updated four exhibits and numerous media statistics of July 2013.
throughout the chapter. • Added a new discussion on “banners and buttons” as
• Added a discussion of online publications and digital Internet display advertising.
subscriptions. • Added new material on ad networks and behavioral
tracking.
chapter eleven • Added new material on digital advertising dealing with
local listings, group buying (Groupon) and affiliate
• Updated the Hyundai chapter opener. marketing.
• Updated content on top network advertisers.
• Added coverage of Netflix and Amazon Prime.
• Updated the exhibit on top cable networks. chapter thirteen
• Updated “My Ad Campaign 11–A” on buying TV and • Updated five exhibits and numerous statistics
radio. throughout the chapter.
• Added new material on social media use during TV • Added an Arbitron study about billboard viewers.
viewing. • Added an example of eBay’s use of outdoor advertising
• Added a new exhibit on people who begin watching a to attract traffic to its site.
TV program because of online or social media • Added a discussion of mall advertising.
recommendations. • Enhanced the discussion of guerrilla marketing.
xv
• Simplified the definition of direct-mail advertising and • Added a discussion of coupon-to-card (C2C) coupons.
its relationship to direct marketing. • Enhanced the distinction among contests,
• Updated the discussion of printed catalogs. sweepstakes, and games.
• Used “promotional products” to describe the category
previously referred to as “specialty advertising,” and
updated definitions. chapter sixteen
• Replaced the social media opening vignette with a
Netflix vignette.
chapter fourteen • Updated three exhibits and numerous statistics
• Added a new opening vignette on trade desks. regarding sponsorships.
• Updated media spending statistics in Exhibit 14–1. • Added a public relations example of working
• Added new material on media-buying agencies. conditions in Apple’s Chinese factories.
• Added a new exhibit tracking the inverse relation of TV • Added a reference to influentials, a new term to
viewing and costs. describe “centers of influence.”
• Added a new ethics box on the media. • Added online newsroom as new term.
• Increased focus on domestic media planning. • Added several examples of sports marketing
sponsorships.
• Integrated David Ogilvy’s opinions about corporate
chapter fifteen advertising into the text (formerly in a text box).
• Updated the GEICO opening vignette.
• Enhanced the description of database marketing.
• Updated the exhibit on the largest direct-response
bonus chapter (Available in
agencies in the United States and numerous statistics
throughout the chapter.
Connect and through Create)
• New opening vignette featuring Jean-Claude Van
• Added information about the National Do Not Call Damme and Volvo trucks.
Registry.
• New learning objectives relating to key responsibilities
• Clarified the distinction between direct mail that is in managing production and explaining how ads are
intended to elicit a direct response (direct-response produced for the Web.
advertising) and that which is simply intended to
• Refocused content to reflect the influence of digital
communicate information about products and services.
media in electronic production.
• Added a discussion of direct-response digital
• Updated “My Ad Campaign” to offer students new
interactive media.
(and free) production tools.
• Added an exhibit on the top 10 U.S. trade shows.
xvi
advertising 2e
the evolution
of advertising
2
one
T
his chapter introduces you to Barack Obama is a natural leader and
some important themes of this an exciting speaker. Even so, when he
text, including integrated mar- announced that he would run for presi-
keting communications (IMC). It also dent, it took audacity, to borrow from an
introduces one of the most important Obama book title, to believe he would
components of IMC, advertising, and win. Just 46 years old, Obama had only
distinguishes it from other forms of mar- two years of experience in national of-
keting communications. The chapter fice. Indeed, he was a long shot even for
goes on to explain the functions and ef- the nomination of his party.
fects of advertising in a free economy continued on p. 4
and traces the evolution of advertising’s LEARNING OBJECTIVES
impact on society. After studying this chapter, you will be
able to:
Advertising pros pay careful attention
LO1-1 Define integrated marketing
to the work of others, and they pay ex- communications.
tra attention when ads are inspired LO1-2 Define advertising and distinguish
it from other forms of marketing
and effective. One such campaign ran communications.
from the end of 2006 through Novem- LO1-3 Explain the role advertising plays
ber 2008. But this campaign was in business and marketing.
LO1-4 Illustrate the functions of
not for a soap brand or some other
advertising in a free-market
product; it was for a young candidate economy.
who, seemingly coming from nowhere, LO1-5 Discuss how advertising evolved
with the history of commerce.
won election to the highest office in
LO1-6 Describe the impact of advertising
the land. on society.
3
continued from p. 3 whether in ads, speeches, Web sites, press releases, posters,
The Obama team’s assessment of his situation in late 2006 re- bumper stickers, or any other medium, would resonate with that
vealed it would be an uphill climb. In the Democratic primary, theme. As you’ll see later in this book, positioning is a term mar-
polls gave Hillary Clinton three times as many supporters as keters use when they create an image of a product, person, or-
1
Obama. Nationally the story was even bleaker. A survey found a ganization, or idea in the minds of a group of people.
matchup with likely Republican nominee John McCain would Creating a campaign around the core idea of change was
give McCain every state but two, Illinois and Hawaii.2 brilliant. It turned Obama’s outsider status and lack of experi-
The situation analysis also revealed some great opportunities. Un- ence into a plus. And it transformed a seeming strength of
derstanding those opportunities, and developing a strategy for seiz- Clinton into a liability. Obama’s message to an electorate that
ing them, proved central to creating Obama’s great ads. Obama’s wanted fresh approaches was that electing Clinton would
team knew that Hillary Clinton, in addition to being ahead in the bring more of the old ways of governing. Obama’s advisors
polls, was well known. Many of her enthusiastic supporters were were right. In 2008, voters were more interested in change
excited at the prospect that she would become the first female than experience.
president. But she also had vulnerabilities, chief among them her The election pitted Obama against Republican John McCain.
vote giving President Bush the authority to go to war in Iraq and her Would the “change” message still work against a self-described
association with her husband’s administration eight years earlier. “maverick,” a candidate known for bucking his own party?
Obama’s team decided that he would be positioned as the can- Obama’s advisors thought so. They would neutralize McCain’s
didate of change. Every message coming from the campaign, maverick status by linking him to President Bush. Obama’s ads and
paign could not keep up. We will begin by focusing on advertising, since it plays a cen-
tral role in most marketing campaigns. Advertising is the ele-
It’s hard to believe that when the 2008 campaign started, Twitter ment of marketing communications over which a company has
the greatest control. As such, it is likely to remain an important
had just been launched and the iPhone didn’t exist yet. Four years component of almost every major IMC campaign. But keep in
later, during the 2012 presidential campaign, far more social me- mind that whenever you see the term advertising, other com-
munications elements can and should be integrated into a cam-
dia tools were available and American adults’ use of those tools
paign to deliver a coordinated marketing message.
had nearly doubled. Almost half of those in the 18-to-29 age group
said they had been lobbied online to vote for one candidate or the
LO1-2 Define advertising and distinguish it from other forms of
other. While the Romney campaign was more social media savvy marketing communications.
than McCain’s, it couldn’t compete with Obama’s social media
machine. Obama logged twice as many Facebook “Likes” and
nearly 20 times as many retweets as Romney. The Obama cam- WHAT IS ADVERTISING?
paign outspent the Romney campaign 10:1 on digital advertising.4 You are exposed to hundreds and maybe even thousands of
commercial messages every day. They may appear in the forms
The Obama campaign was also very sophisticated in deciding used by the Obama campaign—television commercials, Web
sites, and text messages—or in the form of product placements
where to spend its money. In each swing state, the Obama in TV shows, coupons, sales letters, event sponsorships, tele-
campaign utilized a different media mix, varying the amount of marketing calls, or e-mails. These are just a few of the many
communication tools that companies and organizations use to
money spent on television, radio, digital, mobile, and social me-
initiate and maintain contact with their customers, clients, and
dia advertising, based on data about the voters. prospects. You may simply refer to them all as “advertising.”
But, in fact, the correct term for these various tools is market-
Much as John F. Kennedy was considered the first president to ing communications. And advertising is just one type of
effectively use the new medium of television to speak directly marketing communication.
to the American people, Barack Obama was the first president So, then, what is advertising?
to effectively use social media to interact with the populace. It’s At the beginning of the twentieth century, Albert Lasker, gener-
ally regarded as the “father” of modern advertising, defined ad-
quite certain that social media will play a key role in future cam-
vertising as “salesmanship in print, driven by a reason why.”6 But
paigns for politicians, as well as for products.5 ■ that was long before the advent of radio, television, or the Internet.
campaign
Overview [1–A]
Welcome to My Ad Campaign, a valuable feature of this text. My Ad campaign developed specific messages for each. It wanted to per-
Campaign should be useful in any of the following situations: suade undecided voters that they could change Washington only by
• Your instructor has asked students in your class to work on part or voting for Obama. For young voters, the objective was different.
all of an ad campaign, either individually or in groups. Young voters already liked Obama and wanted him to win. The cam-
• You are doing an internship and want practical advice on how to paign’s challenge with this group was to get them to register to vote,
help your company advertise. something young voters had not done in large numbers in previous
• You want to try to apply the concepts and ideas that you are read- elections. To do all of this, the campaign used a variety of media, both
ing about in this book in the real world. traditional (TV, radio, print) and new (Facebook, Twitter, MySpace).
Professors approach advertising projects differently. Some assign stu- Hopefully you’ve inferred from all of this that advertising is very
dents to create ads for a real product, although you never actually con- strategic. Lots of planning takes place long before ads are created.
tact the company that makes the product. Some assign a fictional For that reason, while you may be itching to create some advertise-
brand in a real product category. Perhaps your professor has offered ments for your client, you have lots of work to do before you begin
your talents to a client, such as a small local business or firm. You may brainstorming ideas for actual ads. Obama’s team was successful
even have to find a client yourself by making inquiries in your commu- not only because they created great ads, but because they under-
nity. Finally, your professor may ask you to help a charity or nonprofit stood their candidate, his opponents, the audiences that were im-
with its advertising. No matter which of these things is true, the good portant to reach, the media that could be used to reach them, and
news is that developing an advertising campaign follows a similar path. the objectives that were crucial to success. On a much smaller
And the My Ad Campaign feature is designed to help you do it well. scale and with far less resources, you face similar challenges. My
Let’s begin with a definition. An advertising campaign involves Ad Campaign is designed to help you to meet that challenge.
the creation and placement of a series of strategic communications In subsequent chapters, we’ll help you learn to develop a
that are unified by an underlying theme or core message. The com- deeper understanding of your brand or client, develop a plan for
munications are intended to help promote a brand, product, ser- marketing and advertising activities, conduct research so that you
vice, organization, or idea. The messages are typically designed to can better understand your target audience, formulate media strat-
resonate with a group called a target audience. Campaigns usually egy, and design effective advertisements. Finally, we’ll teach you
have specific objectives, such as increasing product awareness or how to implement evaluation programs to test whether your ads
persuading people to try a service or donate money to a candidate. have been successful. By the end of the semester, you won’t be a
And to ensure that the target audience receives them, messages top advertising professional. But you’ll have some real experience
appear in various media, such as newspapers, radio commercials, in the art and science of developing an ad campaign.
or Web pages. You may not do all of these activities, especially The My Ad Campaign topics are listed below. You may find it use-
placing ads in real media. But you will get a chance to do some se- ful or necessary to jump around as you develop your own campaign.
rious thinking, planning, and brainstorming. 1. Overview/Tools for Teamwork
We can make our definition of a campaign a bit more concrete 2. Your Campaign Assignment
by thinking back to the opening vignette of this chapter. President 3. Understanding What Your Client Wants
Obama, of course, is not a “product,” but for purposes of winning 4. Segmenting the Audience
the election his team had to plan their messages as though he was 5. Understanding Your Customer and Product
one. Previously we noted that an ad campaign has an underlying 6. Conducting Marketing and Advertising Research
theme or core message. In the Obama campaign this theme was 7. Situation Analysis, Objectives, and Budgets
“change,” specifically that Obama represented change and his op- 8. The Creative Brief
ponents did not. Many years ago, a famous advertising professional 9. Developing the Creative Product
named David Ogilvy referred to a great campaign’s theme as “the 10. Magazine and Newspaper Advertising
big idea.” Deciding what the “big idea” is for your brand will be one 11. Television and Radio Advertising
of the most important decisions you will make. The big idea of 12. Digital Interactive Media
“change” proved central to Obama’s victories over Hillary Clinton, 13. Out-of-Home, Direct Mail and Specialty Advertising
John McCain, and Mitt Romney. 14. Developing Media Objectives and Strategies
Obama’s team also did an excellent job identifying target audi- 15. Developing a Plans Book
ences that should receive campaign messages. Two of the most im- 16. Blogging/The Client Presentation
6 portant
PART 1audiences were undecided
| An Introduction voters and young voters, and the
to Advertising
advertising consumers public service
The structured and People who buy products announcements
merit, but for now we’ll use the following composed nonpersonal and services for their own, (PSAs) An advertisement
communication of or someone else’s, personal serving the public interest,
functional definition:
information, usually paid use. often for a nonprofit
Advertising is the structured and composed for and usually persuasive organization, carried by the
nonpersonal communication of information, in nature, about products media at no charge.
usually paid for and usually persuasive in na- (goods, services, and
ture, about products (goods, services, and ideas) by identified goods Tangible products
sponsors through various such as suits, soap, and
ideas) by identified sponsors through various
media. soft drinks.
media.
services of bankers, beauticians, bike repair shops, bill collec- performs a number of activities, typically classified into
tors, and Internet providers. Increasingly, advertising is used to three broad divisions:
advocate a wide variety of ideas, whether economic, political, • Operations (production/manufacturing)
religious, or social. In this book the term product encompasses
goods, services, and ideas. • Finance/administration
FOOTNOTES:
[2] Natal was discovered by a Portuguese navigator, Vasco da
Gama, when engaged in his quest for a sea-route to India, on
Christmas Day, 1497. But little more was heard of the country
until Farewell and Fynn, having proceeded in 1823 as far as St.
Lucia Bay and Delagoa Bay respectively, returned to Cape Town
and organized the party referred to in the text.
[3] The notorious Zulu King Tshaka's catastrophic reign began
about 1814. Great tribes were, at quick intervals between then
and 1820, driven headlong into Natal, only to sweep the peaceful
inhabitants of the land away with them into the Cape Colony and
elsewhere. Three or four of these appalling exoduses, taking
place by no means only on the south-west boundary of Zululand,
soon denuded Natal, and other adjacent territories, of the greater
portion of their aboriginal population. The country was
transformed into a howling wilderness, overrun with lions,
hyænas, and wolves; and any stray wight, who had succeeded in
evading the Zulu fury and was eking out an existence on wild-
roots or shell-fish, was hunted by members of his own species, so
far de-humanized, within half-a-dozen years, as to have become
converted into expert and voracious cannibals.
[4] It was after this kraal that Mzilikazi, "the lion of the North,"
named his own principal kraal—a name subsequently adopted by
the Chartered Company of Rhodesia for the already well-known
town established on the site of the kraal.
[5] Bird, Annals of Natal, 194.
[6] Ibid. i. 326.
[7] Much of the earlier history of the Colony will be found in the
following works: N. Isaacs, Travels and Adventures in Eastern
Africa, 2 vols. London, 1836; Capt. Allen F. Gardiner, A Journey to
the Zoolu Country, London, 1836; H.F. Fynn, Papers, printed in
part on pp. 60-124, vol. i. Bird's Annals of Natal, Pietermaritzburg,
1888.
Up to the day of his death, Fynn, the friend of Isaacs and the
source from which the latter drew much of the information in the
work above quoted, was the final authority on all matters
appertaining to the Natives of South-East Africa. He, fortunately,
left a number of valuable manuscripts. These are being prepared
for the press by the author. They include a large quantity of matter
connected with early Zulu history, customs and habits hitherto
unpublished.
[8] Pietermaritzburg, the capital of Natal, was laid off by them.
[9] Among these were the Natal Frontier Guards, Weenen
Yeomanry, Victoria Mounted Rifles, Alexandra Mounted Rifles,
Natal Hussars, Royal Durban Rifles, Natal Carbineers, Natal
Mounted Rifles, Border Mounted Rifles, Natal Field Artillery,
Durban Light Infantry, Natal Royal Rifles, also the Natal Mounted
Police and Natal Native Police. (The corps in italics have either
ceased to exist or been merged in those printed in ordinary type.)
The last-named corps, organized in 1848, and about 150 strong,
was disbanded by the Government in 1854, without any reasons
being given as to why such action had become necessary. To this
day, Natives wonder what the reasons could have been. Mr. (later,
Sir) Theophilus Shepstone, was its captain-in-chief.
[10] Often wrongly spelt "laagers." See Glossary.
[11] Known as Bushman's Pass.
[12] It was this officer who, on 22nd January, 1879, was Colonel
in command when the Imperial and Colonial troops suffered their
reverse at Isandhlwana.
[13] Consisting of one officer, one sergeant and thirty-three rank
and file of the Natal Carbineers (with forty rounds of ammunition
per man), and twenty-five mounted Basutos; of the latter,
seventeen had various kinds of guns (with about three charges
apiece); the other eight were armed only with assegais.—A