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Unformatted text preview: Chapter 2 Outline The Evolution of Advertising Explains about the Principles of Free-Market Economics, Functions and Effects of Advertising. Chapter 2 Objectives 1. Explain the role of competition in free-market economics 2. Discuss the functions advertising performs in a free market 3. Identify milestones in advertising history 4. Discuss how the role of advertising has changed 5. Explore advertising’s past, present, and future impacts on society Principles of Free-Market Economics • Self-interest – o people want more for less o Open competition leads to greater product availability • Complete information o access to all prices, availability leads to greater competition • Many buyers and Sellers o provides choices that enable a fair market • Absence of Externalities o way to reduce social costs through taxation and regulation Functions and Effects of Advertising • Identify & Differentiate Products (Branding) • Communicate Product Features and Availability • Induce Customers to Try Products & Suggest Reuse • Stimulate Product Distribution • Increase Product Use • Build Value, Brand Preference, & Loyalty...
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- Spring '08
- Advertising, freemarket economics, advertising history Discuss, functions advertising performs, Market Crash Advertising, advertising agent Bought