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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 advertisings 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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This note was uploaded on 03/18/2008 for the course ADV 401 taught by Professor Wright during the Spring '08 term at University of Texas at Austin.
- Spring '08