Advertising 230 - Exam 1 Review

Advertising 230 - Exam 1 Review - INTRODUCTION TO...

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Exam 1 Review Ad History - When did ads get started? After the Industrial Revolution Advertising expenditures - How much per person? $850 Agency compensation o How do agencies make money? Pre-1980s Revenue based on percentage of media time/space that the client buys Act as a partner Now Money is made through fees Service business Revenue based on billable hours Agency holding companies o How did they get started? What are they? Mergers in 1980s created 8 holding companies, each with multiple competing agencies Brand typology o Package goods → low cost; purchased frequently; soaps, pop, food, cosmetics, etc. o Durable goods → high cost, long lasting, infrequent purchase cycle o Retail → Value comes from distributing products and services of others o Services → value is a promise, not a physical product; think financial companies, car rentals, phone companies Branding o What is it? Marketing activities to establish, enhance, maintain or change cognitive and behavioral responses to the brand o How did it develop? Agricultural Revolution Hunter/gatherers changed to place-based farms Early icons and brands symbols of religion, ownership, power, communication Industrial Revolution Mass manufacturing/education/communication/transportation Led to surplus goods Led to communications that identified manufactured, branded goods o Relationship to business Brands are organizing force of business Marketing has become a major function and organizing principle of business Caveat emptor o What is it? Means “buyer beware” o Why is it important? Assumes the consumer is a knowledgeable buyer able to make rational decisions Cease and desist order o What is it? If the ad violates Section 5 or 12, as defined by the FTC, a cease and desist order may be issued Challenges facing advertising o What's going on in society that negatively impacts advertising? Category maturity
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This note was uploaded on 03/27/2008 for the course ADVRT 230 taught by Professor Newell during the Fall '07 term at Iowa State.

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Advertising 230 - Exam 1 Review - INTRODUCTION TO...

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