Cap 210 Notes - Chapter1 23:42

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Chapter 1 23:42 Three criteria must be met for a communication to be classified as advertising: The communication must be paid for The communication must be delivered through mass media Advertising Campaign An integrated series of ads and promotions that communicate a central theme  or idea. Production: the advertiser and social context determine ad content Reception: The context of ad reception and the audience’s understanding of an  ad result in a meaningful interpretation of the ad Audiences for Advertising: Household Consumers Business Organizations The Trade Channel -  Professionals Government Audiences Geography Global advertising
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International advertising National advertising Regional advertising Local advertising Appeal, Creativity 1. The role of advertising in the marketing mix:      4 P’s of Marketing: Price,  Promotion, Place, Product 2. Advertising in brand management: 3. Advertising in market segmentation, differentiation, and positioning: 4. Advertising in revenue and profit generation Advertising’s Role in Revenue and Profit Generation Brand loyalty leads to inelasticity of demand: less price sensitivity to demand Economies of scale: higher volume results in lower unit cost Type of Advertising Primary demand stimulation (cotton, orange juice, milk) Selective demand stimulation (Tropicana, Country Fresh, branded names…) Direct response advertising (direct mail with return card, tv commercial with  phone number) Delayed response advertising (doesn’t effect sales immediately) Corporate advertising
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23:42
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23:42
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Chapter 4 23:42 Ad in Context Benefits: what the technical features can do for the consumer Social Aspects of Advertising Advertising affects happiness and well-being o Con: creates needs o Pro: address a wide variety of basic human needs Free will: our ability to choose what we want o Con: promotes materialism o Pro: reflects society’s priorities Advertising: Demeaning, deceitful, or liberating and artful? o Con: ads perpetuate stereotypes o Pro: advertisers are more sensitive now o Con: ads are often offensive o Pro: Ads are a source of liberation o Con: Ads deceive via subliminal stimulation o Pro: advertising is art Advertising has a powerful effect on mass media o Pro: Ads foster a diverse and affordable mass media provides information  and exposure on important issue o Con:  Ethical Aspects of Advertising Ethics are moral standards against which behavior is judged o Truth in Advertising (Puffery – accepted truth) o Advertising to children o Advertising controversial products Direct marketing and e-commerce
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Cap 210 Notes - Chapter1 23:42

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