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study guide quizzes - Quiz 1 Study guide Rastus: The black...

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Quiz 1 Study guide Rastus: The black cream of wheat chef, featured on the packages even today. Rastus helped fuel the stereotype that was seen in advertising back in the late 19 th century that African Americans were only good to do menial jobs. Lydia Pinkham’s Vegetable Compound: Her remedy for female “complaints.” They put her face on the advertisements and on the package and sales went through the roof because women felt they could relate to her. They even had people writing in to her to get advice. In the 1890s they drastically cut the advertising budget for the product and sales dropped 80%. In the next decade they raised the budget and sales rose over 2500%. This was one of advertisings first real success stories. Proof that it pays to advertise. Richard W. Sears: Mr. Sears started out as a watch salesman in the Midwest. He then started a very successful mail order catalog business, with the “wish book.” Mr. Sears wrote the wish book including its articles and advertisements all by himself. The Sears catalog and the bible were often the only two pieces of literature in rural homes and he was wildly successful. One element of success- the “send no money” promotion, with cash on delivery. You could buy almost anything from his catalog. Julius Rosenwald: Started out as a pants producer, but became Mr. Sears’ business partner after Roebuck left the business. Rosenwald could be considered one of the first ad men. He created a profit sharing plan for the company that allowed the employees to be involved in the stock process and he tripled Sears sales. Can be considered to be the first ad agent. Francis W. Ayer- In 1869 opened NW Ayer and Sons in New York. Adopted Rowell’s approach of ad space. Set his commission at 15% to give the advertiser the benefit of a discount and his shrewd bargaining. Added the “open contract.” George P. Rowell: 1885- Started “Printer’s Ink”, which was a weekly journal that guided advertisers for the next 40 years. It had info on the methods of advertising, economic matters and it provided an industry. He divided ad space into smaller increments and sold them at a higher price to clients. This is however still lower than they would have played otherwise. He would take 25% commission and agreed to pay cash to anyone who would give him a 5% discount. He also published the “American Newspaper Directory” which gave fair value to media space, and provided the exact circulation numbers for newspapers. John Wanamaker: Started Wanamaker’s in the late 19 th century. John Powers wrote honest advertisements for the retail store, saying that if you are not satisfied, you can get your money back. Wanamaker’s was located in Philly. In the 1880s the sales figues doubled from 4 to 8 million because of advertising. John Powers:
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This note was uploaded on 02/23/2012 for the course POSI 1310 taught by Professor Arnold during the Fall '08 term at Texas State.

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study guide quizzes - Quiz 1 Study guide Rastus: The black...

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