Reflection paper
5t277090r
Chap002-2.pptxChapter 2 The Big Picture: The Evolution of IMC
William F. Arens Michael F. Weigold Christian Arens
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Today’s Objectives
Explain the role of competition in free-market economics
Discuss the functions advertising performs in a free market
Identify milestones in advertising history
Discuss how the role of advertising has changed
Explore advertising’s impacts on society
Understand branding and its benefits
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
2
Assumptions of Free Market Economics
Self - Interest
Absence of Externalities
Complete Information
Many Buyers & Sellers
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
3
Functions & Effects of Advertising
Identify and differentiate products (branding)
Communicate product features and availability
Induce customers to try products and suggest reuse
Stimulate product distribution
Increase product use
Build value, brand preference, loyalty
Lower overall cost of sales
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
4
Benefits of Strong Brands
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Strong brands
Premium pricing
Aid in dealing with crisis
Recruit top talent
Garner customer loyalty
Price war protection
Attractive to partners
Leverage for negotiating
Increases new product success
Evolution of Advertising
| Preindustrial | Industrializing | Industrial | Postindustrial |
| pre-1800 | 1800-1900 | 1900-1980 | 1980-present |
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
6
Preindustrial Age of Advertising
During this era, few could read
Then. . .
Chinese invented paper
Gutenberg invented the printing press
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
7
Industrializing Age of Advertising
Producers needed mass consumption to match mass production
For the first time, it cost less to buy a product than to make it yourself
Transportation breakthroughs facilitated distribution
Increased need for mass marketing techniques
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
8
Industrial Age of Advertising
Fresh markets for new, inexpensive brands of luxury and convenience goods
Consumer packaged goods
Catalogs mailed to rural areas
Radio provides new medium
Advertising becomes a profession
“Lest you forget, we’ll say it yet..”
1st pre-packaged biscuit, eventually 1st million$ ad campaign
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
9
Golden Age of Advertising
Product differentiation
Market segmentation
Positioning
Age of Television
The Product Positioning Era Post WWII - 1970
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
10
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Post Industrial Advertising
Demarketing
Cold War ends
Multinational companies expand
Traditional products aged
Affluent baby boomers
Increased competition among agencies
The Internet and Facebook
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Global Interactive Age
TV Remote Control
Satellite and Cable
TiVo
Personal computers
Smart phones
The Web—iTunes, Hulu
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
13
Advertising as a Social Force
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Improves standard of living
Raises awareness of product availability
Imbues products with personality
Enables us to communicate about ourselves by the products we buy
Advertising Ethics and Effects
Ethical advertising can . . .
Foster free press and nonprofits
Foster understanding of social issues
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
15
Advertising Ethics and Effects
On the other hand, advertising can be dishonest and unethical
Puffery
Advertising to children
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
16
Effects of Unethical Advertising
Results in laws, regulations, and agencies
Pure Food and Drug Act
Federal Trade Commission Act
Better Business Bureau
Association of National Advertisers
American Advertising Federation
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
17
