chapter2
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinContemporary Advertising, 11e
The Evolution of Advertising
Explains about the Principles of Free-Market Economics, Functions and
Effects of Advertising.
2-3
Chapter 2 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 past, present, and future
impacts on society
2-4
Many Buyers& Sellers
Economics:Principles of Free-Market Economics
Self-InterestComplete
Information
Absence ofExternalities
2-5Economics:Functions and Effects of Advertising
Communicate Product Features and Availability
Increase Product Use
Build Value, Brand Preference, & Loyalty
Reduce Overall Sales Cost
Induce Customers to Try Products & Suggest Reuse
Stimulate Product Distribution
Identify & Differentiate Products (Branding)
2-6Economics:Evolution of Advertising
Preindustrial Industrializing Industrial Postindustrial
pre-1800 1800-1900 1900-1980 1980-present
2-7Economics:Evolution of Advertising
Stage Waggons ad from the preindustrial age
2-8Economics:Evolution of Advertising
Preindustrial Industrializing Industrial Postindustrial
pre-1800 1800-1900 1900-1980 1980-present
2-9Economics:Evolution of Advertising
Uneeda Biscuit ad from the industrializing age
2-10Economics:Evolution of Advertising
Preindustrial Industrializing Industrial Postindustrial
pre-1800 1800-1900 1900-1980 1980-present
2-11Economics:Evolution of Advertising
Weavers of Speech ad from the industrial age
2-12Economics:Evolution of Advertising
Preindustrial Industrializing Industrial Postindustrial
pre-1800 1800-1900 1900-1980 1980-present
2-13Economics:Evolution of Advertising
American Legacy Foundation ad from the post-industrial age
[Insert American Legacy Foundation ad (p. 46) here
Position: 1.55” vertical, 3” horiz.
Size: 5.7” wide]
2-14Economics:Top Global Marketers
[Insert Exhibit 2-4 (p. 49) here
Position: 1.55” vertical, 0.5” horiz.
Size: 8” wide]
2-15Society and Ethics:Effects of Advertising
Ethical advertising can . . .
improve standards of living,
inform of availability of products,
imbue products with personality,
help us make personal statements, &
foster the free press & nonprofits.
2-16Society and Ethics:Effects of Advertising
On the other hand, advertising can:
be dangerous if misleading,
promote unhealthy products,
encourage conformity,
glorify conspicuous consumption,
or target vulnerable markets.