The Evolution of Promtions and Advertising Brands

8/3/2019 The Evolution of Promtions and Advertising Brands

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The Evolution ofPromoting and Advertising Brands

Chapter 3 with Duane Weaver


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Outline

Rise of Capitalism Manufacturers pursuit of power

Evolution of Advertising in the USA

The 00s: More Hip Ads and MoreTechnology (2001 present)

DISCUSSION seminar questions


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Rise of Capitalism

Industrial Revolution basic force behind the rapid increase in mass-

production goods that required stimulation ofdemand

principle of limited liability gained acceptance and resulted in large

amounts of capital to fund the IndustrialRevolution

What was the impact on advertising as aresult of the Industrial Revolution?


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Manufacturers pursuit of power

Manufacturers attempt to gain power overthe distribution channel by building branddemand.

Takes consumers focus away from Retailerand Wholesaler

Mass Media telegraph enabled rapid

communication, spawned global interestand fostered a sense of community

this free communication is supported by advertising.


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Evolution of Advertising in the USA (1 of 2)

Pre-1800

Print media (news books, newsletters, then gazettes) 1800-1875

Circulation of dailies (newspapers) 1M/day Circulation increased by railroad expansion

1875-1918 Consumer culture breeds advertising as urbanization takes hold

(self-reliance no longer plausible) The 1920s

roaring twenties advertising was the work of the young, smartand sophisticated

High standard of living after WW1 and plague A product for a cure for almost everything

Ads became more visual than past 1929-1941 Depression

Advertising seen as villainous as millions starve

Bye-bye pretty, hello ugly harsh-reality, attention-grabbing ads Radio takes hold as medium


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Evolution of Advertising in the USA (2 of 2)

1941-1960 (WWII + the 50s)

Start of the babyboomer generation and women join theworkforce

Fear of motivation advertising research and subliminal ads

1960-1972 (Peace, Love and Creative Revolution) Advertising slow to keep pace with the cultural revolution

creative directors gain more control of copy and ads

1973-1980 Slowing economyads go back to hard sell

Regulators: ACT, FTC, NARB

1980-1992

Designer era with disposable income double parents after WWII

Greed was good, more stuff was good

1993-2000 Prediction of Interactive media enabling audit of more

accountable advertising


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The 00s:More Hip Ads andMore Technology (2001 present)

Ads seen as adsself-aware

Dot.bomb websites totally dependent ononline ads for revenue (However, stock value was inpotential ad revenue not real product revenue)

E-business selling real product online

Increase in web advertising Why now?? What has changed?

Branded Entertainment (and productplacement)

Why does this work??


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Discussion Questions:

1. Why is advertising an essentialfeature of capitalistic economic

systems?

2. What forces do you think will

continue to affect the evolution of

advertising?


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Social, Ethical and Regulatory AspectsOf Advertising

Chapter 4 with Duane Weaver


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OUTLINE

Social Aspects Ethical Aspects

Regulatory Aspects

Industry Self-Regulation Discussion


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Social Aspects

Get together in your teams and discussthe following. Be prepared to provide

a a brief summary of your discussion tothe class.

What are the positive impacts to

society? Why?

What are the negative impacts to

society? Why?


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Ethical Aspects

ETHICS = moral standards andprinciples against which behavoior is

judged.

Truth and deception (what issues?)

Advertising to children (is it okay?)

Is it okay to advertise alcohol, tobacco,gambling, prostitution, etc?


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Regulatory Aspects

Areas: Deception and Unfairness

How do you regulate? Can you?

Competition

Cooperative, comparative, monopoly

Advertising to children

Industry and consumer groups vs. regulatorslike FTC (USA), CRTC (Canada)


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Industry Self-Regulation

E.g.: NARB (National AdvertisingReview Board) affiliated with BBB

(BetterBusiness Bureau).

Internet

Consumers


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Discussion

1. Should Advertising be regulated?2. Can it be effectively managed and

who should be responsible for the

social and ethical management ofadvertising?

The Evolution of Promtions and Advertising Brands

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