978-1305580985 Chapter 10

Chapter 10 – Advertising: Catching

Consumers

Chapter Outline

• Advertising Supports Mass Media

Advertising in Newspapers

Advertising in Magazines

Advertising on Radio

Advertising on Television

Advertising on the Internet

• Ads Share Three Characteristics

Repetition

An Advertising Style

Ubiquity

• Ads Compete for Your Attention

15 Ways Ads Appeal to Consumers

• Marketers Use Demographics

• Advertising Feeds Consumerism

• Advertising at Work

• Mass Media Industries Depend on Advertising

Commercials on Television

Using Print and Radio

Internet Delivers Display, Search and Social Networks

• Media Compete Fiercely for Clients

• Federal Government Regulates Advertisers

Federal Trade Commission

Food and Drug Administration

Federal Communications Commission and Other Agencies

• Global Marketing Delivers New Markets

Suggested Activities, Discussions, and Exercises

1. Ask the students to go online and find examples on www.youtube.com or

similar services of a viral marketing campaign. Have each student select a

different ad. Who is the target audience for each ad? Which of Fowles’ 15

“need” appeals does the advertiser employ? Have the students research

to see if the product/service is also marketed with traditional advertising.

Ask them to consider why the organization used viral marketing in addition

to (or instead of) traditional advertising techniques. Discuss in class or in

an online forum.

2. Invite a representative from a local advertising agency to the class to

discuss how an agency operates. Have your students make up a list of

questions to ask based on the chapter key points. Then discuss what they

learned afterward or present their findings in a brief paper or online

discussion forum.

3. Send your students to the library to read a recent issue of Advertising Age

or ask them to visit adage.com. Ask them to select an article, make a

photocopy, and write a brief essay about the significance of the article.

4. Ask the students to analyze a print, a television, and an Internet ad for the

same product. How do the approaches differ? Who is the target audience

for each ad? Which of Fowles’ 15 “need” appeals does the advertiser

employ?

5. Have students look for examples of viral marketing, preferably examples

they have seen or experienced personally, but if they haven’t had firsthand

experience with the techniques, ask them to survey their friends for

examples or to find references to viral marketing activities in the

advertising trade media. Ask each student to write a brief paper about

what he or she found and to bring the paper—and if possible, the

example—to class for presentation and discussion.

Activity Pages

Use the following activity pages as class handouts for exercises and to

accompany some of the classroom Ideas described above.

Internet Advertising

Choose three of your favorite Internet sites and answer the following questions about

advertising on each site. You may copy this page and use it to answer questions about

all your sites.

Name/Internet address of site:

When you first access the site, what ads do you see? List all the companies that

advertise on the home page. (Some may be listed as featured partners or links to other

sites.)

When do you see new ads on the site? How often do they occur?

How often do the ads change? Do you see new ads every time you access the site? Do

the ads change while you’re on the site?

What conclusions can you draw about Internet advertising based on this site?

Does the site use search marketing? Is it effective?

Advertising Guest Speaker

Invite a representative from a local advertising agency to class to discuss how an

agency operates and/or to present a case history of an actual advertising

campaign. Make up a list of questions to ask—you may use the following to get

you started. Be prepared to discuss what you’ve learned or to write a brief paper

on your findings.

• What is the proper spelling of your

name?

• What is the proper spelling of your

company’s name?

• How did you come to be at your

agency? What did you do before this?

• What is your title? How long have you

been with your company?

• How long has your company been in

business? Who started it and why?

• How many people work in your

agency? What do they do?

• What does a newcomer with your

agency earn? A veteran?

• How much money did your agency bill

last year?

• What is your agency’s mission? Does

it have a strategy for achieving its

goals?

• Who are some of your clients?

• How do you attract new clients to your

agency?

• How do you charge clients for your

work?

• What do you do for your clients?

• How long have most of your clients

been with you?

• Can you give us an example of a

successful ad campaign from start to

finish? (Be sure to ask about how long it

took, how much it cost, how the client

measured the success.)

• What has your agency done to be

successful that sets it apart from other

agencies?

• Do you work with Internet advertising?

If so, how much do you charge to design

a Web page or Web ads for a client?

• What are some of the challenges

facing your company in the 21st

century?

• What do you like best about your job?

What do you like least?

Planning an Advertising Campaign

Congratulations! You’re now in the advertising business. You must decide what

kind of product your company will create and devise an advertising campaign for

the first year. You must also outline the target audience, campaign theme, and

media selection strategy. Answer the following questions and provide a model,

mock–up or drawing of your product for a class presentation. Print your answers

and bring them to class for discussion.

First, plan the following:

• The concept: On no more than one typed page, describe the concept of your product—

how it differs from others on the market, to whom you hope to sell it, what it will look like

(taste like, feel like and so on), and other descriptive factors. How much will it cost to

produce? How much will it sell for?

• The need: Clearly state why your new product is necessary or why people will buy it.

(Hint: Be specific and concrete. Avoid generic statements such as, “People will love this

product.”)

• User potential: Describe with as much detail as possible the kind of person who will buy

your product—age, income level, single/married/family people, possible professions,

typical interests, other products they buy and so on. How many people, realistically, do

you expect will buy your product in the first year? How much money, realistically, do you

expect to net the first year? How much profit?

Then you must decide:

• Advertising slogan: What will be the theme or slogan of your campaign, the jingle or

phrase that will accompany all of your advertising? Develop a strong theme.

• Advertising potential: What would be the best medium/media for your pitch: newspaper,

TV, radio, magazines, billboards, bus stop benches, Internet? How will you use online

advertising? Will you design your own web page? Have each group member investigate

the cost of purchasing ads in one of these media. Obtain rate sheets and be sure to ask

about multiple buys (for which there are usually discounts). Have group members

propose ways they would spend the advertising budget using different media.

Remember that there may be additional charges for ad design or TV production.

• Advertising decisions: When you’ve decided on your advertising buys, type them up.

Do a mock–up of an ad. For example, write a 30–second broadcast ad or design a

sample newspaper ad. For an Internet site, do a mock–up of the home page created

especially for your product. How will you use your site to promote your product?

• The presentation: Share your ad campaign with the class.

Chapter 10 Quiz

Multiple Choice

1. Advertising is:

a. any paid form of non-personal presentation by an identified sponsor.

b. how American consumers pay for most of their media.

c. overseen by the Federal Trade Commission.

d. All of these answers are correct.

2. In a practice adopted from radio, early television programs usually:

a. carried direct sponsorship.

b. sold both 30- and 60-second spots to support network-produced programming.

c. set up bidding wars between competing sponsors.

d. All of these answers are correct.

3. The ubiquity of advertising means that:

a. advertising is sold only to those who can pay for it.

b. advertising is everywhere.

c. advertising makes outrageous claims.

d. advertising appeals to those who love TV.

ANS: B

4. What was the first printed advertisement, created by William Caxton in

England in 1478, for?

a. his book

b. a religious service

c. patent medicine

d. toothpaste

5. The term “demographics” refers to:

a. how many ads Americans see and hear in a day.

b. the analysis of audience characteristics, such as sex, age, and marital status.

c. cost per thousand people reached.

e. All of these answers are correct.

6. Advertisers use a formula based on the cost of reaching __________ to

determine where to run their ads.

a. ten people

b. 1,000 people

c. 1 million people

d. all the people in a designated market area

7. The federal agency with the main responsibility for monitoring ads for

deception is the:

a. Advertising Industry Trade Administration.

b. National Advertising Review Board.

c. Ad Council.

d. Federal Trade Commission.

8. The rate at which someone visits a website to learn more because of an

Internet ad is called:

a. the CPM Rate.

b. the “click-through rate.”

c. viral marketing.

d. demographic rate.

ANS: B

9. One of the main arguments against advertising is:

a. advertising reduces competition and creates monopolies.

b. advertising produces cheaper products.

c. ads become more popular than the programming itself.

d. consumers don’t buy enough goods.

10. What is viral marketing?

a. advertising messages aimed at older audiences

b. patent medicine advertising

c. pass-along advertising messages

d. getting consumers to buy illegal products

True/False

1. Originally, television was envisioned as a medium without advertising.

ANS: F

2. Early TV advertisers expected viewers to buy their products out of gratitude for

sponsoring a popular program.

ANS: T

3. Making a TV commercial for national broadcast is less expensive per minute

than making a television program.

ANS: F

4. The Federal Trade Commission can order an advertiser to halt a deceptive ad

campaign.

5. Early magazines embraced advertising as essential for product sales.

Essay Questions

1. Name the functions or departments involved in the development of

advertising campaigns and briefly describe the responsibilities of each.

2. Discuss historian Daniel Boorstin’s view of the common characteristics

that make American advertising work. Describe the role of each of the

three characteristics he names.

3. Discuss the development of advertisers’ relationship with the Internet as

an advertising medium. Mention early forms of advertisements,

measurement of effectiveness, growth of spending, and the most recent

strategy for coping with Internet user resistance to advertising.

4. Discuss how the federal government regulates advertising. What agencies

are involved in this effort?

5. Define the term “demographics” and explain how advertisers target

specific groups of consumers using audience demographics.