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88 Cards in this Set

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  • Back
What is Advertising?
Nonpersonal communication of information usually paid for and usually persuasive in nature, about goods and services by identified sponsors through various media
Why is Advertising Non-personal?
Because it goes to a MAS amount of people and is only a 1 to 1 communication
We may talk to people in advertising...
but we dont get any feedback
Why do advertisers have to know their audience?
So we can understand what type of message will reach them the best
Why is advertising becoming more personalized?
This is due to companies inquiring databases about your past interests
Why is advertising usually paid for?
Because it gives you contol on what is said and what information you want delivered
Why is advertising persuasive?
Because you want to persuafe your listeners to buy what your advertising
Communication is an expression of what?
What is "the big idea"?
What advertisers try to communicate to the target audience
What might be and important idea to express in advertising?
Something like how long you can make your battery last or to show how your product can deliever again and again
What do you have to do to be affective in advertising?
You have to be able to express a relative idea, something the audience will want to remember or recall later on
What depends on the communciation to a target audience?
Price, Product and Distribution
Not wanting to purchase a $5000 dollar watch from wallmart is an example of what?
Buying the cheaper of two items at different locations would be an example of what?
What happens if you talk to someone out of their field of expierence?
they will not be able to understand or relate w/in their field of experience- this will cause unsuccesful communication
a homogeneous groups' shared set of beliefs, attitudes and way of doing thins, typically handed down from generation to generation
Comparative Advertising
Advertising that claims superiority to competitors in one or mroe aspects
Advertising is said to do what to culture?
Hurt it in many ways
What has helped advertising become better?
Ethical System
Standards or guidelines suggesting what behavior is appropriate on inapproppriate
External System
Guidelines developed by people with in industry to tell you whats right and whats wrong.
Internal System
For you to consider whats right and whats wrong. Your personal decesions on what you feel/think.
What happens if you see subliminal advertising?
Then it's NOT subliminal
Dont believe subliminal advertising, but believe.....
Subliminal Perception
the business process management uses to plan and execute the conception, pricing, promotion, and distribution of its products.
What is the ultimate purpose of marketing?
to creat exchanges that satisfy the perceived needs, wants, and objectives of individuals and organizations
The products ability to satisfy both functional needs and symbolic wants
Any transaction in which one person or organization trades something of value with someone else
Consumer Markets
Comprise people who buy goods and services for their own use
Business Markets
Composed of organizations that buy services, natural resources, and component products that resell, use to conduct their business, or use to manafacture another product
Reseller Markets
Buy products to resell them
Industrial Markets
Firms that buy products used to produce other goods and services
Goverment Markets
buy products for municipal, state, federal, and other goverment activites
Transitional or Global Markets
Include any ot the other three markets located in foreign countries
Include every person or organization that has products, services, or ideas to sell.
Consumer Behavior
The mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants
Organizational Buyers
People who purchase products and services for use in business and goverment
Who exercises control over advertisement?
Goverment(Fed., State & Local)
Industry Self Regulation
The Media
Federal Goverment
FDA, FTC(most important), FCC(Fed Communication Comission, DEA, BATF(alcohol tobacco & firearms), US postal service(direct mail)
Federal Trade Commision Act of 1914
Created federal authority to regulate unfair bussiness practices, they did not look at advertising at first, then eventually did
Wheeler-Lea Amendment(1938)
FCC granted authority to look at advertising and protect consumers
Lanham Trade-Mark Act(1947)
Gave one business concern the right to sue another business concern, and sue the competiors in court for unfair practices
Is the Lanham Trade-Mark Act related to the FCC?
not directly
The FTC policy is that deception exists if:
There is misrepersentation, omission of information, or practice that is likely to create a wrong impression in the minds of the reasonable consumers and if the repersentation, ommision or practice is likely to affect consumer conduct or decesion with regard to the advertised product or service
The add is deceptive if....?
It lies
If everything in the add is literly true, how can it still be considered deceptive?
Because important information is being left out that has importance to us
What is an deceptive add?
An add that creates a wrong impression
Who can the FTC go after in a deceptive add?
Anyone associated with the creation or decetion of the add: the producer, actors, directors, the networks that air the add and etc.
Can you create an advertisement that is deceiving?
What is the first step for a case to move through the FTC?
It could start by a complaint from a competitor
What is the second step for a case to move through the FTC?
The FTC has to decide what to investigate- they contact the advertiser and demand information from them, typically the FTC lloks for 3 kinds of information: substantiation, endorsements, and affirmative disclosures.(Contact the advertiser with claims that the advertiser must make correct)
What is the third step for a case to move through the FTC?
The FTC files a complaint with the advertiser and US Goverment
What is the forth step for a case to move through the FTC?
They will talk about issues with the advertiser that need to be corrected and if they come up with a negociated settlement then its called a consent decree
What is a consent decree?
a document the advertiser signs agreeing to stop the objectionable advertising without admitting any wrongdoing.
Before signing a consent decree, what can the advertiser do?
The advertiser can negociate specific directives with the FTC that will govern future advertising claims.
What is the fith step for a case to move through the FTC?
If the advertiser and FTC dont come to a settlement then they go before a judge.
What is the sixth step for a case to move through the FTC?
If the FTC wins before a judge then the Letigated Cease and Desit Order will come in with penalties for the advertiser.
What is the Cease-and-desist order?
An issuing from the FTC that prohibits further use of the ad.
Before the order of a Cease-and-desist order is final what is done?
It is heard by an administrative law judge.
Affirmitive Disclosure
The FTC telling the advertiser they need to add something to the add(aditional info.) to make the add not deceptive- they must make known their products limitations or deficiencies
Corrective Advertising
May be required by the FTC for a period of time to explain and correct offending adds.
What are some consequences of Corrective Advertising?
The FTC may require you to pull your adds and tell your audience what your really meant, either by correcting the add or by adding additional info. to add to make correct and undeceptive(correcting misconceptions)
Where can you challange and FTC ruling?
In Federal Court
An exaggerated subjective statement that cant be proven true or false, that probally would not be taken seriously by the ordinary consumer.
Is puffery allowed by the FTC?
Yes, as long as consumers dont take you seriously by it.
What is an example of Puffery?
"the best", "premier", or "the only way to fly"
State Attorney General
In charge of advertising at the state level- different states have different regulations governing what can be advertised.
Who is very active in going after advertisers?
The State Attorney General
What is the jurisdiction for State Attorney General's?
Only jurisdition with in their state
How can a State Attorney General make a name for them self?
By going after advertisers for certain things their state does not agree with will make them look good for "looking out for the states best interest".
What is the jurisdiction for the Local Goverment?
It has to be local, in that location, like the Tuscaloosa Goverment
What is the biggest impact of adertisement in local goverment?
Billboards(outdoor)- local goverment can regulate where they are put up at, what size can go up and etc.
What effect do mayors have on outdoor advertising?
Nothing about content but location, size and etc.
Media Clearance
A decesion by a broadcaster or publisher to accept the ad
Of all media, what networks conduct the strictist review?
TV networks
Broadcast Standards Department
Advertisers must submit all commercials intended for a network or affiliated station to this department.
50% of what are sent back- for what reason?
Commercials in script or storyboard form are returned with suggestions for changes or greater substantiation & soem ads are rejected outright if they violate network policies
What is Industry Self Regulation?
Industry creating their own standards
Better Business Bureau
operates primarily at the local level to protect consumers against fraudlent and deceptive advertising and sales practices
National Advertising Division(NAD)
Monitors advertising practices and reviews complaints about advertising from consumers and consumer groups, brand competitors, local Better Business Burea, trade associations and others.
Who is the appeals board for NAD decesions?
The NARB-comes into play when the NAD goes through an appeal
What does the NAD when they find a valid complaint?
It contacts the advertiser, specifying any claims to be substansiated, if substantiation is inadequate, the NAD requests modification or disontinuance of the claims.
Childrens Advertising Review Unit(CARU)
Provides a general advisory service for advertisers and agencies and also offers informational material for children, parents and educators.
You as a consumer can have an effect on what?
Advertising through purchases
If you are a consumer of a certain brand, and you dont like what your brand is saying- what type of impact can this have?
A huge impact on that brand because we can write letters to voice our concerns and we can also influence the regulation played in other areas
Who had a huge impact on the children T.V. Act of 1990?
Peggy Charren
By encouragin competition, advertising has the effect of...?
Keeping prices down
Some observerers believe that advertising actually restricts competition because why?
Small companies or industry newcomers cant compete with the immense advertising budgets of large firms