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59 Cards in this Set

  • Front
  • Back
Historical backgrounds that gave a rise to modern advertising
•Industrial Revolution
•Manufacturers’ pursuit of power in the channel of distribution
•Development of modern mass media
First advertising agency in the U.S.
•Established in 1840s in Philadelphia
•Volney Palmer
•Bought large blocks of newspaper space cheaply and sell it at a profit to those who wanted to advertise their products in the newspapers  space broker
•Did not produce advertisements
Major figures in the history of advertising and public relations
•Advertising: P. T. Barnum, Rosser Reeves, Bill Bernback, David Ogilvy, Leo Burnett

•Public relations: P. T. Barnum, Ivy Redbetter Lee, George Creel, Edward Bernays
Two major trends in modern advertising
•Hard sell: Rosser Reeves
•Creative revolution: Bill Bernback, David Ogilvy, Leo Burnett
Annual expenditure on advertising
$200 billion in the U.S., $450 billion worldwide
Major advertising spenders:
car manufacturers, consumer product manufacturers, entertainment industry, retailers, fast food industry
• Advertisers
manufacturers and service firms, retailers, government and social organizations, individuals
• Advertising agencies
Omnicom Group, Interpublic Group, WPP Group, Publicis Groupe
Types of advertising agencies
• Full-service agencies
• Creative boutique
• Media-buying services
• In-house department
Types of ads
•Consumer ads
•Promotional considerations
•Product placement
•Alignment ads
•Institutional ads
•Political ads
• Consumer ads
promote products and services targeting consumersTrade ads: promote products and services targeting other businesses
• Promotional considerations
reference to a product or service during programs targeting consumers
• Product placement
having a character in entertainment programs or movies use a product or service to increase sales among consumers. Unobtrusive.
• Alignment ads
promote a commercial brand and a socially beneficial cause together in one ad. Mostly solely sponsored by the commercial brand.
• Institutional ads
promote the institution than a particular brand or product. Build reputation and differentiate from its competitorsPublic service ads: promote a socially beneficial cause either to education public about the issue or to solicit donation to help the cause. Produced by businesses, ad agencies, and mass media. Law required mass media to donate the time. Ad council was organized to the ad industry to help coordinate, produce and place PSAs. Donated time or space is usually unsold, unpopular time slots. Advocacy ads: Used by a variety of special interest groups to support their standpoint. Usually sponsored by trade associations, membership organizations, political parties, activist groups.
What percent of campaign budgets are spent on political ads
Political ads
Became single most important method of persuasion in American politics. Negative attack ads are regarded to be responsible for political indifference and decreased voter turnouts. Political advertising encourages not an issue-based, but image and peripheral impression-based decision. Only candidates with big money can buy access to the publics because there is no limit in the amount of time that a candidate can purchase for political advertising.
Advertising or other sales representations which praise the item to be sold with subjective opinions, superlatives, or exaggerations, vaguely and generally, stating no specific facts.
Legal restrictions on advertising
Anybody can advertise as far as:
1. The product or service is legal
2. The advertisement is neither deceptive nor unfair.
1.There must be a representation, omission, or practice that is likely to mislead the consumer.
2.This representation, omission, or practice must be judged from the perspective of a consumer acting reasonably in the circumstances.
3.The representation, omission, or practice must affect the consumer’s conduct or decision with regards to the product or service.
Acts or practices that cause or are likely to cause substantial injury to consumers, which is not reasonably avoidable by consumers themselves, and not outweighed by the countervailing benefits to consumers or competition.
Government regulation on advertising
1) Federal Trade Commission (FTC)
2) Food and Drug Administration (FDA)
3) Securities and Exchange Commission (SEC)
4) U.S. Postal Service (USPS)
5) Bureau of Alcohol, Tobacco, and Firearms (ATF)
Federal Trade Commission (FTC)
the most comprehensive regulatory agency of advertising
Food and Drug Administration (FDA)
medicine, cosmetics, and food product advertising
Securities and Exchange Commission (SEC)
stock and bonds advertising
U.S. Postal Service (USPS)
distribution of obscene materials
Bureau of Alcohol, Tobacco, and Firearms (ATF)
Alcohol, tobacco ,and firearms advertising
Industry self-regulation of advertising
1)National Advertising Review Board (NARB)
2) State and local Better Business Bureaus (BBB)
3) Advertising agencies and associations
4) Media organizations
National Advertising Review Board (NARB)
consider cases reported by state and local better business bureaus
State and local Better Business Bureaus (BBB)
provide guidelines to local advertisers
3) Advertising agencies and associations
responsible for the content of ads that they produced
Media organizations
responsible for the content of ads that they placed. Can deny certain ads if the ads deem inappropriate.
History of PR
PRESS AGENTRY ERA: 1830 ~ 1900
PRESS AGENTRY ERA: 1830 ~ 1900
1.P. T. Barnum (1830s - 1900)
2.Political Campaigning: Press Bureau (1896)
1) Labor union conflicts: bad reputation of big businesses
2) Westinghouse in-house publicity bureau (1889)
3) Use of the term “Public Relations”
1.Ivy Redbetter Lee: Public-be-damned à Public-be-informed
2.First PR agency: Publicity Bureau (1900)
1. The Committee on Public Information (George Creel & Carl Byoir)
2. Development of various PR techniques
3. Training of many PR practitioners including Edward Bernays
1.Edward L. Bernays & Doris E. Fleischman
2.Burgeoning scholarly interest and practices
3.Walter Lippmann (1922)
“(development of public relations is) a clear sign that the facts of modern life did not spontaneously take a shape in which they can be known”
15. Relationship between journalists and public relations practitioners
Why do the media need public relations?
because of increasing amount of information available, cutback on news staffs, and local television stations’ needs for newscast events.
Why do public relations need the media?
because of the access to the general public unavailable elsewhere and the credibility they commend among the general public
why do the media not trust public relations?
because (they think) PR practitioners do not provide facts, but an interpretation of the facts favorable to their clients, PR practitioners block journalists’ access to news sources, PR only utilize the media to get free access to the audiences, and PR practitioners sometimes feed them with incorrect information.
Why do Public relations practitioners do not trust the media
because (they think) the media is only interested in bad stories about their organizations, the media dismiss a lot of information provided by public relations practitioners that public needs to know about, and the media sometimes misuse information provided by public relations practitioners.
Audiences for public relations communication messages
Employees, investors, consumers, business partners, governments, community, news media
Merge of public relations and advertising
Integrated marketing communication
• Public relations
use of controlled and uncontrolled media in an attempt to manage relationships between an organization and the publics that can affect its success
• Advertising
use of controlled media in an attempt to influence the actions of targeted consumers
Efforts of PRSA, the biggest public relations practitioners’ association in the U.S., to encourage professionalism among PR practitioners
1) Code of ethics
2) Accreditation
3) Research and professional development
4) Recognition of senior professionals
Two major sources of revenue for commercial media
Subscriptions/purchases and advertising
What are similarities between PR and advertising
1) Anybody including government, corporations, NPOs, and individuals can do it.
2) Advertising agencies and PR firms provide the services of creating and placing the messages and more than half of the revenues are made by mega agencies that include both advertising agencies and PR firms inside.
3) Need external facilitators such as research and marketing firms, information intermediaries.
4) Mass media is one major channel of information
5) PR and advertising practitioners have heavy social responsibilities.
6) PR and advertising is equally important because of their social implications.
What are differences between PR and advertising
1) The size of advertising industry is much bigger than PR industry because advertising heavily uses controlled mass media whereas PR doesn’t.
2) Whereas advertising only targets consumers, PR targets various publics that include consumers.
What group has been the target market for magazines for most of the past century?
Which of the following statements is TRUE?
A.Full-service agencies focus on particular products, like foods or women's products.
B.Most of today's advertisements are produced by special departments within manufacturing and service corporations not by traditional ad agencies.
C.Creative boutique agencies are full-service agencies with reputations for artistic and stylistic achievement.
D.In-house agencies serve a single industry, chain of stores or single business.
28. Which of the following is one of the key groups found in most full-service ad agencies?
A.Account management.
C.Creative department.
D.All of these.
29.The success of an advertisement or ad campaign is measured by
A.the degree to which it gets noticed and gets people talking about it.
B.the number of products it sells. well the company CEO likes it.
D.the Clio Awards presented each year to the most creative advertisements.
Advertising media and their share of advertising dollars
print – newspapers (25%), magazines (5%)
electronic – television (20%), radio (6%)
support – direct mail (20%), yellow pages (10%)
Process of a public relations campaign
Call for PR proposals „³ Presentation „³ Selection of one PR agency „³ Defining PR problems „³ Planning „³ Program implementation „³ Evaluation
Implications of the development of brands on advertising in the 1800s
predictability in product quality, product identity, packaging with brand name
the selection process in which some stories will appear on newspapers and television news while others will not amongst numerous news releases sent out by public relations practitioners
Advertisers know that it is impossible to persuade everybody in the population to buy their products or services. Therefore, they employ __________ strategies to reach a certain part of the population.
39. Guest speaking, video clips, the forum, etc.