Advertising

Question 1

What is the new world of advertising?

Answer 1

1. Banner ads
2. Pop ads
3. Viral marketing
4. Pay-per-click

examples of new world ads:
NY times has license to use Google technology when readers enter search terms on Google

search for NY times coverage of Jamaica after a hurricane will produce Times stories on Jamaica and also ads for Caribbean travel elsewhere on the internet

Google pays the times a click-through fee from the revenue that the advertiser originally paid Google to place the ad.

Question 2

Advertising industry now

Answer 2

Almost 600 billion dollar industry

(use same figure for 2024)

Question 3

What is the basic underpinning principle?

Answer 3

There is a correlation between degree of exposure and subsequent sales

A. awareness
B.
C.

Question 4

Definition of advertising?

Answer 4

Getting word out about a company’s products or services through a campaign that promotes the company’s brand, typically by making comparisons with the competition

Question 5

Countries that spend the most money on advertising?

Answer 5

1. USA
2. China (State capitalism)
3. Japan
4. Germany
5. United Kingdom

Question 6

What was the thesis of Puffery?

Answer 6

We should protect the vulnerable
The ignorant person’s standards should be our new standards

new advertising; get fact

Deception and falsity
Do we want to move to a Preston interpretation or keep the current interpretation

Question 7

Is advertising pro or anti-competitive?

Answer 7

Pro compeititve positon:
- provides consumers with info about price and product quality
-increases competition

Anti:
- reduces competition bc gives “established” large firms a competitive advantage over small, start-ups in spreading their message

• allows large companies to create product differentiation via advertisingm thus taking all the accepted niches in the marketplace
• conlclusion: advertising is anti-competitive and harmful to society

Question 8

Three points on advertising?

Answer 8

1. Advertising is the dominant story telling force in our times
2. More thought, more efforts and more creativity goes into advertising than other media materials
3. Advertising “colonizes” our culture- imposes images and values that are seductive

Question 9

6 points on the history of advertising?

Answer 9

1. By-product of the industrial revolution. Production was increased. Trains and network of roads improved transportation

(Production, distribution, consumption)

4. Early 20th century: ads targeted at women who made the household consumer purchases
   branding became important
5. Emergence of mega agencies:
   WWP
   Omicron Group
   Publicis Groupe

Question 10

What is WWP?

Answer 10

Wire and Pralastic Product- KFC, now goes by WWP

Question 11

Why have governments involved in advertising? Why not allow each individual to make up his/own mind?
Why not blow volunteer groups- consumer activists to spread the news? Keep government out of process?

Question 12

Harms that come with advertising?

Answer 12

Consumer, seller, marketplace

Question 13

What is the Federal Trade Commission;’

Answer 13

5. Became a more aggressive agency

During 50s and 60s, it was a quiet agency. During 1970s, energized

Question 14

What was the Wheeler-Lea Amendment?

Answer 14

designed to protect consumers from predatory practices

Go from “let the buyer beware” to “let the seller beware”

Question 15

What are 5 tools of TFC enforcement?

Answer 15

1. Publicity- investigate a product, draw attention to its drawback
2. Advisory opinion: FTC responds to complaints from an individual and passes industry-wide guidelines
3. Letters of voluntary compliance: An individual complains, FTC investigates, company promises in writing not to enforce
4. Consent order:
5. Cease and desist order

Question 16

Three new procedures to aid consumers?

Answer 16

1. Corrective advertising
2. Profile bread case- advertising that you will loose weight by eating profile bread