You gotta just love some ads Advertising and

You gotta just love some ads!

Advertising and the Selling of Products and Presidents

Advertising and the Selling of Products and Presidents Learning Objectives n n To understand how advertising developed in the United States. To understand advertising as an economic force. To understand advertising as a social force. To understand advertising as a political force.

Advertising and the Selling of Products and Presidents

Discussion Agenda n Advertising as a Special Rhetoric n Advertising in Modern America n Beginning of Modern Advertising and Mass Culture n Three Dimensions of Advertising

Advertising in Modern America

What does the word advertising mean? n A. Notify n B. Exemplify n C. Specify n D. Persuade

What does the word advertising mean? n. A. n B. Notify Exemplify n C. Specify n D. Persuade

Advertising Defined n Advertising is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor.

How many ads is a person exposed to daily? n A. 30 n B. 300 n C. 3, 000 n D. 5, 000

How many ads is a person exposed to daily? n A. n B. 30 300 n. C. n C. 3, 000 5, 000

How much is spent yearly on advertising worldwide? n A. $450, 000 n B. $450, 000 n C. $450, 000, 000 n D. $950, 000, 000

How much is spent yearly on advertising worldwide? n A. $450, 000 n B. $450, 000 n. C. n D. $450, 000, 000 $950, 000, 000

What is the single most recognized utterance in the world? n A. n B. n C. n D. Ok No Stop Beer

What is the single most recognized utterance in the world? n. A. n B. Ok No n C. Stop n D. Beer

What is the second most recognized utterance in the world? n A. n B. n C. n D. Mc. Donald’s Coke Aspirin Beer

What is the second most recognized utterance in the world? n A. Mc. Donald’s n. B. n C. Coke Aspirin n D. Beer

What is the most successful, yet reviled, advertising icon in history? n A. Marlboro Man n B. Jack in the Box Clown n C. Camel Cigarettes Camel n D. Ronald Mc. Donald

What is the most successful, yet reviled, advertising icon in history? n. A. n B. Marlboro Man Jack in the Box Clown n C. Camel Cigarettes Camel n D. Ronald Mc. Donald

What is an example of a product that, despite heavy advertising, bombed? n A. n B. n C. n D. Slinky toy Edsel Volvo Valu. Jet

What is an example of a product that, despite heavy advertising, bombed? n A. Slinky toy n. B. n C. Edsel Volvo n D. Valu. Jet

A Special Rhetoric

Advertising’s influence on our culture is evidenced by the fact that the Archives Center of the Smithsonian Institute’s National Museum of American History devotes a good portion of its collections to the category of advertising, along with music and technology.

Advertising wasn’t always respected or thought of as a special rhetoric. For example, during the Colonial and Revolutionary periods, many printers thought advertisements were degrading and detracted from the newspaper’s contents.

Emerging Mass Markets in the Communications Century After the Civil War the rapid expansion of transportation gave way to increasing urbanization, rapid technology growth, and corporate consolidation but also as extensions of the nation’s marketing system. Specialized machinery spurred production of goods as transportation advances sped the distribution of those goods.

Emerging Mass Markets in the Communications Century Advertising, thus, participated actively in a dynamic period that may well be called the communications century. Those living in the last decade of the nineteenth century witnessed a cultural change perhaps unprecedented in the United States as the nation shifted from a producer to a consumer economy, and …. advertising became the single most useful tool to promote consumption.

Challenge for Advertising u. Get people to buy goods they had been making at home u. Change from ‘working for self’ to working for wages

Advertising and Mass Culture

The Merchant Prince Department stores serve well as a focus for describing the development of a culture of consumption -- they had integrated concepts of visual display, public service, and advertising. -- In the 1890 s, the department stores not only perfected the visual display of goods but they built their own auditoriums, putting on musicals and plays.

The Merchant Prince John Wanamaker, called the merchant prince, created a store that had … 33 blocks of counters, numbering 129 in all, and …. . aggregating two-thirds of a mile in length and …. . in front of which are 1400 stools for the convenience of shoppers. The main store in Philadelphia counted 70, 00 people entering the store in an hour on opening day. At its height, the store had eight acres of floor space.

Three Dimensions of Advertising ü Economic ü Communicative ü Societal

Economic Dimension #1 What was the role of advertising in marketing? Did it sell products? Did it produce demand that resulted in economies of scale? Economic Dimension #2 Financial support that advertising provided mass media

Communicative Dimension Should advertising be hard-sell or soft-sell?

Societal Dimension ° The Ethical/Legal Issue: Did advertising make people buy things they did not want and could not afford? ° Did it serve or manipulate people? ° Did advertising frame society’s values, or did it reflect independently established conventions? Sociology / psychology emerging … sociologists were the people principally interested in these questions.

Beginning of Modern Advertising

° The roots of modern advertising Albert Lasker and the Beginning of Modern Advertising are normally associated with the early 20 th century in the United States. ° The nation was a brawling youngster flooded with immigrants. ° Manufacturing and other activities attracted large numbers of people to mostly eastern cities. ° Literacy and educational levels were climbing. ° Newspapers gained unprecedented circulation as did magazines. Thus, manufacturers were able to reach large markets via media.

Albert Lasker and the Beginning of Modern. Advertising ° From the standpoint of the message, advertising lacked a sense of direction. It was largely passive. ° Albert Lasker, a partner in Lord & Thomas, one of the nation’s largest advertising agencies. ° He would become one of the dominant and most influential figures in American advertising, ° And he became very wealthy doing it. During his 44 years with Lord & Thomas, he earned about $45 million. ° He became increasing troubled by the question, “What is advertising? ”

Albert Lasker: Hard Sell n Approach: Persuade – From J. E. Kennedy school of advertising – Give reasons why consumer should purchase product – Copy must be persuasive and positive

Salesmanship in Print “Advertising is multiplied salesmanship. It may appeal to thousands while the salesman talks to one. ” Claude C Hopkins

Salesmanship in Print n Approach: Sell product’s uniqueness – Offer money-back guarantees if customers did not like the product. – Developed mail-order advertising – Tied to coupons and premiums

Claude C. Hopkins “Washed with live steam”

Albert Lasker “Father of modern advertising”

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Stanley Resor J. Walter Thompson ° As Lasker, Kennedy and Hopkins were advancing the hard-sell approach, competing agencies were developing other approaches. ° Some, for example, found great power in advertising copy that suggested rather than insisted and operated at the consumer’s subconscious rather than at the conscious level. ° Among the leaders of this psychological approach to advertising were the J. Walter Thompson Agency.

Stanley Resor: Psychological Approach n Approach: Aim at the subconscious – Appeal to vanity, fear, and jealousy – Use testimonials from famous people

Stanley Resor: Psychological Approach n Invented cure H alit s osi diseases for his product to Body Order Ath lete ’s f oot

Ethics in Advertising

n Francis Wayland Ayer – Open contract plus commission – Represent and be paid for by the advertiser not publisher – Contract would bind agent and advertiser for a year with agent taking a percentage of the billing – Led to a standard 15% commission

Lydia Pinkham’s Vegetable Compound And it is so tasty, real tasty, too!!! ° A second ethical problem to emerge dealt with patent medicines. One of the most important developed came into widespread use during this period—an emphasis on brands. ° Manufacturers realize that in order to make a profit, these branded products had to be mass-produced for national consumption.

May 7, 1872 Patent medicines showed the power of advertising. Sales increased when advertising was applied and decreased when it was pulled. BUT, the exaggerated claims for these products were disreputable, contributing significantly to a growing bad reputation for advertising.

Even Coca-Cola was initially marketed to consumers as having medicinal properties. In fact, Coca-Cola contained cocaine up until the turn of the century, when caffeine was substituted for the drug.

Sept. 23, 1881 Demand by product companies and department stores for advertising space was so heavy that the ratio of advertising to news changed drastically in most newspapers. In the mid-1880 s the ratio was 75 percent editorial to 25 percent advertising. By the turn of the century this ratio was 50 -50.

Let’s look at some of this ridiculous poitents. May 8, 1872

Sept. 12, 1881

Dec. 23, 1903

Next n Advertising as a Economic Force n Advertising as an Social Force n Advertising as a Political Force n Challenges to the Advertising Industry

He was the first to craft political television commercials for presidential candidates: See Chap. 11

He was America’s first advertising agent See Chap. 11

He developed what he called “the Open Contract” plus commission in an effort to make advertising practices more ethical: See Chap. 11

This became the first products advertised on a large national scale, and for the first time ads used vivid and clever sales pitches: See Chap. 11

What was it as a category that: showed the power of advertising, contributed significantly to a growing bad reputation for advertising, had the highest brand values during the 1800 s and dominated the advertising business, contributing half of ad agencies revenues during advertising’s early years? See Chap. 11

What does the chapter say regarding government regulation of advertising? : See Chap. 11

He created a system to make television advertising affordable: See Chap. 11

Advertising genius ______ became the first woman CEO of a company listed on the New York Stock Exchange See Chap. 11

This advertising executive’s name conjures up images of advertising that transcends the usual, defies convention and delivers insightdriven messages that are more likely to become part of the American lexicon and pop culture: See Chap. 11

This advertising giant invented the unique selling proposition: See Chap. 11

The first television political advertisements were crafted for: See Chap. 11

He rationalized advertising practices by introducing a formula whereby a certain percentage of a newspaper’s space would be devoted to advertising: See Chap. 11

His political campaign produced one of the most controversial political ads in history: See Chap. 11

More may be added… See Chap. 11

More may be added… See Chap. 11

More may be added… See Chap. 11

Advertising and the Selling of Products and Presidents Part 2

Advertising and the Selling of Products and Presidents Part 2

Advertising and the Selling of Products and Presidents Part 1

Advertising and the Selling of Products and Presidents Part 2

Discussion Agenda n Advertising as a Economic Force n Advertising as an Social Force n Advertising as a Political Force n Challenges to the Advertising Industry

Advertising as an Economic Force

Economic Role of Advertising § Provides the revenue for American mass media to operate

Economic Role of Advertising § Pushes modernity and economic growth

Advertising as a Social Force

Advertising as a Social Force

Advertising as a Social Force

Advertising as a Social Force n Promoted a society of leisure n Replaced person interactions with paid “services” n Changed the notion of work from being a source of intrinsic satisfaction to chiefly a means of earning income

Advertising as a Social Force n Unified communities – Created consumption communities which replaced ethnic bonds

Advertising as a Social Force n Simply— Advertising brought about the transition from the industrial culture to consumer culture

Advertising as a Political Force

Rosser Reeves

Rosser Reeves n First to apply product selling techniques to politicians n Success developed the profession of media consulting from to

Challenges Facing the Advertising Industry

Challenges Facing the Advertsing Industry

Conclusions n Advertising promoted a society of leisure n Advertising unified the nation, creating consumption communities that replaced ethnic bonds n Advertising created a nation of homogenized tastes

Conclusions n Advertising is a political force with most Americans only knowing about political candidates what they reap from campaign advertisements and commercials.

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