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Part 1. Advertising Perspectives, 3
Chapter 1. What Is Advertising Today?, 4
What Is Advertising?, 7
Communication: What Makes Advertising Unique, 9
The Human Communication Process, 9
Applying the Communication Process to Advertising, 9
AD LAB 1–A Advertising as a Literary Form, 12
Marketing: Determining the Type of Advertising to Use, 13
What Is Marketing?, 14
ETHICAL ISSUES Ethics in Advertising: An Overview, 15
Advertising and the Marketing Process, 15
Identifying Target Markets and Target Audiences, 16
Implementing Marketing Strategy, 18
PORTFOLIO REVIEW Building Brand Value, 20
Integrating Marketing Communications, 25
Chapter 2. The Evolution of Advertising, 28
Economics: The Growing Need for Advertising, 31
Principles of Free-Market Economics, 31
Functions and Effects of Advertising in a Free Economy, 32
The Evolution of Advertising as an Economic Tool, 34
PORTFOLIO REVIEW The Modern History of Advertising, 36
ETHICAL ISSUES Ethical Dilemma or Ethical Lapse?, 42
The Global Interactive Age: Looking at the 21st Century, 48
AD LAB 2-A What Kills Bugs Dead?, 50
Society and Ethics: The Effects of Advertising, 51
Chapter 3. The Economic, Social, and Regulatory Aspects of Advertising, 54
The Many Controversies about Advertising, 56
The Economic Impact of Advertising, 58
Effect on the Value of Products, 59
Effect on Prices, 60
Effect on Competition, 60
Effect on Consumer Demand, 61
Effect on Consumer Choice, 61
Effect on the Business Cycle, 61
The Abundance Principle: The Economic Impact of Advertising in Perspective, 62
The Social Impact of Advertising, 62
Deception in Advertising, 63
The Subliminal Advertising Myth, 64
The Effect of Advertising on Our Value System, 64
AD LAB 3–A Unfair and Deceptive Practices in Advertising, 65
The Proliferation of Advertising, 65
The Use of Stereotypes in Advertising, 67
Offensiveness in Advertising, 68
The Social Impact of Advertising in Perspective, 69
Social Responsibility and Advertising Ethics, 70
Advertisers' Social Responsibility, 70
Ethics of Advertising, 71
ETHICAL ISSUES Truth in Advertising: Fluffing and Puffing, 72
How Government Regulates Advertising, 74
Government Restraints on International Advertisers, 74
Current Regulatory Issues Affecting U.S. Advertisers, 75
Freedom of Commercial Speech, 75
AD LAB 3–B The Importance of Good Legal Counsel in Advertising, 76
Consumer Privacy, 79
Federal Regulation of Advertising in North America, 80
The U.S. Federal Trade Commission, 81
The Food and Drug Administration (FDA), 84
The Federal Communications Commission (FCC), 85
The Patent and Trademark Office and the Library of Congress, 86
State and Local Regulation, 87
Regulation by State Governments, 87
Regulation by Local Governments, 87
Nongovernment Regulation, 87
The Better Business Bureau (BBB), 88
The National Advertising Review Council (NARC), 88
Regulation by the Media, 89
AD LAB 3–C Editorial or Advertising: It's Adversarial, 90
Regulation by Consumer Groups, 91
Self-Regulation by Advertisers, 92
Self-Regulation by Ad Agencies and Associations, 92
The Ethical and Legal Aspects of Advertising in Perspective, 93
Chapter 4. The Scope of Advertising: From Local to Global, 96
The Advertising Industry, 98
The Organizations in Advertising, 98
The People in Advertising, 98
The Advertisers (The Clients), 98
Local Advertising: Where the Action Is, 99
CHECKLIST Creating Local Advertising, 102
Regional and National Advertisers, 103
AD LAB 4–A The Co-op Marriage, 104
Transnational Advertisers, 106
The Advertising Agency, 108
The Role of the Advertising Agency, 108
Types of Agencies, 109
AD LAB 4–B How Big Is the Agency Business?, 110
What People in an Agency Do, 113
How Agencies Are Structured, 117
How Agencies Are Compensated, 118
The In-House Agency, 120
The Client/Agency Relationship, 120
How Agencies Get Clients, 120
ETHICAL ISSUES Accounting for Account Reviews, 122
Stages in the Client/Agency Relationship, 122
CHECKLIST Agency Review, 124
Factors Affecting the Client/Agency Relationship, 124
CHECKLIST Ways to Be a Better Client, 125
The Suppliers in Advertising, 126
Art Studios and Web Designers, 126
Printers and Related Specialists, 126
Film and Video Houses, 126
Research Companies, 126
The Media of Advertising, 127
Print Media, 127
Electronic Media, 128
Digital Interactive Media, 128
Out-of-Home Media, 129
Direct Mail, 129
Other Media, 129
Media around the World, 130
Part 2. Crafting Marketing and Advertising Strategies, 135
Chapter 5. Marketing and Consumer Behavior: The Foundations of Advertising, 136
The Larger Marketing Context of Advertising, 139
The Relationship of Marketing to Advertising, 139
Customer Needs and Product Utility, 139
AD LAB 5–A Understanding Needs and Utility, 140
Exchanges, Perception, and Satisfaction, 140
The Key Participants in the Marketing Process, 142
Customers, 142
Markets, 143
Marketers, 144
Consumer Behavior: The Key to Advertising Strategy, 145
The Importance of Knowing the Consumer, 145
The Consumer Decision Process: An Overview, 145
Personal Processes in Consumer Behavior, 147
The Consumer Perception Process, 147
Learning and Persuasion: How Consumers Process Information, 149
The Consumer Motivation Process, 153
Interpersonal Influences on Consumer Behavior, 155
ETHICAL ISSUES Is It Marketing or Is It Exploitation?, 156
Family Influence, 156
Societal Influence, 157
Cultural and Subcultural Influence, 159
Nonpersonal Influences on Consumer Behavior, 161
Time, 161
Place, 161
Environment, 161
AD LAB 5–B Applying Consumer Behavior Principles to Ad Making, 162
The Purchase Decision and Postpurchase Evaluation, 162
Chapter 6. Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy, 166
The Market Segmentation Process, 168
Segmenting the Consumer Market: Finding the Right Niche, 169
ETHICAL ISSUES Brand Niching May Cause Brand Switching, 176
Psychographic Segmentation, 177
Segmenting Business and Government Markets: Understanding Organizational Buying Behavior, 180
AD LAB 6–A Market Segmentation: A Dog of a Job, 181
Aggregating Market Segments, 183
The Target Marketing Process, 184
Target Market Selection, 184
The Marketing Mix: A Strategy for Matching Products to Markets, 186
AD LAB 6–B Understanding the Product Element: Starbucks Coffee, 187
Advertising and the Product Element, 188
Product Life Cycles, 188
Product Classifications, 190
Product Positioning, 190
Product Differentiation, 191
Product Branding, 192
Product Packaging, 193
Advertising and the Price Element, 195
Key Factors Influencing Price, 195
Advertising and the Distribution (Place) Element, 197
Direct Distribution, 197
Indirect Distribution, 197
AD LAB 6–C Starbucks and the Place Element, 198
Vertical Marketing Systems: The Growth of Franchising, 200
Advertising and the Communication (Promotion) Element, 200
Personal Selling, 200
Advertising, 201
Direct Marketing, 201
Public Relations, 201
Collateral Materials, 201
Sales Promotion, 201
AD LAB 6–D Price and Promotion, 202
The Marketing Mix in Perspective, 203
Chapter 7. Research: Gathering Information for Advertising Planning, 206
The Need for Research in Marketing and Advertising, 209
What Is Marketing Research?, 209
What Is Advertising Research?, 210
Applying Research to Advertising Decision Making, 210
Advertising Strategy Research, 211
Developing Creative Concepts, 214
Pretesting and Posttesting, 214
Steps in the Research Process, 216
Step 1: Analyzing the Situation and Defining the Problem, 217
Step 2: Conducting Informal (Exploratory) Research, 217
Step 3: Establishing Research Objectives, 219
Step 4: Conducting Formal Research, 219
CHECKLIST Methods for Pretesting Ads, 224
CHECKLIST Methods for Posttesting Ads, 225
Step 5: Interpreting and Reporting the Findings, 226
Important Issues in Advertising Research, 226
Considerations in Conducting Formal Quantitative Research, 226
ETHICAL ISSUES Research Statistics Can Be Friends or Foes, 228
Collecting Primary Data in International Markets, 229
CHECKLIST Developing an Effective Questionnaire, 231
Chapter 8. Marketing and Advertising Planning: Top-Down, Bottom-Up, and IMC, 234
The Marketing Plan, 237
The Importance of Marketing Planning, 237
The Effect of the Marketing Plan on Advertising, 237
Top-Down Marketing, 237
AD LAB 8–A The Strategies of Marketing Warfare, 240
ETHICAL ISSUES A War of Comparisons, 242
Bottom-Up Marketing: How Small Companies Plan, 243
The New Marketing Mantra: Relationship Marketing, 244
The Importance of Relationships, 244
Levels of Relationships, 245
Using IMC to Make Relationships Work, 246
IMC: The Concept and the Process, 247
The Dimensions of IMC, 249
The IMC Approach to Marketing and Advertising Planning, 250
The Importance of IMC to the Study of Advertising, 252
The Advertising Plan, 252
Reviewing the Marketing Plan, 252
Setting Advertising Objectives, 252
Advertising Strategy and the Creative Mix, 255
The Secret to Successful Planning, 258
Allocating Funds for Advertising, 258
Advertising: An Investment in Future Sales, 258
PORTFOLIO REVIEW Strategic Use of the Creative Mix, 260
AD LAB 8–B The Economic Effect of Advertising on Sales, 263
Methods of Allocating Funds, 263
CHECKLIST Ways to Set Advertising Budgets, 265
The Bottom Line, 265
Chapter 9. Planning Media Strategy: Finding Links to the Market, 268
Media Planning: Integrating Science with Creativity in Advertising, 271
The Challenge, 271
AD LAB 9-A Off-the-Wall Media That Pull Customers Off the Fence, 273
ETHICAL ISSUES The Ethical Dilemmas of Agency Compensation, 276
The Role of Media in the Marketing Framework, 277
The Media-Planning Framework, 280
Defining Media Objectives, 280
Audience Objectives, 280
Message-Distribution Objectives, 282
Optimizing Reach, Frequency, and Continuity: The Art of Media Planning, 285
Developing a Media Strategy: The Media Mix, 286
Elements of the Media Mix: The Five Ms, 286
Factors That Influence Media Strategy Decisions, 287
CHECKLIST International Media Planning, 292
Stating the Media Strategy, 294
Media Tactics: Selecting and Scheduling Media Vehicles, 294
Criteria for Selecting Individual Media Vehicles, 294
AD LAB 9–B Media Selection: Quicklist of Advantages, 295
Economics of Foreign Media, 297
The Synergy of Mixed Media, 297
Methods for Scheduling Media, 298
Computers in Media Selection and Scheduling, 299
Part 3. Integrating Advertising with Other Elements of the Communications Mix, 303
Chapter 10. Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion, 304
The Importance of Relationship Marketing and IMC, 307
Understanding Direct Marketing, 307
The Role of Direct Marketing in IMC, 309
The Evolution of Direct Marketing, 309
The Impact of Databases on Direct Marketing, 310
The Importance of Direct Marketing to IMC, 311
ETHICAL ISSUES Political Advertising: Positively Negative, 312
Drawbacks to Direct Marketing, 314
Types of Direct Marketing Activities, 315
Direct Sales, 315
Direct-Response Advertising, 316
Personal Selling: The Human Medium, 318
Types of Personal Selling, 319
Advantages of Personal Selling, 320
Drawbacks of Personal Selling, 320
The Role of Personal Selling in IMC, 321
Gathering Information, 321
Providing Information, 321
Fulfilling Orders, 321
Building Relationships, 322
The Role of Sales Promotion in IMC, 322
The Positive Effect of Sales Promotion on Brand Volume, 323
CHECKLIST Creating Effective Sales Promotions, 324
The Negative Effect of Sales Promotion on Brand Value, 324
Sales Promotion Strategies and Tactics, 325
Giving Brands a Push with Trade Promotions, 325
Using Consumer Promotions to Pull Brands Through, 328
AD LAB 10–A Applying Push/Pull Strategies to Sales Promotion, 329
Chapter 11. Relationship Building: Public Relations, Sponsorship, and Corporate Advertising, 336
The Role of Public Relations, 338
The Difference between Advertising and Public Relations, 339
ETHICAL ISSUES When Is Advertising Not Really Advertising?, 340
Advertising and PR in the Eyes of Practitioners, 340
The Public Relations Job, 342
PR Planning and Research, 342
Reputation Management, 343
Other Public Relations Activities, 345
AD LAB 11–A “Green” Advertising, 346
Public Relations Tools, 347
CHECKLIST How to Write a News Release, 348
Sponsorships and Events, 349
The Growth of Sponsorship, 350
Benefits of Sponsorship, 351
Drawbacks of Sponsorship, 351
Types of Sponsorship, 352
Methods of Sponsorship, 355
CHECKLIST How to Select Events for Sponsorship, 356
Measuring Sponsorship Results, 356
Corporate Advertising, 356
Public Relations Advertising, 357
Corporate/Institutional Advertising, 357
Corporate Identity Advertising, 358
Recruitment Advertising, 358
AD LAB 11–B David Ogilvy on Corporate Advertising, 359
PORTFOLIO REVIEW Corporate Advertising, 360
Part 4. Creating Advertisements and Commercials, 367
Chapter 12. Creative Strategy and the Creative Process, 368
The Creative Team: The Authors and Encoders of Advertising, 371
What Makes Great Advertising?, 371
The Resonance Dimension, 372
The Relevance Dimension, 373
Formulating Advertising Strategy: The Key to Great Creative, 373
Writing the Creative Brief (Copy Platform), 374
Elements of Message Strategy, 376
How Creativity Enhances Advertising, 377
What Is Creativity?, 377
The Role of Creativity in Advertising, 377
AD LAB 12–A The Psychological Impact of Color, 379
Understanding Creative Thinking, 379
The Creative Process, 382
The Explorer Role: Gathering Information, 382
Develop an Insight Outlook, 382
Know the Objective, 383
Brainstorm, 383
The Artist Role: Developing and Implementing the Big Idea, 384
Task 1: Develop the Big Idea, 384
Task 2: Implement the Big Idea, 387
ETHICAL ISSUES Does Sex Appeal?, 388
The Creative Pyramid: A Guide to Formulating Copy and Art, 388
The Judge Role: Decision Time, 392
AD LAB 12–B Applying the Creative Pyramid to Advertising, 393
The Warrior Role: Overcoming Setbacks and Obstacles, 393
AD LAB 12–C The Creative Gymnasium, 395
PORTFOLIO REVIEW The Creative Director's Greatest Ads, 396
Chapter 13. Creative Execution: Art and Copy, 402
Delivering on the Big Idea: The Visual and the Verbal, 404
The Art of Creating Print Advertising, 404
Designing the Print Ad, 404
The Use of Layouts, 406
Advertising Design and Production: The Creative and Approval Process, 406
AD LAB 13–A The Role of the Advertising Artist, 407
Effect of Computers on Graphic Design, 408
Principles of Design: Which Design Formats Work Best, 409
The Use of Visuals in Print Advertising, 410
PORTFOLIO REVIEW The Art Director's Guide to Layout Styles, 412
Copywriting and Formats for Print Advertising, 415
Headlines, 415
ETHICAL ISSUES Imitation, Plagiarism, or Flattery?, 416
Subheads, 419
Body Copy, 419
CHECKLIST Writing Effective Copy, 420
Slogans, 422
Seals, Logos, and Signatures, 422
Copywriting for Electronic Media, 422
Writing Radio Copy, 423
CHECKLIST Creating Effective Radio Commercials, 424
Writing Television Copy, 424
CHECKLIST Creating Effective TV Commercials, 425
The Role of Art in Radio and TV Advertising, 425
Developing the Artistic Concept for Commercials, 425
Formats for Radio and TV Commercials, 426
AD LAB 13–B Creative Ways to Sell on Radio, 427
Basic Mechanics of Storyboard Development, 430
Writing for the Web, 431
Creating Ads for International Markets, 432
Translating Copy, 432
Art Direction for International Markets, 433
Legal Restraints on International Advertisers, 434
Chapter 14. Producing Ads for Print, Electronic, and Digital Media, 438
Managing the Advertising Production Process, 440
The Role of the Production Manager or Producer, 440
Managing Production Costs, 441
The Print Production Process, 444
The Preproduction Phase: Planning the Project, 445
AD LAB 14–A The Characteristics of Type, 446
The Production Phase: Creating the Artwork, 448
The Prepress Phase: Stripping, Negs, and Plates, 451
The Duplication and Distribution Phase: Printing, Binding, and Shipping, 452
Quality Control in Print Production, 452
Production Phase Quality Issues, 452
Prepress Quality Issues, 452
PORTFOLIO REVIEW Creative Department: From Concept through Production of a Magazine Ad and Television Commercial, 454
The Radio Commercial Production Process, 460
Preproduction, 460
Production: Cutting the Spot, 461
Postproduction: Finishing the Spot, 462
The Television Commercial Production Process, 462
The Role of the Commercial Producer, 462
The Preproduction Phase, 463
AD LAB 14–B The Film versus Tape Decision, 465
Production: The Shoot, 465
Postproduction, 467
ETHICAL ISSUES Closed-Circuit Programming, 468
Producing Advertising for Digital Media, 468
The Emergence of Digital Media, 469
The Role of Digital Media in Advertising, 471
The People Who Produce Digital Media Advertising, 471
The Production Process, 472
Part 5. Using Advertising Media, 477
Chapter 15. Using Print Media, 478
The Role of the Print Media Buyer, 480
Using Magazines in the Creative Mix, 481
The Pros and Cons of Magazine Advertising, 481
Special Possibilities with Magazines, 481
CHECKLIST The Pros and Cons of Magazine Advertising, 482
AD LAB 15–A Magazines and the Creative Mix, 483
How Magazines Are Categorized, 483
AD LAB 15–B Innovations in Magazine Advertising, 484
Geography, 485
PORTFOLIO REVIEW Outstanding Magazine Ads, 486
Buying Magazine Space, 490
Understanding Magazine Circulation, 490
Reading Rate Cards, 492
Software for Buying Print Media, 493
Using Newspapers in the Creative Mix, 493
Who Uses Newspapers?, 494
The Pros and Cons of Newspaper Advertising, 494
CHECKLIST The Pros and Cons of Newspaper Advertising, 495
How Newspapers Are Categorized, 495
AD LAB 15–C Newspapers and the Creative Mix, 496
Types of Newspaper Advertising, 497
How Advertisers Buy Newspaper Space, 498
Understanding Readership and Circulation, 498
ETHICAL ISSUES What's at Stake with Sweepstakes?, 500
Co-ops and Networks, 501
Insertion Orders and Tearsheets, 502
Print: A Worldwide Medium, 502
CHECKLIST What Works Best in Print, 503
Print Media and New Technologies, 504
Sources of Print Media Information, 505
Chapter 16. Using Electronic Media: Television and Radio, 508
The Medium of Television, 510
Broadcast TV, 510
Cable TV, 511
TV Audience Trends, 512
CHECKLIST The Pros and Cons of Broadcast TV Advertising, 513
The Use of Television in IMC, 515
Types of TV Advertising, 515
CHECKLIST The Pros and Cons of Cable TV Advertising, 516
ETHICAL ISSUES Advertising to Children: Child's Play?, 518
TV Audience Measurement, 521
Rating Services: The Book, 521
AD LAB 16–A Where Do Those Infamous TV Ratings Come From?, 522
Cable Ratings, 522
Defining Television Markets, 523
Dayparts, 523
Audience Measures, 524
Gross Rating Points, 524
Buying Television Time, 525
Requesting Avails, 525
Selecting Programs for Buys, 525
AD LAB 16–B Getting “You're Out” on TV, 526
Negotiating Prices and Contracts, 526
Electronic Media Buying Software, 527
Other Forms of Television, 527
Advertising on Video Rentals, 527
The Medium of Radio, 528
Who Uses Radio?, 528
The Use of Radio in IMC, 528
Radio Programming and Audiences, 529
Buying Radio Time, 530
Types of Radio Advertising, 530
Radio Terminology, 531
CHECKLIST The Pros and Cons of Radio Advertising, 532
AD LAB 16–C The Reports That Make or Break Radio Stations, 533
The Seven Steps in Preparing a Radio Schedule, 535
Chapter 17. Using Digital Interactive Media and Direct Mail, 538
Digital Interactive Media, 540
The Internet as a Medium, 542
A Brief History of the Internet and the World Wide Web, 544
Web Portals, 545
Google and Internet Search, 545
The Internet Audience, 549
PORTFOLIO REVIEW Advertising on the Internet, 550
Types of Internet Advertising, 556
Problems with the Internet as an Advertising Medium, 559
CHECKLIST The Pros and Cons of Internet Advertising, 560
Using the Internet in IMC, 560
Measuring the Internet Audience, 561
Seeking Standardization, 561
The Promise of Enhanced Tracking, 562
AD LAB 17–A Internet Ratings: The Next Frontier, 563
Buying Time and Space on the Internet, 563
Pricing Methods, 564
The Cost of Targeting, 564
Stretching Out the Dollars, 565
ETHICAL ISSUES Profi ling: Would You Take Cookies from a Stranger?, 566
The Global Impact of the Internet, 566
Other Interactive Media, 567
DVD Catalogs and Magazines, 567
Kiosks, 568
Interactive TV, 568
Cell Phone Advertising, 568
Direct-Mail Advertising: The Addressable Medium, 569
Growth of Direct Mail, 571
Types of Direct-Mail Advertising, 571
Using Direct Mail in the Media Mix, 572
Buying Direct-Mail Advertising, 572
CHECKLIST The Pros and Cons of Direct-Mail Advertising, 573
AD LAB 17–B Developing Effective Direct-Mail Packages, 575
Chapter 18. Using Out-of-Home, Exhibitive, and Supplementary Media, 578
Out-of-Home Media, 580
Outdoor Advertising, 580
Standardization of the Outdoor Advertising Business, 581
Types of Outdoor Advertising, 581
CHECKLIST The Pros and Cons of Outdoor Advertising, 582
AD LAB 18-A How to Use Type and Color in Billboard Advertising, 583
Buying Outdoor Advertising, 584
PORTFOLIO REVIEW Out-of-Home Advertising, 586
Regulation of Outdoor Advertising, 591
Transit Advertising, 591
ETHICAL ISSUES Does Spillover Need Mopping Up?, 592
Types of Transit Advertising, 592
CHECKLIST The Pros and Cons of Transit Advertising, 594
Buying Transit Advertising, 594
Other Out-of-Home Media, 595
Mobile Billboards, 595
Electronic Signs and Display Panels, 595
Parking Meters and Public Phones, 595
Exhibitive Media, 595
Product Packaging, 596
Trade-Show Booths and Exhibits, 598
Supplementary Media, 599
Specialty Advertising, 599
Directories and Yellow Pages, 600
Emerging Media, 601
Epilogue: Repositioning a Brand: MasterCard's “Priceless” Campaign, 606
Appendix A. Marketing Plan Outline, 618
Appendix B. Advertising Plan Outline, 624
Important Terms, 628
End Notes, 653
Credits and Acknowledgments, 673
Name Index, 678
Company and Brand Index, 683
Subject Index, 690

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