CourseSmart Reader

Contemporary Advertising, 11th Edition

by Arens, William; Weigold, Michael; Arens, Christian

Publisher: McGraw-Hill Higher Education

Publishing Date: 2007/03/16

eText ISBN-10

0-07-724491-5

eText ISBN-13

978-0-07-724491-0

Print ISBN-10

0-07-352991-5

Print ISBN-13

978-0-07-352991-2

Saleable Print ISBN-10

0-07-352991-5

Saleable Print ISBN-13

978-0-07-352991-2

Table of Contents

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

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

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

ETHICAL ISSUES Imitation, Plagiarism, or Flattery?, 416

CHECKLIST Writing Effective Copy, 420

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

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

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

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

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

Credits and Acknowledgments, 673

Name Index, 678

Company and Brand Index, 683

Subject Index, 690

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