CourseSmart - 0077271483 - Essentials of Contemporary Advertising, 2nd Edition

Essentials of Contemporary Advertising, 2nd Edition

by Arens, William; Schaefer, David; Weigold, Michael

Publisher: McGraw-Hill Higher Education

Publishing Date: 2008/05/14

eText ISBN-10

0-07-727148-3

eText ISBN-13

978-0-07-727148-0

Print ISBN-10

0-07-338097-0

Print ISBN-13

978-0-07-338097-1

Saleable Print ISBN-10

0-07-338097-0

Saleable Print ISBN-13

978-0-07-338097-1

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Essentials of Contemporary Advertising, 2nd Edition

by Arens, William; Schaefer, David; Weigold, Michael

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Part 1. An Introduction t...

Part 2. Understanding the...

Part 3. The Planning Proc...

Part 4. The Creative Proc...

Part 5. Reaching the Targ...

Part 6. Integrating Marke...

Glossary, 488

Endnotes, 511

Credits and Acknowledgmen...

Name Index, 530

Company Index, 535

Subject Index, 544

Part 1. An Introduction to Advertising, 2

Chapter one. Advertising Yesterday, Today, and Tomorrow, 2

What Is Advertising?, 4

The Role of Advertising in Business, 6

What Is Marketing?, 6

Advertising and the Marketing Process, 7

Economics: The Growing Need for Advertising, 7

Principles of Free Market Economics, 8

Functions and Effects of Advertising in a Free Economy, 8

The Evolution of Advertising as an Economic Tool, 10

The Preindustrial Age, 10

The Industrializing Age, 12

The Industrial Age, 14

The Postindustrial Age, 15

The Global Interactive Age: Looking at the Twenty-first Century, 18

Society and Ethics: The Effects of Advertising, 20

Chapter two. The Economic, Social, and Regulatory Aspects of Advertising, 24

The Many Controversies about Advertising, 26

The Economic Impact of Advertising, 27

Effect on the Value of Products, 27

Effect on Prices, 29

Effect on Competition, 29

Effect on Consumers and Businesses, 30

The Abundance Principle: The Economic Impact of Advertising in Perspective, 31

The Social Impact of Advertising, 31

Deception in Advertising, 31

The Subliminal Advertising Myth, 32

Ethical Issues Truth in Advertising: Fluffing and Puffing, 33

Advertising and Our Value System, 34

The Proliferation of Advertising, 34

Stereotypes in Advertising, 35

Offensive Advertising, 35

The Social Impact of Advertising in Perspective, 37

Social Responsibility and Advertising Ethics, 37

Advertisers' Social Responsibility, 38

Ethics of Advertising, 38

Current Regulatory Issues Affecting U.S. Advertisers, 39

Freedom of Commercial Speech, 39

Tobacco Advertising, 40

Advertising to Children, 40

Consumer Privacy, 41

Federal Regulation of Advertising in the United States, 41

The U.S. Federal Trade Commission, 42

Commercial Break 2–A: Unfair and Deceptive Practices in Advertising, 43

The Food and Drug Administration (FDA), 45

The Federal Communications Commission (FCC), 46

The Patent and Trademark Office and the Library of Congress, 47

State and Local Regulation, 48

Nongovernment Regulation, 48

The Better Business Bureau (BBB), 48

The National Advertising Review Council (NARC), 49

Regulation by the Media, 50

Regulation by Consumer Groups, 51

Self-Regulation by Advertisers and Ad Agencies, 51

Government Restraints on International Advertisers, 52

The Ethical and Legal Aspects of Advertising in Perspective, 53

Chapter three. The Business of Advertising, 56

The Advertising Industry, 58

The Organizations in Advertising, 58

The People in Advertising, 58

The Advertisers (Clients), 58

Local Advertising: Where the Action Is, 58

Regional and National Advertisers, 61

Checklist: Creating Local Advertising, 62

Commercial Break 3–A: The Co-op Marriage, 63

Transnational Advertisers, 66

Media Around the World, 68

The Advertising Agency, 69

The Role of the Advertising Agency, 70

Types of Agencies, 70

What People in an Agency Do, 73

How Agencies Are Structured, 76

How Agencies Are Compensated, 77

The In-House Agency, 78

The Client/Agency Relationship, 79

How Agencies Get Clients, 79

Ethical Issues: Ethical Issues Swirl around 2006's Biggest Ad Industry Story, 80

Factors Affecting the Client/Agency Relationship, 82

The Suppliers in Advertising, 83

Art Studios and Web Designers, 83

Printers and Related Specialists, 83

Film and Video Houses, 84

Research Companies, 84

The Media of Advertising, 84

Current Trends, 84

Part 2. Understanding the Target Audience, 90

Chapter four. Segmentation, Targeting, and the Marketing Mix, 90

The Larger Marketing Context of Advertising, 92

Commercial Break 4–A: Understanding Needs and Utility, 93

Customer Needs and Product Utility, 93

Exchanges: The Purpose of Marketing and Advertising, 94

The Market Segmentation Process, 94

Types of Markets, 95

Segmenting the Consumer Market: Finding the Right Niche, 96

Ethical Issues: Brand Niching May Cause Brand Switching, 100

Segmenting Business and Government Markets: Understanding Organizational Buying Behavior, 103

Aggregating Market Segments, 105

The Target Marketing Process, 107

Target Market Selection, 107

Commercial Break 4–B: Understanding the Product Element: Starbucks Coffee, 108

The Marketing Mix: A Strategy for Matching Products to Markets, 108

Advertising and the Product Element, 109

Product Life Cycles, 109

Product Classifications, 111

Product Positioning, 112

Product Differentiation, 112

Product Branding, 113

The Role of Branding, 114

Product Packaging, 115

Advertising and the Price Element, 115

Key Factors Influencing Price, 115

Advertising and the Distribution (Place) Element, 116

Direct Distribution, 116

Indirect Distribution, 116

Commercial Break 4–C: Starbucks and the Place Element, 117

Advertising and the Promotion (Communication) Element, 118

Commercial Break 4–D: Price and Promotion, 119

The Marketing Mix in Perspective, 120

Chapter five. Communication and Consumer Behavior, 122

Communication: What Makes Advertising Unique, 124

The Human Communication Process, 125

Applying the Communication Process to Advertising, 125

Consumer Behavior: The Key to Advertising Strategy, 127

The Importance of Knowing the Consumer, 127

The Consumer Decision Process: An Overview, 128

Personal Processes in Consumer Behavior, 129

The Consumer Perception Process, 129

Learning and Persuasion: How Consumers Process Information, 132

The Consumer Motivation Process, 136

Interpersonal Influences on Consumer Behavior, 138

Family Influence, 138

Societal Influence, 139

Ethical Issues: Is It Marketing or Is It Exploitation?, 141

Cultural and Subcultural Influence, 142

The Purchase Decision and Postpurchase Evaluation, 143

Commercial Break 5–A: Applying Consumer Behavior Principles to Ad Making, 145

Different Responses from Different Products, 146

Part 3. The Planning Process, 150

Chapter six. Account Planning and Research, 150

The Account Planner as Consumer Advocate, 152

The Need for Research in Marketing and Advertising, 153

What Is Marketing Research?, 153

What Is Advertising Research?, 154

Advertising Strategy Research, 155

Creative Concept Research, 157

Pretesting and Posttesting, 157

Steps in the Research Process, 158

Step 1: Analyzing the Situation and Defining the Problem, 159

Step 2: Conducting Informal (Exploratory) Research, 159

Step 3: Establishing Research Objectives, 161

Step 4: Conducting Formal Research, 161

Checklist: Methods for Pretesting Ads, 166

Checklist: Methods for Posttesting Ads, 167

Step 5: Interpreting and Reporting the Findings, 167

Important Issues in Advertising Research, 168

Considerations in Conducting Formal Quantitative Research, 168

Checklist: Developing an Effective Questionnaire, 171

Collecting Primary Data in International Markets, 171

Chapter seven. Developing Marketing and Advertising Plans, 176

The Marketing Plan, 179

The Importance of Marketing Planning, 179

The Effect of the Marketing Plan on Advertising, 179

Top-Down Marketing, 179

Commercial Break 7–A: The Strategies of Marketing Warfare, 182

Bottom-Up Marketing: How Small Companies Plan, 184

The New Marketing Mantra: Relationship Marketing, 185

The Importance of Relationships, 185

Ethical Issues: A War of Comparisons, 186

Levels of Relationships, 187

Using IMC to Make Relationships Work, 188

IMC: The Concept and the Process, 188

The Dimensions of IMC, 191

The IMC Approach to Marketing and Advertising Planning, 191

The Importance of IMC to the Study of Advertising, 192

The Advertising Plan, 192

Reviewing the Marketing Plan, 192

Setting Advertising Objectives, 193

Determining the Advertising Strategy, 196

Allocating Funds for Advertising, 196

Commercial Break 7–B: The Economic Effect of Advertising on Sales, 197

Checklist: Ways to Set Advertising Budgets, 198

Methods of Allocating Funds, 198

Part 4. The Creative Process, 204

Chapter eight. Creative Strategy and the Creative Process, 204

The Creative Team: The Authors and Encoders of Advertising, 207

What Makes Great Advertising?, 207

The Resonance Dimension, 208

The Relevance Dimension, 209

Formulating Creative Strategy: The Key to Great Advertising, 209

Writing the Creative Strategy, 210

Elements of Message Strategy, 212

How Creativity Enhances Advertising, 212

What Is Creativity?, 213

The Role of Creativity in Advertising, 213

Commercial Break 8–A: The Psychological Impact of Color, 214

Understanding Creative Thinking, 215

The Creative Process, 217

The Explorer Role: Gathering Information, 217

Develop an Insight Outlook, 218

Know the Objective, 218

Brainstorm, 218

The Artist Role: Developing and Implementing the Big Idea, 218

Task 1: Develop the Big Idea, 219

Task 2: Implement the Big Idea, 221

The Creative Pyramid: A Guide to Formulating Copy and Art, 222

Ethical Issues: Does Sex Appeal?, 224

The Judge Role: Decision Time, 226

The Warrior Role: Overcoming Setbacks and Obstacles, 227

Commercial Break 8–B: Applying the Creative Pyramid to Advertising, 227

Chapter nine. Creative Execution: Art and Copy, 232

Delivering on the Big Idea: The Visual and the Verbal, 234

The Art of Creating Print Advertising, 234

Designing the Print Ad, 235

The Use of Layouts, 235

Advertising Design and Production: The Creative and Approval Process, 235

Commercial Break 9–A: The Role of the Advertising Artist, 236

Effect of Computers on Graphic Design, 238

Principles of Design: Which Design Formats Work Best, 238

Commercial Break 9–B: The Art Director's Guide to Layout Styles, 239

The Use of Visuals in Print Advertising, 242

Copywriting and Formats for Print Advertising, 244

Headlines, 244

Ethical Issues: Imitation, Plagiarism, or Flattery?, 245

Subheads, 247

Checklist: Writing Effective Copy, 248

Body Copy, 248

Slogans, 250

Seals, Logos, and Signatures, 250

Checklist: Creating Effective Radio Commercials, 251

Copywriting for Electronic Media, 251

Writing Radio Copy, 251

Writing Television Copy, 252

Checklist: Creating Effective TV Commercials, 253

The Role of Art in Radio and TV Advertising, 253

Developing the Artistic Concept for Commercials, 254

Formats for Radio and TV Commercials, 254

Basic Mechanics of Storyboard Development, 257

Writing for the Web, 258

Checklist: Creating Effective Web Ads, 260

Creating Ads for International Markets, 260

Translating Copy, 261

Art Direction for International Markets, 262

Legal Restraints on International Advertisers, 263

Chapter ten. Producing Ads for Print, Electronic, and Digital Media, 266

Managing the Advertising Production Process, 268

The Role of the Production Manager or Producer, 268

Managing Production Costs, 269

The Print Production Process, 271

The Preproduction Phase: Planning the Project, 271

The Production Phase: Creating the Artwork, 273

Commercial Break 10–A: The Characteristics of Type, 274

The Prepress Phase: Stripping, Negs, and Plates, 276

The Duplication and Distribution Phase: Printing, Binding, and Shipping, 277

Quality Control in Print Production, 278

Production Phase Quality Issues, 279

Prepress Quality Issues, 279

The Radio Commercial Production Process, 280

Preproduction, 280

Production: Cutting the Spot, 281

Postproduction: Finishing the Spot, 282

The Television Commercial Production Process, 282

The Role of the Commercial Producer, 283

The Preproduction Phase, 283

Production: The Shoot, 285

Postproduction, 287

Producing Advertising for Digital Media, 288

The Emergence of Digital Media, 288

The Role of Digital Media in Advertising, 289

The People Who Produce Digital Media Advertising, 290

The Production Process, 290

Part 5. Reaching the Target Audience, 294

Chapter eleven. Print Advertising, 294

Selecting Media, 296

Print Media, 297

Using Magazines in the Media Mix, 297

The Pros and Cons of Magazine Advertising, 297

Special Possibilities with Magazines, 298

Checklist: The Pros and Cons of Magazine Advertising, 300

Commercial Break 11–A: Magazines and the Media Mix, 301

How Magazines Are Categorized, 301

Commercial Break 11–B: Innovations in Magazine Advertising, 302

Buying Magazine Space, 304

Understanding Magazine Circulation, 304

Reading Rate Cards, 306

Using Newspapers in the Media Mix, 308

Who Uses Newspapers?, 308

The Pros and Cons of Newspaper Advertising, 309

How Newspapers Are Categorized, 309

Checklist: The Pros and Cons of Newspaper Advertising, 310

Commercial Break 11–C: Newspapers and the Media Mix, 311

Types of Newspaper Advertising, 312

How Advertisers Buy Newspaper Space, 313

Understanding Readership and Circulation, 313

Ethical Issues: What's at Stake with Sweepstakes?, 316

Insertion Orders and Tearsheets, 317

Checklist: What Works Best in Print, 318

Print Media and New Technologies, 318

Directories and Yellow Pages, 319

Chapter twelve. Electronic Media: Television and Radio, 324

The Medium of Television, 326

Broadcast TV, 326

Cable TV, 327

TV Audience Trends, 327

Checklist: The Pros and Cons of Broadcast TV Advertising, 329

Impact of Technology, 330

The Use of Television in IMC, 331

Checklist: The Pros and Cons of Cable TV Advertising, 332

Types of TV Advertising, 332

Video Alternatives to TV Commercials, 335

TV Audience Measurement, 338

Rating Services, 338

Cable Ratings, 338

Ethical Issues: Advertising to Children: Child's Play?, 339

Defining Television Markets, 339

Commercial Break 12–A: Where Do Those Infamous TV Ratings Come From?, 340

Dayparts, 340

Audience Measurements, 341

Gross Rating Points, 342

Buying Television Time, 343

Selecting Programs for Buys, 343

Negotiating Prices, 343

The Medium of Radio, 344

Who Uses Radio?, 344

The Use of Radio in IMC, 345

Radio Programming and Audiences, 345

Satellite Radio and Portable Music Devices, 346

Buying Radio Time, 347

Types of Radio Advertising, 347

Checklist: The Pros and Cons of Radio Advertising, 348

Radio Terminology, 348

Chapter thirteen. Digital Interactive Media, 354

Digital Interactive Media, 356

The Internet as a Medium, 357

A Brief History of the Internet and the World Wide Web, 360

Web Portals, 360

Google and Internet Search, 361

The Internet Audience, 363

Types of Internet Advertising, 366

Problems with the Internet as an Advertising Medium, 369

Using the Internet in IMC, 369

Checklist: The Pros and Cons of Internet Advertising, 370

Measuring the Internet Audience, 371

Seeking Standardization, 371

Commercial Break 13–A: Internet Ratings: The Next Frontier, 372

The Promise of Enhanced Tracking, 373

Buying Time and Space on the Internet, 373

Pricing Methods, 374

The Cost of Targeting, 375

Ethical Issues: Profiling: Would You Take Cookies from a Stranger?, 376

Stretching Out the Dollars, 377

Other Interactive Media, 377

Kiosks, 377

Interactive TV, 378

Cell Phone Advertising, 379

Chapter fourteen. Out-of-Home, Direct-Mail, and Specialty Advertising, 382

Out-of-Home Media, 384

Outdoor Advertising, 384

Standardization of the Outdoor Advertising Business, 385

Checklist: The Pros and Cons of Outdoor Advertising, 386

Types of Outdoor Advertising, 386

Commercial Break 14–A: How to Use Type and Color in Outdoor Advertising, 387

Buying Outdoor Advertising, 389

Regulation of Outdoor Advertising, 390

Ethical Issues: Does Spillover Need Mopping Up?, 391

Checklist: The Pros and Cons of Transit Advertising, 392

Transit Advertising, 392

Types of Transit Advertising, 393

Buying Transit Advertising, 394

Other Out-of-Home Media, 395

Mobile Billboards, 395

Electronic Signs and Display Panels, 395

Parking Meters, Public Phones, and More, 396

Direct-Mail Advertising: The Addressable Medium, 396

Growth of Direct Mail, 396

Types of Direct-Mail Advertising, 397

Using Direct Mail in the Media Mix, 398

Components of Direct-Mail Advertising, 398

Checklist: The Pros and Cons of Direct-Mail Advertising, 399

Commercial Break 14–B: Developing Effective Direct- Mail Packages, 400

Specialty Advertising, 402

Part 6. Integrating Marketing Communications Elements, 406

Chapter fifteen. Media Planning and Buying, 406

Media Planning: Integrating Science with Creativity in Advertising, 408

The Challenge, 409

The Role of Media in the Marketing Framework, 412

Ethical Issues: Closed-Circuit Programming, 413

The Media Planning Framework, 415

Defining Media Objectives, 415

Audience Objectives, 415

Message-Distribution Objectives, 416

Optimizing Reach, Frequency, and Continuity: The Art of Media Planning, 419

Developing a Media Strategy: The Media Mix, 420

Factors in the Media Strategy: The Five Ms, 420

Factors That Influence Media Strategy Decisions, 421

Stating the Media Strategy, 426

Media Tactics: Selecting and Scheduling Media Vehicles, 426

Commercial Break 15–A: Media Selection: Quick List of Advantages, 427

Criteria for Selecting Individual Media Vehicles, 427

The Synergy of Mixed Media, 430

Methods for Scheduling Media, 430

Computers in Media Selection and Scheduling, 431

The Role of the Media Buyer, 432

Chapter sixteen. IMC: Direct Marketing, Personal Selling, and Sales Promotion, 436

The Importance of Relationship Marketing and IMC, 438

Understanding Direct Marketing, 439

The Role of Direct Marketing in IMC, 440

The Evolution of Direct Marketing, 441

The Impact of Databases on Direct Marketing, 442

The Importance of Direct Marketing to IMC, 442

Drawbacks to Direct Marketing, 443

Types of Direct Marketing Activities, 444

Direct Sales, 444

Direct-Response Advertising, 445

Personal Selling: The Human Medium, 447

Types of Personal Selling, 448

Advantages of Personal Selling, 448

Drawbacks of Personal Selling, 449

The Role of Personal Selling in IMC, 449

Gathering Information, 449

Providing Information, 450

Fulfilling Orders, 450

Building Relationships, 450

Trade Shows, 451

The Role of Sales Promotion in IMC, 452

The Positive Effect of Sales Promotion on Brand Volume, 453

Checklist: Creating Effective Sales Promotions, 454

The Negative Effect of Sales Promotion on Brand Value, 454

Sales Promotion Strategies and Tactics, 455

Giving Brands a Push with Trade Promotions, 455

Using Consumer Promotions to Pull Brands Through, 458

Commercial Break 16–A: Applying Push/Pull Strategies to Sales Promotion, 459

Chapter seventeen. IMC: Public Relations, Sponsorship, and Corporate Advertising, 466

The Role of Public Relations, 468

The Difference between Advertising and Public Relations, 469

Advertising and PR in the Eyes of Practitioners, 470

The Public Relations Job, 470

PR Planning and Research, 470

Reputation Management, 471

Other Public Relations Activities, 473

Public Relations Tools, 474

Checklist: How to Write a News Release, 476

Sponsorships and Events, 477

The Growth of Sponsorship, 477

Benefits of Sponsorship, 478

Drawbacks of Sponsorship, 479

Types of Sponsorship, 479

Checklist: How to Select Events for Sponsorship, 482

Methods of Sponsorship, 482

Measuring Sponsorship Results, 483

Corporate Advertising, 483

Public Relations Advertising, 483

Corporate/Institutional Advertising, 484

Commercial Break 17–A: David Ogilvy on Corporate Advertising, 485

Corporate Identity Advertising, 485

Recruitment Advertising, 486

Glossary, 488

Endnotes, 511

Credits and Acknowledgments, 524

Name Index, 530

Company Index, 535

Subject Index, 544

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