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The Evolution ofPromoting and Advertising Brands
Chapter 3 with Duane Weaver
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Outline
Rise of Capitalism Manufacturers pursuit of power
Evolution of Advertising in the USA
The 00s: More Hip Ads and MoreTechnology (2001 present)
DISCUSSION seminar questions
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Rise of Capitalism
Industrial Revolution basic force behind the rapid increase in mass-
production goods that required stimulation ofdemand
principle of limited liability gained acceptance and resulted in large
amounts of capital to fund the IndustrialRevolution
What was the impact on advertising as aresult of the Industrial Revolution?
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Manufacturers pursuit of power
Manufacturers attempt to gain power overthe distribution channel by building branddemand.
Takes consumers focus away from Retailerand Wholesaler
Mass Media telegraph enabled rapid
communication, spawned global interestand fostered a sense of community
this free communication is supported by advertising.
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Evolution of Advertising in the USA (1 of 2)
Pre-1800
Print media (news books, newsletters, then gazettes) 1800-1875
Circulation of dailies (newspapers) 1M/day Circulation increased by railroad expansion
1875-1918 Consumer culture breeds advertising as urbanization takes hold
(self-reliance no longer plausible) The 1920s
roaring twenties advertising was the work of the young, smartand sophisticated
High standard of living after WW1 and plague A product for a cure for almost everything
Ads became more visual than past 1929-1941 Depression
Advertising seen as villainous as millions starve
Bye-bye pretty, hello ugly harsh-reality, attention-grabbing ads Radio takes hold as medium
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Evolution of Advertising in the USA (2 of 2)
1941-1960 (WWII + the 50s)
Start of the babyboomer generation and women join theworkforce
Fear of motivation advertising research and subliminal ads
1960-1972 (Peace, Love and Creative Revolution) Advertising slow to keep pace with the cultural revolution
creative directors gain more control of copy and ads
1973-1980 Slowing economyads go back to hard sell
Regulators: ACT, FTC, NARB
1980-1992
Designer era with disposable income double parents after WWII
Greed was good, more stuff was good
1993-2000 Prediction of Interactive media enabling audit of more
accountable advertising
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The 00s:More Hip Ads andMore Technology (2001 present)
Ads seen as adsself-aware
Dot.bomb websites totally dependent ononline ads for revenue (However, stock value was inpotential ad revenue not real product revenue)
E-business selling real product online
Increase in web advertising Why now?? What has changed?
Branded Entertainment (and productplacement)
Why does this work??
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Discussion Questions:
1. Why is advertising an essentialfeature of capitalistic economic
systems?
2. What forces do you think will
continue to affect the evolution of
advertising?
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Social, Ethical and Regulatory AspectsOf Advertising
Chapter 4 with Duane Weaver
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OUTLINE
Social Aspects Ethical Aspects
Regulatory Aspects
Industry Self-Regulation Discussion
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Social Aspects
Get together in your teams and discussthe following. Be prepared to provide
a a brief summary of your discussion tothe class.
What are the positive impacts to
society? Why?
What are the negative impacts to
society? Why?
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Ethical Aspects
ETHICS = moral standards andprinciples against which behavoior is
judged.
Truth and deception (what issues?)
Advertising to children (is it okay?)
Is it okay to advertise alcohol, tobacco,gambling, prostitution, etc?
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Regulatory Aspects
Areas: Deception and Unfairness
How do you regulate? Can you?
Competition
Cooperative, comparative, monopoly
Advertising to children
Industry and consumer groups vs. regulatorslike FTC (USA), CRTC (Canada)
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Industry Self-Regulation
E.g.: NARB (National AdvertisingReview Board) affiliated with BBB
(BetterBusiness Bureau).
Internet
Consumers
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Discussion
1. Should Advertising be regulated?2. Can it be effectively managed and
who should be responsible for the
social and ethical management ofadvertising?
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