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| Self-Regulation |
-when an industry polices itself
*(NARC) National Advertising Review Council - (NAD) National Ad Division – regulates ads – reviews complaints from w/in the industry |
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johnwp06 Sun, 18 Apr 2010 23:43:54 GMT |
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| 3 Part Test to Determine Deceptive Ad |
1) omission, representation or practice likely to mislead consumer
2) evaluated from perspective of reasonable consumer
3) omission/practice is material – affects consumer choice |
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johnwp06 Sun, 18 Apr 2010 23:43:54 GMT |
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| FTC |
-Federal commision that prevents unfair competition and monitors/stops deceptive ads |
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johnwp06 Sun, 18 Apr 2010 23:43:54 GMT |
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| Requirements for Central Hudson Test |
*Is ad misleading?
*Is there government interest in regulating the speech?
*Does regulation advance government interest?
*Is the regulation no more extensive than necessary? |
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johnwp06 Sun, 18 Apr 2010 23:40:18 GMT |
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| 5 First Amendment Freedoms |
•Freedom of religion
•Speech
•Press
•Assembly
•Petition |
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johnwp06 Sun, 18 Apr 2010 23:40:18 GMT |
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| Standards and Practices Department |
-department of TV networks; determine which commercials can and cannot air on network television. |
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johnwp06 Sun, 18 Apr 2010 23:40:18 GMT |
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| Chinese Wall |
-describes the separation between editorial and advertising functions at a media outlet – helps avoid conflicts of interests
•Used to describe the relationship between the content function and the advertising function of mass media
*Editorial side of the Chinese Wall is strengthening, putting pressure on the advertising side – most often in financial ways. |
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johnwp06 Sun, 18 Apr 2010 23:40:18 GMT |
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| 3 Roles of Advertising in Society |
1) Economic Role - advertising drives economy by driving the selling process
2) Information Role - presents info to help consumers make decisions on product purchasing
3) Entertainment Role - consumers entertained by commercials |
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johnwp06 Sun, 18 Apr 2010 22:31:28 GMT |
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| Advertise Def. |
•Simplest form; means: to give notice, to inform, to notify, or to make known |
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johnwp06 Sun, 18 Apr 2010 22:23:48 GMT |
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| 2 Techniques Media Companies Use to Construct Audiences |
-1- Orient towards a Quantity Goal - large audience
-2- Orient towards a Niche Goal - particular, specific target audience |
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johnwp06 Sun, 18 Apr 2010 22:21:53 GMT |
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| Principle of Relative Constancy |
* The consumer’s proportion of economic support for the mass media is approximately constant to the general economy. |
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johnwp06 Sun, 18 Apr 2010 22:21:53 GMT |
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| Advertising Literacy |
-knowing enough about advertising and your own needs as to notice more advertising in your environment and be more in control of how it influences you. |
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johnwp06 Sun, 18 Apr 2010 22:18:44 GMT |
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| Unconscious Advertising |
-we do perceive the message but don’t think about it; the message gets into our subconscious w/out us knowing it. |
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johnwp06 Sun, 18 Apr 2010 22:18:44 GMT |
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| juxtaposition |
-an example of puffery
-a person smiling next to the product, giving a person good feelings about it. |
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johnwp06 Sun, 18 Apr 2010 23:59:02 GMT |
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| Unthinking Support |
-idea that most of us do not realize how much advertising exposure we experience everyday and how it shapes our attitudes and behaviors; we accept the saturation and allow our behavior to be shaped by it.
*How much money we spend on advertised products when we have a choice of buying brands that are unadvertised and are much cheaper.
*Ex) Paying for Cheerios vs. store brand – 80% of consumers spend the extra money on Cheerios.
*ex) When people voluntarily participate as advertisers with clothing logos. |
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johnwp06 Sun, 18 Apr 2010 23:53:53 GMT |
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| Ratio of Ad time to Program time on Broadcast TV |
-17 min of ads per hour
-40 ads per hour |
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johnwp06 Sun, 18 Apr 2010 22:15:08 GMT |
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| Omission |
-Product/Ad leaves out important information
*ex) Wonder Bread
*ex) Nissan promising $100 to everyone who test drives a car. |
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johnwp06 Sun, 18 Apr 2010 22:15:08 GMT |
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| Implied Claim |
-ad/product makes an indirect/suggestive claim
-ex) Propecia implied that it stopped hairloss when it only slowed it. |
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johnwp06 Sun, 18 Apr 2010 22:15:08 GMT |
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| Express Claim |
-ad/product makes a specific claim that is deceptive
-ex) Listerine helps prevent colds and relieve cold sores |
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johnwp06 Sun, 18 Apr 2010 22:15:08 GMT |
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| Deception Definition |
•An ad is deceptive if it contains a statement or an omission that: is likely to mislead a reasonable consumer AND is material |
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johnwp06 Sun, 18 Apr 2010 21:54:28 GMT |
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| Central Hudson Test |
-test for whether or not an ad is deceptive and should be restricted
*ex) Splenda saying product "made from sugar, tastes like sugar" |
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johnwp06 Sun, 18 Apr 2010 21:54:28 GMT |
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| First Amendment (5 Freedoms) |
-speech
-religion
-press
-assembly
-petition |
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johnwp06 Sun, 18 Apr 2010 23:50:29 GMT |
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| "Sweeps" Periods |
-when the shows pump it up like with celeb stars, no re-runs
tend to increase sample, focuses on individual markets
Determines ad rates for the upcoming months |
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johnwp06 Sun, 18 Apr 2010 21:54:28 GMT |
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| CPMS |
-determines how much advertiser pay media companies
-cost per thousand people reached |
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johnwp06 Sun, 18 Apr 2010 23:47:33 GMT |
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| Niche Audience |
-small audience, specifically targeted by media/advertisers |
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johnwp06 Sun, 18 Apr 2010 21:35:54 GMT |
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| Media Companies |
o Give: money (put money out to start), media content, audiences
o Receive: Profit
o Primary Customers: ADVERTISERS!
Money comes from advertisers not the views
Want to deliver “eyeballs” to the advertisers
Need viewers to watch the shows so they can charge the advertisers more
Create content to deliver the right audience |
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johnwp06 Sun, 18 Apr 2010 21:35:54 GMT |
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| Advertisers |
-companies that make products/advertise through the media
o Give: Money
o Receive: Media time/space to reach target
o Seek: Lowest cost/ relevant audience members
Relevant what audience members who will buy/ potentially buy the product
Audience structure becomes extremely important
o Advertisers money funding this operation they pay the media employees |
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johnwp06 Sun, 18 Apr 2010 21:35:54 GMT |
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| Media Employees |
o Bring: talent/skill
Compensated for their talent/skills
Write a TV show that draws a large audience
Create what the consumers want
o Give: Income
o Type – creative, technical, administrative |
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johnwp06 Sun, 18 Apr 2010 21:33:02 GMT |
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| Consumers |
o Give: time and money
o Receive: entertainment and information
o Aggregate power: high – all of us (players) – the most powerful group!
o Individual power: low – little or if any power, no control over what is on
o Not in it to make a living, in it for entertainment, pleasure, information |
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johnwp06 Sun, 18 Apr 2010 21:33:02 GMT |
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| 4 Players of Media Industry |
-1- Consumers
-2- Advertisers
-3- Media Companies
-4- Media Employees |
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johnwp06 Sun, 18 Apr 2010 21:33:02 GMT |
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| Advertorial |
-blending of advertising and editorial |
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johnwp06 Sun, 18 Apr 2010 21:33:02 GMT |
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| Market Power Model |
Which model applies?
National Advertising
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johnwp06 Sun, 18 Apr 2010 23:48:53 GMT |
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| Market Info Model |
Which model applies?
Retail Advertising |
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johnwp06 Sun, 18 Apr 2010 23:51:56 GMT |
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| Market Info Model |
-advertising provides info
-lower prices
-reduced market power
-more competition
*non-convenience products - cars, computers, etc. |
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johnwp06 Sun, 18 Apr 2010 21:30:01 GMT |
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| Market Power Model |
-brand loyalty
-higher prices
-less competition
*convenience products - inexpensive, non-durable goods |
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johnwp06 Sun, 18 Apr 2010 21:30:01 GMT |
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| Economies of Scale |
-The more you make of a product, the cheaper it gets per item |
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johnwp06 Sun, 18 Apr 2010 21:21:24 GMT |
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| Research Era |
- new industry devoloped to research the most effective way to reach consumers and sell the info to advertisers |
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johnwp06 Sun, 18 Apr 2010 21:21:24 GMT |
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| Creative Revolution |
-tone of advertising changes
-1960's
-focus now on humor, story telling, image |
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johnwp06 Sun, 18 Apr 2010 21:21:24 GMT |
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| Single-sponsorship Model |
-one advertiser sponsors an entire show/channel
-scandals w/ game shows |
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johnwp06 Sun, 18 Apr 2010 21:21:24 GMT |
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| Quaker Oats |
-1st company to register a TM
-convinced consumers their product was superior/develop brand loyalty |
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johnwp06 Sun, 18 Apr 2010 21:13:39 GMT |
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| Industrial Revolution |
-population doubled
*more jobs because of factories
-urban society
-mass production
-mass communication |
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johnwp06 Sun, 18 Apr 2010 21:13:38 GMT |
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| Subliminal Advertising |
-any stimulus below our threshold to perceive it
-Doesn't work. |
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johnwp06 Sun, 18 Apr 2010 21:13:38 GMT |
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| 6 Criticisms of Advertising |
-makes people materialistic
-deceptive
-manipulative
-invades privacy
-poor source of information
-perpetuates stereotypes |
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johnwp06 Sun, 18 Apr 2010 23:45:40 GMT |
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| Puffery Def. |
-Statements of opinion in ads
-ex) "the best of its kind"
"the most beautiful"
"the finest" |
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johnwp06 Sun, 18 Apr 2010 21:06:13 GMT |
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| Brand Identity |
-the psychological stuff that you associate with the brand/product |
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johnwp06 Sun, 18 Apr 2010 21:06:13 GMT |
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| Immunization |
-company trying to protect consumers from a competitor
-guard against opinion conversion; know how to protect yourself against a counter attack |
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johnwp06 Sun, 18 Apr 2010 21:06:13 GMT |
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| Canalization Definition |
- trying to maintain status quo, market to loyal customers |
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johnwp06 Sun, 18 Apr 2010 21:06:13 GMT |
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| Opinion Creation |
-the most important aspect of advertising NEW products |
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johnwp06 Sun, 18 Apr 2010 21:00:10 GMT |
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| 4 Goals of Advertising |
1) Awareness
2) Influence
3) Product Differentiation
4) Branding |
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johnwp06 Sun, 18 Apr 2010 21:00:10 GMT |
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| Product Placement |
-Any paid placement of a product or brand to be in the show |
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johnwp06 Sun, 18 Apr 2010 21:00:10 GMT |
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| Ad Creep |
-ads creeping into new locations
-doctor’s office, public schools, above urinals |
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johnwp06 Sun, 18 Apr 2010 21:00:10 GMT |
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| Ambient Advertising Definition |
-advertising in regular environment
-ex) ad on shopping cart, cars, floors. |
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johnwp06 Sun, 18 Apr 2010 20:56:57 GMT |
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| Personal Selling |
-personal communication that is not delivered through a mass mediated channel |
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johnwp06 Sun, 18 Apr 2010 22:24:29 GMT |
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| Public Relations Definition |
-does not exchange money; generate media coverage by doing something interesting |
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johnwp06 Sun, 18 Apr 2010 20:56:57 GMT |
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| Advertising Definition |
-paid for by a sponsor
-persuasive angle |
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johnwp06 Sun, 18 Apr 2010 20:56:57 GMT |
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