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Macroeconomics (from Greek: μακρύ-ς /ma΄kri-s/ long, large and οικονομία /ikono΄mia/ economy) is a
branch of economics that deals with the performance, structure, and behavior of a national or regional
economy as a whole.[1] Along with microeconomics, macroeconomics is one of the two most general
fields in economics. It is the study of the behavior and decision-making of entire economies.[2]
Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to
understand how the whole economy functions. Macroeconomists develop models that explain the
relationship between such factors as national income, output, consumption, unemployment, inflation,
savings, investment, international trade and international finance. In contrast, microeconomics is
primarily focused on the actions of individual agents, such as firms and consumers, and how their
behavior determines prices and quantities in specific markets.
While macroeconomics is a broad field of study, there are two areas of research that are emblematic of
the discipline: the attempt to understand the causes and consequences of short-run fluctuations in
national income (the business cycle), and the attempt to understand the determinants of long-run
economic growth (increases in national income).
Macroeconomic models and their forecasts are used by both governments and large corporations to
assist in the development and evaluation of economic policy and business strategy.

Contents
[hide]
• 1 Development of macroeconomic theory
○ 1.1 Classical economics and the quantity theory of
money
○ 1.2 Keynesianism
○ 1.3 After Keynes
• 2 Macroeconomic schools of thought
○ 2.1 Keynesian tradition
○ 2.2 Neoclassical tradition
• 3 Macroeconomic policies
• 4 See also
• 5 Notes
• 6 References

[edit] Development of macroeconomic theory

The first published use of the term "macroeconomics" was by the Norwegian Economist Ragnar Frisch
in 1933[3], although a similar expression occurred already in the work of Eugen Bohm-Bawerk[citation
needed]
, and there was a long existing effort to understand many of the broad elements of the field.
[edit] Classical economics and the quantity theory of money
Main article: quantity theory of money

Until the early twentieth century, the quantity theory of money dominated as the favored
macroeconomic model among classical economists.[4] This theory gives the equation of exchange:

The equation states that the 'money supply' times the velocity of money (how quickly cash is passed
from one person to another through a series of transactions) is equivalent to nominal output (price level
times quantity of goods and services produced). Classical economists, such as Irving Fisher assumed
that real income and the velocity of money would be static in the short-run, so, based on this theory, a
change in price level could only be brought about by a change in money supply.[5] This equation is the
central foundation for the economic school of thought known as monetarism. The classical quantity
theory of money assumed that the demand for money was static and independent of other factors such
as interest rates. Economists questioned the classical quantity theory of money during the Great
Depression when the demand for money, and thus the velocity of money, fell sharply.[6]
[edit] Keynesianism

Until the 1930s, most economic analysis did not separate out individual behavior from aggregate
behavior[citation needed]. With the Great Depression of the 1930s and the development of the concept of
national income and product statistics, the field of macroeconomics began to expand[citation needed]. Before
that time, comprehensive national accounts, as we know them today, did not exist. The ideas of the
British economist John Maynard Keynes, who worked on explaining the Great Depression, were
particularly influential.
[edit] After Keynes

One of the challenges of economics has been a struggle to reconcile macroeconomic and
microeconomic models. Starting in the 1950s, macroeconomists developed micro-based models of
macroeconomic behavior, such as the consumption function. Dutch economist Jan Tinbergen developed
the first national macroeconomic model, which he first built for the Netherlands and later applied to the
United States and the United Kingdom after World War II. The first global macroeconomic model,
Wharton Econometric Forecasting Associates LINK project, was initiated by Lawrence Klein and was
mentioned in his citation for the Nobel Memorial Prize in Economics in 1980.
Taking their cue from Friedrich Hayek[citation needed], theorists such as Robert Lucas, Jr. suggested (in the
1970s) that at least some traditional Keynesian (after John Maynard Keynes) macroeconomic models
were questionable as they were not derived from assumptions about individual behavior, but instead
based on observed past correlations between macroeconomic variables. However, New Keynesian
macroeconomics has generally presented microeconomic models to shore up their macroeconomic
theorizing, and some Keynesians have contested the idea that microeconomic foundations are essential,
if the model is analytically useful. An analogy is the acceptance of continuous methods (e.g.
hydrodynamics or elasticity theory) in physics despite our knowledge of subatomic particles.
The various schools of thought are not always in direct competition with one another, even though they
sometimes reach differing conclusions. Macroeconomics is an ever evolving area of research. The goal
of economic research is not to be "right," but rather to be useful (Friedman, M. 1953). An economic
model, according to Friedman, should accurately reproduce observations beyond the data used to
calibrate or fit the model.

[edit] Macroeconomic schools of thought

The traditional distinction is between two different approaches to economics: Keynesian economics,
focusing on demand; and neoclassical economics based on rational expectations and efficient markets.
Keynesian thinkers challenge the ability of markets to be completely efficient generally arguing that
prices and wages do not adjust well to economic shocks. Neither view is typically endorsed to the
complete exclusion of the other, but most schools do emphasize one or the other approach as a
theoretical foundation.
[edit] Keynesian tradition

Keynesian economics was an academic theory heavily influenced by the economist Keynes. This period
focused on aggregate demand to explain levels of unemployment and the business cycle. That is,
business cycle fluctuations should be reduced through fiscal policy (the government spends more or less
depending on the situation) and monetary policy. Early Keynesian macroeconomics was "activist,"
calling for regular use of policy to stabilize the capitalist economy, while some Keynesians called for
the use of incomes policies.
Neo-Keynesians combined Keynes thought with some neoclassical elements in the neoclassical
synthesis. Neo-Keynesianism waned and was replaced by a new generation of models that made up
New Keynesian economics, which developed partly in response to new classical economics. New
Keynesianism strives to provide microeconomic foundations to Keynesian economics by showing how
imperfect markets can justify demand management.
Post-Keynesian economics represents a dissent from mainstream Keynesian economics, emphasizing
the importance of demand in the long run as well as the short, and the role of uncertainty, liquidity
preference and the historical process in macroeconomics.
[edit] Neoclassical tradition

For decades Keynesians and classical economists split in to autonomous areas, the former studying
macroeconomics and the latter studying microeconomics. In the 1970s New Classical Macroeconomics
challenged Keynesians to ground their macroeconomic theory in microeconomics. The main policy
difference in this second stage of macroeconomics is an increased focus on monetary policy, such as
interest rates and money supply. This school emerged during the 1970s with the Lucas critique. New
Classical Macroeconomics based on rational expectations, which means that choices are made optimally
considering time and uncertainty, and all markets are clearing. New Classical Macroeconomics is
generally based on real business cycle models.
Monetarism, led by Milton Friedman, holds that inflation is always and everywhere a monetary
phenomenon. It rejects fiscal policy because it leads to "crowding out" of the private sector. Further, it
does not wish to combat inflation or deflation by means of active demand management as in Keynesian
economics, but by means of monetary policy rules, such as keeping the rate of growth of the money
supply constant over time.

[edit] Macroeconomic policies

In order to try to avoid major economic shocks, such as The Great Depression, governments make
adjustments through policy changes which they hope will succeed in stabilizing the economy.
Governments believe that the success of these adjustments is necessary to maintain stability and
continue growth. This economic management is achieved through two types of strategies:
• Fiscal policy
• Monetary policy
Advertising
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Wikipedia:Advertisements.

Marketing

Key concepts

Product / Pricing / Promotion

Distribution / Service / Retail
Brand management
Account-based marketing
Marketing effectiveness
Market research
Marketing strategy
Marketing management
Market dominance

Promotional content

Advertising / Branding
 Direct marketing / Personal Sales
Product placement / Public relations
Publicity / Sales promotion
Sex in advertising / Underwriting

Promotional media

Printing / Publication / Broadcasting

Out-of-home / Internet marketing
Point of sale / Novelty items
Digital marketing / In-game
Word of mouth
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A Coca-Cola advert from the 1890s.

Advertisement in a rail station in Berlin.

Advertising is a form of communication that typically attempts to persuade potential customers to

purchase or to consume more of a particular brand of product or service. “While now central to the
contemporary global economy and the reproduction of global production networks, it is only quite
recently that advertising has been more than a marginal influence on patterns of sales and production.
The formation of modern advertising was intimately bound up with the emergence of new forms of
monopoly capitalism around the end of the 19th and beginning of the 20th century as one element in
corporate strategies to create, organize and where possible control markets, especially for mass
produced consumer goods. Mass production necessitated mass consumption, and this in turn required a
certain homogenization of consumer tastes for final products. At its limit, this involved seeking to create
‘world cultural convergence’, to homogenize consumer tastes and engineer a ‘convergence of lifestyle,
culture and behaviours among consumer segments across the world’.” [1]
Many advertisements are designed to generate increased consumption of those products and services
through the creation and reinvention of the "brand image" . For these purposes, advertisements
sometimes embed their persuasive message with factual information. Every major medium is used to
deliver these messages, including television, radio, cinema, magazines, newspapers, video games, the
Internet, carrier bags and billboards. Advertising is often placed by an advertising agency on behalf of a
company or other organization.[citation needed]
Organizations that frequently spend large sums of money on advertising that sells what is not, strictly
speaking, a product or service include political parties, interest groups, religious organizations, and
military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free
modes of persuasion, such as public service announcements.[citation needed]
Money spent on advertising has increased dramatically in recent years. In 2007, spending on advertising
has been estimated at over $150 billion in the United States[2] and $385 billion worldwide,[3] and the
latter to exceed $450 billion by 2010.
While advertising can be seen as necessary for economic growth, it is not without social costs.
Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a
major nuisance to users of these services, as well as being a financial burden on internet service
providers.[4] Advertising is increasingly invading public spaces, such as schools, which some critics
argue is a form of child exploitation.[5]

Contents
[hide]
• 1 History
○ 1.1 Mobile billboard advertising
○ 1.2 Public service advertising
• 2 Types of advertising
○ 2.1 Media
 2.1.1 Covert advertising
 2.1.2 Television commercials
 2.1.3 Infomercials
 2.1.4 Celebrities
 2.1.5 Media and advertising approaches
• 3 Criticism of advertising
○ 3.1 Hyper-commercialism and the commercial tidal wave
○ 3.2 Advertising and constitutional rights
○ 3.3 The price of attention and hidden costs
 ○ 3.4 Influencing and conditioning
○ 3.5 Dependency of the media and corporate censorship
○ 3.6 The commercialisation of culture and sports
○ 3.7 Occupation and commercialisation of public space
○ 3.8 Socio-cultural aspects, sexism, discrimination and
stereotyping
○ 3.9 Children and adolescents as target groups
○ 3.10 Opposition and campaigns against advertising
○ 3.11 Taxation as revenue and control
• 4 Regulation
• 5 Future
○ 5.1 Global advertising
○ 5.2 Trends
• 6 See also
• 7 References
• 8 Bibliography
• 9 External links

[edit] History
Egyptians used papyrus to make sales messages and wall posters. advertiising things that matterd to
them....
Commercial messages and political campaign displays have been found in the
ruins of Pompei and ancient Arabia. Lost and found advertising on papyrus was
common in Ancient Greece and Ancient Rome. Wall or rock painting for
commercial advertising is another manifestation of an ancient advertising form,
which is present to this day in many parts of Asia, Africa, and South America. The
tradition of wall painting can be traced back to Indian rock art paintings that
date back to 4000 BCE.[6]

As the towns and cities of the Middle Ages began to grow, and the general populace was unable to read,
signs that today would say cobbler, miller, tailor or blacksmith would use an image associated with their
trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle or even a bag of flour.
Fruits and vegetables were sold in the city square from the backs of carts and wagons and their
proprietors used street callers or town criers to announce their whereabouts for the convenience of the
customers.
As education became an apparent need and reading, as well printing developed, advertising expanded to
include handbills. In the 17th century advertisements started to appear in weekly newspapers in
England. These early print advertisements were used mainly to promote books and newspapers, which
became increasingly affordable with advances in the printing press; and medicines, which were
increasingly sought after as disease ravaged Europe. However, false advertising and so-called "quack"
advertisements became a problem, which ushered in the regulation of advertising content.
Edo period advertising flyer from 1806 for a traditional medicine called Kinseitan

As the economy expanded during the 19th century, advertising grew alongside. In the United States, the
success of this advertising format eventually led to the growth of mail-order advertising.
In June 1836, French newspaper La Presse is the first to include paid advertising in its pages, allowing
it to lower its price, extend its readership and increase its profitability and the formula was soon copied
by all titles. Around 1840, Volney Palmer established a predecessor to advertising agencies in Boston.[7]
Around the same time, in France, Charles-Louis Havas extended the services of his news agency, Havas
to include advertisement brokerage, making it the first French group to organize. At first, agencies were
brokers for advertisement space in newspapers. N. W. Ayer & Son was the first full-service agency to
assume responsibility for advertising content. N.W. Ayer opened in 1869, and was located in
Philadelphia.[7]
At the turn of the century, there were few career choices for women in business; however, advertising
was one of the few. Since women were responsible for most of the purchasing done in their household,
advertisers and agencies recognized the value of women's insight during the creative process. In fact,
the first American advertising to use a sexual sell was created by a woman – for a soap product.
Although tame by today's standards, the advertisement featured a couple with the message "The skin
you love to touch".[8]

A print advertisement for the 1913 issue of the Encyclopædia Britannica

In the early 1920s, the first radio stations were established by radio equipment manufacturers and
retailers who offered programs in order to sell more radios to consumers. As time passed, many non-
profit organizations followed suit in setting up their own radio stations, and included: schools, clubs and
civic groups.[9] When the practice of sponsoring programs was popularised, each individual radio
program was usually sponsored by a single business in exchange for a brief mention of the business'
name at the beginning and end of the sponsored shows. However, radio station owners soon realised
they could earn more money by selling sponsorship rights in small time allocations to multiple
businesses throughout their radio station's broadcasts, rather than selling the sponsorship rights to single
businesses per show.
This practice was carried over to television in the late 1940s and early 1950s. A fierce battle was fought
between those seeking to commercialise the radio and people who argued that the radio spectrum should
be considered a part of the commons – to be used only non-commercially and for the public good. The
United Kingdom pursued a public funding model for the BBC, originally a private company, the British
Broadcasting Company, but incorporated as a public body by Royal Charter in 1927. In Canada,
advocates like Graham Spry were likewise able to persuade the federal government to adopt a public
funding model, creating the Canadian Broadcasting Corporation. However, in the United States, the
capitalist model prevailed with the passage of the Communications Act of 1934 which created the
Federal Communications Commission.[9] To placate the socialists, the U.S. Congress did require
commercial broadcasters to operate in the "public interest, convenience, and necessity".[10] Public
broadcasting now exists in the United States due to the 1967 Public Broadcasting Act which led to the
Public Broadcasting Service and National Public Radio.
In the early 1950s, the DuMont Television Network began the modern trend of selling advertisement
time to multiple sponsors. Previously, DuMont had trouble finding sponsors for many of their programs
and compensated by selling smaller blocks of advertising time to several businesses. This eventually
became the standard for the commercial television industry in the United States. However, it was still a
common practice to have single sponsor shows, such as The United States Steel Hour. In some instances
the sponsors exercised great control over the content of the show - up to and including having one's
advertising agency actually writing the show. The single sponsor model is much less prevalent now, a
notable exception being the Hallmark Hall of Fame.
The 1960s saw advertising transform into a modern approach in which creativity was allowed to shine,
producing unexpected messages that made advertisements more tempting to consumers' eyes. The
Volkswagen ad campaign—featuring such headlines as "Think Small" and "Lemon" (which were used
to describe the appearance of the car)—ushered in the era of modern advertising by promoting a
"position" or "unique selling proposition" designed to associate each brand with a specific idea in the
reader or viewer's mind. This period of American advertising is called the Creative Revolution and its
archetype was William Bernbach who helped create the revolutionary Volkswagen ads among others.
Some of the most creative and long-standing American advertising dates to this period.

Public advertising on Times Square, New York City.

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV.
Pioneering the concept of the music video, MTV ushered in a new type of advertising: the consumer
tunes in for the advertising message, rather than it being a by-product or afterthought. As cable and
satellite television became increasingly prevalent, specialty channels emerged, including channels
entirely devoted to advertising, such as QVC, Home Shopping Network, and ShopTV Canada.
Marketing through the Internet opened new frontiers for advertisers and contributed to the "dot-com"
boom of the 1990s. Entire corporations operated solely on advertising revenue, offering everything from
coupons to free Internet access. At the turn of the 21st century, a number of websites including the
search engine Google, started a change in online advertising by emphasizing contextually relevant,
unobtrusive ads intended to help, rather than inundate, users. This has led to a plethora of similar efforts
and an increasing trend of interactive advertising.
The share of advertising spending relative to GDP has changed little across large changes in media. For
example, in the U.S. in 1925, the main advertising media were newspapers, magazines, signs on
streetcars, and outdoor posters. Advertising spending as a share of GDP was about 2.9 percent. By
1998, television and radio had become major advertising media. Nonetheless, advertising spending as a
share of GDP was slightly lower—about 2.4 percent.[11]
A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such as
staged encounters in public places, giveaways of products such as cars that are covered with brand
messages, and interactive advertising where the viewer can respond to become part of the advertising
message. This reflects an increasing trend of interactive and "embedded" ads, such as via product
placement, having consumers vote through text messages, and various innovations utilizing social
network services such as MySpace.
[edit] Mobile billboard advertising

The RedEye newspaper advertised to its target market at North Avenue Beach with a
sailboat billboard on Lake Michigan.

Mobile billboards are truck- or blimp-mounted billboards or digital screens. These can be dedicated
vehicles built solely for carrying advertisements along routes preselected by clients, or they can be
specially-equipped cargo trucks. The billboards are often lighted; some being backlit, and others
employing spotlights. Some billboard displays are static, while others change; for example,
continuously or periodically rotating among a set of advertisements.
Mobile displays are used for various situations in metropolitan areas throughout the world, including:
• Target advertising
 • One-day, and long-term campaigns
• Conventions
• Sporting events
• Store openings and similar promotional events
• Big advertisements from smaller companies
• Others

[edit] Public service advertising

The same advertising techniques used to promote commercial goods and services can be used to inform,
educate and motivate the public about non-commercial issues, such as AIDS, political ideology, energy
conservation, religious recruitment, and deforestation.
Advertising, in its non-commercial guise, is a powerful educational tool capable of reaching and
motivating large audiences. "Advertising justifies its existence when used in the public interest - it is
much too powerful a tool to use solely for commercial purposes." - Attributed to Howard Gossage by
David Ogilvy.
Public service advertising, non-commercial advertising, public interest advertising, cause marketing,
and social marketing are different terms for (or aspects of) the use of sophisticated advertising and
marketing communications techniques (generally associated with commercial enterprise) on behalf of
non-commercial, public interest issues and initiatives.
In the United States, the granting of television and radio licenses by the FCC is contingent upon the
station broadcasting a certain amount of public service advertising. To meet these requirements, many
broadcast stations in America air the bulk of their required public service announcements during the late
night or early morning when the smallest percentage of viewers are watching, leaving more day and
prime time commercial slots available for high-paying advertisers.
Public service advertising reached its height during World Wars I and II under the direction of several
governments.

[edit] Types of advertising

[edit] Media

Paying people to hold signs is one of the oldest forms of advertising, as with this Human
directional pictured above
A bus with an advertisement for GAP in Singapore. Buses and other vehicles are popular
mediums for advertisers.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Commercial advertising media can include wall paintings, billboards, street furniture components,
printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone
screens, shopping carts, web popups, skywriting, bus stop benches, human billboards, magazines,
newspapers, town criers, sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight
advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts and
passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable
diapers, stickers on apples in supermarkets, shopping cart handles (grabertising), the opening section of
streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place
an "identified" sponsor pays to deliver their message through a medium is advertising.
One way to measure advertising effectiveness is known as Ad Tracking. This advertising research
methodology measures shifts in target market perceptions about the brand and product or service. These
shifts in perception are plotted against the consumers’ levels of exposure to the company’s
advertisements and promotions. The purpose of Ad Tracking is generally to provide a measure of the
combined effect of the media weight or spending level, the effectiveness of the media buy or targeting,
and the quality of the advertising executions or creative.[12]
See also: Advertising media scheduling and Advertising-free media

[edit] Covert advertising

Main article: Product placement

Covert advertising is when a product or brand is embedded in entertainment and media. For example, in
a film, the main character can use an item or other of a definite brand, as in the movie Minority Report,
where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the
top corner, or his watch engraved with the Bulgari logo. Another example of advertising in film is in I,
Robot, where main character played by Will Smith mentions his Converse shoes several times, calling
them "classics," because the film is set far in the future. I, Robot and Spaceballs also showcase futuristic
cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Cadillac
chose to advertise in the movie The Matrix Reloaded, which as a result contained many scenes in which
Cadillac cars were used. Similarly, product placement for Omega Watches, Ford, VAIO, BMW and
Aston Martin cars are featured in recent James Bond films, most notably Casino Royale. Bladerunner
includes some of the most obvious product placement; the whole film stops to show a coca cola
billboard.
[edit] Television commercials
Main articles: Television advertisement and Music in advertising

The TV commercial is generally considered the most effective mass-market advertising format, as is
reflected by the high prices TV networks charge for commercial airtime during popular TV events. The
annual Super Bowl football game in the United States is known as the most prominent advertising event
on television. The average cost of a single thirty-second TV spot during this game has reached $3
million (as of 2009).
The majority of television commercials feature a song or jingle that listeners soon relate to the product.
Virtual advertisements may be inserted into regular television programming through computer graphics.
It is typically inserted into otherwise blank backdrops[13] or used to replace local billboards that are not
relevant to the remote broadcast audience.[14] More controversially, virtual billboards may be inserted
into the background[15] where none exist in real-life. Virtual product placement is also possible.[16][17]
[edit] Infomercials
There are two types of infomercials, described as long form and short form. Long form infomercials
have a time length of 30 minutes. Short form infomercials are 30 seconds to 2 minutes long.
Infomercials are also known as direct response television (DRTV) commercials or direct response
marketing.
The main objective in an infomercial is to create an impulse purchase, so that the consumer sees the
presentation and then immediately buys the product through the advertised toll-free telephone number
or website. Infomercials describe, display, and often demonstrate products and their features, and
commonly have testimonials from consumers and industry professionals.
Some well known companies in the infomercial business are Script to Screen, Hawthorne Direct,
International Shopping Network and Guthy-Renker.
[edit] Celebrities
Main article: Celebrity branding

This type of advertising focuses upon using celebrity power, fame, money, popularity to gain
recognition for their products and promote specific stores or products. Advertisers often advertise their
products, for example, when celebrities share their favourite products or wear clothes by specific brands
or designers. Celebrities are often involved in advertising campaigns such as television or print adverts
to advertise specific or general products.
[edit] Media and advertising approaches
Increasingly, other media are overtaking television because of a shift towards consumer's usage of the
Internet as well as devices such as TiVo.
Advertising on the World Wide Web is a recent phenomenon. Prices of Web-based advertising space
are dependent on the "relevance" of the surrounding web content and the traffic that the website
receives.
E-mail advertising is another recent phenomenon. Unsolicited bulk E-mail advertising is known as
"spam".
Some companies have proposed placing messages or corporate logos on the side of booster rockets and
the International Space Station. Controversy exists on the effectiveness of subliminal advertising (see
mind control), and the pervasiveness of mass messages (see propaganda).
Unpaid advertising (also called publicity advertising), can provide good exposure at minimal cost.
Personal recommendations ("bring a friend", "sell it"), spreading buzz, or achieving the feat of equating
a brand with a common noun (in the United States, "Xerox" = "photocopier", "Kleenex" = tissue,
"Vaseline" = petroleum jelly, "Hoover" = vacuum cleaner,nintendo(older people)=video games, and
"Band-Aid" = adhesive bandage) — these can be seen as the pinnacle of any advertising campaign.
However, some companies oppose the use of their brand name to label an object. Equating a brand with
a common noun also risks turning that brand into a genericized trademark - turning it into a generic term
which means that its legal protection as a trademark is lost.
As the mobile phone became a new mass media in 1998 when the first paid downloadable content
appeared on mobile phones in Finland, it was only a matter of time until mobile advertising followed,
also first launched in Finland in 2000. By 2007 the value of mobile advertising had reached $2.2 billion
and providers such as Admob delivered billions of mobile ads.
More advanced mobile ads include banner ads, coupons, Multimedia Messaging Service picture and
video messages, advergames and various engagement marketing campaigns. A particular feature driving
mobile ads is the 2D Barcode, which replaces the need to do any typing of web addresses, and uses the
camera feature of modern phones to gain immediate access to web content. 83 percent of Japanese
mobile phone users already are active users of 2D barcodes.
A new form of advertising that is growing rapidly is social network advertising. It is online advertising
with a focus on social networking sites. This is a relatively immature market, but it has shown a lot of
promise as advertisers are able to take advantage of the demographic information the user has provided
to the social networking site. Friendertising is a more precise advertising term in which people are able
to direct advertisements toward others directly using social network service.
From time to time, The CW Television Network airs short programming breaks called "Content
Wraps," to advertise one company's product during an entire commercial break. The CW pioneered
"content wraps" and some products featured were Herbal Essences, Crest, Guitar Hero II, CoverGirl,
and recently Toyota.

[edit] Criticism of advertising

[edit] Hyper-commercialism and the commercial tidal wave

Criticism of advertising is closely linked with criticism of media and often interchangeable. They can
refer to its audio-visual aspects (e. g. cluttering of public spaces and airwaves), environmental aspects
(e. g. pollution, oversize packaging, increasing consumption) , political aspects (e. g. media
dependency, free speech, censorship), financial aspects (costs), ethical/moral/social aspects (e. g. sub-
conscious influencing, invasion of privacy, increasing consumption and waste, target groups, certain
products, honesty) and, of course, a mix thereof. Some aspects can be subdivided further and some can
cover more than one category.
As advertising has become increasingly ubiquitous in modern Western societies, it is also increasingly
being criticized. A person can hardly move in the public sphere or use a medium without being subject
to advertising. Advertising occupies public space and more and more invades the private sphere of
people, many of which consider it a nuisance. “It is becoming harder to escape from advertising and the
media. … Public space is increasingly turning into a gigantic billboard for products of all kind. The
aesthetical and political consequences cannot yet be foreseen.” [18] Hanno Rauterberg in the German
newspaper ‘Die Zeit’ calls advertising a new kind of dictatorship that cannot be escaped. [19]
“’’’Ad Creep’’’: …There are ads in schools, airport lounges, doctors offices, movie theaters, hospitals,
gas stations, elevators, convenience stores, on the Internet, on fruit, on ATM's, on garbage cans and
countless other places. There are ads on beach sand and restroom walls.”[20] “One of the ironies of
advertising in our times is that as commercialism increases, it makes it that much more difficult for any
particular advertiser to succeed, hence pushing the advertiser to even greater efforts.” [21] Within a
decade advertising in radios climbed to nearly 18 or 19 minutes per hour; on prime-time television the
standard until 1982 was no more than 9.5 minutes of advertising per hour, today it’s between 14 and 17
minutes. With the introduction of the shorter 15-second-spot the total amount of ads increased even
more dramatically. Ads are not only placed in breaks but e. g. also into baseball telecasts during the
game itself. They flood the internet, a market growing in leaps and bounds.
Other growing markets are ‘’product placements’’ in entertainment programming and in movies where
it has become standard practice and ‘’virtual advertising’’ where products get placed retroactively into
rerun shows. Product billboards are virtually inserted into Major League Baseball broadcasts and in the
same manner, virtual street banners or logos are projected on an entry canopy or sidewalks, for example
during the arrival of celebrities at the 2001 Grammy Awards. Advertising precedes the showing of films
at cinemas including lavish ‘film shorts’ produced by companies such as Microsoft or DaimlerChrysler.
“The largest advertising agencies have begun working aggressively to co-produce programming in
conjunction with the largest media firms” [22] creating Infomercials resembling entertainment
programming.
Opponents equate the growing amount of advertising with a “tidal wave” and restrictions with
“damming” the flood. Kalle Lasn, one of the most outspoken critics of advertising on the international
stage, considers advertising “the most prevalent and toxic of the mental pollutants. From the moment
your radio alarm sounds in the morning to the wee hours of late-night TV microjolts of commercial
pollution flood into your brain at the rate of around 3,000 marketing messages per day. Every day an
estimated twelve billion display ads, 3 million radio commercials and more than 200,000 television
commercials are dumped into North America’s collective unconscious”. [23] In the course of his life the
average American watches three years of advertising on television. [24]
More recent developments are video games incorporating products into their content, special
commercial patient channels in hospitals and public figures sporting temporary tattoos. A method
unrecognisable as advertising is so-called ‘’guerrilla marketing’’ which is spreading ‘buzz’ about a new
product in target audiences. Cash-strapped U.S. cities do not shrink back from offering police cars for
advertising. [25] A trend, especially in Germany, is companies buying the names of sports stadiums. The
Hamburg soccer Volkspark stadium first became the AOL Arena and then the HSH Nordbank Arena.
The Stuttgart Neckarstadion became the Mercedes-Benz Arena, the Dortmund Westfalenstadion now is
the Signal Iduna Park. The former SkyDome in Toronto was renamed Rogers Centre. Other recent
developments are, for example, that whole subway stations in Berlin are redesigned into product halls
and exclusively leased to a company. Düsseldorf even has ‘multi-sensorial’ adventure transit stops
equipped with loudspeakers and systems that spread the smell of a detergent. Swatch used beamers to
project messages on the Berlin TV-tower and Victory column, which was fined because it was done
without a permit. The illegality was part of the scheme and added promotion. [26]
It’s standard business management knowledge that advertising is a pillar, if not “the” pillar of the
growth-orientated free capitalist economy. “Advertising is part of the bone marrow of corporate
capitalism.” [27] “Contemporary capitalism could not function and global production networks could not
exist as they do without advertising.”[28]
For communication scientist and media economist Manfred Knoche at the University of Salzburg,
Austria, advertising isn’t just simply a ‘necessary evil’ but a ‘necessary elixir of life’ for the media
business, the economy and capitalism as a whole. Advertising and mass media economic interests create
ideology. Knoche describes advertising for products and brands as ‘the producer’s weapons in the
competition for customers’ and trade advertising, e. g. by the automotive industry, as a means to
collectively represent their interests against other groups, such as the train companies. In his view
editorial articles and programmes in the media, promoting consumption in general, provide a ‘cost free’
service to producers and sponsoring for a ‘much used means of payment’ in advertising. [29] Christopher
Lasch argues that advertising leads to an overall increase in consumption in society; "Advertising serves
not so much to advertise products as to promote consumption as a way of life."[30]
[edit] Advertising and constitutional rights

Advertising is equated with constitutionally guaranteed freedom of opinion and speech. [31] Therefore
criticizing advertising or any attempt to restrict or ban advertising is almost always considered to be an
attack on fundamental rights (First Amendment in the USA) and meets the combined and concentrated
resistance of the business and especially the advertising community. “Currently or in the near future,
any number of cases are and will be working their way through the court system that would seek to
prohibit any government regulation of ….. commercial speech (e. g. advertising or food labelling) on
the grounds that such regulation would violate citizens’ and corporations’ First Amendment rights to
free speech or free press.” [32] An example for this debate is advertising for tobacco or alcohol but also
advertising by mail or fliers (clogged mail boxes), advertising on the phone, in the internet and
advertising for children. Various legal restrictions concerning spamming, advertising on mobile phones,
addressing children, tobacco, alcohol have been introduced by the US, the EU and various other
countries. Not only the business community resists restrictions of advertising. Advertising as a means of
free expression has firmly established itself in western society. Surveys e. g. reveal that advertising is
generally seen as a welcome information and seldom as a nuisance. At worst it is seen as a necessary
evil to be endured and most often its entertaining value is pointed out. Hardly any bye-law restricting
advertising fails to appease possible critics by pointing out the positive effects and the necessity of
advertising in its foreword. McChesney argues, that the government deserves constant vigilance when it
comes to such regulations, but that it is certainly not “the only antidemocratic force in our society. …
corporations and the wealthy enjoy a power every bit as immense as that enjoyed by the lords and
royalty of feudal times” and “markets are not value-free or neutral; they not only tend to work to the
advantage of those with the most money, but they also by their very nature emphasize profit over all
else….Hence, today the debate is over whether advertising or food labelling, or campaign contributions
are speech….if the rights to be protected by the First Amendment can only be effectively employed by a
fraction of the citizenry, and their exercise of these rights gives them undue political power and
undermines the ability of the balance of the citizenry to exercise the same rights and/or constitutional
rights, then it is not necessarily legitimately protected by the First Amendment.” In addition, “those with
the capacity to engage in free press are in a position to determine who can speak to the great mass of
citizens and who cannot”. [33] Critics in turn argue, that advertising invades privacy which is a
constitutional right. For, on the one hand, advertising physically invades privacy, on the other, it
increasingly uses relevant, information-based communication with private data assembled without the
knowledge or consent of consumers or target groups.
For Georg Franck at Vienna University of Technology advertising is part of what he calls “mental
capitalism” [34] [35], taking up a term (mental) which has been used by groups concerned with the mental
environment, such as Adbusters. Franck blends the “Economy of Attention” with Christopher Lasch’s
The Culture of Narcissism I culture of narcissm into the mental capitalism [36]: In his essay „Advertising
at the Edge of the Apocalypse“, Sut Jhally writes: “20. century advertising is the most powerful and
sustained system of propaganda in human history and its cumulative cultural effects, unless quickly
checked, will be responsible for destroying the world as we know it. [37]
[edit] The price of attention and hidden costs

Advertising has developed into a billion-dollar business on which many depend. In 2006 391 billion US
dollars were spent worldwide for advertising. In Germany, for example, the advertising industry
contributes 1.5% of the gross national income; the figures for other developed countries are similar.
Thus, advertising and growth are directly and causally linked. As far as a growth based economy can be
blamed for the harmful human lifestyle (affluent society) advertising has to be considered in this aspect
concerning its negative impact, because its main purpose is to raise consumption. “The industry is
accused of being one of the engines powering a convoluted economic mass production system which
promotes consumption.”[38]
Attention and attentiveness have become a new commodity for which a market developed. “The amount
of attention that is absorbed by the media and redistributed in the competition for quotas and reach is
not identical with the amount of attention, that is available in society. The total amount circulating in
society is made up of the attention exchanged among the people themselves and the attention given to
media information. Only the latter is homogenised by quantitative measuring and only the latter takes
on the character of an anonymous currency.” [39] [40] According to Franck, any surface of presentation
that can guarantee a certain degree of attentiveness works as magnet for attention, e. g. media which are
actually meant for information and entertainment, culture and the arts, public space etc. It is this
attraction which is sold to the advertising business. The German Advertising Association stated that in
2007 30.78 billion Euros were spent on advertising in Germany [41], 26% in newspapers, 21% on
television, 15% by mail and 15% in magazines. In 2002 there were 360.000 people employed in the
advertising business. The internet revenues for advertising doubled to almost 1 billion Euros from 2006
to 2007, giving it the highest growth rates.
Spiegel-Online reported that in the USA in 2008 for the first time more money was spent for advertising
on internet (105.3 billion US dollars) than on television (98.5 billion US dollars). The largest amount in
2008 was still spent in the print media (147 billion US dollars). [42] For that same year, Welt-Online
reported that the US pharmaceutical industry spent almost double the amount on advertising (57.7
billion dollars) than it did on research (31.5 billion dollars). But Marc-André Gagnon und Joel Lexchin
of York University, Toronto, estimate that the actual expenses for advertising are higher yet, because
not all entries are recorded by the research institutions. [43] Not included are indirect advertising
campaigns such as sales, rebates and price reductions. Few consumers are aware of the fact that they are
the ones paying for every cent spent for public relations, advertisements, rebates, packaging etc. since
they ordinarily get included in the price calculation.
[edit] Influencing and conditioning
Advertising for McDonald's on the Via di Propaganda, Rome, Italy

The most important element of advertising is not information but suggestion more or less making use of
associations, emotions (appeal to emotion) and drives dormant in the sub-conscience of people, such as
sex drive, herd instinct, of desires, such as happiness, health, fitness, appearance, self-esteem,
reputation, belonging, social status, identity, adventure, distraction, reward, of fears (appeal to fear),
such as illness, weaknesses, loneliness, need, uncertainty, security or of prejudices, learned opinions and
comforts. “All human needs, relationships, and fears – the deepest recesses of the human psyche –
become mere means for the expansion of the commodity universe under the force of modern marketing.
With the rise to prominence of modern marketing, commercialism – the translation of human relations
into commodity relations – although a phenomenon intrinsic to capitalism, has expanded
exponentially.” [44]’Cause-related marketing’ in which advertisers link their product to some worthy
social cause has boomed over the past decade.
Advertising exploits the model role of celebrities or popular figures and makes deliberate use of humour
as well as of associations with colour, tunes, certain names and terms. Altogether, these are factors of
how one perceives himself and one’s self-worth. In his description of ‘mental capitalism’ Franck says,
“the promise of consumption making someone irresistible is the ideal way of objects and symbols into a
person’s subjective experience. Evidently, in a society in which revenue of attention moves to the fore,
consumption is drawn by one’s self-esteem. As a result, consumption becomes ‘work’ on a person’s
attraction. From the subjective point of view, this ‘work’ opens fields of unexpected dimensions for
advertising. Advertising takes on the role of a life councillor in matters of attraction. (…) The cult
around one’s own attraction is what Christopher Lasch described as ‘Culture of Narcissism’.” [45] [46]
For advertising critics another serious problem is that “the long standing notion of separation between
advertising and editorial/creative sides of media is rapidly crumbling” and advertising is increasingly
hard to tell apart from news, information or entertainment. The boundaries between advertising and
programming are becoming blurred. According to the media firms all this commercial involvement has
no influence over actual media content, but, as McChesney puts it, “this claim fails to pass even the
most basic giggle test, it is so preposterous.” [47]
Advertising draws “heavily on psychological theories about how to create subjects, enabling advertising
and marketing to take on a ‘more clearly psychological tinge’ (Miller and Rose, 1997, cited in Thrift,
1999, p. 67). Increasingly, the emphasis in advertising has switched from providing ‘factual’
information to the symbolic connotations of commodities, since the crucial cultural premise of
advertising is that the material object being sold is never in itself enough. Even those commodities
providing for the most mundane necessities of daily life must be imbued with symbolic qualities and
culturally endowed meanings via the ‘magic system (Williams, 1980) of advertising. In this way and by
altering the context in which advertisements appear, things ‘can be made to mean "just about anything"’
(McFall, 2002, p. 162) and the ‘same’ things can be endowed with different intended meanings for
different individuals and groups of people, thereby offering mass produced visions of individualism.” [48]
Before advertising is done, market research institutions need to know and describe the target group in
order to exactly plan and implement the advertising campaign and to achieve the best possible results. A
whole array of sciences directly deal with advertising and marketing or is used to improve its effects.
Focus groups, psychologists and cultural anthropologists are ‘’’de rigueur’’’ in marketing research”. [49]
Vast amounts of data on persons and their shopping habits are collected, accumulated, aggregated and
analysed with the aid of credit cards, bonus cards, raffles and, last but not least, internet surveying. With
increasing accuracy this supplies a picture of behaviour, wishes and weaknesses of certain sections of a
population with which advertisement can be employed more selectively and effectively. The efficiency
of advertising is improved through advertising research. Universities, of course supported by business
and in co-operation with other disciplines (s. above), mainly Psychiatry, Anthropology, Neurology and
behavioural sciences, are constantly in search for ever more refined, sophisticated, subtle and crafty
methods to make advertising more effective. “Neuromarketing is a controversial new field of marketing
which uses medical technologies such as functional Magnetic Resonance Imaging (fMRI) -- not to heal,
but to sell products. Advertising and marketing firms have long used the insights and research methods
of psychology in order to sell products, of course. But today these practices are reaching epidemic
levels, and with a complicity on the part of the psychological profession that exceeds that of the past.
The result is an enormous advertising and marketing onslaught that comprises, arguably, the largest
single psychological project ever undertaken. Yet, this great undertaking remains largely ignored by the
American Psychological Association.” [50] Robert McChesney calls it "the greatest concerted attempt at
psychological manipulation in all of human history." [51]
[edit] Dependency of the media and corporate censorship

Almost all mass media are advertising media and many of them are exclusively advertising media and,
with the exception of public service broadcasting are privately owned. Their income is predominantly
generated through advertising; in the case of newspapers and magazines from 50 to 80%. Public service
broadcasting in some countries can also heavily depend on advertising as a source of income (up to
40%).[52] In the view of critics no media that spreads advertisements can be independent and the higher
the proportion of advertising, the higher the dependency. This dependency has “distinct implications for
the nature of media content…. In the business press, the media are often referred to in exactly the way
they present themselves in their candid moments: as a branch of the advertising industry.”[53]
In addition, the private media are increasingly subject to mergers and concentration with property
situations often becoming entangled and opaque. This development, which Henry A. Giroux calls an
“ongoing threat to democratic culture”, [54] by itself should suffice to sound all alarms in a democracy.
Five or six advertising agencies dominate this 400 billion U.S. dollar global industry.
“Journalists have long faced pressure to shape stories to suit advertisers and owners …. the vast
majority of TV station executives found their news departments ‘cooperative’ in shaping the news to
assist in ‘non-traditional revenue development.” [55] Negative and undesired reporting can be prevented
or influenced when advertisers threaten to cancel orders or simply when there is a danger of such a
cancellation. Media dependency and such a threat becomes very real when there is only one dominant
or very few large advertisers. The influence of advertisers is not only in regard to news or information
on their own products or services but expands to articles or shows not directly linked to them. In order
to secure their advertising revenues the media has to create the best possible ‘advertising environment’.
Another problem considered censorship by critics is the refusal of media to accept advertisements that
are not in their interest. A striking example of this is the refusal of TV stations to broadcast ads by
Adbusters. Groups try to place advertisements and are refused by networks. [56]
It is principally the viewing rates which decide upon the programme in the private radio and television
business. “Their business is to absorb as much attention as possible. The viewing rate measures the
attention the media trades for the information offered. The service of this attraction is sold to the
advertising business” [57] and the viewing rates determine the price that can be demanded for advertising.
“Advertising companies determining the contents of shows has been part of daily life in the USA since
1933. Procter & Gamble (P&G) …. offered a radio station a history-making trade (today know as
“bartering”): the company would produce an own show for “free” and save the radio station the high
expenses for producing contents. Therefore the company would want its commercials spread and, of
course, its products placed in the show. Thus, the series ‘Ma Perkins’ was created, which P&G skilfully
used to promote Oxydol, the leading detergent brand in those years and the Soap opera was born …” [58]
While critics basically worry about the subtle influence of the economy on the media, there are also
examples of blunt exertion of influence. The US company Chrysler, before it merged with Daimler
Benz had its agency, PentaCom, send out a letter to numerous magazines, demanding them to send, an
overview of all the topics before the next issue is published to “avoid potential conflict”. Chrysler most
of all wanted to know, if there would be articles with “sexual, political or social” content or which could
be seen as “provocative or offensive”. PentaCom executive David Martin said: “Our reasoning is, that
anyone looking at a 22.000 $ product would want it surrounded by positive things. There is nothing
positive about an article on child pornography.” [59] In another example, the „USA Network held top-
level ‚off-the-record’ meetings with advertisers in 2000 to let them tell the network what type of
programming content they wanted in order for USA to get their advertising.” [60] Television shows are
created to accommodate the needs for advertising, e. g. splitting them up in suitable sections. Their
dramaturgy is typically designed to end in suspense or leave an unanswered question in order to keep
the viewer attached.
The movie system, at one time outside the direct influence of the broader marketing system, is now
fully integrated into it through the strategies of licensing, tie-ins and product placements. The prime
function of many Hollywood films today is to aid in the selling of the immense collection of
commodities. [61] The press called the 2002 Bond film ‘Die Another Day’ featuring 24 major
promotional partners an ‘ad-venture’ and noted that James Bond “now has been ‘licensed to sell’” As it
has become standard practise to place products in motion pictures, it “has self-evident implications for
what types of films will attract product placements and what types of films will therefore be more likely
to get made”. [62]
Advertising and information are increasingly hard to distinguish from each other. “The borders between
advertising and media …. become more and more blurred…. What August Fischer, chairman of the
board of Axel Springer publishing company considers to be a ‘proven partnership between the media
and advertising business’ critics regard as nothing but the infiltration of journalistic duties and
freedoms”. According to RTL-executive Helmut Thoma “private stations shall not and cannot serve any
mission but only the goal of the company which is the ‘acceptance by the advertising business and the
viewer’. The setting of priorities in this order actually says everything about the ‘design of the
programmes’ by private television.” [63] Patrick Le Lay, former managing director of TF1, a private
French television channel with a market share of 25 to 35%, said: There are many ways to talk about
television. But from the business point of view, let’s be realistic: basically, the job of TF1 is, e. g. to
help Coca Cola sell its product. (…) For an advertising message to be perceived the brain of the viewer
must be at our disposal. The job of our programmes is to make it available, that is to say, to distract it, to
relax it and get it ready between two messages. It is disposable human brain time that we sell to Coca
Cola.”[64]
Because of these dependencies a widespread and fundamental public debate about advertising and its
influence on information and freedom of speech is difficult to obtain, at least through the usual media
channels; otherwise these would saw off the branch they are sitting on. “The notion that the commercial
basis of media, journalism, and communication could have troubling implications for democracy is
excluded from the range of legitimate debate” just as “capitalism is off-limits as a topic of legitimate
debate in U.S. political culture”. [65]
An early critic of the structural basis of U.S. journalism was Upton Sinclair with his novel The Brass
Check in which he stresses the influence of owners, advertisers, public relations, and economic interests
on the media. In his book “Our Master's Voice – Advertising” the social ecologist James Rorty (1890–
1973) wrote: "The gargoyle’s mouth is a loudspeaker, powered by the vested interest of a two-billion
dollar industry, and back of that the vested interests of business as a whole, of industry, of finance. It is
never silent, it drowns out all other voices, and it suffers no rebuke, for it is not the voice of America?
That is its claim and to some extent it is a just claim...”[66]
It has taught us how to live, what to be afraid of, what to be proud of, how to be beautiful, how to be
loved, how to be envied, how to be successful.. Is it any wonder that the American population tends
increasingly to speak, think, feel in terms of this jabberwocky? That the stimuli of art, science, religion
are progressively expelled to the periphery of American life to become marginal values, cultivated by
marginal people on marginal time?"[67]
[edit] The commercialisation of culture and sports

Performances, exhibitions, shows, concerts, conventions and most other events can hardly take place
without sponsoring. The increasing lack of public funding or support makes the arts and cultural events
dependant on private business. Thus, arts and culture are put into the service of sales promotion.
Wherever sponsors finance publicly born arts and culture they buy the service of attraction. Artists are
graded and paid according to their art’s value for commercial purposes. Corporations promote renown
artists, therefore getting exclusive rights in global advertising campaigns. Broadway shows, like ‘La
Bohème’ featured commercial props in its set. [68]
Advertising itself is extensively considered to be a contribution to culture. Advertising is integrated into
fashion. On many pieces of clothing the company logo is the only design or is an important part of it.
There is only little room left outside the consumption economy, in which culture and art can develop
independently and where alternative values can be expressed. A last important sphere, the universities,
is under strong pressure to open up for business and its interests. [69]

inflatable billboard in front of a sports stadium

Competitive sports have become unthinkable without sponsoring and there is a mutual dependency.
High income with advertising is only possible with a comparable number of spectators or viewers. On
the other hand, the poor performance of a team or a sportsman results in less advertising revenues.
Jürgen Hüther and Hans-Jörg Stiehler talk about a ‘Sports/Media Complex which is a complicated mix
of media, agencies, managers, sports promoters, advertising etc. with partially common and partially
diverging interests but in any case with common commercial interests. The media presumably is at
centre stage because it can supply the other parties involved with a rare commodity, namely (potential)
public attention. In sports “the media are able to generate enormous sales in both circulation and
advertising.” [70]
“Sports sponsorship is acknowledged by the tobacco industry to be valuable advertising. A Tobacco
Industry journal in 1994 described the Formula One car as ‘The most powerful advertising space in the
world’. …. In a cohort study carried out in 22 secondary schools in England in 1994 and 1995 boys
whose favourite television sport was motor racing had a 12.8% risk of becoming regular smokers
compared to 7.0% of boys who did not follow motor racing.” [71]
Not the sale of tickets but transmission rights, sponsoring and merchandising in the meantime make up
the largest part of sports association’s and sports club’s revenues with the IOC (International Olympic
Committee) taking the lead. The influence of the media brought many changes in sports including the
admittance of new ‘trend sports’ into the Olympic Games, the alteration of competition distances,
changes of rules, animation of spectators, changes of sports facilities, the cult of sports heroes who
quickly establish themselves in the advertising and entertaining business because of their media value
[72]
and last but not least, the naming and renaming of sport stadiums after big companies. “In sports
adjustment into the logic of the media can contribute to the erosion of values such as equal chances or
fairness, to excessive demands on athletes through public pressure and multiple exploitation or to deceit
(doping, manipulation of results …). It is in the very interest of the media and sports to counter this
danger because media sports can only work as long as sport exists. [73]
[edit] Occupation and commercialisation of public space

Every visually perceptible place has potential for advertising. Especially urban areas with their
structures but also landscapes in sight of through fares are more and more turning into media for
advertisements. Signs, posters, billboards, flags have become decisive factors in the urban appearance
and their numbers are still on the increase. “Outdoor advertising has become unavoidable. Traditional
billboards and transit shelters have cleared the way for more pervasive methods such as wrapped
vehicles, sides of buildings, electronic signs, kiosks, taxis, posters, sides of buses, and more. Digital
technologies are used on buildings to sport ‘urban wall displays’. In urban areas commercial content is
placed in our sight and into our consciousness every moment we are in public space. The German
Newspaper ‘Zeit’ called it a new kind of ‘dictatorship that one cannot escape’. [74] Over time, this
domination of the surroundings has become the “natural” state. Through long-term commercial
saturation, it has become implicitly understood by the public that advertising has the right to own,
occupy and control every inch of available space. The steady normalization of invasive advertising dulls
the public’s perception of their surroundings, re-enforcing a general attitude of powerlessness toward
creativity and change, thus a cycle develops enabling advertisers to slowly and consistently increase the
saturation of advertising with little or no public outcry.”[75]
The massive optical orientation toward advertising changes the function of public spaces which are
utilised by brands. Urban landmarks are turned into trademarks. The highest pressure is exerted on
renown and highly frequented public spaces which are also important for the identity of a city (e. g.
Piccadilly Circus, Times Square, Alexanderplatz). Urban spaces are public commodities and in this
capacity they are subject to “aesthetical environment protection”, mainly through building regulations,
heritage protection and landscape protection. “It is in this capacity that these spaces are now being
privatised. They are peppered with billboards and signs, they are remodelled into media for
advertising.” [76] [77]
[edit] Socio-cultural aspects, sexism, discrimination and stereotyping

“Advertising has an “agenda setting function” which is the ability, with huge sums of money, to put
consumption as the only item on the agenda. In the battle for a share of the public conscience this
amounts to non-treatment (ignorance) of whatever is not commercial and whatever is not advertised for.
Spheres without commerce and advertising serving the muses and relaxation remain without respect.
With increasing force advertising makes itself comfortable in the private sphere so that the voice of
commerce becomes the dominant way of expression in society.” [78] Advertising critics see advertising
as the leading light in our culture. Sut Jhally and James Twitchell go beyond considering advertising as
kind of religion and that advertising even replaces religion as a key institution. [79] "Corporate
advertising (or is it commercial media?) is the largest single psychological project ever undertaken by
the human race. Yet for all of that, its impact on us remains unknown and largely ignored. When I think
of the media’s influence over years, over decades, I think of those brainwashing experiments conducted
by Dr. Ewen Cameron in a Montreal psychiatric hospital in the 1950s (see MKULTRA). The idea of the
CIA-sponsored "depatterning" experiments was to outfit conscious, unconscious or semiconscious
subjects with headphones, and flood their brains with thousands of repetitive "driving" messages that
would alter their behaviour over time….Advertising aims to do the same thing." [80] Advertising is
especially aimed at young people and children and it increasingly reduces young people to consumers.
[81]
For Sut Jhally it is not “surprising that something this central and with so much being expended on it
should become an important presence in social life. Indeed, commercial interests intent on maximizing
the consumption of the immense collection of commodities have colonized more and more of the spaces
of our culture. For instance, almost the entire media system (television and print) has been developed as
a delivery system for marketers its prime function is to produce audiences for sale to advertisers. Both
the advertisements it carries, as well as the editorial matter that acts as a support for it, celebrate the
consumer society. The movie system, at one time outside the direct influence of the broader marketing
system, is now fully integrated into it through the strategies of licensing, tie-ins and product placements.
The prime function of many Hollywood films today is to aid in the selling of the immense collection of
commodities. As public funds are drained from the non-commercial cultural sector, art galleries,
museums and symphonies bid for corporate sponsorship.”[82] In the same way effected is the education
system and advertising is increasingly penetrating schools and universities. Cities, such as New York,
accept sponsors for public playgrounds. “Even the pope has been commercialized … The pope’s 4-day
visit to Mexico in …1999 was sponsored by Frito-Lay and PepsiCo. [83] The industry is accused of being
one of the engines powering a convoluted economic mass production system which promotes
consumption. As far as social effects are concerned it does not matter whether advertising fuels
consumption but which values, patterns of behaviour and assignments of meaning it propagates.
Advertising is accused of hijacking the language and means of pop culture, of protest movements and
even of subversive criticism and does not shy away from scandalizing and breaking taboos (e. g.
Benneton). This in turn incites counter action, what Kalle Lasn in 2001 called ‘’Jamming the Jam of the
Jammers’’. Anything goes. “It is a central social-scientific question what people can be made to do by
suitable design of conditions and of great practical importance. For example, from a great number of
experimental psychological experiments it can be assumed, that people can be made to do anything they
are capable of, when the according social condition can be created.” [84]
Advertising often uses stereotype gender specific roles of men and women reinforcing existing clichés
and it has been criticized as “inadvertently or even intentionally promoting sexism, racism, and
ageism… At very least, advertising often reinforces stereotypes by drawing on recognizable "types" in
order to tell stories in a single image or 30 second time frame.”[85] Activities are depicted as typical male
or female (stereotyping). In addition people are reduced to their sexuality or equated with commodities
and gender specific qualities are exaggerated. Sexualised female bodies, but increasingly also males,
serve as eye-catchers. In advertising it is usually a woman being depicted as
• servants of men and children that react to the demands and complaints of their
loved ones with a bad conscience and the promise for immediate improvement
(wash, food)
• a sexual or emotional play toy for the self-affirmation of men
• a technically totally clueless being that can only manage a childproof operation
• female expert, but stereotype from the fields of fashion, cosmetics, food or at the
most, medicine
• doing ground-work for others, e. g. serving coffee while a journalist interviews a
politician [86]
A great part of advertising is the promotion of products dealing with the appearance of people, mainly
for women (in the past almost only for women). Thus, the media put girls and women under high
pressure to compare themselves with a propagated ideal beauty. Consequences of this are eating
disorders, self mutilations, beauty operations etc. The EU parliament passed a resolution in 2008 that
advertising may not be discriminating and degrading. This shows that politics is increasingly concerned
about the negative aspects of advertising.
[edit] Children and adolescents as target groups

The children’s market, where resistance to advertising is weakest, is the “pioneer for ad creep”. [87]
“Kids are among the most sophisticated observers of ads. They can sing the jingles and identify the
logos, and they often have strong feelings about products. What they generally don't understand,
however, are the issues that underlie how advertising works. Mass media are used not only to sell goods
but also ideas: how we should behave, what rules are important, who we should respect and what we
should value.” [88] Youth is increasingly reduced to the role of a consumer. Not only the makers of toys,
sweets, ice cream, breakfast food and sport articles prefer to aim their promotion at children and
adolescents. Advertising for other products preferably uses media with which they can also reach the
next generation of consumers. [89] “Key advertising messages exploit the emerging independence of
young people”. Cigarettes, for example, “are used as a fashion accessory and appeal to young women.
Other influences on young people include the linking of sporting heroes and smoking through sports
sponsorship, the use of cigarettes by popular characters in television programmes and cigarette
promotions. Research suggests that young people are aware of the most heavily advertised cigarette
brands.” [90]
“Product placements show up everywhere, and children aren't exempt. Far from it. The animated film,
Foodfight, had ‘thousands of products and character icons from the familiar (items) in a grocery store.’
Children's books also feature branded items and characters, and millions of them have snack foods as
lead characters.“ [91] Business is interested in children and adolescents because of their buying power
and because of their influence on the shopping habits of their parents. As they are easier to influence
they are especially targeted by the advertising business. “The marketing industry is facing increased
pressure over claimed links between exposure to food advertising and a range of social problems,
especially growing obesity levels.” [92] In 2001, children’s programming accounted for over 20% of all
U.S. television watching. The global market for children’s licensed products was some 132 billion U.S.
dollars in 2002. [93] Advertisers target children because, e. g. in Canada, they “represent three distinct
markets:
1. Primary Purchasers ($2.9 billion annually)
2. Future Consumers (Brand-loyal adults)
3. Purchase Influencers ($20 billion annually)
Kids will carry forward brand expectations, whether positive, negative or indifferent Kids are already
accustomed to being catered to as consumers. The long term prize: Loyalty of the kid translates into a
brand loyal adult customer” [94]
The average Canadian child sees 350,000 TV commercials before graduating from high school, spends
nearly as much time watching TV as attending classes. In 1980 the Canadian province of Québec
banned advertising for children under age 13. [95] “In upholding the consititutional validity of the
Quebec Consumer Protection Act restrictions on advertising to children under age 13 (in the case of a
challenge by a toy company) the Court held: ‘...advertising directed at young children is per se
manipulative. Such advertising aims to promote products by convincing those who will always
believe.’”[96] Norway (ads directed at children under age 12), and Sweden (television ads aimed at
children under age 12) also have legislated broad bans on advertising to children, during child
programmes any kind of advertising is forbidden in Sweden, Denmark, Austria and Flemish Belgium.
In Greece there is no advertising for kids products from 7 to 22 h. An attempt to restrict advertising
directed at children in the USA failed with reference to the First Amendment. In Spain bans are also
considered undemocratic. [97] [98]
[edit] Opposition and campaigns against advertising

Billboard in Lund, Sweden, saying "One Night Stand?" (2005)

According to critics, the total commercialization of all fields of society, the privatization of public
space, the acceleration of consumption and waste of resources including the negative influence on
lifestyles and on the environment has not been noticed to the necessary extent. The “hyper-
commercialization of the culture is recognized and roundly detested by the citizenry, although the topic
scarcely receives a whiff of attention in the media or political culture”. [99] “The greatest damage done
by advertising is precisely that it incessantly demonstrates the prostitution of men and women who lend
their intellects, their voices, their artistic skills to purposes in which they themselves do not believe, and
…. that it helps to shatter and ultimately destroy our most precious non-material possessions: the
confidence in the existence of meaningful purposes of human activity and respect for the integrity of
man.” [100] “The struggle against advertising is therefore essential if we are to overcome the pervasive
alienation from all genuine human needs that currently plays such a corrosive role in our society. But in
resisting this type of hyper-commercialism we should not be under any illusions. Advertising may seem
at times to be an almost trivial of omnipresent aspect of our economic system. Yet, as economist A. C.
Pigou pointed out, it could only be ‘removed altogether’ if ‘conditions of monopolistic competition’
inherent to corporate capitalism were removed. To resist it is to resist the inner logic of capitalism itself,
of which it is the pure expression.” [101]
“Visual pollution, much of it in the form of advertising, is an issue in all the world's large cities. But
what is pollution to some is a vibrant part of a city's fabric to others. New York City without Times
Square's huge digital billboards or Tokyo without the Ginza's commercial panorama is unthinkable.
Piccadilly Circus would be just a London roundabout without its signage. Still, other cities, like
Moscow, have reached their limit and have begun to crack down on over-the-top outdoor
advertising.”[102] “Many communities have chosen to regulate billboards to protect and enhance their
scenic character. The following is by no means a complete list of such communities, but it does give a
good idea of the geographic diversity of cities, counties and states that prohibit new construction of
billboards. Scenic America estimates the nationwide total of cities and communities prohibiting the
construction of new billboards to be at least 1500. A number of States in the USA prohibit all
billboards:
• Vermont - Removed all billboards in 1970s
 • Hawaii - Removed all billboards in 1920s
• Maine - Removed all billboards in 1970s and early 80s
• Alaska - State referendum passed in 1998 prohibits billboards [103]

• Almost two years ago the city of São Paulo, Brazil, ordered the downsizing or
removal of all billboards and most other forms of commercial advertising in the
city.” [104]
Technical appliances, such as Spam filters, TV-Zappers, Ad-Blockers for TV’s and stickers on mail
boxes: “No Advertising” and an increasing number of court cases indicate a growing interest of people
to restrict or rid themselves of unwelcome advertising.
Consumer protection associations, environment protection groups, globalization opponents,
consumption critics, sociologists, media critics, scientists and many others deal with the negative
aspects of advertising. “Antipub” in France, “subvertising”, culture jamming and adbusting have
become established terms in the anti-advertising community. On the international level globalization
critics such as Naomi Klein and Noam Chomsky are also renown media and advertising critics. These
groups criticize the complete occupation of public spaces, surfaces, the airwaves, the media, schools etc.
and the constant exposure of almost all senses to advertising messages, the invasion of privacy, and that
only few consumers are aware that they themselves are bearing the costs for this to the very last penny.
Some of these groups, such as the ‘The Billboard Liberation Front Creative Group’ in San Francisco or
Adbusters in Vancouver, Canada, have manifestos. [105] Grassroots organizations campaign against
advertising or certain aspects of it in various forms and strategies and quite often have different roots.
Adbusters, for example contests and challenges the intended meanings of advertising by subverting
them and creating unintended meanings instead. Other groups, like ‘Illegal Signs Canada’ try to stem
the flood of billboards by detecting and reporting ones that have been put up without permit. [106]
Examples for various groups and organizations in different countries are ‘L'association Résistance à
l'Agression Publicitaire’ [107] in France, where also media critic Jean Baudrillard is a renown author. [108]
The ‘Anti Advertising Agency’ works with parody and humour to raise awareness about advertising. [109]
and ‘Commercial Alert’ campaigns for the protection of children, family values, community,
environmental integrity and democracy.[110] Media literacy organisations aim at training people,
especially children in the workings of the media and advertising in their programmes. In the U. S., for
example, the ‘Media Education Foundation’ produces and distributes documentary films and other
educational resources. [111] ‘MediaWatch’, a Canadian non-profit women's organization works to educate
consumers about how they can register their concerns with advertisers and regulators. [112] The Canadian
‘Media Awareness Network/Réseau éducation médias’ offers one of the world’s most comprehensive
collections of media education and Internet literacy resources. Its member organizations represent the
public, non-profit but also private sectors. Although it stresses its independence it accepts financial
support from Bell Canada, CTVGlobeMedia, CanWest, TELUS and S-VOX. [113]
To counter the increasing criticism of advertising aiming at children media literacy organizations are
also initiated and funded by corporations and the advertising business themselves. In the U. S. the ‘The
Advertising Educational Foundation’ was created in 1983 supported by ad agencies, advertisers and
media companies. It is the “advertising industry's provider and distributor of educational content to
enrich the understanding of advertising and its role in culture, society and the economy” [114] sponsored
for example by American Airlines, Anheuser-Busch, Campbell Soup, Coca-Cola, Colgate-Palmolive,
Walt Disney, Ford, General Foods, General Mills, Gillette, Heinz, Johnson & Johnson, Kellogg, Kraft,
Nestle, Philip Morris, Quaker Oats, Nabisco, Schering, Sterling, Unilever, Warner Lambert, advertising
agencies like Saatchi & Saatchi Compton and media companies like American Broadcasting
Companies, CBS, Capital Cities Communications, Cox Enterprises, Forbes, Hearst, Meredith, The New
York Times, RCA/NBC, Reader’s Digest, Time, Washington Post, just to mention a few. Canadian
businesses established ‘Concerned Children's Advertisers’ in 1990 “to instill confidence in all relevant
publics by actively demonstrating our commitment, concern, responsibility and respect for children”.[115]
Members are CanWest, Corus, CTV, General Mills, Hasbro, Hershey’s, Kellogg’s, Loblaw, Kraft,
Mattel, MacDonald’s, Nestle, Pepsi, Walt Disney, Weston as well as almost 50 private broadcast
partners and others. [116] Concerned Children's Advertisers was example for similar organizations in
other countries like ‘Media smart’ in the United Kingdom with offspring in Germany, France, the
Netherlands and Sweden. New Zealand has a similar business-funded programme called ‘Willie
Munchright’. “While such interventions are claimed to be designed to encourage children to be critical
of commercial messages in general, critics of the marketing industry suggest that the motivation is
simply to be seen to address a problem created by the industry itself, that is, the negative social impacts
to which marketing activity has contributed…. By contributing media literacy education resources, the
marketing industry is positioning itself as being part of the solution to these problems, thereby seeking
to avoid wide restrictions or outright bans on marketing communication, particularly for food products
deemed to have little nutritional value directed at children…. The need to be seen to be taking positive
action primarily to avert potential restrictions on advertising is openly acknowledged by some sectors of
the industry itself…. Furthermore, Hobbs (1998) suggests that such programs are also in the interest of
media organizations that support the interventions to reduce criticism of the potential negative effects of
the media themselves.”[117]
[edit] Taxation as revenue and control

Public interest groups suggest that “access to the mental space targeted by advertisers should be taxed,
in that at the present moment that space is being freely taken advantage of by advertisers with no
compensation paid to the members of the public who are thus being intruded upon. This kind of tax
would be a Pigovian tax in that it would act to reduce what is now increasingly seen as a public
nuisance. Efforts to that end are gathering more momentum, with Arkansas and Maine considering bills
to implement such a taxation. Florida enacted such a tax in 1987 but was forced to repeal it after six
months, as a result of a concerted effort by national commercial interests, which withdrew planned
conventions, causing major losses to the tourism industry, and cancelled advertising, causing a loss of
12 million dollars to the broadcast industry alone”.[118]
In the U. S., for example, advertising is tax deductible and suggestions for possible limits to the
advertising tax deduction are met with fierce opposition from the business sector, not to mention
suggestions for a special taxation. In other countries, taxation at least is taxed in the same manner
services are taxed and in some advertising is subject to special taxation although on a very low level. In
many cases the taxation refers especially to media with advertising (e. g. Austria, Italy, Greece,
Netherlands, Turkey, Estonia). Tax on advertising in European countries [119]:
• Belgium: Advertising or billboard tax (taxe d'affichage or aanplakkingstaks) on
public posters depending on size and kind of paper as well as on neon signs
• France: Tax on television commercials (taxe sur la publicité télévisée) based on the
cost of the advertising unit
• Italy: Municipal tax on acoustic and visual kinds of advertisements within the
municipality (imposta communale sulla publicità) and municipal tax on signs,
posters and other kinds of advertisements (diritti sulle pubbliche offisioni), the
tariffs of which are under the jurisdiction of the municipalities
• Netherlands: Advertising tax (reclamebelastingen) with varying tariffs on certain
advertising measures (excluding ads in newspapers and magazines) which can be
levied by municipalities depending on the kind of advertising (billboards, neon signs
etc.)
• Austria: Municipal announcement levies on announcemens through writing, pictures
or lights in public areas or publicly accessible areas with varying tariffs depending
on the fee, the surface or the duration of the advertising measure as well as
advertising tariffs on paid ads in printed media of usually 10% of the fee.
 • Sweden: Advertising tax (reklamskatt) on ads and other kinds of advertising
(billboards, film, television, advertising at fairs and exhibitions, flyers) in the range
of 4% for ads in newspapers and 11% in all other cases. In the case of flyers the
tariffs are based on the production costs, else on the fee
• Spain: Municipalities can tax advertising measures in their territory with a rather
unimportant taxes and fees of various kinds.
In his book “When Corporations Rule the World” U.S. author and globalization critic David Korten
even advocates a 50% tax on advertising to counter attack by what he calls "an active propaganda
machinery controlled by the world's largest corporations” which “constantly reassures us that
consumerism is the path to happiness, governmental restraint of market excess is the cause our distress,
and economic globalization is both a historical inevitability and a boon to the human species." [120]

[edit] Regulation
Main article: Advertising regulation

In the US many communities believe that many forms of outdoor advertising blight the public realm.[121]
As long ago as the 1960s in the US there were attempts to ban billboard advertising in the open
countryside[122]. Cities such as São Paulo have introduced an outright ban[123] with London also having
specific legislation to control unlawful displays.
There have been increasing efforts to protect the public interest by regulating the content and the
influence of advertising. Some examples are: the ban on television tobacco advertising imposed in many
countries, and the total ban of advertising to children under 12 imposed by the Swedish government in
1991. Though that regulation continues in effect for broadcasts originating within the country, it has
been weakened by the European Court of Justice, which had found that Sweden was obliged to accept
foreign programming, including those from neighboring countries or via satellite.
In Europe and elsewhere, there is a vigorous debate on whether (or how much) advertising to children
should be regulated. This debate was exacerbated by a report released by the Kaiser Family Foundation
in February 2004 which suggested that food advertising, such as that for fast foods, targeting children
was an important factor in the epidemic of childhood obesity in the United States.
In many countries - namely New Zealand, South Africa, Canada, and many European countries - the
advertising industry operates a system of self-regulation. Advertisers, advertising agencies and the
media agree on a code of advertising standards that they attempt to uphold. The general aim of such
codes is to ensure that any advertising is 'legal, decent, honest and truthful'. Some self-regulatory
organizations are funded by the industry, but remain independent, with the intent of upholding the
standards or codes like the Advertising Standards Authority in the UK.
In the UK most forms of outdoor advertising such as the display of billboards is regulated by the UK
Town and County Planning system. Currently the display of an advertisement without consent from the
Planning Authority is a criminal offense liable to a fine of £2,500 per offence. All of the major outdoor
billboard companies in the UK have convictions of this nature.
Naturally, many advertisers view governmental regulation or even self-regulation as intrusion of their
freedom of speech or a necessary evil. Therefore, they employ a wide-variety of linguistic devices to
bypass regulatory laws (e.g. printing English words in bold and French translations in fine print to deal
with the Article 12 of the 1994 Toubon Law limiting the use of English in French advertising).[124] The
advertisement of controversial products such as cigarettes and condoms is subject to government
regulation in many countries. For instance, the tobacco industry is required by law in most countries to
display warnings cautioning consumers about the health hazards of their products. Linguistic variation
is often used by advertisers as a creative device to reduce the impact of such requirements.
[edit] Future

[edit] Global advertising

Advertising has gone through five major stages of development: domestic, export, international, multi-
national, and global. For global advertisers, there are four, potentially competing, business objectives
that must be balanced when developing worldwide advertising: building a brand while speaking with
one voice, developing economies of scale in the creative process, maximising local effectiveness of ads,
and increasing the company’s speed of implementation. Born from the evolutionary stages of global
marketing are the three primary and fundamentally different approaches to the development of global
advertising executions: exporting executions, producing local executions, and importing ideas that
travel.[125]
Advertising research is key to determining the success of an ad in any country or region. The ability to
identify which elements and/or moments of an ad that contributes to its success is how economies of
scale are maximised. Once one knows what works in an ad, that idea or ideas can be imported by any
other market. Market research measures, such as Flow of Attention, Flow of Emotion and branding
moments provide insight into what is working in an ad in any country or region because the measures
are based on the visual, not verbal, elements of the ad.[126]
[edit] Trends

With the dawn of the Internet came many new advertising opportunities. Popup, Flash, banner,
Popunder, advergaming, and email advertisements (the last often being a form of spam) are now
commonplace.
The ability to record shows on digital video recorders (such as TiVo) allow users to record the programs
for later viewing, enabling them to fast forward through commercials. Additionally, as more seasons of
pre-recorded box sets are offered for sale of television programs; fewer people watch the shows on TV.
However, the fact that these sets are sold, means the company will receive additional profits from the
sales of these sets. To counter this effect, many advertisers have opted for product placement on TV
shows like Survivor.
Particularly since the rise of "entertaining" advertising, some people may like an advertisement enough
to wish to watch it later or show a friend. In general, the advertising community has not yet made this
easy, although some have used the Internet to widely distribute their ads to anyone willing to see or hear
them.
Another significant trend regarding future of advertising is the growing importance of the niche market
using niche or targeted ads. Also brought about by the Internet and the theory of The Long Tail,
advertisers will have an increasing ability to reach specific audiences. In the past, the most efficient way
to deliver a message was to blanket the largest mass market audience possible. However, usage
tracking, customer profiles and the growing popularity of niche content brought about by everything
from blogs to social networking sites, provide advertisers with audiences that are smaller but much
better defined, leading to ads that are more relevant to viewers and more effective for companies'
marketing products. Among others, Comcast Spotlight is one such advertiser employing this method in
their video on demand menus. These advertisements are targeted to a specific group and can be viewed
by anyone wishing to find out more about a particular business or practice at any time, right from their
home. This causes the viewer to become proactive and actually choose what advertisements they want
to view.[127]
In the realm of advertising agencies, continued industry diversification has seen observers note that “big
global clients don't need big global agencies any more”.[128] This trend is reflected by the growth of non-
traditional agencies in various global markets, such as Canadian business TAXI and SMART in
Australia and has been referred to as "a revolution in the ad world".[129]
In freelance advertising, companies hold public competitions to create ads for their product, the best one
of which is chosen for widespread distribution with a prize given to the winner(s). During the 2007
Super Bowl, PepsiCo held such a contest for the creation of a 30-second television ad for the Doritos
brand of chips, offering a cash prize to the winner. Chevrolet held a similar competition for their Tahoe
line of SUVs. This type of advertising, however, is still in its infancy. It may ultimately decrease the
importance of advertising agencies by creating a niche for independent freelancers.[citation needed]
advertising

[edit] See also

Publicity
From Wikipedia, the free encyclopedia
Jump to: navigation, search

Marketing

Key concepts

Product / Pricing / Promotion

Distribution / Service / Retail
Brand management
Account-based marketing
Marketing effectiveness
Market research
Marketing strategy
Marketing management
Market dominance

Promotional content

Advertising / Branding
Direct marketing / Personal Sales
Product placement / Public relations
Publicity / Sales promotion
Sex in advertising / Underwriting

Promotional media
 Printing / Publication / Broadcasting
Out-of-home / Internet marketing
Point of sale / Novelty items
Digital marketing / In-game
Word of mouth
This box: view • talk • edit

Wikibooks has a book on the topic of

Marketing

Look up publicity in Wiktionary, the free dictionary.

Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of
publicity include people (for example, politicians and performing artists), goods and services,
organizations of all kinds, and works of art or entertainment.
From a marketing perspective, publicity is one component of promotion. The other elements of the
promotional mix are advertising, sales promotion, and personal selling. Promotion is one component of
marketing.
But the publicist cannot wait around for the news to present opportunities. They must also try to create
their own news. Examples of this include:
• Contest
• Art exhibitions
• Event sponsorship
• Arrange a speech or talk
• Make an analysis or prediction
• Conduct a poll or survey
• Issue a report
• Take a stand on a controversial subject
• Arrange for a testimonial
• Announce an appointment
• Invent then present an award
• Stage a debate
• Organize a tour of your business or projects
• Issue a commendation
The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in between
news stories like on evening TV news casts). New technologies such as weblogs, web cameras, web
affiliates, and convergence (phone-camera posting of pictures and videos to websites) are changing the
cost-structure. The disadvantages are lack of control over how your releases will be used, and
frustration over the low percentage of releases that are taken up by the media.
Publicity draws on several key themes including birth, love, and death. These are of particular interest
because they are themes in human lives which feature heavily throughout life. In television serials
several couples have emerged during crucial ratings and important publicity times, as a way to make
constant headlines. Also known as a publicity stunt, the pairings may or may not be truthful.

[edit] Publicists
A publicist is a person whose job is to generate and manage publicity for a product, public figure,
especially a celebrity, or for a work such as a book or movie. Publicists usually work at large companies
handling multiple clients.

[edit] Effectiveness of publicity

The theory any press is good press has been coined to describe situations where bad behaviour by
people involved with an organization or brand has actually resulted in positive results, due to the fame
and press coverage accrued by such events.
One example would be the Australian Tourism Board's "So where the bloody hell are you?" advertising
campaign that was initially banned in the UK, but the amount of publicity this generated resulted in the
official website for the campaign being swamped with requests to see the banned ad. [1]
The popular sitcom, Married... with Children, achieved skyrocketing ratings after moralist Terry
Rakolta attempted to have it removed from the air.

Public relations
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For the Arrested Development episode, see Public Topics in journalism
Relations (Arrested Development episode).
Professional issues
Public relations (PR) is the practice of managing the flow of
information between an organization and its publics.[1] Public
relations - often referred to as PR - gains an organization or News • Reportage • Writing • Ethics •
individual exposure to their audiences using topics of public Objectivity • Values • Attribution •
interest and news items that do not require direct payment.[2] Defamation • Editorial independence •
Because public relations places exposure in credible third- Education • Other topics
party outlets, it offers a third-party legitimacy that advertising
does not have.[2] Common activities include speaking at Fields
conferences, working with the press, and employee
communication. Arts • Business •
PR can be used to build rapport with employees, customers, Entertainment • Environment •
[2]
investors, voters, or the general public. Almost any Fashion • Politics • Science •
organization that has a stake in how it is portrayed in the Sports • Tech • Trade •
public arena employs some level of public relations. A Traffic • Weather
number of specialties exist within the field of public relations,
such as Analyst Relations, Media Relations, Investor Genres
Relations or Labor Relations.

Advocacy journalism
Contents
Citizen journalism
[hide] Civic journalism
• 1 Definition Community journalism
Conspiracy journalism
• 2 The industry today Gonzo journalism
• 3 Methods, tools and tactics Investigative journalism
Literary journalism
○ 3.1 Publics targeting
Muckraking
○ 3.2 Lobby groups New journalism
Narrative journalism
○ 3.3 Spin
Visual journalism
 3.3.1 Spin doctor Watchdog journalism
○ 3.4 Meet and Greet
Social impact
○ 3.5 Other
• 4 Politics and civil society Fourth Estate
○ 4.1 Defining the opponent Fifth Estate
Freedom of the press
○ 4.2 Managing language Infotainment
○ 4.3 Conveying the message Media bias
Public relations
• 5 Front groups
Yellow journalism
• 6 References
News media
• 7 Notes
• 8 See also
Newspapers
• 9 Further reading Magazines
• 10 External links News agencies
Broadcast journalism
[edit] Definition
See more at History of public relations

The Public Relations Society of America (PRSA) claimed: "Public relations helps an organization and
its publics adapt mutually to each other."[3] According to the PRSA, the essential functions of public
relations include research, planning, communications dialogue and evaluation.[4]
Edward Louis Bernays, who is considered the founding father of modern public relations along with Ivy
Lee, in the early 1900s defined public relations as a management function which tabulates public
attitudes, defines the policies, procedures and interests of an organization. . . followed by executing a
program of action to earn public understanding and acceptance" (see history of public relations).
Today, "Public Relations is a set of management, supervisory, and technical functions that foster an
organization's ability to strategically listen to, appreciate, and respond to those persons whose mutually
beneficial relationships with the organization are necessary if it is to achieve its missions and values." [5]
Essentially it is a management function that focuses on two-way communication and fostering of
mutually beneficial relationships between an organization and its publics.
Building and managing relationships with those who influence an organization or individual’s important
audiences has a central role in doing public relations.[6]

[edit] The industry today

Advertising dollars in media products from corporations like News Corp., Dow Jones, and CMP are
under rapid decline in favor of direct advertising products offered by search engines and other tools. 11
Traditional media publications are laying off journalists, consolidating beat reporters, shrinking their
print editions, and many publications are shutting down entirely. [7]
Blogs have lower over-head costs than traditional media and are often said to provide better news
coverage and analysis.[8] Blogs are increasingly sprouting to replace traditional media with a more
sustainable low-cost business model and are gaining more of a following.
The advent of social media is the most pre-eminent trend in PR today.[9] It's important to note, while
social media is on the rise, traditional media is yet to be taken over by the trend as of January 29, 2009.
[10]

Social media releases, search engine optimization, content publishing, and the introduction of podcasts
and video are other burgeoning trends. [9]

[edit] Methods, tools and tactics

Public relations and publicity are not synonymous but many PR campaigns include provisions for
publicity. Publicity is the spreading of information to gain public awareness for a product, person,
service, cause or organization, and can be seen as a result of effective PR planning.
[edit] Publics targeting

A fundamental technique used in public relations is to identify the target audience, and to tailor every
message to appeal to that audience. It can be a general, nationwide or worldwide audience, but it is
more often a segment of a population. Marketers often refer to economy-driven "demographics," such
as "black males 18-49," but in public relations an audience is more fluid, being whoever someone wants
to reach. For example, recent political audiences include "soccer moms" and "NASCAR dads." There is
also a psychographic grouping based on fitness level, eating preferences, "adrenaline junkies,"etc...
In addition to audiences, there are usually stakeholders, literally people who have a "stake" in a given
issue. All audiences are stakeholders (or presumptive stakeholders), but not all stakeholders are
audiences. For example, a charity commissions a PR agency to create an advertising campaign to raise
money to find a cure for a disease. The charity and the people with the disease are stakeholders, but the
audience is anyone who is likely to donate money.
Sometimes the interests of differing audiences and stakeholders common to a PR effort necessitate the
creation of several distinct but still complementary messages. This is not always easy to do, and
sometimes – especially in politics – a spokesperson or client says something to one audience that angers
another audience or group of stakeholders.
[edit] Lobby groups

Lobby groups are established to influence government policy, corporate policy, or public opinion. An
example of this is the American Israel Public Affairs Committee, AIPAC, which influences American
foreign policy. Such groups claim to represent a particular interest and in fact are dedicated to doing so.
When a lobby group hides its true purpose and support base it is known as a front group.
[edit] Spin

In public relations, "spin" is sometimes a pejorative term signifying a heavily biased portrayal in one's
own favour of an event or situation. While traditional public relations may also rely on creative
presentation of the facts, "spin" often, though not always, implies disingenuous, deceptive and/or highly
manipulative tactics. Politicians are often accused of spin by commentators and political opponents,
when they produce a counter argument or position.
The techniques of "spin"s include selectively presenting facts and quotes that support one's position
(cherry picking), the so-called "non-denial denial," phrasing in a way that assumes unproven truths,
euphemisms for drawing attention away from items considered distasteful, and ambiguity in public
statements. Another spin technique involves careful choice of timing in the release of certain news so it
can take advantage of prominent events in the news. A famous reference to this practice occurred when
British Government press officer Jo Moore used the phrase It's now a very good day to get out anything
we want to bury, (widely paraphrased or misquoted as "It's a good day to bury bad news"), in an email
sent on September 11, 2001. The furor caused when this email was reported in the press eventually
caused her to resign.
[edit] Spin doctor
Skilled practitioners of spin are sometimes called "spin doctors," though probably not to their faces
unless it is said facetiously. It is the PR equivalent of calling a writer a "hack." Perhaps the most well-
known person in the UK often described as a "spin doctor" is Alastair Campbell, who was involved with
Tony Blair's public relations between 1994 and 2003, and also played a controversial role as press
relations officer to the British and Irish Lions rugby union side during their 2005 tour of New Zealand.
State-run media in many countries also engage in spin by selectively allowing news stories that are
favorable to the government while censoring anything that could be considered critical. They may also
use propaganda to indoctrinate or actively influence citizens' opinions. Privately run media also uses the
same techniques of 'issue' versus 'non-issue' to spin its particular political viewpoints.
[edit] Meet and Greet

Many businesses and organizations will use a Meet and Greet as a method of introducing two or more
parties to each other in a comfortable setting. These will generally involve some sort of incentive,
usually food catered from restaurants, to encourage employees or members to participate.
There are opposing schools of thought as to how the specific mechanics of a Meet and Greet operate.
The Gardiner school of thought states that unless specified as an informal event, all parties should arrive
promptly at the time at which the event is scheduled to start. The Kolanowski school of thought,
however, states that parties may arrive at any time after the event begins, in order to provide a more
relaxed interaction environment.
[edit] Other
• Publicity events, pseudo-events, photo ops or publicity stunts
• The talk show circuit. A PR spokesperson (or his/her client) "does the circuit" by
being interviewed on television and radio talk shows with audiences that the client
wishes to reach.
• Books and other writings
• Blogs
• After a PR practitioner has been working in the field for a while, he or she
accumulates a list of contacts in the media and elsewhere in the public affairs
sphere. This "Rolodex" becomes a prized asset, and job announcements
sometimes even ask for candidates with an existing Rolodex, especially those in the
media relations area of PR.
• Direct communication (carrying messages directly to constituents, rather than
through the mass media) with, e.g., newsletters – in print and e-letters.
• Collateral literature, traditionally in print and now predominantly as web sites.
• Speeches to constituent groups and professional organizations; receptions;
seminars, and other events; personal appearances.
• The slang term for a PR practitioner or publicist is a "flak" (sometimes spelled
"flack").
• A DESK VISIT is where the PR person literally takes their product to the desk of the
journalist in order to show them what they are promoting.

[edit] Politics and civil society

[edit] Defining the opponent

A tactic used in political campaigns is known as "defining one's opponent." Opponents can be
candidates, organizations and other groups of people.
In the 2004 US presidential campaign, Howard Dean defined John Kerry as a "flip-flopper," which were
widely reported and repeated by the media, particularly the conservative media. Similarly, George H.W.
Bush characterized Michael Dukakis as weak on crime (the Willie Horton ad) and as hopelessly liberal
("a card-carrying member of the ACLU"). In 1996, President Bill Clinton seized upon opponent Bob
Dole's promise to take America back to a simpler time, promising in contrast to "build a bridge to the
21st century." This painted Dole as a person who was somehow opposed to progress.
In the debate over abortion, self-titled pro-choice groups, by virtue of their name, defined their
opponents as "anti-choice", while self-titled pro-life groups refer to their opponents as "pro-abortion" or
"anti-life".
[edit] Managing language

If a politician or organization can use an apt phrase in relation to an issue, such as in interviews or news
releases, the news media will often repeat it verbatim, without questioning the aptness of the phrase.
This perpetuates both the message and whatever preconceptions might underlie it. Often, something
innocuous sounding can stand in for something greater; a "culture of life" sounds like general goodwill
to most people, but will evoke opposition to abortion for many pro-life advocates. The phrase "States'
rights" was used as a code for anti-civil rights legislation in the United States in the 1960s, and,
allegedly, the 70s, and 80s.
[edit] Conveying the message

The method of communication can be as important as a message. Direct mail, robocalling, advertising
and public speaking are used depending upon the intended audience and the message that is conveyed.
The country of Israel has recently employed a series of Web 2.0 initiatives, including a blog,[11]
MySpace page,[12] YouTube channel,[13] Facebook page[14] and a political blog to reach different
audiences.[15] The Israeli Ministry of Foreign Affairs started the country's video blog as well as its
political blog.[15] The Foreign Ministry held the first microblogging press conference via Twitter about
its war with Hamas, with Consul David Saranga answering live questions from a worldwide public in
common text-messaging abbreviations.[16] The questions and answers were later posted on
Israelpolitik.org, the country's official political blog.[17]

[edit] Front groups

One of the most controversial practices in public relations is the use of front groups—organizations that
purport to serve a public cause while actually serving the interests of a client whose sponsorship may be
obscured or concealed. Critics of the public relations industry, such as PR Watch, have contended that
Public Relations involves a "multi-billion dollar propaganda-for-hire industry" that "concoct[s] and
spin[s] the news, organize[s] phoney 'grassroots' front groups, sp[ies] on citizens, and conspire[s] with
lobbyists and politicians to thwart democracy." [1].
Instances of the use of front groups as a PR technique have been documented in many industries. Coal
mining corporations have created environmental groups that contend that increased CO2 emissions and
global warming will contribute to plant growth and will be beneficial, trade groups for bars have created
and funded citizens' groups to attack anti-alcohol groups, tobacco companies have created and funded
citizens' groups to advocate for tort reform and to attack personal injury lawyers, while trial lawyers
have created "consumer advocacy" front groups to oppose tort reform.[2][3][
Sales
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view of the subject. Please improve this article or discuss the issue on the talk
page.

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"Salesman" redirects here. For the 1969 American documentary film, see Salesman
(film).

A sale is the pinnacle activity involved in selling products or services in return for money or other
compensation. It is an act of completion of a commercial activity.[1]
A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an
acquisition or appropriation or request followed by the passing of title (property or ownership) in the
item and the application and due settlement of a price, the obligation for which arises due to the seller's
requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim
upon the item. The purchaser, though a party to the sale, does not execute the sale, only the seller does
that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment.
If the seller completes the first two above stages (consent and passing ownership) of the sale prior to
settlement of the price the sale is still valid and gives rise to an obligation to pay.

Contents
[hide]
• 1 Sales techniques
• 2 Sales agents
• 3 The sales and marketing relationship
○ 3.1 Marketing potentially negates need for sales
• 4 Sales and marketing alignment and integration
• 5 Scoring Sales
• 6 See also
• 7 Notes and references
• 8 External links
[edit] Sales techniques

A beach salesman selling necklaces

The sale can be made through:[2]

• Direct sales, involving person to person contact
○ Buying Facilitation Method
• Pro forma sales
• Agency-based
○ Sales agents (real estate, manufacturing)
○ Sales outsourcing through direct branded representation
○ Transaction sales
○ Consultative sales
○ Complex sales
○ Consignment
○ Telemarketing or telesales
○ Retail or consumer
• Traveling salesman
○ Door-to-door
○ To tourists on crowded beach
• Request for proposal – An invitation for suppliers, through a bidding process, to
submit a proposal on a specific product or service. An RFP is usually part of a
complex sales process, also known as enterprise sales.
• Business-to-business – Business-to-business sales are much more relationship
based owing to the lack of emotional attachment to the products in question.
Industrial/Professional Sales is selling from one business to another
• Electronic
○ Web – Business-to-business and business-to-consumer
○ Electronic Data Interchange (EDI) – A set of standard for structuring
information to be electronically exchanged between and within businesses
• Indirect, human-mediated but with indirect contact
○ Mail-order
• Sales Methods:
 ○ Selling technique
○ SPIN Selling
○ Consultative selling
○ Solution selling
○ Conceptual Selling
○ Strategic Selling
○ Sales Negotiation
○ Reverse Selling
○ Paint-the-Picture
○ Large Account Management Process

[edit] Sales agents

Agents in the sales process can be defined as representing either side of the sales process for example:
Sales broker or Seller agency or seller agent

This is a traditional role where the salesman represents a person or company on

the selling end of the deal.[3]

Buyers broker or Buyer brokerage

This is where the salesman represents the consumer making the purchase. This is
most often applied in large transactions.

Disclosed dual agent

This is where the salesman represents both parties in the sale and acts as a
mediator for the transaction. The role of the salesman here is to over see that both
parties receive an honest and fair deal, and is responsible to both.

Transaction broker

This is where the salesperson doesn't represent either party, but handles the
transaction only. This is where the seller owes no responsibility to either party
getting a fair or honest deal, just that all of the papers are handled properly.

Sales Outsourcing

This is direct branded representation where the sales reps are recruited, hired, and
managed by an external entity but hold quotas, represent themselves as the brand
of the client, and report all activities (through their own sales management
channels) back to the client. It is akin to a virtual extension of a sales force. (see
Sales Outsourcing entry)

Sales Managers

It is the goal of a qualified and talented sales manager to implement various sales
strategies and management techniques in order to facilitate improved profits and
 increased sales volume. They are also responsible for coordinating the sales and
marketing department as well as oversight concerning the fair and honest
execution of the sales process by his agents.[4]

Salesmen

The primary function of professional sales is to generate and close leads, educate
prospects, fill needs and satisfy wants of consumers appropriately, and therefore
turn prospective customers into actual ones. The successful questioning to
understand a customer's goal and requirements relevant to the product, the further
creation of a valuable solution by communicating the necessary information that
encourages a buyer to achieve their goal at an economic cost is the responsibility
of the salesperson or the sales engine (e.g. internet, vending machine etc). A
good salesman should never miss sell or over evaluate the customers
requirements. A great salesman will never UNDER evaluate or under sell his

customer, he allow the customer to make the decision he never pre-qualify a sales lead.

[edit] The sales and marketing relationship

Marketing and sales are very different, but have the same goal. Marketing improves the selling
environment and plays a very important role in sales. If the marketing department generates a potential
customers list, it can be beneficial for sales. The marketing department's goal is to increase the number
of interactions between potential customers and the sales team using promotional techniques such as
advertising, sales promotion, publicity, and public relations, creating new sales channels, or creating
new products (new product development), among other things.
The relatively new field of Sales process engineering views "sales" as the output of a larger system, not
just that of one department. The larger system includes many functional areas within an organization.
From this perspective, sales and marketing (among others, such as customer service) are labels for a
number of processes whose inputs and outputs supply one another to varying degrees. Considered in
this way, to improve the "output" (namely, sales) the broader sales process needs to be studied and
improved as would any system, since the component functional areas interact and are interdependent[5].
In most large corporations, the marketing department is structured in a similar fashion to the sales
department[citation needed] and the managers of these teams must coordinate efforts in order to drive profits
and business success. For example, an "inbound" focused campaign seeks to drive more customers
"through the door" giving the sales department a better chance of selling their product to the consumer.
A good marketing program would address any potential downsides as well.
The Sales department's goal would be to improve the interaction between the customer and the sales
facility or mechanism (example, web site) and/or salesperson. Sales management would break down the
selling process and then increase the effectiveness of the discreet processes as well as the interaction
between processes. For example, in many out-bound sales environments, the typical process is out
bound calling, the sales pitch, handling objections, opportunity identification, and the close. Each step
of the process has sales-related issues, skills, and training needs as well as marketing solutions to
improve each discrete step, as well as the whole process.
One further common complication of marketing involves the inability to measure results for a great deal
of marketing initiatives. In essence, many marketing and advertising executives often lose sight of the
objective of sales/revenue/profit, as they focus on establishing a creative/innovative program, without
concern for the top or bottom lines. Such is a fundamental pitfall of marketing for marketing's sake.
Many companies find it challenging to get marketing and sales on the same page. Both departments are
different in nature, but handle very similar concepts and have to work together for sales to be
successful. Building a good relationship between the two that encourages communication can be the key
to success even in a down economy.[6]
[edit] Marketing potentially negates need for sales

Some sales authors and consultants contend that an expertly planned and executed marketing strategy
may negate the need for outside sales entirely. They suggest that by effectively bringing more customers
"through the door" and enticing them to contact you, sales organizations can dramatically improve their
results, efficiency, profitability, and allow salespeople to provide a drastically higher level of customer
service and satisfaction, instead of spending the majority of their working hours searching for someone
to sell to. [7]
While this theory is present in a few marketing consulting companies the practical and realistic
application of this principle has not been widely proven in the market and sales forces worldwide
continue to be responsible for developing business as well as closing it.
Some marketing consulting firms postulate that each selling opportunity at each enterprise lies on a
continuum of numbers of people involved, necessary degree of face-to-face interaction, overhead, and
through-put time, to name a few dimensions. The number of people involved in actual face-to-face
selling at, say, a clothing store is probably vastly different than at an on-line book-seller.

[edit] Sales and marketing alignment and integration

Another key area of conversation that has arisen is the need for alignment and integration between
corporate sales and marketing functions. According to a report from the Chief Marketing Officer
(CMO) Council, only 40 percent of companies have formal programs, systems or processes in place to
align and integration between the two critical functions. Traditionally, these two functions, as
referenced above, has been largely segmented and left in siloed areas of tactical responsibility. In Glen
Petersen’s book, “The Profit Maximization Paradox,” the changes in the competitive landscape between
the 1950s and today are so dramatic that the complexity of choice, price and opportunities for the
customer forced this seemingly simple and integrated relationship between sales and marketing to
change forever. Petersen goes on to highlight that salespeople are spending approximately 40 percent of
their time preparing customer-facing deliverables while leveraging less than 50 percent of the materials
created by marketing, adding to the perception that marketing is out of touch with the customer, and
sales is resistant to messaging and strategy. Organizations like The Coalition to Leverage and Optimize
Sales Effectiveness (CLOSE) "CLOSE". http://www.closebiz.org. have emerged as a facilitator to
mend the relationship between sales and marketing. Internet applications, commonly referred to as Sales
2.0 tools, have also increasingly been created to help align the goals and responsibilities of marketing
and sales departments.[8]

[edit] Scoring Sales

Every good sales team needs a way to score how well their deals have performed. Common ways of
scoring include:
• Telemarketing
• CRM Software
• Funnel Scorecard
• Sales Lead Scoring
Marketing
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Please improve this article if you can. (May 2008)

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2008)

For the magazine, see Marketing (magazine).

Marketing

Key concepts

Product / Pricing / Promotion

Distribution / Service / Retail
Brand management
Account-based marketing
Marketing effectiveness
Market research
Marketing strategy
 Marketing management
Market dominance

Promotional content

Advertising / Branding
Direct marketing / Personal Sales
Product placement / Public relations
Publicity / Sales promotion
Sex in advertising / Underwriting

Promotional media

Printing / Publication / Broadcasting

Out-of-home / Internet marketing
Point of sale / Novelty items
Digital marketing / In-game
Word of mouth
This box: view • talk • edit

Marketing is defined by the American Marketing Association as the activity, set of institutions, and
processes for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large. [1] The term developed from the original meaning
which referred literally to going to market, as in shopping, or going to a market to sell goods or services.
Marketing practice tends to be seen as a creative industry, which includes advertising, distribution and
selling. It is also concerned with anticipating the customers' future needs and wants, which are often
discovered through market research. Seen from a systems point of view, sales process engineering
views marketing as a set of processes that are interconnected and interdependent with other functions[2],
whose methods can be improved using a variety of relatively new approaches.
Marketing is influenced by many of the social sciences, particularly psychology, sociology, and
economics. Anthropology and neuroscience are also small but growing influences. Market research
underpins these activities. Through advertising, it is also related to many of the creative arts. The
marketing literature is also infamous for re-inventing itself and its vocabulary according to the times
and the culture.

Contents
[hide]
• 1 Four Ps
• 2 Product
○ 2.1 Branding
• 3 Marketing communications
○ 3.1 Advertising
 3.1.1 Functions and advantages of successful advertising
 3.1.2 Objectives
  3.1.3 Requirements of a good advertisement
 3.1.4 Eight steps in an advertising campaign
○ 3.2 Personal sales
○ 3.3 Sales promotion
○ 3.4 Marketing Public Relations (MPR)
• 4 Customer focus
• 5 Product focus
• 6 Areas of marketing specialization
• 7 See also
• 8 Related lists
• 9 References
• 10 Further reading
• 11 External links

[edit] Four Ps
Main article: Marketing mix

In the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company
performance actions that can influence the consumer decision to purchase goods or services. Borden
suggested that all those actions of the company represented a “Marketing Mix”. Professor E. Jerome
McCarthy, also at the Harvard Business School in the early 1960s, suggested that the Marketing Mix
contained 4 elements: product, price, place and promotion.
• Product: The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs and wants.
The scope of a product generally includes supporting elements such as warranties,
guarantees, and support.
• Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary; it can simply be what is exchanged for
the product or services, e.g. time, energy, or attention. Methods of setting prices
optimally are in the domain of pricing science.
• Placement (or distribution): refers to how the product gets to the customer; for
example, point-of-sale placement or retailing. This third P has also sometimes been
called Place, referring to the channel by which a product or service is sold (e.g.
online vs. retail), which geographic region or industry, to which segment (young
adults, families, business people), etc. also referring to how the environment in
which the product is sold in can affect sales.
• Promotion: This includes advertising, sales promotion, publicity, and personal
selling, branding and refers to the various methods of promoting the product,
brand, or company.
These four elements are often referred to as the marketing mix,[3] which a marketer can use to craft a
marketing plan.
The four Ps model is most useful when marketing low value consumer products. Industrial products,
services, high value consumer products require adjustments to this model. Services marketing must
account for the unique nature of services.
Industrial or B2B marketing must account for the long term contractual agreements that are typical in
supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a
long term relationship perspective rather than individual transactions.
As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of
the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the inside–out view
(looking from the company outwards), whereas the essence of marketing should be the outside–in
approach".

[edit] Product
Main article: New Product Development

[edit] Branding
Main article: Brand

A brand is a name, term, design, symbol, or other feature that distinguishes products and services from
competitive offerings. A brand represents the consumers' experience with an organization, product, or
service. A brand is more than a name ,design or symble. Brand reflects personality of the company
which is organizational culture.
A brand has also been defined as an identifiable entity that makes a specific value based on promises
made and kept either actively or passively.
Branding means creating reference of certain products in mind.
Co-branding involves marketing activity involving two or more products.

[edit] Marketing communications

Marketing communications breaks down the strategies involved with marketing messages into
categories based on the goals of each message. There are distinct stages in converting strangers to
customers that govern the communication medium that should be used.
[edit] Advertising
• Paid form of public presentation and expressive promotion of ideas
• Aimed at masses
• Manufacturer may determine what goes into advertisement
• Pervasive and impersonal medium
[edit] Functions and advantages of successful advertising
• Task of the salesman made easier
Maximize sales
Publicity
Brand building
Create awareness
Persuade buyers
Introduction of new product
Enable market leadership
To face competition
To inform changes
To counteract to competitors advertisement
 To enhance goodwill
[edit] Objectives
• Maintain demand for well-known goods
• Introduce new and unknown goods
• Increase demand for well-known goods/products/services
• Create Awareness
[edit] Requirements of a good advertisement
• Attract attention (awareness)
• Stimulate interest
• Create a desire
• Bring about action
[edit] Eight steps in an advertising campaign
• Market research
• Setting out aims
• Budgeting
• Choice of media (television, newspaper/magazines, radio, web, outdoor)
• Choice of actors and players (New Trend)
• Design and wording
• Co-ordination
• Test results

[edit] Personal sales

Oral presentation given by a salesperson who approaches individuals or a group of potential customers:
• Live, interactive relationship
• Personal interest
• Attention and response
• Interesting presentation
• Clear and thorough.

[edit] Sales promotion

Short-term incentives to encourage buying of products:

• Instant appeal
• Anxiety to sell
An example is coupons or a sale. People are given an incentive to buy, but this does not build customer
loyalty or encourage future repeat buys. A major drawback of sales promotion is that it is easily copied
by competition. It cannot be used as a sustainable source of differentiation.
[edit] Marketing Public Relations (MPR)
• Stimulation of demand through press release giving a favourable report to a
product
• Higher degree of credibility
 • Effectively news
• Boosts enterprise's image

[edit] Customer focus

Many companies today have a customer focus (or market orientation). This implies that the company
focuses its activities and products on consumer demands. Generally there are three ways of doing this:
the customer-driven approach, the sense of identifying market changes and the product innovation
approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions.
No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering,
including the nature of the product itself, is driven by the needs of potential consumers. The starting
point is always the consumer. The rationale for this approach is that there is no point spending R&D
funds developing products that people will not buy. History attests to many products that were
commercial failures in spite of being technological breakthroughs.[4]
A formal approach to this customer-focused marketing is known as SIVA[5] (Solution, Information,
Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus.
The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply
side model (product, price, place, promotion) of marketing management.

Product → Solution

Promotio Informati
→
n on

Price → Value

Placeme
→ Access
nt

The four elements of the SIVA model are:

1. Solution: How appropriate is the solution to the customer's problem/need?
2. Information: Does the customer know about the solution? If so, how and from whom
do they know enough to let them make a buying decision?
3. Value: Does the customer know the value of the transaction, what it will cost, what
are the benefits, what might they have to sacrifice, what will be their reward?
4. Access: Where can the customer find the solution? How easily/locally/remotely can
they buy it and take delivery?
This model was proposed by Chekitan Dev and Don Schultz in the Marketing Management Journal of
the American Marketing Association, and presented by them in Market Leader, the journal of the
Marketing Society in the UK.
The model focuses heavily on the customer and how they view the transaction.
[edit] Product focus
In a product innovation approach, the company pursues product innovation, then tries to develop a
market for the product. Product innovation drives the process and marketing research is conducted
primarily to ensure that profitable market segment(s) exist for the innovation. The rationale is that
customers may not know what options will be available to them in the future so we should not expect
them to tell us what they will buy in the future. However, marketers can aggressively over-pursue
product innovation and try to overcapitalize on a niche. When pursuing a product innovation approach,
marketers must ensure that they have a varied and multi-tiered approach to product innovation. It is
claimed that if Thomas Edison depended on marketing research he would have produced larger candles
rather than inventing light bulbs. Many firms, such as research and development focused companies,
successfully focus on product innovation. Many purists doubt whether this is really a form of marketing
orientation at all, because of the ex post status of consumer research. Some even question whether it is
marketing.
• An emerging area of study and practice concerns internal marketing, or how
employees are trained and managed to deliver the brand in a way that positively
impacts the acquisition and retention of customers (employer branding).
• Diffusion of innovations research explores how and why people adopt new
products, services and ideas.
• A relatively new form of marketing uses the Internet and is called Internet
marketing or more generally e-marketing, affiliate marketing, desktop
advertising or online marketing. It tries to perfect the segmentation strategy
used in traditional marketing. It targets its audience more precisely, and is
sometimes called personalized marketing or one-to-one marketing.
• With consumers' eroding attention span and willingness to give time to advertising
messages, marketers are turning to forms of permission marketing such as
branded content, custom media and reality marketing.
• The use of herd behavior in marketing.
The Economist reported a recent conference in Rome on the subject of the
simulation of adaptive human behavior.[6] Mechanisms to increase impulse buying
and get people "to buy more by playing on the herd instinct" were shared. The
basic idea is that people will buy more of products that are seen to be popular, and
several feedback mechanisms to get product popularity information to consumers
are mentioned, including smart-cart technology and the use of Radio Frequency
Identification Tag technology. A "swarm-moves" model was introduced by a
Princeton researcher, which is appealing to supermarkets because it can "increase
sales without the need to give people discounts." Large retailers Wal-Mart in the
United States and Tesco in Britain plan to test the technology in spring 2007 .
Marketing is also used to promote businesses products and is a great way to promote the business.
Other recent studies on the "power of social influence" include an "artificial music
market in which some 14,000 people downloaded previously unknown songs"
(Columbia University, New York); a Japanese chain of convenience stores which
orders its products based on "sales data from department stores and research
companies;" a Massachusetts company exploiting knowledge of social networking
to improve sales; and online retailers who are increasingly informing consumers
 about "which products are popular with like-minded consumers" (e.g., Amazon,
eBay).

[edit] Areas of marketing specialization

• agricultural marketing
• advertising and branding
• communications
• database marketing
• professional selling
• direct marketing
• event organization
• experiential marketing
• field marketing
• global marketing
• guerilla marketing
• international marketing
• internet marketing
• industrial marketing
• market research
• marketing strategy
• marketing plan
• political marketing
• product marketing
• proximity marketing
• public marketing
• public relations
• retailing
• search engine marketing
• social media marketing
• strategic management
• wholesale marketing

[edit] See also

• Advertising Research
• AIDA
• Article marketing
• Borderless Selling
• Brand
• Fear, uncertainty, doubt
• Integrated Marketing
Communications
• LGBT marketing
• Macromarketing
• Product marketing
• Reality marketing
• Referral marketing
• Return on
marketing
 • Brand orientation • Marketeer investment
• Branded content • Marketing collateral • Sales techniques
• Cause marketing • Marketing co-operation • Services
• Customer • Marketing Mix • Sex in advertising
relationship • Marketing effectiveness • Senior media
management creative
• Merchandising
• Digital marketing • Technical
• Mobile Marketing
• Demand generation marketing
• Multichannel Marketing
• Early adopter • Trade marketing
• Predictive analytics
• Engagement • Value
marketing
• Evangelism
marketing

[edit] Related lists

See List of marketing topics for an extensive list of the marketing articles.

• List of management topics

• List of human resource management topics
• List of economics topics
• List of finance topics
• List of accounting topics
• List of information technology management topics
• List of production topics
• List of business law topics
• List of international trade topics
• List of business ethics, political economy, and philosophy of business topics
• List of business theorists

Direct marketing
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For distribution and retail sales of comic books, see direct market.

This article's external links may not follow Wikipedia's content policies or
guidelines. Please improve this article by removing excessive or inappropriate
external links.

It has been suggested that this article or section be merged with Leaflet
distribution. (Discuss)

Marketing

Key concepts

Product / Pricing / Promotion

Distribution / Service / Retail
Brand management
Account-based marketing
Marketing effectiveness
Market research
Marketing strategy
Marketing management
Market dominance

Promotional content

Advertising / Branding
Direct marketing / Personal Sales
Product placement / Public relations
Publicity / Sales promotion
Sex in advertising / Underwriting

Promotional media

Printing / Publication / Broadcasting

Out-of-home / Internet marketing
Point of sale / Novelty items
Digital marketing / In-game
Word of mouth
This box: view • talk • edit
 Wikibooks has a book on the topic of
Marketing

Direct marketing is a sub-discipline and type of marketing. There are two main definitional
characteristics which distinguish it from other types of marketing. The first is that it attempts to send its
messages directly to consumers, without the use of intervening media. This involves commercial
communication (direct mail, e-mail, telemarketing) with consumers or businesses, usually unsolicited.
The second characteristic is that it is focused on driving purchases that can be attributed to a specific
"call-to-action." This aspect of direct marketing involves an emphasis on trackable, measurable positive
(but not negative) responses from consumers (known simply as "response" in the industry) regardless of
medium.
If the advertisement asks the prospect to take a specific action, for instance call a free phone number or
visit a website, then the effort is considered to be direct response advertising.

Contents
[hide]
• 1 History
• 2 Benefits and drawbacks
• 3 Channels
○ 3.1 Direct mail
○ 3.2 Telemarketing
○ 3.3 Email Marketing
○ 3.4 Door to Door Leaflet Marketing
○ 3.5 Broadcast faxing
○ 3.6 Voicemail Marketing
○ 3.7 Couponing
○ 3.8 Direct response television marketing
○ 3.9 Direct selling
○ 3.10 Integrated Campaigns
• 4 See also
• 5 References
• 6 External links

[edit] History
The term direct marketing is believed to have been first used in 1961 in a speech by Lester Wunderman,
who pioneered direct marketing techniques with brands such as American Express and Columbia
Records.[citation needed] The term junk mail, referring to unsolicited commercial ads delivered via post office
or directly deposited in consumers' mail boxes, can be traced back to 1954.[1] The term spam, meaning
"unsolicited commercial email", can be traced back to March 31, 1993,[2] although in its first few
months it merely referred to inadvertently posting a message so many times on UseNet that the
repetitions effectively drowned out the normal flow of conversation.
Although Wunderman may have been the first to use the term direct marketing, the practice of mail
order selling (direct marketing via mail) essentially began in the U.S. upon invention of the typewriter
in 1867.[citation needed]
The first modern mail-order catalog was produced by Aaron Montgomery Ward in 1872.[citation needed] The
Direct Mail Advertising Association, predecessor of the present-day Direct Marketing Association, was
first established in 1917.[citation needed] Third class bulk mail postage rates were established in 1928.[citation
needed]

Direct marketing's history in Europe can be traced to the 15th century. Upon Gutenberg's invention of
movable type, the first trade catalogs from printer-publishers appeared sometime around 1450.[citation needed]

[edit] Benefits and drawbacks

Direct marketing is attractive to many marketers, because in many cases its positive effect (but not
negative results) can be measured directly. For example, if a marketer sends out one million
solicitations by mail, and ten thousand customers can be tracked as having responded to the promotion,
the marketer can say with some confidence that the campaign led directly to the responses. The number
of recipients who are offended by the junk mail/spam, however, is not easily measured. By contrast,
measurement of other media must often be indirect, since there is no direct response from a consumer.
Measurement of results, a fundamental element in successful direct marketing, is explored in greater
detail elsewhere in this article. Yet since the start of the Internet-age the challenges of Chief Marketing
Executives (CMOs) are tracking direct marketing responses and measuring results.[citation needed]
While many marketers like this form of marketing, some direct marketing efforts using particular media
have been criticized for generating unwanted solicitations. For example, direct mail that is irrelevant to
the recipient is considered junk mail, and unwanted email messages are considered spam. Some
consumers are demanding an end to direct marketing for privacy and environmental reasons,[citation needed]
which direct marketers are able to provide by using "opt out" lists, variable printing and more targeted
mailing lists.

[edit] Channels
Some direct marketers also use media such as door hangers, package inserts, magazines, newspapers,
radio, television, email, internet banner ads, digital campaigns, pay-per-click ads, billboards, transit ads.
And according to Ad Age, "In 2005, U.S. agencies generated more revenue from marketing services
(which include direct marketing) than from traditional advertising and media."[citation needed]
[edit] Direct mail
Main article: Advertising mail

See also: Direct mail fundraising

The most common form of direct marketing is direct mail,[citation needed] sometimes called junk mail, used
by advertisers who send paper mail to all postal customers in an area or to all customers on a list.
Typical junkmail.

Any low-budget medium that can be used to deliver a communication to a customer can be employed in
direct marketing. Probably the most commonly used medium for direct marketing is mail, in which
marketing communications are sent to customers using the postal service. The term direct mail is used
in the direct marketing industry to refer to communication deliveries by the Post Office, which may also
be referred to as "junk mail" or "admail" and may involve bulk mail.
Junk mail includes advertising circulars, catalogs, free trial CDs, pre-approved credit card applications,
and other unsolicited merchandising invitations delivered by mail or to homes and businesses, or
delivered to consumers' mailboxes by delivery services other than the Post Office. Bulk mailings are a
particularly popular method of promotion for businesses operating in the financial services, home
computer, and travel and tourism industries.
In many developed countries, direct mail represents such a significant amount of the total volume of
mail that special rate classes have been established. In the United States and United Kingdom, for
example, there are bulk mail rates that enable marketers to send mail at rates that are substantially lower
than regular first-class rates. In order to qualify for these rates, marketers must format and sort the mail
in particular ways - which reduces the handling (and therefore costs) required by the postal service.
Advertisers often refine direct mail practices into targeted mailing, in which mail is sent out following
database analysis to select recipients considered most likely to respond positively. For example a person
who has demonstrated an interest in golf may receive direct mail for golf related products or perhaps for
goods and services that are appropriate for golfers. This use of database analysis is a type of database
marketing. The United States Postal Service calls this form of mail "advertising mail" (admail for
short).
[edit] Telemarketing

The second most common form of direct marketing is telemarketing,[citation needed] in which marketers
contact consumers by phone. The unpopularity of cold call telemarketing (in which the consumer does
not expect or invite the sales call) has led some US states and the US federal government to create "no-
call lists" and legislation including heavy fines. This process may be outsourced to specialist call
centres.
In the US, a national do-not-call list went into effect on October 1, 2003. Under the law, it is illegal for
telemarketers to call anyone who has registered themselves on the list. After the list had operated for
one year, over 62 million people had signed up.[3] The telemarketing industry opposed the creation of
the list, but most telemarketers have complied with the law and refrained from calling people who are
on the list.[citation needed]
Canada has passed legislation to create a similar Do Not Call List. In other countries it is voluntary,
such as the New Zealand Name Removal Service.
[edit] Email Marketing

Email Marketing may have passed telemarketing in frequency at this point,[citation needed] and is a third type
of direct marketing. A major concern is spam, which actually predates legitimate email marketing. As a
result of the proliferation of mass spamming, ISPs and email service providers have developed
increasingly effective E-Mail Filtering programs. These filters can interfere with the delivery of email
marketing campaigns, even if the person has subscribed to receive them,[4] as legitimate email marketing
can possess the same hallmarks as spam.
[edit] Door to Door Leaflet Marketing

Leaflet Distribution services are used extensively by the fast food industries, and many other business
focussing on a local catchment Business to consumer business model, similar to direct mail marketing,
this method is targeted purely by area, and costs a fraction of the amount of a mailshot due to not having
to purchase stamps, envelopes or having to buy address lists and the names of home occupants.
[edit] Broadcast faxing

A fourth type of direct marketing, broadcast faxing, is now less common than the other forms.[citation needed]
This is partly due to laws in the United States and elsewhere which make it illegal.[citation needed]
[edit] Voicemail Marketing

A fifth type of direct marketing has emerged out of the market prevalence of personal voice mailboxes,
and business voicemail systems. Due to the ubiquity of email marketing, and the expense of direct mail
and telemarketing, voicemail marketing presented a cost effective means by which to reach people with
the warmth of a human voice.
Abuse of consumer marketing applications of voicemail marketing resulted in an abundance of "voice-
spam", and prompted many jurisdictions to pass laws regulating consumer voicemail marketing.
More recently, businesses have utilized guided voicemail (an application where pre-recorded voicemails
are guided by live callers) to accomplish personalized business-to-business marketing formerly reserved
for telemarketing. Because guided voicemail is used to contact only businesses, it is exempt from Do
Not Call regulations in place for other forms of voicemail marketing.
[edit] Couponing

Couponing is used in print media to elicit a response from the reader. An example is a coupon which the
reader cuts out and presents to a super-store check-out counter to avail of a discount. Coupons in
newspapers and magazines cannot be considered direct marketing, since the marketer incurs the cost of
supporting a third-party medium (the newspaper or magazine); direct marketing aims to circumvent that
balance, paring the costs down to solely delivering their unsolicited sales message to the consumer,
without supporting the newspaper that the consumer seeks and welcomes.
[edit] Direct response television marketing

Direct marketing on TV (commonly referred to as DRTV) has two basic forms: long form (usually half-
hour or hour-long segments that explain a product in detail and are commonly referred to as
infomercials) and short form which refers to typical 0:30 second or 0:60 second commercials that ask
viewers for an immediate response (typically to call a phone number on screen or go to a website).
TV-response marketing—i.e. infomercials—can be considered a form of direct marketing, since
responses are in the form of calls to telephone numbers given on-air. This both allows marketers to
reasonably conclude that the calls are due to a particular campaign, and allows the marketers to obtain
customers' phone numbers as targets for telemarketing. Under the Federal Do-Not-Call List rules in the
US, if the caller buys anything, the marketer would be exempt from Do-Not-Call List restrictions for a
period of time due to having a prior business relationship with the caller. Major players are firms like
QVC, Thane Direct, and Interwood Marketing Group then cross-sell, and up-sell to these respondents.
One of the most famous DRTV commercials was for Ginsu Knives by Ginsu Products, Inc. of RI.
Several aspects of ad, such as it's use of adding items to the offer and the guarantee of satisfaction were
much copied and came to be considered part of the formula for success with short form direct response
TV ads (DRTV)
[edit] Direct selling

Direct selling is the sale of products by face-to-face contact with the customer, either by having
salespeople approach potential customers in person, through indirect means such as Tupperware parties.
[edit] Integrated Campaigns

For many marketers, a comprehensive direct marketing campaign employs a mix of channels. It is not
unusual for a large campaign to combine direct mail, telemarketing, radio and broadcast TV, as well as
online channels such as email, search marketing, social networking and video. In a report[5] conducted
by the Direct Marketing Association, it was found that 57% of the campaigns studied were employing
integrated strategies. Of those, almost half (47%) launched with a direct mail campaign, typically
followed by e-mail and then telemarketing.

Main Invite Forum News Blogs Events Mentors

+Create new community

RURAL MARKETING
In recent years, rural markets have acquired significance... more>> In recent years, rural markets have acquired significance,
as the
overall growth of the economy has resulted into substantial
increase in the purchasing power of the rural communities. On
account of green revolution, the rural areas are consuming a
large quantity of industrial and urban manufactured products. In
this context, a special marketing strategy, namely, rural
marketing has emerged. But often, rural marketing is confused
with agricultural marketing, whereas rural marketing involves
delivering manufactured or processed inputs or services to rural
producers or consumers. This is the community where how companies
will market their products in rural area? and all related to
marketing. So Join This Community And Share Your Opinions, Ideas,
Thoughts And Views About Rural Marketing. <<less Category : News & Updates | Created date: Thursday 22 January , 09
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Retailing
From Wikipedia, the free encyclopedia
Jump to: navigation, search

"Retail" redirects here. For the comic strip by Norm Feuti, see Retail (comic strip).

"Stores" redirects here. For weapons stores, see Hardpoint.

Drawing of a self-service store.

Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store
or kiosk, or by post, in small or individual lots for direct consumption by the purchaser.[1] Retailing may
include subordinated services, such as delivery. Purchasers may be individuals or businesses. In
commerce, a retailer buys goods or products in large quantities from manufacturers or importers, either
directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments
are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers
see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is
also applied where a service provider services the needs of a large number of individuals, such as a
public utility like electric power.
Shops may be on residential streets, shopping streets with few or no houses, or in a shopping center or
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full
roof to protect customers from precipitation. Online retailing, also referred to as B2C type of e-
commerce, and mail order are forms of non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities
such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often
involves window shopping (just looking, not buying) and browsing and does not always result in a
purchase.

Contents
[hide]
• 1 Retail pricing
• 2 Etymology
• 3 Transfer mechanism
• 4 Building types
• 5 Second hand retail
• 6 Sales techniques
• 7 Customer service
• 8 See also
• 9 Notes and
references
• 10 Bibliography

[edit] Retail pricing

The pricing technique used by most retailers is cost-plus pricing. This involves adding a markup amount
(or percentage) to the retailers cost. Another common technique is suggested retail pricing. This simply
involves charging the amount suggested by the manufacturer and usually printed on the product by the
manufacturer.
In Western countries, retail prices are often called psychological prices or odd prices.
Often prices are fixed and displayed on signs or labels. Alternatively, there can be price discrimination
for a variety of reasons, where the retailer charges higher prices to some customers and lower prices to
others. For example, a customer may have to pay more if the seller determines that he or she is willing
to. The retailer may conclude this due to the customer's wealth, carelessness, lack of knowledge, or
eagerness to buy. Another example is the practice of discounting for youths or students.

[edit] Etymology
Retail comes from the French word retaillier which refers to "cutting off, clip and divide" in terms of
tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small quantities" in 1433
(French). Its literal meaning for retail was to "cut off, shred, paring".[2] Like the French, the word retail
in both Dutch and German (detailhandel and Einzelhandel respectively) also refer to sale of small
quantities of items.[citation needed]
[edit] Transfer mechanism
There are several ways in which consumers can receive goods from a retailer:
• Counter service, where goods are out of reach of buyers, and must be obtained
from the seller. This type of retail is common for small expensive items (e.g.
jewelry) and controlled items like medicine and liquor. It was common before the
1900s in the United States, and is more common in certain countries.[which?]
• Delivery (commerce), where goods are shipped directly to consumer's homes or
workplaces. Mail order from a printed catalog was invented in 1744 and common
in the late 1800s and early 1900s. Ordering by telephone is now common, either
from a catalog, newspaper or television advertisement, or local restaurant menu
for immediate service (especially for pizza delivery). Direct marketing (including
telemarketing) and television shopping channels are also used to generate
telephone orders. Online shopping started gaining significant market share in
developed countries in the 2000s.
• Door-to-door sales where the salesperson sometimes travels with the goods for
sale.
• Self-service, where goods may be handled and examined prior to purchase, has
become more common since the 1920s.

[edit] Building types

Non-traditional exterior of a SuperTarget, Jacksonville

A row of shops on Street Lane, Roundhay, Leeds, UK.

A market is a physical location where buyers and sellers converge. Usually this is done in town squares,
sidewalks or designated streets and may involve the construction of temporary structures (market stalls).
Markets are contrasted with shop or store trading, where a retailer has a permanent, dedicated building.
Buildings for retail have changed considerably over time. Market halls were constructed in the Middle
Ages, which were essentially just covered marketplaces. The first shops in the modern sense used to
deal with just one type of article, and usually adjoined the producer (baker, tailor, cobbler). In the U.S.,
retailers often provided[when?] boardwalks in front of their stores to protect customers from the mud.[citation
needed]
In the 19th century, in France, arcades were invented, which were a street of several different
shops, roofed over. Counters, each dealing with a different kind of article, were invented; it was called a
department store.[dubious – discuss] One of the novelties of the department store was the introduction of fixed
prices, making haggling unnecessary, and browsing more enjoyable.[citation needed] This is commonly
considered the birth of consumerism. [3] In cities, these were multi-story buildings which pioneered the
escalator.
In the 1920s the first supermarket[which?] opened in the United States, heralding in a new era of retail:
self-service.[citation needed] Around the same time the first shopping mall was constructed [4] which
incorporated elements from both the arcade and the department store. A mall consists of several
department stores linked by arcades (many of whose shops are owned by the same firm under different
names). The design was perfected by the Austrian architect Victor Gruen[5] All the stores rent their
space from the mall owner. By mid-century, most of these were being developed as single enclosed,
climate-controlled, projects in suburban areas. The mall has had a considerable impact on the retail
structure and urban development in the United States. [6]
In addition to the enclosed malls, there are also strip malls which are "outside" malls (in Britain they are
called retail parks).[dubious – discuss] These are often composed of one or more big-box stores or superstores.
Physical shops are known as brick and mortar stores in the United States, when contrasting them with
online stores. Many shops are part of a chain: a number of similar shops with the same name selling the
same products in different locations. The shops may be owned by one company, or there may be a
franchising company that has franchising agreements with the shop owners (see also restaurant chain).
Sometimes online retailing replicates existing retail types such as online shops or virtual marketplaces
such as Amazon.[7]

[edit] Second hand retail

Some shops sell second-hand goods. In the case of a nonprofit shop, the public donates goods to the
shop to be sold (see also thrift store). In give-away shops goods can be taken for free.
Another form is the pawnshop in which goods are sold that were used as collatoral for loans. There are
also "consignment" shops, which are where a person can place an item in a store, and if it sells the
person gives the shop owner a percentage of the sale price. The advantage of selling an item this way is
that the established shop gives the item exposure to more potential buyers.

[edit] Sales techniques

Behind the scenes at retail there is another factor at work. Corporations and independent store owners
alike are always trying to get the edge on their competitors. One way to do this is to hire a
merchandising solutions company to design custom store displays that will attract more customers in a
certain demographic. The nation's largest retailers spend millions every year on in-store marketing
programs that correspond to season and promotional changes. As products change, so will a retail
landscape.
Retailers may use facing to create the look of a perfectly-stocked store even when it is not.
A destination store is one that customers will initiate a trip specifically to visit, sometimes over a large
area. These stores are often used to "anchor" a shopping mall or plaza, generating foot traffic which is
capitalized on by smaller retailers.

Internet marketing

Display advertising
E-mail marketing
E-mail marketing software
Interactive advertising
Social media optimization
Internet marketing Web analytics
From Wikipedia, the free encyclopedia
Affiliate marketing
(Redirected from Online marketing)

Jump to: navigation, search Cost per action

Contextual advertising
Revenue sharing
Wikibooks has a book on the topic of
Marketing Search engine
marketing

Search engine optimization

This article needs additional citations for Pay per click advertising
verification. Please help improve this article by Paid inclusion
adding reliable references (ideally, using inline
citations). Unsourced material may be challenged Mobile advertising
and removed. (May 2008)
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Internet marketing, also referred to as web marketing, online

marketing, or eMarketing, is the marketing of products or services over the Internet.
The Internet has brought many unique benefits to marketing, one of which being lower costs for the
distribution of information and media to a global audience. The interactive nature of Internet marketing,
both in terms of providing instant response and eliciting responses, is a unique quality of the medium.
Internet marketing is sometimes considered to have a broader scope because it not only refers to digital
media such as the Internet, e-mail, and wireless media; however, Internet marketing also includes
management of digital customer data and electronic customer relationship management (ECRM)
systems.
Internet marketing ties together creative and technical aspects of the Internet, including design,
development, advertising, and sale.
Internet marketing also refers to the placement of media along different stages of the customer
engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner
ads on specific websites, e-mail marketing, and Web 2.0 strategies. In 2008 The New York Times
working with comScore published an initial estimate to quantify the user data collected by large
Internet-based companies. Counting four types of interactions with company websites in addition to the
hits from advertisements served from advertising networks, the authors found the potential for
collecting data upward of 2,500 times on average per user per month.[1]

Contents
[hide]
• 1 Business models
• 2 Differences from traditional marketing
○ 2.1 One-to-one approach
○ 2.2 Appeal to specific interests
○ 2.3 Geo targeting
 2.3.1 Different content by choice
 2.3.2 Automated different content
• 3 Advantages
• 4 Limitations
• 5 Security concerns
• 6 Broadband-induced trends
• 7 Effects on industries
• 8 See also
• 9 References

[edit] Business models

Internet marketing is associated with several business models:
• e-commerce — goods are sold directly to consumers (B2C) or businesses (B2B),
• publishing — the sale of advertising,
• lead-based websites — an organization generates value by acquiring sales leads
from its website, and
• affiliate marketing — A process in which a product or service developed by one
person is sold by other active seller for a share of profits. The owner of the product
normally provide some marketing material ( sales letter, affiliate link, tracking
facility).
There are many other business models based on the specific needs of each person or business that
launches an Internet marketing campaign.
[edit] Differences from traditional marketing

[edit] One-to-one approach

The targeted user is typically browsing the Internet alone, so the marketing messages can reach them
personally. This approach is used in search marketing, where the advertisements are based on search
engine keywords entered by the user.
And now with the advent of Web 2.0 tools, many users can interconnect as "peers"
[edit] Appeal to specific interests

Internet marketing and geo marketing places an emphasis on marketing that appeals to a specific
behaviour or interest, rather than reaching out to a broadly-defined demographic. "On- and Off-line"
marketers typically segment their markets according to age group, gender, geography, and other general
factors. Marketers have the luxury of targeting by activity and geolocation. For example, a kayak
company can post advertisements on kayaking and canoing websites with the full knowledge that the
audience has a related interest.
Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected
demographic of the periodical. Because the advertiser has knowledge of the target audience—people
who engage in certain activities (e.g., uploading pictures, contributing to blogs)— the company does not
rely on the expectation that a certain group of people will be interested in its new product or service.
[edit] Geo targeting

Geo targeting (in internet marketing) and geo marketing are the methods of determining the geolocation
(the physical location) of a website visitor with geolocation software, and delivering different content to
that visitor based on his or her location, such as country, region/state, city, metro code/zip code,
organization, Internet Protocol (IP) address, ISP or other criteria.
[edit] Different content by choice
A typical example for different content by choice in geo targeting is the FedEx website at FedEx.com
where users have the choice to select their country location first and are then presented with different
site or article content depending on their selection.
[edit] Automated different content
With automated different content in internet marketing and geomarketing the delivery of different
content based on the geographical geolocation and other personal information is automated.

[edit] Advantages
Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the
target audience. Companies can reach a wide audience for a small fraction of traditional advertising
budgets. The nature of the medium allows consumers to research and purchase products and services at
their own convenience. Therefore, businesses have the advantage of appealing to consumers in a
medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns
depend on business goals and cost-volume-profit (CVP) analysis.
Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all
aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use
a variety of methods: pay per impression, pay per click, pay per play, or pay per action. Therefore,
marketers can determine which messages or offerings are more appealing to the audience. The results of
campaigns can be measured and tracked immediately because online marketing initiatives usually
require users to click on an advertisement, visit a website, and perform a targeted action. Such
measurement cannot be achieved through billboard advertising, where an individual will at best be
interested, then decide to obtain more information at a later time.
Internet marketing as of 2007 is growing faster than other types of media.[citation needed] Because exposure,
response, and overall efficiency of Internet media are easier to track than traditional off-line media—
through the use of web analytics for instance—Internet marketing can offer a greater sense of
accountability for advertisers. Marketers and their clients are becoming aware of the need to measure
the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than siloing
each advertising medium. The effects of multichannel marketing can be difficult to determine, but are
an important part of ascertaining the value of media campaigns.

[edit] Limitations
Internet marketing requires customers to use newer technologies rather than traditional media. Low-
speed Internet connections are another barrier: If companies build large or overly-complicated websites,
individuals connected to the Internet via dial-up connections or mobile devices may experience
significant delays in content delivery.
From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods
before making an online purchase can be limiting. However, there is an industry standard for e-
commerce vendors to reassure customers by having liberal return policies as well as providing in-store
pick-up services.
A survey of 410 marketing executives listed the following barriers to entry for large companies looking
to market online: insufficient ability to measure impact, lack of internal capability, and difficulty
convincing senior management.[2]

[edit] Security concerns

Information security is important both to companies and consumers that participate in online business.
Many consumers are hesitant to purchase items over the Internet because they do not trust that their
personal information will remain private. Encryption is the primary method for implementing privacy
policies.
Recently some companies that do business online have been caught giving away or selling information
about their customers. Several of these companies provide guarantees on their websites, claiming that
customer information will remain private. Some companies that purchase customer information offer
the option for individuals to have their information removed from the database, also known as opting
out. However, many customers are unaware if and when their information is being shared, and are
unable to stop the transfer of their information between companies if such activity occurs.
Another major security concern that consumers have with e-commerce merchants is whether or not they
will receive exactly what they purchase. Online merchants have attempted to address this concern by
investing in and building strong consumer brands (e.g., Amazon.com, eBay, Overstock.com), and by
leveraging merchant/feedback rating systems and e-commerce bonding solutions. All of these solutions
attempt to assure consumers that their transactions will be free of problems because the merchants can
be trusted to provide reliable products and services. Additionally, the major online payment
mechanisms (credit cards, PayPal, Google Checkout, etc.) have also provided back-end buyer protection
systems to address problems if they actually do occur.

[edit] Broadband-induced trends

Online advertising techniques have been dramatically affected by technological advancements in the
telecommunications industry. In fact, many firms are embracing a new paradigm that is shifting the
focus of online advertising from simple text ads to rich multimedia experiences. As a result, advertisers
can more effectively engage in and manage online branding campaigns, which seek to shape consumer
attitudes and feelings towards specific products. And just what is the critical technological development
that is fueling this paradigm shift? The answer: Broadband.
In March 2005, roughly half of all American homes were equipped with broadband technology. By May
2008, broadband technologies had spread to more than 90% of all residential Internet connections in the
United States. When one considers a Nielsen’s study conducted in June 2008, which estimated the
number of U.S. Internet users as 220,141,969, one can calculate that there are presently about 199
million people in the United States utilizing broadband technologies to surf the Web.
As a result, all 199 million members of this burgeoning market have the ability to view TV-like
advertisements with the click of a mouse. And to be sure, online advertisers are working feverishly to
design rich multimedia content that will engender a “warm-fuzzy” feeling when viewed by their target
audience. As connection speeds continue to increase, so will the frequency of online branding
campaigns.

[edit] Effects on industries

Internet marketing has had a large impact on several previously retail-oriented industries including
music, film, pharmaceuticals, banking, flea markets, as well as the advertising industry itself. Internet
marketing is now overtaking radio marketing in terms of market share.[3] In the music industry, many
consumers have been purchasing and downloading music (e.g., MP3 files) over the Internet for several
years in addition to purchasing compact discs. By 2008 Apple Inc.'s iTunes Store has become the
largest music vendor in the United States.[4]
The number of banks offering the ability to perform banking tasks online has also increased. Online
banking is believed to appeal to customers because it is more convenient than visiting bank branches.
Currently over 150 million U.S. adults now bank online, with increasing Internet connection speed
being the primary reason for fast growth in the online banking industry.[citation needed] Of those individuals
who use the Internet, 44 percent now perform banking activities over the Internet.[citation needed]
Internet auctions have gained popularity. Unique items that could only previously be found at flea
markets are being sold on eBay. Specialized e-stores sell items ranging from antiques to movie props.[5]
[6]
As the premier online reselling platform, eBay is often used as a price-basis for specialized items.
Buyers and sellers often look at prices on the website before going to flea markets; the price shown on
eBay often becomes the item's selling price. It is increasingly common for flea market vendors to place
a targeted advertisement on the Internet for each item they are selling online, all while running their
business out of their homes.
The effect on the advertising industry itself has been profound. In just a few years, online advertising
has grown to be worth tens of billions of dollars annually.[7][8][9] PricewaterhouseCoopers reported that
US$16.9 billion was spent on Internet marketing in the U.S. in 2006.[10]
Internet marketing has had a growing impact on the electoral process. In 2008 candidates for President
heavily utilized Internet marketing strategies to reach constituents. During the 2007 primaries
candidates added on averaged over 500 social network supporters per day to help spread their message.
[11]
President Barack Obama raised over US$1 million in a single day during his extensive Democratic
candidacy campaign, largely due to online donors.[12]
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• What is eMarketing and how is it better than traditional marketing?

Chapter 1: What is eMarketing and how is it better than

traditional marketing?
download Pdf
Marketing has pretty much been around forever in one form or another. Since the day when humans
first started trading whatever it was that they first traded, marketing was there. Marketing was the
stories they used to convince other humans to trade. Humans have come a long way since then, (Well,
we like to think we have) and marketing has too.

The methods of marketing have changed and improved, and we've become a lot more efficient at
telling our stories and getting our marketing messages out there. eMarketing is the product of the
meeting between modern communication technologies and the age-old marketing principles that
humans have always applied.

That said, the specifics are reasonably complex and are best handled piece by piece. So we’ve
decided to break it all down and tackle the parts one at a time. This week we’ll be looking at the
"what" and "why" of eMarketing, outlining the benefits and pointing out how it differs from traditional
marketing methods.

By the end of the series we're pretty sure you'll have everything you need to tell better marketing
stories.

What is eMarketing?
Very simply put, eMarketing or electronic marketing refers to the application of marketing principles
and techniques via electronic media and more specifically the Internet. The terms eMarketing,
Internet marketing and online marketing, are frequently interchanged, and can often be considered
synonymous.

eMarketing is the process of marketing a brand using the Internet. It includes both direct response
marketing and indirect marketing elements and uses a range of technologies to help connect
businesses to their customers.

By such a definition, eMarketing encompasses all the activities a business conducts via the
worldwide web with the aim of attracting new business, retaining current business and developing its
brand identity.

Why is it important?
When implemented correctly, the return on investment (ROI) from eMarketing can far exceed that of
traditional marketing strategies.

Whether you're a "bricks and mortar" business or a concern operating purely online, the Internet is a
force that cannot be ignored. It can be a means to reach literally millions of people every year. It's at
the forefront of a redefinition of way businesses interact with their customers.

download Pdf

1 | 2 | 3 | Next

Comments
post a comment
Very simply put, eMarketing or electronic marketing refers to the application of marketing principles
and techniques via electronic media and more specifically the Internet. The terms eMarketing, Internet
marketing and online marketing, are frequently interchanged, and can often be considered
synonymous. eMarketing is the process of marketing a brand using the Internet. It includes both direct
response marketing and indirect marketing elements and uses a range of technologies to help connect
businesses to their customers. By such a definition, eMarketing encompasses all the activities a
business conducts via the worldwide web with the aim of attracting new business, retaining current
business and developing its brand identity. Marketing has pretty much been around forever in one
form or another. Since the day when humans first started trading whatever it was that they first traded,
marketing was there. Marketing was the stories they used to convince other humans to trade. Humans
have come a long way since then, (Well, we like to think we have) and marketing has too. The
methods of marketing have changed and improved, and we've become a lot more efficient at telling
our stories and getting our marketing messages out there. eMarketing is the product of the meeting
between modern communication technologies and the age-old marketing principles that humans have
always applied. That said, the specifics are reasonably complex and are best handled piece by piece.
So we’ve decided to break it all down and tackle the parts one at a time. This week we’ll be looking at
the "what" and "why" of eMarketing, outlining the benefits and pointing out how it differs from
traditional marketing methods. By the end of the series we're pretty sure you'll have everything you
need to tell better marketing stories.

Posted by Satish on 2008/02/19

Marketing has pretty much been around forever in one form or another. Since the day when humans
first started trading whatever it was that they first traded, marketing was there. Marketing was the
stories they used to convince other humans to trade. Humans have come a long way since then, (Well,
we like to think we have) and marketing has too. The methods of marketing have changed and
improved, and we've become a lot more efficient at telling our stories and getting our marketing
messages out there. eMarketing is the product of the meeting between modern communication
technologies and the age-old marketing principles that humans have always applied. That said, the
specifics are reasonably complex and are best handled piece by piece. So we’ve decided to break it
all down and tackle the parts one at a time. This week we’ll be looking at the "what" and "why" of
eMarketing, outlining the benefits and pointing out how it differs from traditional marketing methods.
By the end of the series we're pretty sure you'll have everything you need to tell better marketing
stories.

Posted by Balakrishnan.S on 2008/02/19

the deffination is most suitable and eassy to remember....

Posted by Avishek Dutta on 2008/05/10

It is good, but it doesn't make clear demarcation among online,e-,digital, internet marketing e-
business, and e-commerce. edr0546@yahoo.com

Posted by Dawit Melak on 2008/08/01

The term e-marketing comes in mind with the using of computers that of course is connected t a wide
range network (internet). With some part of African still not aware or better still being part of the
Information superhighway, then e-marketing is as remote as Africans forming a United states ofAfrica.

Posted by Ivan namme on 2008/09/06

i would like to know how can e-marketing be more fruitful in targeting a large pool of potential
customers.how can we exploit e-marketing for maximum returns.any answers.

Posted by pooja on 2008/09/26

Need help with e-sales strategy

Posted by Smita on 2008/10/15

Emarketing may support the traditional marketing, but it takes time for the businesses to depend on
emarketing becuasue,most of the population in the world does not have access to the IT.

Posted by Hussein Bulo on 2008/10/27

is e marketing used in most buisness and is it used everyday?

Posted by jade a on 2008/11/11

does e-marketing and digital marketing differ?

Posted by QM on 2008/12/06

e marketing is a simple way to comunicate with their concern personalities before the Internet
marketing was very difficult

Posted by muhammad khoso on 2009/01/19

i would like to know,what are all comes under or tools for emaketing strategies.

Posted by mohan on 2009/02/04

Hi.. Thankyou for the valuable info on emarketing.. I have a query ..could you suggest any traditional
marketing "theory" which is totally or partially voilated by the concept of emarketing.. It could be in
terms of pricing , strategy, motivation , distribution or marketing mix... any theory .. would be grt help..
Regards

Posted by Geet on 2009/03/06

thus emarketing limit itself to email and web advertising?

Posted by dalia santos on 2009/03/13

Hi! What are the factors that may contribute to the limited application of this modern approach of
marketing (E-Marketing)>

Posted by Esha on 2009/03/16

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Other Articles in the eMarketing 101 series:

• What is eMarketing and how is it better than traditional marketing?
• The Arrows in the eMarketer's quiver
• Blogging - Everyone else is doing it, so why can't I?
• A focus on natural search (beginner's guide to SEO)
• A Case Study - SEO in action
• PPC - you gets what you pays for
• A Case Study - PPC to the rescue
• Email Marketing - No not spam
• Affiliate Marketing - because we all need friends
• WebPR and ORM - blah blah blah conversations
• A Case Study - ORM: Keeping Your Ears to the Ground
• Viral Marketing - linkerbation is a normal, natural thing. Perfectly natural
• Online Advertising - Throwing a Banner into the Works
• Conversion Optimisation - Are You Closing the Deal?
• A Case Study - 2010 : Can the SA Tourism Industry Meet Online Expectations?
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eMarketing is essentially part of marketing. So the place
to begin defining eMarketing is to consider where it fits
within the subject of marketing. So let's start with a
definition of marketing. The American Marketing
Association (AMA) definition (2004) is as follows:
Marketing is an organizational function and a set of
processes for creating, communicating and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and its
stakeholders.
Therefore eMarketing by its very nature is one aspect of an
organizational function and a set of processes for creating,
communicating and delivering value to customers and for
managing customer relationships in ways that benefit the
organization and its stakeholders. As such an aspect,
eMarketing has its own approaches and tools that
contribute to the achievement of marketing goals and
objectives.
This also helps us to differentiate between eMarketing and
E-commerce, since E-Commerce is simply buying and
selling online.
What is the difference between
eMarketing and Internet Marketing?
There is no real difference between eMarketing and
Internet Marketing. However, with the arrival of mobile
technologies such as PDA's and 3G mobile phones, as well
as Interactive Television, both terms tend to be stretched
to include these new media technologies. On the other
hand, others would see eMarketing and Internet marketing
a subtly different, for example Chaffey (below):
Internet marketing is achieving marketing objectives
through applying digital technologies. (Chaffey 2006)
eMarketing is achieving marketing objectives through use
of electronic communications technology. (Chaffey 2006)
Whilst this distinction is wholly acceptable, it is difficult to
see where the distinction lies between digital technologies
and electronic communications technologies, especially
with the convergence of technologies such as mobile
devices.
What are the eMarketing tools?
The Internet has a number of tools to offer to the
marketer.
• A company can distribute via the Internet e.g. Amazon.com.
• A company can use the Internet as a way of building and maintaining a
customer relationship e.g. Dell.com.
• The money collection part of a transaction could be done online e.g.
electricity and telephone bills.
 • Leads can be generated by attracting potential customers to sign-up for
short periods of time, before signing up for the long-term e.g. which.co.uk.
• The Internet could be used for advertising e.g. Google Adwords.
• Finally, the web can be used as a way of collecting direct responses e.g. as
part of a voting system for a game show.
How do marketers plan for eMarketing?
There are two ways of looking at this.
• An existing organization may embark upon some eMarketing as part of their
marketing plan.
• An organization trades solely on the Internet and so their marketing plan
focuses purely on eMarketing.
The marketing plan in either case is the next step, whether
focused upon eMarketing or all marketing. The next
lessons focus upon a tailor-made eMarketing plan which
conforms to the acronym AOSTC (from our generic
marketing planning lesson).
• A - Audit - An audit of internal strengths and weaknesses, an external
opportunities and threats.
• O - Objectives - SMART eMarketing objectives.
• S - Strategy - eMarketing strategies.
• T - Tactics - an eMarketing mix.
• C - Controls - measuring the performance of our eMarketing plan.

Green marketing
From Wikipedia, the free encyclopedia
Jump to: navigation, search

Marketing

Key concepts

Product / Pricing / Promotion

Distribution / Service / Retail
Brand management
Account-based marketing
Marketing effectiveness
Market research
Marketing strategy
Marketing management
 Market dominance

Promotional content

Advertising / Branding
Direct marketing / Personal Sales
Product placement / Public relations
Publicity / Sales promotion
Sex in advertising / Underwriting

Promotional media

Printing / Publication / Broadcasting

Out-of-home / Internet marketing
Point of sale / Novelty items
Digital marketing / In-game
Word of mouth
This box: view • talk • edit

According to the American Marketing Association, green marketing is the marketing of products that
are presumed to be environmentally safe.[1] Thus green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes, as
well as modifying advertising. Yet defining green marketing is not a simple task where several
meanings intersect and contradict each other; an example of this will be the existence of varying social,
environmental and retail definitions attached to this term.[1] Other similar terms used are Environmental
Marketing and Ecological Marketing.
The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to
regulatory or civil challenges. In the USA, the Federal Trade Commission provides some guidance on
environmental marketing claims. [2]

Contents
[hide]
• 1 History
• 2 Greenhouse gas reduction market
• 3 Popularity and effectiveness
○ 3.1 Ongoing debate
○ 3.2 Confusion
○ 3.3 Statistics
• 4 Green marketing cases
○ 4.1 Philips Light's "Marathon"
○ 4.2 Car sharing services
○ 4.3 Electronics Sector
○ 4.4 Introduction of CNG in Delhi
 • 5 See also
• 6 References
• 7 External links

[edit] History

A green market in the Lower East Side Green Market, New York City.[3]

The term Green Marketing came into prominence in the late 1980s and early 1990s.[4] The American
Marketing Association (AMA) held the first workshop on "Ecological Marketing" in 1975.[5] The
proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological
Marketing".[6]
The first wave of Green Marketing occurred in the 1980s. Corporate Social Responsibility (CSR)
Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by
a greater view on the company's environmental impact. In 1987 a document prepared by the World
Commission on Environment and Development defined sustainable development as meeting “the needs
of the present without compromising the ability of future generations to meet their own need”, this
became known as the Brundtland Report and was another step towards widespread thinking on
sustainability in everyday activity. Two tangible milestones for wave 1 of green marketing came in the
form of published books, both of which were called Green Marketing. They were by Ken Peattie (1992)
in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America.[citation needed]
In the years after 2000 a second wave of Green marketing emerged. By now CSR and the Triple Bottom
Line (TBL) were widespread. Such publications as a 2005 United Nations Report, then in 2006 a book
by Al Gore and the UK Stern Report brought scientific-environmental arguments to a wide public in an
easy to understand way. This knowledge assessed the implications of moving to a low-carbon global
economy and the potential of different approaches. This new wave of Green Marketing differed from
the first wave in many respects. It is curious to note that Green Marketing Wave 1 followed an
economic recession, whereas Green Marketing Wave 2 came before the global recession that come to be
known as the “Credit Crunch”. This difference may be significant in that it may suggest that Green
Marketing is here to stay. The green marketing concept dictates, amongst other things, less use,
recycling and avoiding waste, just some of the ways society reacts at times of recession. (see Bradley
2003[7] for 6 green marketing strategies).
According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for Innovation) from an
organizational standpoint, environmental considerations should be integrated into all aspects of
marketing — new product development and communications and all points in between.[8] The holistic
nature of green also suggests that besides suppliers and retailers new stakeholders be enlisted, including
educators, members of the community, regulators, and NGOs. Environmental issues should be balanced
with primary customer needs.[citation needed]

The green market at Union Square (14th street), New York City

The past decade has shown that harnessing consumer power to effect positive environmental change is
far easier said than done. The so-called "green consumer" movements in the U.S. and other countries
have struggled to reach critical mass and to remain in the forefront of shoppers' minds.[9] While public
opinion polls taken since the late 1980s have shown consistently that a significant percentage of
consumers in the U.S. and elsewhere profess a strong willingness to favor environmentally conscious
products and companies, consumers' efforts to do so in real life have remained sketchy at best.[1] One of
green marketing's challenges is the lack of standards or public consensus about what constitutes
"green," according to Joel Makower, a writer on green marketing.[citation needed] In essence, there is no
definition of "how good is good enough" when it comes to a product or company making green
marketing claims. This lack of consensus -- by consumers, marketers, activists, regulators, and
influential people -- has slowed the growth of green products, says Makower, because companies are
often reluctant to promote their green attributes, and consumers are often skeptical about claims.[citation
needed]

Despite these challenges, green marketing has continued to gain adherents, particularly in light of
growing global concern about climate change. This concern has led more companies to advertise their
commitment to reduce their climate impacts, and the effect this is having on their products and
services[10][11].

[edit] Greenhouse gas reduction market

A green market in Newcastle, July 2007

The emerging greenhouse gas reduction market can potentially catalyze projects with important local
environmental, economic, and quality-of-life benefits. The Kyoto Protocol’s Clean Development
Mechanism (CDM), for example, enables trading between industrial and developing nations, providing
a framework that can result in capital flows to environmentally beneficial development activities.
Although the United States is not participating in the Kyoto Protocol, several US programs enable
similar transactions on a voluntary and regulatory basis.[1]
While international trade in greenhouse gas[12] reductions holds substantial promise as a source of new
funding for sustainable development, this market can be largely inaccessible to many smaller-scale
projects, remote communities, and least developed localities. To facilitate participation and broaden the
benefits, several barriers must be overcome, including: a lack of market awareness among stakeholders
and prospective participants; specialized, somewhat complicated participation rules; and the need for
simplified participation mechanisms for small projects, without which transaction costs can overwhelm
the financial benefits of participation. If the barriers are adequately addressed, greenhouse gas trading
can play an important role supporting activities that benefit people’s lives and the environment.[1]

[edit] Popularity and effectiveness

[edit] Ongoing debate

The popularity of such marketing approach and its effectiveness is hotly debated.Supporters claim that
environmental appeals are actually growing in number–the Energy Star label, for example, now appears
on 11,000 different companies'[13] models in 38 product categories, from washing machines and light
bulbs to skyscrapers and homes. The difference is, however, that green—rightfully so—is on the wane
as the primary sales pitch for products. On the other hand, Roper’s Green Gauge shows that a high
percentage of consumers (42%)[14] feel that environmental products don’t work as well as conventional
ones. This is an unfortunate legacy from the 1970s when shower heads sputtered and natural detergents
left clothes dingy. Given the choice, all but the greenest of customers will reach for synthetic detergents
over the premium-priced, proverbial "Happy Planet" any day, including Earth Day. New reports,
however show a growing trend towards green products.[15]
[edit] Confusion

One challenge green marketers -- old and new -- are likely to face as green products and messages
become more common is confusion in the marketplace. "Consumers don not really understand a lot
about these issues, and there's a lot of confusion out there," says Jacquelyn Ottman(founder of J. Ottman
Consulting and author of "Green Marketing: Opportunity for Innovation.")[15] Marketers sometimes take
advantage of this confusion, and purposely make false or exaggerated "green" claims. Critics refer to
this practice as "green washing".[citation needed]
[edit] Statistics

According to market researcher Mintel, about 12% of the U.S. population can be identified as True
Greens, consumers who seek out and regularly buy so-called green products. Another 68%[16][15] can be
classified as Light Greens, consumers who buy green sometimes. "What chief marketing officers are
always looking for is touch points with consumers, and this is just a big, big, big touch point that's not
being served," says Mintel Research Director David Lockwood. "All the corporate executives that we
talk to are extremely convinced that being able to make some sort of strong case about the environment
is going to work down to their bottom line."[15]
[edit] Green marketing cases

[edit] Philips Light's "Marathon"

Philips Light's CFL

Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth
Light, at $15 each versus 75 cents for incandescent bulbs.[17] The product had difficulty climbing out of
its deep green niche.[17]The company re-launched the product as "Marathon," underscoring its new
"super long life" positioning and promise of saving $26 in energy costs over its five-year lifetime.[18]
Finally, with the U.S. EPA's Energy Star label to add credibility as well as new sensitivity to rising
utility costs and electricity shortages, sales climbed 12 percent in an otherwise flat market.[18]
[edit] Car sharing services

Car-sharing services address the longer-term solutions to consumer needs for better fuel savings and
fewer traffic tie-ups and parking nightmares, to complement the environmental benefit of more open
space and reduction of greenhouse gases.[citation needed] They may be thought of as a "time-sharing" system
for cars. Consumers who drive less than 7,500 miles a year and do not need a car for work can save
thousands of dollars annually by joining one of the many services springing up, including ZipCar (East
Coast), Flex Car (Washington State),[19] and Hour Car (Twin Cities)[20] .
[edit] Electronics Sector

The consumer electronics sector provides room for using green marketing to attract new customers. One
example of this is HP's promise to cut its global energy use 20 percent by the year 2010.[21] To
accomplish this reduction below 2005 levels, The Hewlett-Packard Company announced plans to
deliver energy-efficient products and services and institute energy-efficient operating practices in its
facilities worldwide.
[edit] Introduction of CNG in Delhi

New Delhi, capital of India, was being polluted at a very fast pace until Supreme Court of India forced a
change to alternative fuels. In 2002, a directive was issued to completely adopt CNG in all public
transport systems to curb pollution.[22
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19th Century British Pamphlets freely available to JSTOR participants through June 30, 2009... Learn More

+ Show full citationThis is the first page of the item you requested.

• Conjoint Analysis in Marketing: New Developments with Implications for Research

and Practice
• Paul E. Green and V. Srinivasan
• The Journal of Marketing, Vol. 54, No. 4 (Oct., 1990), pp. 3-19
(article consists of 17 pages)
• Published by: American Marketing Association
• Stable URL: http://www.jstor.org/stable/1251756

Conjoint Analysis in Marketing: New Developments with Implications for Research and Practice, by Paul E. Green
and V. Srinivasan © 1990 American Marketing Association.
 Abstract
The authors update and extend their 1978 review of conjoint analysis. In addition to discussing several new
developments, they consider alternative approaches for measuring preference structures in the presence of a large
number of attributes. They also discuss other topics such as reliability, validity, and choice simulators.

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The Income Consumption / Income Saving Relationship

Economists care about income/spending:
○ relationship with each other
○ relationship to overall health of the economy
○ relationship to/ effects on economic growth, inflation, recession, and business cycle

The Consumption Schedule:

- Reflects the direct consumption (C) -disposable income (DI) relationship
-Households increase their C as DI rises.
-Households spend a larger proportion, if their DI is small.
-Break-even income is when C=DI , which also means that households consume their entire income, but
not to the point where they go in debt. At this point, the consumption schedule intersects the 45 degree line
(the savings schedule intercepts the x-axis).
 -When developing macroeconomic models, economists change their focus from consumption and
disposable income to the relationship between consumption and saving and real domestic output (real
GDP).

The 45 Degree Line:

- A reference line that bisects the the 90 degree angle formed by the y-axis and x-axis of the graph.
- At each point on the 45 degree line,C=DI.
- The vertical distance between the 45 degree line and Consumption line measures either savings (when C
line is below the 45 degree line) or dissavings (when C line is above the 45 degree line).
-Dissaving occurs when household consume more than its DI, indicating that the household borrowed
money or spent accumulated wealth.
-Dissaving usually occur with households of lower income.

The Saving Schedule:

Savings = Disposable Income - Consumption
Savings are essentially the portion of your income you don't consume.
Dissavings= consuming more than the available income either by liquidating accumulated wealth or
borrowing money.
If households consume a smaller and smaller proportion of DI as DI increases, then they must be saving a
larger and larger proportion.

Average and marginal propensities

• APC and APS:
○ Definitions:
 Average Propensity to Consume (APC): total percentage of DI consumed
 Average Propensity to Save (APS): total percentage of DI saved
○ APC = Consumption/Income
 the fraction of total income that is consumed
○ APS = Saving/income
 the fraction of total income that is saved
○ APC+APS= 1
 Every leftover dollar not spent is saved
• MPC and MPS:
•

○ MPC (marginal propensity to consume) = change in consumption/change in income.

 the proportion of changes in income consumed.
○ MPS (marginal propensity to save) = change in saving/change in income.
 the proportion of changes in income saved.
○ MPC + MPS =1
 The sum of the MPC and the MPS for any change in DI must always be 1 becuase every leftover dollar not
spent is counted "saved".
*Note that if a consumer's income changed by a certain percentage, their propensity to spend does NOT
always change in accordance with it.

MPC and MPS as Slopes

• The MPC and MPS are the numerical values of the slopes of the consumption and savings schedule,
respectively.

Nonincome determinants of consumption and saving:

• Wealth = value of real assets (i.e. houses, land) and financial assets (i.e. cash, savings, stocks, bonds)
○ When wealth increases, households increase spending and reduce savings
 Shifts Consumption schedule upward and Supply schedule downwards
 Opposite occurs when wealth decreases
• Expectations about future prices and income
○ Expectations of rising prices in the future will cause an increase in consumption and decrease in saving in
the present.
 Shifts Consumption schedule upward and Saving schedule downward
 Opposite occurs, when there are expectations of a recession and lower income in the future
• Real Interest Rates
○ When real interest rates fall, households borrow more, consume more, and save less.
○ When real interest rates climb, households borrow less, consume less, and save more.
○ These effects on consumption and saving are very modest. They mainly shift products bought on credit.
• Household Debt
○ When consumers as a group increase household debt, they can increase current consumption at each
level of DI.
 Household debt is a constant proportion in DI.
 Greater household debt means greater borrowing.
 Increased borrowing shifts the consumption schedule upward.
 Reduced borrowing shifts consumption schedule downward.

Resolved Question
Show me another »

What is the relationship between consumption and disposable

income?
What is the relationship between consumption and disposable income, called the
consumption function and the one between saving an disposable income, known as the
savings function.

Does somebody know some good wesites where I can read about this topic?

• 11 months ago
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Best Answer - Chosen by Asker

Consumption function _is_ the relationship between consumption and disposable income,
namely it's a function that gives you the consumption amount given any disposable
income. Same for savings function.

Consumptions should add up to disposable income. Consumption cannot be negative, but

savings can be, if we allow for borrowing or have an open economy. If savings are can be
negative, consumptions can exceed disposable income.

Finally, it is commonly assumed that consumption is an increasing function of disposable

income.

investment multiplier

Definition
The change in national income which would result from a unit change in investment.

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investment multiplier is in the Economy subject.

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