The Evolution of Promoting and Advertising Brands

Chapter 3 with Duane Weaver

Outline
Rise of Capitalism Manufacturers pursuit of power Evolution of Advertising in the USA The 00s: More Hip Ads and More Technology (2001 present) DISCUSSION seminar questions

Rise of Capitalism
Industrial Revolution
basic force behind the rapid increase in massproduction goods that required stimulation of demand

principle of limited liability

gained acceptance and resulted in large amounts of capital to fund the Industrial Revolution

What was the impact on advertising as a result of the Industrial Revolution?

Manufacturers pursuit of power

Manufacturers attempt to gain power over the distribution channel by building brand demand. Takes consumers focus away from Retailer and Wholesaler Mass Media telegraph enabled rapid communication, spawned global interest and fostered a sense of community
this free communication is supported by advertising.

Evolution of Advertising in the USA (1 of 2)

Pre-1800
Print media (news books, newsletters, then gazettes)

1800-1875
Circulation of dailies (newspapers) 1M/day Circulation increased by railroad expansion

1875-1918
Consumer culture breeds advertising as urbanization takes hold (self-reliance no longer plausible)

The 1920s
roaring twenties advertising was the work of the young, smart and sophisticated High standard of living after WW1 and plague A product for a cure for almost everything Ads became more visual than past

1929-1941 Depression
Advertising seen as villainous as millions starve Bye-bye pretty, hello ugly harsh-reality, attention-grabbing ads Radio takes hold as medium

Evolution of Advertising in the USA (2 of 2)

1941-1960 (WWII + the 50s)
Start of the babyboomer generation and women join the workforce Fear of motivation advertising research and subliminal ads

1960-1972 (Peace, Love and Creative Revolution)

Advertising slow to keep pace with the cultural revolution creative directors gain more control of copy and ads

1973-1980
Slowing economyads go back to hard sell Regulators: ACT, FTC, NARB

1980-1992
Designer era with disposable income double parents after WWII Greed was good, more stuff was good

1993-2000
Prediction of Interactive media enabling audit of more accountable advertising

The 00s: More Hip Ads and More Technology (2001 present) Ads seen as adsself-aware Dot.bomb websites totally dependent on online ads for revenue (However, stock value was in
potential ad revenue not real product revenue)

E-business selling real product online Increase in web advertising

Why now?? What has changed?

Branded Entertainment (and product placement)

Why does this work??

Discussion Questions:
1. Why is advertising an essential feature of capitalistic economic systems? 2. What forces do you think will continue to affect the evolution of advertising?

Social, Ethical and Regulatory Aspects Of Advertising

Chapter 4 with Duane Weaver

OUTLINE
Social Aspects Ethical Aspects Regulatory Aspects Industry Self-Regulation Discussion

Social Aspects
Get together in your teams and discuss the following. Be prepared to provide a a brief summary of your discussion to the class. What are the positive impacts to society? Why? What are the negative impacts to society? Why?

Ethical Aspects
ETHICS = moral standards and principles against which behavoior is judged.
Truth and deception (what issues?) Advertising to children (is it okay?) Is it okay to advertise alcohol, tobacco, gambling, prostitution, etc?

Regulatory Aspects
Areas:
Deception and Unfairness
How do you regulate? Can you?

Competition
Cooperative, comparative, monopoly

Advertising to children
Industry and consumer groups vs. regulators like FTC (USA), CRTC (Canada)

Industry Self-Regulation
E.g.: NARB (National Advertising Review Board) affiliated with BBB (Better Business Bureau). Internet Consumers

Discussion
1. Should Advertising be regulated? 2. Can it be effectively managed and who should be responsible for the social and ethical management of advertising?