Advertising Procedure

• By 1800 more than 100 magazines served an educated and wealthy elite
• Editorial and ads foundations of modern consumer magazines shaped in later part of the 19th century
• Ad support came from manufacturers, for them magazines provided only means of reaching buyers throughout the country.

• Americans moved from farms to cities, so a majority of people were dependent on others for their food
• advertising for food and medicine were often outrageous so some magazines banned medical advertising
• 1906 public opinion had reached point, that congress moved to protect public health with passage of the Food and Drug Act
• modern era of food and drug enforcement began with passage of the federal Food, Drug and Cosmetic Act.

• original mandate of Federal Trade Commission was to protect business owner from the unserupulous practices of another
• later extendet to other protection to consumers as well as businesses
• Today FTC is the primary federal enforcement agency to ensure that advertising claiams and sales practices meet reasonable standards for honesty and truthfulness

• founded to promote World War 2 mobilization it later evolved into the Advertising Council
• First campaign encourages women to enter the workforce
• Advertising Council: Non profit network of agencies, media and advertisers dedicated to promiting social programs through ads

• During WW2 ad had taken a backseat
• with end of war pent-up demand led to unprecended alleteration in the rate of growth of ad media investment
• media volume almost three times what it had been only 10 years eralier
• By the mid 50's consumers had met most of their basic needs and now had to be persuaded to buy products that satisfied wants rather than only needs

• 1956 Department of Justice ruled that ad-agencie could negotiate fees with clients rather than adhere th the 15 percent commission that had been required on all media peviously -> growth of specialized companies
• Creativity including humor became hallmar of ad
• FTC introduced corrective advertising demanding greater accountability for companies, that made false or missleading claims
• NP felt effect of shift of metropolitan populations to the suburbs -> Freestanding inserts became important part og NP billings
• Radio took drive when TV came along
• Two biggest developments to emerge TV and electronics were TV and electronic data processing

2000 marked by two significant developments in marketing and advertising

1. Defining and using new technology to reach prospects

• (Technology created consumer empowered with interactive, two way communication devices that allow them to determine when, where and ifvthey will invite advertisers to deliver their messages
• Era of permission marketing requires companies to rewrite ad rules of marketing and fundomentally redefine exactly what constitutes advertising
• Although specific promitions demonstrate a wide variety of uses, marketers realize that audience involvement is key to success so promotions function as participatory communications

1. Measuring value of investing various communication channels as it relates to the changes in how we reach prospects

• since beginning of fragmentation measuring return on investment of ads dollars has been a major problem
• continued media fragmentation and consumer's increased control over how, when and where they receive ad messages caused advertisers to look for new avenues
• new media audiences tend to be individualized and expensive to reach
• most apparent aspect of transition from add to new media will be a change in advertisers mind-set concerning audience measurement
• counting eyeballs tuned to network program or purchasers of a magazine or NP os no longer adequate to prove the value and efficiency of companies ad investment
• Overlapping media ownership created competitive problems rather than cooperation among units

• Return to strong branding, with companies searching for means to differentiate their products and move away from price competition and generic selling
• Products that successfully build their brand images will enjoy the luxury of fewer price based promotions

• Marketing in this century will involve globalization and diversity
• understanding the language, culture, economy and political environment of countries throughout the world is already a prerequisite for most marketing executives
• multinational marketers will find that a locally orientated strategy for global marketing is essential

• successful advertising depends on the use of effective communication
• fundamental principle of good ad is that it must be built round the overall marketing plan and execute the communication elements of a more far-reaching arketing pogramm

• Overall goals of plan
• Marketing objectives -> must be cleary stated and measurable
• Marketing strategy -> general course of action to achieve your goals and objectives
• Situation analysis 
• Problems and opportunities
• Financial plan
• Research

• Overall goals of plan
• Marketing objectives -> must be cleary stated and measurable
• Marketing strategy -> general course of action to achieve your goals and objectives
• Situation analysis 
• Problems and opportunities
• Financial plan
• Research

1. Prospect identification
2. consumer motivations
3. advertising execution
4. advertising budget and allocation

Communication component of marketing is further devided into four primary categories

"The joint planning, execution and coordination of all areas of marketing communication"

• personal communication is the most effective means of persuadiing s.o.
• As a primary technique, personal selling is the most often used in B2B marketing

• extra incentive for customers to make an immediate purchase
• most extensive category pf promotional spending 
• saled activities that supplement both personal selling and marketing, coordinating the two and help to make them effective

• Communication with various internal and external publics to create an image for a product or corporation
• helps organization and its publics adapt mutually to each other
• primary benefit of PR is that it is perceived as higher audience credibility than ad
• key to successful PR is to view it as a complement rather than a competitor to ad
• PR and ad should work in concern to get the brand message to as many prospects as possible
• unlike ad, a PR message is ultimately controlled by media

• most successful brnads are those with features and benefits unique within a product category and those that hold a differentiated position un the minds of consumers
• It is ads job to turn product benefits into an attention getting story, that appeals to prospective buyers

• written or spoken part of trademark, in contrast to the pictorial mark, a trademark word
• established brand name that customers recognize and respect in one of the most valued assets of a company
• one of the principal uses of ad is to enhance brand familiarity awareness in the minds of consumers by emphasizing consumer benefits of a product

• new product introductions under an existing brnad to take advantage of existing brand equity
• fierce competition and the difficulty of entering new markets caused companies to consider brand extrntion rather than brand innovation as a strategy for product introduction
• problem of brand extension is that successful brands have defined a special picture in the mind of consumers

1. saving money by not needing to build awareness for a new unknown brand name
2. adding equity to an existing brand name with a successful extension

1. damaging a conebrand in the minds of loyal consumers with failed introduction
2. losing marketing focus on your existing brand and for diluting marketing efforts ad budget across several brands

• circumstance in which a target audience regards a product as different from others in the category
• meaningful product differentiation exists only if consumers perceive it as an important distinction
• when there are no real or perceived differences among brands, products are viewed as commodities and purchase decisions are based on the price
• important element of differentiation is keeping an open mind about how to achieve it
• often involves minor changes in either a product or the position communicated by ads
• too often when companies search for product differentiation, they concentrate on product function

• As companies set about to differentiate their products, they should remember that product differentiation is also a means of target marketing
• Firms have a special responsibility as they develop a brand-differentiation strategy. The best and most successful products demonstrate valuable differences from their competitors

• most often dictated by favorable consumer perceptions of the value of the product - partly created by ads
• primary function of ad is to create or enhance a positive gap between price of product and value the average consumer assigns to the product
• the greater this value gap is the more insulated the product is from the price competition
• concept of value gap emphazises the notion that price alone is not a particularly safe means of establishing a long-term, competitive advantage
• Yeald management: Product pricing strategy to control supply and demand

• Corporate preference for various segments of marketing communication channels -> as a number of major companies experiment with marketing through the internet, event marketing word-of.-mouth marketing and PR, we will continue to see a trend to supplement or replace dollars previousy spent in traditional ad media
• High sales volume tends to lower ad-to-sale ratios -> companieswith high sales volumes tend to spend less on ad as a percentage of sales
• industries with a number of competing firms and for extensive competition
• product categories with widespread competition and little perceived product differentiation -> high level of expenditures in the car industry reflects the degree of competition among major manufacturers as they try to maintain or enhance market share
• reversing sales market share declines -> ad is generally seen a tool to increase sales and expand customer usage, also used as defensive weapon to halt declines in market share and sales volume

• ad by marketers of a trademark product or service sold through different outlets in contrast to local ads
• tends to be general in terms of product information
• need of communication more closely with targeted consumers has caused national ads to take on a more personalized tone during the past decade

• the most important change in retailing is the more from local regional stores with anywhere from one to a dozen outlets to national chains operating throughout the country
• more and more the retail category is dominated by one or two retailers
• the move to national retailing has significant ramifications for NP and local radio stations -> NP are seeing a dramatic ad spending shifts as retailers move to national promotional plans

• building consumer demand by promoting ingredients in a product
• most commonly employed by manufacturers of ingredients used in consumer products
• successful end-prduct ad bulds a consumer demand for an ingredient that will help in the sale of product
• have to create meaningful differentiation for consumer purchase decisions

• any form of ad done indirect marketing
• uses all types of media: direct mail, television ...
• largest sector od direct response ad is direct mail

• one of the fastest-growing categories of ad and requires a much different strategy than consumer ad
• tends to be fact orientated with few of the emotional appeals found in consumer ad
• purchases in B2B tend to be fairly straight forward
• purchase decisions made by companies involves many people including those who do the actual buying those who directly or indirectly influence this decision and the employees who will actually use the product or service
• organizational and industrial products are often bought according to prelise, technical specifications that require significant knowledge about the product categoryon the part of both buyers and sellers
• impulse buying is rare

Trade ad

• ad directed to the whole sae or retail merchants or sales agencies through whom the product is sold
• emphasized product profitability and the consumer advertising support retailers will receive from manufacturers
• trade ad promotes products and services that retailers need to operate their busniess
• trade ad has several objectives

1. gain additional distribution
2. increase trade support
3. annouce consumer promotions

• adresses to manufacturers who buy machinery equipment, raw materials and the components needed to produce the goods they sell
• purchase of industrial equipment is usually a complex process that includes a number of decision makers

• directed at those in professions such as medicine law etc. who are in a position to recommend the use of a particular product or service to their clients