Deck 12: Advertising

Question 1

In what ways can an ad be false

Answer 1

An Ad or advertisement refers to anything that draws people's attention and helps them in identifying the existence and features of the advertiser's products. Ads are used as a medium for displaying the Unique Selling Proposition of the products being offered in the market.
However, ads can be misleading or false altogether. The advertising industry strives only on promises, and if the promise made is false, it would make the entire advertisement false. The ways in which ads could be false are as follows:
• There are implied benefits of products, for example, some commercials claim that using their product makes one pretty or more attractive. This is referred to as the "If then" strategy.
• Then there is an "If not" in which if one doesn't buy a product one wound not get the best look or any utility that it may provide. Thus, pushing customers to buy their products in either way possible.
• The basic nature of advertising is exaggeration , which teeters on the brink of lying, thus, people are often misled or confused about what is real and what is not.
Therefore, advertisements are considered to be intrusive, and thus, can be false sometimes.

Question 2

What are the departments in a typical advertising agency What does each do

Answer 2

Advertisements are produced by Advertising Agencies that develop, and virtually all buy time and space in various media for their clients. Most of the advertising agencies have around six well developed departments at their disposal, in which each department significantly contributes in the making of an ad.
A typical advertising agency has the following departments:
1. Administration - It comprises and manages the management and accounting operations.
2. Account management - It is handled by an account executive who manages the clients, keep communication flow going between the agency and the client.
3. The Creative Department - The department in which an idea is incepted and created into an advertisements. It involves copywriting, graphic design, and often the actual production of piece, for example, Radio.
4. The Media department - The department which decides where and when to place ads based on time, space, and also the budget of the agency.
5. Market research - It tests the products, effectiveness of the ads, and the appropriate markets, often through focus groups; for the purpose of assessing their viability.
6. Public relations department - Encompasses all PR activities needed.

Question 3

What are the different categories of advertising and the goal of each

Answer 3

The advertising produced and placed by ad agencies are classified according to the purpose of the advertising and the target marketing. Following are the categories of advertising along with their respective goals:
1. Institutional/Corporate advertising - Promotes corporate and brand image.
2. Trade/Professional advertising - Promotes volume, marketing, support, profit potential, distribution plans, and promotional opportunities for retailers.
3. Retail advertising - Typically local ads for retailers, department, grocer, and drug stores for instance, to sell products to customers.
4. Promotional Retail advertising - "Retail" ads placed to promote a specific event such as black Friday.
5. Industrial advertising - Business to business advertising towards a particular industry often through publications designed for said industry.
6. National consumer advertising - Made of national ads for chains and large retailers, often placed on television and in popular magazines.
7. Direct marketing advertising - It is also called targeted marketing; seeks to personalize and qualify end users before marketing to them. Zip codes, credit purchases, and organizational memberships can be used to qualify potential clients.
8. Out -of-home advertising - Basically public space advertising comprised of billboards, signage, transit vehicle wraps, kiosks, and any other ad one might see while walking or driving.
9. Public service advertising - Promotes organizations and themes of importance to the public, often for non-profits.

Question 4

What is a cease-and-desist order Corrective advertising Puffery

Question 5

What are copy testing, consumer juries, forced exposure, recognition tests, recall testing, and awareness tests How do they differ

Question 6

What is a prosumer How do prosumers change the relationship between advertisers and their audience

Question 7

In what two ways do consumers express dissatisfaction How does this affect contemporary advertising

Question 8

What are demographic and psychographic segmentation

Question 9

If you owned an advertising agency, would you produce advertising aimed at children Why or why not

Question 10

Why are we seeing so many ads in so many new and different places

Question 11

If you were an FTC regulator, to what extent would you allow puffery Where would you draw the line between deception and puffery Give examples.

Question 12

Why do some people consider advertising to children unethical and immoral

Question 13

What do you think of the exit-voice dichotomy of consumer behavior Can you relate it to your own use of advertising If so, how