Advertising
Advertising refers to the promotion of products, services, or ideas through various media channels to attract and persuade potential customers. It plays a crucial role in influencing consumer behavior and creating demand for goods and services. In economics, advertising is a key component of marketing strategies and can impact market competition and consumer choices.
7 Key excerpts on "Advertising"
eBook - ePubMedia Economics
Applying Economics to New and Traditional Media
- Colin Hoskins, Stuart M. McFadyen, Adam Finn(Authors)
- 2004(Publication Date)
- SAGE Publications, Inc(Publisher)
...We begin, though, by providing context, with a brief introduction to the role of Advertising in a market economy. 11.1 The Role of Advertising in a Market Economy Advertising is both attacked as a monopolistic and wasteful practice and defended as promoting competition and lowering the cost that consumers pay for goods. But there are many different types of Advertising—all the way from ads for jobs in the classifieds, to ads that identify this week’s supermarket specials, to ads that announce the arrival of the next generation of computers (with all the technical details), to 30-second dramas that out-entertain the regular programming. Economists have explored three views of the role of Advertising in society: the persuasive view, the informative view, and the complementary view. The persuasive view of company Advertising is that it primarily affects demand for the firm’s product by changing tastes and encouraging brand loyalty. The advertised product then faces a less elastic demand curve so that Advertising is said to enable the firm to sell the same quantity at higher prices. The informative view of company Advertising is that it primarily affects demand for the firm’s product by conveying information. The advertised product then faces a more elastic demand curve so that Advertising is said to enable the firm to lower prices. An extension of this view says that even seemingly uninformative firm Advertising acts as a signal of higher quality products, so it plays a useful economic role. The complementary view of company Advertising is that it affects demand by exerting a complementary influence in the consumer’s utility function with the consumption of the firm’s advertised product...
eBook - ePubPrinciples of Advertising
A Global Perspective, Second Edition
- Monle Lee, Carla Johnson(Authors)
- 2013(Publication Date)
- Routledge(Publisher)
...There are a number of other factors to consider, such as product quality, price, and distribution effectiveness. Other experts view Advertising as a source of information for consumers, enabling them to choose among available products. The debate over Advertising's roles in the economy continues. Economists, scholars, and practitioners are divided over Advertising's influence on several economic elements, including pricing and competition. Does Advertising raise or lower the price that consumers pay for products? Does Advertising serve as a source of information or a barrier to enter the market? 8 SOCIAL FORCES AND Advertising The role of Advertising in society is controversial and has at times resulted in attempts at restricting or banning Advertising of certain products or to certain groups. The controversy rages on over whether tobacco and alcohol Advertising should be banned. These decisions involve very complex economic considerations as well as social issues. Distillers such as Seagram’, in defending the decision to advertise on television after a decades-old, voluntary liquor industry ban on television and radio Advertising, promised not to advertise during prime time and other hours when children are most likely to watch television and not to use messages or symbols (including Santa Claus) especially attractive to children. The company also promised to push for “responsible consumption.” However, antialcohol groups are foursquare against television ads for Absolut vodka, Johnnie Walker scotch, or any other liquor brands...
- Su Mi Dahlgaard-Park(Author)
- 2015(Publication Date)
- SAGE Publications, Inc(Publisher)
...Unlike other marketing communicationtools, Advertising can aid in achieving long-term objectives, such as brandor corporate image building or loyalty enhancement. For an Advertisingmessage to reach the target audience, the advertiser incurs a cost in termsof buying Advertising time (in broadcast media) or space (in print media andthe Internet). Usually, advertisers employ specialized firms (Advertisingagencies) to plan, produce, and disseminate a series of advertisements witha common theme (Advertising campaign). Advertising can be used to promote a firm’s services to end customers (e.g.,an ad for a restaurant targeted at prospective guests) in the context ofconsumer marketing or to existing and potential business clients (e.g., anad for a consulting firm targeted at other firms) in the context of businessmarketing. Key Concepts Key concepts related to Advertising include Advertising objectives,Advertising strategy, creative strategy, media strategy, Advertisingeffectiveness, and Advertising effects. Advertising Objectives Advertising objectives refer to the specific goals of an Advertisingcampaign, which are distinct from, yet at the same time contingenton, marketing objectives. For instance, a marketing objective for anew service might be to increase sales by 40%, while a correspondingAdvertising objective might be to raise brand awareness by 80%. Advertising Strategy Advertising strategy is the underlying rationale that guides theentire spectrum of more specific decisions regarding an Advertisingcampaign. Advertising strategy depends on objectives, and it furtherdictates creative strategy and media strategy. Creative Strategy Creative strategy is the aspect of strategy that refers to the exactmanner in which the Advertising message is encoded. Creativestrategy guides decisions such as the design and execution of verbalelements (e.g., slogan, body text) and audiovisual elements (e.g.,pictures, colors, music)...
eBook - ePubAdvertising, the Media and Globalisation
A World in Motion
- John Sinclair(Author)
- 2012(Publication Date)
- Routledge(Publisher)
...Chapter 1 Advertising as an object of study Advertising is the key link in the mutually-sustained global expansion of consumer goods and service industries and the media of communication which carry their commercial messages. In most countries of the developed and the developing world alike, the largest advertisers, many of them global corporations, have determined the direction and character of media development because of their demand for the means (that is, the ‘media’) which allow them to reach potential consumers. Media organisations thus stand or fall on their capacity to provide content which will attract such consumers as audiences, as the revenue from Advertising provides the major source of income for media owners, and motivates their business strategies. Understood in this corporate context, it is evident that it is Advertising which gives the aptly-named ‘commercial’ media their characteristic look and sound, and orients their content towards the kind of audiences which advertisers want to reach. Much more than the source of the images and brand names which form the surface of consumer culture, Advertising is actually the life-blood of commercial media, and the motive force behind media industry development. Yet, also to be taken into account is the intermediary role of Advertising agencies, which act as brokers of media time and space, as well as in their more obvious role of devising and implementing Advertising campaigns. This triumvirate of advertisers, media and agencies forms the institutional bedrock of consumer culture, an integrated relationship which may be referred to as the manufacturing/marketing/media complex. Manufacturing, marketing and media Not all advertisers are manufacturers, of course, for although it is goods of all kinds, from cars to shampoo, that dominate in Advertising content, there are important categories of service advertisers which are also prominent, notably retail and finance...
eBook - ePub- Pamela Riddle Bird(Author)
- 2011(Publication Date)
- For Dummies(Publisher)
...Chapter 19 Advertising Your Product Looking at what Advertising is Putting Advertising to use for you Expanding Advertising’s boundaries Going over some pointers T his story has been told in different versions through the years: A man wakes up in the morning after sleeping on an advertised bed, wearing his advertised pajamas. He bathes in an advertised tub, washes with advertised soap, shaves with an advertised razor, eats a breakfast of advertised juice, cereal, and bread (toasted in an advertised toaster) and glances at his advertised watch. He rides to work in an advertised car, sits at an advertised desk, uses an advertised computer, and writes with an advertised pen. Yet, this man hesitates to advertise, saying that Advertising doesn’t pay. Finally, when his business goes under, he advertises it for sale. The point, in case you missed it, is that most everything is advertised. And Advertising is everywhere. You, and every other consumer, respond to Advertising whether consciously or unconsciously. You, and every other entrepreneur, need to make use of this powerful tool. In this chapter, I tell you how. Exploring Advertising Basics Advertising serves a very basic function — it tells potential customers about your invention. People have to know that this marvelous product exists in order to buy it. Advertising is the way you communicate with other consumers, companies, and potential purchasers. The buzz term is marketing communications. These communications help you to keep in touch with your market and the community. You also get a chance to present your product, your image, and your message the way you want. You have complete control over what’s published, broadcast, and displayed, and you determine exactly where, when, and how often your product’s message appears, how it looks, and precisely what it says. Through your ads, you establish a unique identity for your company and product...
eBook - ePubFreedom of Expression
A critical and comparative analysis
- Vincenzo Zeno-Zencovich(Author)
- 2008(Publication Date)
- Routledge-Cavendish(Publisher)
...Advertising tends increasingly to inform the legal relations between businesses and clients. This phenomenon is for the moment confined to so-called consumer contracts, by which in various instances (such as package holidays and sale of goods) the obligations owed to the buyer are affected by the content of the Advertising that promotes the sale. It can be seen that this is a terrain on which the general theory of freedom of expression has no purchase and whose fundamental principles are to be found elsewhere. 5.2. Commercial Advertising as part of the market Not only is Advertising considered an integral part of the productive process, but due to the importance of the role it plays, it is subject to a particularly detailed and comprehensive regulatory discipline. This aims on the one hand to protect competition, and on the other to ensure that reliable information is given to potential users and purchasers of goods and services. In other words, a totally realistic, and hence economic, view of misleading Advertising prevails whereby it is suppressed for reasons of competition law and the general indifference (on the part of judges but also by most theorists) towards considerations of freedom of expression is usually because they are seen as a pretext used to justify denigration of competitors’ products or attempts to increase market share through unfair practices. Note that this does not merely apply to false data – to which expression of opinions does not apply – but also to purely suggestive communications. Of significance in this regard is the recent European ruling permitting comparative Advertising within certain limits. Meanwhile, issuing rules covering Advertising content is justified in the interests of correct market information. Such communication is not considered as the exercise of a freedom, but from the viewpoint of its functions and its effects...
eBook - ePubWhat's in a Name?
Advertising and the Concept of Brands
- David M Jones, Jan S. Slater(Authors)
- 2014(Publication Date)
- Routledge(Publisher)
...As a general rule, 1. Advertising contributes between 3 percent and 8 percent of a year’s sales value for most brands of repeat-purchase goods. 2. However, in virtually all cases, this sales value falls short of the annual cost of Advertising. Nevertheless, we cannot draw the operational lesson that a manufacturer can always increase his profit by stopping his Advertising. Advertising is a means of maintaining sales at a level that generates scale economies. These in turn lower the manufacturer’s cost; and because of competition much of this benefit is passed on to the consumer in the form of lower prices. Advertising therefore plays an integral role in enabling the manufacturer to make volume sales at a profit. An elimination of Advertising would mean a smaller sales volume at a higher cost per unit. There is another important point. The long-term effect of Advertising (discussed in chapter 8) can often be quantified, and it can in turn be added to the medium-term effect. When we do this, we discover that for many brands the Advertising cost is more than covered by the value of incremental sales when the medium-term and long-term effects of Advertising are aggregated. The Argument in Brief During the 1980s, as a result of an important development in the technique of collecting research data, it became possible to measure accurately the immediate effect of Advertising with a method that became known as Pure Single-Source research. The first broadscale research based on this method was carried out by A.C. Nielsen in the United States, and it has been replicated both in the United States and in a number of foreign countries. The research demonstrated that Advertising for a brand of repeat-purchase packaged goods can have a strongly positive effect on the sales of that brand in a period of up to seven days following an advertisement’s exposure...
