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1、Unit 2. The Evolution of AdvertisingWhat Makes an Ad Great The Primitive AgeHumans lived in small, isolated groups and focused on basic psychological and safety needs, bartering among themselves.barteringI. The Preindustrial Age (recoded historybeginning of 19th century)1. Population growth made the
2、 marketplace more complex. carved signs Signsprinting pressThere are four very influential inventions that have shaped the media and thus the advertising industry - the printing press, radio, television and the Internet.The printing press made the wide dissemination of information with words on pape
3、r possible, mainly advertisements in newspapers and magazines. Selling material had to be created and advertising agencies were born.2. Chinese invented paper. Europe had its first paper mill in 1275. Johannes Guttenberg invented the printing press in the 1440s. 3. The creation of a new advertising
4、media: (printed posters, handbills, and newspapers)A handbill in 1472Illustrations in ads by Benjamin Franklin the father of advertising art II. The Industrializing Age (1750s 1920s) Manufacturers gained the ability to mass produce goods with uniform quality, and mass production required mass consum
5、ption.Breakthroughs in bulk transportation.Innovative manufacturers use mass-media as a way to stimulate demand for their products.1841, Volney B. Palmer, the first agent in Philadelphia, contracted with newspapers to receive discounts on newspaper space.N.W. Ayer & Son, of Philadelphia, became to f
6、irst agency to offer the services of planning, creating, and executing complete campaigns for advertisers.Birth of Mass Consumption In1890The invention of photography in 1839 showed products, places, and people as they really were. The telegraph, telephone, typewriter, phonograph, and later, motion
7、pictures, all let people communicate as never before. Public schooling led to a 90 percent literacy rate.III. The Industrial Age (1900s1970s)Manufacturers shifted focus from production orientation to sales orientation that promoted brand.Benefits of Chewing Scientific AdvertisingWritten by the legen
8、dary copywriter Claude Hopkins, published in 1923.He proclaimed: Advertising has reached the status of a science, it is based on fixed principles.Radio produced in 1920.For the first time, advertising could be heard, not just seen. 1929, The Great Depression and advertising expenditure collapsed.Dan
9、iel Starch, A.C. Nielsen and George Gallup founded research companies to study consumer attitudes and behavior.Product Differentiation The first television program was broadcast in 1941, and television grew rapidly after the end of WWII. The golden era of advertising in the 40s and 50s was marked by
10、 a consumer society. A Silver Ghost Rolls-Royce, 1907Advertising Strategies1. Product differentiation.Each brand sought to sell the public on its own special qualities, to portray their brands as different from and better than the competition by offering consumers quality, variety, and convienience.
11、 Rosser Reeves (Ted Bates Agency) extended the Lasser and Hopkins reason why to the Unique Selling Proposition (USP). 2. Market SegmentationIn the beginning, all products talked about Quality, Variety, and Convenience All things to all peopleMarket SegmentationCadillac Volkswagen Marketers search fo
12、r unique groups of people whose needs could be addressed through more specialized products.(Shift from Product Feature to Brand Image and Personality)3. PositioningVolkswagen Positioning strategy proved to be an effective way to separate a particular brand from its competitors by associating that br
13、and with a particular set of customer needs that ranked high on the consumers priority list. Thus, it became a more effective way to use product differentiation and market segmentation. Positioning Strategy/Brand Separation7-UpThe “UncolaPositioning Strategy/Brand SeparationAvis“We Try HarderIV. The
14、 Post-Industrial Age (1980s 2000)Demarketing arrived in the 1980s as people became aware of the sensitive environment in which we live.The end of the Cold War led to a series of megamergers to seek new untapped markets.Increased product competition put the emphasis on consumer service. Branding beca
15、me important again. Brand PromiseLuxuryPerformanceSafetyFreedomV. The Global Interactive Age Advertising expenditures grew rapidly due to an improved economy and a desire for business expansion. Computer technology gave advertisers new media for reaching potential customers. Advertising has become a
16、 major factor in improving the standard of living around the world.Television, Radio and Paper Advertising (Newspapers and Magazines)The traditional forms of advertising that existed before the Internet was released to the public in 1994 have lost their weight in todays virtually connected world. Br
17、oadcasting a message to everyone in the world was nearly impossible not too long ago. Global exposure was only available for things like the Olympics or some news item that caught on in the press.The Power of the InternetNow, anyone with an idea can release it on the Internet for free and it has the
18、 potential to be read by everyone in the world that has an Internet connection. Blogging systems, websites and other publishing methods are available to anyone with something to say at a cost of nothing to near nothing. The problem now is that there is so much information available that getting your
19、 message noticed is difficult at best and near impossible at worst.Economics:Functions and Effects of AdvertisingCommunicate Product Features and AvailabilityIncrease Product UseBuild Value, Brand Preference, & LoyaltyReduce Overall Sales CostInduce Customers to Try Products & Suggest ReuseStimulate Product DistributionIdentify & Differentiate Products (Branding)Advantages of AdvertisingIt allows the consumer to discover and analyze products.Provides economic support for the media.Improves products through competition.Advertising is a regulated indust
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