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The Evolution of Promoting and Advertising Brands. Chapter 3 with Duane Weaver. Outline. Rise of Capitalism Manufacturer’s 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.

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  • Rise of Capitalism
  • Manufacturer’s 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
Rise of Capitalism
  • Industrial Revolution
    • …basic force behind the rapid increase in mass-production 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?
manufacturer s pursuit of power
Manufacturer’s pursuit of power
  • Manufacturer’s attempt to gain power over the distribution channel by building brand demand.
  • Takes consumer’s 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
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 1920’s
    • “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
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 economy…ads 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
The ’00s: More Hip Ads and More Technology (2001 – present)
  • Ads seen as ads…self-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
Discussion Questions:
  • Why is advertising an essential feature of capitalistic economic systems?
  • What forces do you think will continue to affect the evolution of advertising?
  • Social Aspects
  • Ethical Aspects
  • Regulatory Aspects
  • Industry Self-Regulation
  • Discussion
social aspects
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
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
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
Industry Self-Regulation
  • E.g.: NARB (National Advertising Review Board) affiliated with BBB (Better Business Bureau).
  • Internet
  • Consumers
  • Should Advertising be regulated?
  • Can it be effectively managed and who should be responsible for the social and ethical management of advertising?