Advertising free essay sample

The ads boasted that Ivory soap was 99. 44/100 percent pure and encouraged people to tell the company what they thought about the product. Before long, PGs Cincinnati headquarters was deluged with responses from satisfied Ivory Soap users. Thus, a modern advertising giant was born. For decades, P;G has been among the worlds leading advertisers (its SSL . 7 billion advertising spending in 1 999 ranked second only to General Motors). In 1933, created the radio soap opera as a icicle to promote its Godly brand laundry detergent.In a typical 15-minute program, the name Godly was mentioned about two dozen times. Within a year, sales of the product had doubled. In the sass, P;G turned to television and was sponsoring 1 3 nationally televised soap operas by the middle of that decade. By the 1 9705, characters from P;G ads had become pop culture icons. You may remember Mr.. Whipped, who pleaded with shoppers not to squeeze the Charming, or Rosier the waitress, who always ad a roll of Bounty towels to clean up any spill. We will write a custom essay sample on Advertising or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page A 1985 survey showed that 93% of female shoppers recognized the smiling face of Mr.. Clean while only 56% could identify then Vice President George Bush. Statement of the problem: When an analysis is done carefully, they may find a need to do more TV, more traditional media, not less? Reaction: P;G is popular in our country because of their strong advertisements. P;G has been among the worlds leading advertisers. Their very careful with its ad placement, taking avoid controversial arrogating this tactics help lead to the top and become very successful. PG must continue advertising using TV ads because it may help them to get customers attention and increase more profits. Advertising a product is very helpful to a company, it can attract customers the products you are selling. Advertising helps increase of the product by showing the positive image of the product which in turn helps convincing the customer to buy it. Mass media is very important, it makes your product popular. Advertising free essay sample Ads for reputable companies almost never lie. They have to be able to prove what they say to their own corporate counsel, the ad agencys VAÂ »years, the networks approval committees and to any number of regulating bodies like the FDA and the ETC. With at least five different government agencies looking over our shoulder, the cost of being caught cheating IS simply too high. In addition, the individuals inside a company want to be able to look at themselves in the mirror. Some like to think of business people as belonging to some other species, but remember that most of them are you a few years from now.So we tell the truth but not always the Whole Truth. Eke lawyers, our job is to put our clients in the best light. When you go on a bob interview or a first date, you dont assume a false identity but you probably dont make a full disclosure either. We will write a custom essay sample on Advertising or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Chances are you keep your lactose intolerance and foot odor issues in the background, and save your Federation Starlets uniform for later in the relationship if there IS a later. For a company trying to sell something, an ad is like getting a job interview with millions of people all at once.The ad wants to make a good first impression and really, really doesnt want to make people mad. But different people react differently. During the 2000 Super Bowl, millions of people saw he following commercial for Christopher Reeve walking again. Some of us saw an uplifting message of hope. Some saw a cynical company manipulating peoples hope to make a buck. Still others many of them with disabilities saw an ad that gave false hope. What did you see? Its an axiom in advertising that when you do something bold, its likely to polarize your audience.And big events like the Super Bowl or the Olympics make advertisers bolder. You can tell the ad agency really enjoyed creating the horror movie spoof with an Olympic runner. This Mike commercial ran during the 2000 Olympics. But this immemorial received over 2,000 complaints. Mike heard them and killed the spot and unlike Freddie Kruger, this ad stayed dead! A lot of people question the ethics of selling consumers things they dont need which presupposes that we shouldnt have the things we dont need but want anyway. We dont need 90% of the stuff in our apartments.We dont need artwork, among other things. Neanderthals didnt need cave paintings, but they sure brighten up a grotto. Why did so many of us bring bottled water that we paid for into this meeting room today, when carrying a canteen of tap water is so much more Cantonal? Advertising, like human beings, lives where Reason meets Desire. Years ago, The Coca-Cola Company invented a better product. No consumer product had ever been so thoroughly tested with so many consumers. This new Coke was provably much better. But consumers not only didnt buy it, they demonstrated against it.Because a lot of what they loved about real Coke wasnt inside the bottle. It was the idea of Coke and their experiences with it and how those experiences were connected to so much of what we imagine life in America should be like. Advertising isnt just about the things we buy. Its about how we feel about things, including ourselves. Thats what makes it interesting. Cause-related marketing Speaking of feelings, 80% of Americans say they feel better about companies that are aligned with social issues. Two thirds of us say wed be inclined to switch to a brand that we identify with a good cause.Its why American Express put on the Tribes Film Festival in lower Manhattan to help bring people back to the area after September 1 lath. Wall-Mart focuses on community efforts of their associates and stores. General Mills Spoonfuls of Hope campaign features Lance Armstrong promoting cancer research. Johnson Johnson always at the top of polls as a socially responsible company has been running a campaign to help promote nursing as a career: Does the extra business and good will these companies stand to gain compromise the good that the causes do?What are the ethics of enlightened self-interest? Not long ago a major advertiser donated a quarter-million dollars in food aid to Bosnian in the wake Of the war there. By all accounts, the aid did a lot of good. Later, the company spent over a million dollars to advertise their good deed to American audiences. What decision would you have made? Tobacco Advertising Ronald Reagan once appeared in ads touting the health benefits of a cigarette brand. Times have changed. Now the space in which tobacco can be promoted in any form is growing more restricted every day.And tobacco isnt the only legal and potentially lethal product that poses ethical, not to mention public policy questions for us. Ad agencies and individual advertising people make their own decisions about categories like tobacco and guns. Many say, No, thanks to working on certain businesses. But would you turn down the Kraft Macaroni and Cheese assignment because another division of he same corporation makes Marlboro? Thats a tougher question. Alcohol There are hundreds of beer commercials on the air, but not one of them shows somebody actually drinking the beer.Does that make them more ethical? And although theres the same amount of the same chemical in a can of Bud and a shot of Jack Daniels, you dont see hard liquor advertised on television. In the case of alcohol, advertisers themselves have made these ethical choices. But do they make rational sense? The Mothers Against Drunk Driving (MAD) probably dont make the same distinction between beer and bourbon that advertisers do. Incidentally, advertising people working for free because they believe in the cause create Mads ads. Ad folk like to work pro bono for nonprofits and good causes.Public service campaigns, including anti-smoking messages, got over $1. 5 billion dollars in free media last year. Altogether, theyd be the fifth largest advertiser. The ethical issue isnt the alcohol in the product, its the brand name on the bottle (Sunroof Ice). When I say the word Sunroof, what do you think of? youre not alone. A rival company says this commercial is misleading you because theres no vodka in Sunroof Ice. Its a malt beverage. Does the name Sunroof mean Vodka or is it just a name? Many of you are in the target audience.Are you being fooled here? And if you thought Sunroof Ice contained vodka, did you also think it contained ice? You dont have to take time from your studies to decide this case. As we speak, its being examined by the TAFT (Federal Bureau of Alcohol, Tobacco and Firearms). Condoms assume these are not unfamiliar to you. Should they be advertised? Most networks wont accept condom ads because they might offend certain audiences. Even where condom ads are okay, there are ethical choices to aka about what kind of product demonstration is appropriate.And in what context? One example of context is that people in condom ads usually wear wedding rings. Because even though the biggest market probably lies outside the Marital Bed, the truth about where all those condoms are really going raises some touchy issues. If you were the Creative Director on the Trojan account, is that an ethical issue? Do you show the real truth and take the consequences? Children Society imposes context on advertising ethics all the time especially in advertising that involves children. Heres a commercial for childrens Hampton.On behalf of Society, can you see whats wrong with this message? The problem isnt something in the spot its whats missing. There is no adult supervision shown around the swimming pool. The Childrens Advertising Review Unit (CARR) of the Better Business Bureau (EBB), which also monitors kids programming, requires that adults be shown supervising children when products or activities could be risky. So LOreal changed the commercial to model good parental behavior. Score one for Society. Another commercial for Aim toothpaste showed a child who went to the bathroom in a museum to rush her teeth.Good hygiene or not, it had to be taken off the air when teachers complained that theyd never, ever, let a child leave the group unattended. Advertisers spend most of their waking hours trying to anticipate what their audiences will want and how theyll react. We try our best, but sometimes we miss. Pharmaceutical advertising Information is ethically neutral. In an academic setting like this, we welcome more information because the marketplace of ideas enables individuals to form their own judgments which brings us to advertising about prescription drugs.Not long ago, only a doctor could tell you about a new medicine. You probably never heard of it before you walked in; you didnt know if it was the only one in the world or one of dozens that did pretty much the same thing. Now advertisers spend millions of dollars telling you about their medicines. Advertising puts more information in peoples hands. Studies show that drug ads raise awareness of some conditions so more people seek treatment. And they know more about their options before seeing the doctor. Thats good, right? But of course the drug companies dont advertise their cheapest products.They promote the big moneymakers. Theres more information out there, but it comes with a heavy dose of Point-of-View. Sometimes there are two points of view in the same commercial. The FDA requires that, if you promote the benefits of your medicine, you must also reveal any sign efficient risks or side effects. So we have them to thank for the now legendary disclaimer for a weight-loss drug. The medicine worked miracles, but the company was also obliged to mention its unpleasant side effects, with the result that the drug turned into a national joke! Does more information elevate the national dialogue?Product placement What are the ethics of advertising that doses t look like advertising? In a movie chase scene, the hero and the bad guy are going to need some kind Of car to drive. In the theatre we have no way of knowing whether the director chose those cars because they fulfilled his artistic vision or because the car manufacturer made a deal with the producer. The car people get exciting exposure for their brand and she saves a nice piece of change on her production budget. Audiences like realism in movies. Made-up brands break the spell because theyre obvious fakes.But the difference between omitting thats just a prop and something thats a product promotion is getting murkier all the time, on TV shows as well as movies. This kind of product placement happens in real life, too. If you go out to a club tonight, you might see some particularly good-looking young people using a new kind of cell phone. It lets them shoot pictures of people to their friends across the room: Heres a cute guy want to come and meet him? Fun stuff like that. If youre curious, maybe theyve taken your picture and theyll be happy to show you the phone and let you try it. The phone is very cool.And the people are hat advertisers call aspirations because theyre way cooler than you are. Theyre people you want to be. Theyre also actors and this is a gig for them. Their job is creating the impression that using this phone is The Next Trend. If you ask them directly if they are actors, they wont lie. But if you dont ask, they wont tell. This is the reverse of the Volvo Story. Voles demonstration was rigged, no question, but what viewers saw on TV was the truth. With this cell phone, the demonstration is the absolute truth, but the scene in the club is pure theater. (Note: This new guerrilla marketing campaign for SonyEricson has received a great deal of negative publicity already for being deceptive in its approach. ) Subliminal advertising Theres one more thing I know you want me to talk about. If you believe subliminal advertising exists, you dont any more because I embedded a convincing subliminal denial in this talk. In case you missed it, subliminal advertising is one of those urban legends. Try this experiment. Take a photograph of a glass of ice water or the beverage of your choice and make a fake ad out of it. Then invite people in your Psych department to find the subliminal messages in your ad. They wont disappoint you. Advertising free essay sample Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement Advertising is praised but also criticized by critics in their own ways. Advertising has many positive impacts along with its negative pictures. Advertising is something else. It is not related to studies, but it educates. It is not a journalist but gives all information.And it is not an entertaining device but entertains everyone. John O Tool , President of American Association of Advertising Agencies The Asia economic principles that guided the evolution of advertising also have social and legal effects. When they are violated, social issues arise and the government may take corrective measures. Society determines what is offensive, excessive, and irresponsible; government bodies determine what is deceptive and unfair. To be law-abiding, ethical, and socially responsible, as well as economically effective, advertisers must understand these issues. We will write a custom essay sample on Advertising or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Social role of Advertising: There are some positive and some negative aspects of advertising on the social ground. They are as follows. Deception in Advertising: The relation between the buyers and sellers is maintained if the buyers are satisfied with what they saw in advertise and what they got after buying that product. If seller shows a false or deceptive image and an exaggerated image of the product in the advertisement, then the relation between the seller and buyers cant be healthy.These problems can be overcome if the seller keep their ads clean and displays right image of the product. The Subliminal Advertising: Capturing the Minds of the consumers is the main intention of these ads. The ads are made in such a way that the consumers dont even realizes that the d has made an impact on their minds and this results in buying the product which they dont even need. But All ads dont impress all consumers at all times, because majority of consumers buy products on basis of the price and needs.Effect on Our Value System: The advertisers use puffing tactics, endorsements from celebrities, and play emotionally, which makes ads so powerful that the consumers like helpless preys buy those products. These ads make poor people buy products which they cant afford, people picking up bad habits like smoking and drinking, and buy products just because their favorite actor endorsed that product. This affects in increased the cost of whole society and loss of values of our own selves. Offensiveness: Some ads are so offensive that they are not acceptable by the buyers.For example, the ads of denim jeans showed girls wearing very less clothes and making a sex appeal. These kinds of ads are irrelevant to the actual product. Btu then there is some ads which are educative also and now accepted by people. Earlier ads giving information about birth control pills was considered offensive but now the same ads are considered educative and important. But at the last, there are some great positive aspects which help * Development f society and growth of technologies * Employment * Gives choices to buyers with self interest * Welcomes healthy competition * Improving standard of living. Give information on social, economical and health issues. In their constant quest to attract consumers and associate products with cool or luxurious and hedonistic lifestyles, some advertisers have consistently pushed the boundaries of what is ethically and socially acceptable. American advertising has always embraced erotic suggestiveness while usually staying clear of full nudity and explicit sexuality. Campaigns that lure that distinction often arouse controversy and even protest. For two decades, the most notorious purveyor of sensual cool was Calvin Klein?beginning in the late sass with the nothing comes between me and my Callings campaign featuring Brooke Shields and culminating in 1 asss kiddies-porn controversy. Kelvins racy advertisements provoked the ire of conservative groups but earned him the respect of edgier critics who viewed his campaigns as artistically ironic. In the end, the controversies benefited Klein, as the media firestorm provided free publicity for his brand name and underscored the sophisticated cool of the campaigns.Since the millennium, however, the mantle of most controversial advertiser has passed from Klein to trendy teen retailer Firebombed and Fitch (AF). A subsidiary of The Limited since 1 988, flirted with controversy in the early sass, when a black-and-white print ad, ostensibly featuring a father and son on a boating outing, was misinterpreted as a gay couple. Capitalizing on the angle, AF hired iconic sass fashion photograp her Bruce Weber, who had been responsible for some of the steamier Calvin Klein images, as the ironical photographer for the AF Quarterly, a hybrid catalog and lifestyle magazine, known as a maggot. According to Quarterly contributor Sean Collins, the maggot was intended as an outside-looking-in fantasy version of college life? that parodied the idealized life of leisure, while at the same time celebrating that ideal for its very maintainability. The magazine originally featured pseudo-adult photographs of hunky, undressed young adult men, but as it became increasingly popular in campus Greek culture, it began featuring under- and undressed women as well, in increasingly suggestive sexual situations.The publications articles, sexually explicit but often tongue-in-cheek, underscored this sex and games attitude. Although opposition always existed toward Weepers erotic photographs, the explicit articles bred controversy, particularly as it was hard to see what they had to do with the clothing. A feature article on alcohol consumption, called Drinking 1 01 caught the attention of Mothers Against Drunk Driving, and the magazines 1999 issue Naughty or Nice prompted Illinois Lieutenant Governor Chorine Wood to call for a boycott of the retailer for peddling soft porn in the guise of a clothing catalog.In 2002-2003, the company faced two public relations problems regarding ethnically insensitive T-shirt designs and racial discrimin ation in hiring practices. So when controversy over the Quarterly broke out again, in December 2003, this time over an article on group sex, the company finally reformatted the maggot and introduced a new publication for summer 2004, Magazine, which focused exclusively on artistic photographs of models wearing AF clothing. The outcry over the Quarterly occurred in spite of the fact that the maggot was sold in a wrapper labeling it as for over 18 and required identification to arches. Although containing no full-frontal nudity and only marginally raunchier than magazines like Maxim and Stuff, the confusion of the soft- porn genre with conventional advertising seemed particularly distressing to conservative critics like the National Coalition for the Protection of Children and Families, who claim that the company uses clothing to sell a sexual philosophy. Especially since the target market is teens and young adults, the advertising is viewed as transgressing the proper place of marketing.Critics claim it reverses the conventional purpose of ads, using the clothing to sell he lifestyle rather than invoking the lifestyle to sell the clothing. But as with the Calvin Klein ads, the impact of controversy on brand-name recognition is sometimes worth the risk to the corporate image: Firebombed and Bitchs profits were up for the second quarter of 2004, and copies of the last issue of the AF Quarterly fetch up to $100 on eBay. And although the lifestyle depicted may not be popular with certain groups, the clothes themselves have achieved the status of uniform among preppy suburban youth.In advertising, it seems generating controversy is a sure way to be seen. The Many Controversies about Advertising Advertising is one of the most visible activities of business. By inviting people to try their products, companies risk public criticism and attack if their advertising displeases or offends the audience or if their products dont measure up to the advertised promise. Proponents of advertising say Its therefore safer to buy advertised products because, when a companys name and reputation are on the line, it tries harder to fulfill its promises (especially when it lists product benefits).Advertising is both applauded and criticized not only for its role in selling products but also for its influence on the economy and on society. For years, critics have denigrated advertising for a wide range of sins?some real, some imagined. John Tool, the late chair of Foote, Cone Belling and president of the American Association of Advertising Agencies, pointed out that many critics attack advertising because it isnt something else. Advertising isnt journalism, education, or entertainment?although it often performs the tasks of all three.To go back to Albert L askers original definition, advertising is salesmanship in print (or in todays parlance, in the paid space and time of mass media). As a means of communication, advertising shares certain traits of journalism, education, and entertainment, but it shouldnt be judged by those standards. Sponsors advertise because they hope it will help them sell some product, service, or idea. Notwithstanding Toddles articulate defense, many controversies still swirl around the whole field of advertising. Some of them focus on advertisings economic role.For example, how does advertising affect the value of products? Does it cause higher or lower prices? Does it promote competition or discourage it? How does advertising affect overall consumer emend? What effect does it have on consumer choice and on the overall business cycle? Other controversies focus on the societal effects of advertising. For instance, does advertising make us more materialistic? Does it force us to buy things we dont need? Does it reach us subliminally in ways we cant control? How does it affect the art and culture of our society?Does advertising debase our la nguage? From these economic and social controversies, new questions arise regarding the responsibility for and control of advertising. What is the proper role for participants in the marketing process? How much latitude should marketers have in the kinds Of products they promote and how they advertise them? And what about consumers? Dont they have some responsibility in the process? Finally, what is the proper role of government? What laws should we have to protect consumers? And what laws go too far and violate the marketers freedom of speech?These are important questions, and there are no simple answers. But debate is healthy. This chapter addresses some of the major questions and criticisms about advertising, both the pros and the cons, and delves into the regulatory methods used to remedy advertisers abuses. He underlying principle of free-market economics?that a society is best served by empowering people to make their own decisions and act as free agents, within a system characterized by four fundamental assumptions: self-interest, many buyers and sellers, complete information, and absence of externalities (social costs).This fundamentally utilitarian framework, derived from the goal of society to promote behaviors that foster the greatest good for the most people, offers a system of economic activity?free enterprise?that has accomplished that goal better than any other economic system in history. This is why societies around the world are increasingly adopting free- enterprise economics. Economic role of Advertising economic effect of advertising is like the break shot in billi ards or pool.The moment a company begins to advertise, it sets off a chain reaction of economic events. The extent of the chain reaction, although hard to predict, is related to the force of the shot and the economic environment in which it occurred. Its no coincidence that the level of advertising investment in a country is directly proportional to its standard of living. Marcel Plainclothesmen, the father of modern F-ranch advertisements of Products:The advertised products are not always the best products in the market.There are some unadvertised products also present which are good enough. But advertising helps increase value for the products by showing the positive image of the product which in turn helps convincing customers to buy it. Advertising educates consumers about the uses of the products hence increasing its value in minds of the consumers. For e. G. Mobile phones were first considered as necessity but nowadays the cell phones come with number Of features which makes them mode Of convenience for consumers.Why do most people prefer Coca-Cola to some other cola? Why do some people prefer Calvin Klein underwear to some other unadvertised brand? Are the advertised products functionally better? Not necessarily. But, in the mind of the consumer, advertising has given these brands added value. I I Effect on Prices: Some advertised products do cost more than unadvertised products but the vice versa is also true. But if there is more competition in the market for those products, the prices have to come down, for e. G. , canned juices from various brands.Thus some professional like chartered accountants and doctors are not allowed to advertise. But some products do not advertise much, and they dont need much of it and even their prices are high but they are still the leaders in market as they have their brand name. E. G. , Propose cars Effect on consumer demand and choices: Even if the product is heavily advertised, it does not mean that the demand or say consumption rates will also increase. The product has to be different with better quality, and more variety than others. For E. G. Kellogg cornflakes have variety of flavors with different ranges to offer for different age groups and now also for people who want to loose weight thus giving consumers efferent choices to select from. Effect on business cycle: Advertising no doubt helps in employing more number of people. It increases the pay rolls of people working in this field. It helps collecting more revenues for sellers which they use for betterment of product and services. But there are some bad effects of advertisements on business cycle also. Sometimes, consumer may find the foreign product better than going for the national brand.This will definitely effect the production which may in turn affect the GAP of the country. The economic aspects are supported by the Abundance Principle which says producing more products and services than the consumption rate which helps firstly keeping consumers informed about the options they have and secondly helps sellers for playing in healthy and competitive atmosphere with their self interest. Value of Products In the mid-1 sass, a famous psychologist named Ernest Ditcher asserted that a products image, created in part by advertising and promotion, is an inherent feature of the product itself.Subsequent studies showed that while an ad may not address a products quality directly, the positive image conveyed by advertising may imply quality. Moreover, by simply making the product better known, advertising can make the product more desirable to the consumer. In these ways, advertising add s value to the brand. Thats why people pay more for Buffering than an unadvertised brand displayed right next to it?even though all buffered aspirin, by law, is functionally the same. Advertising also adds value to a brand by educating customers about new uses for a product.Kleenex was originally advertised as a makeup remover, later as a disposable handkerchief. ATT first promoted the telephone as a necessity and later as a convenience. One advantage Of the free-market system is that consumers can choose the values they want in the products they buy. If, for example, low price is important, they can buy an inexpensive economy car. If status and luxury are important, they can buy a fancy sedan or racy sports car. Many of our wants are emotional, social, or psychological rather than functional.One way we communicate who we are (or want to be) is through the products we purchase and display. By associating the product with some desirable image, advertising offers people the opportunity to satisfy those psychic or symbolic wants and needs. In terms of our economic framework, by adding value to products, advertising contributes to self- interest?for both the consumer and the advertiser. It also contributes to the number of sellers. That increases competition, which also serves the consumers self-interest Effect on Prices If advertising adds value to products, it follows that advertising also adds cost, right?And if companies stopped all that expensive advertising, products would cost less, right? Wrong. Some advertised products do cost more than unadvertised products, but the opposite is also true. Both the Federal Trade Commission and the Supreme Court have ruled that, by encouraging competition, advertising has the effect of keeping prices down. That again serves the consumers self-interest. And that is why professionals such as attorneys and physicians are now allowed to advertise. Sweeping statements about advertisings positive or negative effect on prices are likely to be too simplistic.We can make some important points, though: * As one Of the many costs Of doing business, advertising is indeed paid for by the consumer who buys the product. In most product categories, though, the amount spent on advertising is usually very small compared with the total cost of the product *Advertising is one element of the mass-distribution system that enables many manufacturers to engage in mass production, which in turn lowers the unit cost of products. These savings can then be passed on to consumers in the form of lower prices. In this indirect way, advertising helps lower prices. In industries subject to government price regulation (agriculture, utilities), advertising has historically had no effect on prices. In the 1 sass, though, the government deregulated many of these industries in an effort to restore free-market pressures on prices. In these eases, advertising has affected price?usually downward, but not always. * In retailing, price is a prominent element in many ads, so advertising tends to hold prices down. On the other hand, national manufacturers use advertising to stress features that make their brands better; in these cases advertising tends to support higher prices for their brands.Effect on Competition Some observers believe advertising actually restricts competition because small companies or industry newcomers cant compete with the immense advertising budgets of large firms. Its true that intense competition does tend o reduce the number of businesses in an industry. However, some Of the firms eliminated by competition may be those that served customers least effectively. In other cases, competition is reduced because of mergers and acquisitions (big companies working in their own self-interest). High costs may inhibit the entry of new competitors in industries that spend heavily on advertising.In some markets, the original brands probably benefit greatly from this barrier. However, the investments needed for plants, machinery, and labor are of far greater significance. These are typically the real barriers to entry, not advertising. Advertising by big companies often has only a limited effect on small businesses because a single advertiser is rarely large enough to dominate the whole country. Regional oil companies, for example, compete very successfully with national oil companies on the local level. In fact, the freedom to advertise encourages more sellers to enter the market.And weve all seen non-advertised store brands of food compete very effectively with nationally advertised brands on the same grocery shelves. Effect on Consumer Demand The question of advertising effect on total consumer demand is extremely complex. Numerous studies show that promotional activity does affect aggregate consumption, but they disagree as to the extent. Many social and economic forces, including technological advances, the populations educational level, increases in population and income, and revolutionary changes in lifestyle, are more significant. For example, the demand for CD players, cellular phones, and personal computers expanded at a tremendous rate, thanks in part to advertising but more to favorable market conditions. At the same time, advertising hasnt reversed declining sales Of such items as hats, fur coats, and manual typewriters. As we shall discuss in Chapter 6, advertising can help get new products off the ground by giving more people more complete information, thereby stimulating primary demand?demand for the entire product class.In declining markets, when the only information people want is price information, advertising can influence selective demand?demand for a particular brand. But the only effect it will have on primary demand is to slow the rate of decline. In growing markets, advertisers generally compete for shares of that growth. In mature, static, or decline ins markets, they compete for each others shares?conquest sales. Effect on Consumer Choice For manufacturers, the best way to beat the competition is to make their product different.For example, look at the long list of car models, sizes, colors, and features designed to attract different buyers. And grocery shelves may carry more than 100 different brands of breakfast cereals?something for everybody. The freedom to advertise encourages businesses to create new brands and improve old ones. When one brand reaches market dominance, smaller brands may disappear for a time. But the moment a better product comes along and is advertised skillfully, the dominant brand owes out to the newer, better product.Once again, the freedom to advertise promotes the existence of more sellers, and that gives consumers wider choices. Effect on the Business Cycle The relationship between advertising and gross domestic product has long been debated. John Kenneth Calibrating, a perennial critic of advertising concedes that, by helping to maintain the flow of consumer demand (encouraging more buyers), advertising helps sustain employment and income. But he maintains that, despite declines in the value of the dollar, the U. S. Read deficit persists because advertising and marketing activities create nonuser preference for certain foreign products. Historically, when business cycles dip, companies cut advertising expenditures. That may help short-term profits, but studies prove that businesses that continue to invest in advertising during a recession are better able to protect, and sometimes build, market shares. However, no study has shown that if everybody just keeps advertising, the recessionary cycle will turn around. We conclude that when business cycles are up, advertising contributes to the increase.When business cycles are down, advertising may act as a stabilizing force by encouraging more buyers to buy. The Abundance Principle: The Economic Impact of Advertising in Perspective To individual businesses such as Calvin Klein, the local car dealer, and the convenience store on the corner, advertising pays back more than it costs. If advertising didnt pay, no one would use it. And the various news and entertainment media that depend on advertising for financial support would go out of business. Advertising costs less for the consumer than most people think. The cost of a bottle of Coke includes about a penny for advertising. And the $20,000 price tag on a new car usually includes a manufacturers advertising cost of less than $400. To he economy as a whole, the importance of advertising may best be demonstrated by the abundance principle. This states that in an economy that produces more goods and services than can be consumed, advertising serves two important purposes: It keeps consumers informed of their alternatives (complete information), and it allows companies to compete more effectively for consumer dollars (selflessness).In North America alone, the U. S. And Canadian economies produce an enormous selection of products. Most supermarkets carry more than 30,000 different items. Each carmaker markets dozens of models. And many suppliers compete for the nonuser dollar. This competition generally results in more and better products at similar or lower prices. Advertising stimulates competition (many buyers and sellers). In countries where consumers have more income to spend after their physical needs are satisfied, advertising also stimulates innovation and new products.However, no amount of advertising can achieve long-term acceptance for products that do not meet consumer approval. Despite massive advertising expenditures, fewer than a dozen of the 50 best- known cars developed in the twentieth century are still sold today. The Social Impact of Advertising Because its so visible, advertising gets criticized frequently, for both what it is and what it isnt. Many of the criticisms focus on the style of advertising, saying its deceptive or manipulative. Collectively we might refer to these as short-term manipulative arguments.Other criticisms focus on the social or environmental impact of advertising. These are long-term macro arguments. The social aspect of advertising typically involves the last two principles: complete information and absence of externalities. In fact, social issue debates can be seen as instances where advertising tends to violate one or ore of these basic economic principles. We can examine many issues from these two perspectives. Some of the most important are deception and manipulation in advertising, the effect of advertising on our value system, commercial clutter, stereotypes, and offensiveness.Deception in Advertising One of the most common short-term arguments about advertising is that it is so frequently deceptive. Professor Ivan Preston notes that the essence of a marketplace lies in the willingness of buyers and sellers to enter commercial transactions. Anything ins that detracts from the satisfaction of the transaction reduces a loss of activity that ultimately hurts both parties. If a product does not live up to its ads, dissatisfaction occurs?and in the long term that is as harmful to the advertiser as to the buyer. For advertising to be effective, consumers must have confidence in it.So any kind of deception not only detracts from the complete information principle of free enterprise but also risks being self-defeating. Even meaningless (but legal) puffery might be taken literally and therefore become deceptive. Puffery refers to exaggerated, subjective claims that cant be proven true or false, such as the best, premier, or the only way to fly. Under current advertising law, the only product claims?explicit or implied?that are considered deceptive are those that are factually false or convey a false impression and therefore have the potential to deceive or mislead reasonable people.But puffery is excluded from this requirement because regulators maintain that reasonable people dont believe it anyway. Preston points out that since advertisers regularly use puffery and nonproductive facts to enhance the image of their products, they must think consumers do believe it. Nonproductive facts are not about the rand but about the consumer or the social context in which the consumer uses the brand. An example is Pepsi. The choice off new generation. The fact is that advertising, by its very nature, is not complete information. It is biased in favor of the advertiser and the brand.People expect advertisers to be proud of their products and probably dont mind if they puff them a little. But when advertisers cross the line between simply giving their point of view and creating false expectations, thefts when people begin to object. One problem is the difficulty of seeing the line, which may be drawn differently by efferent people. Papa Johns Pizza no doubt thought it was just puffing when it advertised Better ingredients. Better pizza. Pizza Hut saw it differently, though, and sued papa Johns for deceptive advertising. A U.S. District judge agreed and awarded Pizza Hut close to half a million dollars in damages. The judge then ordered Papa Johns to stop using its Better ingredients slogan. This decision was later overturned on appeal, but the case still goes to show that there are limits on what an advertiser can safely puff. Preston points out, Only puffs open to measurement lose their invisible shields. If Papa Johns says it has better dough, you can attack it. But if Papa Johns says its better overall, thefts K. The bigger the lie, the bigger the protection.Isnt that amazing? For more on this story and on puffery, see the Ethical Issue: Truth in Advertising: Fluffing and Puffing, Ivan Preston believes these kinds of problems can be avoided if marketers simply improve the kind of information they give in their advertising. He would require advertisers to have a reasonable basis for any claims they make, whether those claims are facts about the product, nonfat such as Coke is it, or nonproductive facts. This, he believes, would contribute positively to our free market system. Advertising free essay sample Advertising is an evolution of techniques and human interaction and is helped with the technological advances and the creation of consumer and customers relations; I believe that advertisement has created awareness in the new advanced world we live in that connects all the people. Will discuss the advertisement piece throughout the essay and emphasize its aspects throughout the research done the advertisement I chose is about BP, it is a multinational company that provides oil and gas.It is known to be one the strongest and most trusted companies in the whole world due to the hefty mount of shares in the world economy and the large revenue it produces every year. An employee that works in the company promotes BP graduate program. Lastly does the advertisement; he works in the Procurement and Supply Chain Management. L Gaston promotes the graduate program by talking about his own experience. He was recruited normally through regular process and now he is in the place where he feels appreciated. We will write a custom essay sample on Advertising or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page He came through the normal recruitment cycle and he is one of many that talked about their experience in this BP campaign to promote the graduate program. BP in the advertisement asks the viewers if they are up for the halogen to become part of the graduate program. Advertisements has transformed in the past years into interaction between the customer and the producer which allows for more efficient results with a variety in the target audience reached.The AID model can be applied for this advertisement, the advertisement attracts attention by beginning with a powerful statement which states that everything we do in the society depends on how much energy we have, it underpins the growth of the economy worldwide. By getting Lastly in the picture and stating that he has applied in a normal procedure and talking bout how he developed gains the interest of the viewer and helps the viewer listen to a trusted source about his experience in the company.As Interest and desire are both connec ted in the AID model, L Gaston talks to the viewers has promote the idea of applying in the graduate program like what he did. The main goal of the advertisement is to promote BP in general, to emphasize more about this point, L Gaston states that BP are like a family and the working environment is an experience that will help you achieve your goals. The last part of the AID model is action, after Lastly talked about his great experience in the company and with interest and desire raised; the ending of the advertisement asks the viewers a question Are you ready for the challenge? This question helps the viewers to talk action and apply for the graduate program. As Shank (1999) stated that models such as the AID model is a catalyst for a number of academic research and it is still used till the moment in different advertisements. The use Of AID model is clear especially in the last part where BP directly asks if you are up for a challenge like this. The advertisement target audience is important and well constituted; the advertisement is clearly for graduates that are seeking a well-established future by a company with the size of BP.The advertisement is trying to prove that Ups work is essential in our lives by stating that everything we do is connected to energy we consume. Consumers usually look at the advertisements for symbolic resources (Mock and Bull, 1992). Life projects are created through self-development and power to increase your knowledge. In the advertisement Lastly talks about how he is achieving and planning to achieve more in the next 5 to 10 years, which reflects life projects. This advertisement is lacking data analysis, as it is not possible to measure the scores for genders that view this advertisement.The use of the city fast forwarding in the beginning of the advertisement reflects on whats said that energy is essential in our lives. The design of the picture of a friendly environment and by saying that employers helped with all they can creates the picture that BP wants to show. The advertisement can be considered as a post modern as it uses visual media and connect with the viewers in a more emotional indirect way. Advertisement produces the appearance of use value (Proctor 2002); the usual media is delivered through images and visual language. The interaction between the consumer and the producer is vital in this way of advertisement as it creates a relationship with the consumer. As there is no specific story line for the advertisement, the consumer is focusing more on Lagoons life experience in BP than what is really the graduate program gives the consumer. This way is to get the consumer to be played in terms of emotions and get them to apply to experience this attractive life style that L Gaston is going through. The style of this advertisement is different than other ay to advertise the companys graduate program.As it is normal to talk about prices and what the company gives the graduate in terms of education, its twisted in a way that someone like the target audience is giving the interview and how good this company is. The advertisement due to technological advances will always be available for everyone to watch owing to the fact that everyone is connected and the Internet is essential to everyone; which is an advan tage due to its long time this advertisement can be promoted for, as the Internet is always available.The advertisement had efferent purposes, it was giving information and promoting a service, but in general it was promoting the company as a whole. There was no specific product promoted. The advertisement opens with a view of the city and a narrative, it was words that are considered wise to give to the advertisement this depth needed for trustworthiness. The advertisement shows the facilities of the work place to show legitimacy of the advertisement. It shows that the working environment is friendly and work-oriented.Halfway through the ad a close up to Lagoons watch, which shows that it is highly, priced watch. This shows that people coming through the graduate program can make it and become rich which is one of the main objectives of the graduate program. It is sort of a preview of what will happen to the target audience when they take the move and begin working for the company. The advertisement contains a dialogue prepared by one person throughout the whole advert.L Gaston stated in the advert that the most important factor in BP that the employer are making them feel valued which is reasonable due to how large the corporation is. People tend to work harder when they are valued. The advertisement is to change the state of mind of how large reparation work, to change the emotions of the audience toward this cruel corporate life which is a part of the post modern era in advertising. As stated in (Proctor, 2002) how advertising works focus on what people do with the advertisement rather than what advertisement do to people?.Proctor (2002) also advocated that the production of the advertisement should give a symbolic meaning for people to always link it with the product or service. The language used is crucial as L Gaston describe his experience in the Company in the most emotional way, and with the visuals that show the happy experience f the employees crea tes the atmosphere that any co-worker or employee needs in the working environment. The link between what the company does which is deliver oil and gas on daily basis to customers all over the world reflects the atmosphere of the company. Learning and being able to develop personally this was stated by Lastly when he was talking. Viewers must link that important word said by him because they viewers need to be more interpretive in this advertisement. The use of these words as well should be linked emotionally to the people watching. The manipulation through the use of the emotional words with the low music at the background is a major technique of convincing the viewers toward the graduate program. The advertisement is a non-traditional one due to the way it is showed to the people.BP does not provide an offer to the people by stating that they have the best of something, but they are getting what the people interested are more interested in which is the employee?s satisfaction, which is clearly stated that the job experience is one of a kind. Its a risky way of promoting the seen. ice they offer, but effective because they connect with viewers and show it as a short documentary or a short personal experience story. The advertisement in general is a new way of promoting a service produced by a multi-national company.Creating a non-traditional advertisement is a risky way of promoting a service. I believe the advertisement suits the target audience but in my opinion due to the views counted on the website, the advertising campaign seems to not have reached a reasonable amount of views considering the size of a company such as BP. Communication in the market allowed a connection between the audience and the producer to create a wide reach of customers through technological advances, which dedicated more time into developing resources and operation itself.