1. Chapter One The Evolution of Advertising
Arens|Schaefer|Weigold
Chapter One The Evolution of Advertising
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2. Learning Objectives Define integrated marketing communications
Define advertising and distinguish it from other forms of marketing communications
Explain the role advertising plays in business and marketing

3. Learning Objectives
Illustrate the functions of advertising in a free-market economy
Discuss how advertising evolved with the history of commerce
Describe the impact of advertising on society

4. Marketing Communications
Efforts and tools used to communicate with customers
Newspaper ads, telemarketing and digital ads, event sponsorship, and coupons
Integrated marketing communication
Coordination and integration of messages from a variety of sources

5. Advertising
Structured and composed nonpersonal communication of information that are paid for and persuasive in nature
About products by identified sponsors through various media
Type of marketing communication

6. Advertising Directed at groups Public service announcements (PSAs)
Advertisement that serves public interest, for a nonprofit organization, carried by the media at no charge
Medium: Communication vehicle that transfers a message from the sender to the receiver
Word-of-mouth (WOM) advertising
Mass media

7. Advertising and the Marketing Process
Marketing strategy
Statement of how the company will accomplish its marketing objectives
Directs the company in formulating the marketing plan
Determined by the blending of the marketing mix elements
Advertising strategy
Describes how to achieve the advertising objectives
Substrategies
Creative strategy
Media strategy

8. Exhibit 1.1 - Advertising: Promotion Component of the Marketing Mix

9. Principles of Free-Market Economics
Self-interest
Complete information
Many buyers and sellers
Absence of externalities

10. Exhibit 1.2 - Functions and Effects of Advertising in a Free Economy

11. Evolution of Advertising
Invention of paper and printing press gave rise to written advertising
Preindustrial Age
Production was the major concern of manufacturers
Industrializing Age
Growth of the U.S. industrial base, development of new brands of consumer packaged goods, product differentiation, unique selling proposition (USP), and market segmentation
Industrial Age
People became aware of the sensitivity of the environment
Positioning
Demarketing
Postindustrial Age

12. The Effects of Advertising
Advertising serves social needs
Encourages increased productivity
Primary income for many media
Public service announcements (PSAs)
Promote growth and understanding of social issues and causes

13. The Effects of Advertising
Issues of truthfulness and ethics led to:
Government regulation
Industry efforts at self-regulation
Formulation of consumer rights
New consumer movement in the 1970s

14. The Effects of Advertising
Shift in attention to more subtle problems
Puffery
Advertising to children
Advertising of legal but unhealthful products
Advertising ethics