Main goal of advertising is to

• influence attitues and behavior 
• Variety of Publics 
• Themselves 

Calvin Klein 

• 1970's brooke sheilds ads were controversial...she was 15 and selling sex
• continued on till today 

• most visible face of materialism, mass marketing and capitalism 
• most convenint target for critics of those values 

• historically 
• john kenneth galbraith 30-40s
• advertising seduced societys and was bad for economy 
• today:
• advertising stimulates the economy by providing direct funding to media and adv people 
• creates demands for goods and services 
• promotes compitition 

Traditional economic tehory 

 "the rational consumer" 

• Motivated by rational self interest 
• utility theory of consumer behavior
• Rationally acquire the greatest satisfation and to avoid dissatisfaction 
• Law of supply and demand-purcase more when price goes lower, less when it goes up
• Argument-we buy what we want 

• Which products to buy-information 
• Advertising is the most cost effective means of promotion 
• Lowers cost of production by increasing total demant for products/services 

Ads can lower the price of a product 

-Toys --steiner

Eyeglasses-benham---in markets that allowed price advertising prices were lower

Prescription drugs-cody---in price ads perscriptions became lower 

Beer-wilcox ---no difference wethere promoted by price ads and no price ads 

• Lowest priced items
• intro to "generic" brands 
• Generics dont inspire confidence! especially for entertaining 

Advertising and economic climates 

Economic factors limit aggregate purchases 

in a bad economy, ad budgets cut 

Why????

seen as an expense not an investment

NOOOO increase advertising when competetors are cutting costs 

most economists are defenders of advertising 

The Social Context 

"Advertising has done more to cause the social unrest of the 20th century than any other single factor "

Each society should be judged by its own values

should US advertise cigarettes in africa and china

Should US advertisers be held to american standard or host country 

Catagories of critisism 

Products 

Process 

Content 

• 70% of consumers feel technology makes adverising too intrusive 
• mobile phone ads 
• internet ads 
• annoying and explicit

Advertising invades Privacy 

• US survey indicated that only 40% of ppl felt privacy rights were being protected 

Advertising makes products more important than family or religion 

Can advertising invent DESIRE 

No! 

It Excites those desires and makes ppl act on them 

Advertisers STUDY consumers

 Figure out needs and desires

 Create advertising that addresses those needs and desires

Turn kids into consumer monsters

Channel one

ten minutes of news 

kids paid more attention to commercials than the news

Advertising as a monopolist tool 

 Economic critisism 

Advertising concentrates too much power in the hands of big advertisers which then use it to stifle competition from smaller advertisers

adv prepeturates sterotypes of women and races 

is advertising a reflection of society 

or is society a reflection of advertising 

advertisers are now more sensitive 

Advertising for controversial products

Critics claim advedrtising helps persuade people to use products and services that are harmful or self destructive 

early shows that contributed greatly to the advertisement cigarettes it was very common for cigarettes to be incorporated into family shares like the Mary Tyler Moore show,I Love Lucy, wanted dead or alive,the Three Stooges

..it was humorous cigarettes sponsored shows -the golden age of TV equals Golden age of cigarette advertising

brand loyalty became important after decline in cigarette smoking

made cigarettes longer, redesigned a flip top box, redesigned filters

competition was intense-offered coupons... Gifts

JFK called for a study and incorporated the Surgeon General to the research

anti-smoking commercial such as the two children imitating their parents cause people to reconsider what cigarette smoking does to the community

implemented warning labels on cigarette packs saying it may be hazardous to your health

In 1977 in response to the fairness doctorne. networks were required to air anti-smoking ads along with smoking ads

the ratio was one anti-for every three pro

figure companies are under pressure to advertise because they felt that TV advertisement would eventually become nonexistent

cigarette manufacturers wanted off the air advertising

the TV stations wanted to keep them on to fill the timeslots

1971 cigarette advertising was banned on television

JUNE 10TH

CIG ADV

Rapid declines from the 50s...

Drop when surgean general 

Drop when broadcast on tv was banned 

1998 tobacco settlement with states--246 billion over 25 yeears for health costs related to smoking 

Today, 54% of funds used by states to fill buged gaps 

17% used to treat smoking-related illnesses 

Tobacco has a new partner---the states 

Government Banned cigarrette ads...why not acohol?

"youths who see more alcohol ads drink more"

"Beer marketers clearly target underage drinkers"

Highly Regulated 

prohibition in the 30s

States regulate alcohol---they passed the responsibility on to the counties. 

Liquor Advertising on TV

1998 they began advertising on television after being on a volentary ban

-Advertising and alcohol consumption 

  implements Brand Choice 

-Advertising Bans and alcohol consumption

  yet it DOES NOT affect the consumption of         alcohol

-Advertising and underage consumption

-Advertising and alcohol Abuse

   Alcohol is not as harmful as Cigs (they have      nicoten)

Network television is an efficient means of reachin consumers 

ABC, UPN and WB prohibit condom ads 

Net execs cite concerns that condoms encourage promiscuity 

71%favor

some issues

the gun industry manufatures and markets the only widely available consumer products designe to kill, no consumer saftey restrictions 

-Guns kill 1000 people everyday 

"guns dont kill people, People do" -nra

one of the most controversial products 

-Child obesity 

The SUV is a menace to both its occupants and other drivers 

its design is outdated and inappropriate

Cigarrettes 

Alcohol

condoms

SUVs

fast food 

Coffee 

Advertising is Designed to Deceive 

"our bank pays the highest interest in town"

"our bathroom tissue is softer"

*Puffery-exaggerations of a product 

Shell--"the detergent gasoline"