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Detailed Contents Part One Advertising Perspectives 1 What Is Advertising Today? 4 What Is Advertising? 6 Communication: What Makes Advertising Unique, 8 The Human Communication Process, 8 Applying the Communication Process to Advertising, 9 Marketing: Determining the Type of Advertising to Use, 13 What Is Marketing? 14 Advertising and the Marketing Process, 14 Identifying Target Markets and Target Audiences, 14 Implementing Marketing Strategy, 18 Integrating Marketing Communications, 24 2 The Evolution of Advertising, 28 Economics: The Growing Need for Advertising, 31 Principles of Free-Market Economics, 31 Functions and Effects of Advertising in a Free Economy, 31 The Evolution of Advertising as an Economic Tool, 35 The Global Interactive Age: Looking at the Twenty-First Century, 48 Society and Ethics: The Effects of Advertising, 50 3 The Economic, Social, and Regulatory Aspects of Advertising, 54 The Many Controversies about Advertising, 56 The Economic Impact of Advertising, 58 Effect on the Value of Products, 59 Effect on Prices, 60 Effect on Competition, 60 Effect on Consumer Demand, 61 Effect on Consumer Choice, 61 Effect on the Business Cycle, 61 The Abundance Principle: The Economic Impact of Advertising in Perspective, 62 The Social Impact of Advertising, 62 Deception in Advertising, 63 The Subliminal Advertising Myth, 64 The Effect of Advertising on Our Value System, 64 The Proliferation of Advertising, 66 The Use of Stereotypes in Advertising, 68 Offensiveness in Advertising, 69 The Social Impact of Advertising in Perspective, 70 Social Responsibility and Advertising Ethics, 71 Advertisers? Social Responsibility, 71 Ethics of Advertising, 73 How Government Regulates Advertising, 74 Government Restraints on International Advertisers, 75 Current Regulatory Issues Affecting U.S. Advertisers, 75 Freedom of Commercial Speech, 76 Consumer Privacy, 79 Federal Regulation of Advertising in North America, 80 The U.S. Federal Trade Commission, 81 The Food and Drug Administration (FDA), 84 The Federal Communications Commission (FCC), 85 The Patent and Trademark Office and the Library of Congress, 86 State and Local Regulation, 86 Regulation by State Governments, 86 Regulation by Local Governments, 87 Nongovernment Regulation, 87 The Better Business Bureau (BBB), 87 The National Advertising Review Council (NARC), 88 Regulation by the Media, 89 Regulation by Consumer Groups, 91 Self-Regulation by Advertisers, 92 Self-Regulation by Ad Agencies and Associations, 92 The Ethical and Legal Aspects of Advertising in Perspective, 93 4 The Scope of Advertising: From Local to Global, 96 The Advertising Industry, 98 The Organizations in Advertising, 98 The People in Advertising, 98 The Advertisers (The Clients), 99 Local Advertising: Where the Action Is, 99 Regional and National Advertisers, 103 Transnational Advertisers, 106 The Advertising Agency, 108 The Role of the Advertising Agency, 109 Types of Agencies, 109 What People in an Agency Do, 113 How Agencies Are Structured, 117 How Agencies Are Compensated, 118 The In-House Agency, 120 The Client/Agency Relationship, 120 How Agencies Get Clients, 120 Stages in the Client/Agency Relationship, 122 Factors Affecting the Client/Agency Relationship, 124 The Suppliers in Advertising, 126 Art Studios and Web Designers, 126 Printers and Related Specialists, 126 Film and Video Houses, 126 Research Companies, 126 The Media of Advertising, 127 Print Media, 127 Electronic Media, 128 Digital Interactive Media, 128 Out-of- Home Media, 129 Direct Mail, 129 Other Media, 129 Media around the World, 130 Part Two Crafting Marketing and Advertising Strategies 5 Marketing and Consumer Behavior: The Foundations of Advertising, 136 The Larger Marketing Context of Advertising, 139 The Relationship of Marketing to Advertising, 139 Customer Needs and Product Utility, 139 Exchanges, Perception, and Satisfaction, 140 The Key Participants in the Marketing Process, 143 Customers, 143 Markets, 143 Marketers, 145 Consumer Behavior: The Key to Advertising Strategy, 145 The Importance of Knowing the Consumer, 145 The Consumer Decision Process: An Overview, 146 Personal Processes in Consumer Behavior, 147 The Consumer Perception Process, 147 Learning and Persuasion: How Consumers Process Information, 150 The Consumer Motivation Process, 154 Interpersonal Influences on Consumer Behavior, 157 Family Influence, 157 Societal Influence, 158 Cultural and Subcultural Influence, 160 Nonpersonal Influences on Consumer Behavior, 162 Time, 162 Place, 162 Environment, 162 The Purchase Decision and Postpurchase Evaluation, 163 6 Market Segmentation and the Marketing Mix: Determinants of Advertising Strategy, 168 The Market Segmentation Process, 170 Segmenting the Consumer Market: Finding the Right Niche, 171 Segmenting Business and Government Markets: Understanding Organizational Buying Behavior, 179 Aggregating Market Segments, 182 The Target Marketing Process, 183 Target Market Selection, 184 The Marketing Mix: A Strategy for Matching Products to Markets, 184 Advertising and the Product Element, 186 Product Life Cycles, 186 Product Classifications, 188 Product Positioning, 189 Product Differentiation, 189 Product Branding, 190 Product Packaging, 191 Advertising and the Price Element, 193 Key Factors Influencing Price, 193 Advertising and the Distribution (Place) Element, 194 Direct Distribution, 194 Indirect Distribution, 195 Vertical Marketing Systems: The Growth of Franchising, 196 Advertising and the Communication (Promotion) Element, 197 Personal Selling, 198 Advertising, 198 Direct Marketing, 199 Public Relations, 199 Collateral Materials, 199 Sales Promotion, 199 The Marketing Mix in Perspective, 200 7 Research: Gathering Information for Advertising Planning, 204 The Need for Research in Marketing and Advertising, 206 What Is Marketing Research? 206 What Is Advertising Research? 208 Applying Research to Advertising Decision Making, 208 Advertising Strategy Research, 209 Developing Creative Concepts, 211 Pretesting and Posttesting, 212 Steps in the Research Process, 214 Step 1: Analyzing the Situation and Defining the Problem, 214 Step 2: Conducting Informal (Exploratory) Research, 214 Step 3: Establishing Research Objectives, 216 Step 4: Conducting Formal Research, 217 Step 5: Interpreting and Reporting the Findings, 223 Important Issues in Advertising Research, 224 Considerations in Conducting Formal Quantitative Research, 224 Collecting Primary Data in International Markets, 228 8 Marketing and Advertising Planning: Top-Down, Bottom-Up, and IMC, 232 The Marketing Plan, 235 The Importance of Marketing Planning, 235 The Effect of the Marketing Plan on Advertising, 235 Top-Down Marketing, 235 Bottom- Up Marketing: How Small Companies Plan, 240 The New Marketing Mantra: Relationship Marketing, 241 The Importance of Relationships, 242 Levels of Relationships, 242 Using IMC to Make Relationships Work, 244 IMC: The Concept and the Process, 244 The Dimensions of IMC, 247 The IMC Approach to Marketing and Advertising Planning, 247 The Importance of IMC to the Study of Advertising, 249 The Advertising Plan, 249 Reviewing the Marketing Plan, 249 Setting Advertising Objectives, 249 Advertising Strategy and the Creative Mix, 252 The Secret to Successful Planning, 255 Allocating Funds for Advertising, 255 Advertising: An Investment in Future Sales, 255 Methods of Allocating Funds, 260 The Bottom Line, 263 9 Planning Media Strategy: Finding Links to the Market, 266 Media Planning: Integrating Science with Creativity in Advertising, 269 The Challenge, 269 The Role of Media in the Marketing Framework, 276 The Media-Planning Framework, 278 Defining Media Objectives, 278 Audience Objectives, 278 Message-Distribution Objectives, 279 Optimizing Reach, Frequency, and Continuity: The Art of Media Planning, 283 Developing a Media Strategy: The Media Mix, 285 Elements of the Media Mix: The Five Ms, 285 Factors That Influence Media Strategy Decisions, 286 Stating the Media Strategy, 292 Media Tactics: Selecting and Scheduling Media Vehicles, 292 Criteria for Selecting Individual Media Vehicles, 292 Economics of Foreign Media, 295 The Synergy of Mixed Media, 295 Methods for Scheduling Media, 296 Computers in Media Selection and Scheduling, 297 Part Three Integrating Advertising with Other Elements of the Communications Mix 10 Relationship Building: Direct Marketing, Personal Selling, and Sales Promotion, 304 The Importance of Relationship Marketing and IMC, 307 Understanding Direct Marketing, 307 The Role of Direct Marketing in IMC, 309 The Evolution of Direct Marketing, 309 The Impact of Databases on Direct Marketing, 310 The Importance of Direct Marketing to IMC, 311 Drawbacks to Direct Marketing, 313 Types of Direct Marketing Activities, 314 Direct Sales, 314 Direct-Response Advertising, 315 Personal Selling: The Human Medium, 318 Types of Personal Selling, 319 Advantages of Personal Selling, 320 Drawbacks of Personal Selling, 320 The Role of Personal Selling in IMC, 321 Gathering Information, 321 Providing Information, 321 Fulfilling Orders, 321 Building Relationships, 322 The Role of Sales Promotion in IMC, 323 The Positive Effect of Sales Promotion on Brand Volume, 324 The Negative Effect of Sales Promotion on Brand Value, 324 Sales Promotion Strategies and Tactics, 325 Giving Brands a Push with Trade Promotions, 326 Using Consumer Promotions to Pull Brands Through, 328 11 Relationship Building: Public Relations, Sponsorship, and Corporate Advertising, 336 The Role of Public Relations, 338 The Difference between Advertising and Public Relations, 339 Advertising and PR in the Eyes of Practitioners, 340 The Public Relations Job, 342 PR Planning and Research, 342 Reputation Management, 342 Other Public Relations Activities, 345 Public Relations Tools, 347 Sponsorships and Events, 349 The Growth of Sponsorship, 350 Benefits of Sponsorship, 351 Drawbacks of Sponsorship, 352 Types of Sponsorship, 352 Methods of Sponsorship, 356 Measuring Sponsorship Results, 357 Corporate Advertising, 358 Public Relations Advertising, 358 Corporate/Institutional Advertising, 358 Corporate Identity Advertising, 364 Recruitment Advertising, 364 Part Four Creating Advertisements and Commercials 12 Creative Strategy and the Creative Process, 370 The Creative Team: The Authors and Encoders of Advertising, 373 What Makes Great Advertising? 373 The Resonance Dimension, 374 The Relevance Dimension, 375 Formulating Advertising Strategy: The Key to Great Creative, 375 Writing the Creative Brief (Copy Platform), 376 Elements of Message Strategy, 378 How Creativity Enhances Advertising, 379 What Is Creativity? 379 The Role of Creativity in Advertising, 379 Understanding Creative Thinking, 382 The Creative Process, 384 The Explorer Role: Gathering Information, 384 Develop an Insight Outlook, 385 Know the Objective, 385 Brainstorm, 385 The Artist Role: Developing and Implementing the Big Idea, 385 Task 1: Develop the Big Idea, 385 Task 2: Implement the Big Idea, 390 The Creative Pyramid: A Guide to Formulating Copy and Art, 391 The Judge Role: Decision Time, 394 The Warrior Role: Overcoming Setbacks and Obstacles, 396 13 Creative Execution: Art and Copy, 404 Delivering on the Big Idea: The Visual and the Verbal, 406 The Art of Creating Print Advertising, 406 Designing the Print Ad, 406 The Use of Layouts, 407 Advertising Design and Production: The Creative and Approval Process, 408 Effect of Computers on Graphic Design, 410 Principles of Design: Which Design Formats Work Best, 410 The Use of Visuals in Print Advertising, 411 Copywriting and Formats for Print Advertising, 417 Headlines, 417 Subheads, 421 Body Copy, 421 Slogans, 424 Seals, Logos, and Signatures, 424 Copywriting for Electronic Media, 424 Writing Radio Copy, 424 Writing Television Copy, 425 The Role of Art in Radio and TV Advertising, 426 Developing the Artistic Concept for Commercials, 427 Formats for Radio and TV Commercials, 427 Basic Mechanics of Storyboard Development, 431 Writing for the Web, 432 Creating Ads for International Markets, 433 Translating Copy, 433 Art Direction for International Markets, 435 Legal Restraints on International Advertisers, 435 14 Producing Ads for Print, Electronic, and Digital Media, 438 Managing the Advertising Production Process, 440 The Role of the Production Manager or Producer, 440 Managing Production Costs, 441 The Print Production Process, 444 The Preproduction Phase: Planning the Project, 445 The Production Phase: Creating the Artwork, 448 The Prepress Phase: Stripping, Negs, and Plates, 451 The Duplication and Distribution Phase: Printing, Binding, and Shipping, 452 Quality Control in Print Production, 452 Production Phase Quality Issues, 452 Prepress Quality Issues, 452 The Radio Commercial Production Process, 460 Preproduction, 460 Production: Cutting the Spot, 461 Postproduction: Finishing the Spot, 462 The Television Commercial Production Process, 462 The Role of the Commercial Producer, 462 The Preproduction Phase, 463 Production: The Shoot, 465 Postproduction, 467 Producing Advertising for Digital Media, 469 The Emergence of Digital Media, 469 The Role of Digital Media in Advertising, 471 The People Who Produce Digital Media Advertising, 472 The Production Process, 472 Part Five Using Advertising Media 15 Using Print Media, 478 The Role of the Print Media Buyer, 480 Using Magazines in the Creative Mix, 481 The Pros and Cons of Magazine Advertising, 481 Special Possibilities with Magazines, 482 How Magazines Are Categorized, 484 Buying Magazine Space, 490 Understanding Magazine Circulation, 490 Reading Rate Cards, 492 Software for Buying Print Media, 493 Using Newspapers in the Creative Mix, 494 Who Uses Newspapers? 494 The Pros and Cons of Newspaper Advertising, 494 How Newspapers Are Categorized, 495 Types of Newspaper Advertising, 497 How Advertisers Buy Newspaper Space, 498 Understanding Readership and Circulation, 498 Co-ops and Networks, 501 Insertion Orders and Tearsheets, 502 Print: A Worldwide Medium, 502 Print Media and New Technologies, 504 Sources of Print Media Information, 504 16 Using Electronic Media: Television and Radio, 508 The Medium of Television, 510 Broadcast TV, 510 Cable TV, 511 TV Audience Trends, 512 The Use of Television in IMC, 515 Types of TV Advertising, 515 TV Audience Measurement, 521 Rating Services: The Book, 521 Cable Ratings, 521 Defining Television Markets, 522 Dayparts, 524 Audience Measures, 524 Gross Rating Points, 524 Buying Television Time, 525 Requesting Avails, 525 Selecting Programs for Buys, 525 Negotiating Prices and Contracts, 526 Electronic Media Buying Software, 527 Other Forms of Television, 527 Advertising on Video Rentals, 527 The Medium of Radio, 528 Who Uses Radio? 528 The Use of Radio in IMC, 528 Radio Programming and Audiences, 529 Buying Radio Time, 531 Types of Radio Advertising, 531 Radio Terminology, 532 The Seven Steps in Preparing a Radio Schedule, 534 17 Using Digital Interactive Media and Direct Mail, 538 Digital Interactive Media, 540 The Internet as a Medium, 543 The Evolution of the Internet, 543 The Internet Audience, 550 How People Access the Net, 552 Types of Internet Advertising, 553 Problems with the Internet as an Advertising Medium, 557 Using the Internet in IMC, 557 Measuring the Internet Audience, 559 Seeking Standardization, 559 The Promise of Enhanced Tracking, 560 Buying Time and Space on the Internet, 561 Pricing Methods, 561 The Cost of Targeting, 562 Stretching Out the Dollars, 564 The Global Impact of the Internet, 564 Other Interactive Media, 565 CD-ROM Catalogs and Magazines, 565 Kiosks, 565 Interactive TV, 565 Direct-Mail Advertising: The Addressable Medium, 566 Growth of Direct Mail, 568 Types of Direct-Mail Advertising, 568 Using Direct Mail in the Media Mix, 569 Buying Direct-Mail Advertising, 570 18 Using Out-of-Home, Exhibitive, and Supplementary Media, 576 Out-of-Home Media, 578 Outdoor Advertising, 579 Standardization of the Outdoor Advertising Business, 579 Types of Outdoor Advertising, 580 Buying Outdoor Advertising, 582 Regulation of Outdoor Advertising, 589 Transit Advertising, 589 Types of Transit Advertising, 590 Buying Transit Advertising, 592 Other Out-of-Home Media, 594 Mobile Billboards, 594 Electronic Signs and Display Panels, 594 Parking Meters and Public Phones, 594 Exhibitive Media, 594 Product Packaging, 594 Trade-Show Booths and Exhibits, 596 Supplementary Media, 598 Specialty Advertising, 598 Directories and Yellow Pages, 599 Emerging Media, 600 Epilogue Re-Positioning a Brand: MasterCard?s ?Priceless? Campaign, 604 Appendix A Marketing Plan Outline, A1 Appendix B Advertising Plan Outline, B Important Terms, IT End Notes, EN1 Credits and Acknowledgments, CR1 Name Index, IN1 Company and Brand Index, IN5 Subject Index, IN12
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