Advertising Term Paper with Case Study Essay Example

significant for advertising progress in the United States.The USA rapidly transformed from an agricultural nation with European marketing traditions, product distribution systems, and advertising methods to a thriving industrial powerhouse. This shift revolutionized the advertising industry and was greatly influenced by advancements in transportation.

The US spans about 3000 miles and is known for its diverse landscapes, fertile soil, lush forests, and abundant coal mines. Initially, transportation in the country relied heavily on rivers, with boats serving as the primary mode of travel and trade. However, with the expansion of the railway system, people were able to venture into unexplored territories and subsequently increase their production and transportation of goods. The growing population of America during this period also played a crucial role in advancements in advertising. Concurrently, various breakthroughs occurred in communication technology, including the invention of the telephone, telegraph, typewriter, and more.

During the years 1870-1900, various forms of communication greatly aided the advancement of advertising in the United States. This period witnessed immense growth in the industry. For comparison, consider the following statistics: in 1867, the production of smelted steel, a key indicator of economic growth, amounted to twenty thousand tons. By 1900, this figure had skyrocketed to ten million tons. Such a remarkable increase presented vast opportunities for advertising to flourish. The impact of American advertising on global marketing and strategic development cannot be overstated. It has profoundly shaped the industry's traditions and trajectory for the future. Advertising serves as a means to promote goods, services, images, and any other content advertisers wish to publicize.

Advertising is an integral aspect of mass media, with various techniques used by advertisers to draw attention to

their products, services, or brands. While opinions towards advertising may vary, its ultimate objective remains the same: persuading potential customers to purchase the promoted items. Effective advertisements employ specific tactics to leave a lasting impression on their audience. Considering the prevalence of capitalism, the influence of advertising on consumers is significant and impacts all individuals.

Consumers are individuals who acquire goods or services for direct use or ownership. Advertising, as defined by Dictionary.com, is the act of attracting public attention to a product or business through paid announcements in print, broadcast, or electronic media.

Consumers seek out items that can improve their lives by offering health benefits, enjoyment, and convenience. Advertising serves to inform consumers about the advantages they can expect from products or services but also carries the potential for deception.

Advertisements represent a diverse marketing method employed by companies or individuals and are found in various forms such as books, journals, magazines, and newspapers.

Various mediums, including radio, television, and the internet, host advertisements. Co-operative advertising is a collaborative endeavor among businesses with similar interests aimed at enhancing the effectiveness and cost-efficiency of their marketing endeavors (Strait). Consumers directly benefit from advertising as it fosters competition, drives innovation, and enhances products, resulting in lower prices. Additionally, advertisements serve as the primary source of information for most individuals regarding product or service features and performance.

Advertisements serve several purposes, including informing consumers about products that can enhance their longevity and aiding in decision-making. They also introduce consumers to new products and innovative uses for existing ones. Crucially, advertisements save time by eliminating the need to try multiple products. In capitalist societies, the primary motivation behind product providers is often

financial gain.

Whether short-cuts are worth the money that can be earned is the primary concern. Advertising is a costly expense, and providers understand that if their product is not well-known, it won't be purchased. Passing on advertising costs to consumers can be disastrous. To reduce marketing expenses, some providers have developed strategies such as mass production, bulk purchasing of materials, wholesale transactions, and relocating production plants to low-tax countries. However, these profit-boosting tactics may not be sufficient if they compromise product quality. For most companies and individuals who rely on advertising for profitability, the ultimate goal is to establish brand recognition.

When encountering an advertisement, people typically associate the product with the company behind it, such as McDonald's Big Mac or Burger King's Whopper. To ensure positive outcomes, it is crucial for brands to uphold a high standard in their offerings and services, as the reputation of their name greatly impacts success. Occasionally, consumers may be deceived by misleading advertisements.

Consumer fraud is a significant issue that affects many individuals (Smith). This problem arises when an advertisement tricks a consumer into paying for a non-existent product or service. It can also occur when a company makes unsupported claims about their product's quality or performance. Manipulative advertising is another way consumers can be deceived into buying something they wouldn't normally purchase. An extreme example of misrepresentation is the infamous 'Miss Cleo' telephone service, which made false assertions in their ads. The FTC (Free Trade Commission) took action against 'Miss Cleo' after receiving numerous complaints from consumers who were promised a free "reading" in a TV commercial.

The FTC has discovered that consumers have been misled by agents who falsely

stated they would receive additional free time and incur no charges while on hold. These agents also provided false information about consumers being legally obliged to pay for services, even without any proof. Consumers must understand the possibility that advertisements may not accurately reflect the actual product or service after payment. The advertising industry holds immense value worth billions of dollars.

Advertising plays a crucial role in our society by informing consumers and assisting them in making purchasing decisions without deception or manipulation. Billboards, signs, radios, newspapers, magazines, television, and the internet are commonly used channels for advertisements that we encounter daily. Advertising not only supports businesses but also operates as a separate industry that enables efficient nationwide consumer reach. Without advertising, businesses would be confined to local markets with limited competition, resulting in slow growth and minimal spending. Therefore, advertising fosters more business activity and stimulates increased spending.

Additionally, advertising serves as a paid means of communication between businesses and consumers, aimed at informing and persuading them about products or services in order to increase the range of choices available to consumers. In order to comprehend the debates and disputes surrounding advertising, it is crucial to establish its definition. Advertising refers to any form of messaging that disseminates information or exerts persuasive influence on others. For instance, a sign advertising a garage sale affixed to a tree can be considered a form of advertising. However, in a business context, advertisements are defined as "paid, nonpersonal communication forms used with persuasive intent by identified sources through various media" (Commerce and Morality p43).

The main purpose of advertising is to inform and persuade consumers to buy a specific

service or product, distinguishing it from announcements and other forms of information. Advertisers generally have a broad understanding of their target audience, but they are not acquainted with the individual members within that audience. According to "Commerce and Morality" (p43), advertisements appeal to unknown individuals. For instance, if the target audience is teenagers, advertisers might select hip teenagers as models for a new trendy shoe instead of parental figures. While advertisements may resonate with the overall target audience, each individual within that audience will connect with the advertisement on different levels.

The aim of advertisers is to produce an advertisement that can attract the overall target audience, rather than deeply affecting a specific subgroup within the target audience who disregard the others. According to John Kenneth Galbraith, consumer sovereignty is no longer present in today's era. Consumer sovereignty refers to consumer autonomy, where consumers have the freedom to choose. If there is no choice available in society, then there is no sovereignty. It is defined as "the power of consumers to determine what is produced through their purchases of goods and services" ("The Market System").

Many people argue that advertising undermines consumer sovereignty by repeatedly pushing a certain product or service in an attempt to manipulate consumers and limit their choices. The constant exposure to a particular advertisement can compel consumers to feel compelled to purchase the promoted item, ultimately eroding consumer sovereignty within this context.

By acknowledging the absence of consumer sovereignty, individuals acknowledge the absence of free will. They are acknowledging that they are compelled to purchase these exploited products. In a way, these consumers are obligated to acquire the product if they are subjected

to extensive advertising. Are they determined or manipulated? Does advertising play a role in coercing consumers to make purchases? Consumer sovereignty remains intact in today's society and can never be eliminated within our established economic system. Consumers are exposed to an abundance of advertisements, and as a result, desires are generated. When consumers possess disposable income, they are more inclined to spend it rather than save it.

Consumers are inclined to purchase whatever attractive advertisements they come across. The responsibility for the consumer's decision to make a purchase cannot be solely attributed to the advertisement. Consumer sovereignty is not undermined by advertising. We possess the freedom to choose the items we desire and determine the right time to buy them. Our desires are not induced by advertisements but are instead influenced by observing what others possess in society, and craving to possess similar or superior items.

Advertising does not create a materialistic society; rather, it is individuals within society who have shaped it. However, advertising does mirror the values and beliefs of our society. One notable shift in today's society is the increasing acceptance and openness towards discussing sex. It is no longer considered a taboo subject, and we are actively encouraged to express ourselves openly in matters related to sex.

Many advertisements use sex as a strategy to promote products, leading to consumer criticism of distastefulness in these ads. However, it is ironic that advertising reflects the society's attitudes and preferences. Thus, labeling an advertisement as distasteful implies considering the current times as distasteful as well.

That individual is part of a society where sex has become openly displayed, even in advertisements. By criticizing the appropriateness of advertising,

one is essentially criticizing the current societal norms. Advertisers do not intend for their ads to be considered distasteful or obscene by consumers. The culture itself is what should be subjected to criticism, not the advertisers who merely reflect that culture in their advertisements" (Commerce and Morality p44). The main objective of advertising is to engage an audience and generate interest for a specific product or service.

Advertising plays a crucial role in attracting the attention of consumers and differentiating a product or service from its competitors. By establishing a unique connection with the audience, advertisers effectively communicate the superiority of their offerings. While advertising inundates consumers with more choices, it also ensures a healthy level of competition by providing the necessary information for making informed comparisons. Without advertising, consumers would have limited options, as they would lack the means to assess different products. Moreover, it is vital to note that advertising does not impede consumer choice or undermine their autonomy. Instead, consumers sometimes attribute their purchases to external factors, such as advertisements, rather than taking full responsibility themselves. A prime example of a prominent soft drink company is Coca-Cola.

The number of times I am exposed to Coca Cola advertisements in a day is less than five. Is this a large number? On the other hand, I come across movie advertisements less than ten times daily, taking up only two and a half minutes out of my twenty-four-hour day, and that is if I'm being generous. Consumers should reconsider their claims. In general, advertising does not impede consumer control. Instead, it offers consumers a wider range of choices to help them decide on the product they

desire most.

Consumer sovereignty is the practice of allowing consumers to make their own choices. However, many consumers find themselves in situations where they feel compelled to spend money, and it's often in those moments that an advertisement catches their attention and convinces them to make a purchase. It's important to recognize that the decision to buy a product ultimately rests with the consumer, not with the advertisement. Advertising serves as a means of providing information about what is available for consumers to buy, but it does not dictate their purchasing choices.

Consumer sovereignty and advertising work together to create an economic system that allows consumers to obtain desired products and helps businesses thrive. Advertising is crucial because it informs people about the existence of products or services, serving as a beneficial tool. The main objective of advertising is to raise awareness, establish brand identity, provide memorable information, and convince individuals that they will benefit from the product or service. It is true that many of the advertised products or services may not be necessary, but I mostly agree that advertising is primarily meant to provide information. It allows us to make a choice based on our own needs or desires whether or not we want to make a purchase.

Advertising has grown and flourished in modern times, as it assists companies in identifying their target market and providing guidance on how to reach it. With the abundance of products available, companies need to capture people's attention for their own offerings. Advertising plays a role in making products/service more appealing by appealing to a person's underlying motives and influencing their behavior and attitude towards the product. Personally, I

believe that advertising plays a significant role in shaping society and culture. People desire a sense of belonging within society, prompting them to conform to societal norms in their thoughts and actions.

The environment in which we are born and live influences our thoughts and actions. It is a natural instinct for us to adapt to our surroundings in order to survive. For example, if we were born in a dangerous jungle, our instinct would be to protect ourselves against potential threats. In such a harsh environment, if we were to become weak and reliant on others, we would be rejected by the jungle society.

Similarly, our modern society is characterized by innovation and materialism, where access to information is abundant. In this society, we are faced with the choice of which information to follow, as we strive not to fall behind and be rejected by our peers. As a result, many people view advertising as unethical due to its influence in shaping our thoughts and behavior.

The consequences of allowing advertising to shape us can be harmful, as it can manipulate our preferences and beliefs. Therefore, there is a growing concern about the negative impact of advertising on individuals and society as a whole.

Children were exploited during their formative years, as they absorbed subtle advertising messages that surrounded them on television, billboards, and in print. These advertisements, found everywhere, influenced children's search for their own identities. Unfortunately, many of the products promoted were dangerous and detrimental to their health. For instance, teenagers who were exposed to tobacco and alcohol advertising at a young age associated recognizable icons such as Joe Camel, Marlboro Man, and Budweiser Frog with

these substances. This exposure contributed to the fact that many smokers began smoking during their adolescent years. Additionally, children fell prey to the ideals propagated by the fashion industry, idolizing ultra-thin models.

Most fashion advertising features nudity and sexual appeal, which may influence children to believe that being thin and sexually attractive is necessary for social acceptance. While advertising to children can be impactful in terms of building brand loyalty, as a parent, I would prefer not to expose my children to messages that could shape their lifestyle. However, it is not inherently unethical to advertise to children because advertising serves as informative content, and individuals of all ages have the right to access information for making life choices.

Given the society's ongoing exposure of children to sexual, harmful, materialistic, etc. culture, parents and educators have a shared responsibility to teach children about advertising. This includes instilling in them the ability to make responsible decisions, even though it may undermine the nature of childhood. However, in our globalized and information-driven world, this is necessary. As the saying goes, "Don't change the world to fit you, but change yourself to move around the world." Additionally, advertising effectively captures people's attention by utilizing celebrities who are consistently admired.

Using celebrities in advertisements can be deceptive and manipulative since many celebrities do not actually use the products they endorse. In today's media, celebrities receive free products in exchange for visibility. This situation reveals a problem in society where the desire to emulate celebrities and live luxuriously leads to being drawn in by advertisements that create a sense of luxury.

Government regulation of the advertising industry serves two purposes: to protect consumers and

to create a fair and trustworthy marketplace for businesses. This regulation is preferable to outright banning, as prohibited items often become more desirable and sought out by individuals. An example of this phenomenon can be seen in countries that have banned guns in households; these nations tend to have higher rates of violence compared to countries where gun ownership is allowed. Similarly, when children are kept in the dark about topics such as sex, alcohol, and drugs, their curiosity drives them to seek out this information covertly.

Regulating and providing choices for individuals to make decisions is the most effective method of keeping advertising alive. Ultimately, it is imperative for advertisers to act responsibly. If they deliberately cross the boundaries, they should be prepared to face consequences. It is a reciprocal trade; by giving people a positive experience, they will be drawn to you.

Promotion and Advertising: The Role of Promotion involves communication to establish and maintain favorable relationships by informing and persuading target audiences to have a positive view of an organization and accept their products. The overall objective of promotion for a company is to stimulate the demand for their products.

Objectives of Promotion include:

• Create awareness
• Stimulate demand
• Encourage product trial
• Identify prospects
• Retain loyal customers
• Facilitate user support

Case History 1: To introduce a new product, E-Health needs to raise customer awareness, which is crucial for initiating the product adoption process.

E-Health has made significant investments in product development and now needs to quickly create awareness about its products in order to generate revenue and cover the high costs associated with development and introduction. To achieve this, E-Health plans to use the Pioneer Advertising Method, which is

focused on stimulating demand for a product category rather than a specific brand. This method involves informing potential customers (including doctors and patients) about the features, uses, and benefits of the product, as well as where it can be obtained. In addition to advertising, E-Health will also employ promotion strategies such as offering free samples or tests to encourage product trials. The target audience for E-Health's products includes doctors, patients, hospitals, healthcare providers (PPO and HMO), and insurance companies.

Retaining loyal customers is an important goal for E-Health because long-term customer relationships are valuable. By focusing on customer retention, E-Health can control costs, as it is usually cheaper to retain customers than acquire new ones. E-Health may facilitate user support by offering special incentives to hospital staff and doctors, such as working with patients to promote their products and services.

The advertising target audience includes UCLA Medical Center, USC Medical Center, Cedars-Sinai Medical Center, and Loma Linda Medical Center. The primary advertising objective is to generate a monthly income of $60,000 to $100,000 within 12 months. The survey of operation candidates indicates that the most important concern is post-op complications.

The use of E-Health products will establish a post-operative connection between doctors and patients, with 24/7 monitoring of patient conditions. E-Health has chosen the percent-of-sales approach and will allocate approximately 5% of sales as the advertising budget. The media plan aims to reach a large audience in the targeted areas of Los Angeles County and Orange County through various channels including local newspapers, magazines, yellow pages, special events, direct mail, the internet, radio, and television. The advertising message emphasizes that E-Health products provide better care at a lower

cost for post-operative patients. The advertising manager will ensure timely completion of different advertising phases, and the staff will evaluate the quality of work and make adjustments as needed.

E-Health plans to evaluate the effectiveness of advertising by using a consumer jury, which consists of potential users of the products. The consumer jury will judge various advertisements and determine which ones resonate the most with them. In order to achieve the financial objectives, it is crucial for the advertising objective to generate a monthly income ranging from $60,000 to $100,000 within a year (as stated in objective IX). This target aligns with objective IV, which aims to achieve first-year sales of 3,000 units, resulting in a total sales revenue of $10.9 million (approximating $3,633 per unit).

9 million units and services, and then IX. should be changed to the same amount Case history 2 Resource Organization History Pepsi-Cola is a carbonated beverage that is produced and manufactured by PepsiCo. It is sold in stores, restaurants, and from vending machines. The drink was first made in the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on June 16, 1903. There have been multiple Pepsi variants since 1903, including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X (available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan. In October 2008, it was announced that Pepsi would be redesigning their logo and re-branding many of their products.

Pepsi, Diet Pepsi and Pepsi Max will

be rebranded with all lower-case fonts. Mountain Dew will have its name changed to "Mtn Dew," and Diet Pepsi Max will be renamed as Pepsi Max. The brand's blue and red globe trademark will be replaced by a series of "smiles," with the central white band arcing at different angles depending on the product.

Origins: Pepsi was initially created in New Bern, North Carolina, in the early 1890s by pharmacist Caleb Bradham. In 1898, the beverage known as "Brad's Drink" underwent a name change to "Pepsi-Cola" and was later trademarked on June 16, 1903.[2] There are several theories regarding the word "pepsi"'s origins, but only two are mentioned on the current PepsiCo website:

1. Caleb Bradham purchased the name "Pep Kola" from a local competitor and modified it to become Pepsi-Cola.
2. The term "Pepsi" comes from the Greek word "pepse" (?????), which is a medical term describing the process of food dissolution within one's stomach.

The term dyspepsia denotes a medical problem with the stomach's ability to properly dissolve foods. Another theory concerning the origins of the name is that Caleb Bradham and his customers believed the name sounded appealing and reflected the fact that the beverage contained some form of "pep" due to its carbonation. The drink consisted of carbonated water, sugar, vanilla, rare oils, and kola nuts. It is uncertain whether the original recipe included the enzyme pepsin. In 1903, Bradham relocated the bottling process of Pepsi-Cola from his drugstore to a leased warehouse.

That year, Bradham sold a total of 7,968 gallons of syrup. The following year, Pepsi started being sold in bottles that held six ounces, leading to an increase in sales to 19,848 gallons. It wasn't

until 1924 that Pepsi underwent its first logo redesign after its initial design in 1905. Two years later, the logo was once again changed. In 1929, Barney Oldfield, a pioneer in automobile racing, endorsed Pepsi-Cola through newspaper advertisements where he described it as "A bully drink... refreshing, invigorating, a fine bracer before a race."

During the Great Depression in 1931, the Pepsi-Cola Company faced bankruptcy primarily due to financial losses resulting from speculating on volatile sugar prices caused by World War I. The company's assets were sold, and Roy C. Megargel purchased the Pepsi trademark. After eight years, the company faced bankruptcy once more.

Pepsi's assets were acquired by Charles Guth, President of Loft Inc, a candy manufacturer with retail stores that had soda fountains. Guth wanted to replace Coca-Cola at his stores' fountains because Coke wouldn't offer him a syrup discount. Therefore, Loft's chemists redesigned the Pepsi-Cola syrup formula. Pepsi gained popularity during the Great Depression with the launch of a 12-ounce bottle in 1936.

Initially priced at 10 cents, sales were slow. However, when the price was reduced to five cents, sales significantly increased. Pepsi used a radio advertising campaign with the jingle "Pepsi cola hits the spot / Twelve full ounces, that's a lot / Twice as much for a nickel, too / Pepsi-Cola is the drink for you" to attract price-conscious consumers. The campaign indirectly referenced Coca-Cola's practice of offering six ounces for five cents, in contrast to Pepsi's 12-ounce bottles at the same price. This strategy worked well during an economic crisis, and Pepsi's reputation improved. In 1936, 500,000,000 bottles of Pepsi were consumed alone, and the company's profits doubled from 1936 to

1938. This success occurred while the Loft Candy business was struggling.

After utilizing Loft's finances and facilities to establish the successful Pepsi, Guth was sued by the nearly bankrupt Loft Company for the ownership of Pepsi-Cola. This led to a lengthy legal battle known as Guth v. Loft, which eventually resulted in Guth's defeat, granting ownership of Pepsi to Loft. Subsequently, the two companies merged and immediately spun off the Loft company. During the 1940s, Walter Mack took over as the President of Pepsi-Cola and steered the company. Mack, a supporter of progressive causes, observed that the company's advertising strategy targeted a general audience without acknowledging or perpetuating ethnic stereotypes of African Americans.

Recognizing the potential of the African American market, Mack decided to focus Pepsi's advertising efforts directly towards them. He hired Hennan Smith, an advertising executive with experience in the Negro newspaper field, to lead an all-black sales team. Unfortunately, due to the onset of World War II, the team had to be disbanded. However, in 1947, Mack resumed his efforts by bringing in Edward F. Boyd to head a twelve-man team. Their approach included portraying black Americans in a positive light, such as featuring a smiling mother holding a six pack of Pepsi while her son, later known as Secretary of Commerce Ron Brown, reaches up for one.

Under the ad campaign titled "Leaders in Their Fields", twenty prominent African Americans, including Ralph Bunche and Gordon Parks, were profiled. Additionally, Boyd spearheaded a sales team consisting entirely of black individuals to promote Pepsi across the country. However, due to racial segregation and Jim Crow laws that persisted throughout much of the U.S., Boyd's team faced

significant discrimination, ranging from insults from Pepsi co-workers to threats from the Ku Klux Klan.

However, Pepsi utilized racism as a tactic to attract consumers by criticizing Coke's resistance to hiring black employees and its chairman's support for segregationist Governor Herman Talmadge of Georgia. Consequently, Pepsi gained a larger market share in comparison.