Please describe the procedure of FTC regulation of advertising and measures?

Please describe the procedure of FTC regulation of advertising and measures?

FTC: Federal Trade Commission-  primary agency governing the advertising industry- main focus is to identify and eliminate ads that deceive or mislead the consumer.

FTC only acts off of complaints. If received complaint, company is given a warning and fined $10,000 a day until something is done/ ad is removed.

Unfairness: initiate investigations against companies that engage in unfair competition or deceptive practices.

Deception: regulate acts and practices that deceive business or consumers and issue cease-and-desist orders where such practices exist. Cease and Desist Order- requires that practices be stopped within 30 days.

Violations: deceptive or unfair practices:

1. Mandates as cease and desist order,
2. Affirmative disclosure and
3. Corrective advertising.

What is positioning? Explain briefly three commonly used positioning and give an example for each approach.

What is positioning? Explain briefly three commonly used positioning and give an example for each approach.

Brand positioning - how consumers define the product or brand relative to its competitors. Art of fitting the product or service into the lifestyle of your target segment(s) to set it meaningfully apart from the competition. Position the product in the mind of the prospects. The truth is irrelevant.
Attributes/ Benefits: identity features- determine where the brand has an advantage over its competitors, looking at both tangible and intangible attributes.

Perceptual map - illustrates the positions occupied buy competitors relative to important decision factors. These positions are determined by research into the perceptions of the target market. Price/ Quality (Luxury car vs Practical car,) Use/ Application (how, when and where,) Product class (where it stands in relation to other products,) Product user (how, when and where,) Positioning by competitor (how products go head to head with other competitors,) by cultural symbol and repositioning- when the market changes or new targeting opportunities arise.

Please explain the Facets Model of Advertising Effects?

Please explain the Facets Model of Advertising Effects?

The Facets Model- useful in both setting objectives and evaluating the effectiveness of brand communication.

6 types of consumer responses: 

1. Perception: see/ hear- exposure, selection and attention, interest, relevance, curiosity, awareness, and recognition.

2. Emotion: feel- wants and desires, excitement, feelings, liking, and resonance.

3. Persuasion: believe- motivation, influence, involvement, engagement, conviction, preference, and intention, loyalty, believability, and credibility.

4. Behavior: act- mental rehearsal, trial, buying, contacting, advocating and referrals, and prevention.

5. Association: connect- symbolism, conditioned learning, and transformation.

6. Cognition: think/ understand. Act/do- need, cognitive learning, comprehension, differentiation, and recall.

What are the job titles and descriptions of advertising practitioners in a full-service ad agency?

What are the job titles and descriptions of advertising practitioners in a full-service ad agency?

Account people: Account Management (account services)- acts as a liaison between the client and the agency. The account team summarizes the client's communication needs and develops the basic "charge to the agency," which the account manager presents to the creative team.

a. management supervisor- provides leadership on strategic issues and looked for new business.

b. account supervisor- the key executive working on a clients business and the primary liaison between the client and the agency.

c. account executive- responsible for the day to day activities and operates like a project manager.

d. account planning group- gathers all available intelligence on the market and consumers and acts as the voice of the consumer.

Creative people

a. copywriter- people who write.

b. art directors- people who convert these ideas into print/ tv ads.

c. Producers- people who convert these ideas to tv/ radio commercials.


Media People- people who recommend to the client the most effective means of delivering the message to the target audience. Has 3 functions: research, planning, and buying.

Internal Operations- serves the operations within the agency, including the trafficking department and print production as well as more general financial services and human resources.

Please explain what is branding and the connections of key concepts of branding: brand image, brand position, brand equity, brand value, brand loyalty, value gap, premium pricing and profits.

Please explain what is branding and the connections of key concepts of branding: brand image, brand position, brand equity, brand value, brand loyalty, value gap, premium pricing and profits.

Originally branding was all about identification and distinction of products/ companies, which allowed consumers to know what they are getting. Now, branding is about the consumer's perception of a brand, the intangible aspects of a brand, and it creates a special meaning for the brand.

Brand image: mental picture of idea about a brand that contains both association and emotion.

Brand position: identifies the location a product or brand occupies in the consumer's mind relative to competitors.

Brand equity: the value associated with a brand; the reputation that the brand name or symbol connotes.

Brand value: is the value the brand holds to the consumer and, separately, the corporation. This lies in the power of trust and acceptance to win and maintain consumer acceptance.

Brand loyalty: the attitude (respect or preference) toward a brand, and emotion or liking about a brand, and an action of loyalty. Brings repeat purchases.

Branding and Value Gap: the better known and valued a brand name is, the greater the value gap is. People are willing to pay more for the product because of the brand.

Branding and Premium Pricing: the company is able to increase their prices because of the goodwill of the brand, people are willing to pay more because of the brand, and the values that is claims to provide.

What are the intended and unintended social effects of advertising?

What are the intended and unintended social effects of advertising?

Social effects of advertising can be used positively or negatively. It can be used for social and political causes, like the Advertising Counsel Campaign, which produces informational ads for people. This can mirror or shape social values, normalize values, materialize and add to consumerism, create consumer demands, and even cheapens news and entertainment.
The unintended social effects of advertising are based in effects and ethics. For example: the portrayal of women/ men (gender stereotypes,) portrayal of minorities, the elderly, the disabled, and GLBT.

Advertising can be used negatively to sell products that are unhealthy are not beneficial for the consumer. They attempt to prevent unfavorable stories to be published or pulling controversial ads. An example: selling children unhealthy cereal. Advertisers are blue the line of advertising and editorial content.

Advertisers can influence the media actively because of the effect is has on the people. It is proactive when it is used positively for the people, where the masses benefit off the ad and reactively by negative attributes that advertising can portray.

What are the economic functions of advertising?

What are the economic functions of advertising?

The economical importance of advertising is a function of its social acceptance. There are two contrasting points to advertising's effect on the economy:

1. The first being the rational view where advertising is seen as a vehicle for helping consumers assess value through price cues and other information such as quality, location, and reputation. Advertising is seen as a means to objectively provide price/ value information, thus creating more rational economic decisions. 
2. The second approach focuses on images and emotional responses in order to appeal to consumers who are making a decision on non-price, emotional appeals. This demonstrates how images and psychological appeals influence consumer decisions. Claimed to be so persuasive that it greatly decreases the likelihood a consumer will switch products/ brands.
3. Advertising also plays into the realm of marketing: which is activity, set of institution and process of creating, communicating, delivering, and exchange offerings that have value to customers, clients, partners and society at large. The marketing concept focuses on consumer needs and wants.
4. The economic effect of advertising introduces the 4 P's: Product, Price, Promotion, and Place. This is where the marketing mix combines with the target marketing. 
5. The economic function allows for the creation of a value gap on products, which is the difference in how much and individual is willing to spend on a product and how much the product actually is.

What is the definition of Advertising? What are three major types of Advertising? Please give an example for each type of advertisement.

What is the definition of Advertising? What are three major types of Advertising? Please give an example for each type of advertisement.

Answer: Advertising is a paid form of communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers/ their target audience, provide information about products (ie: goods, services, and ideas,) and interpret the product features in terms of the customer's needs and wants.

The three major types of advertising are:

Identification: advertising identifies a product and/ or the store where it is sold. Identifying a product and where you can buy it. (Ex) Signs with the name of a store and a graphic image that correlates: a Nike ad with a sneaker on it and a website listed.

Information: advertising provides information about a product: to inform the audience about a good, service, or idea. (Ex) Starting your own lawn mowing business by placing out flyers with the service provided, name, and contact information.

Persuasion: advertising may persuade people to buy something. Having a recognizable name increases the importance of the product. (Ex) Nike, the products name itself holds high value for consumers. Because of its popularity and the use of well-known athletes, Nike is able to persuade consumers to buy their product to be like them.