ADV 3008 Chapter Notes - Chapter 3-4: Consumerism, Puffery, Comparative Advertising
7 Mar 2018
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Chapter 3: celebs, help make ads believable, enhance ad recall, increase brand recognition, influence consumers to choose an endorsed brand, ensemble approach, using a pool of athletes. Economic impact of advertising: adv averages between 1 and 2% of the u. s. gdp. In industries subject to gov price regulation (agr, and utilities), adv has virtually no effect on prices: price is a main element in retail ads, keeping price down. Effect on competition: critique: adv restricts comp bc small companies can"t compete with immense adv of budget large firms. Effect on consumer choice: best way to beat competition is to make a unique product, encourages businesses to create new brands and improve old ones, freedom to advertise promotes existence of more sellers, giving consumers wider choices. In current recessions, even when companies are not cutting marketing dollars they want to spend their budgets more efficiently and looking for ways to measure the roi. Abundance principle: economic impact of advertising in perspective.
