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MONTCLAIR STATE UNIVERSITY SCHOOL OF BUSINESS ADMINISTRATION MARKETING DEPARTMENT OFFICIAL COURSE OUTLINE I. Course Number: MKTG 344 II. Course Title: Advertising Theory and Techniques III. Credit Hours: 3 IV. General Description of Course (Catalog Description) A broad introduction to advertising, promotion and marketing communications: historical roots of advertising; advertising from the viewpoint of clients; advertising from the viewpoint of clients, ad agencies and media; and both the marketing aspects (strategy development; account management) and creative aspects (copyrighting; art direction production and editing) of advertising. Covers all forms of advertising: print, broadcast; out-of-home; and the latest advertising media such as direct mail and response; cable television; and Internet/interactive. In addition to traditional lectures, guest lectures are provided by various advertising professionals. Students also have a practical opportunity to create ads and commercials. Prerequisite: MKTG 240 V. Specific Objectives of Course A. B. C. D. E. VI. To provide students with a broad overview of the realm of advertising including the marketing, human, media, and creative aspects. To provide the “tools” need to develop effective advertising campaigns through exposure to the account management, media, creative, production, traffic, and legal departments’ responsibilities within the agency. To develop greater insight into the cooperation and interaction that is required between the advertising agency and its clients in the development of an advertising campaign. To foster a “learning environment” where students will be encouraged to ask questions and participate actively in discussions on current issues and trends in the world of advertising. To introduce students to the various career opportunities available within this discipline Course Content 1 A. Introduction to the Advertising Industry 1. Brief Chapter-by-Chapter Overview a. Chapters 1 through 4 – Introduction to Advertising as an integral part of the marketing function b. Chapters 5 through 6 – Advertising positions available on both the agency and client sides c. Chapters 7 through 14 – Various forms of media available d. Chapter 15 – The role of marketing research within advertising e. Chapters 16 through 22 – The creative aspects of advertising f. Chapters 23 through 26 – Advertising related issues and topics 2. Basic terminology used in advertising 3. The difference between advertising and public relations 4. Brand (product) advertising vs. corporate advertising 5. Advertising of ideas and concepts B. Advertising as a part of marketing and life in general 1. Case Study : “The Seven Deadly Sins of Advertising” from Harper’s Magazine 1989 which is used to generate student discussion about advertising and creativity 2. Explanation of the five-stage model of advertising and how advertising is utilized as a vehicle to increase sales a. Exposure b. Awareness c. Comprehension d. Acceptance/Credibility e. Immediate or Delayed Impact on Purchasing Behavior 3. Explanation that advertising messages seldom have the same credibility among consumers as that of word-of-mouth communications 4. Advertising within the marketing function a. The amount of money which is spent on advertising in the United States market alone annually b. Alternative activities and resources that could be done and used in place of advertising and promotion in order to meet Return-On-Investment expectations c. The ratios between the retail price of products and services vs. advertising dollars spent respectively for more than one hundred categories of goods and services 5. Advertising as a part of American culture and society a. Positive aspects of advertising that are commonly cited b. Negative aspects (complaints, suggestions, etc.) of the Influence, advertising has, which, are commonly cited. 6. The many different “publics” affected by advertising 2 a. b. c. C. Individual consumers, families and businesses (decisionmakers) Current, past, and potential consumers/customers Others: shareholders, potential shareholders, security analysts, employees, and local residents Historical Development of Advertising in the United States 1. Forerunners of advertising as seen in antiquity and the Middle Ages a. Babylonian clay tablets b. Egyptian papyrus c. Greek town criers d. Roman centurions and merchants e. Signage for old English taverns f. Gutenberg’s invention of moveable type (circa 1438) g. Siquis in English newspapers of the 1600s and 1700s 2. Precursors to American advertising a. Expanding population and the immigrant-like nature of Americans b. Spatial size of the United States and the exploration / settlement of the interior c. Innovations in transportation d. Innovations in communication vehicles e. Innovations in technology and industry f. Greater prosperity of the American population – not only among the educated and elite – but also among the industrial working class and even rural populations which resulted in the heightening of consumer expectations g. Innovations in media h. Characteristics of advertising around the turn of the century (1) Advertising of patent medications (2) Muck-raking journalists’ stories which led to the passage of the Pure Food and Drug Act (1906), Federal Trade Commission, and Food and Drug Administration i. Early forerunners of the modern agency: itinerant space salesmen of the print medium 3. Advertising since the end of World War I a. Three eras (1) Pre-Marketing Era (2) Mass Communications Era (3) Research Era b. Impact of the introduction of radio (circa 1920) on the field of advertising c. Beginnings of branding and consumer mass-marketing (1920s) 3 4. D. d. Advertising during the Great Depression (1930s) e. Significant role of advertising during World War II Advertising since the end of World War II a. Period of the 1940s (1) Affluence (2) Shortage of products (3) The coming of television b. Period of the 1950s (1) Tremendous growth of television (2) Suburbia (“keeping up with the Joneses) (3) Role(s) of advertising during the Cold War c. The calm before the storm (1960s) d. The late 1960s and the early 1970s (1) Vietnam War and the draft (2) Civil Rights Movement (3) Anti-Consumption and the beginnings of environmentalism (4) Women’s Liberation Movement (5) Conflict within the large ad agencies which results in the “creatives” getting the upper hand in advertising boutiques e. Period of the 1980s (1) Feast and famine in the advertising realm (2) Predominance of research resulting in market segmentation and product positioning (3) Rise of the modalities of direct marketing and cable television f. Current trends of the 1990s and the likely developments during the rest of the Twentieth Century Marketing Aspects of Advertising 1. Importance of the product life cycle theory in developing an advertising strategy a. Brief review of Product/Brand Life Cycle concept utilizing the space orbiting analogy b. Pioneering phase: introduction and rapid growth c. Competitive phase: competition and brand maturity d. Retentive Phase: epiphany of brand maturity e. Decision phase (“to advertise or not to advertise”): death or brand rebirth 2. Diffusion of Innovation Concept / Theory a. Brief review of this concept focusing on the work of Everett Rogers b. Identification of early adopters and the extension of their influence over other consumers 3. Brands, Branding, and Brand Management 4 a. b. 4. 5. 6. E. Review of brands, brand families, lines, line extension, etc. Discussion of the pioneer brand-oriented, market-driven organizations c. Review of the concept of the corporate structure behind brand management Brand Equity and the Development of Appropriate Advertising Strategies a. Brief review of the concept of brand equity b. Development of an appropriate advertising strategy and a discussion of its components c. Concept of integrated communication d. Brief review of the concept of a brand equity audit (SWOT analysis) e. Transforming an advertising strategy into a creative brief f. Importance of a formally written advertising strategy g. Analyzing, reviewing, and changing advertising strategies Target marketing a. All consumers do not represent the same potential for a brand / client b. Different segments / groups of consumers may be interested in the same product or brand, bot for entirely different reasons c. Specialization, fragmentation, and mass-marketing trends d. Reaching smaller segments through specialized magazines, cable television, and radio formats e. Ability to target consumers at the household level through the efforts of market researchers and database marketers Other Advertising-Related Marketing Concepts a. Segmentation by attitudes and impressions, brand preferences and usage, lifestyle, and expected benefits b. Niche-marketing, ethnic-related niches c. Four “P”s d. 80/20 Rule e. Psychographics Advertising Agencies, Practitioners, Clients, and the Client-Agency Relationship 1. Advertising (“A Look at the Agency”) a. The four main departments of the largest 100 to 200 agencies (1) Account Management (2) Creative Department (3) Media Department (4) Research Department b. Job titles and responsibilities within the large agencies (1) Account Management 5 2. 3. 4. (a) Management Supervisors (b) Account Supervisors (c) Account Executives (d) Traffic Employees (2) Creative Department (a) Creative Directors (b) Assistant Creative Directors (c) Copywriters (d) Art Directors (e) Producers (f) Casting and Music Specialists (3) Media Department (a) Media Researchers (b) Media Planners (c) Media Buyers (d) Operations Research Modelers (4) Research Department (a) Research Directors (b) Data Analysts (c) Project Directors (5) Responsibilities of the agency to the client Advertising (“A Look at the Client”) a. Organization of “Fortune 500” consumer packaged goods firms b. Job titles and responsibilities (1) Line positions (a) Vice President of Marketing (b) Group Brand Manager (c) Brand Manager (d) National Sales Manager (e) Regional Sales Manager (f) Sales Manager (2) Staff positions (a) Advertising Manager (b) Media Manager (Broadcast) (c) Media Manager (Print) (d) Collateral Manager (3) Responsibilities of the client to the agency Budgeting for advertising methods a. Percentage-of-Sales b. Payout plan c. Competitive budgeting d. Task method Client – Agency relationship a. Client selection of agencies 6 (1) 5. 6. F. Importance of personal relationships (some agencies end up managing a stable of their own clients through successively higher positions (2) Objective criteria (a) Capabilities and reputations of account management and creative personnel (b) Agencies experience on same size or same kind of account (c) Capability in all forms of media or in a particular modality (d) Availability of in-house research and media departments (e) Geographic location s of the agency (f) Pricing of services (g) Potential conflicts-of-interest Account Reviews and Shoot-outs Agency Compensation Overview of Media 1. Discussion of the weaknesses and strengths of the five major modalities of media a. Print b. Broadcast c. Direct mail / Direct response d. Out-of-Home e. Specialty 2. Current trends a. Disadvantages and advantages of having greater media diversity and complexity b. Increasing complexity of media selections and schedules causing many agencies to team operations researchers with media planners and buyers c. The search for more and more specialized media forms to reach smaller target markets d. Synergistic effect of using multiple modalities e. Need for an advertising and media strategy to encompass a variety of market segments and messages f. Expectation of clients for the agency to get more performance from each form of media for the same or even smaller amount of money g. Expectations of both the client and the agency for better and better media research from by the media owners h. Increasing use of ERPs rather than GRPs in the selection of ad media – a direct reflection of target marketing and fragmented media 3. Making comparisons across different media forms 7 a. b. c. G. Auditing of print circulation and the ratings of broadcast media CPM (Cost Per Thousand) measurement GRPs and ERPs; reach and frequency Advertising via Television 1. Brief history of television a. Early mechanical television and electronic television b. Work of Philo Farnsworth c. Iconoscope camera invention by Vladimir Zworykin (1923) d. RCA vs. Westinghouse in the race to develop the standards for commercial television e. NBC offered the first commercial telecasting in 1939 from the New York World Fair f. Only five television stations in the United States were on the air before WWII; all production and television operations were curtailed during the war g. (Fall 1945) Commercial television resumed and by 1947 there were seventeen US stations h. (1948) The number of stations increased to 48 and coaxialcable transmission was available; the first year that television set sales outpaced the sales of radios i. Between 1948 and 1952, the growth of TV stations slowed due to the “freeze” imposed by the FCC j. The “freeze” was lifted in 1952 when the FCC also made a greater number of UHF frequencies available k. Late 1940s and early 1950s (“Live Decade”) four television networks: ABS, NBC, CBS , and Dumont – at this time all networks and television production were centered in New York l. Color television was introduced in 1954 through the RCA system m. Late 1950s and early 1960s – television production migrated to the west coast and the majority of programs were broadcast via film or tape n. (1952 – 1956) growth in the number of television stations and household television sets primarily due to greater family prosperity and because of many hit comedy series and variety shows o. Cable television was developed during the 1960s p. Satellite television developed during the 1970s q. Efforts at interactive television have not proved successful 2. Strengths and weaknesses of television as an advertising medium 3. Explanation of television ratings 4. Detailed discussion of the inter-workings of television and television advertising 8 H. Advertising via Radio 1. Brief history of radio broadcasting 2. Strengths and weakness of radio as an advertising medium 3. Radio formats 4. Radio ratings 5. Exactly how radio advertising works I. Newspaper Advertising 1. Brief history 2. Strengths and weaknesses of the newspaper as an advertising medium 3. Current trends and controversies J. Advertising via Magazine 1. Brief history 2. Strengths and weaknesses of magazine as an advertising medium 3. Current trends and controversies K. Advertising via Out-of-Home Modalities 1. Brief history a. Outdoor advertising goes back further into antiquity than any other form b. “Broadsides” were posters used in colonial America and news bulletins were publicly posted as early as the late 1700s c. Billboards date back to the first decade of the automobile in the United States d. Highway Beautification Act (1965) placed major new restrictions on roadside signage e. New out of-home modalities are constantly being developed 2. The Best of the Burma –Shave Signs (Case study from the 1950s) 3. Billboard Advertising 4. Transit Advertising 5. Shelter Advertising 6. Purchasing, Usage, and other aspects of out-of-home advertising L. Advertising via Direct Mail / Direct Response 1. Brief overview and introduction to this modality 2. Various forms of direct mail / direct response advertising available 3. Current trends and controversies 4. Use of videocassettes for marketing and ordering M. Sales Promotion 1. Distinction between sales promotions and advertising 9 2. Forms of Sales Promotions N. Role of Research in Advertising 1. Detailed explanation and definitions of the five major kinds (a) Strategic research (b) Copy research (c) Media research (d) Tracking studies (e) Qualitative research 2. Important research aspects in regard to the realm of advertising 3. Media ratings O. Creation of Advertising Copy 1. Rules of thumb and practical advice from well-known copywriters 2. Nature and usage of appeals 3. Elements of an effective advertisement 4. Structure of an advertisement 5. Headlines 6. Sub-headings 7. Body copy 8. Slogans and tag-lines P. Creative work plan and review 1. Majority of big and medium-sized agencies develop a detailed creative plan that will be used to evaluate as well as guide the work 2. Many agencies have review boards to pass judgment on various ads and commercials Q. Connecting Words and Visuals Images R. Print Production 1. Brilliant creative work can be overshadowed by poor print production 2. Various methods and processes of print production 3. Typography 4. Typesetting 5. Finished Print Ad (“Mechanical”) S. Television Commercial Production 1. Case study: “30 Days and $300,000: The Process of Producing Two 30 Minute Television Commercials for Rolaids.” Smithsonian Magazine. 1990 February. 2. Timetable for production a. Creative personnel prepare “storyboard” of their idea for the commercial. It is very common for the larger agencies to have competitive events between the creative teams 10 Following review and / or research, the “winning” idea is developed further and then faces another round of agency and client approval c. Approved storyboard is then sent to agency, network and/or station attorneys to get an on-air clearance, before final editing and production begin d. Commercial shooting and editing is sent out by the agency for competitive bidding process e. Commercial “shoot” is done either in the studio or at a remote location f. Final editing can take from one to three days in an expensive, specialized video production facility g. After approval is attained from the client, agency, and media owners, it is duped into videotapes for the networks and stations that will play it Important decisions that have to be made with regards to the commercial’s effectiveness and aesthetic appeal b. 3. T. Radio Commercials 1. Detailed explanation of the production timetable 2. Important decisions to make with regard to the effectiveness of the ad and its appeal to consumers U. Trademarks and Packaging 1. Definition of all relevant terminology 2. Trademark regulation and protection as an exclusive piece of intellectual property 3. Packaging V. Retail Advertising 1. Distinction between this venue of advertising and the others a. 99% of the emphasis is placed on the actual merchandise rather than service, lifestyle, etc. b. Mainly print advertising because of the flexibility with regard to last-minute deadlines c. Strong emphasis on special sales events d. Much of it is done on a cooperative basis with the manufacturers 2. Current trends in retailing 3. Types of retail advertising 4. Advertising mix for retailing W. International Advertising 1. Size, scope, and terminology 2. Global economy (the new economic world order) 11 3. X. VII. Special challenges and controversies related to advertising around the world Advertising Restraints 1. Governing government agencies with the jurisdiction to regulate certain aspects 2. Special restraints with regards to comparison advertising 3. Self-regulation and oversight by the advertising industry Procedures/Techniques/Methods Lectures and student class discussion usually comprise about sixty percent of the course. Another twenty percent of the time is spent viewing television commercials, listening to radio commercials, viewing print advertisements, and discussing the aesthetics of such. Visiting speakers from the field of advertising compose ten percent of the time. Student advisement on potential career tracks comprises the remainder of the course. VIII. Instructional Materials Employed IX. A. Videotapes 1. Advertising Theories and Techniques (four tape series) from the publisher 2. Television commercials that have been produced and edited during earlier sessions of the course 3. Case study on Jack Daniels B. C. D. Audio Tapes – series of radios spots from Laughing Cow cheese Color slides of outstanding print advertisement Microsoft Office PowerPoint utilized to outline important topics of class discussion for the benefit of the students Basic Requirements for Completion of the Course A. B. C. X. Attendance and class participation are expected and closely monitored Two examinations Each student is given the choice of either shooting/producing a commercial advertisement on a product of their choice or making an oral presentation /review of current trends in advertising Required Readings Including Suggested Text(s) Jewler, C., ed. Creative Strategy in Advertising. Fifth edition. New York: Wadsworth Publishing, Inc., 1994. Russell, J. Thomas and W. Ronald Lane, ed. Kleppenr’s Advertising Procedure. Thirteenth edition. Englewood Cliffs: Prentice-Hall, 1995. 12 XI. Bibliography BOOKS Baker, Stephen. Visual Persuasion: The Effect of Pictures on the Subconscious. New York: McGraw Hill Publishers, 1961. Fox, Stephen. The Mirror Makers: A History of American Advertising and its Creators. New York: Random House Publishing, Inc., 1985. Poffenberger, Albert (1932). Psychology in Advertising. New York: McGrawHill Ramond, Charles (1976). Advertising Research: The State of the Art. New York: Association of National Advertisers. Rothenberg, Randall (1995). Where the Suckers Moon: The Life and Death of an Advertising Campaign. New York: Vintage Books (Random House). Also see hardcover edition (Alfred A. Knopf, 1994). Starch, Daniel. Measuring Advertising Readership and Results. New York: McGraw Hill Publishers, 1966. White, Percival. Advertising Research. New York: Appleton & Company, Inc., 1927. JOURNAL ARTICLES Allen, George H. “Today’s Advertising Makers: Raymond Rubicam.” Sharper Focus. American Association of Advertising Agencies. 1932. Belk, Russell W. and Robert Mayer. “Children’s Recognition of Consumption Symbolism in Children’s Projects.” Journal of Consumer Research. March 1984: 386-397. Booker, George W. (1981). “A Comparison of the Persuasive Effects of Mild Humor and Mild Fear Appeals,” Journal of Advertising, 10 (1981), 29-40. Cannon, Hugh M. and Riordan, Edward A. (1996). “Beyond Effective Frequency: Advertising Media Planning in an Era of Integrated Marketing Communication,” Proceedings of the 1996 Conference of the American Academy of Marketing. Hess, John (1996). “Yellow Pages Offer Insight into Trends,” Advertising Age, November 18, 1996, 38+. Hiebert, Ray E. (1994). “Advertising and Public Relations in Transition from Communism: The Case of Hungary, 1989-1994,” Public Relations Review (Winter 1994), 364-371. Kelly, J. Steven. “Subliminal Embeds in Print Advertising: A Challenge to Advertising Ethics.” Journal of Advertising. Summer 1979: 20-24. 13 Labich, Kenneth (1995). “Nike vs. Reebok: A Battle for Hearts, Minds and Feet,” Fortune, September 18, 1995, 90-94. Maddox, Lynda M; Mehta, Darshan; and Daubek, Hugh G. (1997). “The Role and Effect of Web Addresses in Advertising,” Journal of Advertising Research, 37 (2), 47-59. McDonald, Scott (1997). “The Once and Future Web: Scenarios for Advertisers,” Journal of Advertising Research, 37 (2), 21-28. McDonough, John (1995). “Radio: A 75-Year Roller-Coaster Ride,” Advertising Age, September 4, 1995, 24+. Newman, Jane (1997) “What Is the Client Relationship to Account Planning?” Essays on Account Planning (http://www.apgus.org/2_2a.html), Summer 1997. Rubicam, Raymond. “The Man with Something Extra.” Trained Men. July /August 1953: 5+. Scipione, Paul A. (1997). “Too Much or Too Little? Public Perceptions of Advertising Expenditures,” Journal of Advertising Research, 37 (3), 4958. Stewart, David W. (1989). “Measures, Methods and Models in Advertising Research,” Journal of Advertising Research, 29 (4), 54-60. Townsend, Bickley (1988). “The Media Jungle,” American Demographics (December 1988), 8-15. Viney, Robert M. (1993). “Solving the Agency-Client Mismatch,” Advertising Age, May 24, 1993, 20. Wallace, David J. (1996). “High Hopes for Smart Media Ratings Service,” Advertising Age, July 22, 1996, S16-S17. Weinstein, Sidney and Valentine Appel. “Brain Activity and Recall of Television Advertising.” Journal of Advertising Research. August 1979: 7-15. MISCELLANEOUS American Association of Advertising Agencies (1995). What Every Account Executive Should Know about Merchandising and Sales Promotion. New York: The Four A’s. Audits and Surveys. (1996). Study of Media Involvement. New York: Audits and Surveys, Inc. Wiles, Judith A. and Cronwell, T. Bettina (1990). “A Review of Methods Used in Measuring Affect, Feelings, and Emotion in Advertising,” in: Current Issues and Research in Advertising (James H. Leigh and Claude R. Martin, Jr., eds.). Ann Arbor, MI: University of Michigan, 260-273. 14