Principles of Advertising - Exam 3 Study Guide | ADPR 3100, Study notes of Banking Law and Practice

Download Principles of Advertising - Exam 3 Study Guide | ADPR 3100 and more Study notes Banking Law and Practice in PDF only on Docsity! Chapter 13 – Digital and Direct-Response Advertising *Virtually every advertiser is using the techniques of direct response as a key ingredient of marketing strategies. Digital Pros: 1. A relatively inexpensive, quick, targeted, measurable, and easily available interactive medium 2. A combination if interactive audio with video capabilities that can engage a customer 3. Among the most flexible media with an ability to change messages immediately in reaction to market and competitive conditions Digital Cons: 1. Early failures made some advertisers cautious about exploring the unique possibilities offered vy this medium 2. Some consumers are still reluctant to use the internet as a means of buying products and services; they are timid to give their credit card numbers over the internet even though secure sites are available 3. There are so many websites that it makes it difficult for consumers to know what is available or have much time to spend with any single site. Direct Contact with Consumers Marketers have moved towards a more personal relationship with their consumers. They have progressed steadily from mass marketing wherein prospects were reached relatively indiscriminately at the lowers possible CPM to:  Category marketing (broad demographic targeting . Ex: women aged 18-34)  Niche marketing (more narrow categories. Ex: women aged 18-34 with children)  Group or community marketing (groups with common interests. Ex: tennis players) While this was happening, the competitive market was reducing the distinction among its brands resulting in: 1. Price competition with shrinking profit margins for sellers 2. A reliance on trusted brands to provide customers with a perception if consistent quality Customer relationship marketing (CRM): a management concept that organizes a business according to the needs of the consumer. From the standpoint of customers, it is clear that the audience feels empowered by interactive media, and they use this empowerment in a proactive manner. Customers are also embracing online couponing, entering sweepstakes online, and participating in other targeted sales promotion activities. Customers respond to promotions tailored to their interests and businesses are happy to avoid the expense of waste circulation. Although CRM sacrifices some control to customers, there are 5 advantages: 1. More effective cross-selling and upselling from current customers 2. Higher customer retention and loyalty 3. Higher customer profitability 4. High response to marketing campaigns 5. More effective investment of resources The use of interactive technology allows businesses to deal with the unique purchasing, lifestyle, and behavioral histories of each customer – businesses now have the capability of one-to-one marketing. The end results are that the consumer gains better value and the company engenders continued customer loyalty. Advertising and Digital Media It is estimated that in 2009 almost 74% of the U.S. population – or more than 22 million citizens – use the Internet. There are five primary types of advertising in digital media: search, online display, email marketing, social media marketing, and mobile marketing. Search: search, or keyword advertising, dominates all forms of digital advertising. Marketers can bid through auction systems on words or phrases related to their offering – advertisers only pay the search engine a fee when consumers click on sponsored links. This is a viable option for small advertisers with limited budgets. Online display: the second-largest type of digital advertising - include banners, buttons, microbars, skyscrapers, etc. these ads can be static, animated, or contain video, but most contain the direct- response feature of a link to the advertiser. Click-through rate (CTR) is the traditional measure of success for online display ads. CTR = number of clicks / number of times it is seen. CTR fails to consider a display ad’s influence on branding and other forms of marketing communication. Display ads are monetized in several ways, but cost-per-impression (CPM) still represents the industry norm – CPMs on ad networks range from $.60 to $1.10. Email marketing: “the rock star of direct marketing because it is the most cost-effective and most trackable.” Click-through is higher for consumer products and financial services. Marketers are moving from mass-emailings to much more targeted and personable approaches by using demographic data. New vocabulary for online marketers:  Spam: online advertising messages that are usually unsolicited by the recipient  Opt-in: a form of permission marketing in which online customers are sent messages only after they have established a relationship with a company. Only consumers who have granted permission are contacted.  Opt-Out: procedures that recipients use to notify advertisers that they no longer wish to receive advertising messages. A term usually associated with online promotions. Congress passed the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN- SPAM) Act of 2003 which establishes requirements for those who send commercial email and gives consumers the right to ask e-mailers to stop spamming them. Social media marketing: includes blogs, social network sites, chat rooms, message boards, podcasts, and video and sharing sites. There are two primary ways to advertise on facebook: set up a profile page and actively enlist friends and fans to sign up, and then send bulletins about special events and discounts, OR companies can run traditional online display ads on member pages. They can target audiences based on the information facebook users provide on their profile. Advertisers on facebook can choose to pay-per- 1. Direct orders. Includes all direct-response advertising that is designed to solicit and close a sale. All the information necessary for the prospective buyer to make a decision and complete a transaction is provided in the offer. 2. Lead generation. Includes all direct-response advertising that is designed to generate interest in a product and provide a prospective buyer with a means to request additional information about an item or to qualify as a sales lead for future follow-up 3. Traffic generation. Includes all direct-response advertising conducted to motivate buyers to visit a business to make a purchase. The advertisement provides detailed information about a produc but usually no order form. Three Important Features of Direct Response: 1. Direct response is targeted communication 2. Direct response is measurable 3. The message of direct response is personal The growth of direct-response is directly attributable to a changing marketplace. We have moved from a manufacture-driven economy to one that is dominated by huge retailers. Database Marketing: using computer technology, businesses are sorting through large amounts of data to look for new consumer insights, market segments, and patterns of behavior. This more sophisticated research and data cross-checking is called data mining. It allows companies to enhance profitability by examining how they have been successful in the past and apply those lessons in the future. A number of predictive models (called behavior maps) are used by businesses to predict future purchases. Data warehouses are centralized company-wide data storage and retrieval systems. The key to CRM and the benefits of database marketing is to provide information that allows a company to maintain the loyalty and profitability of its customers. The primary element in data mining is that the end result is a relationship that us beneficial to both the company and the consumer. Television and direct response marketing: Direct-response television (DRTV) comes in a variety of formats, but the most familiar are the short-form spot (30 seconds to 2 minutes) and the program- length infomercial. DRTV marketers are designing their messages with a twofold purpose: (1) immediate sales response and (2) bringing prospects to a company’s website in order to have them bookmark the site and become regular customers. The most used forms of DRTV are: 1. The traditional 30 second format with a tagline allowing consumers to order merchandise. 2. The 2 or 3 minute commercial 3. The infomercial: long-form television advertising that promotes products within the context of a program-length commercial Regardless of its format, DRTV has certain inherent advantages as an advertising tool: 1. It shows the product in use and provides opportunities for product demonstrations in realistic circumstances 2. DRTV can create excitement for a product. 3. DRTV offers immediate results. Within 15 minutes of a commercial spot, a company will receive 75 percent of its orders 4. Because most DRTV spots are not time sensitive, they can be scheduled in fringe dayparts for significant discounts. In addition, production costs of most DRTV are less than traditional television commercials. 5. DRTV complements retail sales 6. DRTV is a great technique for testing various product benefits and measuring sales response. Direct-response advertising is sold both on a paid and per inquiry (PI) basis. PI advertising can be very beneficial, especially to companies with good products but little capital. Television shopping networks: a number of major retailers and designers use home shopping networks to sell their products to this niche consumer market. These networks will continue to grow and occupy a larger place in general retailing. Radio and Direct Response: Despite its targeted audiences and niche programming, radio has not been a major player in direct-response marketing. Although the economic promise of “visual” radio is in the near future, for the present, radio can serve as a valuable supplement for a variety of direct-response marketers. The combination of low commercial rates and tightly targeted audience composition can saturate prime prospects with frequently occurring ads. Magazines and Direct response: it is in the area of business and trade publications that direct response is especially important. Magazines with editorial objectives geared specifically toward some particular business or profession can be extremely beneficial to direct-response marketers. Despite the importance of B2B magazine direct-response, consumer magazines also can provide an important means of reaching prospects. Magazine direct response provides the intimacy of direct response with the traditional advertising virtues of magazines. Catalogs: one of the oldest and most popular forms of direct-response selling. The role of the internet is a chief concern of catalogers that mail billions of catalogs each year. Another challenges id the increasing number of companies that are entering the ranks with either catalog sales or internet sales. Virtually every cataloger has a strong e-commerce site. The internet may offer catalog companies relief from catalog related production and postage costs that account for a large percentage of their total operating costs. As catalogers begin to take advantage of online options, they are discovering that their basic marketing techniques must be adapted to these new channels. One of the primary challenges involves dealing with the customer-controlled online environment and finding ways of encouraging prospects to visit the cataloger’s website. There are a number of keys to the successful process of moving a person from a prospect to a buyer: 1. The right product. Generally, catalogers have a hard time moving merchandise that is easily obtainable at retail outlets so there has been increased consideration to the uniqueness of products. Product differentiation is always important, but it is doubly so for catalog products 2. Exciting creative execution. People can’t try out what they see so the sales story has to be conveyed in attention-getting messages that grab the imagination of the reader 3. Reach a targeted group of prospects. Waste circulation is more expensive in direct marketing sp every effort has to be made to keep it to a minimum. 4. Fulfillment of customer service. 5. The process of successful selling doesn’t end with a single purchase. Catalogers must establish a means of database management that will allow product inventory management as well as a means of determining the quality of customers on a lifetime value basis. Direct mail advertising: because of the rising expenses associated with direct mail, it is anticipated that direct mail’s share of direct-response advertising will decrease in the future. One of the problems facing direct mail is that the sheer volume of mail coming to households makes gaining a competitive advantage very difficult. This challenge is all the more reason that direct mailers must take steps to reach targeted prospects with an interesting message and a worthwhile product. There are a number of organizations involved in the direct-mail list process: 1. List brokers: in direct-mail advertising, an agent who rents the prospect lists of one advertiser to another advertiser. The broker receives a commission from the seller for this service. 2. List compilers: usually a broker who obtains a number of lists from published sources and combines them into a single list and then rents them to advertisers. 3. List managers: promotes client’s lists to potential renters and buyers. The primary job for the list manager is to maximize income for the list owner by promoting the list to s many advertisers as possible. 4. Service bureaus: one of the primary jobs of the service bureau is to improve the quality of lists. This is called list enhancement and one of the most important steps is the merge/purge. This is a system used to eliminate duplication by direct-response advertisers who use different mailing lists for the same mailing. Mailing lists are sent to a central merge/purge office that electronically picks out duplicate names. Saves mailing costs, especially important to firms that send out a million pieces in one mailing. Also avoids damage to the goodwill of the public. 5. Lettershop: a firm that not only addresses the mailing envelop but also is mechanically equipped to insert material, seal and stamp envelopes, and deliver them to the post office according to mailing requirements. 6. Response lists: lists of prospects who have previously responded to direct-mail offers. These lists are more productive and the rental charges are higher than for compiled lists. List protection: the most common list abuse is multiple mailings beyond an agreed-upon limit. To monitor this, the list owner will include a number of fictitious names that can be tracked to see the number of mailings this is known as list decoying. The much greater problem is that the mailing offer may be too closely competitive with the list owner’s products (want profit, not competition) Testing direct-mail advertising: the most commonly tested e-mail elements in descending order of importance – subject lines, calls to action, design, body copy, offers, and timing The key elements in testing direct mail are the list, the offer, and the creative presentation. Direct-mail testing can be expensive so it is important to concentrate on major elements that normally determine the success or failure of a mail campaign. It is extremely crucial to research validity to test only one element at a time. Attitudinal Similarity: some ads express a consistent attitude toward a brand and the people using it. Nike is a strong brand name and its signifies status, glamour, competitive edge – its presence and identity is so strong that many people want to connect with the brand. Media Objectives: creative planning and media planning have the same foundations – marketing strategy and prospect identification – and they cannot be isolated from each other. Media attempts to be “media neutral.” The media plan involves three primary areas: strategy, tactics, and scheduling.  Media strategy: at the initial stages of media planning, the general approach and role of media in the finished campaign are determined: i. Prospect identification. ii. Timing. The media planner must consider many aspects of timing, including media closing dates, production time required for ads and commercials, campaign length, number of exposures desired iii. Creative considerations. Media and creative teams must accommodate each other. Media has to be creative in finding a way to reach and engage consumers  Media tactics: media planner decides on media vehicles and the advertising weight each is to receive.  Media scheduling: actual media schedule and justification are developed  The promotion plan: discussed very early, and its relationship to the advertising plan is determined. Promotion activities may involve dealer displays, in-store promotions, premiums, cooperative advertising, and coupon offers Other Integrated Elements: don’t forget the importance of every aspect of your IMC functioning as one voice. You need to maintain focus on the brand or positioning throughout the marketing mix. Getting the Campaign approved: for approval, it is wise to present a statement of the company’s marketing goals. Next, the philosophy and strategy of the advertising are described, together with the reasons for believing that the proposed plan will help attain those objectives. Not until then are the ads or commercials presented. Research – Posttests: the final part of a campaign entails testing its success. First, the expected results are defined in specific and measurable terms. Then, the actual research is conducted to see if these goals were met. The pretest is intended not only to provide a benchmark for the campaign but also to determine reasonable goals for future advertising. Chapter 23 – International Advertising *”glocal” describes how advertisers consider language and culture when tailoring global campaigns to populations around the world – or within the United States.* Going global: American consumers prefer foreign-made goods in a number of major product categories; a significant percentage of future growth in marketing and advertising will be more concentrated in the Far East, Middle East, and Latin America as sellers seek new customers for their goods and services. Nowhere is the expansion of global marketing more apparent than in the increase in international advertising spending levels. Among the major challenges is overcoming significant anti-American opinions abroad. The roots of these attitudes are varied, but many are related to the marketing of American products. For Example:  Exploitation. The sense that American companies take more than they give  Corrupting influence. The view that American brands enhance thinking and behavior that clash with local customs and debase cultural or religious norms  Gross insensitivity and arrogance. In many cultures there is a perception that Americans believe everyone wants to be like them  Hyper-consumerism. Agencies try to find those shared attitudes which are consistent from country to country but these companies must be sensitive to the distinct differences and pride that consumers feel toward their national and cultural heritage. The Multinational Corporation: the basic motivation is to make profit and expand their customer base. The fundamental economic model remains the same regardless of the company’s size. Another significant feature of global marketing and advertising is the paradox of a greater ability to communicate across international borders accompanied by growing nationalism and suspicion of outside influences in many countries. Whatever the reason, a growing sense of isolationism is a factor that the international marketers must weigh with care. Globalization: In some cases, isolationism can be resolved in part by greater sensitivity to other cultures, a willingness to learn local customers, and openness to new ideas. Globalization is a hybrid term meaning to adapt global marketing efforts (product and advertising messages) to local markets and cultures. The term usually denotes one or both of the following: 1. The creation or distribution of products or services intended for a global or trans-regional market but customized to suit local laws or customs. 2. Using electronic communication technologies, such as the Internet, to provide local messages on a global or trans-regional basis. Glocalization seeks to emphasize the belief that international sales of a product are more likely to succeed when companies adapt the product and/or promotion specifically to a particular local. (Ex: Nokia launched the “kosher phone” for Orthodox Jews in Israel, and McDonald’s adjusts their menu according to local food habits) Localized market strategies = good business and good corporate citizenship A greater sense of local country traditions may be more important than business expertise, and even the most astute marketers sometimes misunderstand local customs. (Ex: Walmart in German and South Korea  those people are not one stop, quick shop shoppers) The global economy will continue to grow, fueled by the emergency of middle-class societies in an increasing number of countries. In addition, communication technology is permitting advertisers to reach prospective buyer never before available to them. A growing global demand and a rising standard of living will combine to make advertising even more prevalent throughout the world. China becomes a leading global market: For many years, China has been known for its exports rather than its imports, but today, China is recognized for its potential as a growth market because of its size and the capacity of its growing middle class to buy goods. However, marketers have been warned to approach the market with caution because China is a very diverse and heterogeneous market. For example, advertising within China has been compared to global marketing because of its more than 22 providences, 5 time zones, and almost 300 cities with populations greater than 1 million. As more companies around the world seek growth opportunities, entry into the Chinese domestic market will become an attractive option that will be worth the risk The Internet and International Communication: A necessary element in the expansion of global business activity has been the growth of communication technology, particularly in developing regions. The introduction of satellite TV brought the possibility of reaching the majority of the world’s population with information, entertainment, and advertising. Business could expand much faster and efficiently. As impressive as satellite is, it pales in comparison to the distribution and usage of internet technology. Worldwide internet adoption: No communication technology has grown at the rate of the internet (1.6 billion people use). The potential for future growth is outside the United States and Europe. The key to successful global marketing is finding those common appeals that will work on a universal basis (a mother’s love for her child). International Legal Issues: multinational marketers face the problem of country-to-county variances in matters such as privacy and legal and regulatory standards. Online marketers must be aware that regulations differ widely from country to country. Internet promotions sent to an international audience should, at a minimum, include the following elements: 1. Provide the opportunity to opt out 2. Give honest and credible information 3. Prohibit the use of randomly generated addresses 4. Set standards to prevent relaying email from computers with authorization The Development of Global Marketing and Advertising: America no longer dominates global commerce. It is difficult to develop rigid guidelines for global commerce because each company faces unique issues and deals with them in a variety of ways. Traditionally, a major failing of American companies going abroad (especially those with little multinational experience) has been treating a market as if consumers were homogeneous in terms of demography and product preference  based on a lack of research, but more often it shows an appalling ignorance of local cultures and traditions Global Marketing: term that denotes the use of advertising and marketing strategies on an international basis. A company should adopt a single advertising and marketing strategy throughout the world where 2. Figure out how to manage centrally and communicate locally – must translate broad client marketing strategies to the level of the individual customer in each country they serve The Multinational Advertising plan: all advertising begins with sound planning and an adherence to basic marketing strategy. All forms of marketing communication should be coordinated and integrated rather than presented as a series of unrelated advertising messages. There are two areas of primary concern to international agencies and their clients: 1. Creative and cultural considerations: advertisers can no longer introduce their products and depend on latent demand for sales and profits, they must look at the social and cultural implications of their advertising. Successful creative execution begins with an in-depth awareness of a country’s culture, customs, and buying habits. 2. Media planning – a global perspective: the media function has suffered from three primary problems in international advertising: a. Media availability and/or usage levels b. Legal prohibitions – some of the more general restrictions common to advertising regulators throughout the world are: comparative advertising, advertising to children, internet advertising, standards of truth c. The lack of reliable audience research: There are two factors that have dramatically improved the ability of advertisers to reach target markets: rapid expansion of efficient global communication and the expansion of global retailers Advertising and Ethnic Diversity in the United States: more than 19% of US residents prefer a language other than English when at home. The task of marketing to a diverse population is made difficult by three trends: 1. Majority-minority transition: the marketplace is changing more quickly than many companies can adapt – the ethnic makeup is constantly evolving 2. Race is more difficult to determine: in the 2000 census, almost 7 million respondents listed more than one racial background 3. Citizens of the world: internet and technology allows more immigrants to stay connected with their family and homeland, making assimilation and acculturation a longer process Multicultural market power: companies are realizing that it’s not enough to simply identify ethnic market segments, they must relate to them as well. Companies generally give greater attention to the Hispanic market than either the African American or Asian American for two reasons: because the rate of assimilation as lower and the language differences. Even after Hispanics become fluent in English, they still use Spanish on a frequent basis. Diversity and U.S. Advertising: how advertisers deal with U.S. diversity is a matter of sensitivity and profitability. Language does not define how a person regards his or her cultural roots – even Hispanics who speak little or no Spanish are as likely to have strong values in the Hispanic community as those who speak Spanish. The emergence of value-driven, as contrasted to language-driven, marketing strategy is a primary change in the strategy and execution of ethnic marketing. Marketers are facing a dilemma because on one hand, firms know they must acknowledge consumer diversity in order to profitably market their products, but on the other hand, there is a growing acceptance of diverse cultures that suggests the future will be one of constant borrowing from a number of cultural identities. Marketing to various groups Media: Because of the relatively low-cost entry into the market, ethnic newspapers are the largest medium in terms of number of vehicles (although they are far surpassed by the audiences of ethnic- oriented television). Most ethnic-targeted publications have experienced a significant circulation and advertising increases during the past decade, with the exception of the African American press. This decline can be attributed to two causes: the civil rights movement pushed mainstream media to begin more balanced coverage of the African American community, and the fact that it is easier for major newspapers to assimilate African Americans because there is no language barrier. The Message: marketers must tailor their messages to specific target audiences, but they must also understand that subgroups exist within ethnicities. For example, when General Motors ran a Saturn commercial in Miami with a woman in a Mexican dress dancing in front of the Alamo, the Miami Hispanic community had little or no relevance to the commercial because the overwhelming majority of them are Cuban American. The Product: products from abroad are being introduced into the United States because companies believe there is a ready-made U.S. market of Mexican immigrants who are already familiar with the brand. They have a duel strategy of appealing to the Hispanic market and at the same time building future sales through crossover purchases from the general population. Research: for many years, reliable ethnic research did not exist but as more companies are spending more money into advertising, they have a lot invested into making sure that each dollar spent results in profitability among their target ethnic audience. Chapter 24 – Economic, Social, and Legal effects of Advertising The History of Advertising Criticism: 1. The Era of exaggerated Claims (1865 – 1900) 2. The Era of Public Awareness (1900 – 1965) 3. The Era of Social Responsibility (1965 – present) a number of studies indicate that buyers support those companies and brands that have gained a reputation for being good citizens and actively promote their good works. The Economic Role of Advertising: the primary role of advertising is communication, but there is a constant “persuasion versus information” debate that will never be resolved because it is the function of two forces: the biases of the pro-advertising and anti-advertising camps and the fact that advertising functions in both roles (persuasive and informative) Economic Arguments in Favor of Advertising: 1. Advertising provides consumers with information to make informed decisions about new products, availability of products, price, and product benefits 2. Advertising supports largely unrestricted media that disseminate news and entertainment and provides employment to thousands 3. By promoting product differentiation, advertising encourages continuing product improvements and the introduction of new and innovative goods and services 4. Mass advertising ultimately results in lower prices 5. Advertising contributes to increases in the overall economy by increasing generic as well as brand consumption Economic Arguments against Advertising: 1. The intent is to persuade, not to inform 2. On a macroeconomic basis, advertising spending is largely wasted because it primarily causes consumers to switch from one brand to another without any net economic gain to society 3. Many economists challenge the notion that advertising lowers product price. They charge that one of the primary goal of advertising is to insulate a brand from price competition by emphasizing emotional appeals so that price comparisons become less important to product decisions 4. The high rate of product expenditures in many product categories make it difficult, if not impossible, for new products to enter the market The fact is that there is evidence to support each of these claims and counterclaims of advertising. The Social Role of Advertising: Perhaps the fundamental question raised in the social context of advertising criticism is whether advertising shapes and defines culture or simply mirrors and evolving society. The answer is some of both. There are two major types of cultural effects of advertising on the audience: 1. Advertising’s inadvertent social role: study advertising from the viewpoint that ubiquitous, redundant messages presented by advertising through mass media created various changes in the way the audience responded to their audience. By the sheer weight of exposure, advertising ready-made market for the placement of products, especially those directed toward young, male audiences. 4. The Advertorial: the use of advertising to promote an idea rather than a product or service. Advertising’s Legal and Regulatory Environment: the public and the advertising industry itself agrees that companies that use illegal or unethical advertising tactics should be dealt with severely. Not only is deceptive advertising wrong, but it also creates a lack of trust in all advertising, making it difficult for honest businesses to effectively promote their products and services. There are three basic constraints on advertising: 1. Laws and regulations of legally constituted bodies such as Congress and the FCC 2. Control by the media through advertising acceptable guidelines 3. Self-regulation by advertisers and agencies using various trade practice recommendations and codes of conduct Caveat emptor is Latin for “Let the buyer beware”; represents the notion that there should be no government interference in the marketplace. Many of the principles of caveat emptor have been rejected. Rather, both businesses and the public realize that buyers have far less information than sellers, and they must be protected by legal guarantees of the authenticity of advertising campaigns. The Federal Trade Commission: in 1922, in FTC vs. Winsted Hosiery Company, the Supreme Court held that false advertising was an unfair trade practice. In 1938, the Wheeler-Lea Amendments broadened the scope of the FTC to include consumer advertising. The Role in the FTC in regulating deceptive advertising: one of the primary concerns of the FTC is to ensure that consumers are protected from deceptive advertising. The key to FTC enforcement is that advertisers must be able to prove the claims made in their advertising – be able to substantiate what they say. There is a 3 part test to figure out if a claim is untruthful: 1. There must be a representation, omission, or practice that is likely to mislead a consumer 2. The act or practice must be considered from the perspective of a consumer who is acting reasonably 3. The representation, omission, or practice must be material (in other words, the claim, even if not true, must be judged to have had some influence over a consumer’s decision) Method of FTC Enforcement: the following steps outline a typical model for the FTC intervention in alleged deception: 1. There is a claim of deception practices to the FTC 2. The FTC begins to investigate with a request for substantiation from the advertiser 3. If the FTC finds the practice to be unsubstantiated and therefore deceptive, a complaint is issued. The advertiser is asked to sign a consent decree where they stop the practice that is under investigation, but admit no guilt. 4. If the advertiser refuses to sign a consent decree, the FTC issues a cease-and-desist order. This order can carry a $10,000-per-day fine 5. Even if an advertiser agrees to abide by a cease-and-desist order, the FTC may find that simply stopping the practice does not repair past damages to consumers. They may be required to run corrective advertising to counteract the past residual effect of previous deceptive advertising (this began around the 1960s) 6. If a company cannot reach agreement with the FTC, its next recourse is the federal courts It is extremely rare that cases go beyond the cease-and-desist stage. FTC Rules and Guidelines: the FTC is responsible for enforcement and education in 3 areas: 1. Federal Laws passed by congress 2. Formal FTC industry rules: the telemarketing sales rule means that callers are authorized to provide caller information, the used car rule is intended to prevent oral misrepresentations and unfair omissions of material facts by used car dealers, and the contact lens rule made it mandatory that patients receive copies of their prescriptions. Among the most common areas of FTC inquiry for which guidelines have been issued are the following:  Environmental claims, the term “free” in advertising, “Made in the USA” label, Advertising as a Contract, facts versus puffery (meaning the advertiser’s opinion of a product that is considered a legitimate expression of biased opinion), testimonials, and warranties and guarantees. Robinson- Patman Act: a three-part “package” that evolved over a period of almost 50 years. These laws and their proposes are as follows: 1. 1890 Federal Sherman Antitrust Act: designed to prevent alliances of firms conceived to restrict competition 2. 1914 Clayton Antitrust Act: amended the Sherman Act; it eliminated preferential price treatment when manufacturers sold merchandise to retailers 3. 1939 Robinson-Patman Act: in turn, the Patman Act amended the Clayton act. It requires a manufacturer to give proportionate discounts and advertising allowances to all competing dealers in a market. Purpose: to protect smaller merchants from unfair competition of larger buyers For example, a manufacturer may not limit co-op dollars to television, knowing that many retailers iin smaller markets might not have practical access to television advertising. Such an offer is known as an improperly structured program. Slotting fees: payments to retailers by manufacturers to gain shelf space; the FTC has a continuing review of the role of slotting fees because it fears that they have the potential to prevent marketplace entry of new brands or prevent small retailers from gaining access to establish brands because of disproportionately high slotting fees. The Federal food, drug, and cosmetic Act: passed by Congress in 1938 and established the Food and Drug Administration (FDA); it superseded the original legislation (the original prohibited interstate commerce in misbranded and adulterated foods, drinks, and drugs) and gave the FDA increased responsibility. One of the most active and controversial areas of FDA regulation is consumer prescription drug advertising. Until 1997, pharmaceutical companies could only advertise prescription drugs to doctors, and then, consumer advertising was permitted. By 2005, $5 billion was being spent on direct- to-customer drug advertising. The FDA has begun an aggressive campaign of enforcing promotional regulations, often sending formal letters of warning to drug companies. The jurisdiction of the FDA to control and regulate labeling was enhanced when Congress passed the Nutritional Labeling and Education Act of 1990. Beginning on January 1, 2006, the agency was given greater enforcement authority over labeling, and labeling information was enhanced to include data about trans-fat allergen groups, and whole grain ingredients. Advertising and the First Amendment: despite a more open environment for commercial messages, judicial opinions supporting commercial speech still deny full first amendment protection to advertising. In 1980 the court articulated a set of guidelines concerning the constitutional protection that would be afforded commercial speech. These guidelines were set forth in the case of Central Hudson Gas and Electric v. Public Service Commission of NY. The court established a four-part test to determine when commercial speech is constitutionally protected and when regulation is permissible – known as the Hudson Four-Part Test: 1. Is the commercial expression eligible for first amendment protection? Is it neither deceptive nor promoting of illegal activity? 2. Is the government interest asserted in regulating the expression substantial? The stated reason for regulating must be of primary interest to the state rather than of a trivial, arbitrary nature 3. If the first two tests are met, the court then considers if the regulation of advertising imposed advances the cause of the government interest asserted. If we assume that an activity is of legitimate government concern, will the prohibition of commercial speech further the government’s goals? 4. If the first three tests are met, the court must finally decide if the regulation is more extensive than necessary to serve the government’s interest. Is there a less severe restriction that could accomplish the same goals? Because of the unique nature of communication, it may be that the Supreme court will never be able to issue a totally definitive decision that will cover every instance of commercial speech. CAN-SPAM Act of 2003: the controlling the assault of non-solicited pornography and marketing act is enforced by the FTC, and established requirements for those who sent commercial email. Among the major provisions to the act are the following: 1. False or misleading information is banned 2. Deceptive subject lines are prohibited 3. The e-mail must give recipients an opt-out method 4. Commercial email must be identified as an advertisement and include the senders valid physical postal address Advertising of professional services: one of the most controversial areas of commercial speech involves advertising by professionals, especially attorneys and health care providers. they can explore immersive media; there is also a strong social tie-in to enable the viral distribution of the media. Real places: Lays potato chips key message was that lays chips are fresher because they are locally grown. Their headline was “Our potatoes are grown closer than you may think.” So it was the combination of the potatoes growing out of the subway and the sign that made the immersive media. For the stove-top stuffing mix the key message was that it is satisfying. The headline was “Cold, provided by winter: warmth provided by us” They would have warmth lights placed in bus shelters that would provide warmth to people as they read their advertisement. Volkswagen’s key message is that acting responsibly can be fun. So they took responsible tasks (like throwing garbage away) and made them fun by adding sound effects to garbage cans. Prius also did these by delivering the key message that people who buy Prius can feel good about saving gas and saving the environment. They had a great social tie-in with Real Places: Games: Monopoly city streets which is a global online game in monopoly where you can buy property on google maps and made the game global. Nike also did a promotion called “Run to Start” where they created a game by giving people points for running fast along routes set throughout the city of London. Real places: facial profiling: Kraft mac and cheese had a campaign where they would let people’s smile dictate the appearance of the noodle on the screen. Honda did a similar thing with something called the dream wall where they would detect how much you smile and your gender and deliver a targeted advertisement. Virtual places: Games: they use smart phone capabilities to knock-up friend’s phones and promoting Durex condoms. Doritos does this with this online video game called the asylum 626. Uses all different types of capabilities and it has a social tie-in that lets friends save you. Real places: remote tests: Done where people can test drive a vehicle online. Real places: events: Sony viao is very small, light, and it fits in a handbag. It is powerful and it has GPS and 3G wireless – “Marriage of fashion and technology” Virtual places: Pranks: Dexter promoted their show using viral videos that would put your demographic information in a video and make it appear like you were Dexter’s next victim. Creative Toolbox: There are media types (static, dynamic, immersive), there are organizations (headline/visual, pitch, story, montage), techniques (visual metaphor, synergy, characters, plots, involvement, exploration) Key points: it is not about message delivery, it is about involvement. It can be user-directed. You are doing things that deliver the message. They enable you to explore in whatever direction you want to. They connect the product/brand to people’s normal lives and routines. Planning and context: keep in mind that rarely do agencies create just one ad for a client, much more frequently they create a whole series. This means you must keep in mind a lot of things to make sure that the ads are effective. They need to pay attention to other ads that are for your product/service. They need to take account of all the ads for your product/service in all other media – it needs to be consistent. They also need to pay attention to your competitor’s ads for products/services. They also need to pay attention to non-advertising mentions (things that advertisers cannot control and do not create such as: news coverage about product failures, lawsuits involving product, long lines about people waiting to buy your product. A campaign deals solely with advertising, but integrated marketing communication includes everything that advertisers have to pay attention to, plus the non-advertising mentions. Campaigns: there are many separate ads but there has to be a connection between all of them. Four characteristics hold it together: visual, verbal, aural, and attitudinal similarities. Visual similarity: could be similar layout, typeface, and style of images Verbal similarity: all the content should make the same key points. The second way to think about verbal similarity is the “voice” (the personality that comes through in the writing). This suggests that not only should the same key points be made, the same personality should come through to tie everything together. Aural Similarity: similar music song, same announcer’s voice, similar sound design (Budweiser campaign: True) Integrated Marketing communications: IMC is a plan that connects all the marketing communication activities. It is built around some kind of compelling story that everyone is already aware of, and IMC uses it in the context to build their whole campaign. The campaign criteria are extended throughout all marketing communications like: public relations, direct response, events, packaging, digital, promotions, and sponsorships. Campaigns and IMC: the last things we have to recall when talking about execution and development. All the ads have to tie together to create campaign continuity (verbal, visual, aural, and attitudinal similarity). With IMC, you must also build around an existing, compelling story or situation. Perspectives for explaining effectiveness: Behaviorism, Rationalism, Culturalism Effectiveness: Advertiser’s goal is effectiveness Possibilities o Cause you to buy (powerful) o Convince you to buy (not powerful) o Pressure you to buy (potentially powerful) 1. Cause you to buy  Behaviorism o Needs, urges, and instincts we cannot control  Food and water, shelter, etc  Romance, aggression, fear, etc o Can be controlled by others  Conditioning o Classical conditioning – discovery in the early 20th century of how this is done in a laboratory (psychology) o Modification of involuntary reflex behavior o Ivan Pavlov experiments  How much dogs salivated during digestion; dogs started salivating just at the sight of food or food dish, or hearing Pavlov’s feet coming to feed them; used stimuli for stand-ins for food  Behaviorist view of advertisers’ role o Create stimuli (ads) to condition responses that benefit the product/service o Overt – images clearly picturing a natural stimulus and clearly hooking it to a product through association o Subliminal  Representation o Symbolism  Isolated textual characteristic = specific meaning  e.g. long cylindrical shape always phallic  Behaviorism o You have innate drives and urges the can be conditioned to certain stimuli o Symbols (ads) as universal stimuli o Advertising is powerful 2. Convince you to buy  Rationalism o Needs and wishes individual, known, and controllable o Rational self-interest, rational choice o “Enlightenment” individual  Rationalist view of advertisers’ role o Deliver dependable, truthful information  Representation o Denotation  belief that ads provide intrinsic information out in the open, in a logical and rational manner o Another way of talking about “reason-why” advertising  Rationalism o Rational choices – make choices based on their own individual preferences o Dependable information (ads) crucial for informed decisions o Advertising is not powerful 3. Pressure you to buy  Culturalism Advertising and the first amendment: commercial speech can constitutionally be more regulated than political. Corporate speech is treated legally as political speech, but there are still limits that regulate things. Role of elected/appointed government: the people from the local and county councils, state and national legislatures and executive branch bodies that shape and make regulations like the Federal Trade Commission. 1800s: Little Regulation: back then, advertisements were outright lies. In 1910, there were no regulations against dishonest advertising. The postmaster general could bar use of mails but only the use of mails. Agencies became concerned with issues regarding truthfulness of advertising, and began calling it the “Bad Apple” Theory. So the good agencies went to the Federal Government and asked for regulation and were hoping to get their “government seal of approval” for the truthfulness of their ads which would increase their credibility. They wanted to protect themselves as a business, and they knew that if they joined hands with the government to craft these regulations they could make sure to define the advantage and make sure the regulations were not to harsh. The first thing was the Pure Food and Drug Act (1906): Which said you couldn’t have false messages. So then the Federal Trade Commission was formed in 1914 which protected consumers from deceptive and/or unsubstantiated ads. IF the FTC finds you are in violation, they can stop/change ads, they can force them to bear the cost of distributing corrective ads, and they can assign fines for advertisers to pay. Deceptive Advertising: One that is likely to mislead. The person that they have in mind is the average consumer that is acting reasonably and if they are misled, then it is deceptive. The deceptive elements have to have something material to do with the product and what it does. It has to do with the product and the claims for it. (Walgreens had a probiotic that claimed that the store brand boosted their immunity system and the FTC found those claims to be unsubstantiated, and Walgreens paid $6million in fines. You cannot claim without proof. Lifelock claimed that they provided absolute total protection and it was a deceptive claim. They had to pay $12 million in fines to the people who bought Lifelock) Legal Environment: We see first amendment law trend toward greater freedom for companies in corporate speech. We found out that regulations in industry were for self-interest. Laws and regulations largely deal with truthfulness. What about pressures? Legal vs. Ethical: Ethics has very little to do with how truthful the ad is, it has more to do with the pressures that the ad has. Just because an argument is true, doesn’t mean it is convincing. Also, an ad doesn’t have to have anything to do with truth in order to be effective (people are buying what they with their life could be). The legal realm has to do with deception because it is demonstrable, proven lies. The ethical field is not one of deception, it is one of manipulation. This is the way in which pressures work (positive or negative). Advertising can be legal, but still unethical. Ethical Dilemmas: First is advertising in schools. The reason it is unethical is because of the pressures of decreasing funding makes it hard to say no to advertising. there are also pressured because by advertising some brands, it makes students believe that those brands are “approved” which doesn’t allow them to make a choice on their own. Some forms of school advertising is on athletic signs (football sign) and exclusive product partnership (Coca-cola with UGA) and in lesson books (Mars comes to you with M&M math books which promotes candy). Another is channel one which lends schools satellite dish, VCRs, DVRs, and TV sets for every classroom. For a school with no money, this is a great deal…but in exchange, every classroom must devote 12 minutes of its day to watching a newscast on their network and it includes 2 minutes of ads. Reaches approximately 6 million teens nationwide and is in 8,000 middle and high schools. The promotion of tobacco use among minors is another ethical dilemma. When the tobacco industry tried to build a product market by promoting smoking in young teens even though there are so many proven health issues that go a long with smoking Fast-food advertising is also questionable. In a lot of ways you can’t pin the numbers on fast food as you can on tobacco. Children know who McDonald is, but not Jesus Christ or George Washington. Ethics in the Workplace: how do advertising people makes sense of ethical dilemmas? Drumwright and Murphy in 2004 went around the country and conducted 51 interviews with 29 agencies in 8 cities. They talked to various departments, ages and genders. They found that as a whole, people in advertising are ethically impaired; they just don’t see ethical problems. They only saw ethical problems as being on the personal level, they did not see any larger problems like ethical problems at an organizational level. They were even less aware of societal ethical problems that their advertising was indicating (unintended consequences) Moral myopia: You can see ethical problems but only ones that are personally effect you “Even if I tried to put out an unethical ad, no consumer whould be dumb enough to believe it.” A way to justify unethical ads because they believe that everyone would recognize it – consumers are smart “All we do is reflect society nack to itself” passing the buck “It’s really hard to be unethical in this business, we have to run everything by our lawyers.” They are confusing and overlapping legal with ethical, even though they are separate. “How could I develop a code of ethics for my agency? It would go against the First Amendment.” This is a great misunderstanding of the first amendment, a code of ethics is in line with the first amendment “If I succeed then my clients succeed too. So if it doesn’t feel like stretching the truth is doing anything wrong.” they give up their professional independence and “go native.” “I don’t have a lot of time to sit and think about it if people who made this thing are really evil” This is called the ostrich syndrome (put head in hole and hope it will go away). These are all ways to justify unethical activity. Moral Muteness: You ignore the wrong implications “I’m providing for my clients but on a personal level, I find what they do to sometimes be offensive.” They call this compartmentalization (when you leave work you will be one way, but at work you will suspend your ethical judgment.) “If I want to stay in business, I have to give my clients what they want.” The problem is that this says that the client is always right; it takes agencies and puts them lower. “ethical advertising means bland, ineffective work.” This is equating ethics as being bad for business and insinuates that you can’t be successful if you are ethical. “If we got bent out of shape over every ethical issue, we wouldn’t get anything done.” The Pandora’s Box syndrome because once you open the box, you can never stop dealing with it. Ethically Active: the researchers also found a number of people who are very ethically active and foreground ethical issues in the way in which they do their job. They openly encourage ethical action. They also encourage others to recognize when moral issues come up, and deal with them. They talk about them, and mention it to clients. They use four tactics: recognition, communication, saying no (the agency), moral imagination (meant that people could see beyond the personal, ethical dilemmas and into the organizational and societal ethical issues). Keypoint: The legal realm is different because it has contradictory complications. They have behaviorism (protect people), rationalism (provide dependable information). Ethics only addressed fully by culturalism and the recognition of pressures. Challenging the Agency Agency organization: remained the same model-wise since the 1870s. They have been exclusive and the people in an agency are skilled professionals. The work is done in a producer-led paradigm (the purpose of an agency is to have a small group of professionals that organize a message for the public – one-way communication). This model is less and less adequate for today. The reason is because of the rise in consumer-led paradigm, web 2.0, and immersive, participatory execution. The new “agency”? Rather than being a small group of professionals making a decision, anyone who wants to get involved can (it is known as crowdsourced). A transition from the agency being the originator of messages, to being the coordinators of the actions that take place in regards to an ad. Conditions of emergence: During the 1960s, the creative revolution sparked a different way of thinking about advertising and began the consumer-led paradigm. The current situation: there have been some great changes in P-L to C-L in:  manufacturing and design  marketing  form of advertising There are two key things that you need to be listening to: what are the key differences in the executions between the two campaigns? And what is the reason for the differences in the ads? American Red Cross Join: 1917, latched onto the patriotism. An example of the producer-led paradigm and the message is very simple (Join the Red Cross). Presidential support increased membership. The main goal of the Join campaign was to reposition themselves as patriotic – targeted women, children, and older men. White woman is the central image and is virginal and reaching out. Static media. Give the Gift that Saves the Day: During the recession, the Red Cross used the holiday spirit to promote people to give money to a meaningful organization. Targeted older, more economically stable audience; very emotional campaign that targeted the heart of donors – mimisis and the people getting help are outlined in a box showing that the people who receive help could be anyone. National advertising was huge during the give the gift that saves the day. *They tried to reposition by focusing on the holiday spirit of people. Dynamic and static media Twix Originally named “Raider” and has competitors such as Reese’s and KitKat. The Visual rhetoric is an entertaining show, fantasy. They used celebrities and the elements of the candy bar are embedded into the campaign. Aged towards 16-24 year-olds and it is gender neutral. The creative execution is that it is created like a music video and it had celebrity endorsements and the “coolness aspect” Going global: it was the first global campaign and everyone else used humor, and Twix used music. After this campaign it went from 30th to 2nd in coolness factor. Allegory = pop, polka, rap  representative of the “mix” in the twix bar. Need a moment: Mimetic visual rhetoric that is situational, and real life. The target audience was mid twenty men and the tone is focused on adult, sexual humor. The backlash is that the commercials show men as being chauvinistic and manipulative and women are perceived as “bimbos.” Comparison: “it’s all in the mix” is young teen gender neutral target audience and uses a show with fantasy rhetoric and focuses on the product ingredients.“need a moment” is mimesis, real life situation and older, male target audience with no focus on the product ingredient but focus on product benefit. Key differences in execution: All a mix is a show, need a moment is mimesis And the change is due to the childhood obesity epidemic and shift in target market. VISA. “Life takes Visa” Campaign: 2006 campaign and it was the first-rebranding that VISA has done. It increased the volume and profitability for the visa family of payment-related products. Highlighted use of the debit cards - focused on buying possessions. “More people go with visa” Campaign: introduced at 2008 olympics, first global themed campaign. Focused on 3 messages: global, regional, and local. Wanted to create a synergetic relationship combining global, regional, and local messages to reflect the current state of the economy – focused on the ordinary, everyday activities (rational spending) GO campaign is still the focused campaign Differences: Life takes Visa – focused on credit cards, local, little to no focus on social media, and spontaneous spending Go – Focused on debit cards, global, strong social media advertising platform, rational spending Why the differences? “Life takes visa”: Rebranding and it had been 20 years since visa changed its campaign strategy economically in good shape “GO”: 2008 focused on recession, expanded the global market, same target audience just different economic situation American Express launched the sky miles program so visa was trying to set them apart with the rebranding. Walmart Walmart: 1960-1980 Was called walton’s to walmart. Changed their look to appear more consumer friendly and they own 17% of the market today. Rollback campaign: Summer 1996 – Summer 2006. Producer-led campaign, they make use of fantasy and are positioned to all be taking place in walwart visual similarity Competitors were Aldi’s and Fred’s and specialty stores . The target market is called “the nancy” women in their 40s with several children looking for cheap price and ignored quality. Lawsuit: trademark infringement and started the save money live better campaign. Save money, live better: Spring 2007 – Now. More focused on how walmart is for everyone and promotes more of the average family need. Creative is to show what people can do with the money they save from shopping at walmart. The key message is repeated and it is consumer-led where walmart is represented as a place where you can do so much more. New Competition: Target has become their biggest competitor. Walmart’s target market remained the family but tried to gain the sophisticated demographic. Rollback: show, superheroes, quantity over quality, producer-led, customer service Save money, live better: show, emphasis on family, quality over quantity, consumer-led, consumer focused. Reasons for change: the lawsuit, the economy, and a revamped target audience to include Coca – Cola Coca-cola: 1886 in Atlanta and is now in over 200 countries Brand positioning: always: visual rhetoric and all age groups and had computer animated ads, 5 note jingle, open happiness: verbal-visual synergy, print/static ads, the only unifying thing in their ads were the always coca-cola campaign. coke recorded an entire musical soundtrack, changed: always: producer led , commercials featured foreign cultures, computer animation with simple plots, five note jingle. Consumer environment, campaign focus maintaining image, target market, global audiences and cross generations audiences. open: consumer led, commercials made by local agencies in foreign why make changes: consumer led engages consumers and establishes an emotional connection conclusion: always: producer-led paradigm in digital media. open happiness: was consumer led, happiness machine Chevy An American Revolution: communicate a core value, tons of new cars, toward younger, more fast-paced – especially males. Chevy Runs Deep: prey on the emotions of the customers, just came out of the recession, families and people with the American spirit is the target audience, main differences: family (chevy runs deep) v. younger (American revolution). retentive (chevy runs deep) stage vs. competitive stage (an American rev). Emotional connections (chevy runs deep) vs. immediate sale (an American rev) ATT iphone campaigns History: June 29, 2007 was the release of the Apple iphone and they originally partnered with AT&T to develop it. Within 3 months, Apple sold over 1 million iphones. Apple gave ATT rights to the iphone until 2011 and the newest is the 4GS. The level of data uusages has had a 50x increase Facetime campaign: 4 commercials (meet her, haircut) from the summer 2010 – summer 2011. Mimetic, emotional appeal, dynamic media because online and TV Target audience: “stay connected” under 30, primarily females, secondary education, family oriented, tech savvy. Surf and Talk campaign: Wanna Bet and reservation Guru are the commercials. January 2011 – present. ATT is in the competitive stage during this campaign because at that time, Verizon had the iphone too. It uses dynamic media, and mimesis. The target market changed to “looking for convienence” ages 20-40, primary male Heidies: dynamic immersive media, pioneering phase, create awareness, consumer-led paradigm, and a story Why the change: Be stupid: reposition. Heidie: needed to create a unique campaign to introduce a new product Axe History: launched under the name Unilever and inspired by the brand Impulse. Due to trademark issues, Axe goes by the name of Lynx in some countries. Axe effect: targeted to men, pioneering stage, dynamic and immersive campaign, the Axe effect is an ongoing campaign. Target market: men age 15 – 30 years old, lower socioeconomic class. A well- targeted strategy communication effectively iby using humor Clean your balls campaign: in the competitive stage, very controversial, it was a viral campaign only, target audience was men rnage 15 – 80, lower to middle socioeconomic class, appeal to audience due to humor and subliminal messages. Differences: Pioneering in Axe “even Angels will fall”, competitive in Clean your balls, Even Angels will fall uses all types of media, Clean your balls used only online and TV Pepsi History: the Pepsi logo was created to support WWII efforts, Pepsi had the first radio jingle to be heard coast-to-coast. Joy of Pepsi: generalized the message to target a more generalized audience, focuses on music, and a shop of Pepsi’s success Pepsi Refresh: Big part was pepsi refresh project where people wuld submit ideas that supported communities and education, Pepsi wanted to show that they did more than just sell coke, they wanted to deepen their relationships with customers, this was also a big shift to digital Differences - Joy of Pepsi: more of a show, competitive stage, target market was the current generation, and dynamic media Pepsi refresh: evocative, new pioneering stage, target market was every generation, immersive/convergent digital media Reasons for differences: rebranding by changing from being a corporate entity to one that is more aware of audience, they also wanted to be more technically connected (digital), and the economic landscape Geico (Government employee insurance company org) The Gecko campaign: began in 1999 during a screen actor’s guild strike when real actors couldn’t be used. His popularity was pretty much instant. Strategy was for brand recognition and the target market was money conscious adults. The types of media were static, dynamic and immersive. It was producer led and then consumer. The campaign was widely successful and was voted as America’s favorite advertising icon in 2005. The caveman campaign: promote the use of their website and the target market is adults that are not proficient in internet use. Consumer led, and uses a storyline where there is a stasis, stasis upset but what is unique is that the stasis is never restored. Used static, dynamic, and immersive media. America’s favorite advertising icon in 2008 Reasons for change: expanding technology and a new character Gecko: brand recognition, money conscious adults, static, d, I, producer then consumer, pitch Caveman: website recognition, no proficient internet users, s, d, I, consumer led, story. McDonalds We love to see you smile: June 2000 – September 2003 retentive stage campaign, focused on an emotional response using rhetorical tools and celebrity endorsements, no real target audience – it was general I’m lovin it: the key was simplicity, during the competitive stage and it completely re-branded the company, this was the introduction of the McCafe and a healthier menu, it was the first international campaign, most of the static media portrays a unique selling point (cow made from veggies to sell the veggie burger) Key differences We Love to See you Smile: retentive, focused on emotional responses using rhetorical characters, emphasized lifestyle, used when Mc Donalds was looking for more sales, cheaper the better I’m Loving It: competitive stage, developed as a result of bad image, rebrand, used to show the healthiness and quality of the food, first international campaign. Reasons for change: biggest reason was health concerns so they began focusing on the healthiness and quality of their food, the documentary Super Size Me also impacted the change, there was also more competition like Subway, and people began cooking at home more to save money