principles - gbv · the power of brand communication 168 interaction and impact 168 i strong and...

PrinciplesEighth Edition

University of Colorado

Nancy MitchellUniversity of Nebraska-Lincoln

William WellsUniversity of Minnesota

Pearson Education International

NTS

Preface 25

PART 1 A PASSION FOR THE BUSINESS

1. INTRODUCTION TO ADVERTISING 50IT'S A WINNER: The Truth of the Matter ' 50

What Is Advertising? 53Evolution of the Definition of Advertising 53 I Defining the Modern Practiceof Advertising 54 I The Components of Modern Advertising 55 I

Roles and Types of Advertising - 57The Marketing Role 57 I The Communication Role 57 I The EconomicRole 58 I The Societal Role 58 I Types of Advertising 59 I

The Key Players 60

The Advertiser 60 I

A MATTER OF PRACTICE: The Greatest Commercial Ever Made 61

THE INSIDE STORY: Why Do I Love Advertising? 63The Advertising Agency 63 I The Media 64 I The Suppliers 65 ITarget Audiences 65 I

The Development of Advertising 66An Advertising Timeline 66 I

A MATTER OF PRINCIPLE: The Sales Approach and Lasker's Reason-Why_ 69

Current Developments 69The New Advertising 69 I

PRACTICAL TIPS: Why You Probably Don't Want to Read This 70Interactivity 70 I Integrated Marketing Communication 71 I Globalization 71 IWhat Makes an Ad Effective? 72 I Effectiveness and Award Shows 72 I

IT'S A WRAP: The Truth about the truth® Campaign 73

Key Points Summary 73

Key Terms 74

Review Questions 74

Discussion Questions 75

Take-Home Team Projects 75

Yahoo! Hands-On Case 75

Hands-On Case: Dueling Computers 76

10 CONTENTS

2. ADVERTISING'S ROLE IN MARKETING 78IT'S A WINNER: Puma's Evolution of the Species 78

What Is Marketing? 80Key Concepts in Marketing 81 I

A MATTER OF PRINCIPLE: It's Pure and It Floats 86Types of Markets 87 I The Marketing Plan 89 I The Marketing Mix 90 I

A MATTER OF PRACTICE: Creating Concepts 94

The Key Players 94The Marketer 95 I Suppliers and Vendors 95 I Distributors and Retailers 95 IMarketing Partners 96 I

How Agencies Work with Their Clients 96Types of Agencies 99 I How Agency Jobs Are Organized 100 I

THE INSIDE STORY: The Day-to-Day Job of an Account Executive 101How Agencies Are Paid by Clients 101 I

Current Developments in Marketing 102Accountability 102 I Integrated (or Holistic) Marketing 103 I EmergingMarketing Strategies 103 I Global Marketing 104 I

IT'S A WRAP: Puma Leaps Forward . 105


Key Terms 106

Review Questions 107




Hands-On Case: WPP's Owner—a British Knight with Strategic Moves 109

3. ADVERTISING AND SOCIETY 110IT'S A WINNER: Whirlpool + Habitat for Humanity = Good Business 110

What Is Advertising's Role in Society? 112Demand Creation Debate 1121 Shape-versus-Mirror Debate 113 1The Overcommercialization Debate 115 1 Other Social ResponsibilityIssues 115 I

A MATTER OF PRACTICE: Pizza, Tacos, and Truck Parts: Misuseand Misdirection of Sex in Advertising 116

A MATTER OF PRINCIPLE: Preston on Puffery 121

Why and How Is Advertising Regulated? 125Advertising's Legal Environment 125 I Advertising's RegulatoryEnvironment 129 I Media Review of Advertising 134 I Self-Regulation 134 I

What Guides Ethical Behavior? 137Personal Ethics 137 I

PRACTICAL TIPS: Brilliant or Offensive Advertising? '' 138Professional Ethics 139 I International Standards and Codes 139 I

PRACTICAL TIPS: An Ethics Checklist for Advertisers 140

IT'S A WRAP: Whirlpool Profits by Helping Turn Houses into Homes 140


Key Terms 141




CONTENTS 11


Hands-On Case: Axe Gets Dirty Boys Clean 143

PART 2 PRINCIPLE: STRATEGY IS CREATIVE, TOO

4. HOW ADVERTISING WORKS 146IT'S A WINNER: Chick-Fil-A Builds Brand with Renegade Cows 146

How Does Advertising Work? 148

How Advertising Works as Communication , 149The Communication Model 149 I Advertising as Communication 150 IAdding Interaction to Marketing Communication 151 I

The Effects Behind Advertising Effectiveness 152Traditional Approaches 152 I Sorting Out the Effects 153 I

New Approach: The Facets Model of Effects 154

PRACTICAL TIPS: Marketing Communication Effects 155See/Hear: The Perception Facet 156 I Feel: The Affective or EmotionalFacet 157 I

A MATTER OF PRINCIPLE: Ice Cubes, Female Breasts, andSubliminal Advertising 158Factors Driving the Affective Response 159 I Understand: The CognitiveFacet 159 I

A MATTER OF PRACTICE: Does Negative Political Advertising Helpor Hinder Citizens? 160Connect: The Association Facet 162 I Believe: The Persuasion Facet 163 IAct: The Behavior Facet 165 ITHE INSIDE STORY: The Curiosity-Arousing Function of Antidrug Ads 167

The Power of Brand Communication 168

Interaction and Impact 168 I Strong and Weak Effects 169 I

IT'S A WRAP: Cows Grab Business for Chickens 170


Key Terms 171





Hands-On Case: If It Walks Like the Aflac Duck . . . . 1 7 3

5. THE CONSUMER AUDIENCE 174IT'S A WINNER: Dove Redefines Beauty 175

How Does Consumer Behavior Work? 177

Influences on Consumer Decisions 177Cultural Influences 178 I Social Influences 180 IA MATTER OF PRINCIPLE: Gay Buying Power 186Psychological Influences 186 I Behavioral Influences on ConsumerDecisions 192 I

THE INSIDE STORY: The Grand Myth of Early Adoption 193Trends in Consumer Buying Behavior 194 I

12 CONTENTS

The Consumer Decision Process 195The Information Approach to Brand Decisions 195 I The Paths to BrandDecisions 196 I Influences on B2B Decision Making 197 I

Segmenting and Targeting 197To Segment or Not to Segment? 198 I

A MATTER OF PRACTICE: Using DDB Life Style Data to Segment an Audience 200Targeting the Right Audience 201 I

What Is Behavioral Targeting? 202THE INSIDE STORY: Behavioral Targeting: An Emerging Form of OnlineAd Targeting 202

IT'S A WRAP: Love Your Body 203


Key Terms 204



Take-Home Team Projects ^) 206


Hands-On Case: Toyota Goes After Tuners 207

6. STRATEGIC RESEARCH 208IT'S A WINNER: You Do Your Best Thinking in the Shower 208

The Quest for Intelligence and Insight 211Types of Research 2111

PRACTICAL TIPS: Web Sites for Advertising Research 213

A MATTER OF PRINCIPLE: Using Research to See If Advertising MakesSmoking Cool 217The Uses of Research 217 I

Research Methods Used in Advertising 220Background Research 220 I Consumer Research 221 I Ways of Contact 221 I

THE INSIDE STORY: The Power of Design Personas 222

A MATTER OF PRACTICE: Online Survey Research 224Choosing a Research Method 229 I

Research Trends and Challenges 229Globalization 229 I Media Changes 229 I'Embedded Research 230 I InsightfulAnalysis 230 I

IT'S A WRAP: Singing in the Shower • 231


Key Terms - 232





Hands-On Case: What Lies Beneath? Making a Choice 234

7. STRATEGIC PLANNING 236IT'S A WINNER: Repositioning Kodak for the Digital Age 238 .

Strategic Planning 238The Business Plan 239 I The Marketing Plan 241 I The Advertisingor IMC Plan 242 I

CONTENTS 13

A Campaign Plan 243Situation Analysis 244 I Objectives 245 I

THE INSIDE STORY: A 2-Week Challenge by Special K 246Targeting 248 I Positioning 248 I

A MATTER OF PRINCIPLE: What Is Diversity and Why Is It Important inAdvertising? 249Brand Communication Strategy 252 I

A MATTER OF PRACTICE: 7-Up: The Uncola Story 253Campaign Strategic Approach 254 I Campaign Implementation andManagement 255 I

Account Planning: What Is It? 256The Research Foundation 258 I Consumer Insight: The Fuel of BigIdeas 258 I Insight Mining 258 I

PRACTICAL TIPS: How Insights Teams Become Game Changers 259The Communication Brief 260 I

Planning for IMC 261

Differences in IMC Strategic Planning 261 I Synergy 262 I

IT'S A WRAP: Picture a Winner 263


Key Terms 264





Hands-On Case: Chasing the NASCAR Fan 266

PART 3 PRACTICE: WHERE ARE MEDIA HEADING?

8. MEDIA BASICS AND PRINT MEDIA 270IT'S A WINNER: Staying Cool with Apple's iPod 270

Media Basics 273The Changing Media Landscape 273 I

A MATTER OF PRACTICE: The Media Explosion 275Key Media Players 276 I Key Media Concepts 277 I Media IndustryTrends 278 I

Print Media Characteristics 279

Newspaper Basics 279Newspaper Ad Sales 281 I Types of Newspaper Advertising 281 I NewspaperReadership Measurement 282 I Newspaper Industry Trends 283 I

Magazine Basics 283Types of Magazines 284 I Magazine Advertising 286 I Magazine ReadershipMeasurement 286 I Magazine Advertising Trends 287 I

Directory Advertising 287

Out-of-Home Advertising 288Outdoor Advertising 289 I

PRACTICAL TIPS: Outdoor: An Effective Brand Communication Medium 291On-Premise Signs 292 I Posters 292 I Transit Advertising 294 I

Packaging 294

14 CONTENTS

Using Print and Out-of-Home Advertising 295

IT'S A WRAP: iPod Dances to a Different Tune 296


Key Terms 297





Hands-On Case: Next Month's Magazine Issue: Credibility 299

9. BROADCAST MEDIA 300IT'S A WINNER: Road Warriors Get Smart at Holiday Inn Express 300

Broadcast Media 302

Radio 303The Structure of the Radio Industry 303 I The Radio Audience 305 I RadioAdvertising 306 I

Television 309Structure of the Television Industry 309 I Programming and DistributionOptions 312 I The Television Audience 314 I

A MATTER OF PRINCIPLE: Trashy Shows Trash Advertisers' Brands 315Television Advertising 316 I

THE INSIDE STORY Selling a Political Party with Humor 320Changes and Trends in Broadcast Television 322 I

Other Broadcast Forms 322Film and Video 322 I

A MATTER OF PRACTICE: The Social Harm of Public Service Advertising 324Product Placement 324 I

Using Broadcast Advertising Effectively 325

PRACTICAL TIPS: Broadcast Media Advantages and Limitations 325

IT'S A WRAP: Holiday Inn Express Stays Smart 326


Key Terms 327





Hands-On Case: Get Sirius with Howard Stern 329

10. INTERNET AND NONTRADITIONAL MEDIA 330IT'S A WINNER: eBay® Revolutionizes the Marketplace 330

Interactive Media: Web 2.0 And You 332Internet Basics 333 I Internet Tools and Formats 333 I The InternetAudience 335 I

The Web as an Advertising Medium 335Internet Advertising Formats 336 I E-Mail Advertising 338 I InternetAdvertising Functions 340 I

A MATTER OF PRACTICE: Ads in Your Face on MySpace 343New Internet Practices 343 I

CONTENTS 15

PRACTICAL TIPS: Using URLs in Advertising—It Makes a Difference • 344Issues in Internet Advertising 346 I Changes and Trends in InternetAdvertising 347 I Advantages and Disadvantages of InternetAdvertising 347 I

Nontraditional Media 348Guerilla Marketing 348 I Advertainment 348 I Video Games 349 I

THE INSIDE STORY: Nontraditional Media Overview 350Wi-Fi Communication and Mobile Marketing 351 I

A MATTER OF PRINCIPLE: When Is Too Many Too Much? 353

Nonelectronic New Media 353 I

IT'S A WRAP: eBay Evolves 354


Key Terms 355


Discussion Questions , 355



Hands-On Case: Second Life Provides Out-of-This-World Opportunities 357

11. MEDIA PLANNING AND BUYING 358IT'S A WINNER: Game On! Audi's Plan Reaches an Elusive Audience 358

The Media Planning Side of Advertising 360Key Players 361 I Media Research: Information Sources 361 I The MediaPlan 364 I

Key Media Planning Decisions 364Target Audience and Media Use 364 I

THE INSIDE STORY: A Week in the Life of a Media Planner 366The Aperture Concept 366 I Measured Media Objectives 366 I Media MixSelection 369 I

A MATTER OF PRINCIPLE: Integrating Advertising and PR Media Planning 370

PRACTICAL TIPS: When to Use Various Media 371

Media Strategy Tools and Techniques 374Delivering on the Objectives 374 I Delivering on the TargetingStrategy 375 I Delivering on the Media Mix Strategy 376 I SchedulingStrategies 377 I Cost Efficiency: CPMs and CPPs 378 I The MediaBudget 379 I IMC Media and Contact Point Planning 380 I Global MediaStrategies 380 I

A Sample Media Plan 380

A MATTER OF PRACTICE: Dentsu's ContactPoint Management Approach ' 381

Media Buying 385Media Buying Complexities 385 I Multichannel Buying (andSelling) 387 I Global Media Buying 388 I

Media Planning Trends 388Unbundling Media Buying and Planning 388 I Online MediaBuying 389 I New Forms of Media Research 389 I

IT'S A WRAP: Audi's Online Road to Success 390


Key Terms 391


16 CONTENTS

Discussion Questions 391Take-Home Team Projects 392Yahoo! Hands-On Case 392Hands-On Case: P&G Puts the Medium before the Message 393

PART 4 PRINCIPLES: CREATIVITY ANDBREAKTHROUGH ADVERTISING

12. THE CREATIVE SIDE AND MESSAGE STRATEGY 396IT'S A WINNER: A Whole Different Animal 396

The Two Sides Of Advertising 398The Art and Science of Advertising 398 I The Role of Creativity inAdvertising 400 I

PRACTICAL TIPS: Ten Creative Tips 401

Message Planning 402The Creative Brief 403 I

A MATTER OF PRINCIPLE: Do Briefs Change with the Times—andwith the Agency? 404Message Objectives 404 I Targeting 405 I Branding 405 I

Message Strategies 408Creative Strategy Approaches 408 I Strategic Formats and Formulas 410 IMatching Messages to Objectives 413 I

Creative Concepts 416Advertising Big Ideas 417 I The ROI of Creativity 417 I The CreativeLeap 418 I Dialing Up Your Creativity 419 I

THE INSIDE STORY: Where Do Ideas Come From? Film Murderer InspiresAd Maker! 420The Creative Process: How to Get an Idea 421 I

PRACTICAL TIPS: Exercise Your Creative Muscles 422Brainstorming 422 I How to Create Original Ideas 422 I Little Guys andBig Ideas 423 I

Managing Creative Strategy 424Extension: An Idea with Legs 424 I Adaptation: Taking an Idea Global 424 I

A MATTER OF PRACTICE: A Campaign with Legs (and Flippers) 425Evaluation: The Go/No-Go Decision 426 I Copy Testing 426 I

IT'S A WRAP: Fans Rule. Frontier Wins. 426

Key Points Summary ' 427Key Terms 427Review Questions 428Discussion Questions 428Take-Home Team Projects 429Yahoo! Hands-On Case 429Hands-On Case: Ask McCann-Erickson about Priceless Creative 430

13. COPYWRITING 432IT'S A WINNER: Milking Success 432

Copywriting: The Language Of Advertising 435The Copywriter 435 I Advertising Writing Style 436 I

CONTENTS 17

PRACTICAL TIPS: So You Think You Want to Create a Funny Ad? 437

Copywriting For Print 438How to Write Headlines 438 I How to Write Other Display Copy 441 IHow to Write Body Copy 443 I

A MATTER OF PRINCIPLE: The Principle of Truth 444Print Media Requirements 444 I

How to Write Radio Copy 446Tools of Radio Copywriting 447 I The Practice of Radio Copywriting 448 IPlanning the Radio Commercial: Scripts 448 I

How To Write Television Copy 449Tools of Television Copywriting 450 I

THE INSIDE STORY: The Florida Film Festival: It's a Trip 451Planning the TV Commercial 452 I

THE INSIDE STORY: The Thinking behind the Doritos "Checkout Girl" 453

Writing for the Web 454Banners 455 I Web Ads 455 I Other Web Formats 456 I

Copywriting In A Global Environment 456

A MATTER OF PRACTICE: The Ocean Speaks 457

IT'S A WRAP: Got Milk? Got Awards? 458


Key Terms 459





Hands-On Case: Verizon Realizes Opportunity 461

14. DESIGN AND PRODUCTION 462IT'S A WINNER: Curiously Strong Advertising 462

Visual Communication 465Visual Impact 465 I Visual Storytelling 466 I

A MATTER OF PRACTICE: If Sex Can't Get Attention, What Can?or Advertising Gets Religion 467Brand Image 467 I

Art Direction 468The Designer's Toolkit 469 I Design Principles 471 I Print Layout 473 I

A MATTER OF PRACTICE: Kitty Slickers and Cat Herders 476

Print Production 477Print Media Requirements 477 I Print Art Reproduction 478 I Binding andFinishing 479 I

Broadcast Production 480Filming and Editing 481 I Producing TV Commercials 483 I

THE INSIDE STORY: Metro Recycling in Stop-Motion Animation 484The TV Production Process 485 I

A MATTER OF PRINCIPLE: Honda "Cog" Gets It Right,But Not the First Time 486Effective Web Design 487 I Action and Interaction 488 I

A MATTER OF PRACTICE: Searching for an Ideal Streaming Technology 489

IT'S A WRAP: Altoids Makes a Mint 490

18 CONTENTS

Key Points Summary 490Key Terms 491Review Questions 491Discussion Questions 491Take-Home Team Projects 492Yahoo! Hands-On Case 492Hands-On Case: The High-Def Future of Advertising 493

PART 5 PRINCIPLES: HOW TO WIN THE BATTLEOF THE BUZZ

15. DIRECT-RESPONSE MARKETING 496PRACTICAL TIPS: The Gecko Goes Direct 496

The Practice of Direct Marketing 499Advantages and Disadvantages of Direct Marketing 500 I Direct Marketingand Direct-Response Advertising 500 I The Direct-Marketing Process 501 I

Databases: The Foundation of DM . 504A Circular Process 505 I Lists 506 I Data-Driven Communication 507 ICustomer Relationship Management (CRM) 509 I

The Key Players 509

The Tools Of Direct Marketing 511Direct Mail 5111

THE INSIDE STORY: Thinking Outside the Mailbox 513Catalogs 514 I Telemarketing 515 I Direct-Response Advertising 517 IThe Internet and Direct Response 518 I

THE INSIDE STORY: Selling the Colorado Pass Club 520

Integrated Direct Marketing 520Linking the Channels 521 I

Global Considerations in Direct Marketing 522

IT'S A WRAP: The Gecko Drives Customer Response 523

Key Points Summary 523Key Terms 523Review Questions 524Discussion Questions 524Take-Home Team Projects 524Yahoo! Hands-On Case 524Hands-On Case: Telemarketers Respond to the NationalDo-Not-Call Registry 525

16. SALES PROMOTION, EVENTS, AND SPONSORSHIPS 526IT'S A WINNER: Frontier Campaigns for Favorite Animal Votes and Web Hits 526

The Practice of Sales Promotion 528Changes in the Promotion Industry 529 I Reasons for the Growth of SalesPromotion 529 I Categories of Sales Promotion I 530

Consumer Promotions 530Types of Consumer Promotions 530 I How to Use ConsumerPromotions 532 I

CONTENTS 19

Trade Promotions 534Types of Trade Promotion 534 I How to Use Trade Promotion 535 I

Crossover Promotions 537Sponsorships and Event Marketing 537 I

A MATTER OF PRACTICE: Advertising through Sports 538

A MATTER OF PRINCIPLE: The Ad Bowl MVP—The Product 540Interactive and Internet Promotions 540 I Loyalty Programs 542 IPartnership Programs 542 I

Promotion Strategy 543Promotion Objectives 543 I The Issue of Brand Building 543 I Promotion

• Integration 544 I Promotion Effectiveness 545 I

IT'S A WRAP: Consumers Vote Frontier the Winner 546

Key Points Summary 546Key Terms 547Review Questions 547Discussion Questions 547Take-Home Team Projects 548Yahoo! Hands-On Case 548Hands-On Case: Upromise Uses Values Marketing to Pay for College 549

17. PUBLIC RELATIONS 550IT'S A WINNER: GE Goes Green with Ecomagination 550

The Practice of Public Relations 552Public Opinion 553 I Reputation: Goodwill, Trust, andIntegrity 553 I Comparing Public Relations and Advertising 554 ITypes of Public Relations Programs 555 I

THE INSIDE STORY: A Career in Business Theater 557

A MATTER OF PRINCIPLE: Should Advertising Play a Role in the Waron Terror? 559

Public Relations Planning 559Research and SWOT Analysis 560 I Targeting 560 I Objectives andStrategies 561 I The Big Idea 561 I PR's Role in IMC 562 I

Public Relations Tools 563Advertising 563 I Publicity 566 I

PRACTICAL TIPS: How to Write E-Mail Pitch Letters 568Publications 568 I

A MATTER OF PRACTICE: The World's Greatest Public Relations Person 569DVDs, CDs, Podcasts, Books, and Online Video 570 I Speakers andPhotos 570 I Displays and Exhibits 570 I Special Events andTours 570 I Online Communication 571 I

Effectiveness and PR Excellence 573

IT'S A WRAP: GE's Green Efforts Mean Good Business 574


Key Terms 575





Hands-On Case: JetBlue's Blues 577

20 CONTENTS

18. SPECIAL ADVERTISING CAMPAIGNS 578IT'S A WINNER: Think Snow; Think CR-V 578

IMC and Total Communication 581Driving Consistency through All Messages 581 I Organizing for IMC 581 IPlanning an IMC Campaign 582 I

Retail Marketing and Advertising 583Retail Advertising Planning 583 I

THE INSIDE STORY: Leadership Skills Are Critical 584Creating the Retail Ad 585 I The Media of Retail Advertising 587 I

Business-to-Business Advertising 587B2B Buying Behavior 587 I Types of B2B Advertising 588 I Creating B2BAdvertising 589 I B2B Advertising Media 590 I

Nonprofit or Social Marketing 590A MATTER OF PRACTICE: Rebranding a City 591Fund-Raising 592 I Social Marketing and Public CommunicationCampaigns 592 I Cause and Mission Marketing 592 IA MATTER OF PRINCIPLE: It's Your Choice 593

International Advertising and Marketing Communication 594Stages of Marketing Development 594 I The Global versus LocalDebate 594 I

PRACTICAL TIPS: How Advertising Works Cross-Culturally 595Planning Global Strategies 598 I The IMC Factor in Global CampaignPlanning 600 I Putting It All Together 600 I

THE INSIDE STORY: Chasing the Same Dream 601IT'S A WRAP: Driving Up Honda's Market Share 602


Key Terms 603




Yahoo! Hands-On Case - 604

Hands-On Case: CareerBuilder.com Means (Monkey) Business 605

19. EVALUATION OF EFFECTIVENESS 606IT'S A WINNER: Outstanding in the Field 606

Impact: Does It Work? 608Evaluating Effectiveness 609 I Types and Stages of Evaluation 609 I

THE INSIDE STORY: What Is Great Advertising?' 610Facets: Measuring Responses 611 I

Message Evaluation 611Copy-Testing Services 611 I Message Development Research 613 I

A MATTER OF PRACTICE: Finding Moments of Truth 614During Execution: Concurrent Testing 615 I Posttesting: After ExecutionResearch 617 I

Media Evaluation 619Evaluating Audience Exposure 619 I Advertising ROI and MediaEfficiency 620 I

CONTENTS 21

Evaluating Marketing Communication Campaigns 621Marcom Tools 622 I Special Advertising Situations 625 I CampaignEvaluation 626 I Connecting the Dots 626 I

IT'S A WRAP: New Holland's Brave New Tractors Conquer the Market 628

Key Points Summary 629Key Terms 629Review Questions 629Discussion Questions 630Take-Home Team Projects 630Yahoo! Hands-On Case 630Hands-On Case: Lovin' It at McDonald's Again 631

Appendix 633

Glossary 639

Credits 657

Notes 661

Index 671

principles - gbv · the power of brand communication 168 interaction and impact 168 i strong and...

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