2 Evolution of Advertising
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Transcript of 2 Evolution of Advertising
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SESSION 3
Evolution ofAdvertising
1
HOW ADVERTISING HAS EVOLVED!
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Advertising is...
2
... thousands of years old, yet ithas only come into its own in thelast 100years.
Whattriggered its development?
1) Growing population wanting more,
2) Evolving production technology.
Evidence:Ad-campaigns developedover the years.
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Advertising in pre-industrial
times
3
Demand increased slowly in the pre-industrial age. (18thcentury)
Merchants displayed store signage to
attract passers-by.
Two developments that that led toadvertising:
1) Invention of paperin China(Year1275) &
2) First printing press in Germany (Year1440).
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Advertising in pre-industrial
times
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1472: First advertisement in English:Handbills placed on church doors to
announce prayer book for sale.
200 years later - first newspaper adoffered reward for return of 12 stolen
horses.
End of 18thCentury: Print advertisingmore common - relied on puffery.
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Advertising in the Industrial
age
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Mid-1800s: World population 1.2billion.
Mass production/ consumptionin
evidenceAdvertising only support formass marketing.
Early 20th century (World War I):
Marketing: domain of wholesalers
Advertising: an information
vehicle.
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Advertising in the Industrial
age
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Consumer advertising in US viacatalogs of Mail-order companies:
Montgomery Ward, Sears Roebuck.
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Advertising in the Industrial
age
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Patentmedicines, soaps, tobaccoproducts, canned foods advertised.
Bulk-purchase of space for print
advertising: Contracts signed byagencies - precursors of modern-day
ad-agencies.
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Advertising in the Industrial
age
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First ad-agency N. W. Ayer & Sons in
Philadelphia establishedbyFrancis Ayer.
Role: Planning, creating, executing
campaigns, in exchange for Commission
from print media, or Fee from advertiser.
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What change did Industrial age
bring?
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Major growth in industry. Literacy rates up to 90% in US &
other developed countries.
Commodity markets saturated.
Mass marketing of FMCGs.
Advertising regarded as science:based on fixed operating principles.
Radioused for mass communication.
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What change did Industrial age
bring?
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Manufacturers focus moved fromproduction to sales.
Early brands: Wrigleys gum, Coca-
Cola, Jell-O, Kellogg's cornflakes, &Campbells soup.
Wheatiesfirst to call itself Breakfast
of Championseffort to create product
differentiation.
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Advertising in 1960s: Image
Era
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Emphasis shifted from productfeaturesto brand image & brand
personality.
Cadillacbecame symbol of luxury &Rolls-Royce symbol of aristocracy.
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1967 1969
Advertising in the Image
era
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http://www.flickr.com/photos/pinkponk/505514446/in/set-72157600267969060 -
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1970s: Competition rears its
head
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A new kind of advertising strategyevolves, based on what...
...Jack Trout & Al Ries introduced as
Positioning.
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1970s: Competition rears its
head
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Whydid Positioning become so
important?
Competition?
What was needed?
1. MORE effective means of product
differentiation &
2. MORE precise market
segmentation.
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1975 1983
Advertising in the creativeera:1970s & 1980s
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1980
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1980s: The best of times, the worst oftimes
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1980s: Energy shortagesswept theworld: Concept of De-marketing wasborn.
Advertising promoted lowerconsumption: Conserve energy!Avoidtoo many electrical appliances.
Social problems coming to the fore.
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D ti h i l t
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Dramatic change in late
1980s!
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Positive sentiment led large MNCs& Ad-agencies to go formegamergers.
European & Asian advertisingcaught up with US: Saatchi & Saatchiin UK, Dentsu in Japan.
rama c c ange n a e
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rama c c ange n a e1980s!
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TVbecame the hot medium: ad
agencies focused on growth,acquisition & superior creative
executions.
BUT, the euphoria was short lived:Countries going back into recession
(late-1980s/ early 1990s.)
f
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Economic factors impacting
Marketing
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1. Competition: lower trade barriers,growing international trade led to
global competition.
Book Marketing Warfare, by Al Ries
& Jack Trout caught attention: Focus
on four strategic positions -
Defensive, Offensive, Flanking,
Guerrilla.
E i f t i ti
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Economic factors impacting
Marketing
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2. Growing affluence &sophistication among the public:
Baby boomer generation, keen
on saving time & money, to spend onleisure activities.
Choosyabout products, services.
Impressed by social causes.
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Volkswagen getting Eco-friendly
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FORD says: Wasting energy is acrime
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Coming of the 1990s
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Worsened recession: clients
demanded accountabilityfrom ad-
agencies
Conventional advertising out of favor.
Newtechnology, re-inventionof
advertising agencies. Downside:job-
losses!
Print & TV networks down too.
Focus moved to building higher
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Into the 2000s
29
The Internet bubble burst.
9/11 hit US - advertising dipped in US
& overseas.
Rebound in 2003 - Internet reachednew highs again.
Ad ti i i th ti
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1990s 2009
Advertising in the creativeera:1990s & 2000s
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A i l f Th Gl b l I t ti
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Arrival of The Global Interactive
Age
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1. Changing rules of the game.2. Advertising takes hold in E. Europe.
3. New technologies start impacting
affecting advertising.
4. Shift from mass media to more
specialized, narrowcast media.5. Advertisers impacted by TiVo
software capable of skipping
commercials.
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Interactivity...
...The essence of advertisingin the 21stcentury.
We are living through the largest
expansion of expressive
capability in the history of the
human race.