. O . 6 ChapterQ 6 9 C' 0 FileI[Users/parsung1994/DownIoads/Advertising%20Textbook%20Reading.pdf Chapter 9 Chapter Objectives The student will: ' Describe the different types of advertising. ' Explain various advertising techniques, ' Discuss the pros and cons of direCt-to- consumer prescription drug advertising Describe the regulation of directto- consumer drug advertisements. Explain how marketers target specic groups of people. List ways that parents can protect children from inappropriate advertising. Dene and explain "unmeasured media." Explain the problems associated with infomercials. Describe ways to reduce the chances of being cheated when purchasing on the Internet. Advertising has inltrated virtually all aspects Of our liveshome, recreation, entertainment, work, School, travel. It is difficult to think of a location or situation that is nor laden with adver- 'iSlng. Flat-panel screens with videos plugging everY'hing from abdominals machines to zuc- Cl'lni greet you at the grocery store, coffee shop, bank, and gas pump. Pop'up ads pesrer us on (hf IWerner. Ads even appear in restrooms, mounted on hnnd dryers and placed above urinals. Cinemas \"HY advertisements before the movie. Televnsmn programming time seems to continually shrink as ads take more and more. It seems as if some of the cable news channels are only a series of com- mercials interrupted by occasional bits of news, Arenas, theaters, university buildings, parks, and museums sell naming rights to corporations so that the companies' names and logos dominate the facades of public buildings. The Russian space agency launched a rocket that carried a 30foot- long Pizza Hut logo. The photos demonstrate the extremes to which advertisers will go to market their producrs. Advertising has multiple objectives. One of the primary objectives is to create a need or the perception of need. As an example, humans need There seems to be no limit to (he Creativity ofndver- risers. 183 1 Chrome File Edit View History Bookmarks People Tab Window Help 8 64% :38 Tue 1:50 PM Q ... Chapter 9 X + + @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update CHAPTER 9: ADVERTISING reminds us that in a world of bosses and family esponsibilities, this restaurant is one place where the consumer calls the shots. Do burger stores cause discontent or do they exploit it? Maybe it's both. Some ads have the objective of increasing consumer awareness, such as those that tell us specific information about a truck. Regardless of the objectives of any single advertisement, the ultimate goal is to sell a product or service. Consumers of health-related products or services should keep this in mind. While expensive and massive, relatively few people can actually see this advertisement. Types of Advertising to eat, but we do not need processed meats, sug- There are several ways to classify advertisements ary cereals, sodas, or fast food. Advertising has and many different forms of advertising. Most fall influenced people to believe that they need these within three groups: informative, misleading or items; many of us would be unhappy without deceptive, and puffery. Some ads are hybrids of them. Another objective of advertising is to cre- these. ate or reinforce discontent. There is no inherent Informative advertising provides the poten- need to cover up the natural smells of the body tial buyer with useful information about the with artificial fragrances, but the unpleasantness product. For example, advertisements for auto- we feel with body odor is reinforced by adver- mobiles may state technical information about tising for deodorants. Advertising slogans and the specifications of the vehicle, and ads for images are effective symbols. The Mcdonald's prescription drugs may state the purpose of use slogan "You deserve a break today" is linked in and side effects. Classified ads in newspapers and the minds of consumers with the Golden Arches magazines are among the purest of informative as an idyllic place that is a far cry from the hec- advertisements. tic life that people are forced to endure. Burger Misleading or deceptive advertising inten- King's longtime slogan "Have it your way" tionally deceives or confuses consumers. Examples include: . The makers of a therapeutic device claim- ing effects for which there is no docu- mented evidence AIL POUCH . Claims that studies show the superiority of a product when no such studies exist or BUT HONEY TO THE BEST CHEW MAIL POUCH TOBACO those that do exist are flawed or biased Others use testimonials, anecdotes from users or people who are paid to say they are users. These statements are frequently deceptive. It is best to place value in a testimonial or endorsement only Advertising on the sides and roofs of barns, especially if the endorser is truly an expert in an area in advertising for tobacco products, was common during which he or she is speaking. It is often difficult to OneNote the twentieth century. This example, photographed in determine the actual qualifications of an "expert" Pennsylvania in 2009, is a rare example of contempo- rary use of barns for this purpose. since anyone can put on a lab coat or pretend to be a doctor in an advertisement. 30,492 NOV 10 W P XChrome File Edit View History Bookmarks People Tab Window Help X 64% 8 Tue 1:50 PM Q ... Chapter 9 X + + C @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update Chapter 9 3 / 9 of state laws, include "palming off," misrepresenta- cannot be obtained. tion, product disparagement, and bait-and-switch Puffery creates hype and draws attention to the advertising. "Palming off" occurs when an adver- product. Often, puffery is seen as a defense against tiser creates the impression that its products or claims of misleading or deceptive advertising. The services are those that are furnished by a competitor. Federal Trade Commission has defined puffery as For example, a manufacturer may market a sun- claims that (1) reasonable people do not believe screen product with a similar name and packaging to be true product qualities and (2) are incapable to another that actually provides superior protecof being proved either true or false (University of tion. Misrepresentation occurs when an advertiser Texas, 2000). makes false or misleading claims about its products Examples of puffery abound. Here are a few or services. For example, Listerine was once adver- examples: tised as being effective at preventing colds; the . A restaurant that advertises that its food Federal Trade Commission ruled that it is not. Use has the finest taste in town of flawed and insignificant research is a form of mis- . The Energizer Bunny that keeps going and representation. Under the Lanham Act of 1946, this going and going . . . means "representations found to be unsupported . A tampon that purports to produce the by accepted authority or research or which are contradicted by prevailing authority or research." freshest feeling ever . Tony the Tiger describing Kellogg's Frosted An example is claims made by Ralston Purina Flakes by saying, "They're GREAT!" about its pet food products that were based on "Advil just works better" statistically insignificant test results. The company "The antidote for civilization" (ClubMed) was forced to issue a corrective release. Product . "Bayer works wonders' disparagement occurs when an advertiser inten- The line between puffery and misleading ads tionally makes false or misleading negative remarks is not always clear. As Hoffman (2004) wrote in about a competitor's goods or services, causing the summarizing several court decisions on puffery, competitor to lose sales. An example would be an "The line between statements of fact which, if organic food producer stating in advertisements false or misleading can be actionable, and mere that its competitors sell food that is dangerous, puffery is vague and uncertain and have [sic] to be unless the organic food producer could provide evi- determined on a case by case basis." dence of the claim. Bait-and-switch occurs when the goods or services are advertised at a low price- the bait. When the customer tries to purchase the Advertising Techniques product, he or she is told it either is sold out or is an inferior product. The salesperson then tries to and Tricks convince the customer to purchase a more expen- Advertisers and marketers have an impressive sive substitute-the switch. We see this in sales of arsenal of techniques at their disposal. Frequently, goods such as computers or appliances, when the they combine techniques and use them in infor- advertised product is suddenly not available. mative ads, puffery, or even misleading ads. Puffery uses exaggeration, hyperbole, or imag- ery to market products. It seldom provides useful Word-of-Mouth Marketing information unless combined with informative Word-of-Mouth Marketing can take any form of techniques. Terms like "the best" or "the greatest" peer-to-peer communication, such as a chat with a + are frequently used. Idyllic scenes and inflated relative, Web log (blog), a social networking Web depictions of sexual attractiveness, vitality, site, or the comments of a stranger on a bus. OneNote 30,492 NOV 10 W P O XChrome File Edit View History Bookmarks People Tab Window Help 8 64% 8 Tue 1:51 PM Q ... Chapter 9 X + + @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update 186 CHAPTER 9: ADVERTISING Blogs are easy targets for word-of-mouth mar- In order to be legal, endorsements must reflect keting. Users frequently comment on products the honest opinions, findings, beliefs, or experi- they have used. It is easy for marketing companies ence of the endorser. They must not contain any to flood blogs with positive statements about representations that would be deceptive. If the their products. It is equally simple to produce advertisement represents that the endorser uses negative statements about competitors' products. or used the endorsed product, the endorser must A marketing campaign for a Sony Ericsson have been a bona fide user of it at the time of mobile digital camera and mobile phone drew the endorsement. Enforcement of this provision attention and complaints. The "Fake Tourist" is inconsistent at best and, in truth, testimonials initiative involved placing 60 actors posing as are largely self-regulated. The Consumers Union tourists at attractions in New York and Seattle (ConsumerReports.org, 2006) declared, "Most to demonstrate the camera phone. The actors broadcasters, publishers, and Internet service pro- asked passersby to take their photo, which dem- viders don't make sure those 'real' people exist onstrated the camera phone's capabilities. In or verify their claims. (The big three networks another example, Tremor, a marketing division clear ads before they run, but local ads are often of Procter & Gamble, assembled a volunteer force of 250,000 teenagers to promote the company's unchecked.)" products to friends and relatives. The Federal There is a loophole in the use of testimonials Trade Commission issued a staff opinion noting Advertisers can put atypical uses in the ad if it that such marketing could be deceptive if con- "clearly and conspicuously" discloses that their sumers were more likely to trust the product's situation is unusual. Advertisers frequently use endorser "based on their assumed independence the disclaimer "Results vary" or "Results may not from the marketer" (Shin, 2006). be typical," often in small print or in a rapidly Although word-of-mouth marketing can be delivered verbal disclaimer. misused, people will always communicate with one Testimonials may come from athletes, movie another. The consumer should be alert to informa- stars, physicians, or everyday users of the product. tion that can be useful, such as a friend's experi- Some more absurd endorsements can be seen in ence at a restaurant, the taste of pizza sauce, or the old magazine advertisements for cigarettes in length of time spent in a physician's waiting room. which a brand is endorsed by physicians for their health benefits compared with other brands. Testimonials and Endorsements Marketers are using celebrities in more stealthy forms of endorsements. As consumers become Testimonials and endorsements are favorites of more cynical, the trend is to brand celebrities advertisers. They are depicted as representing the with merchandise by having them wear products opinions of experts, including individuals and in public appearances or during interviews. There organizations, or users of the products. is nothing to indicate to the audience that the The Federal Trade Commission treats endorse- celebrities are paid spokespeople. ments and testimonials identically. Endorsement Athletes are often virtual billboards. For exam- means: "Any advertising message (including ver- ple, NASCAR drivers and their cars are covered bal statements, demonstrations, or depictions of with ads. Professional tennis players wear patches the name, signature, likeness or other identifying bearing the name and logo of a product. Tiger personal characteristics of an individual or the Woods has worn a cap with a Nike swoosh. The name or seal of an organization) which message Penn State University football jerseys also display consumers are likely to believe reflects the opin- the swoosh. These are a form of endorsement of the ions, beliefs, findings, or experience of a party products by linking them directly with the wearer. other than the sponsoring advertiser" (15 U.S.C. The consumer should be skeptical about $5, 45 FR 3872, January 18, 1980). endorsements. We should ask why an athlete, for 30,492 NOV 10 W P O XChrome File Edit View History Bookmarks People Tab Window Help 8 64% 8 Tue 1:51 PM Q ... Chapter 9 X + + @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update 186 CHAPTER 9: ADVERTISING Blogs are easy targets for word-of-mouth mar- In order to be legal, endorsements must reflect keting. Users frequently comment on products the honest opinions, findings, beliefs, or experi- they have used. It is easy for marketing companies ence of the endorser. They must not contain any to flood blogs with positive statements about representations that would be deceptive. If the their products. It is equally simple to produce advertisement represents that the endorser uses negative statements about competitors' products. or used the endorsed product, the endorser must A marketing campaign for a Sony Ericsson have been a bona fide user of it at the time of mobile digital camera and mobile phone drew the endorsement. Enforcement of this provision attention and complaints. The "Fake Tourist" is inconsistent at best and, in truth, testimonials initiative involved placing 60 actors posing as are largely self-regulated. The Consumers Union tourists at attractions in New York and Seattle (ConsumerReports.org, 2006) declared, "Most to demonstrate the camera phone. The actors broadcasters, publishers, and Internet service pro- asked passersby to take their photo, which dem- viders don't make sure those 'real' people exist onstrated the camera phone's capabilities. In or verify their claims. (The big three networks another example, Tremor, a marketing division clear ads before they run, but local ads are often of Procter & Gamble, assembled a volunteer force of 250,000 teenagers to promote the company's unchecked.)" products to friends and relatives. The Federal There is a loophole in the use of testimonials Trade Commission issued a staff opinion noting Advertisers can put atypical uses in the ad if it that such marketing could be deceptive if con- "clearly and conspicuously" discloses that their sumers were more likely to trust the product's situation is unusual. Advertisers frequently use endorser "based on their assumed independence the disclaimer "Results vary" or "Results may not from the marketer" (Shin, 2006). be typical," often in small print or in a rapidly Although word-of-mouth marketing can be delivered verbal disclaimer. misused, people will always communicate with one Testimonials may come from athletes, movie another. The consumer should be alert to informa- stars, physicians, or everyday users of the product. tion that can be useful, such as a friend's experi- Some more absurd endorsements can be seen in ence at a restaurant, the taste of pizza sauce, or the old magazine advertisements for cigarettes in length of time spent in a physician's waiting room. which a brand is endorsed by physicians for their health benefits compared with other brands. Testimonials and Endorsements Marketers are using celebrities in more stealthy forms of endorsements. As consumers become Testimonials and endorsements are favorites of more cynical, the trend is to brand celebrities advertisers. They are depicted as representing the with merchandise by having them wear products opinions of experts, including individuals and in public appearances or during interviews. There organizations, or users of the products. is nothing to indicate to the audience that the The Federal Trade Commission treats endorse- celebrities are paid spokespeople. ments and testimonials identically. Endorsement Athletes are often virtual billboards. For exam- means: "Any advertising message (including ver- ple, NASCAR drivers and their cars are covered bal statements, demonstrations, or depictions of with ads. Professional tennis players wear patches the name, signature, likeness or other identifying bearing the name and logo of a product. Tiger personal characteristics of an individual or the Woods has worn a cap with a Nike swoosh. The name or seal of an organization) which message Penn State University football jerseys also display consumers are likely to believe reflects the opin- the swoosh. These are a form of endorsement of the ions, beliefs, findings, or experience of a party products by linking them directly with the wearer. other than the sponsoring advertiser" (15 U.S.C. The consumer should be skeptical about $5, 45 FR 3872, January 18, 1980). endorsements. We should ask why an athlete, for 30,492 NOV 10 W P O XChrome File Edit View History Bookmarks People Tab Window Help X 63% 8: Tue 1:51 PM Q ... Chapter 9 X + + C @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update Chapter 9 5 / 9 than anyone else. We should also understand that even if the testimonial comes from a user of the product, the endorsement of that person does not guarantee that the experience is typical. Many advertisements carry disclaimers that state that "My cigarette is the MILD cigarette... the experience of the endorser may not be typi- that's why Chesterfield cal. Claims concerning the efficacy of any drug or is my favorite device as defined in the Federal Trade Commission ICould Reagan Act "shall not be made in lay endorsements unless THE VOICE OF THE TURTLE- (1) the advertiser has adequate scientific sub- stantiation for such claims and (2) the claims are not inconsistent to the drug or device that is the subject of the claim" (15 U.S.C. 55, 45 FR 3872, It takes ABC esterfield January 18, 1980). TO SATISFY ME! GARETTES Testimonials are inherently selective. Few of us Rature Star Ronald Reagan would be anxious to tell about a health product that did not work, especially after spending large sums When you change to conendless NOTICE IS THEIR MILDNESS for it. However, people are often very interested fats browere of their fight Combination in sharing even the smallest improvement, often ALALWAYS MILDER attributing it to a pill, lotion, or other treatment. C COOLER SMOKING Weasel Words Weasel words create the illusion of a promise ALWAYS BUY CHESTERFIELD but permit the advertiser to "weasel out" of the They Satufy deal (Barrett, London, Baratz, & Kroger, 2007). Famous actors have, for years, been used to market Here are a few examples with replies from a cigarettes. Here, an actor who was a future president healthy skeptic: acted as a shill for a tobacco company. . Lose up to 30 pounds in a month. (Wouldn't a loss of zero pounds be in this . Four of every five doctors agree that the range?) Product is part of a healthy breakfast. product is effective. (Were only five (Which part? Would the breakfast be just doctors interviewed? How was the sample as healthy without the product? Would selected? Were the doctors compensated another product make the meal healthier? for their opinions? Do they own stock in Pain reliever helps to end headaches. (How the company?) much help is it? What other factors are in Weasel words heighten the expectations of the play?) potential user without actually promising any- . Body wash is new and improved. (Was it so thing. They can be used to draw attention away bad before? Improved in which qualities? If from adverse evidence. it is "improved," how can it also be "new"?) . Product is clinically tested to be more Attention Grabbers + effective. (What were the results of the tests? Does the product work as claimed? On the other end of the spectrum are attention Tested maybe, but did the product pass or grabbers, words and phrases that offer power to fail the test? More effective than what?) the advertisement. Examples of common atten- tion grabbers are: OneNote 30,492 NOV 10 W P XChrome File Edit View History Bookmarks People Tab Window Help X 63% 88 Tue 1:52 PM Q ... Chapter 9 X 4 Activity #7 (Evaluating Advertis X + + @ File /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update CHAPTER 9: ADVERTISING "All natural" away from teeth. Pastoral settings often are used "Amazing breakthrough" to present a safe, clean image of a product. The "Hospital tested" Marlboro Man sitting atop his horse surveying "Money-back guarantee" the open range provided the image of the inde- Attention grabbers may appeal to a variety of pendent "I'm my own man" cowboy. These visual senses. Pictures or video of attractive people or images are very effective. scenes or of people performing unusual or impos sible feats can be attention grabbers. A catchy tune Statistics or just loud music can serve to grab our notice. Restaurants sometimes fry onions, allowing the Statistics are commonly used in advertisements aroma to waft out of vents, to attract customers. with no context. They often are accompanied by graphs or other images. Sometimes they are Appeal to Basic Human reinforced with puffery. It is virtually impossible to present a valid argument using data in a short Weaknesses and Fears 30-second advertisement. In fact, it is very dif- Many advertisements appeal to human weak- ficult to do so in a full-length infomercial. This is nesses, fears, and frailties. Advertisements exploit the reason that statistics are used only briefly and individuals' fears of social or sexual inadequacy. almost never with any unbiased interpretation. A wide range of products, including deodorants, Graphs are easily formatted to present impres- baldness "cures," alcoholic beverages, mouth- sions that are inaccurate. wash, impotency cures, breast enlargers, and Marketers never use data that are neutral penis stretchers (or "natural male enhancers," as or unfavorable to their product. They also sel- one commercial described its product), attempt dom make their data or the study from which to convince us that our social and sex lives will they came available for consumer inspection. improve dramatically if we just buy the product. Consumers should never confuse association with If your life is drab or you are afraid of loneliness, causation. Just because two things are linked by there are products and services that will purport- some vague statistical reference does not mean edly change your future. that one caused the other. Fear can be a strong motivator to purchase. Exploitation of fear is a common advertising tool. Comedy Fear of aging is often exploited by marketers. Comedy or humor is an old methodology in adver- Following the terrorist attacks of 2001 and sub- tising. It makes the ad memorable. The antics and sequent periods of heightened threats, marketers accent of the Geico gecko keep us chuckling as the seized on our fears to sell us anything from duct tape to weaponry. Visual Imagery Visual imagery is a time-tested method of pro- Be a staff moting products. It is often accompanied by puff- ery. The marketer is at an advantage if an image favorable to the product can be placed in the mind of the consumer. Visual imagery can be enhanced OneNote Advertising Textb....pdf Show All X 30,492 NOV 10 W PChrome File Edit View History Bookmarks People Tab Window Help X 63% 28 Tue 1:52 PM Q ... Chapter 9 X 4 Activity #7 (Evaluating Advertis X + + @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update little green character sells insurance. Clips of inane behavior glue us to the television between scenes of real programming. Many people find advertis- ing less obtrusive if it contains a good laugh. Starting in 1925, motorists would eagerly await the next series of Burma-Shave signs con- taining a few words each and forming a rhyme delivering a chuckle and always ending with the name of the product displayed on the last sign. The Oscar Mayer Weinermobile always causes laughter as it motors down city streets. Billboards frequently attract our attention with color but hold it with humor. Is the consumer supposed to believe that this product Ads containing comedy are seldom informa- will help her look like the model in the ad? Or is the tive. They are a form of puffery. They would be male consumer to believe that this woman will be considered misleading only if the average person attracted to him if he drinks the right brand of vodka? would not get the joke and would take the ad message literally. Yet, they are effective at keep- ing a product in our consciousness. washes his car, sex sells and marketers know it. As the examples in these photo ads demonstrate, Sex women are more frequently sexualized in adver- tisements than men. Sex has become almost a universal market- ing tool. It is difficult to drive down a major Product Placement street or highway without seeing billboards of scantily clad people, always very attractive, and Product placement is an old technique, dat- sometimes not directly related to the product. ing to at least the 1950s. It is a rapidly grow- Television ads make use of sex in myriad ways. ing method of slipping products into films and Who can forget the Pepsi commercial of the television programs. In this practice, also known 1990s in which a newborn flirts with model as "embedding," advertising occurs when a prod- Cindy Crawford? Whether it be the women of uct or brand gains exposure in a film, television Victoria's Secret or the hunk being admired as he program, photo, video game, book, or even in an advertisement for another product. It is becoming more attractive to television advertisers in an era when DVR users frequently skip commercials. In some cases, the logo or name of a product is placed in the background of a scene. News anchors may display a beverage from a sponsoring company on their desks. Advertisements for a product, rather than the product itself, may appear in scenes; this is called advertisement placement. In the major- ity of placements, the product is clearly visible; at other times it is referenced verbally; and some- times it is only implied. It is not necessary for a specific brand to be displayed. Smoking on film can be enhanced Does this billboard suggest that using Calvin Klein by its association with desirable characters, per- products will lead to group sex? sonalities, or characteristics. Drinking the same Advertising Textb....pdf Show All X 30,492 NOV 10 W P XChrome File Edit View History Bookmarks People Tab Window Help X 63% 28 Tue 1:52 PM Q ... Chapter 9 X 4 Activity #7 (Evaluating Advertis X + + C @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update Chapter 9 8 / 9 beverage, say beer, as a movie hero can be an a coincidence that tobacco product placement attractive idea. continues to appear in movies that are attractive Overall, event marketing and paid product to young people. placement in various media accounted for about Product placement is apparently effective. In $3.61 billion in 2009, a reduction over the previous a longitudinal study of U.S. adolescents, Sargent year, mainly because of the effects of the economic et al. (2007) found that exposure to smoking in recession. Product placement is forecast to be the movies predicted risk of becoming an established most rapidly growing segment of paid advertising smoker, behavior that is linked with adult depen- through 2014 (PQ Media, 2010). dent smoking and its associated morbidity and Television has become a fertile ground for mortality. embedding products. When the ladies of Wisteria The Federal Communications Commission Lane walked down the runway in a charity fash- (FCC) has established rules that require one ion show on ABC's Desperate Housewives, they sponsorship announcement be made at the wore Halston gowns; their kitchens are furnished time of broadcast. Such disclosures are usually by Thermador and Bosch. The Seinfeld show tacked on to the end of a show so inconspicu- made reference to Snapple and Junior Mints. ously that viewers may rarely notice. The FCC General Motors donated the $55,000 Hummers is considering strengthening the notification driven by the characters in CBS's CSI: Miami. The agents in Fox's The X-Files always drove requirements. Fords. Holly and Tina of the WB program What The Scope of Advertising I Like About You competed to be the Herbal Essence girl, a plot point followed by a commer- America's marketers spent $143.3 billion in cial for the shampoo. NBC's The Office displays advertising in 2005 (TNS Media Intelligence, Staples products, and Hooters has been identified 2006). This included over $25 billion in local as the office caterer. newspapers, almost $22.5 billion in network Music videos are well designed for prod- television, over $21.6 billion in consumer maga- act placement. Lady Gaga's video for the song zines, and over $15.8 billion on cable television "Telephone" includes 10 product placements Internet display advertising increased by 13.3 and generated more than four million views in percent over the previous year to $8.3 billion. its first 24 hours. Her video for "Bad Romance," By 2009, according to Advertising Age, mea- which also includes several placements, had been sured marketing of the 100 leading national viewed over 230 million times as of June 2010 advertisers was $125.3 billion, a considerable (PQ Media, 2010). drop blamed largely on the recession. In 2009, The tobacco industry has been the undisputed about 19 percent of advertising each went to villainous master of this technique for decades. network television and magazines, followed by For example, Dovemead Limited received finan- newspaper at 16.5 percent and cable television cial incentives from the Philip Morris Company networks at 15.4 percent (Johnson, 2010). It is to place over 30 images of the Marlboro name inevitable that much of this advertising was for or package, sometimes with primary characters health products and services, those products that + using the product, in the 1979 movie Superman purport to be healthful, and others that affect II: The Movie (Spengler, 1979). American actor health. Sylvester Stallone received $500,000 for his use The food, beverage, and restaurant industries of Brown & Williamson Company cigarette spent $11.26 billion on advertising in 2004 products in several of his movies (Ripslinger, (Endicott, 2005). By 2011, the food and beverage 1983; Stallone, 1983). This practice has increased industry was forecast to spend over $1.1 billion since the 1998 Master Settlement Agreement on online advertising alone (eMarketer, 2010). Advertising Textb....pdf Show All X 30,492 NOV 10 W P XChrome File Edit View History Bookmarks People Tab Window Help X 63% 88 Tue 1:52 PM Q ... Chapter 9 X 4 Activity #7 (Evaluating Advertis X + + C @ File | /Users/parsung1994/Downloads/Advertising%20Textbook%20Reading.pdf P Update Chapter 9 9 / 9 Network, 2005). Advertising works. Pharmaceutical manufac Advertising of Prescription turers were the nation's most profitable industry from 1995 to 2002 and ranked second in 2006 Drugs with profits of 19.6 percent, compared with 6.3 percent for all Fortune 500 firms (Kaiser Family Advertisement of prescription drugs was once Foundation, 2007). targeted only to health care professionals. The FDA has regulated the advertising of Pharmaceutical salespeople would visit physi- prescription drugs since 1962, under the Federal cians' offices, make their pitch, and leave samples. Food, Drug, and Cosmetic Act and related regula- Medical journals carried many advertisements, tions. The regulations establish detailed require- but those journals were read mostly by health ments for ad content. The FDA's Division of Drug care providers. Conferences and conventions were Marketing, Advertising, and Communications home to booths occupied by pharmaceutical (DDMAC) oversees two types of promotion for representatives. Typical consumers or patients prescription drugs: promotional labeling and were usually left out of the marketing picture. advertising. Advertising includes commercial They were expected to get information about pre- messages broadcast on television or radio, com- scription drugs from their doctors. municated over the telephone, or printed in In 1983, all this changed. The U.S. Food and magazines and newspapers. Drug Administration, feeling that its regulations The FDA recognizes three types of DTC adver- provided sufficient safeguards to protect the pub- tisements. They are: lic, approved direct advertising of prescription . Product-claim ads, the most common medications to consumers. These ads are known type, that mention a drug's name and as direct-to-consumer (DTC) advertisements. At the condition it is intended to treat, and that point, the United States joined New Zealand describe the risks and benefits associated as the only industrialized countries to allow DTC with taking the drug ads for prescription drugs (Marketing Week, Reminder ads, often used as an alternative 2006). During the 1990s, print ads proliferated. to product-claim ads when manufacturers While DTC drug advertising formally started have decided not to present much infor- on television in 1996, it actually began in 1983 mation, that give only the name of the when Boots Pharmaceuticals, a British company, product, but not the conditions for which ran ads for its then prescription-only ibupro- fen product, Rufen. Advertisements increasingly mation it is used, its effectiveness, or safety infor- appeared in magazines, newspapers, and televi- . Help-seeking ads, also used to avoid pre- sion. By 2005, total spending on network and senting much information and often called cable television ads totaled $2.6 billion (Media disease-awareness ads, that mention only Week, 2006). the medical condition, such as high cho- Manufacturers of prescription drugs spent lesterol or diabetes, and then direct you to $11.4 billion on advertising in 2005, a decline ask your doctor about treatments + of 3.5 percent from 2004. However, the share Prescription drug ads considered product-claim directed toward consumers increased by 5 per- ads must contain information in a brief summary cent in 2005 to $4.2 billion (Kaiser Family relating to both risks and benefits. Recognizing Foundation, 2007) and to $4.8 billion in 2007. the time constraints of broadcast ads, FDA regula- Drug makers reduced their spending on DTC tions provide that a broadcast advertisement may OneNote Advertising Textb....pdf Show All X 30,492 NOV 10 W P O