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Advertising Conflicts.docx

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University of Texas at Austin
ADV 318J
Gary Wilcox

Advertising Conflicts "I hate advertising" •Criticism of advertising and PR: Sut Jhally • Destructive actions of capitalism • Advertising is main voice of capitalist threat • Advertising is major obstacle of survival of species • What is our society? There is no such thing as a society, just individuals and their families acting on their own. Which is how advertising speaks to us - individually, instead of bigger, social issues. Speaks to selfish, individual pleasures. • Does not tells story of the future: MAY talk about tomorrow but does not encourage us to look further. Only speaks in the "now." • Advertising is something you feel, not something that makes you think • Sexuality is predominate in advertising. • Also uses other emotions: nightmares (embarrassments) • People are not so much criticizing advertising and PR, but instead capitalism Decisions: •Advertisers control o Budget o creative decisions •Not advertiser's control o Environment o Economy o Society (Does advertising influence society or does society influence advertising) o Politics Advertiser Dilemmas •Economic Context o Historically: John Kenneth Galbraith said "advertising seduced societies into wasteful materialism and created monopolies" o TODAY: Adv stimulates the economy • by providing direct funding to media • advertising people and by creating demand for good • services and promotes competition • Lowers cost of providing info to consumers o Traditional Economic Theory: The "Rational" Consumer: • Motivated by rational self interest • Utility theory of consumer Behavior  Rationally acquire the greatest satisfaction (utility) and to avoid dissatisfaction (inutility) • Law of supply and demand  Purchase more when pricing goes lower, less when price goes up. • Hard to determine "rational" because of emotional/psychological motivation.  How rational is your decision to buy your favorite brand of toothpaste? o How Economists debate advertising today • Which products to buy- information • Adv is the most cost effective means of promotion • Lowers cost of production by increasing total demand for products/services • Price advertising: here's the brand available at this price. • Price of products  Toys: advertising reduced the price of toys for kids. - Steiner  Eyeglasses: Compared markets who did and didn’t have advertising. Price of glasses were lower for those with. -Benham  Prescription Drugs: Prices were lower with advertising - Cody  Beer: No difference in prices with or without advertising. - Wilcox. Why? Beer is cheaper than eyeglasses and prescription drugs. • Advertising increases sensitivity to price  Lowest priced items preferred  "Generic" • Don't inspire confidence. o Advertising and Economic Climates • Economic factors limit aggregate purchases • In a bad economy, ad budgets cut • Why?  Expense, not really an investment • Easier to cut advertising, rather than employees • Why cut the budget?  Sales will fall!  Maybe because: it increases advertising when competitors are cutting theirs to create*** o Advertising promotes competition and lowers the cost of providing information to consumers and distributing products. o Today **** (towards the end) • Social Context o Cultural relativism: each society should be judges by its own values o Questions lead us back to ethics • Should US advertise cigarettes in Africa and China? • Should US advertisers be held to American standards or host country? o Criticism of Advertising and PR (What is being criticized?) • Products advertised/promoted (coke, cigarettes) • Process of advertising/PR (mobile ads, annoying ads) • Content of advertising/PR (Shouldn't use sex!) o Seven sins of advertising: • Advertising is too intrusive  70% of consumers feel technology makes advertising too intrusive  Mobile phone ads  Internet ads  Ads before movies  Talks of things that shouldn't be discussed (laxatives)  BUT • It supports communication media that we enjoy (games online, annoying blimp) • Commercial TV not "free" • A music CD with the same advertising revenue as a newspaper would cost $2.oo and a movie only $.75 • Advertising invades privacy  40% of people felt privacy rights were being protected.  Junk Mail  Appears in places it shouldn't (restrooms) • Invents desire to buy in adults and children  Advertising makes products more important than family or religion  Can advertising invent "desire?" • NO. (Wilcox says) It may excite tho
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