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Launch! Advertising and Promotion in Real Time, 2009a

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KEY TAKEAWAY<br />

<strong>Advertis<strong>in</strong>g</strong> is a major <strong>in</strong>dustry. It contributes to the economy directly (via the jobs it creates to produce ad<br />

messages) but also <strong>in</strong>directly as it stimulates dem<strong>and</strong> <strong>and</strong> provides <strong>in</strong>formation about other products <strong>and</strong><br />

services.<br />

EXERCISES<br />

a. <strong>Advertis<strong>in</strong>g</strong> is “the glue that holds our culture together.” Evaluate this statement <strong>and</strong> decide whether<br />

you are <strong>in</strong> agreement with it or not. State <strong>and</strong> defend your position.<br />

b. Describe the economic rationale for creat<strong>in</strong>g, accept<strong>in</strong>g, <strong>and</strong> us<strong>in</strong>g advertis<strong>in</strong>g.<br />

c. List <strong>and</strong> describe the six <strong>in</strong>formation subjects relevant to consumers that advertis<strong>in</strong>g addresses.<br />

[1] Kenneth Arrow <strong>and</strong> George Stigler, paper for the <strong>Advertis<strong>in</strong>g</strong> Tax Coalition, quoted <strong>in</strong> House Subcommittee on<br />

Select Revenue Measures of the Committee on Ways <strong>and</strong> Means, Miscellaneous revenue issues: hear<strong>in</strong>gs before<br />

the Subcommittee on Select Revenue Measures of the Committee on Ways <strong>and</strong> Means, 103rd Cong., 1st sess.,<br />

1994,http://www.archive.org/stream/miscellaneousrev02unit/miscellaneous rev02unit_djvu.txt (accessed<br />

February 4, 2009).<br />

[2] Global Insight, “The Comprehensive Economic Impact of <strong>Advertis<strong>in</strong>g</strong> Expenditures <strong>in</strong> the United<br />

States,” http://www.naa.org/Resources/Articles/Public-Policy-The- Comprehensive-Economic-Impact-of-<br />

<strong>Advertis<strong>in</strong>g</strong>-Expenditures-<strong>in</strong>-the-United-States/Public-Policy-The-Comprehensive-Economic-Impact-of-<strong>Advertis<strong>in</strong>g</strong>-<br />

Expenditures- <strong>in</strong>-the-United-States.aspx (accessed November 1, 2007).<br />

[3] S. William Pattis, Careers <strong>in</strong> <strong>Advertis<strong>in</strong>g</strong> (Blacklick, OH: McGraw-Hill Professional, 2004), 9.<br />

[4] Cora Daniels, “Adman Jangles for a Hit J<strong>in</strong>gle,” Fast Company, July<br />

2007,http://www.fastcompany.com/magaz<strong>in</strong>e/117/fast-talk-rab<strong>in</strong>owitz.html (accessed February 4, 2009).<br />

[5] Cora Daniels, “B<strong>and</strong> Plays a Br<strong>and</strong>-New Game,” Fast Company, July<br />

2007,http://www.fastcompany.com/magaz<strong>in</strong>e/117/fast-talk-dubowsky.html (accessed February 4, 2009).<br />

[6] AllExperts, “Manilow, Barry,” http://en.allexperts.com/q/Manilow-Barry-511/Manilow-TVj<strong>in</strong>gles.htm<br />

(accessed July 17, 2008).<br />

Saylor URL: http://www.saylor.org/books<br />

Saylor.org<br />

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