ADVERTISING JOURNEY

     As this class ends, one realizes that “Persuasive Communications” has been a significant function of Advertising.  After flipping through the textbook “Kleppner’s Advertising Procedure“, from part one, “The Place of Advertising” through the final part six, “Other Environments of Advertising“, progression would have never been possible without persuasive communications. The textbook rexplains how persuasive communications has been used to secure public opinion, public policy, and purchasing decisions.  It continues to possess the power to induce action of belief of consumers.  It is vital for Advertisers to focus on their target audience. This is where “Persuasive Communications” is important. The communication process develops a message to implement creative marketing, advertising and public relations solutions.  With persausive communications, advertisers increase brand awareness.

 Coca Cola Classic Advertising Campaign with Selena

 Selena’s Coca Cola Classic Commercial 

     The Hispanic market has been successfully reached with the use of “Persuasive Communications”.  Many of the top advertisers, like Coke employed focus groups to research what persuasion methods were appropriate for this market.  With this information, they were able to develop creative and sales persuasive messages.  They also found that the messages alone would not work.  Not only would the messages need to in translated into the Spanish language, but also in “Spanglish“. Spanglish is the newer language (slang) used by the younger Hispanic generation.  The majority have been born in the USA. With this data, Coke ran a very successful “Coca Classic Campaign” with a popular Mexican-American celebrity, Selena.  Not only did Selena speak this new language, but she had already flourished in both the American and Mexican entertainment buisness.  Later, other advertisers followed Coke’s lead.  Now, to be more effective, advertisers are using ”Spanglish” (new version of Spanish) to reach both the Hispanic citizen and immigrant.

 

 

 

             

 

 

 

 

The open ” Marketplace of Ideas” was never considered an option but a standard of advertising and it was held to higher standards than other forms of expression.  The “Commercial Marketplace”, like other spheres of social and cultural life, provides forum of where ideas and information flourish.  Some of the ideas and information are vital while others are of non-importance.  But the general rule is that the speaker and audience, not the government, should assess the value of the information presented.  Even a communication that does no more than propose a transaction is entitled to the coverage of the First Amendment.  At one time purely commerical advertisements were considered outside the protection of the First Amendment.  Even though, it’s been a trend for the past sixty years to see “Commercial Speech” protected by the constitution, the full First amendment protection is denied to Advertising.  

The Federal Trade Commission, for example, may regulate speech that is found to be “deceptive” in Advertising. A prime example of this was a case involving Ralph Nader.  On August 17, 2000, Master Card filed suit against Ralph Nader alleging that one of his campaign ads entitled “Priceless Truth” infringed on the firm’s trademark and copyright of its credit card advertising campaign.  Master Card officials claimed that Nader’s campaign ad’s purpose was to “deceive, mislead, and confuse consumers and the purchasing public into believing that Nader and specifically his candidacy was in someway connected to the Master Card Company.   

    ” The Priceless Truth”

Ralph Nader Exerts

Ralph Nader rebuttled by stating that “Nader’s advertisement was a parody and fair political speech. It did not infringe on the MasterCard trademark or copyright”.   Nader stressed  that ”MasterCard was taking itself a little too seriously and in typical corporate style trying not only to dominate the credit-card industry through ‘dual governance’ inside the marketplace, but the arena of free speech and the free flow of creative ideas in the political arena. They should lighten up. They’re taking their name ‘Master’ too seriously. This is America.”  By expressing his First Amendment Rights, Nader concluded his speech by stating “Let me assure MasterCard’s executives that the last thing I want consumers to believe is that my campaign is in the business of selling credit cards”.  ”It would be hard for anyone to take seriously MasterCard’s allegations that some people might be confused that the company is endorsing this campaign-especially when the spot says ‘Paid for by the Nader 2000 Primary Committee, Inc.‘”

Made in the USA 

     How many times has one wondered if the product on the shelf was truly “Made in the USA”?  Could it really be legimately American?   How many times have you wandered through a Walmart trying to find an authentic American product?  It’s more like looking through a haystack.  Since the marketplace went global, many products continue being produced overseas and shipped for market to the USA.  Don’t dismay, many bonafide products bearing the “Made in USA” label can still be found.        

          According to the Federal Trade Commission (FTC), there are certain guidelines a product must meet before it can proudly wear the label. The main focus is that all a product has to be ”all or virtually all” made in the U.S. The term “United States,” as referred to in the Enforcement Policy Statement, includes the 50 states, the District of Columbia, and the U.S. territories and possessions. 

A product that includes foreign components may be called “Assembled in USA” without qualification when its principal assembly takes place in the U.S. and the assembly is substantial. For the “assembly” claim to be valid, the product’s “last substantial transformation” also should have occurred in the U.S. That’s why a “screwdriver” assembly in the U.S. of foreign components into a final product at the end of the manufacturing process doesn’t usually qualify for the “Assembled in USA” claim.    

Klein Screwdrivers “Assembled In USA“

In closing, as Americans, we should all be proud of our beautiful cities in America that carry the label 

“ Made in the USA “    

http://www.youtube.com/watch?v=qUc8uDRcNrE

 Ad Regulation 

     Today’s, major advertisers agree that all advertising should be fair, truthful, and ethical.  Advertisers recognize that their role in the Advertising Clearance Process has become vital.  This internal procedure clears ad for publication and broadcast. This practice has developed into a model of “Advertising Self-Regulation”.  Advertising self-regulation is identified as an effective and efficient tool for curbing excesses in advertising.  Unfortunately, they have minimal impact if they lack power or influence on advertisers.  As the global marketplace continues to grow, diversity will create new challenges.  Self-regulatory practices used in many other countries are not feasible in the US due to antitrust laws.  Media owners and managers have great potential to determine the type of advertising acceptable because they can review submission and decide what is appropriate for their audience.  The Advertising Clearance Process

is an independent review for media to regulate their operations and ensure ethical standards.   Various newspapers and magazines continue to investigate the reliability of advertisers before accepting copy.  Broadcasting stations developed two powerful clearance tools.   One is a request to advertisers to alter commercials to reach appropriate taste and/or to provide proof that claims are true.  The other is to reject the submission of unacceptable material.  The networks and the National Association of Broadcasters (NAB) have also developed their own standard ethical codes.  Many case studies (Hill and Beaver 1991; Kaplan and Hulberg 1988; Sewell and Jennerjahn 1982,  Wicks 1991) describe the advertising clearance activities of major networks that influenced Self-Regulation.

Self-Regulation in Advertising/Deceptive Advertising

     Media actions and an increase in governmental regulations have greatly influenced the “Advertising Self-Regulation” practice.   Within the National Association of Broadcasters (NAB), the suspension of the 1982 Code of NBA and the explosive growth in broadcasting shaped the process.  Since there has always been a critical need for ethical standards in the advertising industry, advertising trade associations, individual media, and industry groups have established their own Advertising Self-Regulation Process.  The development of self-regulatory code of conduct covering all forms of media that is sensitive to ethics, legalities, decency, and truthfulness.

Self-Regulations In Advertising

http://video.google.com/videosearch?q=Self-Regulation+in+Advertising&sitesearch=#

FREE TRADE AGREEMENTS (FTAs)

In today’s global economy, “Free Trade Agreements” continue to offer unequal opportunities for different countries to expand trade. Freer trade policies continue to generate competition in the open market.   According to basic economic strength, diverse countries continue to compete successfully in the global market.  Many have reaped productivity and efficiency gains.  For developing countries, results occurred from export expansion and by a reduction in high-tariff and non-tariff-barriers.   Free trade helped enterprises promote long-run wealth and prosperity for many countries. Free Trade Agreements (FTAs) can help an organization enter and compete more easily in the global marketplace.  FTAs help level the international playing field and encourage foreign governments to adopt open and transparent rulemaking procedures and non-discriminatory laws and regulations.  They help business with the elimination or reduction of tariff rates, improvement of regulations, opening procurement opportunities with government, and a simplification of investment rules.

Starbucks Free Trade

Disadvantage:     Starbucks can get the power, instead of the government.

Advantage:         There is more production leading to more Starbucks around cities.

        FTAs offer many advantages to accelerate growth by allowing greater competition, encouraging the formation of international partnerships, and liberalizing many industries.  The many benefits begin with an increase of “free trade” between nations.  A gain is secured in the increased liquidity of capital that permits investors to invest in developing nations.   Global mass media that brings the world together is also a plus.  An increase flow of communications is shared between everyone around the world.  A reduction of cultural barriers is obtained with the spread of democratic ideas to developed nations.  Rewards are acquired with greater interdependence of nation-states reducing a likelihood of war between developed nations.  Developed nations also achieve increases in environmental protection. Unfortunately, many developing countries fail to accept that “free trade” is only fair when identical labor costs and economic regulations are the same.  Because of this attitude, many of these countries have become frustrated with trade negotiations. 

The disadvantages of Free Trade Agreements force these countries to demand preferential access to world markets.   The drawbacks start with corporations seeking cheapest labor usually witnessed in America (international recruitment; alien certifications).  Difficulty is increased by economic disruptions that affect all nations.  Cultural expression is limited by a few corporations controlling the world media.  Jeopardy of the preservation of cultural heritage by violence attempts due to reactions of globalization.  There is a greater risk of unintentional transportation of diseases between nations.  Attitudes and materialistic lifestyle could escalate because of new prosperity.  Chances of civil war increase within developing countries and possible open war for resources.  Regulatory rules in developing countries are non-existence.

NAFTA (North American Free Trade Agreement)

Advantage:             NAFTA -  Eliminated  tariffs, reducing the cost of goods between USA and Mexico.

Disadvantage:        USA Companies moved into Mexico to produce the goods cheaper then shipped back to USA.   

http://video.google.com/videoplay?docid=416279254984297116&q=nafta&hl=en