Principles of Advertising A Global Perspective Second Edition The Haworth Press Titles of Related Interest How to Create Interest-Evoking, Sales-Inducing, Non-Irritating Advertising by Walter Weir Product-Country Images: Impact and Role in International Marketing edited by Nicolas Papadopoulos and Louise A. Heslop Globalization of Consumer Markets: Structures and Strategies edited by Salah S. Hassan and Erdener Kaynak Franchising: Contemporary Issues and Research edited by Patrick J. Kaufmann and Rajiv P. Dant Gays, Lesbians, and Consumer Behavior: Theory, Practice, and Research Issues in Marketing edited by Daniel L. Wardlow Newer Insights into Marketing: Cross-Cultural and Cross-National Perspectives edited by Camille P. Schuster and Phil Harris Untold Millions: Secret Truths About Marketing to Gay and Lesbian Consumers by Grant Lukenbill Volunteerism Marketing: New Vistas for Nonprofit and Public Sector Management edited by Donald R. Self and Walter W. Wymer Jr. Global Marketing Co-Operation and Networks edited by Leo Paul Dana Strategic Global Marketing: Issues and Trends edited by Erdener Kaynak Euromarketing and the Future edited by Lynn R. Kahle Concise Encyclopedia of Advertising by Kenneth E. Clow and Donald Baack Principles of Advertising A Global Perspective Second Edition Monle Lee Carla Johnson Routledge Taylor & Francis Group NEW YORK AND LONDON First Published by The Haworth Press, Inc., 10 Alice Street, Binghamton, NY 13904-1580. Transferred to Digital Printing 2009 by Routledge 270 Madison Ave, New York NY 10016 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN For more information on this book or to order, visit http://www.haworthpress.com/store/product.asp?sku=5512 or call 1-800-HAWORTH (800-429-6784) in the United States and Canada or (607) 722-5857 outside the United States and Canada or contact [email protected] © 2005 by The Haworth Press, Inc. All rights reserved. No part of this work may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, microfilm, and recording, or by any information storage and retrieval system, without permission in writing from the publisher. Reprint 2006 First edition published 1999. Cover design by Marylouise E. Doyle. Library of Congress Cataloging-in-Publication Data Lee, Monle. Principles of advertising : a global perspective / Monle Lee, Carla Johnson.—2nd ed. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-7890-2299-8 (hc. : alk. paper) ISBN-10: 0-7890-2299-0 (hc. : alk. paper) ISBN-13: 978-0-7890-2300-1 (pbk. : alk. paper) ISBN-10: 0-7890-2300-8 (pbk. : alk. paper) 1. Advertising. I. Johnson, Carla, 1944- II. Title. HF5821.L35 2005 659.1—dc22 2005002253 Publisher's Note The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original may be apparent. To the memory of our parents, Mrs. Wuyao H. Lee and Mr. Harold P. Jackson, in appreciation for their years of love and support ABOUT THE AUTHORS Monle Lee, DBA, is Professor of Marketing at Indiana University South Bend in Indiana and the co-author of Principles of Advertising: A Global Perspective. Her first book, Advertising: Strategy and Man agement, a Mandarin Chinese language advertising textbook, was re leased in Taiwan in 1998 for Taiwanese college students. Her re search interests center on international marketing, ethics marketing, advertising, and ethical issues in different cultures. Her research has appeared in book chapters, business journals, and various conference proceedings. Dr. Lee was previously an international marketer in Tai wan. Carla Johnson, PhD, is a professional writing specialist, Assistant Director of the Writing Proficiency Program, and Internship Program Coordinator for the English Department at Saint Mary's College in Notre Dame. She is the co-author of Principles of Advertising: A Global Perspective and the author of 21st Century Feature Writing, and has presented at the International Society for the Study of Euro pean Ideas conferences and in advertising sessions of the Popular Culture Association's international meetings. CONTENTS Foreword xiii Don E. Schultz Preface to the Second Edition xvii Kate Dooley Acknowledgments xxi Chapter 1. Introduction to Advertising 1 Advertising Defined 3 Advertising Classifications 4 The Global Perspective: Global Brand Creation 5 Advertising Functions 10 Advertising and Marketing 12 Ethics Track: Has the Top Pharmaceutical Advertiser Abused Its Power? 13 The Evolution of Advertising 17 Summary 23 :30 Spot: Integrating an IMC Philosophy 24 Chapter 2. The Advertising Environment: Economy, Society, and Technology 27 The Advertising Environment 29 The Global Perspective: Know When to Back Off 30 Economic Forces and Advertising 31 Social Forces and Advertising 32 Ethics Track: Invasive Technologies 33 Technological Forces and Advertising 37 Summary 41 :60 Spot: The Times They Are Changin' 42 Chapter 3. Legal and Political Forces and Advertising 45 The Political and Legal Environments in the United States 47 The Global Perspective: The Impact of Advertising Environment on International Advertising 48 The Political and Legal Environments in Other Selected Countries 55 Ethics Track: Tobacco's Woes 55 Summary 66 :30 Spot: The Benefits of a Graduate Degree 67 Chapter 4. The Advertising Business and Advertising Agencies 69 The Advertising Business 71 The Global Perspective: "I'm Lovin'It" in China 72 The Advertising Agency 74 Agency Compensation 79 Ethics Track: The Canadian Conundrum 82 Client-Agency Relationships 83 Summary 86 :60 Spot: The Milk Mustache Story 87 Chapter 5. Market Segmentation, Target Marketing, and Product Positioning 89 Market Segmentation 91 The Global Perspective: A Week in Marketing 93 Target Marketing 97 Ethics Track: Marketing Cosmetic Surgery 98 Product Positioning 101 Summary 103 :30 Spot: "Paws-itively Hilarious" 105 Chapter 6. Buyer Behavior and Advertising 107 The Buyer Decision Process 109 The Global Perspective: We Can Create It, but We Can't Show It 110 Factors Influencing the Business Market 113 Factors Influencing the Consumer Market 114 Ethics Track: Marketing to Men 115 Consumer Behavior 121 Summary 122 :60 Spot: "Marketing Professional Services" 124 Chapter 7. Marketing and Advertising Research 125 Marketing Research 128 The Global Perspective: Consumer Intelligence 129 Advertising Research 131 Research Trends 137 Ethics Track: Janet Jackson Exposed 138 Summary 139 :60 Spot: Writing the Road to Success 140 Chapter 8. The Marketing and Advertising Planning Process 143 The Marketing Plan 145 The Global Perspective: When Coke May Not Be "It" 146 The Advertising Plan 151 Ethics Track: Olympic Sponsorship Ambushed 153 Making Budget Decisions 156 Summary 158 :30 Spot: A Day in the Life of an Evolving Brand 159 Chapter 9. The Creative Aspect of Advertising 163 Creative Concepts or Creativity in Advertising 165 The Global Perspective: Hard Sell Is a Hard Sell Overseas 167 Development in Creative Strategy 171 Ethics Track: Advertising As Programming ? 174 Summary 185 :30 Spot: The Key to Great Creative 186 Chapter 10. Advertising Production 187 Print Advertising Production 189 The Global Perspective: When the Big Idea Goes Abroad 190 Broadcast Advertising Production 193 Ethics Track: The War on Advertising 195 Internet Advertising Production 205 Summary 209 :60 Spot: "Vicki's Choice: Healthy Challenges" 211