How Does Advertising Work? Essay -- Business Management Studies

How Does Advertising Work? INTRODUCTION ------------ Definition  · The original definition of advertising was â€Å"to draw attention to something† or to notify or inform someone of something (Branston 1996).  · A modern definition is the publication (in various forms) of facts or opinions concerning goods or services, to awaken the public’s interest and persuade them to purchase.  · Advertising is now big business – an industry with extraordinary cultural and economic impact.  · This is funded through the cost of the goods that consumers buy.  · Advertising is now the media form most often encountered, and is perhaps the most powerful and pervasive form of propaganda in history.  · It is found in various forms including on billboards, websites, â€Å"junk mail†, and commercially funds most television, newspapers and magazines.  · Advertising has the power to create brand awareness and loyalty as well as stimulating demand. Advertising is not a science  · It is important to realise that advertising is not a science.  · An individual will interpret an advertisement using their own social networks, their own backgrounds and their own motivations.  · The way an advertisement is interpreted cannot be controlled or monitored by an advertiser, therefore it is important to realise that they do not contain a single meaning for all audience members.  · Advertising is much more effective when an advertiser understands their audience’s background and social networks as well as their ability to select media and advertisements that appear in those media.  · Therefore the challenge for advertising is to create a message that ultimately connects with a select group of people. WHAT DOES ADVERTISING DO?  · It has already been stated that advertising is created to help sell something.  · Therefore the ultimate goal of advertising is to increase the advertiser’s sales no matter who the advertiser is or the target audience, what the product is, or how the ad is delivered. Advertising Goals  · The ultimate goal of advertising is to increase sales.  · However, in terms of functional aspects a more specific advertising goal is required.  · There are various advertising objectives, which can largely be generalised into the following eight areas: . To provide ... ...nt methods and models.  · Consumers go through a complicated mental process when they make a decision about even simple purchasing which helps explain why advertising can be such a complicated subject and difficult to perfect.  · Consumers learn from advertising by acquiring knowledge about products that are available and figuring out which products can satisfy their needs.  · Consumers base their decisions on rational, informational aspects of advertising based on logic, as well as emotional aspects based on feelings and attitudes.  · All adverts stimulate these responses to some extent.  · It is the job of the advertiser to create an advert which will make the best use of these possible responses to affect an increase in sales.  · All brands have functional attributes, personality and salience as underlying brand dynamics.  · However, any given piece of advertising will only stimulate one primary response and one driving brand dynamic.  · Methods of and responses to advertising have changed much over the last 100 years and will continue to do so in the future as society continues to change, and new technologies are developed.

Economic development Essay

Smith (2002) follows the research structure in 1990 but narrows down the research range from country-level data to industry-level data. This paper provides further analysis from 1972 to 1992 at five-year intervals and focuses on three specific patent-sensitive industries – Biological products, Medicinal and Botanicals, and Pharmaceuticals. The results in the paper support the hypothesis of the previous studies in 1999. Moreover, one of the mainly differences between this paper and the previous studies, as mentioned above, is the measure of patent rights index. The level of patent rights protection varies from countries to countries. In practice, there are two methods to measure the patent rights index – Rapp-Rozek index and Ginarte-Park index. Maskus and Penubarti’s research (1995) and Smith (1999 & 2001) all adopt Rapp and Rozek index but this paper measures patent rights index by Ginarte-Park index. In fact, two patent rights indices have been used in many empirical literatures about patent rights. The Rapp and Rozek index will be measured by six features – â€Å"coverage of inventions, examination procedures, and term of protection, transferability of rights, compulsory licensing, and effective enforcement against infringement† (Smith, P. J. 1999). On the side, the scores of Ginarte and Park index will be determined by five features – membership in international treaties, coverage, and restrictions on patent rights, enforcement and duration of protection. The sum score is zero through five. The higher total points indicate stronger patent protection (Park, W. G. , 2008). Smith’s finding verifies that there is no significant difference between using two patent rights indices. Notwithstanding, comparing with Rapp and Rozek index, Ginarte-Park index which merger the important international patent laws and agreement into the evaluation is used in this paper. Rafiquzzaman (2002) examines the amount of export of Canada to 76 countries in 1990 according to 22 categories in 2-digit level of the Standard Industrial Classification (SIC) Codes. The explanatory variables are gross national income, population size, patent rights, tariff rate and distance. It is worth noting that Rafiquzzaman compare the results of two different index of patent right as well and then find the correlation between Rapp-Rozex index for 1984 and Ginarte-Park index for 1990 is 0. 78. In other words, using either Rapp-Rozex index or Ginarte-Park index to estimate country’s patent protection has no significant difference, as Smith’s finding. The conclusion of this study provides support for verifying Smith’s hypothesis in 1999. That is to say, an increase in patent rights often leads in an increase in Canada’s exports, in particular if importing countries have high economic development levels and strong threats to imitation. After reviewing the theoretical research and existing empirical literatures, the effect of patent rights might be positive or negative, even be ambiguous. It might depend on some characteristics of importing countries – country’s economic developments levels, strength of patent rights and local imitation pressure, for example. This paper attempts to extend Smith’s research in 1999 but use different database. Besides, this paper adopts up-to-date data (2005) to examine the relationship between the strength of patent right and international trade which does the result as the same as Smith’s research in 1999, 2001, and 2002. This research structure can help governments have an overall picture to analyze the relationship between economic growth and the strength of patent rights. As discussed above, effects of patent rights are defined in early empirical studies are market expansion and market power. In principle, market power and expansion effects can be briefly explained in two aspects – demand and supply in economics. The market expansion effect can be defined that market shares of patent holders will rise when the patent rights protection in importing countries is improved. The advanced rights of patent generate higher costs of imitation to competitors and encourage, promote and attract more foreign technology to importing countries. In other words, less imitation not only implies an increased demand for exports because of lower costs, but also infers an increased supply. It is because exporters save anti-imitative costs such as monitor costs, enforcement costs and costs to prevent copying and imitation. In a standard demand and supply model, cost reduction leads a right shift both in demand and supply line. On the other hand, improved patent rights protection might produce monopolistic market power and contribute to a more concentrated market because of higher technical and cost barriers to entry. From the standard monopoly model, it can be seen that the sold quantity of monopolistic enterprises would be always less than the society optimum quantity in order to sell products at prices plus monopoly mark up. There is a monopolistic tactics to maximize firms profit is to beat selling quantity down in order to raise price. Hence, market power effect will confer more market power on the patent holders and then result in a reduction of the amount of export. In this article, we collect data sets from US exports and study three forms of bilateral trade equations to test three hypotheses about the relationship between exports and patent rights in relation to income development, imitative abilities, and threat of imitation, respectively. The first hypothesis which examines the relation between patent rights and country development is based on Maskus and Penubarti’s research (1995) and Smith’s research (1999). The other two hypotheses are based on Smith’s research (1999) to take the degree of threat of imitation and imitative abilities into account. Hypothesis 1- interaction between exports and patent rights with relation to country’s level of development In this section, I suppose a country’s development of patent rights positively respond to its economic development. We assume that countries with higher economic development would pay more attention on patent reform. In addition, higher-income developed countries possess much financial resources than lower-income countries. As imagined, higher-income developed nations are likely to control up great majority expenditure and performance on research and development in the world. Otherwise, developing countries take ambiguous attitudes towards the world’s patent reform. As discussed above, a fierce debate originates in some doubts with regard to effects of patent protection from developing countries. A patent reform in developing countries might attract foreign investment and international trade, but it might restrain economic development in local industry as well. Besides, lower income economies seem to relatively lack non natural resources such as financial and technological resources. It is said that higher income countries possess some degree of market power because of these unique competitive advantages such as patent, financial resources or higher technical capacities. Hence, referring to above assumptions, higher income developed nations pose stronger patent protection than lower income countries have.

Compare Contrast Lincoln and Jfk - 1762 Words

Abraham Lincoln was born in a log cabin on February 12, 1809 in Hardin County, Kentucky. Much of his childhood was a struggle; his mother dying when he was just ten years old, and with his father being a frontiersman, money was scarce. He had to strive for a comfortable living, and he spent his days working on a farm and keeping a store. Education was also something of limited resources, but because of his hunger for knowledge, he was able to read, write, and cipher. Lincoln was elected to Congress in 1846 where he played part of the Illinois legislature for eight years, and for many years he also rode the circuit of courts. His ambition was a little engine that knew no rest, stated one of his law partners. He ran for the position of†¦show more content†¦He suffered many illnesses growing up, most of which were undiagnosed, and spent most of his time rejuvenating. He attended Harvard University, and while in England with his Father (the ambassador of the United Kingdom) he wrote his senior essay on the lack of readiness England had for World War II. His essay was later published and became the best seller, Why England Slept. After Kennedy graduated from Harvard, the United States soon entered the Second World War. He gave many efforts to join the U.S. Navy, but most were turned down due to his poor health. With the help of his father, he was finally admitted to serve in the South Pacific where he would command a motor-torpedo boat. For rescuing his crew, he earned the Medal for Valor, and for the many injuries and illnesses he sustained, he earned a Purple Heart. In 1946, after the war, Kennedy was elected into Congress, where he served three terms in the House of Representatives. He represented the working-class Boston district, and earned the reputation of being a conservative Democrat. In 1952, he ran for U.S. Senate, and defeated the Republican from Massachusetts, Henry Cabot Lodge Jr. In 1956, he was hopeful for a vice presidential position, but lost to Estes Kefauver, a senator from Tennessee. However, in 1960, he won the Democratic nomination for the 1960 presidential election. He ran against Republican Richard Nixon. Despite manyShow MoreRelatedCompare and Contrast Lincoln And Jfk Essay1745 Words   |  7 PagesAbraham Lincoln was born in a log cabin on February 12, 1809 in Hardin County, Kentucky. Much of his childhood was a struggle; his mother dying when he was just ten years old, and with his father being a frontiersman, money was scarce. He had to strive for a comfortable living, and he spent his days working on a farm and keeping a store. Education was also something of limited resources, but because of his hunger for knowledge, he was able to read, write, and cipher. Lincoln was elected to CongressRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagestransformations in where humans lived, how they earned their livings, and their unprecedented ability to move about the globe. Moya and McKeown set the patterns of migration in the twentieth century against those extending back millennia, and they compare in imaginative ways the similarities and differences among diverse flows in different geographical areas and across ethnic communities and social strata. They consider not only the nature, volume, and direction of migrant movements motivated primarilyRead MoreMarketing Mistakes and Successes175322 Words   |  702 Pagesstudents can hone their analytical skills and also their persuasive skills—not selling products but selling their ideas—and defend them against critical scrutiny. This is great practice for the arena of business to come. NEW TO THIS EDITION In contrast to the early editions, which examined only notable mistakes, and based on your favorable comments about recent editions, I have again included some well-known successes. While mistakes provide valuable learning insights, we can also learn from