By W. Duncan. Reekie
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Extra resources for Advertising: Its Place in Political and Managerial Economics
This is the stance taken, for example, by Packard. In The Hidden Persuaders, he writes: ... a good many of the people-manipulating activities of the persuaders raise profoundly disturbing questions about the kind of society they are seeking to build for us. Their ability to contact millions of us simultaneously ... gives them the power ... to do good or evil. (9) This can be put more succinctly by asking if advertising creates the values of society, or whether is merely reflects them? Unfortunately this question is well-nigh impossible to answer.
Closely reasoned arguments require relatively large amounts of supporting information, and time for that information to be digested by the potential consumer. Newspapers provide the advertiser with the ability to put over large amounts of information and give the reader as long as he himself needs to assimilate it. TV adverts, on the other hand, are of necessity brief, and cannot be perused in depth at the discretion of the individual viewer. D 1 , however, is probably a more suitable message design when TV is the more economically attractive.
Competitors, who may have remained quiescent during this year's campaign may react vigorously, for example, by counter-advertising or price cutting, in future periods. What effect will that have on sales response? Furthermore, this year's advertising will have some sort of carry-over effect into next's. So the manager attempting to construct a predictive sales-response function must not only take into account the facts that advertising may differ qualitatively, and that rivals and consumers may react differently, he must also include in his calculations the fact that the 'goodwill input' at the commencement of each period will differ and will, in turn, alter the shape of the response function from one period to the next.
Advertising: Its Place in Political and Managerial Economics by W. Duncan. Reekie