Southwest Airlines in 2010: Culture, Value, and Operation Practices

Coursework Header Sheet198322-169 | | Course| RESE1031: PPD3 – Thematic Independent St| Course School/Level| BU/UG| Coursework| Essay 1| Assessment Weight| 35. 00%| Tutor| N Stair| Submission Deadline| 14/12/2012| Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism. | 000731054 Yezhou Liang Tutor's comments |Grade Awarded___________| For Office Use Only__________| Final Grade_________| Moderation required: yes/no| Tutor______________________| Date _______________| University of Greenwich TIS Essay 1 Advertising Industry Name: Yezhou Liang Tutor’s name: Nola Stair Submission data: 14/12/2012 Contents I. Introduction II. Definition, history of advertising * Definition * History III. Marketing and Advertisi ng * Marketing concept * The concept of Exchange * The concept of branding * The concept of added value IV. Advertising management * History of the advertising management * How advertising works * Method of advertising management V.Advertising strategy * Advertising planning and decision making * Advertising strategy content VI. Conclusion ; Summary VII. Reference Introduction Advertisement can be found everywhere in our daily life, such as at street, at bus station, at Internet, at TV etc. As long as there is business action, advertisement must be used. For example, Apple Company would make a number of advertisements in order to increase the attention before Apple company release new product. Although advertisement pays a significant role in our society, someone might do not recognize the advertising industry. This essay will focus on advertising industry.Advertising industry is a very popular project. Each year many graduate choose advertising industry to work on, and majority of high school students hope to research the project which relate to advertising industry in university. Some Famous stars and directors also take part in the industry. For instance, great director David Lynch made an advertisement for Dior in 2010. Because of a wide range of advertising industry, it is important that the advertising management and strategy. How manage advertising industry, how make a effective strategy, and what is the relationship between the advertising industry and marketing.These three questions are key point which the essays discuss. The first section of this essay will introduce to the definition and history of advertising. Next this essay will separately analyse to aforementioned three questions. The last section will give a short summary and conclusion to this essay. Definition and history of advertising Definition: In the past, there are a great numbers of definitions about advertising. Industry icon Leo Burnett defined it as â€Å"selling corn flakes to peo ple who are eating cheerio† (Bendinger B. 1993 P. 60). U. S president Calvin Coolidge called it â€Å"the life of trade† (Bradley, Daniels and Jones 1960, P. 3), and in a advertising textbook, Daniel starch (1923, P. 5) suggested â€Å"the simplest definition of advertising, and one that will probably meet the test of critical examination, is that advertising is selling in print† A more modern definition can be found in the American Heritage Dictionary (2000) â€Å" the activity of attracting public attention to a product or business, as by paid announcements in the print, broadcast, or electronic media. † Although many scholars have defined advertising, on comparing most of them, it can be summarized as these key points: broadcast, force and education.According to Printers’ Ink (1963, p. 20), he gives his own opinion to the 3key points â€Å"Advertising is one of the east expected and most productive results of the Constitution. By offering and in formation, advertising has helped to break down class barriers. By educating and persuading, advertising has been a major force in promoting public health. † Indeed, advertising create a new method which is mare fashion, rapid and direct to broadcast some product information, so that audience can easier accept product. Thee successful advertisement of IPhone is a good example.On the other aspect, advertising should take advantage of educate audience, such as antismoking advertising, protect the environment etc. History: Advertising application can be traced back to ancient times, it almost accompanied by the appearance of commodities. Early form of advertising were signs such as huckster, the inn sign, the red-and –white striped barber’s pole, the apothecary’s jar of coloured liquid and the wheel wright’s wheel etc. (Frank J. 1988, P. 1-2) In the ancient Egyptians and Greeks, there were number of huckster to sell slave and livestock by shouting some rhythmic advertisement, but it is doubtful that the ancient Egyptians and Greeks were insensible to the benefits of product promotion. The Romans certainly knew how to make a convincing sales pitch, and early example of advertising were found in the ruins of Pompeii, and the earliest store signboard originated in the ancient city of Pompeii. (Mark T. 2007, P. 10) In modern time, with the development of business, there were a variety of goods in the market. Thus, advertising have been used more and more broad, and advertising took a leap forward.Of course, with the appearance of the printing press and movable type – and invention generally credited to German former goldsmith Johannes Gutenberg in 1447. (Mark T. 2007, P. 10)Theophraste Renaudot, a French doctor, journalist and unlikely adman, created in1631 the first French newspaper to disseminate seeking and offering work, buying and selling goods information, and public announcements of all kinds more widely, which he calle d La Gazette. Thus he became the first French Journalist – and the inventor of the personal advertisement. Mark T. 2007, P. 10-11) In the United Kingdom, the first advertising agent was probably one William Tayler, who opened an office n London’s Warwick Square in 1786. The firm later became known as Tayler ; Newton, and it acted as an advertising sales representative for printers – several of whom had launched newspapers promote their trade. (Mark T. 2007, P. 11) To sum up, advertising have a long history, but the form were old and terrible effective in ancient. Advertising have developed rapidly since the mid – 15th century.At present, there are variety kinds of advertising form, and it has been an important dissemination tool, which become indispensability in our daily life. One of the purposes of advertising is disseminate product information. Therefore, researching the relationship between advertising and marketing is necessary. The following section will analyse what is the connection between both. Marketing and Advertising In modern society, a majority of goods compete to each other in the market, and advertising is undoubtedly the quickest and most effective dissemination form.Whether the goods has a high market share in fierce competition, which depend on successful advertising. Thus, marketing and advertising must have some internal connection. If the market marketing practice is still in development, however, some concept is very important and our knowledge of theses concepts as it is today: exchange, brand value, the marketing concept. All of these concepts have a great impact to advertising and the role of advertising marketing. Let's look briefly at each.Marketing concept: â€Å"Marketing is consumer – oriented, that is, it is planned and implemented to facilitate exchange between the buyer and seller on the basis of identified consumer wants and need. Note that the emphasis in modern marketing is on buyer â₠¬â€œ seller exchange and consumer satisfaction. To induce consumer to engage in exchange, markets develop a marketing mix – a combination of decisions about products price, distribution channels, and promotion. Advertising is an essential part of the promotion element of the marketing mix, which includes sales promotion, public relations, and personal selling. Dean M. K, Leonard N. R, S. Watson D, Arnold M. B, 1989, P. 11). In a word, marketing is seller products to consumers more effectively, and advertising is one of the methods of marketing. The concept of Exchange: â€Å"Marketing helps to create exchange, that is, the act of trading a desired product or service to receive something of value in return. The company makes a product and offers it for sale at a certain price; the customer gives money to the company to buy that product. Money is exchanged for goods. † (William W, Sandra M, John B, 1995, P. 2-33) How to make the customer recognized your products, and the y would like to use the money to buy your product, which depend on successful advertising to promote your product and show the detail of your product. If your advertising could attract customers, your products must popular in the market. So in the market exchange has two meanings, communication is particularly important in the advertising. In other words, people must understand it before they can buy or registered it or to the donation. So marketing is the practice of effective communication in order to be realized their products by customers.The concept of branding: â€Å"Branding is the process of creating a special meaning for a product, one that makes it distinctive in the marketplace and in its product category, just as your name makes you unique in your community. That special meaning, or brand image, is the result of communication, as well as your own personal experiences with the product. † (William W, Sandra M, John B, 1995, P. 33). In generally, customers prefer to buy some famous brand. For that reason, a famous brand is important when customers choose a product that they think necessary such as fashion items, cars, laptops etc.Because people always believe a theory: the more famous goods, the better quality of it. This is â€Å"Famous brand name effect†. A most striking feature of famous brand is that it has a wide influence around the world, and there is no doubt that advertising contribute to broad the influence. For example, Chanel is a famous fashion brand in the world, and Chanel No. 5 perfume is most classical. There have been many super stars to endorse this perfume since it was published in 1921, it include Marilyn Monroe, Nicole Kidman, Brad Pitt etc. they are all super star in at that time. This shows that Chanel Company invests much money to advertising.Thus the successes of Chanel No. 5 depend on advertising. The concept of added value: â€Å"The reason marketing and advertising activities are useful, both to consumers an d to marketers, is that they add value to a product. Added value means a marketing or advertising activity makes the product more valuable useful or appealing. Advertising not only can showcase the product’s value but it also may add value by making the product appear more desirable or more of a status symbol. Providing news and useful information of interest to consumers is another way that advertising adds value. † (William W, Sandra M, John B, 1995, P. 5-36). NIKE is a good example. They have a kind of products in their all products: NBA basketball star product. In NBA, a great number of basketball stars is the NIKE’s spokespeople. According to the star’s characteristic, achievement, and habits, NIKE company design and produce a series of product for the star, the product has a different logo and different technologies to another product, and these are more expensive than the others. One of most famous series is Jordan series, Kobe series and LeBron ser ies. These products have own special logo, such as Jordan series’ logo is an Air Man Michael Jordan.Furthermore, these products are more expensive than ordinary product about 30%. In China, the price of NIKE NBA star series shoes are 1200 Yuan or more, but these ordinary NIKE shoes is no more than 900 Yuan. The more than 300 Yuan gap is added value by advertising. Thus, advertising really can take added value for products. At above statement, the relationship of advertising and marketing was analyzed from the four concepts, and through some examples, it proves the correctness and feasibility of this proposal. Next section, the essay will continually analyze advertising management. Advertising managementAny industries cannot do without management, and advertising will be no exception. Advertising management belongs to the category of economic management. It based on some advertising management laws and some relevant policies to guide, supervise, coordinate and control to the a dvertising industry and advertising activities by the government, advertising industry associations and advertising community supervision. It make the advertising activity to adapt to the economic situation for the advertising industry development, make the advertising industry gradually from disorderly to orderly, from chaos to health.Advertising can play its proper role in this background. Firstly, the essay will shortly introduce to the history of advertising management History of the advertising management: Compared with the production of advertising, advertising management appears to be late so much. At the end of the eighteenth century and the beginning of the 19th century, the industrial revolution was outbroke in Britain, the United States and other west countries, and it led to the rapidly develop of economy. The prosperity of social economy and the development of industry and commerce created a good condition for the emergence of the advertising.However, due to without the right management system, there has been confusion and disorder in the competition of advertising, and it threaten the healthy economic development in some western countries. Therefore, after the 20th century, western governments set out to legislate for advertising and supervise to it. This is the beginning of modern advertising management. How advertising works: In order to better manage advertising, firstly, managers must know how advertising works. Advertising is a form of communication, it provide a variety of product information to consumers. â€Å"However, advertising is not a conversation.Most advertising is not as personal or as interactive as a conversation because it relies on mass communication, which is indirect and complex. † (William W, Sandra M, John B, 1995, P. 99) There is an advertising communication model, it can clearly reflect how to advertising works: Feedback Feedback Noise: Internal Perceived Needs Information Processing Attitudes and opinions Other N oise Noise: Internal Perceived Needs Information Processing Attitudes and opinions Other Noise Noise: External Public opinion Marketing strategy Competition Other noise Noise: External Public opinion Marketing strategy Competition Other noiseReceiver: Consumer reception and response Perceive Understand Feel Connect Believe Act Receiver: Consumer reception and response Perceive Understand Feel Connect Believe Act Media mix: Channels Media mix: Channels Message: Encoding (by agency) Message: Encoding (by agency) Source: Advertiser (Objectives) Source: Advertiser (Objectives) Advertising communication model (William W, Sandra M, John B, 1995, P. 100) According to the figure, it begins with a source which is provided by advertiser. The source information will be encoded a message by professional agency, and put it in some words and pictures.And then, the message is shown through the media mix, such as newspaper, poster, radio, TV etc. Through the media mix decode to the message, the sou rce information will be received to audiences. After that, audience give some feedback to assess the source information to advertiser. Noise is inevitable in the whole process, it includes internal noise and external noise. it can disturb and interrupt the encoding process and decoding process. Thus sometimes the message cannot be received completely by audience. Through analysing to how advertising works, we can deeply understand details of advertising management.Following, the essay will research the method of advertising management. Method of advertising management: Method of advertising management is a means which advertising management personnel perform the administrative functions in order to achieve the management goal. However, there is different method of advertising management in different country. Thus the essay will find a representative case to analyse method of advertising management. Federal Trade Commission (FTC) is an institution which manages all advertising around the United States.Therefore, FTC has own the methods of advertising management, and these method can reduce to 5 key methods. â€Å"They are Substantiation, Affirmative disclosure, Cease—and—desist order, Consent order and Corrective advertising†. (William L. W, Dennis L. M &Michael B. M, 1984). Next the essay will separately analyze the five methods. Substantiation: FTC requires advertiser issued their certificate and provide some evidence for their description in advertising. This method is in order to save the evidence for all advertising, and conveniently provides this evidence to deceptive advertising.After the implementation of the method, a number of advertising had been cancelled because of cannot provide evidence for the false content in their advertising. For example, Borg-warner air conditioner advertising claims that their products are able to release clean and healthy air, but Borg-warner Company cannot provide the evidence for the clean and health y air. Thus their advertising is forbidden by FTC. Affirmative disclosure: FTC require the product which related to the safety and health in the ad, it is necessary to accurately show the characteristics of the product , the advertising also must expose its shortcomings and imitations , that is not only to advertise what the product can do , but also what it cannot do. â€Å"Amway Nutrilite† is a famous health care product in the world. In their products packaging, so many good information could be found on it, such as Nutrient content, function introduction etc. However, a warning also could be seemed: the product cannot replace any medicine. Cease—and—desist order: there is enough evidence to judge that advertising have deceived or misleading, FTC can release â€Å"Cease—and—desist order â€Å". Once the FTC come up with the application of this order to court, orders can be effective immediately.Advertisers can only be signed according to the r equirements, admit the illegal advertisements. Thus, this order can timely cancel the deceptive advertising. It replaces the multifarious legal procedure, and makes the market to keep the normal competition as soon as possible. Consent order: In order to supply a gap which is costing long time to find the evidence, as soon as possible stop to broadcast the false advertising, which the kind of product relate to physical and mental health with people, such as food, medicine and cosmetic.FTC can issued â€Å"Consent Order† in necessity, this judgment not specify why the advertising should be forbidden, and the advertisers also can write the signature to agreed to stop suspected advertising even though he do not admit his fault, . If advertisers continue to publish or broadcast the suspected advertising after he writes the signature, he will pay a great number of fines for it. Corrective advertising: FTC come up with the corrective advertising suggestion to misleading advertising which deeply impressed in consumers’ mind. It is in order to eliminate wrong impression.Although there are different methods of advertising management in the different country, they have the same purpose that they hope advertising industry healthier and healthier in the rapid development by these methods of advertising management. Next part, the essay will discuss advertising strategy. Advertising strategy Advertising strategy is that advertising publisher grasps the advertising decision in the macroscopic. Researching advertising strategy is necessary. Because it can improve the advertising effect, make the enterprise with the lowest costs to achieve the best marketing target.In modern society, market competition becomes more and more fierce, a company or product want to outstanding in the market environment, or beat the competitor in order to ensure development, almost connect with correct using the advertising strategy. A successful advertising strategy always includes an advertising planning and decision making. Following, this essay will analyse advertising planning and decision making. Advertising planning and decision making The major activities of advertising management are planning and decision making.In most instances, the advertising or brand manager will be involved in the development, implementation, and overall management of an advertising plan. A complete advertising plan reflects the results of the planning and decision – making process and the decisions that have been made in a particular product – market situation. (Rajeev B, John G. M, David A. A, 1995, P. 38) There is a figure of framework for advertising planning and decision making. Consumer / Market Analysis Competitive Analysis Consumer / Market Analysis Competitive Analysis Situation Analysis Situation AnalysisRole of Advertising, Sales Force, Price, Promotion, Public Relations Role of Advertising, Sales Force, Price, Promotion, Public Relations Marketing Program Marketing Program The Communications/Persuasion process The Communications/Persuasion process Objectives/Segmentation/Positioning Message Strategy and Tactics Media Strategy and Tactics Objectives/Segmentation/Positioning Message Strategy and Tactics Media Strategy and Tactics Advertising Plan Advertising Plan Facilitating Agencies Social and legal constraints Facilitating Agencies Social and legal constraints Implementation ImplementationFramework for advertising planning and decision making (Rajeev B, John G. M, David A. A, 1995, P. 38) According to the figure, advertising plan include three aspect: Objectives, Message Strategy and Tactics and Media Strategy and Tactics. Every advertisement plan will at least reflect planning, decision-making, and the three main components are connected each one. ‘Objective’ means choose a good target for advertising. Because advertising has wide influence, if the product has some problem, advertiser would have huge trouble. For examp le, in 2008, if you advertised for dairy industry in China, you must go bankrupt.In that time, Chinese dairy industry environment became quite terrible because of poison milk powder. But if you advertised for Olympic product ,you would make considerable money. â€Å"Message strategy and tactic is executional decisions, such as the choice of a spokesperson, the use of humour or fear or other tones, and the selection of particular copy, visuals, and layout. Media strategy concerns decisions on how many media dollars to spend on and advertising campaign; Media tactics comprise the decisions about which specific media or media vehicles to use. (Rajeev B, John G. M, David A. A, 1995, P. 50-51) Thus whether advertising planning and decision making is successful, it depend on the three aspects. Advertising strategy content In generally, the advertising strategy has the following components: 1. Strategic objectives – direct advertising campaign to reach target. 2. Performance strate gy – that is, to select the most effective performance point of view and the way. 3. Trademark strategy. In the advertising, a trademark publicity is often occupies an extremely important position.Because people buy life data, especially consumer goods, often only knowledge trademark. In the rapidly developing society, new advertising strategies are made continually. Modern advertising strategy can be divided into quantity strategy and quality strategy two aspects. The former focuses on the form, and the latter focuses on the content. 1. The quantity strategy: Mainly refers to the number of advertising themes and objectives, how much the screen image and text, advertising appear amount and frequency, etc. 2. Quality strategy: The object of advertising is the consumer.Only to obtain the trust of consumers, advertising is easy to achieve efficiency, honest, objective, and truthful advertising to attract consumers. The five strategies are usually to use in advertising industry. It is so popular in advertising industry, how to use it better is the key of success. Making advertising strategy should be based on the general demand of target market, and should carefully analyse and research products or enterprise information, market details, consumer information, and relevant data of environment.Based on these study and data to make multiple plans, and compare with each other much times. Only in this way, the correct, scientific, creative advertising strategy is able to be made. Conclusion & Summary The emergence of commodity trade has created advertising industry, and with the development of the business, advertising industry has becomes a complex industry, a successful advertising need several industries to cooperate, such as design industry, media industry and business etc. It appears everywhere in our daily life.In the essay, three main questions are analysed: what is the relationship between the marketing and advertising, advertising management and adverti sing strategy. From the analysis to three questions, we can see the development of advertising. Through research the relationship, people know the advertising industry become more and more influent in the marketing. Studying advertising management, citizens recognize that the advertising industry is more regular and healthier. Analysing the advertising strategy, advertising has a clear direction. These are performance of advertising developing.However, advertising industry has some problem in the process of rapid development, such as deceptive advertising. These problems might be solved through the new method of advertising management or new advertising strategy in the future. Advertising is never-ending pursuit to excellence. Just like a famous advertiser said: â€Å"There is no such thing as a permanent advertising success† (Leo Burnett, 1891—1971) In the modern society, there is a rat race in every industry, advertising industry is without exception. How to compete with each other in the industry and what strategies will be used in the competition.Thus advertising compete will be focus in the following essay. Reference: American Heritage Dictionary of the English Language, 4th Ed. (2000), New York: Houghton Mifflin Company. Bendinger, Bruce (1993), Copy Work Shop Work Book, Chicago, IL: The Copy Workshop. Bradley, John P. , Leo F. Daniels, and Thomas C. 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