In the Context of the Evolution of Advertising in America

question 52

Essay

In the context of the evolution of advertising in America, describe the significant events of the industrial age.
A.
B.Palmer set up business in Philadelphia in 1841.In 1869, Francis Ayer formed an ad agency in Philadelphia and named it after his father.N.W.Ayer & Sons was the first agency to charge a commission based on the "net cost of space" and the first to conduct a formal market survey.The telegraph, telephone, typewriter, phonograph, and, later, motion pictures all let people communicate as never before.With the advent of public schooling, the nation reached an unparalleled 90 percent literacy rate.Manufacturers gained a large reading public that could understand print ads.The United States thus entered the 20th century as a great industrial state with a national marketing system propelled by advertising.With the end of World War I, the modern period in advertising emerged.The manufacturers changed their focus from a production orientation to a marketing orientation.They dedicated themselves to new product development, strengthened their own sales forces, packaged and branded their products, and engaged in heavy national brand advertising.In the 1920s, the era of salesmanship had arrived and its bible was Scientific Advertising, written by the legendary copywriter Claude Hopkins at Albert Lasker's agency, Lord & Thomas.Radio was born at about the same time and rapidly became a powerful new advertising medium.On October 29, 1929, the stock market crashed, the Great Depression began, and advertising expenditures plummeted.In the face of declining sales and corporate budget cutting, the advertising industry needed to improve its effectiveness.It turned to research.Daniel Starch,
C.Nielsen, and George Gallup founded research groups to study consumer attitudes and preferences.By providing information on public opinion, the performance of ad messages, and sales of advertised products, these companies started the marketing research industry.

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Definitions:

Redemption

The process of paying off or buying back a security, such as a bond, at its face value or at a specified price before maturity.

Effective-Interest Amortization

A method of calculating the amortized cost of a bond or loan based on the periodic interest rate applied to the carrying amount, resulting in an equal interest expense over the period.

Bonds

Fixed-income investments representing loans to borrowers such as corporations or governments, paid back with interest over time.

Interest Accrual

The process of recognizing interest expense or interest income that has been earned but not yet paid or received.