🏭American Business History Unit 10 – Consumer Culture & Marketing in US History

Key Concepts & Definitions

• Consumer culture the attitudes, behaviors, and beliefs shared by consumers in a society that are influenced by the consumption of goods and services
• Marketing the process of promoting, selling, and distributing products or services to consumers
• Mass production the manufacturing of large quantities of standardized products using assembly lines and specialized machinery
• Advertising the practice of promoting products, services, or ideas to influence consumer behavior and increase sales
• Brand identity the unique set of associations and perceptions that a consumer has about a particular brand
• Market segmentation the process of dividing a market into distinct groups of consumers with similar needs, characteristics, or behaviors
• Consumer behavior the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants
• Conspicuous consumption the practice of purchasing expensive or luxury goods to display wealth and social status

Historical Context

• Industrialization in the late 19th and early 20th centuries led to mass production and increased availability of consumer goods
• Rise of department stores (Macy's, Marshall Field's) in the mid-19th century changed the shopping experience and encouraged consumption
• Urbanization and the growth of cities created new markets for consumer goods and services
• Increased disposable income and leisure time in the early 20th century fueled the growth of consumer culture
• World War I and World War II had significant impacts on consumer culture and marketing practices
  • Rationing and shortages during wartime led to changes in consumer behavior
  • Post-war economic boom and the rise of the middle class expanded consumer markets
• Great Depression of the 1930s led to a shift in consumer attitudes and a focus on value and frugality
• Post-World War II economic expansion and the baby boom generation drove the growth of consumer culture in the 1950s and 1960s

Evolution of Consumer Culture

• Late 19th century the emergence of mass-produced goods and the rise of department stores
• Early 20th century the growth of advertising and the development of brand identities
• 1920s the rise of installment buying and the expansion of consumer credit
  • Allowed consumers to purchase big-ticket items (automobiles, appliances) on credit
• 1930s a shift towards value and frugality during the Great Depression
• 1940s wartime rationing and the influence of patriotism on consumer behavior
• 1950s post-war economic boom, the rise of suburbia, and the growth of television advertising
  • Increased emphasis on convenience and time-saving products (frozen foods, appliances)
• 1960s the rise of youth culture, counterculture, and the influence of social movements on consumer behavior
• 1970s and 1980s the growth of cable television, targeted marketing, and the rise of brand loyalty
• 1990s and 2000s the impact of the internet, e-commerce, and social media on consumer culture

Marketing Strategies Through Time

• Late 19th century the use of trade cards, posters, and print advertisements to promote products
• Early 20th century the rise of radio advertising and the use of jingles and slogans
  • Sponsorship of radio programs by advertisers (soap operas)
• 1920s the growth of outdoor advertising (billboards) and the use of celebrity endorsements
• 1930s the use of contests, giveaways, and premiums to attract consumers during the Great Depression
• 1940s the influence of wartime propaganda and patriotic themes in advertising
• 1950s the dominance of television advertising and the use of animated characters (Tony the Tiger, Mr. Clean)
  • The rise of market segmentation and targeted advertising based on demographics
• 1960s the use of psychographic segmentation and lifestyle marketing
  • The influence of social movements (civil rights, women's liberation) on advertising themes
• 1970s and 1980s the growth of direct marketing, telemarketing, and infomercials
• 1990s and 2000s the rise of internet marketing, search engine optimization, and social media marketing

Influential Figures & Companies

• Rowland Hussey Macy founder of Macy's department store, pioneered the concept of the modern department store
• Marshall Field founder of Marshall Field's department store, known for exceptional customer service and innovative merchandising
• Henry Ford pioneer of mass production and the assembly line, made automobiles more affordable and accessible
• William Wrigley Jr. founder of the Wm. Wrigley Jr. Company, used innovative marketing strategies to promote chewing gum
• Leo Burnett influential advertising executive, created iconic advertising campaigns (Marlboro Man, Jolly Green Giant)
• David Ogilvy considered the "Father of Advertising," pioneered the use of research and data in advertising
• Ray Kroc businessman who expanded McDonald's into a global fast-food chain, revolutionizing the restaurant industry
• Sam Walton founder of Walmart, pioneered the concept of discount retailing and transformed the retail landscape

Technological Impacts

• Mass production techniques (assembly lines, interchangeable parts) enabled the production of affordable consumer goods
• Improvements in transportation (railroads, automobiles) facilitated the distribution of goods and the growth of national brands
• Radio technology in the 1920s provided a new medium for advertising and the sponsorship of programs
• Television in the 1950s became the dominant medium for advertising and had a profound impact on consumer culture
  • The rise of television advertising led to the growth of brand identities and lifestyle marketing
• Computers and the internet in the 1990s and 2000s transformed marketing and consumer behavior
  • The growth of e-commerce and online shopping changed the retail landscape
  • Social media platforms (Facebook, Twitter) enabled new forms of consumer engagement and word-of-mouth marketing
• Mobile technology and smartphones in the 2010s led to the rise of mobile commerce and location-based marketing
• Advancements in data analytics and artificial intelligence are enabling more personalized and targeted marketing strategies

Social & Cultural Effects

• Consumer culture has shaped social norms, values, and aspirations, often promoting materialism and conspicuous consumption
• Advertising has influenced cultural attitudes towards gender roles, beauty standards, and lifestyle choices
  • The portrayal of women in advertising has evolved over time, reflecting changing social norms
• The rise of youth culture in the 1960s led to the growth of targeted marketing towards teenagers and young adults
• Social movements (civil rights, environmentalism) have influenced consumer behavior and led to the rise of socially conscious consumerism
• Globalization has led to the spread of American consumer culture and the rise of global brands
  • The influence of American consumer culture has been met with resistance in some countries
• Consumer culture has been criticized for promoting excessive consumption, waste, and environmental degradation
• The COVID-19 pandemic in 2020 has led to significant changes in consumer behavior and accelerated the growth of e-commerce

Case Studies & Examples

• The rise of Coca-Cola as a global brand through innovative marketing strategies (Santa Claus, Olympic sponsorships)
• The success of Nike's "Just Do It" campaign in the 1980s, which positioned the brand as a symbol of athletic achievement and personal empowerment
• The influence of the "Mad Men" era of advertising in the 1960s, which shaped cultural attitudes and consumer aspirations
• The impact of the Ford Model T on American consumer culture and the growth of the automobile industry
• The role of the Sears Roebuck catalog in the early 20th century, which made consumer goods accessible to rural populations
• The success of Apple's "Get a Mac" campaign in the 2000s, which positioned the brand as a symbol of creativity and innovation
• The influence of the "Got Milk?" campaign in the 1990s, which revitalized the dairy industry and became a cultural touchstone
• The impact of the COVID-19 pandemic on the retail industry, leading to the growth of e-commerce and the decline of brick-and-mortar stores