Sandra Moriarty Nancy Mitchell William Wells Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Part 1 Principle: Back to Basics Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

1. What is advertising, how has it evolved, and what does it do in modern times? 2. How is the industry organized – key players, types of agencies, and jobs within agencies? 3. Why and how is the practice of advertising changing? Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

“Advertising is a paid form of persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience), provide information about products (goods, services, and ideas), and interpret the product features in terms of the customer’s needs and wants.” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Identification (Awareness)  Inform  Persuade  Remind Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

1. Strategy The logic behind an advertisement stated in objectives that focus on areas such as sales, emotional appeal, or brand reputation. 2. Message The concept behind a message and how it is expressed based on consumer insights. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

3. Media Targets prospective buyers by matching their profiles to media audiences. 4. Evaluation Based on strategic objectives and professional standards Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Brand advertising ◦ Focused on long-term brand identity and image ◦ Comparative vs Noncomparative  Retail or local advertising ◦ Focused on selling merchandise in a geographical area  Direct-response advertising ◦ Tries to stimulate an immediate customer response Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Business-to-business advertising (B2B) ◦ Sent from one business to another  Institutional advertising ◦ Establishes a corporate identity; attempts to win the public over to the organization’s point of view Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Nonprofit advertising ◦ Used by not-for-profit organizations to reach customers, members, volunteers, and donors  Public service advertising ◦ Usually produced and run for free on behalf of a good cause  Specialized advertising ◦ Used to address specific areas such as health care, green marketing, international campaigns Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Comparative Advertising  “Indirect” ◦ “Leading cold medicines”

Comparative Advertising “Direct” ◦ Name the competitors ◦ be.com/watch?v=N vAyGyHKIbs&featur e=youtu.be be.com/watch?v=N vAyGyHKIbs&featur e=youtu.be ◦ be.com/watch?v=8 TnG7jyfoWI be.com/watch?v=8 TnG7jyfoWI

Retail Advertising

Local Advertising

Direct- Response

Direct-Response

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 pYYY pYYY Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Institutional  outube.com/w atch?v=zbS6w VR8ero outube.com/w atch?v=zbS6w VR8ero

Nonprofit Advertisng

Public Service (Public Service Announcement PSA)

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All advertising:  Demands creative, original messages.  Must be strategically sound, well executed.  Is delivered through some form of media. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Other tools in the promotional toolkit:  Publicity  Public relations  Direct-response  Specialties Together, these tools are known as marketing communication, or marcom. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The Organization  The message sponsor or advertiser  Likely to have a marketing team that initiates the advertising effort  Hires the advertising agency Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The Agency  Creates, produces, and distributes the messages.  Employs experts who are passionate about their work.  Can negotiate the best media deals for clients. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The Media  Channels of communication that deliver messages and engage audiences.  Many are large media conglomerates such as Time Warner and Viacom.  The mass media enable advertisers to reach many people with a single message in a cost- efficient manner. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Professional Suppliers and Consultants  Provide specialized services to advertisers and agencies.  Includes artists, writers, photographers, producers, printers, and vendors who supply user-generated content online Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Full-Service Agencies ◦ Encompasses account management, creative services, media planning, and account planning.  In-House Agencies ◦ Is a part of the advertiser’s organization; helps to control costs and maintain control over brand image. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The A-List of Advertising Agencies Here are a select few: ◦ McGarryBowen: ◦ Droga5: ◦ Razorfish: ◦ 72andSunny: ◦ Edelman: Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Specialized Agencies ◦ Specialize in certain functions, audiences, industries or markets.  Creative Boutiques ◦ Small agencies that work only on the creative execution of an idea or product.  Media-Buying Services ◦ Specialize in the purchase of media for clients Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Agency Networks and Holding Companies ◦ Large conglomerations of agencies under a central ownership ◦ One or more agency network, usually with multiple offices Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The five main areas: 1. Account management 2. Account planning and research 3. Creative development and research 4. Media research, planning, and buying 5. Internal operations Let’s take a look at each one…… Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Account management  This team acts as a liaison between the client and agency.  The account executive interprets the client’s marketing research, strategy for the agency. Account planning and research  This team gathers market intelligence and acts as the voice of the consumer.  Strategic specialists research consumers’ wants, needs and brand relationships. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Creative development and production  Includes copywriters, art directors, and producers. Media research, planning, and buying  This department provides research, planning, and buying services. Internal operations  Includes traffic, print production, finance, and human resources. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

From three main sources: 1. Commissions: based on media billings. 2. Fees: based on an hourly rate or project. Also covers travel and various expenses. 3. Retainers: A regular amount billed each month, based on projected work. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Two recent trends: 1. Based on performance: the agency is paid a percentage of the client’s sales or marketing budget. 2. Value billing: the agency is paid for its creative and strategic ideas rather than for executions and media placements. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 The days of pounding people with images, shoving them down their eyeballs are over.  Consumer-generated advertising creates valuable brand publicity.  Consumers have taken control of media and marketing through the Web and social media. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Television is still a major player, but the number of cable channels has exploded.  Digital media has fragmented the media world with new, ever-changing forms.  Agencies must take a stronger leadership role in the development of brand strategy. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Accountability: This has grown in importance over the past two decades.  Effectiveness: In tight economic times, it is more critical than ever to deliver results. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

What is an effective ad? Answer: Effective ads deliver the message the advertiser intended, and that consumers respond to as the advertiser hoped they would. Effectiveness is gauged according to predetermined objectives. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Industry awards showcase the best in advertising and marketing communication.  The Effie Award is given for the most effective ads.  The Clio Award is based on creativity. As a class: check them out at: Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Other advertising awards:  Canada’s Cassie Award  Cannes Lions Award  Silver Anvil Award Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

The first principle of IMC: “Everything communicates!” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 IMC is all about integration.  IMC is the primary tool of brand communication.  Brand messages must complement one another and present the same basic brand strategy. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

In Chapter 2, we will:  Explain the bigger picture of advertising and its role in marketing communication and marketing.  Explore new ways that agencies are working to interact with customers and cement brand relationships. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Old Spice generated excitement with guys who were not current customers and women who typically made most body wash purchases.  The “hunk” atop the horse captivated the audience – think “eye candy!” Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Key lessons  Old Spice used research to generate insights that drove the campaign.  They involved both men and women in the conversation about what a guy should smell like.  The campaign generated an incredible amount of free public relations and social media buzz. Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall