Advertising Management Chapter 5

Chapter Overview Advertising management Choosing an advertising agency Advertising campaign management Communications market analysis Advertising goals Advertising budget Media selection Creative brief

F I G U R E 5 . 1 IMC Overview 5-3

Advertising Management Evaluate role of advertising in IMC program. Select in-house or external agency. Develop advertising management strategy. Develop creative brief.

Money Spent on Media 75% - Media buys 15% - Creative work (agency) 10% - Ad production 5-5

In-House or Advertising Agency Decision Criteria The size of the account The media budget Objectivity Product complexity Creative ability

Boutique ------------------ Full-service External Agencies Boutique ------------------ Full-service Advertising agencies Media service companies Direct marketing agencies Consumer and trade promotion specialists Public relations firms

Whole Egg Theory New trend in advertising Young and Rubicam Ad Agency Total success in the marketplace Integration of marketing approach.

Conflicts of Interest Leo Burnett Co. agencies do not serve competing firms. Year Obtained Company Industry Account General Motors Automobile 1971 Hallmark Greeting cards 1988 Kellogg’s Cereal 1949 VISA Credit cards 1979 McDonald’s Fast food 1981 Allstate Insurance 1957 Gain Detergent 2000 Source: www.leoburnett.com. 5-9

Global Reach Grey Worldwide Advertising # of Year Obtained Company Countries Account Sara Lee 21 1993 Kraft Foods North America 2002 Volkswagen 15 1998 3M Corporation 14 1984 Coca-Cola 6 2004 Cannon 5 1976 Playtex North America 1968 Toshiba 16 2007 Source: www.grey.com. 5-10

Choosing an Agency Set goals. Select process and criteria. Screen initial list of applicants. Request client references. Reduce list to 2-3 viable agencies. Request creative pitch. Select agency.

Evaluation Criteria Selecting Advertising Agency Size of agency Relevant experience Conflicts of interest Creative reputation Product capabilities Media purchasing capabilities Other services available Client retention rates Personal chemistry

Advertising Planning and Research General pre-planning input Product specific-research Major selling idea Qualitative research Anthropology Sociology Psychology Value and lifestyle model (VALS)

Key Advertising Personnel Client Marketing Manager Client Marketing Manager Client Marketing Manager Account Executive Media Buyers & Planners Creative Director Traffic Manager Creative Creative Creative Creative 5-14

Steps in Advertising Campaign Management Review communication market analysis. Establish advertising portion of IMC objectives. Review advertising budget. Select media. Prepare creative brief.

1. Communication Market Analysis Review Competitors Opportunities Target markets Customers Product positioning

2. Advertising Goals To build brand image To inform To persuade Top of mind First choice To inform To persuade To support other marketing efforts To encourage action

3. Advertising Budget Manner of Distribution: Continuous schedule Flighting schedule Pulsating schedule

Left – Right Brain Ads “Left brain” advertisement Logical, rational side of brain Manages numbers, letters, words, and concepts Rational appeal “Right-brain” advertisement Emotional side of brain Manages abstract ideas, images, and feelings Emotional appeal

Creative Brief What is . . . The objective The target audience The message theme The support The constraints

The Support The support claims highlighted in this advertisement is that MicroThins are: 30% thinner 40% lighter 4 times more scratch resistant 10 times more impact resistant 99.9% UV protection Anti-reflective 5-21

Creative Brief - Del Monte The Objective – increase awareness of the smaller-size cans with pull-top lid. Target Audience – senior citizens, especially those that live alone and suffer from arthritis. Message Theme – the new cans not only contain a smaller portion but are easier to open. Support – 30¢ intro coupon to encourage usage. Constraints – copyright logo, toll free #, Web site, legal requirements of a coupon, and what is meant by a small serving. 5-22

Del Monte Advertisement Based on the Creative Brief in the previous slide. 5-23