Advertising’s Role in IMC Part 1: Foundations Chapter 2 Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Key Points Define the role of advertising within IMC Explain how the four key concepts in IMC relate to advertising Identify the key players in IMC and how the organization of the industry affects advertising List and explain the six critical steps in the IMC process Summarize the structure of the advertising agency industry Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Chapter Outline Roles of ad on IMC Marketing Mix & IMC Tools What is Marketing? The Key Players and Markets The Marketing Process How Agencies Work Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Marketing Mix Product design, Branding Maintenance, packaging Product Cost, Profit, value expectation Price Place Wholesaler, retailer, transporter, intermediary Advertising, Public Relations, Sales promotion, Personal selling, Direct marketing, Point of Purchase Packaging Promotion Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

Marketing Mix (4ps) & IMC tools Integrated Marketing communication (IMC) is the practice of unifying all marketing communication tools  consistent, persuasive message promoting co.’s goals Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice THE KEY PLAYERS: find out the IMC tools that Kenzo uses. Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

FUNCTIONS OF ADVERTISING Advertising - basic functions: Builds awareness of products & brands Creates a brand image Provides product & brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases & brand experiences Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice TYPES OF ADVERTISING 9 major types of advertising: Brand Advertising - most visible Long-term brand identity & image Use humor – eg Visa Gold (Exhibit 1.7) Mass target (national & international) Retail or Local Advertising Retail: Message – products in area Objectives - stimulate store traffic & distinctive image for retailer Local Retailer/manufacturer/distributor - offers products - restricted geographic area Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Brand Ad GUCCI LOUIS VUITTON PRADA FENDI CASIO ROLEX TAG HEUER CHARRIOL PANASONIC TOSHIBA LG MITSUBISHI MERCEDES BENZ HONDA NISSAN DIESEL NIKE ADDIDAS LEVI’S LEE BLACKBERRY MOTOROLA IPHONE S& P SWENSEN MK etc. Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice TYPES OF ADVERTISING Political Advertising Politicians - vote for them or their ideas Direct-Response Advertising Use any medium Message - stimulate sale directly Telephone/mail response - product delivered direct Evolution of the Internet - advertising medium Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice TYPES OF ADVERTISING Business-to-Business Advertising Directed at retailers, wholesalers & distributors Most business advertising in publications or professional journals Institutional Advertising – corporate advertising Establish corporate identity or win public over to its point of view Eg: Nike - reinforce brand image - ad campaign for the Paralympics (Exhibit 1.8) Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice TYPES OF ADVERTISING Nonprofit Advertising Not-for-profit organizations - charities - advertise for customers, members, volunteers, donations Public Service Advertising Public service announcements PSA Message - good cause - eg stop drunk driving Ad creation, space & time - free of charge Interactive Advertising Individual consumers - access to computer & Internet Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

WHAT MAKES AN AD EFFECTIVE Ad that creates the impact (goal oriented) 2 levels 1) relevant message that catches attention, interests, remains in memory 2) ad achieves marketing objective ????AD wins the award???? Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice What is Marketing? The way a product is designed, tested, produced, branded, packaged, priced, distributed, and promoted A process to satisfy consumer needs & wants - provide goods & services Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

Key Concepts in Marketing 1.MARKETING CONCEPT: CUSTOMER FOCUS Marketing:1) identify the needs & wants 2) develop the product Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

Key Concepts in Marketing 2.CONCEPT OF EXCHANGE Marketing: economic exchange: exchange of product (goods and services, ideas) for something of value Advertising: information exchange Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

Key Concepts in Marketing 3. CONCEPT OF BRANDING Marketing: Branding: the process of creating special meaning for a product to make the product distinctive Brand Image ( special meaning): a result of branding Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

Key Concepts in Marketing 4. CONCEPT OF ADDED VALUE Marketing: add value to 4p’s (product, price, place, promotion) e.g. more feature to the product, lower price, more convenient to buy Advertising: branding, value e.g. Louis Vuitton: Luxury, exclusive Volvo: safety, competent, secure Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

The Key Players and Markets The marketer -The organization, company, or manufacturer producing the product and offering it for sale -The advertiser or client (from the agency’s point of view) Suppliers and vendors Other companies that manufacture the materials and ingredients used in producing the product Distributors and retailers Various companies that are involved in moving a product from its manufacturer to the buyer Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice What is Market? General definition Place where the exchange between buyer and seller took place Marketing Definition A particular type of buyer e.g. youth market, motorcycle market Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Types of Market Consumer People who buy products for household or personal use Business-to-business (Industrial) is made of Company that buy product to use in their own business or in making other products e.g. factory Institutional is made up of non-profit and profit organization which provides product for the benefit of society e.g. school, university Channel is made up of reseller or intermediary - retailers, wholesalers, distributor which buy product for resell e.g. Department Store, hypermarket Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Examples Students bought jeans, sneakers, pizza, textbooks, computer ABC Company bought computer for billing and inventory control University bought furniture, cleaning supplies, computer, office supplies Tesco Lotus bought the truck for transporting purpose. Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice The Marketing Process Key strategic Directions Conduct research and develop a situation analysis Set objectives for the marketing effort Assess consumer needs and wants, segment the market into groups and target specified markets Differentiate and position the product Develop the marketing mix strategy Implement the plan Evaluate the effectiveness of the strategy Segmentation Target market Differentiation Positioning Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Terms in Marketing Product – services, ideas & goods Product category - classification assigned to product e.g. Toyota, Honda automobile category Rolex, Casio wrist watch category Target market - consumers – potential customers for goods & services Brand: distinguish identity that makes the product different from other competitors Wells, Moriarty, Burnett & Lwin ADVERTISING Principles and Effective IMC Practice 1-24

Full-Service Agencies How Agencies Work Specialized Agencies Specialize in certain functions, audiences, industries or markets Creative boutique Media-buying services Full-Service Agencies Include the four major staff functions Account management Creative services Media planning and buying Account planning Also have accounting, traffic, production, and HR departments Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice How Agencies Work Account Management Acts as a liaison between the client and the agency Responsible for interpreting the client’s marketing strategy Focuses on research & strategy e.g. Account Director, Management Supervisor, Account Supervisor, Account Executive Creative Development People who write People who design ideas for ads and commercials People who convert these ideas into commercials e.g. creative, copywriter,art director Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

Media Planning/Buying How Agencies Work Media Planning/Buying Recommends to the client the most efficient means of delivering the message Responsible for buying, planning, and research e.g. media planner, media buyer Account Planning Gathers all information on the market and consumers and acts as the voice of the consumer Focuses on the planning Prepares comprehensive recommendations e.g. strategy planner Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

Internal Agency Services How Agencies Work Internal Agency Services Traffic department Print production department Revenues and Profits Commission (percentage of the media cost) e.g. 15% Fee (hourly fee/ rate) Retainer (monthly or yearly) <-- amt of work+hourly rate Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Top Agencies Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice

ADVERTISING Principles and Effective IMC Practice Homework Each group brings ONE example of ethical/unethical ad Wells, Moriarty, Burnett & Lwin - Xth Edition ADVERTISING Principles and Effective IMC Practice