Advertising Management 6 Chapter Six Advertising Management

6 Perfect Pushup Alan Mills The Perfect Pushup Navy Seal Functional Training The Perfect Pushup Created the BODYREV company Infomercials Buzz marketing Advertising campaign Co-op advertising www.bodyrev.com

Advertising Management 6 Advertising Management 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 6 . 1 Overview of IMC

F I G U R E 6 . 2 Advertising Design Overview

Overview of Advertising Management Review the company’s activities in light of advertising management. Select in-house or external advertising agency. Develop an advertising campaign management strategy. Develop a Creative Brief.

In-House vs. Advertising Agency Decision Variables The size of the account The media budget Objectivity Product complexity Creative ability

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

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

Whole Egg Theory

Advertisement for Ogilvy & Mather Advertising

Select process and criteria. Screen initial list of applicants. F I G U R E 6 . 3 Steps in Selecting an Advertising Agency Set goals. Select process and criteria. Screen initial list of applicants. Request client references. Reduce list to two or three viable agencies. Request creative pitch. Select agency.

F I G U R E 6 . 4 Size of the agency Relevant experience of the agency Evaluation Criteria in Choosing an Ad Agency Size of the agency Relevant experience of the agency Conflicts of interest Creative reputation and capabilities Production capabilities Media purchasing capabilities Other services available Client retention rates Personal chemistry

Leo Burnett Co. Year Obtained Company Industry Account Conflict of interest means 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

Grey Worldwide Advertising Number 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

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

Click to play clip from Strawberry Frog: Inside an Advertising Agency Advertising Planning and Research at Strawberry Frog Advertising Agency Click to play clip from Strawberry Frog: Inside an Advertising Agency VIDEO

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

Angela Talley of DDB Worldwide discusses the work of the creative team in advertising production. Click picture to play movie.

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

Promotions Opportunity Analysis (From Chapter 5) Communication Market Analysis Competitors Opportunities Target markets Customers Product positioning Media usage habits of the target market. Media used by the competition

F I G U R E 6 . 5 Advertising Goals To build brand image “Top of mind” “First choice” To inform To persuade To support other marketing efforts To encourage action

In terms of soup, Campbell Soup ranks the highest in “top of mind” as well as “top choice.” As a result of this brand image, they enjoy a 43% market share in the soup industry.

Example of Persuasion

Advertising Budget Manner of Distribution Continuous schedule Flighting schedule Pulsating schedule

The objective The target audience The message theme The support F I G U R E 6. 6 The Creative Brief The objective The target audience The message theme The support The constraints

The Objective An advertisement for Bic designed to enhance the brand’s image.

The Target Market The target market for this ad is females, 13-30, who enjoy sports and have an active life style.

The Message Theme The message theme of this milk advertisement was that milk will provide calcium. The calcium will provide the customer with benefit of strong bones.

The Message Theme “Left brain” advertisement Logical, rational side of brain Manages numbers, letters, words, and concepts Use rational appeal “Right-brain” advertisement Emotional side of brain Manages abstract ideas, images, and feelings Use emotional appeal

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

Creative Brief What is the objective? Who is the target market? After listening to this radio ad, identify the various components of the creative brief. Click on speaker to play ad. What is the objective? Who is the target market? What is the message theme? What support is given? What are the constraints?

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 cent introductory coupon to encourage usage. Constraints – copyright logo, toll free number, Web site address, legal requirements of a coupon, and what is meant by a small serving.

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