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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

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

30. 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