Advertising Management
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The document provides an overview of key concepts in advertising management, including: 1. It describes The Richards Group advertising agency and their approach to hiring and project management. 2. It outlines the chapter objectives which cover selecting advertising agencies, roles in agencies and companies, campaign management steps, advertising goals, budgets, and creative briefs. 3. It discusses factors to consider when deciding whether to use an in-house team or external agency, and the process for selecting an agency including setting goals, criteria, and creative pitches.
Advertising Management
- 1. Copyright ©2014 by Pearson Education 5-1 5 Chapter Five Advertising Management
- 2. Copyright ©2014 by Pearson Education 5-2 The Richards Group • Largest US independent agency • 650 marketing professionals • $1 billion annual billings • Stan Richards • “We sell the truth” • Prefers hiring new college graduates • Co-mingle disciplines • Interdisciplinary villages • When hired – strategic process • Success stories • Chick-fil-A • Motel 6 • Bridgestone – Super Bowl • The Home Depot 5
- 3. Copyright ©2014 by Pearson Education Chapter Objectives 1. What are the essential ingredients in advertising campaign management, including the role of advertising? 2. When should a company employee an external advertising agency rather than completing the work in- house? 3. How do companies choose advertising agencies? 4. What roles are played within advertising agencies and client companies? Advertising Management 5 5-3
- 4. Copyright ©2014 by Pearson Education Chapter Objectives 5. What steps are completed as part of advertising campaign management? 6. What are the primary goals of advertising? 7. What are the key elements of an advertising budget? 8. What are the issues in the media-selection process? 9. How does a creative brief facilitate effective advertising? Advertising Management 5 5-4
- 5. Copyright ©2014 by Pearson Education 5-5 Advertising Management • Advertising management • Choosing an advertising agency • Roles of advertising personnel • Advertising campaign management • Advertising research • Advertising goals • Advertising Budget • The Creative Brief 5 Chapter Overview
- 6. Copyright ©2014 by Pearson Education 5-6 Advertising Terms • Message theme • Leverage point • Appeal • Executional framework
- 7. Copyright ©2014 by Pearson Education 5-7 F I G U R E 5 . 2 Advertising Design Overview Advertising Design Advertising Strategy Chapter 5 Executional Framework Chapter 7 Appeals Chapter 6 Message Strategy Chapter 7 Media Selection Chapter 8
- 8. Copyright ©2014 by Pearson Education 5-8 Overview Advertising Management 1. Review role of advertising in IMC effort 2. Select in-house or external advertising agency 3. Develop advertising campaign management strategy 4. Complete creative brief
- 9. Copyright ©2014 by Pearson Education 5-9 Advertising and IMC Process • Advertising still major component • Role of advertising varies • Business-to-business sector • Supporting role • Consumer sector • Primary communication vehicle
- 10. Copyright ©2014 by Pearson Education 5-10 • Lower costs • Consistent brand message • Better understanding of product and mission • Faster ad production • Works closer with CEO • Lower turnover rate in the creative team • Reduce costs • Greater expertise • Outsider’s perspective • Access to top talent Source: Adapted from Rupal Parekh, “Thinking of Pulling a CareerBuilder? Pros and Cons of Bringing an Account In-House,” Advertising Age, http://adage.com/print?article_id136701, May 18, 2009 Advantages of In-House Advantages of Outside Agency F I G U R E 5 . 4 Advantages of In-House versus Outside Agency
- 11. Copyright ©2014 by Pearson Education 5-11 Budget Allocation Considerations In-House vs. Advertising Agency 75-15-10 Rule 75% - Media buys 15% - Creative work (agency) 10% - Ad production Size of account should match size of agency
- 12. Crowd Sourcing In-House vs. Advertising Agency • New alternative • Outsource creative • Doritos • Harley Davidson • Overall cost not lower • Advantages • Consumers involved • Generate buzz Copyright ©2014 by Pearson Education 5-12
- 13. External Advertising Agencies Copyright ©2014 by Pearson Education 5-13 • Advertising agencies • Media service companies • Direct marketing agencies • Consumer and trade promotion specialists • Online and digital agencies • Social media agencies • Public relations agencies Boutique Full-Service
- 14. Copyright ©2014 by Pearson Education 5-14 F I G U R E 5 . 6 Steps in Selecting an Advertising Agency 1. Set goals 2. Select process and criteria 3. Screen initial list of applicants 4. Reduce list to two or three viable agencies 5. Request creative pitch
- 15. Choosing an Agency Copyright ©2014 by Pearson Education 5-15 Goal Setting • Set before contacting agencies • Provides direction • Reduces biases
- 16. Copyright ©2014 by Pearson Education 5-16 • 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 F I G U R E 5 . 7 Evaluation Criteria in Choosing an Ad Agency
- 17. Creative Pitch • 2 to 3 finalists • Formal presentation shootout • Specific problem/situation • Expensive for agencies Copyright ©2014 by Pearson Education 5-17
- 18. Copyright ©2014 by Pearson Education 5-18 Key Advertising Personnel Client Marketing Manager Account Planner Client Marketing Manager Client Marketing Manager Creative Creative Creative Creative Creative Director Traffic Manager Media Buyers & Planners Account Executive
- 19. Role of Quality Communications • Survey of senior executives • 30% of staff’s time wasted • 75% of agencies go through significant changes in direction • Agencies deal with multiple people • Clients want good value, results • Stewardship reports Copyright ©2014 by Pearson Education 5-19
- 20. Copyright ©2014 by Pearson Education 5-20 Advertising Campaign Management 1. Conduct and review advertising research 2. Establish advertising objectives 3. Review advertising budget 4. Select media 5. Prepare creative brief
- 21. Copyright ©2014 by Pearson Education 5-21 Advertising Research • Understand customers • Purchase benefits, not attributes • Product-specific research • Key selling points • Desirable features • Consumer-oriented research • Context of product use • Anthropological approach • Sociological analysis • Psychological motives • Focus groups
- 22. Motel 6 and The Richards Group • Motel 6 client for 24 years • Insight through qualitative research • Focus group – Account planner • Round 1 – no Motel 6 • Round 2 – no Motel 6 • Finally, Motel 6 mentioned • Save money • Benefit of frugality • No difference once light is out Copyright ©2014 by Pearson Education 5-22
- 23. Copyright ©2014 by Pearson Education 5-23 • To build brand image • To inform • To persuade • To support other marketing efforts • To encourage action F I G U R E 5 . 9 Advertising Goals
- 24. Build Brand Awareness Advertising Goals • Brand image begins with awareness • Consumers recognize brand • Business-to-business • Especially important in modified rebuy situations • Successful brands possess • Top-of-mind • Top choice • Brand equity leads to top-of-mind & top choice Copyright ©2014 by Pearson Education 5-24
- 25. Provide Information Advertising Goals Copyright ©2014 by Pearson Education 5-25
- 26. Persuasion Advertising Goals Copyright ©2014 by Pearson Education 5-26
- 27. Support Marketing Efforts Advertising Goals • Consumer promotions • Retailers • Special sales • Promotional campaign Copyright ©2014 by Pearson Education 5-27
- 28. Encouraging Action Advertising Goals • Behavioral goals • Encourage some type of action • Inquiry • Access Web site • Visit retail outlet • Send e-mail or telephone • Business-to-business Copyright ©2014 by Pearson Education 5-28
- 29. Copyright ©2014 by Pearson Education 5-29 The Advertising Budget Manner of Distribution • Pulsating schedule • Bursts of intensity • Flighting schedule • Spending at select times • Continuous schedule • Keep brand before consumers
- 30. Copyright ©2014 by Pearson Education 5-30 Media Selection • Media-usage habits of target market • Audience characteristics of media • Business-to-business media • Earlier involvement of media companies
- 31. Copyright ©2014 by Pearson Education 5-31 • The objective • The target audience • The message theme • The support • The constraints F I G U R E 5. 10 The Creative Brief
- 32. Copyright ©2014 by Pearson Education 5-32 The Objective An advertisement for Sub-Zero designed to enhance the brand’s image.
- 33. Copyright ©2014 by Pearson Education 5-33 The Target Audience The target market for this ad is females, 13-30, who enjoy sports and have an active life style.
- 34. Copyright ©2014 by Pearson Education 5-34 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.
- 35. Copyright ©2014 by Pearson Education 5-35 The Message Theme • Unique selling point • “Left brain” advertisement • Logical, rational side of brain • Manages numbers, letters, words, concepts • Use rational appeal • “Right-brain” advertisement • Emotional side of brain • Manages abstract ideas, images, feelings • Use emotional appeal
- 36. Copyright ©2014 by Pearson Education 5-36 The Support The support claims in this ad MicroThins are: • 30% thinner • 40% lighter • 4 times more scratch resistant • 10 times more impact resistant • 99.9% UV protection • Anti-reflective
- 37. The Constraints • Legal and mandatory restrictions • Constraints • Disclaimers Copyright ©2014 by Pearson Education 5-37
- 38. Del Monte Advertisement • The objective • The target audience • The message theme • The support • The constraints Copyright ©2014 by Pearson Education 5-38 What is the Creative Brief?
- 39. Copyright ©2014 by Pearson Education 5-39 Creative Brief Del Monte • The Objective – increase awareness of the smaller-size cans with pull-top lid • Target Audience – senior citizens, especially those who live alone and suffer from arthritis • Message Theme – the new cans contain a smaller portion and 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
- 40. Copyright ©2014 by Pearson Education 5-40 International Implications • 62% of advertising budgets spent outside of U.S. • Two major differences • Process of agency selection • Preparation of international advertising campaigns • Preplanning research varies • Understanding of languages and cultures • Media selection varies
- 41. Copyright ©2014 by Pearson Education 5-41 F I G U R E 5. 11 Non-U.S. Ad Budgets and Sales Revenues for Major Corporations 83.5% 85.6% 58.7% 58.8% 58.6% 65.4% 74.9% 76.7% 58.7% 48.8% 65.7% 60.7% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Coca-Cola Colgate-Palmolive Ford Mattel McDonald's Procter & Gamble Ad Budget Revenue Source: Adapted from Laurel Wentz and Bradley Johnson, “Top 100 Global Advertisers Heap Their Spending Abroad,” Advertising Age, http://adage.com/print?article_id=140723, November 30, 2009.
- 42. Ouachita Independent Bank (Part 5) Copyright ©2014 by Pearson Education 3-42 Selection of Advertising Agency Newcomer Morris and Young ClowBaack – Integrated Campaigns in Action Local agency Size matches with firm Relevant experience with financial institutions No conflict of interest Creative reputation – winning of awards Capability to product multi-media advertisements Good chemistry
- 43. Ouachita Independent Bank (Part 5) Copyright ©2014 by Pearson Education 3-43 Advertising Goal Newcomer Morris and Young ClowBaack – Integrated Campaigns in Action To persuade
- 44. Ouachita Independent Bank (Part 5) Copyright ©2014 by Pearson Education 3-44 ClowBaack – Integrated Campaigns in Action • The Objective – to persuade • Target Audience – Thinkers, achievers, believers (VALS2) • Message Theme – local bank, local trust • Support – local bank with secure history and strong financial position. • Constraints – FDIC logo and insurance statement, OIB logo, and website URL on all ads. Creative Brief Newcomer Morris and Young
- 45. Copyright ©2014 by Pearson Education 2-45 Integrated Campaigns in Action