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1- 1. Part 1 Enduring Principles in Times of Turmoil 2-1.

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Presentation on theme: "1- 1. Part 1 Enduring Principles in Times of Turmoil 2-1."— Presentation transcript:

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2 Part 1 Enduring Principles in Times of Turmoil 2-1

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8 1. What is advertising, how has it evolved, and what does it do in modern times? 2. How have the key concepts of marketing communication developed over time? 3. How is the industry organized – key players, types of agencies, and jobs within agencies? 4. How is the practice of advertising changing? 1-8

9 Veni Vidi Vici 1- 9

10 The definition has evolved over time. It includes:  Identification ◦ Dating back to ancient times, advertising has identified a product and where it was sold. 1-10

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14 1- 14 Lincoln Cathedral-1300 A.D.

15  Information ◦ Advances in printing technology expanded literacy, making commercial messages available to the masses. 15

16  Persuasion ◦ With widespread marketing, focus expanded from hype to branding, and now includes both. 1-16

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20  “Advertising is a form of persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience), to provide information about products (goods, services, and ideas), and interpret the product features in terms of the customer’s wants and needs” 20

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22 Six basic attributes of advertising 1. Paid communication 2. Sponsor is identified 3. Can be one-way, two-way, multiple-way 4. Reaches a broad audience 5. Conveyed through mass media, interactive media, word of mouth 6. Seeks to inform or persuade 1-22

23 Advertising is a sponsored media message intended to persuade you to think, do, or buy something

24 Other tools in the promotional toolkit:  Merchandising  Publicity  Public relations  Direct-response  Event Marketing  Other specialties Together, these tools are known as marketing communication, or marcom. 1-24

25 The marketing and communication role  It transforms a product into a distinctive brand by creating an image, and sells stuff quick(er) Economic and societal roles  It works to create demand for brands and lower prices for consumers.  It shapes our self-image and sense of style through things we wear and use. 1-25

26 “Advertising generates cost efficiencies by increasing demand among large groups of people, resulting in higher levels of sales and ultimately, lower prices.” 1-26

27  Brand advertising ◦ Focused on long-term brand identity and image  Retail or local advertising ◦ Focused on selling merchandise in a geographical area  Direct-response advertising ◦ Tries to stimulate an immediate customer response 1-27

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30 1- 30 Retail

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33  Burger King 1- 33

34  Business-to-business advertising ◦ Sent from one business to another  Institutional advertising ◦ Establishes a corporate identity; attempts to win the public over to the organization’s point of view 1-34

35  Nonprofit advertising ◦ Used by not-for-profit organizations to reach customers, members, volunteers, and donors  Public service advertising ◦ Usually produced and run for free on behalf of a good cause 1-35

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37 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-37

38 The advertiser  The organization sponsoring the message  Likely to have a marketing team that initiates the advertising effort  Hires the advertising agency Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-38

39 The agency  Creates, produces, and distributes the message.  Employs experts who are passionate about their work.  Can negotiate the best media deals for clients. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-39

40 The media  Channels of communication that carry the message to the audience.  Many are large media conglomerates such as Time Warner and Viacom.  Mass media enables advertisers to reach many people with a single message in a cost-efficient way. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-40

41 Professional suppliers and consultants  Provide specialized services to advertisers and agencies.  Includes artists, writers, photographers, producers, printers, and other freelancers. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-41

42  Full-service agency ◦ Encompasses account management, creative services, media planning, and account planning.  In-house agency ◦ Is a part of the advertiser’s organization; helps to control costs and maintain control over brand image. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-42

43  Specialized agency ◦ Specializes in certain functions, audiences, industries or markets.  Creative boutique ◦ A small agency that works only on the creative execution of an idea or product.  Media buying service ◦ Specializes in the purchase of media for clients Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-43

44 The A-List of Advertising Agencies Here are a few of them: ◦ Crispin Porter + Bogusky: ◦ TBWA/Chiat/Day: ◦ Goodby, Silverstein & Partners: ◦ R/GA: ◦ Tribal DDB: Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-44

45  Agency networks ◦ Large conglomerations of agencies under a central ownership  Holding companies ◦ One or more agency networks, usually with multiple offices 1-45

46 The five main areas: 1. Account management 2. Account planning and research 3. Creative development and research 4. Media research, planning, and buying 5. Internal operations 1-46

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48 From three main sources: 1. Commissions: based on media billings. 2. Fees: based on an hourly rate or project. Also covers travel and various expenses. 3. Retainers: a regular amount billed each month, based on projected work. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-48

49 Two recent trends: 1. Based on performance: the agency is paid a percentage of the client’s sales or marketing budget. 2. Value billing: the agency is paid for its creative and strategic ideas rather than for executions and media placements. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-49

50 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-50

51  The days of pounding people with images, shoving them down their eyeballs are over.  Consumer-generated advertising creates valuable brand publicity.  Consumers are taking control of media and marketing through the Web and social media. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-51

52  Television is still a major player, but the number of cable channels has exploded.  Digital media has fragmented the media world with new, ever-changing forms.  Agencies must take a stronger leadership role in the development of brand strategy. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-52

53  Accountability: This has grown in importance over the past two decades.  Effectiveness: In tight economic times, it is more critical than ever to deliver results. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-53

54 What is effective ad? Answer: Effective ads deliver the message the advertiser intended, and consumers respond to as the advertiser hoped they would. Effectiveness is gauged according to predetermined objectives. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-54

55  Industry awards showcase the best in advertising and marketing communication.  The Effie Award is given for the most effective ads.  The Clio Award is based on creativity. As a class: check them out at: Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-55

56 Other advertising awards:  Canada’s Cassie Award  Cannes Lions Award  Silver Anvil Award Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-56

57 The first principle of IMC: “Everything communicates!” Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-57

58  This principle applies to all marketing communication: ◦ Media: print, broadcast, out-of-home, digital. ◦ Platforms: advertising, public relations, events and sponsorships, direct response.  All communications efforts are planned for maximum synergy. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-58

59 In Chapter 2, we will:  Explain the bigger picture of advertising and its role in marketing communication.  Explore new ways that agencies are working to interact with customers and cement brand relationships. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-59

60  Recorded consumer comments went viral on the BK website and on Youtube.  Burger King received about 20% of its media free.  This campaign was awarded a Gold Effie and a Grand Effie for delivering outstanding business results. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-60

61 Key lessons  This campaign demonstrates the power of a brand identity so strong that consumers will demand it.  Smart thinking can help you compete with competitors with bigger budgets. As a class: What others can you think of? Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-61


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