1. © 2007 by Prentice Hall 5-1 Marketing Power What age are most of the females in advertisements you have noticed? Do you think the advertising industry is reluctant to use older women in ads? Why or why not? What type of products should older women be used to promote? For what products should they not be used? Do you think the age of the person in an ad makes a difference? If so, why and to whom? Discussion Slide 5

2. © 2007 by Prentice Hall 5-2 Advertising Management Advertising management Choosing an advertising agency Advertising campaign management Communications market analysis Advertising objectives Advertising budget Media selection Creative brief 5 Chapter Overview

3. © 2007 by Prentice Hall 5-3 F I G U R E 5. 1 An IMC Plan

4. © 2007 by Prentice Hall 5-4 F I G U R E 5. 2 Advertising Overview

5. © 2007 by Prentice Hall 5-5 Overview of Advertising Management Evaluate role of advertising in IMC program. Select in-house or external advertising agency. Develop an advertising management strategy. Develop a Creative Brief.

6. © 2007 by Prentice Hall 5-6 In-House vs Advertising Agency Decision Variables The size of the account The media budget Objectivity Product complexity Creative ability

7. © 2007 by Prentice Hall 5-7 External Agencies Advertising agencies Media service companies Direct marketing agencies Consumer and trade promotion specialists Public relations firms BoutiqueFull-Service

8. © 2007 by Prentice Hall 5-8 Whole Egg Theory

9. © 2007 by Prentice Hall 5-9 Top Ten World Advertising Agencies Source: http://www.adage.com/, February 12, 2002.http://www.adage.com/ McCann-Erickson Worldwide581348 DDB Worldwide40 721 Grey Advertising45 700 Ogilvy & Mather Worldwide33 672 EURO RSCG Worldwide29 651 J.Walter Thompson Co.27 627 BBDO Worldwide32 597 Y & R Advertising27 517 Publicis Communication23 512 D’Arcy Masius Benton & Bowles21 452 Agency Markets Clients

10. © 2007 by Prentice Hall 5-10 Advertisement for Ogilvy & Mather Advertising

11. © 2007 by Prentice Hall 5-11 Advertising Agencies of Coca-Cola Source: http://www.adage.com/ Bates Worldwide D’Arcy Masius Benton & Bowles EURO RSCG Worldwide Leo Burnett Co. Lowe & Partners Worldwide McCann-Erickson Worldwide Publicis Communication

12. © 2007 by Prentice Hall 5-12 F I G U R E 5. 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.

13. © 2007 by Prentice Hall 5-13 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. 4 Evaluation Criteria in Choosing an Ad Agency

14. © 2007 by Prentice Hall 5-14  Bozell Advertising Agency handles the milk industry.  What other clients does Bozell have? (Notice Bozell only serves one firm per industry) http://www.bozell.com

15. © 2007 by Prentice Hall 5-15 Leo Burnett Co. Conflict of interest means agencies do not serve competing firms. Source: http://www.leoburnett.com.http://www.leoburnett.com CompanyIndustry Coca-Cola CompanyBeverage FiatAutomobile HallmarkGreeting cards H.J. HeinzCatsup KelloggCereal Kraft FoodsCheese McDonald’sFast food Allstate InsuranceInsurance

16. © 2007 by Prentice Hall 5-16 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)

17. © 2007 by Prentice Hall 5-17 Key Advertising Personnel Client Marketing Manager Account Executive Client Marketing Manager Client Marketing Manager Creative Director Traffic Manager Media Buyers & Planners

18. © 2007 by Prentice Hall 5-18 Angela Talley of DDB Worldwide discusses the work of the creative team in advertising production. Click picture to play movie.

19. © 2007 by Prentice Hall 5-19 Steps in Advertising Campaign Management 1.Review communications market analysis. 2.Establish advertising portion of IMC objectives. 3.Review advertising budget. 4.Select media. 5.Prepare creative brief

20. © 2007 by Prentice Hall 5-20 Promotions Opportunity Analysis (From Chapter 5) Communication Market Analysis Competitors Opportunities Target markets Customers Product positioning

21. © 2007 by Prentice Hall 5-21 To build brand image “Top of mind” “First choice” To inform To persuade To support other marketing efforts To encourage action F I G U R E 5. 5 Advertising Goals

22. © 2007 by Prentice Hall 5-22 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.

23. © 2007 by Prentice Hall 5-23 Example of Puffery

24. © 2007 by Prentice Hall 5-24 Advertising Budget Manner of Distribution Continuous schedule Flighting schedule Pulsating schedule

25. © 2007 by Prentice Hall 5-25 The objective The target audience The message theme The support The constraints F I G U R E 5. 6 The Creative Brief

26. © 2007 by Prentice Hall 5-26 The Objective An advertisement for Bic designed to enhance the brand’s image.

27. © 2007 by Prentice Hall 5-27 The Target Market The target market for this ad is females, 13-30, who enjoy sports and have an active life style.

28. © 2007 by Prentice Hall 5-28 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.

29. © 2007 by Prentice Hall 5-29 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

30. © 2007 by Prentice Hall 5-30 Depict or condone dangerous, illegal, aggressive, or reckless driving. Draw attention to the acceleration or speed capabilities of a vehicle. Depict speed, racing, or other forms of competitive driving in any way associated with normal on-road use of vehicles. (Such scenes should be clearly identifiable as part of an organized motor sport.) Show unsafe images of off-road driving. Use fantasy, humor, or self-evident exaggeration to bypass the code’s provisions. Use disclaimers to justify including material that doesn’t comply with the code. Source: Maria Nguyen, “Best Media for Car Marketers,” B&T Weekly, Vol. 54, No. 2493 (October 15, 2004), p. 21. Advertisements should not: F I G U R E 5. 7 Constraints: Australian Motor Vehicle Ad Code

31. © 2007 by Prentice Hall 5-31 Creative Brief Click on speaker to play ad. 1.What is the objective? 2.Who is the target market? 3.What is the message theme? 4.What support is given? 5.What are the constraints? After listening to this radio ad, identify the various components of the creative brief.

32. © 2007 by Prentice Hall 5-32 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.

33. © 2007 by Prentice Hall 5-33 Del Monte Advertisement Based on Creative Brief in the previous slide.