3 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations McGraw-Hill/Irwin © 2004 The McGraw-Hill.

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Presentation transcript:

3 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

Organizational Options For Clients Centralized System – Advertising and promotion placed alongside other marketing functions such as sales, research and product planning Decentralized System Separate marketing, sales, advertising and promotion departments for various product lines or businesses of the company. Often use product or brand management system In-House Agencies Advertising agency set up within the company and is owned and operated internally

Example of the Commission System I found this explanation confusing. . .

Basically, the Ad. Agency gets a volume discounts from the Media Owner (Magazine, Network, etc.)

Interactive – Media Placement Burst Media: Jarvis Coffin The Myth of Manufactured Stickiness (Article) The Stickiness Concept

The Communication Process 5 The Communication Process McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.

What is the symbolic meaning of the Snuggle bear?

Models of the Response Process Stages Cognitive Affective Behavioral AIDA model Attention Interest Desire Action Hierarchy of effects model Awareness Knowledge Linking Preference Conviction Purchase Innovation adoption Awareness Interest Evaluation Trial Adoption Information Processing Presentation Attention Comprehension Yielding Retention Behavior Similarities / Differences?

Advertising is used to make consumers aware of new products and their features Yes, but. . . Is that what the ad is REALLY trying to do?

Don’t look at this! Involvement Concept Possible results of involvement Antecedents of involvement derived from the literature Elicitation of counterarguments to ads Effectiveness of ad to induce purchase Relative importance of the product class Perceived differences in product attributes Preference of a particular kind Influence of price on brand choice Amount of information on search Time spend deliberating alternatives Type of decision rule used in choice Person factors - Needs - Importance - Interest - Values Involvement With advertisements With products With purchase decisions Don’t look at this! Object or stimulus factors - Differentiation of alternatives - Source of communication – Content of communication Situational factors -Purchase/use -Occasion

The Elaboration Likelihood Model Focuses on the way consumers respond to persuasive messages based on the amount and nature of elaboration or processing of information Routes to attitude change Central route to persuasion – ability and motivation to process a message is high and close attention is paid to message content Peripheral route to persuasion – ability and motivation to process a message is low and receiver focuses more on peripheral cues rather than message content

High Involvement Appeals Factual Information Hard Data Appeals to “Experts” Example (Toshiba Laptop)

Low Involvement Appeals Little or no Factual Information Imagery Emotional Appeals to “Novices” Example (Toshiba Slide)

EXTRA If Time!

New Product Introduction With / Without Free Sampling

Texting while driving ad.