1. Chris Banman Fall 2010 471.21 Providence College

2. chapter 15

3. ?  What do marketing managers do?  What do ad agencies do?  When advertise?  Where?  Is the Internet new?  The “copy thrust”…!?  Laws? What laws?  When is PR useful?  When are sales promotions useful?

4. Decisions  in  advertising  publicity  sales promotion

5. Decisions

6. What is an advertising agency?  Handles all or part of marketing communications for client  Vary in size  Commission for media purchases

7. Types of agencies  Full service  A la carte  Specialist

8. A Full-Service Agency will offer:  Account management.  Creative.  Media.  Traffic and production.  Account planning.  Account management.

9. Creative Team  first internal agency team members to see the brief  The brief contains a 'proposition' that the client wishes to communicate to the target audience.  The creative team will transform the proposition into something exciting and attractive to the target audience.  decide upon the 'creative concept.' This will be a motivational idea. The words used to express the creative concept are called 'copy.’  The images, pictures and diagrams are created i.e. the 'design' or 'layout.' This is done by 'designers' and 'copywriters.'  Beware some creatives! Creatives tend to be artistic and innovative. Hence their advice should be highly regarded and any criticism should be constructive.

10. Traffic and Production  in charge of the production of the physical and artistic output, i.e. the marketing communication.  TV advert, they would commission scripts, recruit actors (mainly via agents), film crews and supporting activities (such as costumes and catering).  All ads are different and so the specifics will vary.  Print advertising, the traffic and production team would commission and sign-off all printed advertising material such as direct marketing materials, magazine ads or posters.

11. Account Planning Team  work on the 'customer's' perspective, and take an outward look at the world.  They support the creative teams by supplying data and opinion on what is actually occurring in the marketing in which advertising is to be placed.  Tend to use secondary data to support decisions, and would rarely commission original research.  However, with material supplied my organizations such as Mori, Datamonitor, ACORN, and other - the account planning team can build an image of segments to help the creatives.

12. Media Team  Organize the timing and scheduling of the marketing communications campaign.  Look at the range of media to be exploited, and then look at the best slots in which to run advertising.  Help a client to decide upon the duration of and individual slot, and how many of them to run.  Expense and return to the client are key factors that influence decision-making.  Two main skills of the media team are media planning and media buying.  Today there is a wealth of data on which media buying can be based. There is software for planning and simulation.

13. Advertising as % of Sales

15. Possible Advertising Objectives  position brands  introduce new products  obtain outlets  ongoing contact  support sales force  get immediate action  maintain relationships

16. Advertising Objectives

17. Objective Focus Options  advertise firm  advertise product  pioneering advertising  competitive advertising  direct  indirect  comparative  reminder advertising decide!

18. Competitive Ads

19. Comparative Ads

20. Reminder Ads

21. Firm Ads  firm brand  strengthen  shape  connect divisions  build a favourable glow  advocate  causes  ideas

22. Objective Focus Options  advertise firm  advertise product  pioneering advertising  competitive advertising  direct  indirect  comparative  reminder advertising

23. Awareness  Action  get attention  hold interest  arouse desire  trigger action

24. Cooperative Advertising  integration  vertical  horizontal  concerns  breadth  duration  practicality  ethics Steinbach: The Automobile City

25. What’s the best medium?  Wide or narrow?  Are traditional media more focused?  Detailed or simple?  Action?  “Necessary?”  Content or context?  prestige  ad “neighbours”  direct (addressed) mail  direct (named) mail  unaddressed mail  flyer drop

26. What’s the best medium?  “big” decisions  print  paper  or…  electronic  tv  radio  Internet  or…  Or…

27. What’s the best medium? sales 2002 typical cost for mid-sized city tv$54b$4k/ 30 sec newspaper$44b$43k/ 1 page direct mail$45b~$1k/ 1,000 radio$18b$0.5k/ 30 sec Yellow Pages $14b$3k/ ¼ page / year magazine$11b$5k/ page outdoor$5b$5k/ 2 months Internet$5b$2k/ 1,000 click-thrus

28.  tvdemonstrations | good attention | wide reach newspaperflexible | timely | local direct mailflexible | targeted | some personalized radiosegmented audience | wide | inexpensive Yellow Pagesomnipresent | traditional magazinevery targeted | longer time | good pass-along outdoorflexible | wide | repeat exposure | affordable? Internet variable detail | direct link to buying | info capture What’s the best medium?

29.  tvExpensive | cluttered | unselective newspaperMay be expensive | short life | no pass-along direct mailmay be expensive | may be junk mail radioweak attention | short attention Yellow Pagestied to competitors magazineinflexible | long lead time outdoormass market | very short exposure Internet?

30.  targeting varies  response varies  see  notice  action  click  …  buy  pay for performance

31. What’s the best medium?  “big” decisions  print  paper  or…  electronic  tv  radio  Internet  or…  “small” decisions  e.g:  direct (named) mail  build  buy  direct (addressed) mail  unaddressed mail  flyer drop

32. Agencies gross income 2002 Omnicom GroupNew York$7.6b Interpublic GroupNew York$6.2b WPP GroupLondon$5.8b Publicis GroupeParis$2.7b DensuTokyo$2.1b HavasSuresnes, FR$1.8b Grey Global GroupNew York$1.2b HakuhodoTokyo$0.9b Cordiant Communications GroupLondon$0.8b

33. Agencies Omnicom GroupVisa Pepsi Gillette FedEx Interpublic GroupSamsung Dockers Hewlett-Packard WPP GroupFord IBM Motorola Mattel Publicis GroupeBMW Citibank L’Oreal Hallmark DensuSega Toshiba Dreamcast Hitachi HavasPeugeot Intel Evian Grey Global GroupHasbro Mars Oracle Nokia HakuhodoSony Honda Citizen Panasonic Cordiant Communications GroupWendy’s Pfizer Kellogg’s Nestlé

35. “Unfair” Advertising  government regulation  “self-regulation”  fuzzy  claims  effects change

36. Publicity  news releases  sponsored events  press conferences  interviews  background  “on-air”  free  credible  attention-getting  surprising effects  uncertain control  skills  story frame  novelty  addictive

37. Sales Promotion  everything other than  advertising  publicity  personal selling  e.g.:  coupons  in-store demos  “viral marketing”  product placement  trade fairs  traditional foci:  price  Immediate action

38. Sales Promotion  What happens after?  levels after  temporary drop?  return to prior?  new  ligher?  lower?  price expectation  the brand  the product  more issues:  price expectation  the brand  the product  discount expectations  erosion of brand loyalty  time-intensive  staff  money text says: not for amateurs

39. Terms  product advertising  institutional advertising  pioneering advertising  competitive advertising  direct type advertising  indirect type advertising  comparative advertising  reminder advertising  advertising allowances  cooperative advertising  copy thrust  unique selling proposition  advertising agencies  corrective advertising  pointcasting  viral marketing