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1- 1 Slide 2 Part 1 Enduring Principles in Times of Turmoil 2-1 Slide 3 1- 3 Slide 4 1- 4 Slide 5 1- 5 Slide 6 1- 6 Slide 7 7 Slide 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 Slide 9 Veni Vidi Vici 1- 9 Slide 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 Slide 11 1- 11 Slide 12 1- 12 Slide 13 1- 13 Slide 14 1- 14 Lincoln Cathedral-1300 A.D. Slide 15 Information Advances in printing technology expanded literacy, making commercial messages available to the masses. 15 Slide 16 Persuasion With widespread marketing, focus expanded from hype to branding, and now includes both. 1-16 Slide 17 1- 17 Slide 18 1- 18 Slide 19 1- 19 Slide 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 customers wants and needs 20 Slide 21 21 Slide 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 Slide 23 Advertising is a sponsored media message intended to persuade you to think, do, or buy something. 1- 23 Slide 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 Slide 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 Slide 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 Slide 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 Slide 28 1- 28 Slide 29 1- 29 Slide 30 1- 30 Retail Slide 31 1- 31 Slide 32 1- 32 Slide 33 Burger King 1- 33 Slide 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 organizations point of view 1-34 Slide 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 Slide 36 36 Slide 37 Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-37 Slide 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 Slide 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 Slide 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 Slide 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 Slide 42 Full-service agency Encompasses account management, creative services, media planning, and account planning. In-house agency Is a part of the advertisers organization; helps to control costs and maintain control over brand image. Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-42 Slide 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 Slide 44 The A-List of Advertising Agencies Here are a few of them: Crispin Porter + Bogusky: www.cpbgroup.comwww.cpbgroup.com TBWA/Chiat/Day: www.tbwa.comwww.tbwa.com Goodby, Silverstein & Partners: www.goodbysilverstein.com www.goodbysilverstein.com R/GA: www.rga.comwww.rga.com Tribal DDB: www.tribalddb.comwww.tribalddb.com Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-44 Slide 45 Agency networks Large conglomerations of agencies under a central ownership Holding companies One or more agency networks, usually with multiple offices 1-45 Slide 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 Slide 47 47 Slide 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 Slide 49 Two recent trends: 1. Based on performance: the agency is paid a percentage of the clients 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 Slide 50 Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-50 Slide 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 Slide 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 Slide 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 Slide 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 Slide 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: www.effie.org www.clioawards.com Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-55 Slide 56 Other advertising awards: Canadas Cassie Award www.cassies.ca Cannes Lions Award www.canneslions.com Silver Anvil Award www.prsa.org/awards/silveranvil Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-56 Slide 57 The first principle of IMC: Everything communicates! Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 1-57 Slide 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 Slide 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 Slide 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 Slide 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