Adv Mangement

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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 91 Chapter 5 Advertising Management Advertising and the IMC Process An IMC program is more than just promotions and advertising tactics. Still, advertising plays a major and vital role in establishing effective communications. Choosing an Advertising Agency The first step in developing an advertising program is choosing between an in-house advertising group and an external advertising agency. Figure 5.3 lists the variables used when deciding between an in-house and external advertising agency. Decision Variables In making the decision to use an external agency or in-house department, a firm should consider the following five critical issues: 1. The size of the account. 2. The money that can be spent on media. 3. The objectivity factor. 4. The complexity of the product. 5. Creativity concerns. External Advertising Agencies Individual advertising agencies provide a number of services for companies seeking to refine their IMC programs. They include the items displayed in Figure 5.4: Consulting and giving advice about how to develop target markets Providing specialized services for business markets Providing suggestions on how to project a strong company image and theme

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Transcript of Adv Mangement

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    Chapter 5

    Advertising Management

    Advertising and the IMC Process

    An IMC program is more than just promotions and advertising tactics. Still, advertising plays

    a major and vital role in establishing effective communications.

    Choosing an Advertising Agency

    The first step in developing an advertising program is choosing between an in-house

    advertising group and an external advertising agency.

    Figure 5.3 lists the variables used when deciding between an in-house and external advertising

    agency.

    Decision Variables

    In making the decision to use an external agency or in-house department, a firm should

    consider the following five critical issues:

    1. The size of the account. 2. The money that can be spent on media. 3. The objectivity factor. 4. The complexity of the product. 5. Creativity concerns.

    External Advertising Agencies

    Individual advertising agencies provide a number of services for companies seeking to refine

    their IMC programs. They include the items displayed in Figure 5.4:

    Consulting and giving advice about how to develop target markets Providing specialized services for business markets Providing suggestions on how to project a strong company image and theme

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    Supplying assistance in selecting company logos and slogans Preparation of advertisements Planning and purchasing media time and space

    In addition to advertising agencies, there are other closely associated types of firms, including:

    Media service companies, which negotiate and purchase media packages (called media buys) for companies.

    Direct marketing agencies that handle every aspect of a direct marketing campaign, either through telephone orders (800 numbers), Internet programs, or by

    direct mail.

    Consumer promotions or trade promotions agencies. Public relations firms are experts in helping companies and individuals develop

    positive public images, and are also called in for damage control when negative

    publicity arises.

    A recent trend in the advertising industry is that some agencies are getting larger by

    purchasing smaller firms.

    The decision to retain an advertising agency is largely based on the belief that the agency can

    provide services and assistance that will give the client firm an advantage in the marketplace.

    Choosing an Agency

    Choosing the advertising agency that best suits a company requires careful planning. The steps

    of choosing an agency, ash displayed in Figure 5.5, are described next.

    Goal-Setting

    Before any contact is made with an advertising agency, it is important to identify and prioritize

    various corporate goals. Clear goals help ensure a good fit between the company and the

    agency which is eventually chosen.

    Selection Criteria

    Even firms that have experience in selecting agencies must establish the process and criteria in

    advance. The objective is to reduce biases that may enter into the decision process. Common

    selection criteria, as shown in Figure 5.6 include:

    1. Agency size, especially as it compares to the size of the company hiring the

    agency.

    2. Relevant experience in an industry is a second evaluation criterion that

    companies use.

    3. No conflicts of interest.

    4. The initial screening process should include an investigation into each

    agency's creative reputation and capabilities.

    5. Production capabilities and media purchasing capabilities of the agencies. In

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    terms of media buys, questions the company should ask include:

    Does the agency buy efficiently?

    Is the agency able to negotiate special rates and publication positions?

    Does the agency routinely get bumped by higher-paying firms, so ads

    do not run at highly desirable times?

    6. Other services available, client retention rates, and personal chemistry are

    revealed as the final steps of selection take place.

    Reference Requests

    Once the initial screening has been completed, it is time to request references from those

    agencies that are still in the running for the contract.

    Discovering an agency's client retention rate helps reveal how effective they have been in

    working with various clients.

    Background checks also provide useful information. This can be accomplished by:

    Finding firms that have dealt with each agency. Talking to media agents who sell media time to gain insight into how an agency

    buys time and how it deals with customers.

    Contacting companies that have formed contracts with individual agencies for production facilities.

    Creative Pitch

    The agency should be willing to provide a formal presentation (shootout) addressing a specific

    problem, situation, or set of questions.

    These presentations reveal how each agency would deal with specific issues, which arise as a

    campaign is prepared and helps client companies to be certain the agency uses tactics and

    methods that are acceptable.

    Figure 5.7 lists some key do's and don'ts associated with the creative pitch.

    Agency Selection

    Chemistry may be a factor in the choice. It can be assessed as members of the advertising

    agency meet with members of the marketing department.

    A heavy hitter is a member of the advertising agency whose primary task is to close the deal.

    The final step of the process is to make the choice and to notify all finalists of the decision.

    When the process has been completed, the agency and the company work together to prepare

    the advertising campaign.

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    Advertising Planning and Research

    General pre-planning input is reading up on the client organization, on the Web, in

    magazines, and looking at the product.

    Product specific research is undertaken to make sure there are no major problems with the

    product.

    The major selling idea must be created (the example of "Got Milk?" fits well here)

    Qualitative research assists in creating the best possible message, using anthropology,

    sociology, or psychology.

    Anthropology focuses on direct observations of product use Sociology examines social class, trends, cohorts, and family life cycles Psychology concentrates on motivation, cognition, and learning

    The Values and Life Styles (VALS) model looks at purchases based on life style.

    The personal drive analysis (PDA) looks at individual psychological drives.

    Roles of Advertising Account Executives

    The advertising account executive is the key go-between for both the advertising agency and

    the client company. This individual is actively involved in:

    Soliciting the account Finalizing details of the contract Selecting the creative team that will prepare the actual advertising campaign

    Clients always want to know if they are getting a good value for their investment. Therefore,

    agencies should try to regularly update clients on the work they are doing and the results

    obtained through stewardship reports.

    The Roles of Creatives

    Creatives are the persons who actually develop and produce advertisements.

    Creatives face long hours and work under enormous pressures to design ads that are effective

    and which produce results.

    Advertising Campaign Management

    Managing an advertising campaign is the process of preparing and integrating a specific

    advertising program in conjunction with the overall IMC message. The steps of advertising

    campaign management are:

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    1. Review the communications market analysis. 2. Establish communication objectives consistent with those developed in a

    promotions opportunity analysis program.

    3. Review the communications budget. 4. Select the media in conjunction with the advertising agency. 5. Review the information with the advertising creative in the Creative Brief.

    Communications Market Analysis

    A review of the communications market analysis focuses the account executive, the creative,

    and the company itself on key markets and customers. The steps are:

    1. A competitive analysis should identify the firm's major competitors. 2. An opportunities analysis reveals where the firm can best focus its advertising and

    promotional efforts by discovering company strengths along with opportunities

    present in the marketplace.

    3. The target market analysis identifies key target markets. 4. The analysis of customers suggests how the firm's previous marketing

    communications efforts have been received by the public as well as by other

    businesses and potential customers.

    5. An analysis of position should explain how the firm and its products are perceived relative to the competition, while helping them understand how the firm is currently

    competing in the marketplace.

    For the purposes of advertising, two important items should be defined as part of the

    communication market analysis:

    1. The media usage habits of the target market. 2. The media utilized by the competition.

    Advertising Objectives

    There are several advertising goals that are central to the IMC process. These goals are

    summarized in Figure 5.8 and are described next.

    Building Brand Image

    The brand should be a top of mind brand. A top choice brand is the first or second pick when a

    consumer reviews his or her evoked set (possible purchasing alternatives).

    Part of building brand image and brand equity is developing brand awareness, and advertising

    is the best method to reach that goal. In business-to-business marketing, brand awareness is

    often essential to being considered by members of the buying center.

    Providing Information

    Typical information for consumers includes a retail stores hours, business location, or

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    sometimes more detailed product specifications.

    For business-to-business situations, information from some ads may lead various members of

    the buying center to consider a particular company as they examine their options.

    Information is one component in persuasion, which is another objective of various advertising

    programs.

    Persuasion

    Advertisements may be designed to convince consumers that a particular brand is superior to

    other brands.

    Changing consumer attitudes and persuading them to consider a new purchasing choice is a

    challenging task.

    Persuasive advertising is used more in consumer marketing than in business-to-business

    situations.

    Supporting Marketing Efforts

    Manufacturers use advertising to support trade and consumer promotions, such as theme

    packaging or combination offers.

    Both manufacturers and retail outlets use advertising in conjunction with coupons or other

    special offers.

    When ads are combined with other marketing efforts into a larger, more integrated effort

    revolving around a theme, the program is called a promotional campaign.

    Encouraging Action

    Many commercials encourage the audience to take action by dialing a toll free number or

    going to a Web site.

    Action-oriented advertising is heavily used in the business-to-business sector. The most

    common goal is to generate sales leads.

    The Advertising Budget

    After the total dollars allocated to advertising have been established, account managers and

    company leaders need to agree on how to use the funds. This includes the media to be utilized

    (television versus newspaper versus billboards). The manner of distribution must be arranged.

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    Three basic tactics include:

    1. Advertising the most when sales are at peak seasons 2. Advertising the most during low sales seasons 3. Level amounts

    Advertising during peak seasons can be accomplished in two ways:

    1. A pulsating schedule of advertisements with continuous advertising and bursts of higher intensity during peak seasons.

    2. A flighting approach or schedule means ads are presented only during peak times, and not at all during off seasons.

    A continuous campaign schedule involves advertising in more level amounts throughout the

    year.

    Budgetary constraints must also be incorporated into the strategies and tactics used in the

    advertising program.

    Media Selection

    Advertising managers should develop strategies and tactics associated with:

    Media selection Refining the intent of the message Developing of the actual campaign with specific ads.

    Media buys are discussed in Chapter 8.

    The Creative Brief

    A Creative Brief contains information for the creative. It contains information provided by the

    account executive and is used by the creative department to produce an advertisement that

    conveys the desired message.

    The Objective

    The first step in preparing the creative strategy is to identify the objective of the advertisement.

    Some possible objectives may include:

    Increase brand awareness Build brand image Increase customer traffic Increase retailer or wholesaler orders Increase inquiries from end-users and channel members Provide information

    The Target Audience

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    A creative should know the target audience. The more detail that is known about the target

    audience, the easier it is for a creative to design an advertisement that will be effective.

    Target market profiles that are too general are not very helpful.

    The Message Theme

    The message theme is an outline of key idea(s) that the advertising program is supposed to

    convey.

    The message theme is the benefit or promise the advertiser wants to use to reach consumers or

    businesses.

    Message themes can be oriented toward either rational or emotional processes. A left-brained

    ad is oriented toward the logical, rational side, which manages information such as numbers,

    letters, words, and concepts. Left-brained advertising is logical and factual. A right-brained ad

    deals with emotions and works with abstract ideas, images, and feelings.

    The Support

    Support takes the form of the facts, which substantiate the message theme.

    The Constraints

    Constraints deal with legal and mandatory restrictions for ads, or company imposed

    requirements. They include:

    Legal protection for trademarks, logos, and copy registrations. Disclaimers about warranties, in which the disclaimer specifies the conditions

    under which they will be honored.

    Disclaimers about offers spell out the terms of financing agreements, as well as when bonuses or discounts apply.

    Disclaimers about claims identify the exact nature of the statement made in the advertisement.

    International Implications

    There are two main differences in international advertising campaign management.

    First, while the processes may be similar, the availability of high quality agencies may be

    limited in some countries.

    Second, the campaign must be adapted to the culture and customs of each country.

    IMPLICATIONS FOR THE ADVERTISING AGENCY

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    (Note to professors -- these materials are not in the text. They provide a method for

    you to summarize the chapter in a different way)

    The agency should study the client's paperwork. It will help in designing ads and IMC

    programs. This includes:

    Mission statements Goals Past history (through magazine articles, minutes of meetings, etc.) Past advertisements and other marketing activities Advertisements of the competition

    The agency should carefully match the pitch used to gain new clients with the needs and

    identities of prospective firms.

    The agency should be aware of the relative advantages an external advertising agency holds

    over in-house programs.

    Agencies should remember the selection criteria companies use in the selection of advertising

    agencies. The agency should solicit client companies where they have a built-in advantage,

    because your agency has the characteristics a company is seeking. The company should, in

    return, make certain they are being clear about what they are looking for in an agency.

    The agency should build the capacity to provide as many marketing activities as possible. If

    the company cannot provide them directly, work diligently to construct a list of freelancers

    who are partner organizations, so that the firm can serve as a quality contact point for all types

    of marketing efforts, including:

    Direct marketing campaigns of all types Sales and trade promotions Public relations efforts Advertising campaigns

    The agency should build an effective work force through:

    Hiring quality creatives Establishing strong bonds with current creatives Recruiting regularly at schools and universities as well as other places where

    quality creatives may be found in future years

    Client company leaders should expect that advertising agencies will help them work through

    every aspect of an advertising campaign, from goal setting, to media selection, to Creative

    Briefs, to the actual advertisements, to methods for measuring effectiveness.

    Both client companies and advertising agencies can build relationships with media buyers or

    media agencies that will be contracted to purchase media time (on radio and TV) and space (in

    print media).

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    REVIEW QUESTIONS

    1. What is a message theme? What role does a message theme play in an

    advertising campaign?

    A message theme is an outline of key idea(s) that the advertising program is supposed

    to convey. The role that a message theme plays in an advertising campaign is that it is

    the guiding principle in the campaign.

    2. Define advertising management. What are the four main steps involved?

    An advertising management program is the process of preparing and integrating a

    company's advertising efforts with the overall IMC messages. The four main steps are:

    1. Review the company's activities in light of advertising management. 2. Select an in-house or external advertising agency. 3. Develop an advertising campaign management strategy. 4. Complete a Creative Brief.

    3. What is the relationship between advertising and the overall IMC process?

    Advertising is a key (but not only) part of the IMC process, which fits in with other

    product, price, promotional, and distribution efforts. Together, all of these activities

    form the basis for communicating with individual consumers and business customers,

    with advertising playing a central role. Advertising should provide a clear, coherent

    message to the consumer.

    4. What three main company activities is part of the advertising management

    process? What role does the company's mission play in this process?

    The three main company activities are:

    1. Identify potential customers. 2. Build products and services which meet customer needs. 3. Match the companys IMC process with its advertising management program.

    The company's mission provides a general outline of the direction and purpose for the

    organization. An IMC program is based on a similar statement regarding an overall

    objective.

    5. What criteria can be used to help a company decide between an in-house

    advertising group and hiring an external advertising agency?

    The criteria are:

    The size of the account, which should be matched to the company The amount of money the advertiser can spend on media

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    The objectivity factor provided by an outside agency The complexity of the product Creativity concerns. An outside agency may offer greater creativity.

    6. Besides advertising agencies, what other types of organizations play roles in the

    communication process?

    The other organizations include:

    Media service companies who negotiate and purchase media packages (called media buys) for companies.

    Direct marketing agencies that handle every aspect of a direct marketing campaign, either through telephone orders (800 numbers), Internet programs, or by

    direct mail.

    Sales promotions or trade promotions agencies. Public relations firms that are experts in helping companies and individuals

    develop positive public images, and are also called in for damage control when

    negative publicity arises.

    7. What steps should be taken in selecting an advertising agency?

    The steps are:

    1. Identify and prioritize corporate goals. Develop agency selection process and criteria.

    2. Initially screen firms based on credentials, size, capabilities, relevant experience, and conflict of interests.

    3. Request client references. 4. Perform background checks with other firms and media agents. 5. Request written and oral presentations. 6. Meet creatives, media buyers, account executives, and other personnel that will

    work with the account.

    8. What evaluation criteria should be used in selecting an advertising agency?

    Evaluation criteria used in selecting an advertising agency include:

    The size of the agency Relevant experience of the agency Potential conflicts of interest Creative reputation and capabilities of the agency Production capabilities Media purchasing capabilities Other services offered Client retention rates Personal chemistry with the agency's team

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    9. How important is interpersonal chemistry in selecting an advertising agency?

    Interpersonal chemistry is how the two or more firms interact or their level of comfort

    with each other. It should be part of the selection process when choosing an

    advertising agency because the leaders of the client company should believe the

    advertising agency's team will work well with other members of the client company.

    10. Describe the roles of general planning input, product specific research, and

    qualitative research play in the development of an advertising campaign.

    General pre-planning input is reading up on the client organization, on the Web, in

    magazines, and looking at the product.

    Product specific research is undertaken to make sure there are no major problems with

    the product.

    The major selling idea must be created.

    Qualitative research assists in creating the best possible message using anthropology

    sociology, and psychology.

    11. What three academic disciplines can play a role in advertising research? What

    unique contribution does each discipline make to understanding consumers and

    the marketplace?

    The three are: (1) anthropology, which focuses on direct observations of product use;

    (2) sociology, which examines social class, trends, cohorts, and family life cycles; and

    (3) psychology, which concentrates on motivation, cognition, and learning. The values

    and life style (VALS) model looks at purchases based on life style. The personal drive

    analysis (PDA) looks at individual psychological drives.

    12. Describe the role of an advertising agency account executive.

    An account executive is the go-between for both the advertising agency and the client

    company. The individual is involved in soliciting the account, finalizing the details of

    the contract, and selecting the creative team that will prepare the actual advertising

    campaign.

    13. Describe the role of the advertising creative.

    Creatives are persons who actually develop and produce advertisements. They

    normally express an individual style in the ads that are produced. Creatives face long

    hours and are under considerable pressure to produce ads that are effective.

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    14. What are the steps of an advertising campaign management process? What

    other process in this textbook is similar in nature?

    The steps in the process are:

    1. Review the communications market analysis. 2. Establish communication objectives consistent with those developed in a

    promotions opportunity analysis program. 3. Review the communications budget. 4. Select the media in conjunction with the advertising agency. 5. Review the information with the advertising creative in the Creative Brief. The steps are similar to other processes, such as a promotions opportunity analysis,

    consumer buying decision making process, and business-to-business buying process.

    All of these processes require a review of the current situation, establishing objectives,

    reviewing constraints or budgets, making a selection, and finally conducting an

    evaluation.

    15. Describe the elements found in a creative brief.

    1. The objective is what the advertiser seeks to build, which includes brand awareness, brand image, customer traffic, retailer or wholesaler orders, inquiries

    from end-users and channel members, or simply provide information.

    2. The target audience is the primary audience. The ways to define a target audience include using demographics, interests, lifestyles, and other noticeable target

    market characteristics.

    3. The message theme is an outline of key idea(s) that the advertising program is supposed to convey.

    4. The support is the form of the facts that substantiate the message theme. 5. Constraints are legal and mandatory restrictions that are placed on advertisements.

    CRITICAL THINKING EXERCISES

    1. Interview at least three creatives from an advertising agency. Ask them to

    discuss their role with their firm. Do they consider their job to be a glamorous

    one? It has been suggested that creatives often work very long hours. Discover if

    this is true. Ask them what they think are the key success factors in their job.

    This activity enables students to understand the critical roles that creatives play in an

    advertising campaign. Much has been written (both in the academic and practical

    world) about the excitement and glamour of being a creative. This task will help

    students understand the typical job of a creative and the challenges associated with it.

    2. Planning and research are critical to the creation of a successful advertising

    campaign. A firms marketing team and its advertising agency go through a

    series of meetings that include preplanning input by the agency and product-

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    specific research by both parties. Finally, the advertising agency develops a

    major selling idea for the product, which is then used in the campaign. Select

    five advertisements from a recent magazine and highlight the major selling idea

    used in each. How does it compare to competitors major selling ideas? Discuss

    which ads appeals to you and why.

    The ads need to be selected and brought to class and discussed. Best to be done in

    groups.

    3. The milk industry used the deprivation approach to remind people not to forget

    milk. For what other products could the deprivation model be used? Pick one of

    the products that you have identified and discuss how you would use the

    deprivation model to advertise the product.

    Answers could vary but centred around Fast Moving Consumer Goods (FMCG) e.g.

    Special K Kellogs. Other examples include the Australian campaign of not forgetting

    to eat your 5 fruits and 3 vegetables.

    4. A number of agencies are available to assist firms with their integrated

    marketing communication programs. Some agencies provide a wide array of

    services and act as a onestop shop, whereas others are more specialized. Check

    out the following Web sites and specify how the information provided by each

    would be helpful in building an IMC program.

    a. Advertising Federation of Australia (AFA): www.accc.gov.au

    b. Outdoor Media Association (OMA): http://oma.org.au

    c. Australian Interactive Media Industry Association: www.aimia.com.au

    d. Association of Accredited Advertising Agents (Malaysia): www.aaaa.org.my

    e. Communications Agencies Association of New Zealand (CAANZ):

    www.caanz.co.nz

    f. Saudi Casting Agency: www.saudicasting.com

    g. Advertising Standards Authority UK www.asa.org.uk.

    Students need to do this over a week or two and report back their findings to class.

    Best done in groups, for example Saudi casting provides the following services:

    casting for films, TV, radio, still photography and radio ads. Their clients include

    Shell, HSBC, Riyadh Bank and Procter & Gamble.

    5. A good communication marketing analysis requires knowing the media usage

    habits of consumers and their attitudes toward various media. Nielsen Media is a

    leader in research on the television-viewing habits of people around the world.

    Go to Nielsens Web site at www.nielsenmedia.com and navigate to the Inside

    TV Ratings section. Here you will find information on topics such as rating data,

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    respondent sampling and recruitment, and meters and diaries. How can you use

    such information to determine which television program a marketer would need

    to use to target teenagers living in your local area?

    For example on the 26th March 2009, AC Nielsen had an interesting research story titled Does One Brand Strategy Fit All Channels? by Shan Xifaras Associate Director, ACNielsen Australia. Gathering such information is important for a marketer, likewise get some information about TV and Newspaper rating and decide how such information is important in the decision-making of a marketers in terms of which channel to use.

    INTEGRATED LEARNING EXERCISES

    1. Making the decision to use an external advertising agency as opposed to an

    in-house program for advertising or some other aspect of the advertising

    function is difficult. Access the American Association of Advertising Agencies

    (www.aaa.org). From the News and Information section, examine articles

    that may help identify benefits of using an advertising agency. What type of

    information is available at this Web site?

    Answers will vary depending on what articles are used.

    2. A number of agencies assist business organizations with integrated marketing

    communication programs. Whereas some firms try to provide a wide array of

    services, others are more specialized. Access the following association Web

    sites. What type of information is available on each site? How would the

    information provided be useful in building an IMC program?

    a. Council of Public Relations Firms (www.prfirms.org)

    b. Promotion Marketing Association (www.pmalink.org)

    c. Outdoor Advertising Association of America (www.oaaa.org)

    d. Direct Marketing Association (www.the-dma.org)

    Answers will vary depending on what information is available at the time each Web site is accessed. It is important for students to relate the material to advertising and to the development of an integrated marketing campaign.

    3. Part of a communication marketing analysis includes understanding the

    media usage habits of consumers and their attitudes towards various media.

    An excellent source of information in Canada is the Media Awareness

    Network at www.media-awareness.ca. Review the types of information

    available at the Web site. Examine the news articles. What type of

    information is available at this Web site and how could it be used in

    developing an advertising campaign?

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    Answers will vary depending on what information is available at the time the Web site is accessed. Students should relate the information to advertising and to the development of an integrated marketing campaign.

    4. Many advertisers tend to direct ads toward the right side of the brain and

    develop advertisements based entirely on emotions, images, and pictures. Auto

    parts and tools are often advertised with a scantily clad female in a bikini or

    shorts to attract the attention of males. The female has nothing to do with the

    product, but does garner attention. The rationale for using a sexy female is that if

    consumers like her, they will like the product and then purchase that brand.

    Effective advertisements integrate elements from both the left side of the brain as

    well as the right. They contain elements that appeal to emotions as well as having

    rational arguments. A laundry detergent may be advertised as having the

    rational benefit of getting clothes cleaner but also contain the emotional promise

    that your mother-in-law will think more favorably about you. For each of the

    following Internet sites, discuss the balance of left-brain versus right-brain

    advertising appeal.

    a. Pier 1 Imports (http://www.pier1.com)

    b. Pig O' My Hear Potbellies (http://www.potbellypigs.com)

    c. Dark Dog (http://www.darkdog.com)

    e. Discount Cheerleading.com (http://www.discountcheerleading.com)

    f. Backcountry.com (http://www.backcountry.com)

    Answers will vary depending on the design of the Web site when it is accessed.

    5. You have been asked to select an advertising agency to handle an account for

    Red Lobster, a national restaurant chain. Your advertising budget will be $30

    million. Study each of the Web sites for each of the following advertising

    agencies. Follow the selection steps outlined in the chapter. Narrow the list down

    to two agencies and justify the decision. Then choose between the two agencies.

    Justify choice.

    a. DDB Worldwide (http://www.ddb.com) b. Leo Burnett (http://www.leoburnett.com) c. BBDO Worldwide (http://www.bbdo.com) d. BADJAR Advertising Pty Lfg (http://www.badjar.com) e. Anderson Lucas Advertising (http://www.aladv.com) f. Grey Advertising (http://www.grey.com) g. Bozell Advertising (http://www.bozell.com)

    Answers will vary.

    6. A marketing manager has been placed in charge of a new brand of jeans to be

    introduced into the market. The company's corporate headquarters is in Atlanta,

    and the firm's management team has already decided to use one of the local

    advertising agencies. There are two primary objectives to be used while choosing

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    an agency. First, the agency must have the capability of developing a strong

    brand name. Second, the agency must be able to help with business-to-business

    marketing in order to place the jeans into retail stores. Access Atlanta Ad

    Agencies at http://www.AtlantaAdAgencies.com. Follow the steps outlined in the

    chapter to narrow the list down to three agencies. Then design a project for each

    agency to prepare as part of an oral and written presentation to the company's

    marketing team.

    Student answers will vary. The students should follow the appropriate procedures in selecting an agency. The steps are: 1. Identify and prioritize corporate goals. Develop agency selection process and

    criteria. 2. Initially screen firms based on credentials, size, capabilities, relevant experience,

    and conflict of interests. 3. Request client references. 4. Perform background checks with other firms and media agents. 5. Request written and oral presentations. 6. Meet creatives, media buyers, account executives and other personnel that will

    work with the account.

    Student Project: Creative Corner This is an analysis for advertising Minute Maid Orange.

    Creative Brief for Minute Maid Orange

    Product: Minute Maid Orange is a bottled beverage made from oranges, with the pulp included. The brand is owned by Coca-Cola.

    Objective: Coca-Cola is trying to corner the Sri Lankan market by

    offering a fruit juice to consumers who are looking for a juice beverage instead of carbonated soft drinks. The entry of Minute Maid Orange should accelerate the growth of the fruit juice market to 20 percent a year, from its present state of 12 percent. According to Dusty Alahakoon, marketing manager for Coca-Cola in Sri Lanka, they are seeking a 25-percent market share in the first year. The company plans to reach 180,000 consumers with Minute Maid Orange the first month after its introduction.

    Target Audience: This new brand will be launched in 20,000 outlets in the main towns of Colombo, Negombo, Chilaw, Ratnapura,

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    Gampaha, and across the western coastal belt, up to the city of Galle. Target audiences include the wellness market, which includes health conscious Sri Lankans who seek

    natural food products.

    Message Theme: Minute Maid Orange is made from oranges, with the pulp included in the bottle. It is a better choice over carbonated soft drinks. Fruit juice is healthier for the body and mind, and many fruits contain anthocyanins, which inhibit the formation of blood clots, and potassium, which helps to

    transport oxygen to the brain. 1. You are the account executive at the advertising agency that is handling the

    Minute Maid Orange launch. Discuss the creative brief in terms of completeness

    of the information provided and whether the objective is realistic. What

    additional information should the company provide before the creatives can

    begin working on the account?

    The creative brief is a document that creatives work with as they prepare the advertisements. This document consists of the: objective, target audience, message theme, the support and the constraint. The Minute Maid marketers have provided three elements of the creative brief, the missing ones that the creative need to discuss are the support for the advertisement and any constraint.

    2. The media planner for the Minute Maid account suggests a media plan

    consisting of cable television, print advertising, online ads, and network

    advertising on shows such as 24, Lost, The Simpsons, and CSI Miami. Evaluate

    this media plan in light of the creative briefs objectives (see question 1). Do you

    think these shows will reach the target audience? What information will the

    creative staff and the account executive need from the media planner before

    starting work on actual commercials?

    The first step in preparing the creative brief or strategy is to identify the objective of the advertisement. Of the most common advertising objectives include: building and increasing brand awareness, building brand image, increasing customer traffic, increasing retailer or wholesaler orders, responding to inquiries from end users and channel members and providing information. Coca-Cola is trying to corner the Sri Lankan market by offering a fruit juice to consumers who are looking for a juice beverage instead of carbonated soft drinks. According to Dusty Alahakoon, marketing manager for Coca-Cola in Sri Lanka, they are seeking a 25-percent market share in the first year. The company plans to reach 180,000 consumers with Minute Maid Orange the first month after its introduction. Hence the key objectives for the brand in this initial entry stage should be on building and increasing brand awareness and building a likeable and strong brand image. Target audiences include the wellness market, which includes health conscious Sri Lankans who seek natural food products, and the

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    marketers need to investigate the audience for programs like 24, Lost, The Simpsons and CSI Miami in Sri Lanka. The information that the creative staff needs from the media planner is the likely media types that Minute Maid will use to run the campaign.

    3. From the viewpoint of the creative assigned to this account, do the creative brief

    and the media plan (see questions 1 and 2) contain sufficient information to

    design a series of advertisements? In your opinion, what additional information

    is necessary?

    As mentioned in Answer 1 the information that has not been provided is the: support and constraints. This information would help in designing the advertisement.

    4. Using the information provided in the creative brief, prepare a magazine

    advertisement. Which types of magazines in Sri Lanka might match the target

    audience?

    A clue to this question is the advertisement of Pearle Vision on page 161. After thoroughly reading and understanding the creative brief students can come up with their own creative ideas. Based on the target audience i.e. the wellness market, which includes health conscious Sri Lankans who seek natural food products, a selection of magazines from Sri Lanka could be chosen (do an online search of this).

    5. Choose a familiar good, such as the Mac 3 by Gillette, a service, such as Welcare

    Hospitals in Dubai, and a retailer such as Tesco. Using the information in this

    chapter, prepare a creative brief for each.

    A. Refer to the concept of the creative brief in the chapter and design these.

    CASES

    Case 1 Advertising Stew

    1. Should Luis look to hire an external advertising agency or perform most of the

    tasks in-house? Why?

    Student answers will vary. If he does the work in-house he will have more money to spend on media; however, the expertise of an outside agency would be a key advantage.

    2. If an external agency is chosen, what relevant experiences would be most helpful

    to Luis and the Dinty Moore brand?

    Most of the advantages listed in Figure 5.4 would all apply:

    Advice about how to develop target markets Specialized services for business markets

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    Suggestions on how to project a strong company image and brand Assistance in selecting company logos and slogans Preparation of advertisements Planning and purchasing media time and space

    3. What types of advertising planning and research should be conducted to identify

    Dinty Moore's most loyal customers and potential new customers? They could gain information from several choices:

    o General preplanning input o Product-specific research o Study the major selling idea o Qualitative research

    Regarding qualitative research

    o Anthropology of how stew is consumed o Sociology of who is most likely to buy canned stew rather than make their

    own o Values and lifestyle regarding how serving stew to kids affects parental

    feelings

    4. Design a creative brief for the upcoming Dinty Moore advertising campaign.

    Student approaches will vary.

    5. Using the list of advertising agencies provided under Question5 of the

    Integrated Learning Exercises and the procedure outlined in this chapter,

    choose an outside advertising agency for the Dinty Moore account. Justify your

    selection.

    Student choices will vary. They should mention the evaluation criteria, including:

    o size of the agency o relevant experience o conflicts of interest o creative reputation and capabilities o production capabilities o media purchasing capabilities o other services available o client retention rates o personal chemistry

    Case 2 The Future Is Here: Advergaming And Reality TY

    1. Watch two reality television programs broadcast in your region. What brands

    are featured on these programs? Do they use a product placement or an in-your-

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    face strategy?

    Answers could vary depending on the region where these programs are being watched. Global and common reality programs include: Survivor, American Idol, Amazing Race and Britains Got Talent. Answers would include products such as Coca-Cola for American Idol, Speedo for Survivor, and destinations featured in Amazing Race.

    2. Do traditional advertising agencies support advertising In video games and

    reality television? Conduct a study to address this question. What are some of

    the leading agencies serving these advertising niches? Which agencies would you

    use and why?

    Yes some are providing such services; look up the website for Saatchi & Saatchi, Leo Burnett, DDB, BBDO and Ogilvy. Since such methods of communication are on the rise, large agencies want to be in the fray to provide them and a one-stop shop. The agencies that students would choose could depend on the services and reputation of the advertising agency.

    3. Observe some video games that feature advertisements. What types of products

    and brands are typically featured? Does this communication method target a

    certain demographic group? Discuss.

    Could include the games like FIFA 2009 that advertise Carlsberg on the Liverpool guernsey. Early examples of in-game advertising were static. Some of these consisted of virtual billboards, whereas others could be considered in-game product placement. These advertisements were placed directly into the game by artists or programmers and could not be changed later. Examples of in-game advertising of third party products include the sponsorship of the Zool series by Chupa Chups, leading to various displays of the Chupa Chups product and brand in the game, including a series of levels set in a Sweet world . Another early example of in-game advertising can be seen in the FIFA International Soccer series, with commercial billboard advertisements featured in-game since 1994.

    4. Make a list of other types of products and/or brands that can use these new

    methods of communication as part of their overall IMC strategy. Why do you

    think they could be successful in using this approach?

    Products consumed by teenagers and tweenies who are heavy users of video gaming.

    These product may include fast-food, sports- wear such as Reebok, Nike and Adidas,

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    movies like the Harry Potter series, High-School Musical and Hannah Montana.

    Bonus Case

    DOGGIE DIP AND DO

    Darla Domke had always been an animal lover. Early in life Darla wanted to become a

    veterinarian, but unfortunately she found the science classes a little too challenging. Still,

    she wanted to work with pets, especially dogs, if at all possible. Eventually an idea came

    to her, a new business called Doggie Dip and Do.

    Doggie Dip and Do is a full-service dog shelter. An owner can have a dogs hair

    groomed and nails trimmed; in the summertime, the dog can be dipped in a solution that

    provides flea and tick protection. The shelter also offers a dog kennel for owners who are

    on vacation or out of town. Inside the store various dog products are sold, including

    foods, medicines, collars, chewing bones, and other treats.

    Darlas main worry was consumer awareness. Her store is located in a convenient

    shopping plaza on the outskirts of Atlanta, Georgia. There are clearly enough potential

    customers in the Atlanta area to support her business, but they need to know about all of

    the products and services that Doggie Dip and Do offers.

    There were other challenges. Another issue was finding ways to reach potential

    Doggie Dip and Do customers efficiently. Clearly a large number of people in the Atlanta

    area owned dogs, and many knew what a doggie dip was. Still, how could she steer

    them to her retail outlet?

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    Darla believed it would be worth her while to spend $40,000 on advertising in the

    first year. She took out a loan to help finance what she thought of as start-up advertising

    expenses. Her first thought was to simply hire a television station to create ads. After

    visiting with a local marketing professor, she decided it would be better to spend money

    on several media. Her choices were to try to figure out an advertising campaign on her

    own or hire a local advertising agency. Clearly money was the biggest obstacle.

    Darla decided her ads should emphasize her love for animals. Customers should

    believe they were going to find quality dog products and be greeted by employees who

    genuinely care about the dog as well as the pets owner.

    1. Should Darla hire an external agency or do the promotional work herself?

    Student answers will vary. If she does the work herself she will have more money to spend on media. The expertise of an outside agency would be an advantage.

    2. Should Darla focus on television ads, or are there additional choices? What are they?

    Student answers will vary. Dog owners have both general media habits like television, but there may also be more specialized places such as pet owner magazines.

    3. Prepare a creative brief for a year-long Doggie Dip and Do advertising campaign. Student creative briefs will vary, but should carry the following elements: Objective (consumer awareness) Target Audience (Atlanta dog owners) Message Theme (caring dog house) Support (testimonials) Constraints (any legal issues)