Advertising

Definition
Anything that calls attention to a product or service
The most visible & immediate point of communication

between businesses & their customers

Mass Media advertising is becoming less important Increases awareness, sales, market share, brand equity A core & integral element of the marketing mix

Advertising Theory and Practice ~ Lesson # 2

Advertising Marketing Mix

Sequential Development Process
Business intelligence analysis [BI] Market research Product development & planning Strategic planning [integrated communications = synergy = max ROI] Media planning, purchase & tracking Advertising creative concept, design, testing, production Promotions Launch, track & feedback into BI

Advertising Theory and Practice ~ Lesson # 2

Advertising
Marketing Communications Mix
Market Research Packaging Advertising Classic Mass, Digital, Permission [Opt-In], Viral, Video Games Promotions: events, offers, involvement, referral, viral, guerilla, etc. Sponsorships & placement Public Relations, Media Relations Direct Marketing [mail, response] Cross/Up Selling B2B & B2C
Advertising Theory and Practice ~ Lesson # 2

Advertising
Review & Discussion
Advertising: More or less important to companies? Why might this be? How is the marketing mix different for a brand of: Fast food restaurant chain Not for profit organization [charity] Cosmetics firm Jet plane manufacturer

Advertising Theory and Practice ~ Lesson # 2

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The Agency World

Business development Account Manager - Clients advocate

Creatives: teams & individuals

Account planner - vision, strategy, macro/micro oversight

Media planner/buyer Production manager internal/external resources Client contact: the Marketing Director or Vice President
Advertising Theory and Practice ~ Lesson # 2

Advertising
Agency Types & Structures

Traditional Full service [advertising VS marketing] Brand, Client or Category Centric

Boutique: specialized in strategy, creative, media, DM/DR, etc.

Digital, Interactive Integrated/Hybrid VS traditional

Local independent VS global network Virtual Minimum Optimal Configuration [M.O.C.]
In-House + Consultants [Coca Cola]

Advertising Theory and Practice ~ Lesson # 2

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Agency Selection

Screening questions checklist [Box 2.1 page 22]

Pitch: Creative or only strategy

Business Philosophy

References

Relationship with assigned team Responsiveness, dedication to your success Billing rank Your Strategic value to the Agency
Advertising Theory and Practice ~ Lesson # 2

Advertising
Agency Compensation

Commission

Retainer

Fee schedule

-la-carte
Project/Task Performance-based Must be fair & sufficiently motivating
Advertising Theory and Practice ~ Lesson # 2

Advertising
Managing Your Agency

Setting the Terms [Box 3.1 page 27]

Review, Update & Conflict resolution process

Call Reports timeliness, legally binding Meetings; Briefs, Review, Off-site / Away Day Advertising budget

industry average for each category [up to 20% & more] advertising-to-sales ratio corporate objectives Competitive market forces

Advertising Theory and Practice ~ Lesson # 2

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Assignment
Answer each question on pages 11, 25 and 41
This is NOT a team assignment Do the work individually and provide the answers yourself Remit your printed report to me before the start of

September 25th class

Advertising Theory and Practice ~ Lesson # 2