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Adv Management PDF
Adv Management PDF
Advertising Management
An IMC program is more than just promotions and advertising tactics. Still, advertising plays
a major and vital role in establishing effective communications.
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.
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
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 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.
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.
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.
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 store’s 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.
Persuasion
Changing consumer attitudes and persuading them to consider a new purchasing choice is a
challenging task.
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.
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
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
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
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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 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
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.
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:
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?
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.
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.
6. Besides advertising agencies, what other types of organizations play roles in the
communication process?
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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.
Product specific research is undertaken to make sure there are no major problems with
the product.
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.
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.
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?
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.
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.
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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.
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.
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.
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.
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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)
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.
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 brief’s 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.
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.
4. Design a creative brief for the upcoming Dinty Moore advertising campaign.
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
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 Britain’s Got Talent. Answers would include products such as Coca-Cola
for American Idol, Speedo for Survivor, and destinations featured in Amazing Race.
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
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
Doggie Dip and Do is a full-service dog shelter. An owner can have a dog’s 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
Darla’s 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
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
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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
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.
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)
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