Integrated Advertising, Promotion,

and Marketing Communications

Eighth Edition, Global Edition

Chapter 5
Advertising
Campaign
Management

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 Chapter Objectives (1 of 2)
1. Why is an understanding of advertising theories
important in the advertising management process?
2. What is the relationship of advertising expenditures
to advertising effectiveness?
3. When should a company employ an external
advertising agency rather than completing the work
in-house?
4. How do companies choose advertising agencies?

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 Chapter Objectives (2 of 2)
5. What are the primary job functions within an
advertising agency?
6. What are the advertising campaign parameters that
should be considered?
7. How does a creative brief facilitate effective
advertising?
8. What are the implications of advertising
management in the global arena?

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 Zhender Communications
• Full-service agency
• Challenges traditional
thinking
• Innovation
• Campaign integration
• Best place to work

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 Figure 5.1 Overview of Integrated
Marketing Communications

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 Chapter Overview
• Advertising management
• Advertising theory
• Relationship of advertising
expenditures to success
• Choosing an advertising agency
• Advertising parameters
• Creative brief

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 Hierarchy of Effects Model (1 of 3)
1. Awareness
2. Knowledge
3. Liking
4. Preference
5. Conviction
6. Purchase

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 Hierarchy of Effects Model (2 of 3)
• Steps are sequential
• Some experts question if sequential
• Consumers spend time at each step
• Brand loyalty involves all six steps
• Similar to attitude formation
• Cognitive → affective → conative
• Cognitive – awareness, knowledge
• Affective – liking, preference, conviction
• Conative – actual purchase
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 Hierarchy of Effects Model (3 of 3)

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 Figure 5.2 Personal Values
• Comfortable life • Pleasure
• Equality • Salvation
• Excitement • Security
• Freedom • Self-fulfillment
• Fun, exciting life • Self-respect
• Happiness • Sense of belonging
• Inner peace • Social acceptance
• Mature love • Wisdom
• Personal accomplishment

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 Means-End Theory
• Means-end chain
• Message (means) lead to end state (personal values)
• Means-End Conceptualization of Components of
Advertising Strategy (MECCAS)

Product attributes → benefits → personal values

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 Figure 5.3 Means-End Chain for
Milk (1 of 2)

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 Figure 5.3 Means-End Chain for
Milk (2 of 2)

Means-End Chain

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 Figure 5.4 B-to-B Means-End Chain
for Greenfield Online (1 of 2)

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 Figure 5.4 B-to-B Means-End Chain
for Greenfield Online (2 of 2)

Means-End Chain

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 Verbal and Visual Elements
• Balance between visual and
verbal
• Visual processing
– Easier to recall
– Stored both as pictures and
words
– Concrete vs. abstract
• Radio visual imagery
• Visual esperanto
• International ads
• B-to-B advertisements
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 Factors Impacting Relationship
Between Promotions and Sales
• The goal of the promotion
• Threshold effects
• Diminishing returns
• Carryover effects
• Wear-out effects
• Decay effects
• Random events

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 Figure 5.5 Relationship Between Advertising and
Marketing Expenditures and Sales and Profit Margins

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 Threshold Effects

Ad designed to encourage action.

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 Figure 5.6 A Decay Effects Model

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 Figure 5.7 Advantages of In-House
versus Outside Agency
Advantages of In-House Advantages of Outside
• Lower costs Agency
• Consistent brand message • Reduce costs

• Better understanding of product • Greater expertise

and mission • Outsider’s perspective
• Faster ad production • Access to top talent
• Work closer with CEO
• Lower turnover rate in the creative
team

Source: Adapted from Rupal Parekh, “Thinking of Pulling a CareerBuilder? Pros and Cons of Bringing an
Account In-House,” Advertising Age, http://adage.com/print?article_id136701, May 18, 2009

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 Figure 5.8 Services Provided by Full-
Service Agencies
• Advice about how to develop target markets
• Specialized services for business markets
• Company image and theme guidance
• Selecting logos and taglines
• Advertising planning
• Planning and purchasing of media

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 External Advertising Agencies

• Advertising agencies
• Media service companies
• Direct marketing agencies
• Consumer and trade promotion specialists
• Online and digital agencies
• Social media agencies
• Public relations agencies
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 Budget Allocation Considerations
In-House vs. Advertising Agency
Size of account should match size of agency
75-15-10 Rule
75% - Media buys
15% - Creative work (agency)
10% - Ad production

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 Crowd Sourcing
In-House vs. Advertising Agency
• New alternative
• Outsource creative
– Doritos
– Harley Davidson
• Overall cost not lower
• Advantages
– Involves consumers
– Generates buzz

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 Figure 5.9 Steps in Selecting an
Advertising Agency
1. Set goals
2. Select process and criteria
3. Screen initial list of applicants
4. Reduce list to two or three viable agencies
5. Request creative pitch

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 Choosing an Agency
Goal Setting
• Set before contacting agencies
• Provides direction
• Reduces biases

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 Figure 5.10 Evaluation Criteria in
Choosing an Ad Agency
• Size of the agency
• Relevant experience of the agency
• Conflicts of interest
• Creative reputation and capabilities
• Production capabilities
• Media purchasing capabilities
• Other services available
• Client retention rates
• Personal chemistry
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 Creative Pitch
• 2 to 3 finalists
• Formal presentation → shootout
• Specific problem/situation
• Expensive for agencies

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 Key Advertising Personnel

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 Figure 5.12 Advertising Campaign
Parameters
• Advertising goals
• Media selection
• Tagline
• Consistency
• Positioning
• Campaign duration

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 Figure 5.13 Advertising Goals
• To build brand awareness
• To inform
• To persuade
• To support other marketing efforts
• To encourage action

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 Build Brand Awareness
Advertising Goals
• Brand image begins with awareness
• Consumers recognize the brand
• Business-to-business
– Especially important in modified rebuy situations
• Successful brands possess
– Top-of-mind
– Top choice
• Brand equity leads to top-of-mind & top choice

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 Persuasion
Advertising Goals

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 Media Selection
• Media-usage habits of
target market
• Audience characteristics of
media
• Business-to-business
media
• Earlier involvement of
media companies

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 Taglines
• Key phrase
• Memorable
• Conveys uniqueness
• Consistency across platforms
• Shorter than in past
• Revised or new taglines

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 Consistency
• Transfer to long-term memory
• Visual consistency key
• Repetition enhances recall
• Variability theory
– Different environments
– Can vary content
– Multiple media

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 Positioning
• Maintain consistent position
• Link in cognitive map
• Avoids ambiguity
• Message stays clear

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 Campaign Duration
• Goal is to embed in long-term memory
• Too short impedes retention
• Too long can make it stale
• Typical length is 6 months
• Length varies

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 Figure 5.15 The Creative Brief
• The objective
• The target audience
• The message theme
• The support
• The constraints

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 The Objective

To Persuade
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 The target audience

To Persuade
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 The Message Theme (1 of 2)
• Unique selling point
• “Left brain” advertisement
– Logical, rational side of brain
– Manages numbers, letters, words, concepts
– Use rational appeal
• “Right-brain” advertisement
– Emotional side of brain
– Manages abstract ideas, images, feelings
– Use emotional appeal

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 The Message Theme (2 of 2)
The message theme of this
ad is “Weaver is the firm of
choice for companies and
individuals with dreams
and goals as big as Texas.”

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 The Support
The support claims in this
ad are the “Best” awards
shown at the bottom of the
ad.

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 The Constraints
• Legal and mandatory restrictions
• Corporate restrictions
• Disclaimers

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 International Implications
• 62% of advertising budgets spent outside of U.S.
• Two major differences
– Process of agency selection
– Preparation of international advertising campaigns
• Preplanning research varies
• Understanding of languages and cultures
• Media selection varies

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• Oreo Cookies
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• Advertising Agencies

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 Copyright

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