Functions of Advertising - Kişisel Sayfalarkisi.deu.edu.tr/sumeyra.kurt/MRK...

1

Copyright ©2016 Pearson Education, Inc. 5-1

5 Chapter Five

Advertising Management

Copyright ©2016 Pearson Education, Inc.

Chapter Objectives

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?


5

5-2

Copyright ©2016 Pearson Education, Inc.

Chapter Objectives

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?


5

5-3 Copyright ©2016 Pearson Education, Inc. 5-4

Zhender Communications

• Full-service agency

• Challenges traditional thinking

• Innovation

• Campaign integration

• Best place to work

5

2

Regulation

& Ethics Evaluation

Database,

Direct

Response, &

Personal

Selling

Sales

PromotionsPublic Relations

& Sponsorships

Traditional

Media

Digital

MarketingAlternative

Channels

Advertising

ManagementAdvertising

Design

Brand ManagementBuyer

BehaviorsIMC Planning Process

Social

Media

F I G U R E 5 . 1

Overview of Integrated

Marketing Communications

5-5Copyright ©2016 Pearson Education, Inc. Copyright ©2016 Pearson Education, Inc. 5-6


• Advertising management

• Advertising theory

• Relationship of advertising expenditures to success

• Choosing an advertising agency

• Advertising parameters

• Creative brief

5 Chapter Overview

Copyright ©2016 Pearson Education, Inc.5-7

Hierarchy of Effects Model

1. Awareness

2. Knowledge

3. Liking

4. Preference

5. Conviction

6. Purchase



• 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

3



Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Cognitive

Affective

Conative


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


Comfortable life

Equality

Excitement

Freedom

Fun, exciting life

Happiness

Inner peace

Mature love

Personal accomplishment

Pleasure

Salvation

Security

Self-fulfillment

Self-respect

Sense of belonging

Social acceptance

Wisdom

F I G U R E 5 . 2

Personal Values


Attributes Benefits Personal Values

Low fat Healthy Self-respect

Wisdom

Calcium Healthy bones Comfortable life

Wisdom

Ingredients Good taste Pleasure

Happiness

Vitamins Enhanced

sexual ability

Excitement

Fun

Pleasure

F I G U R E 5 . 3

Means-End Chain for Milk

4


Means-End Chain


Attributes Benefits Personal Values

Internet Robust samples Job security

Speed Quicker results Self-fulfillment

Expertise Actionable

information

Wisdom

Social acceptance

Experience Reliability Job security

F I G U R E 5. 4

B-to-B Means-End Chain for Greenfield Online


Means-End Chain


Ad designed to encourage action.

5


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


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


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


F I G U R E 5. 5Relationship Between Advertising and Marketing

Expenditures and Sales and Profit Margins

6


F I G U R E 5 . 6

A Decay Effects Model


• Lower costs

• Consistent brand message

• Better understanding of

product and mission

• Faster ad production

• Work closer with CEO

• Lower turnover rate in the

creative team

• Reduce costs

• Greater expertise

• Outsider’s perspective

• Access to top talent

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

Advantages of In-House Advantages of Outside Agency

F I G U R E 5 . 7

Advantages of In-House versus Outside Agency


• 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

F I G U R E 5 . 8

Services Provided by Full-Service Agencies

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

Boutique Full-Service

http://adage.com/print?article_id136701

7


Budget Allocation ConsiderationsIn-House vs. Advertising Agency

75-15-10 Rule75% - Media buys

15% - Creative work (agency)

10% - Ad production

Size of account should match size of agency

Crowd SourcingIn-House vs. Advertising Agency

• New alternative

• Outsource creative

• Lay’s ‘Do us a flavor’

• Budweiser ‘Project 12’

• Overall cost not lower

• Advantages

• Involves consumers

• Generates buzz



F I G U R E 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

Choosing an Agency


Goal Setting

• Set before contacting agencies

• Provides direction

• Reduces biases

https://www.youtube.com/watch?v=RNdS1tIPsqY

https://www.youtube.com/watch?v=_ZrWdZ8pFuI

8


• 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

F I G U R E 5 . 10

Evaluation Criteria in Choosing an Ad AgencyCreative Pitch

• 2 to 3 finalists

• Formal presentation shootout

• Specific problem/situation

• Expensive for agencies



Key Advertising Personnel

ClientMarketing Manager

Account

Planner



Creative Creative Creative Creative

Creative

DirectorTraffic

ManagerMedia

Buyers

&

Planners

Account

Executive


• Advertising goals

• Media selection

• Tagline

• Consistency

• Positioning

• Campaign duration

F I G U R E 5 . 12

Advertising Campaign Parameters

9


• To build brand awareness

• To inform

• To persuade

• To support other marketing efforts

• To encourage action

F I G U R E 5 . 13

Advertising Goals

Build Brand AwarenessAdvertising 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

• Example: Fiat Egea


PersuasionAdvertising Goals


Support Marketing EffortsAdvertising Goals

• Consumer promotions

• Retailers

• Special sales

• Promotional campaign

Copyright ©2014 by Pearson Education, Inc. All rights reserved. 5-36

https://www.youtube.com/watch?v=QnIKS1QsE70

10

Encouraging ActionAdvertising Goals

• Behavioral goals

• Encourage some type of action

• Inquiry

• Access Web site

• Visit retail outlet

• Send e-mail or telephone

• Business-to-business

Copyright ©2014 by Pearson Education, Inc. All rights reserved. 5-37 Copyright ©2016 Pearson Education, Inc. 5-38

Media Selection• Media-usage habits of target market

• Audience characteristics of media

• Business-to-business media

• Earlier involvement of media companies


Taglines

• Key phrase

• Memorable

• Conveys uniqueness

• Consistency across platforms

• Shorter than in past

• Revised or new taglines


Taglines

11


Consistency

• Transfer to long-term memory

• Visual consistency key

• Repetition enhances recall

• Variability theory

• Different environments

• Can vary content

• Multiple media


Positioning

• Maintain consistent position

• Link in cognitive map

• Avoids ambiguity

• Message stays clear


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


• The objective

• The target audience

• The message theme

• The support

• The constraints

F I G U R E 5. 15

The Creative Brief

12


The

Objective

To Persuade


The Target

Audience

The target market for

this ad is human

resource individuals

within a business.


The Message Theme

• 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


The Message

Theme

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.”

13


The Support

The support claims in this ad

are the “Best” awards shown

at the bottom of the ad.


The Support

Ariel detergent

The Constraints

• Legal and mandatory restrictions

• Corporate restrictions

• Disclaimers


Functions of Advertising - Kişisel Sayfalarkisi.deu.edu.tr/sumeyra.kurt/MRK...

Documents

Transcript of Functions of Advertising - Kişisel Sayfalarkisi.deu.edu.tr/sumeyra.kurt/MRK...