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MC 4040 ADVERTISING PROBLEMS

How Advertising Works08/29/2013

Copyright © 2013 Yongick Jeong

+IRB Certificate

For your Case Analysis, Mini Campaign, and Final Campaign, you must be IRB certified.

Here’s the link to the LSU IRB website: http://sites01.lsu.edu/wp/ored/institutional-revie

w-board/irb-researchers/ When you are on the website, click “

Hum an Subjects Training ” to locate your certificate (if you are certified already) or to register/complete the IRB course (if you haven’t done it). The website says it takes about 3 hours to complete the course.

Submit your IRB Certificate by September 12

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What is Advertising?Advertising ProceduresMarket AnalysisAdvertising AgencyAd Agency PeopleCase Analysis – ReviewCase Analysis – Agency/Group

Selection

Today’s Agenda

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Advertising Is…

+What Is Advertising?

Any Paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor To be considered advertising, communication

should have the following characteristics: “Paid for” – the space or time for an ad message

generally must be bought “Non-personal” – Delivered through mass media “Identified sponsor”- whose paying and what

for “Intention to persuade” Please do not use mediums

5

+Advertising Campaigns?

Series of coordinated advertisements (and other promotional efforts) that communicate a reasonably cohesive and integrated theme

+Key Players

Marketers/Advertisers or manufacturers (brand management)

Media (e.g., TV, print, Internet)

Advertising agencies

contractors/SuppliersResearch firms, production houses, etc

Target Audience

+Advertising Audience & Target Audience

Advertising Audience “a group of individuals who receive and interpret

messages sent from advertisers through mass media”

Target Audience “a particular group of consumers singled out for

an advertisement or campaign” When you use composition you can see the

importance of target audience Media Vehicle users; are bigger (ex. Super Bowl audience > Ad audience>Target audience

+Audience Geography

Global Advertising National Advertising Regional Advertising Local Advertising

Co-op Advertising– national/global advertisers and local sales outlets (e.g., car dealers) National manufactures sold locally

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Advertising Procedures

Types of research?Obj. (marketing…)Adv. In special eventsPositioningCreative strategyMedia planningCrisis managementEvolution

+ Advertising Plan Procedure

Marketing Problem

Media Planning

Situation Analysis

Marketing Strategy

Creative Strategy

+Marketing Problems

Marketing 4Ps Product, price, Place, Promotion

Marketing problems Declining sales in BR Competitor’s new brand in BR market Customers’ brand switching Severe competition or dominant

competitor in a new market

+Advertising Procedure Situation Analysis

Identify the details of the problem Get a bird’s-eye view Market, competitors, technology E.g., how to increase sales volume? Try to find the solution

Marketing Strategy State Marketing Objectives Spell out the actions to accomplish those

objectives

+Advertising Procedure

Creative Strategy What is to be communicated? How it will be executed? What copy will be used to communicate the

message Whether creative strategy affect overall

media planning decisions E.g., How to say?

+Advertising Procedure

Media planning Sets the tone and guides the direction the

media decisions will follow Media Objectives ->> Strategy ->> Tactics 5 National tv stations: CW, ABC, NBC, cbs ,

fox National new papers 3

Ny times, USA Today, The Wall Street Journal

BDI: Brand development index

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Market Analysis

+Market Analysis

Key questions

To whom shall we advertise? What internal and external factors may

influence the effectiveness of advertising campaign?

Where and when should we focus our efforts?

Reach (how many target audiences) and frequency (how often)?

+To Whom Shall We Advertise?

Target Selection

How do we find out our target market? Situation Analysis Client Account Planner Marketing department Primary and Secondary Research

+What Internal & External Factors Are Operating?Internal factors- you can control

Product, brand, company reputation, CEO image Media budget, managerial and administrative

capabilities, the organization of the agency

External- something we cannot control Economy Technology Competitions …

+Where to Advertise?

Geographic considerations Advertise wherever the brand is distributed Force distribution by creating a demand for

a brand through advertising even though the brand is not yet distributed

Is it better to advertise in geographic markets …where sales have been good? (defensive

strategy)or where sales have been poor…but there is

potential? (offensive strategy)

+Where to Advertise?

Defensive Strategy Advertise where sales have been good

“It is always good sense to fish where the fish are”

Have sales in the good markets been fully exploited?

Is advertisers missing productive new markets by placing most advertising in the best markets?

Minimize risk and maximize potential

+Where to Advertise?

Offensive Strategy Advertise where a brand’s sales are

low The risks must be carefully weighed

Think why? Distribution? Insufficient ad expenditures? Some other reasons? Can these problems be corrected?

+When to Advertise?

Depend on a number of important considerations

when sales are greatest or lowest Budget Constraints When Competitors advertise Availability of the product Promotional Requirements

+Reach and Frequency

Reach Refers to how many different people are

exposed to a vehicle at least once Frequency

Refers to how often they are reached in a given period (often four weeks)

# of times exposed to the media vehicle not necessarily to the ad itself

Inverse relationship b/w R&F within fixed GRPs They usually must trade off reach and

frequency in a fixed GRPs

+Reach and Frequency

Reach Weighting Whenever anything New is being

planned E.g., new distribution, new features of a

product, new packaging, new models

Frequency Weighting Whenever repetition is the key selling

strategy To compete in a highly competitive market When a brand is sold frequently

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Advertising Agency

+Advertising Agency

“… an organization of professionals who provide creative and business services to clients related to planning, preparing, and placing advertisements ...”

+Ad Agency

Full-service ad agency

Account management services Marketing research services Creative and production services Media Planning Services Administrative services

+Specialized Ad Agencies

Specialized ad agencies Creative Boutique: Ad effectiveness

depends on originality in concept, design, and writing

Media Buying Service: Provide clients and agencies with detailed analysis of the media buy

Interactive (Social networking) agencies: Growth of the Internet and the heightened interest in IMC

+Other External Facilitators

Marketing & advertising research firms

Consultants: Creative, media, database

Production facilitators

Software firms: web tracking

+Agency Compensation

Commissions Around 15%

Markup Charges Production cost + fixed % (15% to 20%)

Fee System Hourly rates or by project

Pay-for-results Specified objectives More advertising agencies are using fee based

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Ad Agency People

+Account Management/Planning

Account Manager (AM) or Account Executive (AE)

Leader of account teamDeals directly with clientMarketing consultant

+Creative and Production

Copy Writer and Graphic Designer

Develop ideas and create ads

Creative director (CD) Leader of creative team(s)

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Advertising CreativeArt Director

Person most responsible for the graphic image of the ad.

Makes decisions about using art or photography in print.

Copywriter Person who shapes and sculpts the

words in an ad.

+Advertising Research

Marketing/Advertising Research department

Conduct various marketing research and collect primary data

More data are generated by other market research suppliers (secondary data)Nielsen ratingsCensusChoices 3/ Simmons one View

+Media Planning

Media Planner

Plan timing and placement of advertising Responsible for working with creative teams

and account planners in finding efficient ways to get the right message to the right people at the right time

+Administrative Services

Traffic manager Serve as a traffic cop for projects in agency Make sure projects are moving as planned Typically, intro position

+Next Classes – September 1 – 10 September 1

Advertising Research Overview & Target Selection Read – Glidden case study

September 3 Secondary Data Analysis and Text Mining in

Advertising* (Guest Lecture) September 8

Setting Objectives and Consumer Behavior Read – Glidden case study

September 10 Sports Marketing & Advertising in Super Bowl

[DUE: IRB Certificate] Group selection (mini campaign) Read – Glidden case study