Professional Documents
Culture Documents
Week 2 CH 1
Week 2 CH 1
Advertising
and Promotion Management
Week 2/Chapter 1
FALL semester 2018/2019
Ch. 1: Advertising
1. Functions of advertising
2. History of advertising
3. Advertising industry
4. Advertising agency
5. Recent developments
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What is advertising?
What is advertising?
• Persuasive communication
• Identified sponsor
• Mass (and interactive) media
• Broad audiences
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Advertising’s basic functions
• Identification
• Identifies a product/brand and/or the
store where it’s sold.
• Information
• Advertising provides information about
a product.
• Persuasion
• Advertising may persuade people to
buy things.
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Advertising’s basic functions
• Reminding?
• Advertising could remind us about
some forgotten brand/product.
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Informative advertising
Persuasive advertising
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Reminder advertising
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Nike controversy/boycott
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San Francisco 49ers' Colin Kaepernick kneels during the national
anthem before an NFL football game against the Seattle Seahawks
to protest racial inequality and police brutality.
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https://www.cbsnews.com/news/nike‐just‐do‐
it‐ad‐campaign‐donald‐trump‐colin‐
kaepernick/
https://www.youtube.com/watch?v=mreQsQr
DF‐A
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Key components of advertising
1. Strategy
objectives, emotional appeal, brand reputation
2. Message
the concept, how it is expressed
Key components of advertising
3. Media
reaching target audience
4. Evaluation
KPIs and professional standards
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Common types of advertising
• Brand advertising
• Focused on long‐term brand identity and image
• Retail or local advertising
• Focused on selling merchandise in a geographical area
• Direct‐response advertising
• Tries to stimulate an immediate customer response
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Common types of advertising
• Business‐to‐business advertising
• Sent from one business to another
• Institutional advertising (PR advertising)
• Establishes a corporate identity; attempts to win the
public over to the organization’s point of view
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Common types of advertising
• Nonprofit advertising
• Used by not‐for‐profit organizations to reach customers,
members, volunteers, and donors
• Public service advertising
• Usually produced and run for free on behalf of a good
cause
• Specialized advertising
• Used to address specific areas such as health care, green
marketing, international campaigns
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Common types of advertising – a pragmatic
view
• Relational advertising (brand adv.)
• Used to improve company and brand’s image,
recognition…
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Relational advertising
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Relational advertising
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Transactional advertising
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Is advertising the only tool?
Other tools in the promotional toolkit:
• Publicity
• Public Relations
• Direct‐response
• Sales Promotions
• Personal Selling
• Interactive/Internet Marketing
Together, these tools are known as marketing
communication, or marcom.
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What roles does advertising play?
Marketing and communication roles
• It transforms a product into a distinctive brand by creating a
brand image.
Economic and societal roles
• Advertising works to create demand for brands and lower
prices for consumers.
• Advertising shapes our self‐image and sense of style through
things we wear and use.
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Bringing it all together
All advertising:
• Demands creative, original
messages.
• Must be strategically sound, well
executed.
• Is delivered through some form of
media.
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A key principle or why is advertising good for
you
“Advertising generates cost efficiencies by
increasing demand among large groups of
people, resulting in higher levels of sales and
ultimately, lower prices.”
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How did current practices and
concepts evolve?
Eras and ages
A timeline of advertising eras and ages:
• The Early Age of Print: 15th‐18th century
Mechanization spurred literacy, which encouraged
businesses to advertise beyond their locations.
• The Early Age of Agencies: 1840s‐1890s
As advertisers became concerned with creating ads that
worked, professionalism took shape.
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Eras and ages
A timeline of advertising eras and ages:
• The Scientific Era: 1900s‐1950s
Modern advertising adopted scientific research
techniques. Art and science were blended.
• The Creative Era: 1960s‐1970s
The power of agencies exploded, with a resurgence of
art, inspiration, and intuition.
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Eras and ages
A timeline of advertising eras and ages:
• The Era of Accountability and Integration:
1970s to present
Clients want ads that produced sales. The public expects
social responsibility. Managers adopted IMC to better
coordinate brand communication.
• The Social Media Era
In this new interactive world, consumers generate brand
messages and share experiences on social media sites.
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The advertising world
Who are the key players?
The organization (the client)
• The message sponsor or advertiser
• Likely to have a marketing team that initiates the advertising
effort
• Hires the advertising agency
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Who are the key players?
The Agency
• Creates, produces, and distributes the messages.
• Employs experts who are passionate about their work.
• Can negotiate the best media deals for clients.
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Who are the key players?
The Media
• Channels of communication that deliver messages and
engage audiences.
• Many are large media conglomerates such as Time
Warner and Viacom.
• The mass media enable advertisers to reach many
people with a single message in a cost‐efficient manner.
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Who are the key players?
Professional Suppliers
and Consultants
• Provide specialized services
to advertisers and agencies.
• Includes artists, writers, photographers,
producers, printers, and vendors who
supply user‐generated content online
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Types of agencies
• Full‐Service Agencies
• Encompasses account management, creative services,
media planning, and account planning.
• In‐House Agencies
• Is a part of the advertiser’s organization; helps to control
costs and maintain control over brand image.
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Types of agencies…..
• Specialized Agencies
• Specialize in certain functions, audiences, industries or
markets.
• Creative Boutiques
• Small agencies that work only on the creative execution of
an idea or product.
• Media‐Buying Services
• Specialize in the purchase of media for clients
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Types of agencies…..
• Digital Agencies
• Specialize in digital/internet marketing.
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Types of agencies
• Agency Networks and Holding Companies
• Large conglomerations of agencies under
a central ownership
• One or more agency network, usually with
multiple offices
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The Top Consolidated Agency Networks
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Types of agencies
The A‐List of Advertising Agencies in Croatia
• BBDO & Proximity: www.proximity.hr
• McCann Croatia: www.mccann.hr
• Bruketa&Zinic&Gray: www.bruketa‐zinic.com
• Imago Ogilvy: www.imago.hr
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How are agency jobs organized?
The five main areas:
1. Account management
2. Account planning and research
3. Creative development and research
4. Media research, planning, and buying
5. Internal operations
Let’s take a look at each one……
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Agency jobs......
Account management – Account services
• This team acts as a liaison between the client and agency –
the sales department.
• The account executive interprets the client’s marketing
research, strategy for the agency.
Account planning and research
• This team gathers market intelligence and acts as the voice
of the consumer.
• Strategic specialists research consumers’ wants, needs and
brand relationships.
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Agency jobs......
Creative development and production
• Includes copywriters, designers, art directors, and producers.
Media research, planning, and buying
• This department provides research, planning, and buying
services.
Internal operations
• Includes finance, human resources, etc.
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How are agencies paid?
From three main sources:
1. Commissions: based on media billings.
2. Fees: based on an hourly rate or project.
Also covers travel and various expenses.
3. Retainers: A regular amount invoiced each
month, based on projected work.
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How are agencies paid?
Two recent trends:
1. Based on performance: the agency is
paid a percentage of the client’s sales or
marketing budget.
2. Value billing: the agency is paid for its
creative and strategic ideas rather than
for executions and media placements.
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How is the Practice
of Advertising Changing?
Consumer in charge
• The days of pounding people with images, shoving them
down their eyeballs are over.
• Consumer‐generated advertising creates valuable brand
publicity.
• Consumers have taken control of media and marketing
through the Web and social media.
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Blurring lines and converging media
• Television is still a major player, but it is also evolving.
• Digital media has fragmented the media world with new,
ever‐changing forms.
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Integrated Marketing Communication (IMC)
The first principle of IMC:
“Everything communicates!”
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Integrated Marketing Communication (IMC)
• IMC is all about integration.
• IMC is the primary tool of brand communication.
• Brand messages must complement one another and
present the same basic brand strategy.
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Group project:
Agency organization assignment
• Assemble your team (inform your instructor)
• Brand your team/agency (i.e. name, logo)
• Prepare an organizational chart for your agency
• Some team members can have multiple roles
• Prepare short ppt with basic info and organizational chart to present
yourself
• Due: Sep 7, 23:59 CET
Hint: Demonstrate your creativity.
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