Marketing Chapter 2 Advertising Media Research Planning And Buying Agencies That Dont Rely Outside

Unlock access to all the studying documents.

View Full Document

Chapter 2: Advertising

Media Research, Planning, and Buying

 Agencies that don’t rely on outside media specialists have a media department that

recommends to the client the most efficient means of delivering the message to the

target audience. That department has three functions: research, planning, and buying.

Internal Operations

 The departments that serve the operations within the agency include the traffic

department, print production, as well as financial services and human resources.

The traffic department is the lifeblood of the agency, and its personnel keep track

of everything that happens.

Collaboration

 Agencies may have people in specialized roles, but collaboration is still the basic

organizing principle within an agency.

CHANGES IN THE PRACTICE OF ADVERTISING

Because of the Great Recession and the impact of online communication, advertising is

now at a point in time when things will never quite be the same again within the industry.

The marketing world is now multi-channel, multi-audience, and consumer-controlled

with interactive communication. It has little resemblance to the past.

Consumer Takes Control

 “The days of pounding people with images and shoving those images down their

eyeballs are over,” according to Procter and Gamble’s former global marketing

officer Jim Stengel. This change, which was referred to in the Figure 2.2 timeline,

is causing some shifts in the way the advertising business operates.

Weakened Media and Blurred Lines

 One of the biggest changes impacting the advertising industry is the changing media

environment. The big bomb that has fragmented the media world is digital media,

which appear in so many different forms that it’s impossible to keep up with them.

The newspaper industry has been particularly wounded, with some observers now

asking if newspapers are dead.

Chapter 2: Advertising

 Traditional media are trying to adjust by transforming themselves into new digital

formats. New personal media, such as iPhones, iPods, iPads, BlackBerries, and

Kindles are real shape-changers. Commercials that used to be the province of

television are now just as likely to appear online, as well as on mobile devices.

Changes such as these must be considered when creating media plans.

 The line is also blurring between traditional marketing communication functions.

For example, public relations firms are now being challenged to make more creative

content for its clients in a variety of areas other than just public relations.

Integrated Communication and Real-Time Advertising

 The original philosophy of advertising was essentially one-way communication, with

a brand sending a message to a prospective customer. Brands do still send messages,

but so do consumers. If brand stewards are smart, they are now listeners and

responders as well as senders. They are truly communication managers, and the

communication is much more interactive than in the past. Because of interactive

online delivery, messages can be sent, received, and responded to in real time, just

like a personal conversation.

Effectiveness

 Efficiency is an advantage in this new marketing communication world. Agencies

that are creative in finding new ways to deliver cost efficiencies have a real advantage

in their client dealings.

 There is also a concern about effectiveness. Effective ads are ads that work. That is,

they deliver the message the advertiser intended and consumers respond as the

advertiser had hoped.

Chapter 2: Advertising

Integrated Marketing Communication

 Although effectiveness is a central theme for this book, another central theme is

integration. The search for effective communication has led many companies to focus

on the consistency of their brand communication in order to more efficiently to

establish a coherent brand. We call this practice integrated marketing communication

(IMC) – the primary approach for total brand communication.

End-of-Chapter Support

REVIEW QUESTIONS

2-3. Analyze the Gatorade campaign discussed in this chapter and compare its key

aspects to the modern definition of advertising.

The definition of advertising is changing because of new technology, media shifts, and

cultural changes. The modern definition of advertising embraces interactivity between

brand and consumer through user-generated content, the importance of word-of-mouth,

and the effective use of digital and social media. The Gatorade campaign illustrates how

each of these can be used to effectively strengthen marketing communication to create a

winning brand.

2-4. Advertising plays four general roles in society. Define and explain each one in

the context of the “1984” commercial featured in the chapter.

Advertising plays a marketing, communications, economic, and social role in our society.

The 1984 commercial transformed a product into a brand by creating an image and

personality for the Macintosh, as well as meaning for the brand. This is an example of

advertising’s marketing role. That brand image was effectively communicated to

consumers through a television ad that was run during the Super Bowl and internet

websites, an example of advertising’s communication role. Its success in generating

Chapter 2: Advertising

strong demand for the product among large groups of people, resulting in a high level of

sales, is indicative of its economic role. It also evoked social commentary by presenting

an image of Big Brother and subtly implying the need for resistance to such notions of

conformity, an example of its social role.

2-5. What are the four components of advertising and what key concepts and

practices do they represent?

The four key components of advertising are:

Strategy: This is the logic and planning behind the advertisement. It is stated through

objectives that may focus on sales, differentiation of the product from competition,

segmentation and targeting, branding, or other business priorities.

Message: The concept behind a message and how it is expressed based on research and

consumer insights with an emphasis on creativity and artistry.

Media: Various media have been used by advertisers over the centuries including print,

2-6. Trace the evolution of advertising and the current developments that shape the

practice of advertising. In your opinion, what are the five most important changes

that have shaped advertising as we know it today?

The evolution of advertising is divided into six stages. They are:

The Early Age of Print: Mechanized printing spurred literacy levels, which encouraged

businesses to broaden the reach of their advertising. Ads from these early years look like

what we call classified advertising today. Their objective was to deliver information. The

primary medium of this age was print, particularly newspapers, although handbills,

posters, and hand-painted signs were also important.

Chapter 2: Advertising

The Scientific Era: In the early 20

century, modern professional advertising adopted

scientific research techniques. Advertisers believed they could improve advertising by

blending science and art. During the 1930s and 1940s, Daniel Starch, A.C. Nielsen, and

George Gallup founded research organizations that are still part of today’s advertising

industry. The practice of target marketing evolved as media became more complex. And

when television commercials came on the scene in the early 1950s, a huge new revenue

stream was introduced to the industry.

The Creative Revolution: The creative power of agencies exploded in the 1960s and

1970s, a period marked by the resurgence of art, inspiration, and intuition. Largely in

response to the previous emphasis on research and science, this revolution was inspired

by three creative geniuses: Leo Burnett, David Ogilvy, and William Bernbach.

The Era of Accountability and Integration: Starting in the 1970s, the industry-wide focus

was on effectiveness. Clients wanted ads that produced sales, so the emphasis was on

research and measurement. Agencies recognized that their work had to prove its value.

2-7. Who are the four key players in the world of advertising, and what are the

responsibilities of each?

The Advertiser: Advertising begins with the advertiser, the company or organization

that uses advertising to send out a message about its products. The advertiser initiates

the advertising effort by identifying a marketing problem that advertising can solve.

The advertiser also makes the final decisions about the target audience and the size of

the advertising budget. This person or organization approves the advertising plan, which

contains details outlining the message and media strategies.

The Advertising Agency: Advertising agencies create, produce and distribute the

messages. Advertisers hire independent agencies to plan and implement part or all of

Chapter 2: Advertising

would be on its own. Not all advertising professionals work in agencies. Large

organizations often manage the advertising process by setting up either an advertising

department (sometimes called marketing services) or by setting up their own in-house

agency.

The Media: The media is composed of the channels of communication that carry the

message from the advertiser to the audience. We refer to these media as vehicles because

2-8. We discussed five categories of agency jobs. Explain each one and identify

where your own personal skills might fit in.

Account Management

The account management department acts as a liaison between the client and the agency.

It ensures the agency focuses its resources on the client’s needs. The account team

summarizes the client’s communication needs and develops the basic “charge to the

agency.” Once the general guidelines for the campaign have been established, the account

management team supervises the day-to-day development of the campaign or ad.

Account Planning and Research

The account planning group gathers all available intelligence on the market and

consumers and acts as the voice of the consumer, making recommendations based on the

consumer’s wants, needs, and relationship to the client’s brand. Jobs in this area may be

preferred by persons who enjoy the detail-oriented, scientific approach toward problem

solving that market research requires.

Chapter 2: Advertising

Creative Development and Production

A creative group includes people who write (copywriters), people who design ideas for

print ads or television commercials (art directors), and people who convert these ideas

Media Planning and Buying

Agencies that don’t rely on outside media specialists have a media department that

recommends to the client the most efficient means of delivering the message to the target

audience. That department has three functions: research, planning, and buying. This is

Internal Operations

The departments that serve the operations within the agency include the traffic

department, print production, as well as financial services and human resources.

The traffic department is the lifeblood of the agency, and its personnel keep track of

2-9. What major challenges are affecting the current practice of advertising?

Discuss why effectiveness is important to advertisers.

One of the biggest challenges impacting the advertising industry is the changing media

environment. The big bomb that has fragmented the media world is digital media, which

appear in so many different forms that it’s impossible to keep up with them. The

newspaper industry has been particularly wounded. The new personal media, such as

iPhones, iPods, iPads, and Kindles are real game-changers. This has caused the lines to

blur between traditional marketing communication functions and tools and their newer

technology-driven counterparts.

Another major challenge is the emergence of user-generated content, which got started as

a trend in 2009 when CareerBuilder dismissed its agency and took its advertising in-

Chapter 2: Advertising

DISCUSSION QUESTIONS

2-10. Many industry experts feel that Apple’s “1984” commercial is the best television

commercial ever made. Watch it online on YouTube.com and analyze how it works. How

many of the basic advertising practices and concepts that we introduced in the historical

timeline of Figure 2.2 does it demonstrate? Why do you think the experts are so

impressed with this ad?

This ad is an excellent example of the principles that accompanied the Creative

Revolution, a period marked by the resurgence of art, inspiration, and intuition. The ad

used a creative blend of inherent drama, cultural archetypes, and symbols to build an

enduring brand. Each of these elements is an indicator of advertising history’s Creative

Era.

2-11. In class, Mark tells the instructor that all this “history of advertising” stuff is

irrelevant. The instructor asks the class to consider why it is important to understand the

historical review of advertising definitions and practices. What would you say either in

support of Mark’s view or to change his mind?

One side: History can teach us some important lessons in advertising. For thousands of

years, advertising has been about creating a message and sending it to someone in the

hope that he or she will react in a certain way. If the consumers react as the advertiser

The other side: Although history is always relevant, society and technology have changed

so much that we live in a different advertising world today. The components of modern

Chapter 2: Advertising

TAKE-HOME PROJECTS

2-12. Portfolio Project: Leo Burnett, a giant of the advertising industry, always kept a

file he called “Ads Worth Saving,” ads that struck him as effective for some reason. This

was his portfolio of ideas. He explained that he would go through that file, not looking

for ideas to copy, but because these great ads would trigger thoughts about how to solve

some problem. So, throughout this book, we will invite you to start your own portfolio.

A Facebook Profile: For this first assignment, choose one of the people from the

historical discussions in this chapter, someone you believe influenced the development of

modern marketing communication. Research this person on the internet and build a

2-13. Mini-Case Analysis:

Every chapter in this textbook opens with an award-winning

case. For this assignment you will be asked to analyze why it was effective and,

in many cases, come up with ideas for how that campaign could be extended to

another year or another market.

Reread the Gatorade campaign that was introduced at the beginning of this chapter and

wrapped up at the end of the chapter. Go online and see if you can find any other

information about this campaign. What are the strong points of this campaign? Its weak

points? Why was it deemed effective? If you were on the Gatorade team, would you

recommend that this campaign be continued or is it time to change it? In other words,

what happens next? Is there a spin-off? Develop a one-page analysis and proposal for the

next year.

Chapter 2: Advertising

in brand awareness, recall, and purchase intent. The campaign’s strength rests in its

successful integration of its high-risk ‘deprivation’ strategy with humor and celebrity

appeal. Its marketing communication agency, TBWA/Chiat/Day, “helps brands find

strategic and creative white space through the power of disruption.” When compared

with the ads of competitors in this product category, certainly the term ‘disruptive’ is an

accurate descriptor of this campaign. A weakness of the campaign could be that through its

‘deprivation’ strategy,’ it is possibly turning off consumers who buy the beverage just for the taste

or to re-hydrate after a long night of partying.

TRACE NORTH AMERICA CASE

Read the TRACE case in the Appendix before coming to class.

2-14. In class discuss the following:

1. In what ways does the TRACE case reflect the expanded definition of what

advertising is?

2-15. Write a one-page explanation of the campaign.

ADDITIONAL MATERIAL

ASSIGNMENTS

Individual Assignments

1. Research the Web to locate information about recent winners of various awards, such

as the Effie Awards, the Clios, and the Cannes Lion Award. Upon what was receipt of