moriarty_app9_inppt_01

Report
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Part 1
Enduring Principles in Times of Turmoil
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4.
What is advertising, how has it evolved, and what
does it do in modern times?
How have the key concepts of marketing
communication developed over time?
How is the industry organized – key players,
types of agencies, and jobs within agencies?
How is the practice of advertising changing?
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Veni Vidi Vici
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The definition has evolved over time.
It includes:

Identification
◦ Dating back to ancient times, advertising
has identified a product and where it was
sold.
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Lincoln Cathedral-1300 A.D.
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
Information
◦ Advances in printing
technology expanded
literacy, making
commercial messages
available to the
masses.
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
Persuasion
◦ With widespread marketing, focus
expanded from hype to branding,
and now includes both.
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
http://www.youtube.com/watch?v=DXRaboSo70
A&feature=related
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
“Advertising is a form of persuasive
communication that uses mass and interactive
media to reach broad audiences in order to
connect an identified sponsor with buyers (a
target audience), to provide information about
products (goods, services, and ideas), and
interpret the product features in terms of the
customer’s wants and needs”
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Six basic attributes of
advertising
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3.
4.
5.
6.
Paid communication
Sponsor is identified
Can be one-way,
two-way, multiple-way
Reaches a broad audience
Conveyed through mass
media, interactive media,
word of mouth
Seeks to inform or
persuade
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Advertising is a sponsored media message intended to
persuade you to think, do, or buy something.
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Other tools in the promotional toolkit:
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
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Merchandising
Publicity
Public relations
Direct-response
Event Marketing
Other specialties
Together, these tools are known as marketing
communication, or marcom.
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The marketing and communication role
 It transforms a product into a distinctive brand by
creating an image, and sells stuff quick(er)
Economic and societal roles
 It works to create demand for brands and lower
prices for consumers.
 It shapes our self-image and sense of style through
things we wear and use.
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“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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
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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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Burger King
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Business-to-business advertising
◦ Sent from one business to another
Institutional advertising
◦ Establishes a corporate identity; attempts to win
the public over to the organization’s point of view
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
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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
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publishing as Prentice Hall
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The advertiser
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The organization sponsoring the message
Likely to have a marketing team that initiates the
advertising effort
Hires the advertising agency
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The agency
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
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Creates, produces, and distributes the message.
Employs experts who are passionate about their
work.
Can negotiate the best media deals for clients.
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The media
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Channels of communication that carry the message
to the audience.
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Many are large media conglomerates such as Time
Warner and Viacom.
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Mass media enables advertisers to reach many
people with a single message in a cost-efficient
way.
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Professional suppliers
and consultants
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
Provide specialized
services
to advertisers and
agencies.
Includes artists, writers,
photographers, producers,
printers, and other
freelancers.
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
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Full-service agency
◦ Encompasses account management, creative
services, media planning, and account planning.
In-house agency
◦ Is a part of the advertiser’s organization; helps to
control costs and maintain control over brand
image.
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
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Specialized agency
◦ Specializes in certain functions, audiences,
industries or markets.
Creative boutique
◦ A small agency that works only on the creative
execution of an idea or product.
Media buying service
◦ Specializes in the purchase of media for clients
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The A-List of Advertising Agencies
Here are a few of them:
◦ Crispin Porter + Bogusky: www.cpbgroup.com
◦ TBWA/Chiat/Day: www.tbwa.com
◦ Goodby, Silverstein & Partners:
www.goodbysilverstein.com
◦ R/GA: www.rga.com
◦ Tribal DDB: www.tribalddb.com
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

Agency networks
◦ Large conglomerations of agencies under a
central ownership
Holding companies
◦ One or more agency networks, usually with
multiple offices
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The five main areas:
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5.
Account management
Account planning and research
Creative development and research
Media research, planning, and buying
Internal operations
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From three main sources:
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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 billed each
month, based on
projected work.
Copyright © 2012 Pearson Education, Inc.
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Two recent trends:
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Based on performance: the agency is paid a
percentage of the client’s sales or marketing
budget.
Value billing: the agency is paid for its creative
and strategic ideas rather than for executions
and media placements.
Copyright © 2012 Pearson Education, Inc.
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