Advertising Management

Chapter 5

Course faculty Ayesha Pervaiz

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A product of fauji
group

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Chapter Objectives
1.
2.
3.
4.
5.

What activities are involved in advertising

management?
What roles do the companys overall mission,
products, and services play in advertising
programs?
When is it best to use an in-house advertising
approach and when is it better to employ an
external agency?
What are the steps of an effective advertising
campaign management program?
How should the functions performed by the
advertising account executives and the
advertising creative interact in preparing an
advertising campaign?
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Chapter Overview
Advertising management
Choosing an advertising agency
Advertising campaign management
Communications market analysis
Advertising goals
Advertising budget
Media selection
Creative brief

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Advertising Management
Evaluate role of advertising in IMC
program.
Select in-house or external agency.
Develop advertising management
strategy.
Develop creative brief.

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(Planning for JWT's Guy Murphy is actually using

them to influence how people engage with brands.
That may involve introducing Europe to sachets, or
getting his palm read by a desi astrologer.)

JWT's Guy
Murphy:
Planning is not
just about
peddling
insights
Global planning
chief JWT
Course faculty Ayesha Pervaiz

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Young and Rubicam

www.yr.com

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In-House or Advertising
Agency
Decision Criteria

The size of the account

The media budget
Objectivity
Product complexity
Creative ability

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Budget spent on big

accounts
75-15-10
75 : buys media time or space
15 : goes to agency for
creative work
10 : spent on actual
production of add

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External Agencies
Boutique ------------------ Full-service

Advertising agencies
Media service companies
Direct marketing agencies
Consumer and trade
promotion specialists
Public relations firms
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Media service companies negotiate and purchase

media packages (called media buys) for companies.

Directmarketing agencies handle every aspect of a

direct-marketing campaign, either through telephone
orders , Internet programs, or by direct mail. Some
companies focus on either consumer promotions, trade
promotions, or both. These companies assist in
developing promotions such as coupons, premiums,
contests, and sweepstakes. They also provide assistance
in making posters, end-of-aisle displays, and point-ofpurchase displays.

Course faculty Ayesha Pervaiz

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 Public relations firms provide experts to help

companies and individuals develop positive
public images.

PR firms are often called in for damage control

when negative publicity arises.

In-house members of the organization can

render these activities, just as an in-house
marketing department can perform advertising
and IMC programs.

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Whole Egg Theory

New trend in advertising

Young and Rubicam Ad Agency
Total success in the marketplace
Integration of marketing
approach.

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THE CONCEPT

The concept of the whole egg theory is

to move from selling a clients products
to helping the client attain total success
in the marketplace. Achieving success
requires integrating the marketing
approach by offering a fuller array of
services to both business and consumer
clients. Thus, as client companies began
to move toward more integrated
marketing approaches, agencies such as
Young & Rubicam captured more
accounts.
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Whole egg
Advertising, technology, media buying,
brand planning, public relations, and
marketing and business strategies

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 Advertising is first and last, a

people driven business

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Choosing an Agency
1.
2.
3.
4.
5.

Set goals.
Select process and criteria.
Screen initial list of applicants.
Request client references.
Reduce list to 2-3 viable
agencies.
6. Request creative pitch.
7. Select agency.
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Key points
Set Corporate goals:
Without clearly understood goals, it is virtually
impossible to choose an agency because company
leaders may not have a clear idea what they want
to accomplish.

Select process and criteria:

Even firms with experience in selecting agencies should set
selection criteria in advance. The objective is to reduce biases
that may enter into the decision. Emotions and other feelings
can lead to decisions that are not in the companys best
interests

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Evaluation Criteria
Selecting Advertising Agency

Size of agency
Relevant experience
Conflicts of interest
Creative reputation
Product capabilities
Media purchasing capabilities
Other services available
Client retention rates
Personal chemistry
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Key questions for agency

selection

A firm that needs an agency to produce

a television commercial and also buy
media time should check on these
activities as part of the initial screening
process. Media buying skills are
important. Questions to ask include:
Does the agency buy efficiently?
Is the agency able to negotiate special
rates and publication positions?
Does the agency routinely get
bumped by higher-paying firms, which
means ads do not run at highly desirable
times?
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The final three selection criteria

other services available,

client retention rates,
and personal chemistry
Preparing a creative pitch is time-consuming
and costly for the advertising agencies;
therefore, agencies only want to spend time
on preparing pitches with a decent chance of
being accepted.
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SHOOTOUT
Advertising agencies that are chosen to compete for
the contract provide a formal presentation addressing
a specific problem, situation, or set of questions. This
process is called a shootout.

The presentations reveal how each agency would deal

with specific issues that arise as a campaign is
prepared. This helps a client company decide which
agency best understands the issues at stake and has
developed an advertising or integrated
communication approach that will solve the
problem or issue

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Example.
In competing for the new NorwestWells Fargo
account, the firm DDB worldwide communication
group , was chosen over the incumbent agency,
Carmichael Lynch, because Fargo executives
believed DDB had greater strategic insights,
a better range of services, higher-quality creatives,
and a more thorough media plan.
DDB was able to show how the agency intended to
combine the strength of Wells Fargos 150-year
heritage with the excellent customer service
qualities of Norwest. This presentation led to the
decision to hire DDB. It came after Fargo executives
listened to the presentations of both agencies and
asked key questions about who would actually be
working on the account
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Course faculty Ayesha Pervaiz

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Advertising Planning and

Research
General pre-planning
input(read up on the client )
Product specific-research
Major selling idea*

Qualitative research
Anthropology
Sociology
Psychology

Value and lifestyle model

(VALS)
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Major selling idea

The Got milk? theme emerged from productspecific research. Customers were asked to go
without milk for a week and then to report back to
the agency. The method is called a deprivation
approach. The advertising agencys creative team
learned that a key selling point could be to focus on
how well milk fits with a persons lifestyle. Doing
without it (deprivation) made people aware of the
vital role milk plays in eating cereal, cookies, and
other snacks and food
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Course faculty Ayesha Pervaiz

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Key Advertising Personnel

Creatives (idea /usp in
add )
Key Account managers
Develop reports (called stewardship
reports) help clients understand the
process and the outcome more clearly

Traffic managers( media

scheduling)
Media planners
Media buyers
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Steps in Advertising Campaign

Management
Review communication market analysis.
(media watching habits of target market)
(the media utilized by competition)
Establish advertising portion of IMC objectives.
Review advertising budget.
Select media.
Prepare creative brief.

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Communication Market
Analysis
Review
Competitors
Opportunities
Target markets
Customers
Product positioning

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Advertising Goals
To build brand image

Top of mind*
First choice

To
To
To
To

inform
persuade*
support other marketing efforts
encourage action

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Top of mind
That name has the property of being a top
of mind brand.
For example, when asked to identify
fastfood restaurants, McDonalds and
Burger King almost always head the list.
The same is true for Nike and Reebok
shoes.
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To persuade
Goals of advertising programs is persuasion.
Advertisements can convince consumers
that a particular brand is superior to other
brands.
They can show consumers the negative
consequences of failing to use a particular
brand.
Changing consumer attitudes and
persuading them to consider a new
purchasing choice is a challenging task.
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Advertising Budget
Manner of
Continuous
Distribution

schedule(advertise in level
amounts year round adds
on bilboards)
Flighting schedule(peak
times)
Pulsating schedule
Continuous adds (high
intensity-more
adds on more 5 - 35
Course faculty Ayesha Pervaiz

Creative Brief
Refer to handout

The
The
The
The
The

objective
target audience
message theme
support
constraints

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Left Right Brain Ads

Left brain advertisement

Logical, rational side of brain

Manages numbers, letters, words, and
concepts
Rational appeal

Right-brain advertisement

Emotional side of brain

Manages abstract ideas, images, and
feelings
Emotional appeal
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