Wk 3

clow_imc08_im_05.pdf

Home >Business & Finance homework help >Marketing homework help >Wk 3

Chapter 5 Advertising Campaign Management CHAPTER OBJECTIVES Students should be able to answer the following questions: 5.1 Why is an understanding of advertising theories important in the advertising

management process? 5.2 What is the relationship of advertising expenditures to advertising effectiveness? 5.3 When should a company employ an external advertising agency rather than

completing the work in-house? 5.4 How do companies choose advertising agencies? 5.5 What are the primary job functions within an advertising agency? 5.6 What are the advertising campaign parameters that should be considered? 5.7 How does a creative brief facilitate effective advertising? 5.8 What are the implications of advertising management in the global arena? OVERVIEW Section two of this textbook describes the role advertising plays in an integrated marketing communications program. Figure 5.1 portrays the overall IMC approach. The three chapters in this section focus on developing an effective IMC advertising program. Advertising campaign management is the process of preparing and integrating a specific advertising program in conjunction with the overall IMC message. Zehnder Communications Zehnder is a full-service marketing and communications agency located in Louisiana. The stated goal is to challenge traditional thinking. The company has a positive reputation as an employee-friendly employer.

Questions for Students:

1. What do you think of the concept of Vacation as Needed (VAN)? 2. Have you seen advertisements prepared by Zehnder?

3. Would you like to work for this company after graduating? Why or why not? Chapter 6 focuses on advertising design addressing issues such as the message strategy, appeals, executions, and the use of spokespersons. Chapter 7 presents traditional media that can be used for advertising. Although the use of social media and digital media are growing, traditional media remain vital for the advertising of most brands. Objective 5.1: Why is an understanding of advertising theories important in the

advertising management process? Advertising Theory The hierarchy of effects model and a means–end chain can both assist in developing effective campaigns. Advertisers also consider the mix of visual and verbal elements in a commercial or advertisement. Hierarchy of Effects The hierarchy of effects model helps to clarify the objectives of an advertising campaign. The model outlines six steps a consumer or a business buyer moves through when making a purchase: 1. Awareness 2. Knowledge 3. Liking 4. Preference 5. Conviction 6. The actual purchase Building brand loyalty requires all six steps. The hierarchy of effects model features similarities with theories regarding attitudes and attitudinal change, including the concepts of cognitive, affective, and conative elements. The most common sequence that takes place when an attitude forms is

Cognitive → Affective → Conative

The sequence parallels the six-step hierarchy of effects process; however, these six steps might not always constitute the route taken by a consumer. Question for Students: Does an “impulse buy” match up with the hierarchy of effects model?

Means–End Theory The second theoretical approach available to creatives, a means–end chain, suggests that an advertisement should contain a message, or means, that leads the consumer to a desired end state. These end states are personal values (see Figure 5.2). Means–end theory forms the basis of the Means–End Conceptualization of Components for Advertising Strategy (MECCAS) model. The MECCAS model explains ways to move consumers from product attributes to personal values by highlighting the product’s benefits. Advertisers can link the attributes of the product to specific benefits consumers can derive. Figure 5.3 provides an example. Verbal and Visual Images Visual images often lead to more favorable attitudes toward both the advertisement and the brand and tend to be more easily remembered than verbal copy. Visual images range from concrete and realistic to highly abstract. Advertisers often use visual imagery in international marketing. Global advertising agencies try to create visual Esperanto, the universal language that makes global advertising possible for any good or service. Question for Students: Can you think of an example of visual Esperanto? Business-to-Business Recently, many business advertisements have begun to rely more heavily of visual imagery. Objective 5.2: What is the relationship of advertising expenditures to advertising

effectiveness? The Impact of Advertising Expenditure Figure 5.5 displays a conceptualization of the relationship between marketing expenditures and advertising. Communication goals differ depending on the stage in the buying process that is being addressed.

Threshold Effects Threshold effects occur when enough attention is captured to increase sales. Diminishing Returns Figure 5.5 displays the relationships between advertising and marketing expenditures and sales and profit margins, as the sales-response function curve. Diminishing returns occur when advertising expenditures begin to lose their impact. The concave downward function indicates when further advertising expenditures result in diminishing returns. Carryover Effects Carry-over effects mean the consumer remembers the product or company when it is time to buy. Wear-Out Effects Wear-out effects means an ad can become old or boring. Decay Effects The decay effects model is displayed in Figure 5.6. Decay effects are when a company stops advertising, and consumers forget the brand or the company. A marginal analysis indicates when further advertising expenditures adversely affect revenues and profits. Random events can disrupt any advertising or promotional campaign at any time. Objective 5.3: When should a company employ an external advertising agency

rather than complete the work in-house? In-House Versus External Advertising Agencies The first step in developing an advertising program is choosing between an in-house advertising group and an external advertising agency. Figure 5.7 compares the advantages of an in-house facility to an outside agency. Advantages of in-house advertising include the followng:

• lower costs

• aligning all communications • the CEO can work closely with the marketing team • a better understanding of the product and company mission • ability to quickly produce commercials • lower turnover rate in the company

Advantages of external agencies are the following:

• can reduce costs by being more efficient with time • greater expertise • access to top talent • an outside perspective

Media service companies negotiate and purchase media packages (called media buys) for companies. Direct-marketing agencies handle every aspect of a direct-marketing campaign, through telephone orders (800 numbers), internet programs, and by direct mail. Some companies focus on consumer promotions, trade promotions, or both. These companies assist in developing promotions such as coupons, premiums, contests, and sweepstakes. A new group of agencies specialize in developing digital services. Other companies offer social media services to reach consumers and businesses through a wide array of social media techniques. Public relations firms provide experts to help companies and brands develop positive public images and for damage control responses when negative publicity arises. Budget Allocation Considerations A small account usually may not be attractive to an advertising agency. Smaller accounts generate lower revenues. If the agency charges a higher fee to compensate, it becomes too costly for the small firm. One rule of thumb marketers consider is a 75–15–10 breakdown, where 75 percent of the money spent on advertising should be used to purchase media time or space, 15 percent to the agency for the creative work, and 10 percent for the actual production of the ad. In contrast, for smaller accounts, the breakdown may be 25–40–35. This means that only 25 percent is being spent on media purchases. The other 75 percent of the funds goes to the creative and production work.

Crowdsourcing Crowdsourcing is the process of outsourcing the creative aspect of an advertisement. Unilever used this approach for meat snack brand as did Doritos for a Super Bowl ad. Harley Davidson also uses crowdsourcing. Question for students: Do you think consumer-generated ads are of equal quality to those created by advertising agencies?

Objective 5.4: How do companies choose advertising agencies?

Choosing an Agency Choosing the advertising agency that best suits a company requires careful planning. The steps of choosing an agency are displayed in Figure 5.9. Goal-Setting Before any contact is made with an advertising agency, it is important to identify and prioritize corporate goals. Clear goals help ensure a good fit between the company and the agency. Selection Criteria Even firms that have experience in selecting agencies must establish the process and criteria in advance. The objective is to reduce biases that may enter into the decision process. Common selection criteria, as shown in Figure 5.10, include the following: Agency Size Agency size is particularly important as it compares to the size of the company hiring the agency. Relevant Experience Relevant experience in an industry is a second evaluation criterion that companies use. At the same time, there can be no conflicts of interest. Creative Reputation and Capabilities One method of judging an agency’s creativity is to ask for a list of awards the company has received. However, awards do not always translate into effective advertisements,

Production and Media Purchasing Capabilities These capabilities should be examined if these services are needed. Other Criteria Other services available, client retention rates, and personal chemistry are revealed as the final steps of selection take place. Creative Pitch Advertising agencies are chosen to compete by providing a formal presentation addressing a specific problem, situation, or set of questions, called a shootout. The presentations reveal how each agency would deal with specific issues that arise during preparation of a campaign. Figure 5.11 lists some key do’s and don’ts associated with the creative pitch. Agency Selection Chemistry may be a factor in the choice. It can be assessed as members of the advertising agency meet with members of the marketing department. When the process has been completed, the agency and the company work together to prepare the advertising campaign. Objective 5.5: What are the primary job functions within an advertising agency? Roles of Advertising Personnel The primary roles within the agency are the account executives, creatives, traffic managers, and account planners. Account Executives

The advertising account executive is the key go-between for both the advertising agency and the client company. Creatives

Creatives are the people who actually develop and produce advertisements.

Creatives face long hours and work under enormous pressures to design ads that are effective and that produce results. Traffic Managers

These individuals work closely with the advertising agency’s account executive, creatives, and production staff. They schedule the various aspects of the agency’s work to make sure it is completed on time. Account Planners

The account planner becomes the voice or advocate for the consumer in the advertising agency. This person has the responsibility of making sure the creative team understands the consumer (or business). Account planners interact with the account executive and the client to understand the target audience of the ad campaign. Objective 5.6: What are the advertising campaign parameters that should be

considered? Advertising Campaign Parameters Creating effective campaigns requires attention to the advertising campaign parameters listed in Figure 5.12. Advertising Goals Advertising campaign goals are identified in Figure 5.13. Build Brand Awareness Brand awareness means the consumers recognize and remember a particular brand or company name when they consider purchasing options. The brand should be a top of mind brand. A top choice brand is the first or second pick when a consumer reviews his or her evoked set (possible purchasing alternatives). Many products become top of mind or top choice due to brand equity, the set of characteristics cause consumers or businesses to believe that a brand is different and better.

In business-to-business marketing, brand awareness is often essential to being considered by members of the buying center. Provide Information Typical information for consumers includes a retail store’s hours, business location, or sometimes more detailed product specifications. For business-to-business situations, information from some ads may lead various members of the buying center to consider a particular company as they examine their options. Information is one component in persuasion, which is another objective of various advertising programs. Persuasion Advertisements may be designed to convince consumers that a particular brand is superior to other brands. Changing consumer attitudes and persuading them to consider a new purchasing choice is a challenging task. Persuasive advertising is used more in consumer marketing than in business-to-business situations. Supporting Marketing Efforts Manufacturers use advertising to support trade and consumer promotions, such as theme packaging or combination offers. Both manufacturers and retail outlets use advertising in conjunction with coupons or other special offers. When ads are combined with other marketing efforts into a larger, more integrated effort revolving around a theme, the program is called a promotional campaign. Encouraging Action Many commercials encourage the audience to take action by dialing a toll free number or going to a website. Action-oriented advertising is heavily used in the business-to-business sector. The most common goal is to generate sales leads.

Media Selection Selecting the appropriate media requires an understanding of the media usage habits of the target market and then matching that information with the profile of each medium’s audience. In business-to-business markets, knowing the trade journals or business publications that various members of the buying center most likely read assists in the development of a print advertising campaign. Although media buys are guided by the advertising agency and the client company, media companies typically make the purchases. A trend toward involving media companies at an earlier stage in the campaign process has evolved. Taglines The key phrase in an advertisement, the tagline, should be something memorable that identifies the uniqueness of a brand or conveys some type of special meaning, such as Nike’s “Just Do It.” Figure 5.14 supplies some well-known taglines. Consistency Repeatedly seeing a specific visual image, headline, copy, or tagline helps to embed a brand into a person’s long-term memory. Visual consistency becomes especially important because most customers spend very little time viewing an advertisement. Variability theory suggests that variable encoding occurs when a consumer sees the same advertisement in different environments. These varied environments increase recall and effectiveness by encoding it into the brain through various methods. Creatives can generate the effect by varying the situational context of a particular ad. Positioning

Maintaining consistent product positioning throughout a product’s life makes it more likely that a consumer will place the product in a cognitive map.

Campaign Duration The length or duration of a campaign should be identified. Using the same advertisement for an appropriate period of time allows the message to embed in the consumer’s long- term memory. Account executives consider how long to run an advertisement. It should be changed before it becomes stale and viewers lose interest; however, at the same time changing ads too frequently impedes retention. Creating new campaigns also increases costs. Typical campaigns last about six months, but there are exceptions; some last for years. Objective 5.7: How does a creative brief facilitate effective advertising?

The Creative Brief A creative brief contains information for the creative. It contains information provided by the account executive and is used by the creative department to produce an advertisement that conveys the desired message. The basic components of a standard creative brief are provided in Figure 5.15.

The Objective

The first step in preparing the creative strategy is to identify the objective of the advertisement. Some possible objectives may include the following:

• Increase brand awareness. • Build brand image. • Increase customer traffic. • Increase retailer or wholesaler orders. • Increase inquiries from end-users and channel members. • Provide information.

The Target Audience A creative should know the target audience. The more detail that is known about the target audience, the easier it is for a creative to design an advertisement that will be effective. Target market profiles that are too general are not very helpful. The Message Theme The message theme outlines the key idea(s) the advertising program conveys.

The message theme is the benefit or promise (unique selling point) the advertiser wants to use to reach consumers or businesses. Message themes can be oriented toward either rational or emotional processes. A left-brained ad is oriented toward the logical, rational side, which manages information such as numbers, letters, words, and concepts. Left-brained advertising is logical and factual. A right-brained ad deals with emotions and works with abstract ideas, images, and feelings. The Support Support takes the form of the facts, which substantiate the message theme. The Constraints Constraints deal with legal and mandatory restrictions for ads, or company imposed requirements. They include the following:

• Legal protection for trademarks, logos, and copy registrations • Disclaimers about warranties, in which the disclaimer specifies the conditions

under which they will be honored • Disclaimers about offers spell out the terms of financing agreements, as well as

when bonuses or discounts apply • Disclaimers about claims identify the exact nature of the statement made in the

advertisement Objective 5.8: What are the implications of advertising management in the global

arena? International Implications There are two main differences in international advertising campaign management. First, while the processes may be similar, the availability of high-quality agencies may be limited in some countries. Second, the campaign must be adapted to the culture and customs of each country.

MyMarketingLab

Go to mymktlab.com to complete the problems marked with this icon .

Important Note to Professors: The MyLab feature at Pearson will grant you access to the Integrated Campaigns in Action within the Instructor’s Resource section. The authors’ blog for professors and students may be found at http://blogclowbaack.net/ Both methods contain actual print materials produced for the campaign. Broadcasts material such as video ads, TV ads, and radio ads are embedded using YouTube and Pearson servers. These features bring to life the exciting process of building integrated advertising and marketing campaigns. Most important, you will have access to insights and background information from the agencies and the companies involved in how the campaigns were created. IMPLICATIONS FOR THE ADVERTISING AGENCY (Note to professors—these materials are not in the text. They provide a method for you to summarize the chapter in a different way) The agency should study the client’s paperwork. It will help in designing ads and IMC programs. This includes the following:

• Mission statements • Goals • Past history (through magazine articles, minutes of meetings, etc.) • Past advertisements and other marketing activities • Advertisements of the competition

The agency should carefully match the pitch used to gain new clients with the needs and identities of prospective firms. The agency should be aware of the relative advantages an external advertising agency holds over in-house programs.

Agencies should remember the criteria companies use in the selection of advertising agencies. The agency should solicit client companies where they have a built-in advantage because your agency has the characteristics the target company is seeking. The company should, in return, make certain they are being clear about what they are looking for in an agency. The agency should build the capacity to provide as many marketing activities as possible. If the company cannot provide them directly, the agency’s management team should work diligently to construct a list of freelancers who are partner organizations, so that the agency can serve as a quality contact point for all types of marketing efforts, including the following:

• Direct marketing campaigns of all types • Sales and trade promotions • Public relations efforts • Advertising campaigns

The agency should build an effective work force through the following:

• Hiring quality creatives • Establishing strong bonds with current creatives • Recruiting regularly at schools and universities as well as other places where

quality creatives may be found in future years Client company leaders should expect that advertising agencies will help them work through every aspect of an advertising campaign, from goal setting, to media selection, to creative briefs, to the actual advertisements, to methods for measuring effectiveness. Both client companies and advertising agencies can build relationships with media buyers or media agencies that will be contracted to purchase media time (on radio and TV) and space (in print media). REVIEW QUESTIONS 5-1. Define advertising campaign management.

Advertising campaign management is the process of preparing and integrating a specific advertising program in conjunction with the overall IMC message.

5-2. What are the six stages of the hierarchy of effects model? Do they always occur

in that order? Why or why not? The model outlines six steps a consumer or a business buyer moves through when making a purchase:

1. Awareness 2. Knowledge 3. Liking 4. Preference 5. Conviction 6. The actual purchase 5-3. How are the three components of attitudes related to the hierarchy of effects

model?

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

The Cognitive → Affective → Conative sequences matches. Cognitive steps

include awareness and knowledge; affective includes liking, preference, and conviction; and the actual purchase is the conative component. 5-4. In a means–end chain, what are the means? The ends? How do they affect

advertising design? An advertisement should contain a message, or means, that leads the consumer to a desired end state. These end states are personal values. The message spells out the means and ends, thereby leading to a purchase decision. 5-5. Why are visual elements in advertisement important? What is the relationship

between visual and verbal elements? Can there be one without the other? Student answers will vary based on their personal response. Refer to the MyLab for

an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

5-6. What is visual Esperanto? Visual Esperanto is the universal language that makes global advertising possible for any good or service. 5-7. What are threshold effects? Diminishing returns? Carryover effects?

Threshold effects occur when an advertising program has run often enough to capture attention and increase sales. Diminishing returns occur when advertising expenditures begin to lose their impact. Carryover effects are present when the consumer remembers the product or company when it is time to buy.

5-8. What are the differences between wear-out effects and decay effects?

Wear-out effects means an ad can become old or boring. Decay effects occur when a company stops advertising, and consumers forget the brand or the company. A marginal analysis indicates when further advertising expenditures adversely affect revenues and profits.

5-9. What factors influence the decision of whether to use an in-house advertising

group or an external advertising agency?

• The size of the account, which should be matched to the company • The amount of money the advertiser can spend on media • The objectivity factor provided by an outside agency • The complexity of the product • Creativity concerns, possible greater creativity with an outside agency

5-10. Besides advertising agencies, what other types of organizations play roles in the communication process?

The other organizations include the following:

• Media service companies negotiate and purchase media packages (called media buys) for companies.

• Direct marketing agencies handle every aspect of a direct marketing campaign, either through telephone orders (800 numbers), internet programs, or by direct mail.

• Sales promotions or trade promotions agencies play a role. • Public relations firms are experts in helping companies and individuals develop

positive public images and are also called in for damage control when negative publicity arises.

5-11. What is crowdsourcing? What are its advantages and disadvantages?

Crowdsourcing is the process of outsourcing the creative aspect of an advertisement. It has the advantage of creating and excitement and customer engagement. It may not deliver as coherent of an advertising message over time because each ad will be unique.

5-12. What steps should be taken in selecting an advertising agency?

1. Identify and prioritize corporate goals. Develop agency selection process and criteria.

2. Initially screen firms based on credentials, size, capabilities, relevant experience, and conflict of interests.

3. Request client references.

4. Perform background checks with other firms and media agents. 5. Request written and oral presentations. 6. Meet creatives, media buyers, account executives, and other personnel that will

work with the account. 5-13. What evaluation criteria should be used in selecting an advertising agency? Evaluation criteria used in selecting an advertising agency include the following:

• The size of the agency • Relevant experience of the agency • Potential conflicts of interest • Creative reputation and capabilities of the agency • Production capabilities • Media purchasing capabilities • Other services offered • Client retention rates • Personal chemistry with the agency’s team

5-14. What is a creative pitch? Advertising agencies are chosen to compete by providing a formal presentation

addressing a specific problem, situation, or set of questions, called a shootout. The presentations reveal how each agency would deal with specific issues that arise during preparation of a campaign.

5-15. Describe the various roles within an advertising agency. The advertising account executive is the key go-between for both the advertising

agency and the client company. Creatives are the persons who actually develop and produce advertisements. Traffic managers schedule the various aspects of the agency’s work to make sure it is completed on time. The account planner becomes the voice or advocate for the consumer in the advertising agency. This person is responsible for making sure the creative team understands the consumer (or business). Account planners interact with the account executive and the client to understand the target audience of the ad campaign.

5-16. What advertising campaign parameters were described in this chapter?

The parameters include setting advertising goals, media selection, creating an effective tagline, consistency, quality positioning, and choosing a campaign’s duration.

5-17. Describe the terms top-of-mind and top choice.

When consumers are asked to identify brands that quickly come to mind from a product category, one or two particular brands are nearly always mentioned. These names are the top-of-mind brands.

A top choice brand is the first or second pick when a consumer reviews his or her

evoked set of possible purchasing alternatives. 5-18. What is a tagline, and what role does a tagline play in an advertisement?

The key phrase in an advertisement, the tagline, should be something memorable that identifies the uniqueness of a brand or conveys some type of special meaning.

5-19. Explain how variability theory can be used to create consistency in an advertising campaign. Variability theory suggests that variable encoding occurs when a consumer sees the

same advertisement in different environments. These varied environments increase recall and effectiveness by encoding it into the brain through various methods.

5-20. What elements are included in a creative brief?

1. The objective is what the advertiser seeks to build, which includes brand awareness, brand image, customer traffic, retailer or wholesaler orders, inquiries from end-users and channel members, or simply provide information.

2. The target audience is the primary audience. The ways to define a target audience include using demographics, interests, lifestyles, and other noticeable target market characteristics.

3. The message theme is an outline of key idea(s) that the advertising program is supposed to convey.

4. The support is the form of the facts that substantiate the message theme. 5. Constraints are legal and mandatory restrictions that are placed on

advertisements. CRITICAL THINKING EXERCISES

5-21. Pick two of the print ads in this chapter. Identify the part of the hierarchy of effects model the advertisement targets. Explain why. In terms of attitude formation, which sequence is being used? Justify your answer. Discuss the relationship of the visual and verbal elements in the ad. Which is prominent?

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

5-22. Choose one of the following brands. Develop a means-ends chain similar to the two that are shown in this chapter.

• St. Francis Medical Center • JD Bank • Orkin Pest Control • Maxwell House Coffee Student responses will vary based on the advertisements chosen. For St. Francis Medical Center, seeking medical help leads to a healthy outcome, which strengthens personal well-being in some manner. For JD Bank, saving and investing lead to self-respect and a sense of security. For Orkin Pest Control, keeping a house bug free creates inner peace and personal security. For Maxwell House Coffee, the outcome is pleasure.

5-23. Explain means-end theory and why it is important in advertising design. Pick two ads in this textbook other than the milk and ReRez used to explain means- end theory. Identify the attribute(s) featured in the two ads and the benefits derived from those attributes. Construct a means-end chain for one of the ads. (Be sure to provide the page number of the two ads you selected).

Student answers will vary based on their personal response. Refer to the MyLab for

an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

5-24. Think about recent advertisements you have seen or watched. Explain each of

the concepts listed below, then give an example of an advertisement you believe illustrates the concept. Explain why you believe the ad fits the category.

• Threshold effects

• Diminishing returns • Carryover effects • Wear-out effects • Visual Esperanto

Student answers will vary based on the ads they select. 5-25. Look through the ads in this chapter. Which ad do you like the best? Why?

Which ad is the least appealing to you? Why? Discuss the relationship between the visual and verbal elements. Locate one ad you believe displays the characteristic of visual Esperanto. Explain why.

Student responses will depend on the ads they select. 5-26. Review the responsibilities of each of the jobs under “Roles of Advertising

Personnel.” Which one most appeals to you? Why? Which is least appealing? Why?

Student answers will vary based on preferences for each type of job. Choices include account executives, creatives, traffic managers, and account planners.

5-27. Identify and briefly describe the five advertising goals presented in the chapter.

Examine each advertisement in this chapter and identify the primary advertising goal you believe is being used for the ad. Justify your choice.

Student answers will depend on the ads chosen. Student answers will vary based on their personal response. Refer to the MyLab for

an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

5-28. Choose one of the following. Using the information in this chapter, prepare a

creative brief. You can pick a brand from within the product category. a. Energy drink b. Frozen apple juice c. Fast food restaurant d. Museum e. Dress shoes

Student answers will vary but should include the components needed in the creative brief: the objective, target audience, message strategy, support, and constraints.

INTEGRATED LEARNING EXERCISES 5-29. Making the decision to use an external advertising agency as opposed to an

in-house program for advertising or some other aspect of the advertising function can be difficult. Access the American Association of Advertising Agencies website at www.aaaa.org. What type of information is available at this website? How would it benefit companies looking for an advertising agency? Explain your answer. How would it benefit advertising agencies? Explain your answer. The site offers news, commentary, business resources, talent development information, communities of members, advocacy and policy guidelines, and information about best practices in the industry.

5-30. A number of agencies assist business organizations with integrated

marketing communication programs. Whereas some firms try to provide a wide array of services, others are more specialized. Access the following association websites. What type of information is available on each site? How would the information provided be useful in building an IMC program?

a. International Social Media Association (www.ismaconnects.org) b. Brand Activation Association (www.bbalink.org) c. Outdoor Advertising Association of America (www.oaaa.org) d. Direct Marketing Association (www.the-dma.org) e. Digital Marketing Association (www.digitalmarketingassoc.com)

Answers will vary depending on what information is available at the time each website is accessed. It is important for students to relate the material to advertising and to the development of an integrated marketing campaign.

5-31. Part of an advertising management program includes understanding the

media usage habits of consumers and their attitudes towards various media. An excellent source of information in Canada is the Media Smarts Program at http://www.mediasmarts.ca/. Review the types of information available at the website. Examine the news articles. What type of information is available at this website, and how could it be used in developing an advertising campaign?

Answers will vary depending on what information is available at the time the website is accessed. Students should relate the information to advertising and to the development of an integrated marketing campaign.

5-32. Many advertisers direct ads toward the right side of the brain and develop advertisements based entirely on emotions, images, and pictures. Companies often advertise auto parts and tools with a scantily clad woman to attract the attention of men. The woman has nothing to do with the product, but gains attention. The rationale for using a sexy woman is that if consumers like her, they will like the product and then purchase that brand. Effective advertisements integrate elements from both the left side of the brain as well as the right. They contain elements that appeal to emotions as well as having rational arguments. A laundry detergent may be advertised as having the rational benefit of getting clothes cleaner but also contain the emotional promise that your mother-in-law will think of you more favorably. For each of the following websites, discuss the balance of left-brain versus right-brain advertising appeal.

a. Pier 1 Imports (http://www.pier1.com) b. Pig O’ My Heart Potbellies (http://www.potbellypigs.com) c. Popeyes Louisiana Kitchen (www.popeyes.com) d. Backcountry.com (www.backcountry.com) Student answers will vary based on their personal response. Refer to the MyLab for

an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

Answers will vary depending on the design of the website when it is accessed. 5-33. You have been asked to select an advertising agency to handle an account for

Red Lobster, a national restaurant chain. Your advertising budget is $30 million. Study the websites of the following advertising agencies. Follow the selection steps outlined in the chapter. Narrow the list down to two agencies and justify your decision. Then choose between the two agencies and ustify your choice. a. The Richards Group (www.richards.com) b. Leo Burnett (www.leoburnett.com) c. Slingshot (www.slingshot.com) d. mcgarrybowen (www.mcgarrybowen.com) f. Zehnder Communications (www.z-comm.com)

Student answers will vary. 5-34. A marketing manager has been placed in charge of a new chanin of sporting

goods stores to be introduced into the market. The company’s corporate headquarters are in Atlanta, and the firm’s management team has already decided to use a local advertising agency. The primary objective in choosing an agency is that the firm must have the capability to develop a strong brand name.

Type “advertising agencies in Atlanta” into a search engine. Identify an initial list of six ad agencies. Follow the steps outlined in the chapter to narrow the list to two agencies. (Please provide the URLs for all six agencies.) Discuss the steps you used in choosing the two agencies and why you selected them. Then design a project for the agencies to prepare as part of an oral and written presentation (shootout) to the company’s marketing team.

Student answers will vary based on their personal response. Refer to the MyLab for an opportunity to assign this question, and all starred MyLab questions, to a student discussion board.

5-35. Go to the authors’ website for this textbook at clowbaack.net/video/ads.html and watch the TV ad for JD Bank. Examine the two JD Bank ads featured in the 6.hapter section “Advertising Campaign Parameters.” Discuss how well the TV ad matches the print ads. What do you think is the primary goal of the TV and print ads? Discuss the concept of consistency, variability theory, and positioning as it relates to the TV ad and two print ads.

Student answers will vary. In general, the ads are consistent and do offer more than one medium.

Blog Exercises Access the authors’ blog for this textbook at the URLs provided to complete these exercises. Answer the questions that are posed on the blog. 5-36. Oreo Cookies: http://blogclowbaack.net/2014/05/07/oreo-cookies-chapter-5/ 5-37. John Deere: http://blogclowbaack.net/2014/05/07/john-deere-chapter-4/ 5-38. Advertising Agencies: http://blogclowbaack.net/2014/05/07/advertising-

agencies-chapter-5/

These exercises provide you with an additional tool to engage your students.

Student Project: Creative Corner This is an analysis for advertising Porsche.

Creative Brief for Porsche

Product: Porsche

Objective: To change consumers view that the Porsche can be driven every day

Target Audience: 30- to 55-year-old consumers, slightly more male, college educated, with annual incomes of approximately $100,000. Psychographically, the targeted market is a group known as individualists. They tend not to buy mainstream products. In automobile selection, they place greater emphasis on design elements, distinctiveness, and utility. Social status is important.

Background Information:

Market research found that potential customers balked at the idea of buying a car just to sit around. When asked what kept them from driving the car every day, they said, “I don’t feel comfortable driving in city traffic. It doesn’t have the technology that I need to manage my everyday life. It doesn’t have space for passengers.”

Message Theme: The Porsche can be driven every day for normal activities. It does not have to sit in the garage and only be driven on weekends. It has the newest technology and can comfortably carry passengers.

Constraints: All ads must contain the Porsche logo.

5-39. As an account executive for an advertising agency, discuss the creative brief in terms of the completeness of the information provided and whether the objective is realistic. What additional information should Porsche provide before a creative can begin working on the account?

The components that should appear in a creative brief are the objective, target audience, message strategy, support, and constraints. The components provided in this brief were the objective, target audience, and message theme, which were given in mild detail. The components that are missing are the support and constraints. This information would need to be given to the creatives before work on the project could begin. Students may add other ideas as part of the discussion.

5-40. The media planner for the Porsche account suggests a media plan consisting of cable television, print advertising, internet ads, and network advertising on Family Guy, CSI, Monday Night Football, Big Bang Theory, and American Idol. Evaluate this media plan in light of the creative brief’s objectives. Can these shows reach the target audience? What information does a creative and the account executive want from the media planner before starting work on actual commercials?

The media planner has a variety of options open in terms of the various media that could be used. Consideration should be given to cable television featuring the right kinds of programming to match the target market 25- to 35-year old, relatively well- to-do college grads. Sports shows seem logical. A specialty channel such as Lifetime may not be ideal. In print media, magazines should reflect the interests of these consumers, possibly through travel magazines and those related to sports cars. Internet advertising would be placed on links that this group would find. The problem with this media plan may be in only choosing to advertise on Fox shows, if the other networks have better similar demographics. Student evaluations of these programs will vary. The information needed would be the rest of the components needed in the creative brief, the support and constraints. The creative and the account executive would want this information to begin work.

5-41. Using the information provided in the creative brief, prepare a magazine

advertisement. Which magazines might match the target audience? Why?

Student answers will vary, but information should be followed in the creative brief. Magazines that would attract the target audience might include Car and Driver, GQ, Glamour, Rolling Stone, People, and Us.

CASES Case 1 Jake’s Trophy Shop 5-42. Explain how would the hierarchy of effects model apply to the four main

trophy-buying groups. Students should note for each group that six stages are involved. 1. Awareness 2. Knowledge 3. Liking 4. Preference 5. Conviction

6. The actual purchase The buyers have different needs; however, awareness and knowledge are “musts” for each group. Liking and preference are most crucial for groups that would make repeat purchases. 5-43. Would threshold effects, diminishing returns, and wear-out effects apply to Jake’s upcoming advertising program? Explain why or why not. Absolutely. The key would be to reach threshold effects and then not spend too much money once the ads start experience diminishing returns and wear-out effects. 5-44. Should Jake utilize a local advertising agency or do as much of the work as he

could by himself? Defend your response. Most likely, Jake should use an agency. They would know how to best reach each of the four target groups efficiently. 5-45. Would the concepts of top of mind and top choice apply to advertising for the second location of Jake’s Trophy shop? If so, how? If not, why not? If the ads have reached a wide enough audience in the area, then top of mind can be achieved. 5-46. Design two creative briefs. The first should seek the goal of enticing customers

in the south end of town to visit the new store, seeking especially to reach business-to-business buyers. The second should emphasize the “gag” gift line of trophies for both stores in order to increase sales following the launch of the second store.

Student briefs will vary but should clearly outline differing objectives and target audiences, which would in turn affect the message theme. Case 2 Classic Crystal 5-47. Using the internet, identify a glassware brand and/or manufacturer that

interests you. Based on the information provided for the brand, choose a particular type of glassware. Explain why you chose this particular brand, include the brand’s website and a screenshot of its main page.

Student responses will be based on the companies they choose.

5-48. Develop a means-ends chain that explains the purchasing process for the brand’s specific products. Student chains will depend on the products selected. 5-49. Using the internet, identify five advertising agencies in your area. Evaluate

each advertising agency in terms of its ability to handle an advertising campaign for your company. Choose one of the five to handle your account and explain why it was chosen. (Include each agency’s URL in your response).

Student choices will vary, depending on the area. 5-50. Develop a creative brief for an advertising campaign that you believe would

best fit your glassware company. The briefs will vary but should contain the following elements:

2. The target audience is the primary audience. The ways to define a target audience include using demographics, interests, lifestyles, and other noticeable target market characteristics.

3. The message theme is an outline of key idea(s) that the advertising program is supposed to convey.

4. The support is the form of the facts that substantiate the message theme. 5. Constraints are legal and mandatory restrictions that are placed on

advertisements. 5-51. Design a print ad that fits the creative brief you developed. Student ads will vary but could be shared with the class. MyMarketingLab

Go to mymktlab.com for the answers to the following Assisted-graded writing questions: 5-52. Explain in your own words the three primary advertising concepts presented in

this chapter: hierarchy of effects, means-end theory, and relationship of verbal and visual elements. Examine the two JD Bank ads shown in the “Advertising Campaign Parameters” section of the chapter. Discuss each of the concepts as it relates to the JD Bank ads.

5-53. You have been asked to select an advertising agency to handle an account for Red Lobster, a national restaurant chain. Your advertising budget is $30 million. Study the websites of the following advertising agencies. Follow the selection steps outlined in the chapter. Narrow the list down to two agencies and justify your decision. Then choose between the two agencies and justify your choice.

a. The Richards Group (www.richards.com) b. Leo Burnett (www.leoburnett.com) c. DDB (www.ddb.com) d. Lucas Design & Advertising (www.aladv.com) e. mcgarrybowen (www.mcgarrybowen.com) f. Zehnder Communications (www.z-comm.com)

Mymktlab Only—comprehensive writing assignment for this chapter.

Bonus Case

How to Win (and Lose) an Advertising Account

Being selected to manage a major advertising account is a difficult but enriching process.

For instance, consider the case of Atlanta-based Charter Behavioral Systems. Charter is

the largest provider of alcoholism and depression treatment services in the United States.

The goal was to select an agency to handle a $20 million television advertising account.

Charter identified some basic goals and developed a selection process that included the

criteria to use in the screening process. The six agencies identified for initial screening

were McCann Erickson, BBDO, Rubin Postaer, Carat ICG, Tauche Martin, and Bates

USA. The initial screening process was based on the following items:

• Size

• Capabilities

• Credentials and references

• Documented experience and past successes

Tauche Martin was dropped from the list because it was too small. Although the

management team at Charter believed the staff at Tauche Martin consisted of some very

bright people, the size of the account would have overwhelmed the firm. Bates USA was

rejected because Bates’ major client was Korean. A recent lag in the Asian economy

caused the leaders of Charter to fear that Bates might be forced to close its Atlanta office

if it lost its Korean client. Charter eliminated another agency based on reference checks.

From television station reps to media buyers, the consistent word was “run!” At the end

of the initial screening process, two agencies remained: Rubin Postaer and Carat ICG.

Rubin Postaer is a $550 million full-service agency based in Los Angeles. The firm is

known primarily for work with Honda, Charles Schwab, and Discover magazine. Carat

ICG is a $600 million agency with clients such as Ameritech, Midas, Primestar, and DHL

Worldwide.

To decide between Rubin Postaer and Carat ICG, Charter asked each to make a

creative pitch addressing a series of 10 questions. They were further instructed to think of

it as a “mock buy” in the Atlanta market. The companies were asked to provide their

projected list of media buys and the rationale for the buys. The most challenging aspect

of the creative pitch requirement was a roundtable discussion with at least five of the

agency’s media buyers. Although each agency’s management team could be present, the

managers were told not to answer questions posed to the buyers.

Carat ICG included employees in the final presentation who were not going to be part

of the account team. Although Charter’s management team felt that it was flattering to

have Carat ICG’s chairman present for the three-hour presentation, Charter believed

ICG’s approach was more of a sales presentation than a mock media buy.

ICG demonstrated a solid command of the strategies the agency believed Charter

should use in the Atlanta market. Unfortunately, ICG skimped on some logistical details.

Charter’s leaders also thought that when ICG presented the mock buy, its representatives

were quick, superficial, and had not spent a great deal of time laying out a total approach.

On the positive side, ICG’s senior vice president Jim Surmanek led the agency’s

presentation. Surmanek, the author of a media textbook, knew the media issues extremely

well. In the final evaluation, Charter concluded ICG clearly was superior at developing

an advertising strategy. The agency’s recommendations highlighted the company’s deep

understanding of Charter’s business.

In contrast, Rubin Postaer made a presentation using employees who would be

servicing the account. Chairman Jerry Rubin did not attend the meeting, although he did

meet with Charter’s management briefly to assure them of his commitment. Charter felt

Rubin Postaer made a serious mistake during the presentation. The presentation team did

not bring in a buyer for the direct-response media. ICG did. At the same time, Rubin’s

vice president of spot buying, Cathleen Campe, grasped quickly what was most

important. Campe flew in buyers from Chicago, New York, and Los Angeles to assist in

the presentation. These buyers spoke often, expressing their views. Charter concluded

that Rubin was more powerful in “branding” its media style with a label called “active

negotiation.” Rubin’s basic philosophy was that the toughest negotiations begin after

buying the media time. Rubin made the claim that the agency was willing to spend more

time monitoring media purchases than making the actual purchases. This advantage was

substantiated by all of the references.

(1) Which agency should Charter Behavioral Systems hire? Justify your answer.

Student answers will vary; however, they should provide a logical explanation of the choice. Both companies have similar references and abilities, so the only item left would be in their presentation abilities. Carat ICG used members that would not actually be doing the purchasing; this does not give Charter a good picture of how their company does business. Rubin Postaer used the people that would actually be doing the purchasing and even had buyers flown in. This gives a much better picture of their abilities. In the decision, Rubin Postaer will probably be chosen because Charter had a better sense of how the company would be presented to other companies.

(2) Should Carat ICG do anything differently the next time they make a

presentation? Why or why not?

Student answers will vary. The company should try to be clear about what it can offer a client. Rushing through a presentation may leave the audience feeling like all the material was not covered. Carat ICG may also have the people who would actually be doing the buying to make the presentation, which might portray a better image to potential clients.

(3) Should Rubin Postaer do anything differently the next time they make a

presentation? Why or why not?

Student discussions may suggest that Rubin Postaer should have the media buyer attend the presentation, or explain why he or she was not present. The people doing the presentations seemed to be informative so the company would only need to make minor modifications.

(4) Should “fuzzy” variables such as trust and confidence be the deciding factor in

choosing an advertising agency? Why or why not?

They should not be deciding factors, but they are important factors. First client companies should narrow down the agencies using selection criteria. Only after the choices have been reduced to two or three agencies should companies look at fuzzy variables when making their decisions. At the same time, a firm should trust and have confidence in their final selection for an advertising agency.