Advertising's Role in Marketing - Society Copy COMPLETE

8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE

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Advertisings role inMarketing

Advertising BBA/ MBA

SESSION 4


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Do products sell on their own?

Early 1900s post-industrial

revolution marketing wasproduct-focused.The belief: a good product

sells by itself .

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Ralph Waldo Emersonmousetrap !

Emerson, 19 th century intellectual, &philosopher

said: If a man can make a bettermousetrap..

the world would beat a ath to his 3


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CASE STUDY PUMA:

German athletic shoes...

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Pumas innovative retro-designscater to be trendy individualists wholike to make a style statement.

Pumas success in a crowded markethas earned the brand a place amongthe top three brands in Germany.


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CASE STUDY PUMA:


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Retailers praise Puma for itsdesigning creativity, eye-catching in-store merchandising displays.

To succeed a brand like Puma needsan effective advertising campaignoffering it customers outstanding value.


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CASE STUDY PUMA:


Much of the value is created bymarketing decisions that determineproducts design, ease of use, as well

as distribution, pricing, and marketingcommunication.

Advertising is just one part of the

total marketing effort however, aneffective advertising requires soundunderstanding of the clients

marketing program.


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CASE STUDY PUMA:


Apart from traditional advertising,

Puma also uses viral marketing , tospread the word especially aboutnew products, to an online network

of users.


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CASE STUDY PUMA:

German athletic shoes...Puma stays hip through designinnovation and also by linking upwith other icons , such the tennis

star Serena Williams.

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This helps create a distinctivebrand attitude & an innovativespirit that drives its mass marketingcommunication in non-traditionalways to connect with customers.


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Marketing over the years...

Marketing traditionally has been

seen as the task of creating,promoting, and deliveringgoods and services to consumers

and businesses.

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In most consumer-oriented firms

...Marketing has a major say inthe way a product is

conceived, designed,tested, produced,branded, packaged,priced, distributed &promoted .

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Marketing today is becoming ...

... increasingly customerfocused!

Businesses that have adoptedthis perspective, arerecognized as leaders incustomer-focused marketing

e.g. Harley-Davidson, Intel,IBM, Google, Coca-Cola...

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Marketings attention has...

...over the years moved frommeeting consumers needs &wants. ..

to understanding...to anticipating...to creating...

to co-creating consumersneeds & wants!

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Emerging trends in marketingcommunications...

Many forces today, impact acompanys marketingcommunications.

Financial pressures compelbusinesses to sign up agencies thatunderstand accountability.

Emerging social trends are affectingthe way marketing messages travel.Tasks performed by advertising

agencies are also changing . 13


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Companies expect advertisingagencies to deliver tangibleresults .

Every promotional activity mustyield measurable gains in sales,market share, brand awareness, orcustomer loyalty.

CEOs, CFOs and CMOs, all havean eye on advertising spends.

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Many companies rely less on the30sec TV spots - pursue alternativemeans of communication.

Names, profiles, & contactaddresses of prospective customers

are collected & tracked at brandactivation events.

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Changing roles in Ad-agenciesKey functions in an ad-agency:

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CREATIVEPLANNING &DEVELOPME

NT

ACCOUNTMANAGEMENT

[CLIENT

SERVICE]

MEDIAPLANNING &

BUYING

STRATEGICPLANNING


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CREATIVE

DEPARTMENT

ACCOUNTMANAGEMEN

T [CLIENTSERVICE]

The personsresponsible formaintaining a constant

link between the

agency & the client.

The Creative-Copy-Artteam responsible forcreating, inspiring,

delivering advertising.

Changing roles in Ad-agencies


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STRATEGICPLNNING

MEDIADEPARTMENT

The personsresponsible forplanning, buying media

(time or space) andplacing advertisements

in them. A specialist function

requiring in-depth

understanding of clientsbusiness & directingdevelopment of

advertising in the agency.



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Account management : Traditionalrole:

Understanding / interpretingclients marketing strategy. Utilizing agency resources(creative & media) to meet clientsadvertising needs.

Presenting agencys work andobtaining approvals.Managing client billing &payments.

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Creative development &production : creating, inspiring,delivering advertising.Home Team : Creative Directors,Creative Managers, Copy-writers, ArtDirectors, Producers and other staff.External support: Outsourcing of

creative work to freelance artists,directors & producers a commonpractice now - driven by cost &degree of expertise required.

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Media planning and buying : mediadepartment in full service agencies.

Three functions : planning, buyingand research.

Monitoring is generallyoutsourced.

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Strategic planning: specialistfunction provided by major advertisingagencies. Focus on:

Information/ insight gathering orresearch - analysis of data;Interpretation of client strategy;

Support for creative development;Strategic interaction with client oncampaigns.

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Internal agency services :1. Production

2. Traffic department to track

projects at hand in creative &ensure meeting of deadlines; and

3. Administration/HR, Finance .

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Growing demand for accountabilityrequires Account Managers to seekevidence of success of campaigns to

present to the client. Creative Directors/ Managers

develop advertisements & promotional

in-house. materials. Much productionwork outsourced to freelance artists.

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So what has Changed?


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Strategic Planner represents voiceof consumer in the agency. Creativeand Account Planners contribute ideasto client on strategic marketingdirection, and the types ofcommunication best suited to reaching

target audience.

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A new partnership has emergedamong Account Executives, BrandManagers, Account Planners, andCreatives.

Most advertising agencies areexpected to do more than createads.

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How impactful are these Ads.


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How are ad agencies paid?

Commission Basis A fixed percentage commission,traditionally 15% of Media Cost (nowabout 7-10% on average) paid to full-service agencies.

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How are ad agencies paid?

Fee Basis An annual fee agreed & paid by the

Client based on a calculation of:a. Man-hours spent on a client(workload);

b. Agreed % Overhead &c. Agreed % Profit.Fee works better for larger clients!

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WORKING WITH AN ADVERTISING AGENCY:Starting a New relationship

What Clients look for in an Agency?Competence : Quality of work

Expertise: Knowledge of industry,products Reputation : image aspects

Compatibility: ease in communication,responsiveness Cost Consciousness: working withbudgets

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THE PITCHCredentials presentationCampaign presentation

Appointing the AgencyContract or Agency Agreement

Resigning the old AgencyClearance / NOC


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Formal System ofdocumentation:

Briefs

Contact ReportsPresentations & reworkFinalization of CampaignsCampaign ApprovalsMedia Planning & SchedulingMedia Approvals, Placements &Monitoring

Invoices & Bills Collection


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Advertisings role in

Society

Advertising BBA/ MBA

SESSION 5


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Key topics to be discussed

1. The power of advertisingand its implications onsociety ;

2. Regulations and regulatoryagencies;

3. Key ethical issues &challenges;

4. Solutions & way forward.

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Advertisings Societal Role

Does advertising c reate amaterialistic culture, or does itsimply reflect the culture it exists

in?Critics believe advertising shapessocial trends.

Advertising professionals argueadvertising simply mirrorsprevailing value system.

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1. Advertising & demand creation:Does advertising drive people to

feel a need or want - sometimesunnecessarily?

Does advertising simply anticipateor fulfill a need?

Companies invest money onresearch to find out.

BUT, Steve Jobs believes it is notup to the customer to say what heneeds. 36


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Advertisings Societal Role 2. Shaping or mirroring society :

Does advertising cross linebetween reflecting social values &creating them?

Do Size 0 models in advertisingcause young women to have eatingdisorders?

Can advertising manipulatepeoples choices through nonstop TV,radio, print, Internet, and outdooradvertising?

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3. Over-commercializing society:Does advertising make people toomaterialistic?

Does advertising condition theaudience to believe the answer isalways a product?

Do product placements in sportingevents, entertainment programs orsoaps unduly influence customers ?

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Five key social responsibilityissues !

1. Poor taste & offensiveadvertising:

Some advertising affects peoplessensitivities based on language orvisuals used. Some make peopleuncomfortable in the presence ofadults or children.

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Five key social responsibilityissues!1. Poor taste & offensiveadvertising:

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Five key social responsibilityissues!

2. Use of sex in advertising: Use of sex attracts audiences andhas been deployed for years. Overexposure or irrelevant useraises the ethical question. Censorship codes are effectivesometimes, and sometimes not.

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Five key social responsibilityissues!3. Use of stereotypes in advertising:

Gender stereotypes: men asstrong, independent, andachievement oriented; women as

softer, nurturing, and moredependent home -makers. Racial and ethnic stereotypes;

Age-related stereotypes: olderwomen, senior citizens, children.

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Five key social responsibilityissues!

4. Message relatedissues: Misleadingclaims: health andfitness products,weight-loss ads,dietary

supplements,patches, beautycreams

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Fi k i l ibili


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Five key social responsibilityissues!4. Message related issues:

Puffery: use of superlatives,over -the- top claims,unsubstantiated, vague,

exaggerated. Sugar Frosted Flakesare g -r-eat; Gillette the best aman can get.

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Five key social responsibility


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Comparative advertising: allowedin some markets, not allowed inothers subject to guidelines andevidence to support claim regarding

competition.

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Five key social responsibilityissues!4. Message relatedissues:

Endorsements:use of

spokespersons,qualified orexperienced tomake the

endorsementbelievable.

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Demonstrations: common techniquefor demonstrating productperformance. Not recommended whencontrived to deceive the audience &create a false perception.

47Text: The softness of Surf.

Five key social responsibility


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Five key social responsibilityissues!5. Product related issues:

Controversial / not suitable foradvertising products : firearms,gambling, unsafe products; products

restricted by social norms.

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Fi k i l ibilit


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Five key social responsibilityissues!5. Product related issues:

Unhealthy products: tobacco, fastfood products with cholesterolcausing saturated fats (in somemarkets) - the McDonaldscontroversy.

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Fi di l i


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Finding solutions:WHO IS RESPONSIBLE?

Government?Regulatory authorities?

Professional groups, Customerprotection agencies?Industry?

First: understandingTrademark & Copyright.

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Finding solutions :WHO IS RESPONSIBLE?

Understanding trademarks andcopyright: Trademark: a name or distinctivesymbol that identifies the sellersbrand and differentiates it fromothers in the market; TM Registrar /Patent Office.

Copyright: the exclusive right touse or reproduce an original work fora specified time. InternationalProprietary Rights Organization.

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PEMRA: Pakistan Electronic MediaRegulatory Authority formed in March2002, responsible for:

Regulating and developing lower-cost media; Improving standards of information,education and entertainment onbroadcast media; Issuing licenses for establishment ofchannels radio stations.

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TV censorship: Censor Board atPTV;

Print media: Editors responsibility;

Radio: Channels responsibility; Outdoor: No regulation;Exception: Tobacco control laws :

Pakistan is a signatory to the WHOFramework Convention of November2004.

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Defining ethics in Advertising

Ethics: A set of moral principlesthat guide actions and create a

sense of responsible behavior.Is there consensus on what isethical?

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Defining ethics in Advertising TYPES OF ETHICAL CODESPersonal ethics: Personal judgmentand moral reasoning - rests on anintuitive sense of right and wrong. Itis up to an individual to apply this ina work situation as well.Professional ethics: A code ofstandards that identifies how

professionals should respond whenfacing an ethical dilemma. Industrystandards help decide what isethically correct.

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Defining ethics in Advertising

TYPES OF ETHICAL CODESSocial ethics: Social responsibility

that motivates a business to make apositive impact on society. Society &social welfare institutions play therole of watchdogs.

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Advertising's Role in Marketing - Society Copy COMPLETE