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MARKETING POWER Women Plus 40 Over half of all women buying new cars are over the age of 40. The same is true for computers. Of all women who use facial moisturizers, 60 percent are also 40 plus. These statistics fly in the face of traditional marketing wisdom suggesting that the 18- to 34-year-old female demographic is the only one that matters. Young women are strong spenders, but their buying clout is smaller than those over age 40. As Annette Simon of GSD&M Advertising in Austin, Texas, notes, “I make most of the buying decisions, as do my friends and my mom—let’s talk to women like they have a brain.” Simon, who is over 40, has created ads for Southwest Airlines, Wal-Mart, and Charles Schwab. Art director Stuart Pittman from the Kaplan Thaler Group, Ltd., in New York, which is the agency that created the Herbal Essences “yes, Yes, YES!” commercials and the AFLAC duck, states, “I like to think of 40-plus as the cocktail hour of your life. Now you’re up for a good time.” He believes women over 40 are “energized, terrific, and self-assured. Their humor is developed and their attitudes are out there.” Jeff Weekly, from D’Arcy Los Angeles, who creates ads for both NBC and Paramount, calls this group “vibrant yet powerful.” The buying potential of women over 40 extends across all ethnic groups. For example, Louis Miguel Messianu, from the Del Rivero Messianu DDB agency in Coral Gables, Florida, suggests, “Hispanic women over 40 can be viewed as ‘chief operating officers’ of the household.” He believes this group is confident, in control, and discerning. MORE magazine, which targets women over 40, recently featured a unique approach to understanding the over-40 market. Author Mary Lou Quinlan, a former ad agency CEO, noted the bias that has been a part of traditional marketing thinking. She states, “I’ve sat in too many casting sessions where I’d hear, ‘We need one older woman to round out these models. How about so-and-so? She must be 32.’ ” 130 PART 2: IMC ADVERTISING TOOLS Chapter Objectives Understand the steps of an effective advertising management process. Study the roles that the company’s overall mission, products, and services play in advertising programs. Recognize when to use an in-house advertising approach and when to employ an external advertising agency. Review the steps of effective advertising campaign management programs. Analyze the functions performed by the advertising account manager and the advertising creative in preparing an advertising campaign. Advertising Management 5 Because of permissions issues, some material (e.g., photographs) has been removed from this chapter, though reference to it may occur in the text. The omitted content was intentionally deleted and is not needed to meet the University's requirements for this course. ISBN: 0-536-53243-5 Integrated Advertising, Promotion, and Marketing Communications, Third Edition, by Kenneth E. Clow and Donald Baack. Copyright © 2007 by Pearson Education, Inc. Published by Prentice Hall.

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  • 130

    MARKETING POWERWomen Plus 40Over half of all women buying new cars are over the age of 40. The same is true forcomputers. Of all women who use facial moisturizers, 60 percent are also 40 plus.These statistics fly in the face of traditional marketing wisdom suggesting that the 18- to34-year-old female demographic is the only one that matters. Young women are strongspenders, but their buying clout is smaller than those over age 40. As Annette Simon ofGSD&M Advertising in Austin, Texas, notes, I make most of the buying decisions, as domy friends and my momlets talk to women like they have a brain. Simon, who is over40, has created ads for Southwest Airlines, Wal-Mart, and Charles Schwab.

    Art director Stuart Pittman from the Kaplan Thaler Group, Ltd., in New York, which isthe agency that created the Herbal Essences yes, Yes, YES! commercials and theAFLAC duck, states, I like to think of 40-plus as the cocktail hour of your life. Nowyoure up for a good time. He believes women over 40 are energized, terrific, andself-assured. Their humor is developed and their attitudes are out there. Jeff Weekly,from DArcy Los Angeles, who creates ads for both NBC and Paramount, calls this groupvibrant yet powerful.

    The buying potential of women over 40 extends across all ethnic groups. For example,Louis Miguel Messianu, from the Del Rivero Messianu DDB agency in Coral Gables,Florida, suggests, Hispanic women over 40 can be viewed as chief operating officersof the household. He believes this group is confident, in control, and discerning.

    MORE magazine, which targets women over 40, recently featured a uniqueapproach to understanding the over-40 market. Author Mary Lou Quinlan, a former adagency CEO, noted the bias that has been a part of traditional marketing thinking. Shestates, Ive sat in too many casting sessions where Id hear, We need one older womanto round out these models. How about so-and-so? She must be 32.

    130

    PART 2: IMC ADVERTISING TOOLS

    Chapter Objectives

    Understand the steps ofan effective advertisingmanagement process.

    Study the roles that thecompanys overall mission,products, and services playin advertising programs.

    Recognize when to use anin-house advertising approachand when to employ an externaladvertising agency.

    Review the steps of effectiveadvertising campaignmanagement programs.

    Analyze the functionsperformed by the advertisingaccount manager and theadvertising creative in preparingan advertising campaign.

    AdvertisingManagement5

    Because of permissions issues, some material (e.g., photographs) has been removed from this chapter, though reference to itmay occur in the text. The omitted content was intentionally deleted and is not needed to meet the University's requirements forthis course.

    ISBN: 0-536-53243-5

    Integrated Advertising, Promotion, and Marketing Communications, Third Edition, by Kenneth E. Clow and Donald Baack.Copyright 2007 by Pearson Education, Inc. Published by Prentice Hall.

  • Quinlan and MORE magazinearranged for five advertising agen-cies to create campaigns for the40-plus group. The point of the adhad to be to change corporate decision makers minds about them. The advertisingcopy that resulted:

    These Babies Have Boom. (The Kaplan Thaler Group, Ltd., New York) Spring Chickens Have Smaller Nest Eggs. (GSD&M Advertising, Austin) If you want my money, stop showing me pictures of my daughter in underwear.

    (Dimassimo Brand Advertising, New York)

    At 42, I still kick butt. I just do it in a more expensive shoe. (DArcy, Los Angeles) In my house I always have the last word . . . Yes, mi vida (yes honey). (Del Rivero

    Messianu, DDB, Coral Gables)

    As the baby boom generation continues to age, the 40- and even 50-plus crowdgrows larger. Affluence, self-indulgence, and comfort characterize typical boomer buy-ing habits. In the future, more advertisers, who arent getting any younger themselves,may shift toward this group in growing numbers.1

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  • 132 Part 2 IMC Advertising Tools

    The average person encounters more than 600 advertisements per day. As every mar-keting manager knows, these messages are delivered through an expanding varietyof media. Television and radio have long been the staples of advertising programs.They compete with newspaper and magazine ads, billboards, signs, direct-mail cam-paigns, and other traditional channels. Recently, the number of ways to contact customershas grown. Ads on the Internet, clothing lines with messages printed on them, telemar-keting programs, and even messages heard while someone is on hold on the telephonecreate numerous new ways to attract potential customers.

    Todays marketers face a tremendous challenge. A company simply cannot afford toprepare ads for every possible medium. Choices must be made. The messages must bedesigned to give the company an advantage in a highly cluttered world, a world in whichpeople are becoming increasingly proficient at simply tuning ads out.

    To be effective, an ad first must be noticed. Next, it must be remembered. Then, themessage of the advertisement should incite some kind of action, such as a purchase, ashift in brand loyalty, or at least find a place in the buyers long-term memory.

    Part 2 of this textbook describes the role advertising plays in an integrated marketingcommunications program. Figure 5.1 is a reminder of the overall IMC approach. The fourchapters in this section detail the relationship between a companys advertising programand its overall IMC plan.

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  • Chapter 5 Advertising Management 133

    FIGURE 5.1An IMC Plan

    Three ingredients must be combined to create effective advertisements: (1) develop-ment of a logical advertising management scheme for the company, (2) thoughtful designof advertisements, and (3) careful selection of media. Selecting media and designingadvertisements go hand in hand: One cannot be performed without the other. Althoughdiscussions of these topics (advertising design and media selection) are presented in sep-arate chapters, it is important to remember that they occur at the same time. The adagency or creative department will seek to create consistent and effective advertisementsand promotional campaigns.

    This chapter focuses on advertising management, which lays the groundwork forthe total advertising program. Advertising campaign management is the processof preparing and integrating an advertising program with the overall IMC message.One key element in this process is to develop the message theme. The message themeis an outline of the key idea(s) that the advertising program is supposed to convey. Themessage theme should match the companys overall marketing and IMC strategies.The message theme component of advertising is described in greater detail later.

    Chapters 6 and 7 describe the advertising design process. Several primary decisionsmust be made at that time. They include deciding what leverage point to use, the majorappeal in the advertising campaign, and the type of executional framework to use.A leverage point is the key element in the advertisement that taps into, or activates, aconsumers personal value system (a value, idea, or concept). The appeal is how todesign the advertisement that attracts attention or presents information to consumers.Typical appeals include the use of humor, fear, sexual suggestiveness, logic, andemotions. The executional framework or theme explains how the message will bedelivered. Some examples of executional frameworks include the slice-of-life approach,fantasies, dramatizations, and ads constructed using animation. Finally, Chapter 8describes media selection.

    InternetMarketing

    IMC for Small

    Businessesand

    Entre-preneurialVentures

    Evaluatingan

    IntegratedMarketingProgram

    AdvertisingManagement

    AdvertisingDesign:

    Message Strategiesand

    ExecutionalFrameworks

    AdvertisingMedia

    Selection

    CorporateImage and Brand

    ManagementBuyer Behaviors

    PromotionsOpportunity

    AnalysisFoundation

    AdvertisingTools

    PromotionalTools

    IntegrationTools

    TradePromotions

    ConsumerPromotions

    PersonalSelling, DatabaseMarketing, and

    CustomerRelations

    Management

    PublicRelations

    andSponsorship

    Programs

    AdvertisingDesign:

    TheoreticalFrameworks

    and Types of Appeals

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    OVERVIEW OF ADVERTISING MANAGEMENTAn advertising management program is the process of preparing and integrating acompanys advertising efforts with the overall IMC message. Figure 5.2 indicates howthe elements of an advertising program fit together. An effective program consists of fouractivities that combine to form the advertising management process. They are:1. Review the companys activities in light of advertising management.2. Select an in-house or external advertising agency.3. Develop an advertising campaign management strategy.4. Complete a creative brief.

    The major principle guiding these four efforts is consistency. To be effective indeveloping successful advertisements, the companys goods or services and methods ofdoing business need to match the form of advertising agency chosen, the strategy of thecampaign, and the work of the advertising creative. The goal is to provide a coherentmessage that states the theme of the entire IMC program.

    ADVERTISING AND THE IMC PROCESSAdvertising is a major component of integrated marketing communications. It is also part ofthe traditional promotions mix of advertising, consumer and trade promotions, and per-sonal selling. These functions, along with other activities such as direct marketing and publicrelations efforts, form the basis for communicating with individual consumers and businesscustomers. The role advertising plays varies by company, products, and the marketing goalsestablished by the firm. For some products and companies, advertising is the central focusand the other components (trade promotions, consumer promotions, and personal selling)support the advertising campaign. In other situations, advertising plays a secondary role,such as supporting the national sales force and a firms trade promotion program. In thebusiness-to-business sector, advertising often assists with other promotional activities,including trade shows and personal sales calls. In the consumer sector, the reverse is oftentrue. Advertising is usually the primary communication vehicle and the other promotionaltools (contests, giveaways, special packages) are designed to back the advertising campaign.In both business-to-business and consumer promotions, the key to using advertising effec-tively is to see advertising as one of the spokes in the wheel of the promotional effort.The remaining spokes are the other components of the IMC plan.

    As was first described in Chapter 1, an IMC program is more than just promotions andadvertising tactics. IMC includes clear internal communications among departments alongwith the messages sent to external customers and suppliers. IMC programs apply informa-tion technologies to develop databases that help everyone in the firm understand customerneeds and characteristics. This covers the needs of both business customers and end-userconsumers. Effective integrated communications programs mean that every organizationalmember works toward the goal of reaching customers with a clear, consistent message.

    FIGURE 5.2Advertising Overview

    Advertising StrategyChapter 5

    Media SelectionChapter 8

    Executional FrameworkChapter 7

    Message StrategyChapter 7

    AppealsChapter 6

    AdvertisingDesign

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  • Chapter 5 Advertising Management 135

    Within this framework, advertising playsa major role in sending out effective communica-tions. Consequently, a full section of this textbookis devoted to explaining how to prepare advertis-ing campaigns while working with account execu-tives, media buyers, and advertising creatives. Thegoal is to incorporate advertising into the IMCprogram in an efficient and effective manner. Asadvertising agencies and account managers feelgrowing pressures to produce tangible results,developing noticeable and measurable advertisingoutcomes is the major challenge for the advertis-ing agency and for the company itself.2

    CHOOSING AN ADVERTISINGAGENCYThe first step of an advertising program is thechoice between an in-house advertising group andan external advertising agency. Some businesseskeep the integrated communications and advertis-ing programs in internal departments. Part of thereasoning is that internal organization membershave a better sense of the companys mission andmessage. Managers in these firms believe they candevelop effective advertising programs throughoutsourcing some of the functions and by hiringa few key marketing and advertising experts.Activities such as writing, filming, recording, andediting advertisements in addition to planning andpurchasing media time (on television and radio)and space (in magazines, in newspapers, and onbillboards) can be performed by outside agencieswhile the remainder of the IMC program is man-aged internally.

    Recently, Canadas property and casualty insurance industry experienced its worsttwo years in history. The management team at Co-Operators, one of Canadas largestinsurance companies, grew tired of dealing with advertising agencies that didnt seem tounderstand the companys or the industrys problems. As a result, an in-house marketingteam was developed. The team was assigned the objective of revitalizing the companyswell-known brand and linking that awareness to specific attributes. The team developed aprofile of the companys customers using in-house research and data mining. A top-notchcreative director was hired to assist in the production of new advertisements. A televisioncampaign called Heritage was created. The ads and accompanying marketing materialsfocused on an association of farmers who relied on a caring, friendly, community-minded, honest, and Canadian insurance company. The spots and the integrated cam-paign were highly successful.3

    There can be disadvantages, however, to an internal approach to advertising. Oneproblem is that the company can go stale and fail to recognize other promotional oradvertising opportunities. An internal department may also lack the expertise to carry outall of the necessary functions. What may result is the tendency to cut costs in developingads rather than taking advantage of the knowledge and expertise that advertising agencieshave to offer. In the global arena, internal members of the firm lack the necessary under-standing of language, customs, and buyer behaviors in international target markets.Therefore, a decision must be made.

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    Decision VariablesIn deciding whether to use an external agency or in-house department, there are severalkey factors to consider. The management team should review the following variablesbefore making the choice:4

    1. The size of the account2. The amount of money that can be spent on media3. The objectivity factor4. The complexity of the product5. Creativity concerns

    With regard to the account size, a small account usually is not as attractive to an adver-tising agency, because smaller accounts are less profitable. Also, with regard to moneyspent on media, smaller accounts are less economically sound for the agency, becausemore money must be spent on producing advertisements rather than on purchasing mediatime or space. A good rule of thumb is called the 751510 breakdown. That is, 75 percentof the money buys media time or space, 15 percent goes to the agency for the creativework, and 10 percent is spent on the actual production of the ad. For smaller accounts, thebreakdown may be more like 254035. This means that 75 percent of the funds go to thecreative and production work, and only 25 percent is spent on media purchases. Unless75 percent of the companys advertising budget can be spent on media purchases, it may

    be wise either to do the work in-house or to developcontracts with smaller specialty firms to prepare variousaspects of the advertising campaign.

    An agency is more likely to be objective than anin-house advertising department. It is difficult for anin-house creative to remain unbiased and to ignorethe influences of others in the organization who maynot fully understand the artistic aspects of advertis-ing. An external creative does not face these influ-ences and pressures.

    Advertisements for highly complex products createa different set of circumstances. This is because exter-nal advertising agency members may have a difficulttime understanding complicated products. To get themup to speed often requires a considerable amount oftime, which costs money. Therefore, in-house depart-ments may be better for some more complex products.For generic or more standardized products, ad agenciesusually have more to offer.

    The final issue to consider in choosing an agencyversus performing the work in-house is creativity.Advertising agencies claim to offer greater creativity.Many times this is true. Still, an in-house departmentwill be able to freelance and utilize creatives just for thead design process. The question, then, is whether togive the entire project to an agency or only use theagencys creatives and other specialists.

    When the decision is made to retain an externaladvertising agency, the company commits substantialresources to the goal of expanding its audiencethrough advertising and communications programs.A review of the types of agencies that can be chosen ispresented next.

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  • Chapter 5 Advertising Management 137

    EXTERNAL ADVERTISING AGENCIESCompany leaders have a variety of options when choosing an advertising agency. Allsizes and types of advertising agencies exist. At one end of the spectrum are the highlyspecialized, boutique-type agencies offering only one specialized service (e.g., makingtelevision ads) or serving only one type of client. For instance, GG Advertising ofAlbuquerque, New Mexico, specializes in advertising to Native Americans, a market ofan estimated 10 million people.5

    At the other end of the spectrum are the full-service agencies that provide all types ofadvertising and promotional activities. These companies also offer advice and assistancein working with the other components of the IMC program, including consumer andtrade promotions, direct-marketing programs, and public relations events. Full-serviceadvertising agencies provide a number of items, including:

    Consulting and giving advice about how to develop target markets Providing specialized services for business markets Providing suggestions on how to project a strong company image and theme Supplying assistance in selecting company logos and slogans Preparation of advertisements Planning and purchasing media time and space

    In addition to advertising agencies, there are other closely associated types of firms.Media service companies negotiate and purchase mediapackages (called media buys) for companies. Direct-marketing agencies handle every aspect of a direct-marketingcampaign, either through telephone orders (800 numbers),Internet programs, or by direct mail. Some companies focuson either consumer promotions, trade promotions, or both.These companies assist in developing promotions such ascoupons, premiums, contests, and sweepstakes. They alsoprovide assistance in making posters, end-of-aisle displays,and point-of-purchase displays. Public relations firms pro-vide experts to help companies and individuals develop pos-itive public images. PR firms are often called in for damagecontrol when negative publicity arises. In-house members ofthe organization can render these activities, just as anin-house marketing department can perform advertising andIMC programs. In both instances, company leaders mustdecide how they can complete these key marketing activitiesefficiently and effectively.

    A new trend in advertising, called the whole egg the-ory, has recently been introduced by the Young & RubicamAdvertising Agency. The concept of the whole egg theory isto move from selling a clients products to helping the clientattain total success in the marketplace. Achieving successrequires integrating the marketing approach by offering afuller array of services to both business and consumerclients. Thus, as client companies began to move towardmore integrated marketing approaches, agencies such asYoung & Rubicam captured more accounts.6

    A similar company is Venture Communications ofCalgary, Canada. The companys founder, Arlene Dickson,transformed Venture from a traditional advertising agencyinto an integrated marketing communications company byexpanding to cover every aspect of a companys marketing

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    program. Venture is divided into six communities: advertising, technology, media buy-ing, brand planning, public relations, and marketing and business strategies. U.S. brands,such as Lipton, Cisco, and Unisys, have bought into Ventures synchronized communi-cation approach and now make up 15 percent of Ventures revenues. Agencies like Young& Rubicam and Venture continue to succeed because they are more than just advertis-ing agencies. Instead, these firms offer marketing experts who participate in the entireintegrated marketing communications program.7

    The process of selecting an advertising agency is difficult. A companys leaders mustdecide how much involvement the agency will have and how many functions the agencyshould perform. The next step is to develop effective selection criteria to help companyleaders make wise choices in the process of hiring an advertising agency.

    CHOOSING AN AGENCYChoosing the advertising agency that best suits a company requires careful planning.Figure 5.3 lists the steps involved in this process. Additional information about each ofthese steps follows.

    Goal SettingBefore making any contact with an advertising agency, it is important to identify and pri-oritize corporate goals. Goals provide a sense of direction for the companys leaders, forthe agency account executive, and for the advertising creative. Each is more likely to beon the same page as preparation of the advertising campaign unfolds. Without clearlyunderstood goals, it is virtually impossible to choose an agency because company leadersmay not have a clear idea what they want to accomplish. Unambiguous goals help ensurea good fit between the company and the agency.

    Selection CriteriaThe second step in selecting an agency is stating the selection criteria that will be used.Even firms with experience in selecting agencies should set selection criteria inadvance. The objective is to reduce biases that may enter into the decision. Emotionsand other feelings can lead to decisions that are not in the companys best interests.Although good chemistry between the agency and the firm is important, this aspect ofthe choice comes later in the process, after the list has been narrowed down to twoor three agencies. Figure 5.4 lists some of the major issues to be considered as part ofthe selection process. This list is especially useful in the initial screening process, whenthe task is to narrow the field to the top five (or fewer) agencies.

    The size of the agency is important, especially as it compares to the size of the com-pany hiring the agency. If a large firm were to hire a small agency, the small agency maybe overwhelmed by the account. A small firm hiring a large agency may find that thecompanys account might be lost or could be treated as being insignificant. A goodrule of thumb to follow regarding the size of the agency is that the account should belarge enough for the agency so it is important to the agency but small enough that, if lost,the agency would not be badly affected.

    FIGURE 5.3Steps in Selecting an Advertising Agency

    Set goals. Select process and criteria. Screen initial list of applicants. Request client references. Reduce list to two or three viable agencies. Request creative pitch. Select agency.

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  • Chapter 5 Advertising Management 139

    When Norwest Banks of Minneapolis acquired Wells Fargo of San Francisco, thecompany tripled in size. Norwests agency, Carmichael Lynch, was not large enough tohandle the new larger company. According to Larry Haeg, We needed the resourcesand services of a larger agency.8 In this case, it was not a matter of the firm beingincompetent, but rather that the larger Norwest needed a wider variety of services andexpertise.

    Relevant experience in an industry is a second evaluation criterion. When anagency has experience in a given industry, the agencys employees are better able tounderstand the client firm, its customers, and the structure of the marketing channel.At the same time, it is important to be certain the agency does not have any conflictsof interest. An advertising firm that has been hiredby one manufacturer of automobile tires experi-ences a conflict of interest if the ad agency is hiredby another tire manufacturer.

    An advertising agency can have relevant expe-rience without representing a competitor. Suchexperience may be gained when an agency worksfor a similar company that operates in a differentindustry. For example, if an agency has a manufac-turer of automobile batteries as a client, this experi-ence is relevant to selling automobile tires. Theagency should have experience with the business-to-business side of the market, so that retailers,wholesalers, and any other channel party areconsidered in the marketing and advertising ofthe product.

    All of the milk advertisements in this textbookwere created by Bozell Worldwide. In addition to themilk advertisements, Bozells clients include DatekOnline, Bank of America, Unisys, Lycos, Excedrin,Jergens, and the pork industry. Notice that this listdoes not include competing firms within the sameindustry. Also note that Bozells success in promot-ing milk led the pork industry to believe Bozellwould have the right kind of expertise to promotepork products.

    The initial screening process includes an inves-tigation into each agencys creative reputation andcapabilities. One method of judging an agencyscreativity is to ask for a list of awards the companyhas received. Although awards do not always trans-late into effective advertisements, in most casesthere is a positive relationship between winning

    Size of the agency Relevant experience of the agency Conflicts of interest Creative reputation and capabilities Production capabilities Media purchasing capabilities Other services available Client retention rates Personal chemistry

    FIGURE 5.4Evaluation Criteria in

    Choosing an Ad Agency

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    awards and writing effective ads. Most creativeawards are given by peers. As a result, theyare good indicators of what others think of theagencys creative efforts. Assessing creativecapabilities is very important when preparingadvertising campaigns for a different country inwhich the firm has limited experience.

    Production capabilities and media purchas-ing capabilities of the agencies should be exam-ined if these services are needed as the companyprepares an advertising campaign. The informa-tion is gathered to be sure the agency has thedesired capabilities. A firm that needs an agencyto 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?This type of information can be difficult to obtain. The company hiring the agency mustbe persistent and engage in thorough research. Accessing each agencys Web page, read-ing annual reports, and searching for news articles about individual agencies can be help-ful. Most ad agencies provide prospectus sheets describing their capabilities. Thesereports render some information about their media buying skills.

    The final three selection criteriaother services available, client retention rates,and personal chemistryare revealed as the final steps of selection take place. Thesecriteria help make the final determination in the selection process.

    Reference RequestsOnce the initial screening is complete, it is time to request references from those agen-cies still in the running for the contract. Most agencies willingly provide lists of theirbest customers to serve as references. A good strategy the company can use is to obtainreferences of firms that have similar needs. Also, when possible, it helps to obtainnames of former clients of the agency. Finding out why they switched can provide valu-able information. Often changes are made for legitimate reasons. Discovering anagencys client retention rate helps reveal how effective the firm has been in workingwith various clients. Poor service is not the only reason a firm switches advertisingagencies. As noted earlier in this chapter, Norwest Banks let the advertising agency gobecause it was too small to handle the increased size of Norwest.9

    Background checks also provide useful information. Background checks start withfinding firms that have dealt with each agency. Also, talking to media agents who sellmedia time provides insights as to how an agency buys time and deals with customers.Companies that have formed contracts with individual agencies for production facili-ties or other services are excellent sources of information. Background checks help theclient company make sure the agency can provide quality professional services.

    Creative PitchIf the list has been narrowed to two or three finalists, the companys selection teamis ready to ask for a creative pitch. If not, the team should reduce the list of viable agen-cies. 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 chanceof being accepted.10 Although most firms narrow the list down by using the selectioncriteria already discussed, Lucent Technologies utilized a different method. Before

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  • Chapter 5 Advertising Management 141

    choosing two or three to make a pitch for their $60 millionaccount, the executives of Lucent visited six agencies overa 2-week period. All six had met the selection criteria thathad been set. The visits were made to conduct chemistryand credential checks. The idea was to see which would fitthe best with the marketing staff at Lucent.11

    Advertising agencies that are chosen to compete for thecontract provide a formal presentation addressing a specificproblem, situation, or set of questions. This process iscalled a shootout. The presentations reveal how eachagency would deal with specific issues that arise as acampaign is prepared. This helps a client company decidewhich agency best understands the issues at stake andhas developed an advertising or integrated communicationapproach that will solve the problem or issue.

    In recent years, the Lycra company faced increasinglystiff competition. When the advertising selection team atLycra narrowed the field down to three agencies, the teamasked each firm to develop a creative pitch that wouldenhance the unique position of the Lycra brand. The agencythat was finally chosen suggested the theme Lycra has it.The theme featured an emotional campaign. It evolved fromthe discovery that consumers derive positive emotions fromwearing Lycra, including feeling sexy, confident, and beauti-ful. The agencys proposal suggested that a stronger emo-tional message would help consumers experience a greatersense of ownership or identification with the brand. TheLycra has it campaign proved to be a successful campaign,one that became the cornerstone for a major repositioning ofthe brand in the United States and around the world.12

    Agency SelectionDuring the presentation phase, the opportunity exists tomeet with creatives, media buyers, account executives, andother people who will work on the account. Chemistrybetween employees of the two different firms is important.The client companies leaders should be convinced thatthey will work well together and that they will feel com-fortable with each other.

    In competing for the new NorwestWells Fargo account,the firm DDB was chosen over the incumbent agency,Carmichael Lynch, because Fargo executives believed DDBhad 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 combinethe strength of Wells Fargos 150-year heritage with theexcellent customer service qualities of Norwest. This presen-tation led to the decision to hire DDB. It came after Fargoexecutives listened to the presentations of both agencies andasked key questions about who would actually be working on the account.13

    Whenever possible, a client companys leaders should visit the advertising agencysoffice as part of the evaluation process. Often agencies use company executives such aspresidents or vice presidents, termed heavy hitters by industry insiders, to win contracts,but then turn the account over to other individuals in the agency after signing the deal.Visiting the agencys office provides an opportunity to meet personnel who might work onthe account. Talking with these individuals generates quality information about how the

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    account will be handled. The visiting period also can be used to hammer out specificdetails, such as identifying the actual person(s) who will work on the advertisements,and either agreeing to the use of freelancers (independent contractors who provide variousservices) to work on the project or prohibiting the agency from using such individuals.

    After the selection process has been completed, the agency and the company worktogether to prepare the advertising campaign. Along the way, the account executive playsa key role in the process, as does the advertising creative. A brief review of the activitiesperformed by these two individuals follows later in this chapter.

    ADVERTISING PLANNING AND RESEARCHThe initial meetings between the agency that has been selected and the firms adver-tising management and marketing team are key moments. These meetings should beused to combine all of the advertising elements. Even then, some planning andresearch projects remain.

    First, the agency involved should be engaged in general preplanning input collection.This task includes reading up on the client organization in books, trade publications,research reports, and the companys Web site. Also, members of the advertising agencyshould, when possible, actually use the good or service involved. Also, by visiting withmembers of the community, employees, and other business partners, members of the adver-tising agency can develop a solid understanding of the client.

    Next, product-specific research should be conducted. Two things should be identi-fied at this point. The first is whether there are problems associated with a given good or

    service. One approach is called problem detec-tion, in which consumers are asked to report anyproblems or difficulties they have encounteredusing a product. These issues must be addressed aspart of the IMC program. The other matter to com-plete is discovering the major selling idea to beused in the ad campaign. The Got milk? themethat is well documented in this book emerged fromproduct-specific research. Customers were askedto go without milk for a week and then to reportback to the agency. The method is called a depri-vation approach. The advertising agencys cre-ative team learned that a key selling point could beto focus on how well milk fits with a personslifestyle. Doing without it (deprivation) madepeople aware of the vital role milk plays in eatingcereal, cookies, and other snacks and foods.Remember that both the upside and the downsideof a product should be clearly understood beforemoving forward with an advertising or IMCcampaign.

    Finally, qualitative research can be used toassist the vendor company and its advertisingagency. Focus groups are often used to bringpeople together to talk about a product. With acreative in attendance, it is possible to hear aboutthe kind of person who likes a product and to dis-cover tactics that might reach the individual. Theactual collection of information can come from avariety of perspectives, including:

    Anthropology Sociology Psychology

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    The methods employed by anthropologists often involve direct observation. Thishelps the marketing team discover not only who is using a product, but also how it isbeing used. When Whirlpool employed anthropologists to study washing machines, itbecame clear that adult men and children also used the machines, not just the wife ormother. The researchers suggested making the controls on the units easier to use andunderstand for men and children, who may be less familiar with appropriate temperatureand cycle settings for various kinds of fabrics.

    Sociologists examine social class issues and trends. Using a sociological approach, it isclear that the World of Ralph Lauren is composed of rich, elite, and distinct people. RalphLauren creates fashions for the wealthy and features messages that that stress style and highsocial class.

    Psychology concentrates on motivation, cognition, and learning. When thesecome together, values emerge. The values and lifestyle model (VALS) predicts con-sumer behavior by concentrating on self-orientation and resources. In other words,most purchases are based on a match of lifestyle choice with funds available. Acowboy-type individual, even one who has moved to the city, makes purchases fromwestern stores the person can afford, because these items reflect the individualspersonal self-orientation.

    Another psychological approach is called a personal drive analysis (PDA). Thismethod helps the researcher understand psychological drives toward indulgence, ambition,or individuality. These drives affect brand choices. A fine wine may be viewed as an indul-gence by a consumer or as an expression of individuality. Knowing the purchasing motivesof a target market can greatly enhance the effectiveness of an advertising program.

    Carefully collected knowledge about the good or service and the audience for adsand advertising campaigns is crucial to success. With this information in mind, the actualcampaign can be developed.

    THE ROLES OF ADVERTISING ACCOUNTEXECUTIVESThe advertising account executive is the key go-between for both the advertisingagency and the client company. This individual is actively involved in soliciting theaccount, finalizing details of the contract, and working with the creatives who will pre-pare the actual advertisements. Many times, the account executive helps the companyrefine and define its major message for an overall IMC program and provides other sup-port as needed.

    Clients companies always want to know if they are getting a good value. Manyclients believe they dont have a clue in trying to understand the relationship between anagencys cost and its actual value to the company. Ron Cox, a vice president at WrigleyJr. Company, suggests that agencies update clients regularly on the work they are doingand the results obtained. These types of reports(called stewardship reports) help clients under-stand the process and the outcome more clearly.Updating clients on what is being done for thembecomes more important as the amount beingspent on advertising increases.14

    Further, periodic reviews should be held toshow that the agency is doing its work. Thesereviews should not be confrontational. To the clientcompany, the updates represent the opportunity toevaluate how well the agency has done and alsoto become better acquainted with the personnelworking on the account. As part of the process, theclient firm can spend time with creatives as theywork on the campaign. Client-company employeescan also talk to media buyers, public relations

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    experts, and others working on the account. Inshort, the account manager oversees the process insuch a way that everyone involved feels comfort-able and oriented toward the goal of creating aneffectively integrated advertising campaign andmarketing communications program.

    The traffic manager works closely with theaccount executive. This persons responsibilityis to schedule the various aspects of the agencyswork to ensure the work is completed by thetarget deadline. See the Communication Actionbox in this section for more information abouthow the traffic manager serves as an importantlink between the account executive and thecreatives.

    THE ROLES OF CREATIVESCreatives are the people who actually develop and produce advertisements. These individ-uals are either members of advertising agencies or freelancers. Some smaller companiesprovide only creative advertising services without becoming involved in other marketingprograms and activities. Creatives may appear to hold the glamour jobs in advertisingbecause they use many talents while producing advertisements. At the same time, creativesface long hours and work under enormous pressures to design ads that are effective and thatwill produce tangible results. The role of the creative is discussed in further detail in thesection on creative briefs later in this chapter.

    ADVERTISING CAMPAIGN MANAGEMENTManaging an advertising campaign is the process of preparing and integrating a specificadvertising program in conjunction with the overall IMC message. An effective programconsists of five steps. The steps of advertising campaign management are:

    1. Review the communication market analysis.2. Establish advertising objectives consistent with the communication objectives

    developed in the promotions opportunity analysis program.3. Review the advertising budget.

    4. Select the media in conjunction with theadvertising agency.

    5. Prepare a creative brief.

    The advertising program should be consistentwith everything else in the IMC program. The ideais to makes sure the firm presents a clear messageto key target markets. Then, advertising efforts canbe refined to gain the maximum benefit from thepromotional dollars being spent. A review of theissues present in each element of advertising cam-paign management is presented next.

    COMMUNICATION MARKETANALYSISIn the first phase of planning, the account executivestudies what the companys communication marketanalysis reveals (see Chapter 4). The communication

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    C O M M U N I C AT I O N A C T I O NAn Interview with a Traffic Manager

    One individual who plays a key role in the media sched-uling process is a traffic manager. Gretchen Hoag playsthis role in her agency, Publicis Technology. We askedher to describe the job. She responded,

    I have many responsibilities, but my main pur-pose is to manage the workflow and ensure thatall deadlines are met. Along with managingthe process, Im also in charge of maintainingproject history, creating schedules, managingresources, setting up team meetings, priori-tizing projects, training new employees aboutagency processes, setting up new clients, rout-ing proofs, proofreading, and whatever else isneeded to get the job done. One of the bestthings about my job is that I work closely withevery team member within the agency.

    We then asked Gretchen to describe a typical day atwork. She replied,

    There is no such thing as a typical day in an adagency no matter what your job is, but trafficmanagers probably have the least typical days ofanyone. In traffic, you could spend the majority ofone day creating schedules and the next routingand proofreading mechanicals, and the day afterthat opening up new jobs and attending kick-offmeetings. There are a few things that do remainconstant: I always have paperwork to file, historyto record in my databases, and team members tokeep happy.

    Usually when it comes time to schedule aproject, I create a basic outline of when I thinkthe project can be completed. This is very diffi-cult, because the artwork has not been con-cepted yet. I dont know if Im scheduling for anillustration, stock photography, a photo shoot, ora text-only ad. So I have to guess. Once I have anoutline completed, I talk with each of my teammembers to see if they agree with my schedule.Most importantly, I need to make sure my timingcorresponds with medias timing. Once the teamis in agreement on the schedule, I can create aformal estimate for the client. At this time theaccount team works with the client to ensurethey can commit to the deadlines as well.

    Of course all this guesswork changes oncea concept has been chosen. Maybe we haveto paint a backdrop, which will take the artist3 weeks to complete before a photo shoot canhappen. Or perhaps we are using stock photog-raphy, which will perhaps allow the schedule tobe sped up a bit. This is where good jugglingskills and flexibility come into play.

    After a schedule has been approved, I evaluateall of my current projects and then work with the

    other traffic managers to see what jobs they havescheduled. We reevaluate each clients needs foreach team member day by day. If one person ineither the creative department or the productiondepartment is overwhelmed, then we reassignwork, or if everyone appears to be booked, we cantry to push schedules around or perhaps bring infreelance help. Occasionally, we can predict daysor weeks when we will need extra help, like theweek two art directors were going to be out ofthe office. Basically, we do whatever is humanlypossible to get the job done as efficiently and costeffectively as we can while maintaining the high-est standards for our clients.

    Ideally on a print project, I would like to sched-ule about 4 weeks for creative concepting, 2 to3 weeks to simultaneously write copy and pro-duce artwork, 3 to 4 days to build mechanical,and 1 week for color corrections. This will workfor some of the product categories, because theyhave existing creative we can continue runninguntil the new creative is completed. But thereare some product categories that have mediapurchased and no existing creative work for.Given this information, we need to work on thesejobs first and wait on the product categories wealready have materials for. Before we can con-centrate on the individual product categories, wehave to go through a look and feel exercise.

    Once the look and feel has been decided on,we can begin to produce the ads, which does notallow us much time. So, we have to crunch downwhat would normally take 7 to 9 weeks to 3 to4 weeks. In order to do this, my creative team willpresent only concepts that we know we can pro-duce in this short time frame. We also cut downon the time we can come up with ideas for thecampaign and we beg for additional time fromthe publications to see if we can receive anextension on the material due dates. If our otherclients also have jobs in the creative conceptingstage, I may even need to bring in additional artdirectors and copywriters to work on the job.

    Being a traffic manager makes her part of a larger teamthat also includes the account service people, clients,and creatives. Here is how Gretchen describes some ofthese relationships:

    I work with the account service people veryclosely. They are the ones who are directly infront of the client representing the agency, sothey play a very important role in the process.They filter through all the information from theclient and pass the information on to me. I thenpass the information on to the appropriate teammembers. I do this by meeting with all of myaccount service people at least once a day to besure they are comfortable with the status of all

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    C O M M U N I C AT I O N A C T I O N

    their projects and to discuss any new informa-tion from the client.

    Regarding the agencys clients, Gretchen told us,

    The account team is responsible for maintainingthe relationship with the client, which includesall contact with the client. However, my numberand name have been passed on to many of ourclients. I have been known to serve as backupwhen the account teams are out of the office.I also have been pulled into meetings and con-ference calls to explain schedules and to givetechnical explanations about color and filmprocesses.

    There are also involvements with other members of themarketing team, making the job of traffic managermore complex. Heres what Gretchen told us aboutother people at work:

    I also have a close relationship with the creativeand production teams. Lets face itno one likesto be told what to do and how quickly it needs tobe done, especially if the due date requires work-ing on the weekend or staying past 5:00 P.M. Andas a traffic manager, I am the person who hasthe distinct honor of relaying this kind of badnews. It is by far the hardest part of the job. Butnot all of our conversations are based on badnews. The creative and production departments

    depend on the traffic managers to help them towork uninterrupted, which is one reason why allinformation filters through us.

    We asked her if she chooses the creatives who willwork on an assignment. She replied,

    Yes and no. Since I have such a close relationshipwith the creatives, I do recommend to the CreativeDirector who I would like to see working on a par-ticular project. I would like to think I am reallyin tune with how each team member within thedepartment likes to work, what type of projectsthey thrive on, and more importantly, how muchwork each person can handle.

    Finally, we asked who watches out for the client, tomake sure their interests are protected. She said,

    Everything we produce or show the client is areflection on the entire agency, so we all feelownership in the projects we work on. Everyclient has a creative team member who is whatwe call a brand guardian. The brand guardiansresponsibility is to maintain that particularclients standards. We also have an editor onstaff who is responsible for proofing all workagainst the clients style sheet. The accountteam reviews work against the strategic and cre-ative briefs. I review all work against my ownknowledge and client notes and records thatI maintain. So, really all team members are look-ing out for the clients best interests.

    Continued

    analysis reveals where the firm can best focus advertising and promotional efforts by discov-ering company strengths along with opportunities present in the marketplace. The analysisof the various target markets and customers suggests how the firms previous marketingcommunications efforts have been received by the public as well as by other businesses andpotential customers. The positioning analysis explains how the firm and its products areperceived relative to the competition. The value of reviewing the communication marketanalysis is in focusing the account executive, the creative, and the company itself on keymarkets and customers while helping them understand how the firm currently competes inthe marketplace. Then the team is better able to establish and pursue specific advertisingobjectives.

    For the purposes of advertising, two important items are outlined as part of the com-munication market analysis:

    1. The media usage habits of people in the target market2. The media utilized by the competition

    When analyzing customers, knowing which media they use is vitally important. Forexample, teenagers surf the Web, watch television, and listen to the radio. Only a smallpercentage reads newspapers and news magazines. Various market segments have differ-ences in when and how they view various media. For example, older African-Americanswatch television programs in patterns that are different from those of older Caucasians.Males watch more sports programs than females, and so forth. In business-to-business

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  • Chapter 5 Advertising Management 147

    markets, knowing which trade journals or business publications the various members ofthe buying center most likely read is essential for the development of a print advertisingcampaign. Engineers, who tend to be the influencers, have different media viewing habitsthan do vice presidents, who may be the deciders. Discovering which media reach atarget market (and which do not) is a key component in a communication market analysisand an advertising program.

    Further, studying the competition reveals how other firms attempt to reach cus-tomers. Knowing how other firms contact consumers is as important as knowing whatthey say. An effective communication market analysis reveals this information, so thatmore effective messages and advertising campaigns can be designed.

    ADVERTISING GOALSThe second step of advertising planning is to establish and clarify advertising goals, whichare derived from the firms overall communication objec-tives. Several advertising goals are central to the IMCprocess. Some of these goals are listed in Figure 5.5.A discussion of each individual goal area follows.15

    Building Brand ImageBuilding a strong global brand and corporate image isone of the most important advertising goals. A strongbrand creates brand equity. As discussed in Chapter 2,brand equity is a set of characteristics that make a brandseem different and better to both consumers and busi-nesses. These benefits can be enhanced when they com-bine effective advertising with quality products. Higherlevels of brand equity are a distinct advantage as con-sumers move toward purchase decisions.

    Advertising is a critical component in the effort tobuild brand equity. Successful brands have two charac-teristics: (1) the top of mind and (2) the consumerstop choice. When consumers are asked to identifybrands that quickly come to mind from a product cate-gory, one or two particular brands are nearly alwaysmentioned. That name has the property of being a top ofmind brand. For example, when asked to identify fast-food restaurants, McDonalds and Burger King almostalways head the list. The same is true for Nike andReebok shoes. This is true not only in the United Statesbut also in many other countries. The term top choicesuggests exactly what the term implies: A top choicebrand is the first or second pick when a consumerreviews his or her evoked set of possible purchasingalternatives.

    To build brand image To inform To persuade To support other marketing efforts To encourage action

    FIGURE 5.5Advertising Goals

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    ETHICAL ISSUES

    Deception Versus PufferyA deceptive advertisement gives a typical person a false impression that leads the individualto make a purchase. Puffery is the use of an exaggerated claim about a good or servicewithout making an overt attempt to deceive or mislead. Typical terms associated withpuffery include best, greatest, and finest. Consumers are accustomed to these claims and,therefore, they are not considered illegal.

    Consider the case of herbs, supplements, and other nontested products. Claims are maderegarding contributions to levels of energy, sexual stamina, and mental acuity. Others reportunsubstantiated results related to weight loss.

    Is it ethical, knowing that placebo effects exist, to claim a product will make a manbetter in bed, stronger, wiser, or more ambitious? After all, consumers are used to exagger-ated claims. It is common for such products to offer a money-back guarantee in which theconsumer may receive a full refund if not satisfied. However, most of the people who buythese products are either willing to delude themselves into believing a benefit existed whenit did not or are too embarrassed to ask for a refund.

    Should there be stronger policing of medical claims than for other types of claims?Should there be a stricter standard regarding puffery in these instances? Why or why not?

    Part of building brand image and brand equity is developing brand awareness, andadvertising is the best method to reach that goal. Brand awareness means the consumersrecognize and remember a particular brand or company name when they consider pur-chasing options. Brand awareness, brand image, and brand equity are vital for success.

    In business-to-business marketing, brand awareness is often essential to being con-sidered by members of the buying center. It is important for business customers to recog-nize the brand name(s) of the various goods or services a company sells. Brand awarenessis especially important in modified rebuy situations, when a firm looks to change to a newvendor or evaluates a product that has not been purchased recently. In new buy situations,members of the buying center spend more time seeking prospective vendors than they doin modified rebuys. Consequently, brand equity is a major advantage for any companythat has such recognition. Currently, many firms have increased importing and exportingactivities. This makes a memorable and accepted global brand a major feature of manymarketing programs.

    Providing InformationBesides building brand recognition and equity, advertising serves other goals. Forexample, advertising often is used to provide information to both consumers andbusiness buyers. Typical information for consumers includes a retailers store hours,business location, or sometimes more detailed product specifications. Information canmake the purchasing process appear to be convenient and relatively simple, which canentice customers to finalize the purchasing decision and travel to the store.

    For business-to-business situations, information from some ads leads various mem-bers of the buying center to consider a particular company as they examine their options.This type of information is most useful when members of the buying center are in theinformation search stage of the purchasing process. For high-involvement types of pur-chases, in which members of the buying center have strong vested interests in the successof the choice, informative advertisements are the most beneficial. Low-involvementdecisions usually do not require as much detail.

    In marketing to both consumers and other businesses, information can help thoseinvolved reach a decision. Information is one component of persuasion, another objectiveof various advertising programs.

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  • Chapter 5 Advertising Management 149

    PersuasionOne of the most common goals of advertising pro-grams is persuasion. Advertisements can convinceconsumers that a particular brand is superior toother brands. They can show consumers the nega-tive consequences of failing to use a particularbrand. Changing consumer attitudes and persuadingthem to consider a new purchasing choice is a chal-lenging task. As described later, advertisers can uti-lize several methods of persuasion. Persuasiveadvertising is used more in consumer marketingthan in business-to-business situations. Persuasiontechniques are used more frequently in broadcastmedia such as television and radio rather than inprint advertising.

    Supporting Marketing EffortsAnother goal of advertising is to support other mar-keting functions. For example, manufacturers useadvertising to support trade and consumer promo-tions, such as theme packaging or combinationoffers. Contests, such as the McDonalds Monopolypromotion, require extensive advertising to be effec-tive. Retailers also use advertising to support mar-keting programs. Any type of special sale (whitesale, buy-one-get-one-free, pre-Christmas sale)requires effective advertising to attract customers tothe store. Both manufacturers and retail outlets useadvertisements in conjunction with coupons or otherspecial offers. Del Monte placed a 30-cent coupon inthe advertisement shown in this section. The adhighlights a smaller-size container with a pull-top lid. These features match the adstarget market: senior citizens. The first magazine featuring this advertisement wasModern Maturity. Manufacturer coupons are regularly redeemed at grocery stores(sometimes at double their face value), and in-store coupons are part of many retailstore print advertisements. When ads are combined with other marketing efforts intoa larger, more integrated effort revolving around a theme, the program is called apromotional campaign.

    Encouraging ActionMany firms set motivational goals for advertisingprograms. A television commercial that encouragesviewers to take action by dialing a toll-free numberto make a quick purchase is an example. Everythingfrom Veg-O-Matics to DVDs and cassettes are soldusing action tactics. Infomercials and home shop-ping network programs heavily rely on immediateconsumer purchasing responses.

    Action-oriented advertising is likely to beused in the business-to-business sector. When it is,often the goal is to generate sales leads. Manybusiness advertisements provide a Web address ortelephone number that buyers can use to requestmore information or more easily make a purchase.

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    The five advertising goals of building image, providing information, being persuasive,supporting other marketing efforts, and encouraging action are not separate ideas. Theywork together in key ways. Image and information are part of persuasion. Thus, whenBarnes & Noble announces its Internet sales program, the firms image combines with theinformation provided to persuade online book buyers to consider it rather thanAmazon.com. The goal of encouraging action is often part of supporting other marketingtactics. The key advertising management objective is to emphasize one goal without forget-ting the others.

    THE ADVERTISING BUDGETOnce the company, account manager, and creative agree upon the major goals of theadvertising campaign, a review of the communications budget is in order. In Chapter 4,various methods for establishing marketing communication budgets were described.After the total dollars allocated to advertising have been established, account managersand company leaders agree to uses for the funds. This includes the media to be utilized(television versus newspaper versus billboards). Also, however, the manner of distribu-tion must be arranged. Three basic tactics include:

    Advertising the most when sales are at peak seasons Advertising the most during low sales seasons Level amounts

    Firms that advertise during peak seasons like Christmas are emphasizing sending outthe message when customers are most inclined to buy. When consumers are on the hotspot, this approach makes sense for some products. For example, Weight Watchers, DietCenters, and others advertise heavily during the first 2 weeks of January. Many NewYears resolutions include going on a diet.

    Advertising during peak seasons can be accomplished in two ways. The first is apulsating schedule of advertising. This schedule involves continuous advertising withbursts of higher intensity (more ads in more media) during the course of the year, mostnotably during peak seasons. Companies can also utilize what is called a flightingapproach or schedule, where ads are presented only during peak times, and not at all dur-ing off seasons.

    Deciding to advertise during slow sales seasons is essentially oriented toward drum-ming up business when people do not regularly buy. In retail sales, slow seasons occurduring January and February. Some companies advertise more during those periodsto sell merchandise left over from the Christmas season and to encourage customersto shop.

    Many marketing experts believe it is best to advertise in level amounts, particularlywhen a product purchase is essentially a random event. This approach is a continuouscampaign schedule. For example, many durable goods such as washing machines andrefrigerators are purchased on an as needed basis. A family ordinarily buys a newwashing machine only when the old one breaks down. Consequently, level advertisingincreases the odds that the buyer will remember a given name (Kenmore, Whirlpool, orGeneral Electric). Also, there is a better chance that consumers will be exposed to adsclose to the time they are ready to make purchases.

    In any case, the objective should be to match the pacing of advertisements with themessage, media, and the nature of the product. Some media make it easier to advertise forlonger periods of time. For instance, contracts for billboards are normally for a month ora year. They can be rotated throughout a town or city to present a continuing messageabout the company or its products. Budgetary constraints must also be incorporated intothe strategies and tactics used in the advertising program.

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  • Chapter 5 Advertising Management 151

    MEDIA SELECTIONThe next step of advertising management is to develop strategies and tactics for mediaselection by describing the intent of the message in each specific ad. It is crucial to conveymessages that are both consistent with the firms IMC theme and that match with variousmedia. Media buys are guided by the advertising agency or media agency, the company,and the creative. In Chapter 8, the advantages and disadvantages of various advertisingmedia are described. Newer, less traditional media are also described. When media selec-tion is performed correctly and messages are designed to fit with the chosen media, thechances for success greatly increase. When these issues are well-coordinated, a companycreates a major competitive advantage. Coordination efforts are largely outlined anddescribed in the creative brief, which is the final element of the an advertisement manage-ment program.

    THE CREATIVE BRIEFTypically, creatives work with a document called a creativestrategy or creative brief as they prepare advertisements. Thebasic components of a creative brief are provided in Figure 5.6.The creative takes the information provided by the accountexecutive and others in the creative brief to produce ads thatconvey the desired message. Details about each element of thecreative brief are provided next.

    The ObjectiveThe first step in preparing the creative strategy is to identifythe objective of the advertisement. Some of the most commonadvertising objectives include:

    Increasing brand awareness Building brand image Increasing customer traffic Increasing retailer or wholesaler orders Responding to inquiries from end users and channel

    members Providing quality information

    The creative must understand the main objective beforedesigning an advertisement. The objectives guide the designof the advertisement and the choice of an executional frame-work. An ad to increase brand awareness prominently dis-plays the name of the product. An ad to build brand imagecan display the actual product more prominently, as in theSoft Scrub advertisement shown on this page.

    The objective The target audience The message theme The support The constraints

    FIGURE 5.6The Creative Brief

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  • The Target AudienceA creative must know the target audience. An advertisement designed to persuade a busi-ness to inquire about new computer software will be different from a consumer adver-tisement created by the same company. The business advertisement should focus on thetype of industry and a specific member of the buying center. The more detail that isknown about the target audience, the easier it is for a creative to design an effective adver-tisement.

    Target market profiles that are too general are not very helpful. Rather than specify-ing males, ages 20 to 35, more specific information is needed (e.g., males, 20 to 35, col-lege educated, professionals). Other information such as hobbies, interests, opinions, andlifestyles makes targeting an advertisement even more precise. Notice that the Playtexadvertisement below is designed for young females who enjoy playing sports and haveactive lifestyles. The additional information helped create an advertisement that appealsto this particular market segment of females.

    The Message ThemeThe message theme is an outline of key idea(s) that the advertising program is supposedto convey. The message theme is the benefit or promise the advertiser wants to use toreach consumers or businesses. The promise, or unique selling point, should describe themajor benefit the good or service offers customers. For example, the message theme for

    152 Part 2 IMC Advertising Tools

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  • Chapter 5 Advertising Management 153

    an automobile could be oriented toward luxury, safety, fun, fuel efficiency, or drivingexcitement. The message theme for a hotel could focus on luxury, price, or unusual fea-tures, such as a hotel in Paris, France, noting the ease of access to all of the nearby touristattractions. The message theme should match the medium selected, the target market, andthe primary IMC message.16

    Notice the advertisement for milk featuring Sarah Michelle Gellar on the previouspage. The theme that milk provides the calcium for strong bones is consistently used in anumber of Got milk? advertisements, as is the visual display of the white mustache.Although the model and context change, the theme is consistent.

    Message themes can be oriented toward either rational or emotional processes.A left-brain ad is oriented toward the logical, rational side, which manages informationsuch as numbers, letters, words, and concepts. Left-brain advertising is logical and fac-tual, and the appeals are rational. For example, there are logical features that are part ofthe decision to buy a car (size, price, special features). At the same time, many cars arepurchased for emotional reasons. The right side of the brain deals with the emotions. Itworks with abstract ideas, images, and feelings. A car may be chosen for its color, sporti-ness, or other less rational reasons.

    Most advertising is either right-brained or left-brained. Effective advertising is pro-duced when there is a balance between the two sides. Rational, economic beings have dif-ficulty defending the purchase of an expensive sports car such as a Porsche. Many productpurchases are based on how a person feels about the good or service, combined with ratio-nal information.17 More complete information about the message theme is provided inChapter 7.

    The SupportThe fourth component of the creative strategy is the support. Support takes the form ofthe facts that substantiate the message theme. A pain reliever advertising claim of beingeffective for arthritis may support this point by noting independent medical findings ortestimonials from patients with arthritis. Notice the support claims Pearle Vision makesin its advertisement on the next page. The microTHINS are 30 percent thinner, 40 percentlighter, 4 times more scratch resistant, 10 times more impact resistant, antireflective, andhave 99.9 percent UV protection. The creative needs these supporting facts to designeffective advertisements.

    The ConstraintsThe final step in the development of a creative strategy is identification of any constraints.These can be legal and mandatory restrictions placed on advertisements, such as the motorvehicle ad code shown in Figure 5.7 that was developed by the government of Australia to

    Source: Maria Nguyen, Best Media for Car Marketers, B&T Weekly 54, no. 2493 (October 15, 2004), p. 21.

    Advertisements should not:

    Depict or condone dangerous, illegal, aggressive, or reckless driving. Draw attention to the acceleration or speed capabilities of a vehicle. Depict speed, racing, or other forms of competitive driving in any way associated with

    normal on-road use of vehicles. (Such scenes should be clearly identifiable as part of anorganized motor sport.)

    Show unsafe images of off-road driving. Use fantasy, humor, or self-evident exaggeration to bypass the codes provisions. Use disclaimers to justify including material that doesnt comply with the code.

    FIGURE 5.7Australian Motor Vehicle Ad Code

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    govern automobile ads. They include legal protection for trademarks, logos, and copyregistrations. They also include disclaimers about warranties, offers, and claims. Forwarranties, a disclaimer specifies the conditions under which they will be honored. Forexample, tire warranties often state they apply under normal driving conditions withroutine maintenance, so that a person cannot ignore tire balancing and rotation and expectto get free new tires when the old ones wear out quickly. Disclaimer warranties notifyconsumers of potential hazards associated with products. For instance, tobacco advertise-ments must contain a statement from the Surgeon General about the dangers of smokingand chewing tobacco. Disclaimers about offers spell out the terms of financing agree-ments, as well as when bonuses or discounts apply. Claims identify the exact nature of thestatement made in the advertisement. This includes nutritional claims as well as state-ments about serving sizes and other information describing the nutrients that are actuallyin the product.

    After these steps have been reviewed, the creative brief is complete. From this pointforward, the message and the media match, and actual advertisements can be produced.Effective creative briefs focus everyone involved on both the IMC message and the intentof the advertising campaign. This, in turn, gives companies better chances of reachingcustomers with messages that return measurable results and help guarantee the success ofboth the company and the advertising agency.

    When the creative brief has been completed, the design of the campaign shouldmove forward at a solid pace. Recent research suggests that campaigns designed in

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  • Chapter 5 Advertising Management 155

    S U M M A R YEffective advertising requires matching a noticeable message withappropriate media. Every aspect of a companys activities includ-ing company business cards, stationery, brochures, advertisements,and commercials should spell out the organizations identity andimage. The goal of an IMC program is to make sure all of theseelements speak with the same voice. Customers must clearlyunderstand the nature of the company, its goods and services, andits methods of doing business.

    This chapter reviews the advertising management process.Effective advertising is more likely to occur when the firm has awell-defined mission statement and targets its energies in thedirection of creating goods or services to meet the needs of a targetmarket. Then an integrated marketing communications programcan build on the central theme pursued by those in the firm.

    Advertising management begins with deciding whether anin-house department or group should develop advertisements orwhether an external advertising agency should be retained. Whenchoosing an external agency, the companys leaders establish clearsteps to lead to the best chance that the optimal agency will beselected. The steps include: (1) spelling out and prioritizing organi-zational goals, (2) carefully establishing quality selection criteria,(3) screening firms based on those criteria, (4) requesting referencesfrom firms that are finalists, (5) performing background checks,(6) requesting creative pitches, (7) making an on-site visit to get toknow those in the agency, and (8) offering and finalizing a contract.

    Common selection criteria used in selecting agenciesinclude: (1) the size of the agency matching the size of thecompany, (2) relevant experience, (3) no conflicts of interest,(4) production capabilities, (5) quality creative capabilities,(6) suitable media purchasing skills, (7) other services that canbe rendered as needed, (8) client retention rates, and (9) a goodchemistry between those in the company and those in the

    agency. Carefully utilizing these criteria increases the odds of amatch between the company and the agency, which heightenslevels of success.

    Within the advertising agency, the account manager performsthe functions of soliciting accounts, finalizing contracts, andselecting creatives to prepare advertising campaigns. Accountexecutives are go-betweens who mediate between the agency andthe client company. Account executives also help client organiza-tions refine their IMC messages and programs.

    Creatives prepare advertisements and are guided by the creativebrief. This document spells out: (1) the objective of the promo-tional campaign, (2) the target audience, (3) the message theme,(4) the support, and (5) the constraints. The message theme is anoutline of the key idea(s) that the program is supposed to convey.The constraints includes logos, warranties, disclaimers, or legalstatements that are part of various advertisements.

    The creative, account executive, and company should agreeabout which media to use in a campaign. Media are selectedbased on costs, types of messages, target market characteristics,and other criteria that are discussed in Chapter 8. The creativesthen complete the final elements of the ad, and the campaign isprepared.

    Advertising management is an important ingredient in thesuccess of an integrated marketing communications program.A quality ad that garners the attention of people in the targetaudience, makes a key memorable point, and moves buyers toaction is difficult to prepare. At the same time, company officialsand market account executives know that designing effective adswith tangible results is a challenging but necessary activity. It isimportant to go through every step of the process carefully tohelp the company achieve its marketing goals in both the shortand long term.

    R E V I E W Q U E S T I O N S1. What is a message theme? What role does a message theme

    play in an advertising campaign?2. Define advertising management. What are the four main steps

    involved?3. What is the relationship between advertising and the overall

    IMC process?4. What three main company activities are involved in the adver-

    tising management process? What role does the companysmission play in this process?

    5. What criteria can be used to help a company decide betweenan in-house advertising group and hiring an external advertis-ing agency?

    6. Besides advertising agencies, what other types of organiza-tions play roles in the communication process?

    7. What steps should be taken in selecting an advertisingagency?

    8. What evaluation criteria should be used in selecting an adver-tising agency?

    9. How important is interpersonal chemistry in selecting anadvertising agency?

    10. Describe the roles that general planning input, product specificresearch, and qualitative research play in the development ofan advertising campaign.

    2 months or less have the greatest likelihood of being highly effective. Those thattake longer tend not to be as effective. The goal is to move forward without rushing.Campaigns designed in 2 weeks or less are more likely to be ineffective as well.18

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    K E Y T E R M Smessage theme An outline of key idea(s) that the advertisingprogram is supposed to convey.leverage point The key element in the advertisement that tapsinto, or activates, a consumers personal value system (a value,idea, or concept).appeal How that leverage point and executional theme combineto attract attention, through humor, fear, sexual suggestiveness,rational logic, or some other method.executional framework How the message will be delivered(musically, visually, verbally, written statements, etc.).advertising management program The process of preparingand integrating a companys advertising efforts with the overallIMC message.general preplanning input The task of studying a client orga-nization by the advertising agency, from a rich set of sources, toprovide understanding and background before preparing an adver-tising campaign.product-specific research Research that identifies whetherthere are problems associated with a given product or service andthe major selling idea to be used in the advertising campaign.major selling idea The primary message concerning the prod-uct or service benefits to be transmitted to consumers in an adver-tising campaign.qualitative research Collecting subjective information andopinions about a company, its products, and services, oftenthrough the use of focus groups.values and lifestyle model (VAL) Research designed to predictconsumer behavior by understanding self-orientation and resources.personal drive analysis (PDA) A model that helps theresearcher understand individual psychological drives towardindulgence, ambition, or individuality, which affect brand choices.

    advertising account executive The key go-between for boththe advertising agency and the client company.creatives The people who actually develop and produce adver-tisements.advertising campaign management The process of preparingand integrating a specific advertising program in conjunction withthe overall IMC message.top of mind brand The brand that is nearly always mentionedwhen consumers are asked to identify brands that quickly come tomind from a product category.top choice The first or second pick when a consumer reviewshis or her evoked set of possible purchasing alternatives.puffery The use of an exaggerated claim about a product or ser-vice without making an overt attempt to deceive or mislead.promotional campaign Combining advertisements with othermarketing efforts into a larger, more integrated effort revolvingaround a central idea or theme.pulsating schedule of advertising Continuous advertisingwith bursts of higher intensity (more ads in more media) during thecourse of the year, most notably during peak seasons.flighting schedule of advertising A schedule in which com-panies present ads only during specific times and not at all duringoff-seasons.continuous campaign schedule of advertising When thecompany advertises in level amounts because product purchasesare essentially random events.support The facts that substantiate the unique selling point of acreat