CHAPTER 1:

THE NEW WORLD

OF MARKETING
COMMUNICATION
 DEFINING MODERN
ADVERTISING

The definition has evolved over time. It

includes:

Identification
Dating back to ancient times, advertising has
identified a product and where it was sold.

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DEFINING MODERN ADVERTISING...

Information
 Advances in printing technology
expanded literacy, making commercial
messages available to the masses.

Persuasion
 With widespread marketing, recognizable
brand names became more important such
as Ivory.

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DEFINING MODERN
ADVERTISING
Six basic attributes of
advertising
1. Paid communication
2. Sponsor is identified
3. Can be one-way, two-way, or
multiple-way
4. Reaches a broad audience
5. Conveyed through mass media,
interactive media, word of
mouth
6. Seeks to inform or persuade 1-4
 IS ADVERTISING THE ONLY TOOL?
THE ANSWER IS NO. THERE ARE OTHER TOOLS

The promotional toolkit includes also:

Publicity
Public relations
Direct-response
Specialties
And more

Together, these tools are known as marketing

communication, or
marcom.
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 WHY ADVERTISING? WHAT
ARE THE ROLES?

The marketing and communication role:

It transforms a product into a distinctive brand by creating
an image.

Economic and societal roles:

It works to create demand for brands and lower prices for
consumers.
It shapes our self-image and sense of style through things
we wear and use.

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 A KEY PRINCIPLE
“Advertising generates cost efficiencies by
increasing demand among large groups of
people, resulting in higher levels of sales
and ultimately, lower prices.”

* That’s the major role of advertising

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 TYPES OF
ADVERTISING
Brand advertising
Focused on long-term brand identity and image

Retail or local advertising

Focused on selling merchandise in a geographical
area

Direct-response advertising
Tries to stimulate an immediate customer response
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 TYPES OF
ADVERTISING

Business-to-business advertising
Sent from one business to another

Institutional advertising
Establishes a corporate identity; attempts
to win the public over to the
organization’s point of view
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TYPES OF ADVERTISING

Nonprofit advertising
Used by not-for-profit organizations to reach
customers, members, volunteers, and donors

Public service advertising

Usually produced and run for free on behalf
of a good cause
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 BRINGING IT ALL
TOGETHER
All advertising:

Demands creative, original messages.

Must be strategically sound, well

executed.

Is delivered through some form of

media.

Is developed as single ads or

campaigns.
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 HOW DID CURRENT
PRACTICES DEVELOP?
 ERAS AND AGES

A timeline of advertising eras and ages:

 The early age of print: 15th-17th century
Mechanization spurred literacy, which encouraged
businesses to advertise beyond their locations.

 The early age of agencies: 1840-1880

As advertisers became concerned with creating ads
that worked, professionalism took shape.
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 ERAS AND AGES
A timeline of advertising eras and ages:
 The scientific and regulation era: 1900-1930
Modern advertising adopted scientific research
techniques. Art and science were blended.
 The creative revolution: 1960s-70s
The power of agencies exploded, with a resurgence of art,
inspiration, and intuition.
 For examples of the most creative advertising ever
produced, go to: www.leoburnett.com
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 ERAS AND AGES

A timeline of advertising eras and ages:

 Era of and accountability and integration:
1970s to present
Clients wanted ads that produced sales. The public
expected social responsibility as well.

 Era of change: integration, international, and

Internet: 1980 to present
Managers adopted IMC to better coordinate brand
communication. The digital era created instant
connectivity, including word of mouth. 1-15
 SO WHAT ARE THE KEY
COMPONENTS OF
ADVERTISING?

1. Strategy
The logic behind an advertisement stated in
objectives that focus on areas such as sales,
emotional appeal, or brand reputation.

2. Message
The concept behind a message and how it is
expressed based on consumer insights.

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SO WHAT ARE THE KEY
COMPONENTS OF
ADVERTISING??
3. Media
Targets prospective
buyers by matching
their profiles to media
audiences.

4. Evaluation
Based on strategic
objectives and
professional standards
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THE AGENCY WORLD
 WHO ARE THE KEY PLAYERS
IN ADVERTISING?

The advertiser:

The organization sponsoring the message

Likely to have a marketing team that initiates the

advertising
effort

Hires the advertising agency

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WHO ARE THE KEY PLAYERS?

The agency:

Creates, produces, and distributes the message.

Employs experts who are passionate about their work.

Can negotiate the best media deals for clients.

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 WHO ARE THE KEY
PLAYERS?

The media:
Channels of communication that carry the message to the
audience.

Many are large media conglomerates such as Time Warner

and Viacom.
Mass media enables advertisers to reach many people with a
single message in a cost-efficient way.
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WHO ARE THE KEY PLAYERS?

Professional suppliers and

consultants:

Provide specialized services

to advertisers and agencies.

Includes artists, writers,

photographers, producers, printers,
and other freelancers.

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 TYPES OF AGENCIES

Full-service agency
Encompasses account management, creative services,
media planning, and account planning.

In-house agency
Is a part of the advertiser’s organization; helps to
control costs and maintain control over brand image.

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 TYPES OF AGENCIES…

Specialized agency
 Specializes in certain functions, audiences, industries or
markets.

Creative boutique
 A small agency that works only on the creative
execution of an idea or product.

 Media buying service

 Specializes in the purchase of media for clients
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 TYPES OF AGENCIES

Agency networks
Large conglomerations of agencies under a central
ownership

Holding companies
One or more agency networks, usually with multiple
offices

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 HOW ARE AGENCY JOBS
ORGANIZED?
The five main areas:
1. Account management
2. Account planning and research
3. Creative development and research
4. Media research, planning, and buying
5. Internal operations

Let’s take a look at each one…

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 AGENCY JOBS…
Account management
 This team acts as a liaison between the client and agency.
 The account executive interprets the client’s marketing
research, strategy for the agency.

Account planning and research

 This team gathers market intelligence and acts as the voice
of the consumer.
 Strategic specialists research consumers’ wants, needs and
brand relationships.
work of an account executive. 1-27
 AGENCY JOBS…

Creative development and production

 Includes copywriters, art directors, and producers.

Media research, planning, and buying

 This department provides research, planning, and buying
services.

Internal operations
 Includes traffic, print production, finance, and human
resources. 1-28
HOW ARE AGENCIES PAID?

From three main sources:

1. Commissions: based on
media billings.
2. Fees: based on an hourly
rate or project. Also covers
travel and various
expenses.
3. Retainers: a regular
amount billed each month,
based on projected work. 1-29
 HOW ARE AGENCIES PAID?

Two recent trends:

1. Based on performance: the agency is paid a

percentage of the client’s sales or marketing budget.

2. Value billing: the agency is paid for its creative and

strategic ideas rather than for executions and media
placements.

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 HOW IS THE
PRACTICE
OF ADVERTISING
CHANGING?
 CONSUMER IN CHARGE

The days of hammering people with images, shoving

them down their eyeballs are over.

Consumer-generated advertising creates valuable

brand publicity.

Consumers are taking control of media and marketing

through the Web and social media.
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 BLURRING LINES AND
CONVERGING MEDIA

Television is still a major player, but the number of cable

channels has exploded.

Digital media has fragmented the media world with new, ever-
changing forms.

Agencies must take a stronger leadership role in the

development of brand strategy.

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 ACCOUNTABILITY AND
EFFECTIVENESS

Accountability: This has grown in importance over

the past two decades.

Effectiveness: In tight economic times, it is more

critical than ever to deliver results.

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 A QUESTION FOR
YOU…

What is Effective Ad?

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 ANSWER
Effective ads deliver the message the
advertiser intended, and consumers respond to
as the advertiser hoped they would.

Effectiveness is judged according to

predetermined objectives.

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 INTEGRATED MARKETING
COMMUNICATION (IMC)
The first principle of IMC:
“Everything communicates!”

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 INTEGRATED MARKETING
COMMUNICATION (IMC)

This principle applies to all marketing

communication:
Media: print, broadcast, out-of-home, digital.
Platforms: advertising, public relations,
events and sponsorships, direct response.
All communications efforts are planned for
maximum synergy (collaboration).
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THANK
YOU