MKTG3511 - Fall 2024 - 2

Advertising Management
• Chapter 2
Advertising
How advertising looks like?
Chapter Opener: Gatorade Covers all the
Bases
No sweat. You just don’t make the cut. In the “C-Store” campaign, that’s the
reason customers who don’t reek of athleticism are cut from the Gatorade
team and denied the privilege of downing their favorite drink.
The Practice of Advertising
What is Advertising?
Advertising is a paid form of persuasive communication that uses mass and
interactive media to reach broad audiences in order to connect an identified
sponsor with buyers (a target audience), provide information about products
(goods, services, and ideas), and interpret the product features in terms of the
customer’s needs and wants.
Advertising’s Basic Functions
• Identification
Identifies a product and/or the store where it’s sold.
• Information
New printing technology made commercial messages available to the masses
• Persuasion
With widespread marketing, recognizable brand names became more important.
Advertising: A Different
Proposition in the 19th
Century
P. T. Barnum was a pioneer in advertising and
promotion.
His flamboyant circus posters were more than
just hype. What other roles did they perform?
What are the Key Components of
Advertising? (1 of 2)
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.
What are the Key Components of
Advertising? (2 of 2)
3. Media
Targets prospective buyers by matching their profiles to media audiences.
4. Evaluation
Based on strategic objectives and professional standards.
Figure 2.1: Four Components of Advertising
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Principle (1 of 2)
Effectiveness means meeting the stated objectives, which can be
determined only if evaluation is built into the strategy.
What are the Common Types of Advertising?
(1 of 3)
• 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.
(2 of 3)
• Business-to-business (B2B) 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.
(3 of 3)
• 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.
• Specialized advertising
• Used to address specific areas such as health care, green marketing,
international campaigns.
Brand Advertising
Brand advertising
This ad promotes a brand, Crest
Whitestrips, and provides
information about the product as
well as reasons to buy it.
Retail Advertising
Retail advertising.
Retailers sometimes advertise nationally, but much of their advertising is
targeted to a specific market, such as this direct-mail piece for The Loft.
Institutional Advertising
Institutional advertising
This ad for a pharmaceutical trade
association uses a heart-tugging visual
and copy to show consumers the value of
producing drugs that help save lives.
Business-to-Business (B2B) Advertising
Business-to-Business (B2B)
advertising
Aflac used its memorable, quirky
duck in B2B advertising to create
a brand identity and help
businesspeople understand how
Aflac insurance can be part of an
employee benefit package at no
direct cost to the company.
What Roles Does Advertising Perform?
Marketing communication role
• It transforms a product into a distinctive brand by creating a brand
image.
Economic and societal roles

• Advertising works to create demand for brands and lower prices for
consumers.
• Advertising shapes our self-image and sense of style through things
we wear and use.
Principle (2 of 2)
Advertising generates cost efficiencies by increasing demand among
large groups of people, resulting in higher levels of sales, and,
ultimately, lower prices.
Evolution of the Key
Concepts of Advertising
Eras and Ages (1 of 3)
A Time Line of advertising eras and ages:
• The early age of print: 15th-18th century
Mechanization encouraged businesses to advertise beyond their
locations.
• The early age of agencies: 1840s-1890s
As advertisers became concerned with creating ads that worked,
professionalism took shape.
• The scientific era: 1900s-1950s
Modern advertising adopted scientific research techniques. Art and
science were blended.
• The creative era: 1960s-1970s
The power of agencies exploded, with a resurgence of art, inspiration,
and intuition.
• To view some of the most creative advertising ever produced, go to:
www.leoburnett.com
A Time Line of advertising eras and ages:
• The era of accountability and integration:
1970s to present
Clients want ads that produced sales. The public expects social
responsibility. Managers adopted IMC to better coordinate brand
communication.
• The social media era
In this new interactive world, consumers generate brand messages
and share experiences on social media sites.
Evolution from Mad Men to Math Men
Participants in IMC Process
Supporting Team
(Collateral Services)
Advertiser/ 1. Marketing
Client Research
2. Consolidated
engineering
Platforms
Agencies Publishers
Organizational Structure - Overall
Landscape of the Agency World
Agency Jobs
AE (Account Executive) Account Planner Copy Writer / Creative

Designer
Agency Jobs (cont’d)
Media Planner / Buyer Market Research/
Data Analyst
Types of Agencies (1 of 4)
• Full-service agencies
• Encompasses account management, creative services, media planning, and
account planning.
• In-house agencies
• Is a part of the advertiser’s organization
• Helps to manage costs and control brand image.
The A-list of advertising agencies
Here are a few of them to explore:
• Droga5
• R/GA
• Anomaly
• 72andSunny
• Specialized agencies
Specialize in certain functions, audiences, industries or markets.
• Creative boutiques
Small agencies that work only on the creative execution of an idea or product.
• Media-buying services
Specialize in the purchase of media for clients
• Agency networks and holding companies
• Large conglomerations of agencies under a central ownership
• One or more agency network, usually with multiple offices
How are Agencies Paid? (1 of 2)
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.
How are Agencies Paid? (2 of 2)
Two recent trends:
1. Performance incentive: 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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Advertising Management

Copyright © 2019 Pearson Education, Ltd. All Rights Reserved.

• Business-to-business (B2B) advertising

Economic and societal roles

AE (Account Executive) Account Planner Copy Writer / Creative

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