advertising's role in marketing - society copy complete
TRANSCRIPT
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
1/56
Advertisings role inMarketing
Advertising BBA/ MBA
SESSION 4
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
2/56
Do products sell on their own?
Early 1900s post-industrial
revolution marketing wasproduct-focused.The belief: a good product
sells by itself .
2
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
3/56
Ralph Waldo Emersonmousetrap !
Emerson, 19 th century intellectual, &philosopher
said: If a man can make a bettermousetrap..
the world would beat a ath to his 3
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
4/56
CASE STUDY PUMA:
German athletic shoes...
4
Pumas innovative retro-designscater to be trendy individualists wholike to make a style statement.
Pumas success in a crowded markethas earned the brand a place amongthe top three brands in Germany.
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
5/56
CASE STUDY PUMA:
German athletic shoes...
5
Retailers praise Puma for itsdesigning creativity, eye-catching in-store merchandising displays.
To succeed a brand like Puma needsan effective advertising campaignoffering it customers outstanding value.
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
6/56
6
CASE STUDY PUMA:
German athletic shoes...
Much of the value is created bymarketing decisions that determineproducts design, ease of use, as well
as distribution, pricing, and marketingcommunication.
Advertising is just one part of the
total marketing effort however, aneffective advertising requires soundunderstanding of the clients
marketing program.
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
7/567
CASE STUDY PUMA:
German athletic shoes...
Apart from traditional advertising,
Puma also uses viral marketing , tospread the word especially aboutnew products, to an online network
of users.
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
8/56
CASE STUDY PUMA:
German athletic shoes...Puma stays hip through designinnovation and also by linking upwith other icons , such the tennis
star Serena Williams.
8
This helps create a distinctivebrand attitude & an innovativespirit that drives its mass marketingcommunication in non-traditionalways to connect with customers.
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
9/56
Marketing over the years...
Marketing traditionally has been
seen as the task of creating,promoting, and deliveringgoods and services to consumers
and businesses.
9
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
10/56
In most consumer-oriented firms
...Marketing has a major say inthe way a product is
conceived, designed,tested, produced,branded, packaged,priced, distributed &promoted .
10
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
11/56
Marketing today is becoming ...
... increasingly customerfocused!
Businesses that have adoptedthis perspective, arerecognized as leaders incustomer-focused marketing
e.g. Harley-Davidson, Intel,IBM, Google, Coca-Cola...
11
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
12/56
Marketings attention has...
...over the years moved frommeeting consumers needs &wants. ..
to understanding...to anticipating...to creating...
to co-creating consumersneeds & wants!
12
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
13/56
Emerging trends in marketingcommunications...
Many forces today, impact acompanys marketingcommunications.
Financial pressures compelbusinesses to sign up agencies thatunderstand accountability.
Emerging social trends are affectingthe way marketing messages travel.Tasks performed by advertising
agencies are also changing . 13
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
14/56
Emerging trends in marketingcommunications...
Companies expect advertisingagencies to deliver tangibleresults .
Every promotional activity mustyield measurable gains in sales,market share, brand awareness, orcustomer loyalty.
CEOs, CFOs and CMOs, all havean eye on advertising spends.
14
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
15/56
Emerging trends in marketingcommunications...
Many companies rely less on the30sec TV spots - pursue alternativemeans of communication.
Names, profiles, & contactaddresses of prospective customers
are collected & tracked at brandactivation events.
15
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
16/56
Changing roles in Ad-agenciesKey functions in an ad-agency:
16
CREATIVEPLANNING &DEVELOPME
NT
ACCOUNTMANAGEMENT
[CLIENT
SERVICE]
MEDIAPLANNING &
BUYING
STRATEGICPLANNING
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
17/56
17
CREATIVE
DEPARTMENT
ACCOUNTMANAGEMEN
T [CLIENTSERVICE]
The personsresponsible formaintaining a constant
link between the
agency & the client.
The Creative-Copy-Artteam responsible forcreating, inspiring,
delivering advertising.
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
18/56
18
STRATEGICPLNNING
MEDIADEPARTMENT
The personsresponsible forplanning, buying media
(time or space) andplacing advertisements
in them. A specialist function
requiring in-depth
understanding of clientsbusiness & directingdevelopment of
advertising in the agency.
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
19/56
Account management : Traditionalrole:
Understanding / interpretingclients marketing strategy. Utilizing agency resources(creative & media) to meet clientsadvertising needs.
Presenting agencys work andobtaining approvals.Managing client billing &payments.
19
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
20/56
Creative development &production : creating, inspiring,delivering advertising.Home Team : Creative Directors,Creative Managers, Copy-writers, ArtDirectors, Producers and other staff.External support: Outsourcing of
creative work to freelance artists,directors & producers a commonpractice now - driven by cost °ree of expertise required.
20
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
21/56
Media planning and buying : mediadepartment in full service agencies.
Three functions : planning, buyingand research.
Monitoring is generallyoutsourced.
21
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
22/56
Strategic planning: specialistfunction provided by major advertisingagencies. Focus on:
Information/ insight gathering orresearch - analysis of data;Interpretation of client strategy;
Support for creative development;Strategic interaction with client oncampaigns.
22
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
23/56
Internal agency services :1. Production
2. Traffic department to track
projects at hand in creative &ensure meeting of deadlines; and
3. Administration/HR, Finance .
23
Changing roles in Ad-agencies
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
24/56
Growing demand for accountabilityrequires Account Managers to seekevidence of success of campaigns to
present to the client. Creative Directors/ Managers
develop advertisements & promotional
in-house. materials. Much productionwork outsourced to freelance artists.
24
So what has Changed?
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
25/56
Strategic Planner represents voiceof consumer in the agency. Creativeand Account Planners contribute ideasto client on strategic marketingdirection, and the types ofcommunication best suited to reaching
target audience.
25
So what has Changed?
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
26/56
A new partnership has emergedamong Account Executives, BrandManagers, Account Planners, andCreatives.
Most advertising agencies areexpected to do more than createads.
26
So what has Changed?
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
27/56
27
How impactful are these Ads.
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
28/56
How are ad agencies paid?
Commission Basis A fixed percentage commission,traditionally 15% of Media Cost (nowabout 7-10% on average) paid to full-service agencies.
28
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
29/56
How are ad agencies paid?
Fee Basis An annual fee agreed & paid by the
Client based on a calculation of:a. Man-hours spent on a client(workload);
b. Agreed % Overhead &c. Agreed % Profit.Fee works better for larger clients!
29
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
30/56
WORKING WITH AN ADVERTISING AGENCY:Starting a New relationship
What Clients look for in an Agency?Competence : Quality of work
Expertise: Knowledge of industry,products Reputation : image aspects
Compatibility: ease in communication,responsiveness Cost Consciousness: working withbudgets
30
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
31/56
THE PITCHCredentials presentationCampaign presentation
Appointing the AgencyContract or Agency Agreement
Resigning the old AgencyClearance / NOC
WORKING WITH AN ADVERTISING AGENCY:Starting a New relationship
31
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
32/56
Formal System ofdocumentation:
Briefs
Contact ReportsPresentations & reworkFinalization of CampaignsCampaign ApprovalsMedia Planning & SchedulingMedia Approvals, Placements &Monitoring
Invoices & Bills Collection
WORKING WITH AN ADVERTISING AGENCY:Starting a New relationship
32
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
33/56
Advertisings role in
Society
Advertising BBA/ MBA
SESSION 5
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
34/56
Key topics to be discussed
1. The power of advertisingand its implications onsociety ;
2. Regulations and regulatoryagencies;
3. Key ethical issues &challenges;
4. Solutions & way forward.
34
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
35/56
Advertisings Societal Role
Does advertising c reate amaterialistic culture, or does itsimply reflect the culture it exists
in?Critics believe advertising shapessocial trends.
Advertising professionals argueadvertising simply mirrorsprevailing value system.
35
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
36/56
Advertisings Societal Role
1. Advertising & demand creation:Does advertising drive people to
feel a need or want - sometimesunnecessarily?
Does advertising simply anticipateor fulfill a need?
Companies invest money onresearch to find out.
BUT, Steve Jobs believes it is notup to the customer to say what heneeds. 36
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
37/56
Advertisings Societal Role 2. Shaping or mirroring society :
Does advertising cross linebetween reflecting social values &creating them?
Do Size 0 models in advertisingcause young women to have eatingdisorders?
Can advertising manipulatepeoples choices through nonstop TV,radio, print, Internet, and outdooradvertising?
37
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
38/56
Advertisings Societal Role
3. Over-commercializing society:Does advertising make people toomaterialistic?
Does advertising condition theaudience to believe the answer isalways a product?
Do product placements in sportingevents, entertainment programs orsoaps unduly influence customers ?
38
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
39/56
Five key social responsibilityissues !
1. Poor taste & offensiveadvertising:
Some advertising affects peoplessensitivities based on language orvisuals used. Some make peopleuncomfortable in the presence ofadults or children.
39
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
40/56
Five key social responsibilityissues!1. Poor taste & offensiveadvertising:
40
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
41/56
Five key social responsibilityissues!
2. Use of sex in advertising: Use of sex attracts audiences andhas been deployed for years. Overexposure or irrelevant useraises the ethical question. Censorship codes are effectivesometimes, and sometimes not.
41
k l b l
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
42/56
Five key social responsibilityissues!3. Use of stereotypes in advertising:
Gender stereotypes: men asstrong, independent, andachievement oriented; women as
softer, nurturing, and moredependent home -makers. Racial and ethnic stereotypes;
Age-related stereotypes: olderwomen, senior citizens, children.
42
k l b l
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
43/56
Five key social responsibilityissues!
4. Message relatedissues: Misleadingclaims: health andfitness products,weight-loss ads,dietary
supplements,patches, beautycreams
43
Fi k i l ibili
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
44/56
Five key social responsibilityissues!4. Message related issues:
Puffery: use of superlatives,over -the- top claims,unsubstantiated, vague,
exaggerated. Sugar Frosted Flakesare g -r-eat; Gillette the best aman can get.
44
Five key social responsibility
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
45/56
Five key social responsibilityissues!4. Message related issues:
Comparative advertising: allowedin some markets, not allowed inothers subject to guidelines andevidence to support claim regarding
competition.
45
Fi k i l ibili
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
46/56
Five key social responsibilityissues!4. Message relatedissues:
Endorsements:use of
spokespersons,qualified orexperienced tomake the
endorsementbelievable.
46
Fi k i l ibilit
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
47/56
Five key social responsibilityissues!4. Message related issues:
Demonstrations: common techniquefor demonstrating productperformance. Not recommended whencontrived to deceive the audience &create a false perception.
47Text: The softness of Surf.
Five key social responsibility
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
48/56
Five key social responsibilityissues!5. Product related issues:
Controversial / not suitable foradvertising products : firearms,gambling, unsafe products; products
restricted by social norms.
48
Fi k i l ibilit
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
49/56
Five key social responsibilityissues!5. Product related issues:
Unhealthy products: tobacco, fastfood products with cholesterolcausing saturated fats (in somemarkets) - the McDonaldscontroversy.
49
Fi di l i
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
50/56
Finding solutions:WHO IS RESPONSIBLE?
Government?Regulatory authorities?
Professional groups, Customerprotection agencies?Industry?
First: understandingTrademark & Copyright.
50
Fi di l i
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
51/56
Finding solutions :WHO IS RESPONSIBLE?
Understanding trademarks andcopyright: Trademark: a name or distinctivesymbol that identifies the sellersbrand and differentiates it fromothers in the market; TM Registrar /Patent Office.
Copyright: the exclusive right touse or reproduce an original work fora specified time. InternationalProprietary Rights Organization.
51
Fi di l i
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
52/56
Finding solutions :WHO IS RESPONSIBLE?
PEMRA: Pakistan Electronic MediaRegulatory Authority formed in March2002, responsible for:
Regulating and developing lower-cost media; Improving standards of information,education and entertainment onbroadcast media; Issuing licenses for establishment ofchannels radio stations.
52
Fi di l ti
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
53/56
Finding solutions :WHO IS RESPONSIBLE?
TV censorship: Censor Board atPTV;
Print media: Editors responsibility;
Radio: Channels responsibility; Outdoor: No regulation;Exception: Tobacco control laws :
Pakistan is a signatory to the WHOFramework Convention of November2004.
53
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
54/56
Defining ethics in Advertising
Ethics: A set of moral principlesthat guide actions and create a
sense of responsible behavior.Is there consensus on what isethical?
54
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
55/56
Defining ethics in Advertising TYPES OF ETHICAL CODESPersonal ethics: Personal judgmentand moral reasoning - rests on anintuitive sense of right and wrong. Itis up to an individual to apply this ina work situation as well.Professional ethics: A code ofstandards that identifies how
professionals should respond whenfacing an ethical dilemma. Industrystandards help decide what isethically correct.
55
-
8/10/2019 Advertising's Role in Marketing - Society Copy COMPLETE
56/56
Defining ethics in Advertising
TYPES OF ETHICAL CODESSocial ethics: Social responsibility
that motivates a business to make apositive impact on society. Society &social welfare institutions play therole of watchdogs.