Advertisings Role in IMC

Part 1: Foundations Chapter 2

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Key Points
Define the role of advertising within IMC Explain how the four key concepts in IMC

relate to advertising Identify the key players in IMC and how the organization of the industry affects advertising List and explain the six critical steps in the IMC process Summarize the structure of the advertising agency industry

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Chapter Outline
Roles of ad on IMC II. Marketing Mix & IMC Tools III. What is Marketing? IV. The Key Players and Markets V. The Marketing Process VI. How Agencies Work
I.

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Marketing Mix
Product design,

Product
Cost, Profit, value expectation Advertising, Public Relations, Sales promotion, Personal selling, Direct marketing, Point of Purchase Packaging
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Branding Maintenance, packaging

Price
Wholesaler, retailer, transporter, intermediary

Place

Promotion

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Marketing Mix (4ps) & IMC tools

Integrated Marketing communication (IMC) is the practice of unifying all marketing communication tools consistent, persuasive message promoting co.s goals

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THE KEY PLAYERS: find out the IMC tools that Kenzo uses.

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FUNCTIONS OF ADVERTISING
Advertising - basic functions:
1. 2. 3. 4. 5. 6. 7. Builds awareness of products & brands Creates a brand image Provides product & brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces past purchases & brand experiences
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TYPES OF ADVERTISING
1.

9 major types of advertising: Brand Advertising - most visible

Long-term brand identity & image Use humor eg Visa Gold (Exhibit 1.7) Mass target (national & international)

2.

Retail or Local Advertising

Retail:
i. ii. iii.

Message products in area Objectives - stimulate store traffic & distinctive image for retailer Local Retailer/manufacturer/distributor - offers products - restricted geographic area

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Brand Ad
GUCCI LOUIS VUITTON PRADA FENDI CASIO ROLEX TAG HEUER CHARRIOL PANASONIC TOSHIBA LG MITSUBISHI MERCEDES BENZ HONDA NISSAN DIESEL NIKE ADDIDAS LEVIS LEE BLACKBERRY MOTOROLA IPHONE S& P SWENSEN MK etc.
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TYPES OF ADVERTISING
3.

Political Advertising
Politicians - vote for them or their ideas

4.

Direct-Response Advertising
Use any medium Message - stimulate sale directly Telephone/mail response - product delivered direct Evolution of the Internet - advertising medium

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TYPES OF ADVERTISING
5.

Business-to-Business Advertising
Directed at retailers, wholesalers & distributors Most business advertising in publications or professional journals

6.

Institutional Advertising corporate advertising

Establish corporate identity or win public over to its point of view Eg: Nike - reinforce brand image - ad campaign for the Paralympics (Exhibit 1.8)
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TYPES OF ADVERTISING
7. Nonprofit Advertising Not-for-profit organizations - charities - advertise for customers, members, volunteers, donations 8. Public Service Advertising Public service announcements PSA Message - good cause - eg stop drunk driving Ad creation, space & time - free of charge 9. Interactive Advertising Individual consumers - access to computer & Internet

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WHAT MAKES AN AD EFFECTIVE

Ad that creates the impact (goal oriented)

2 levels

1) relevant message that catches attention, interests, remains in memory 2) ad achieves marketing objective

????AD wins the award????

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What is Marketing?

The way a product is

designed, tested, produced, branded, packaged, priced, distributed, and promoted

A process to satisfy consumer needs &

wants - provide goods & services

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Key Concepts in Marketing

1.MARKETING CONCEPT: CUSTOMER FOCUS
Marketing:1) identify the needs & wants 2) develop the product

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Key Concepts in Marketing

2.CONCEPT OF EXCHANGE
Marketing: economic exchange: exchange of product (goods and services, ideas) for something of value Advertising: information exchange

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Key Concepts in Marketing

3. CONCEPT OF BRANDING
Marketing: Branding: the process of creating special meaning for a product to make the product distinctive Brand Image ( special meaning): a result of branding

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Key Concepts in Marketing

4. CONCEPT OF ADDED VALUE
Marketing: add value to 4ps (product, price, place, promotion)
e.g. more feature to the product, lower price, more convenient to buy Advertising: branding, value e.g. Louis Vuitton: Luxury, exclusive Volvo: safety, competent, secure

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The Key Players and Markets

The marketer -The organization, company, or manufacturer producing the product and offering it for sale -The advertiser or client (from the agencys point of view) Suppliers and vendors Other companies that manufacture the materials and ingredients used in producing the product Distributors and retailers Various companies that are involved in moving a product from its manufacturer to the buyer

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What is Market?

General definition
Place where the exchange between buyer and seller took place

Marketing Definition

A particular type of buyer e.g. youth market, motorcycle market

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Types of Market

Consumer People who buy products for household or personal use Business-to-business (Industrial) is made of Company that buy product to use in their own business or in making other products e.g. factory Institutional is made up of non-profit and profit organization which provides product for the benefit of society e.g. school, university Channel is made up of reseller or intermediary - retailers, wholesalers, distributor which buy product for resell e.g. Department Store, hypermarket

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Examples
Students bought jeans, sneakers, pizza,

textbooks, computer ABC Company bought computer for billing and inventory control University bought furniture, cleaning supplies, computer, office supplies Tesco Lotus bought the truck for transporting purpose.
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The Marketing Process

Key strategic Directions

1. 2. 3.

4. 5. 6. 7.

Conduct research and develop a situation analysis Set objectives for the marketing effort Assess consumer needs and wants, segment the market into groups and target specified markets Differentiate and position the product Develop the marketing mix strategy Implement the plan Evaluate the effectiveness of the strategy
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Segmentation Target market Differentiation Positioning

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Terms in Marketing
Product services, ideas & goods
Product category - classification assigned to

product e.g. Toyota, Honda automobile category Rolex, Casio wrist watch category Target market - consumers potential customers for goods & services Brand: distinguish identity that makes the product different from other competitors
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How Agencies Work

Full-Service Agencies Include the four major staff functions
Account management Creative services Media planning and

Specialized Agencies Specialize in certain functions, audiences, industries or markets

Creative boutique Media-buying services

buying Account planning

Also have accounting,

traffic, production, and HR departments

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How Agencies Work

Account Management Acts as a liaison between the client and the agency Responsible for interpreting the clients marketing strategy Focuses on research & strategy e.g. Account Director, Management Supervisor, Account Supervisor, Account Executive
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Creative Development People who write People who design ideas for ads and commercials People who convert these ideas into commercials e.g. creative, copywriter,art director

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How Agencies Work

Media Planning/Buying Recommends to the client the most efficient means of delivering the message Responsible for buying, planning, and research e.g. media planner, media buyer Account Planning Gathers all information on the market and consumers and acts as the voice of the consumer Focuses on the planning Prepares comprehensive recommendations e.g. strategy planner

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How Agencies Work

Internal Agency Services Traffic department Print production department Revenues and Profits Commission (percentage of the media cost) e.g. 15% Fee (hourly fee/ rate) Retainer (monthly or yearly) <-- amt of work+hourly rate

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Top Agencies

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Homework

Each group brings ONE example of ethical/unethical ad

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