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
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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.
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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.
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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.
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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.
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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