Advertising’s Role in IMC
Part 1: Foundations
Chapter 2
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-2
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.
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-3
Marketing Mix
Product design,
Product
Branding
Maintenance,
packaging
Cost,
Profit,
Price
value expectation
Advertising,
Place
Public Relations,
Sales promotion,
Personal selling,
Wholesaler,
retailer,
transporter,
intermediary
Promotion
Direct marketing,
Point of Purchase
Packaging
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-4
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
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-5
THE KEY PLAYERS: find out the
IMC tools that Kenzo uses.
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-6
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
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-7
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)
Retail or Local Advertising
2.

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
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-8
Brand Ad
GUCCI LOUIS VUITTON PRADA FENDI
CASIO ROLEX TAG HEUER CHARRIOL
PANASONIC TOSHIBA LG MITSUBISHI
MERCEDES BENZ HONDA NISSAN
DIESEL NIKE ADDIDAS LEVI’S LEE
BLACKBERRY MOTOROLA IPHONE
S& P SWENSEN MK etc.
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-9
TYPES OF ADVERTISING
Political Advertising
3.

Politicians - vote for them or their ideas
Direct-Response Advertising
4.



Use any medium
Message - stimulate sale directly
Telephone/mail response - product delivered
direct
 Evolution of the Internet - advertising
medium
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-10
TYPES OF ADVERTISING
Business-to-Business Advertising
5.


Directed at retailers, wholesalers & distributors
Most business advertising in publications or
professional journals
Institutional Advertising – corporate
advertising
6.


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)
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-11
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
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-12
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????
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-13
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-14
Key Concepts in Marketing
1.MARKETING CONCEPT: CUSTOMER
FOCUS
Marketing:1) identify the needs & wants 2) develop the product
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-15
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-16
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-17
Key Concepts in Marketing
4. CONCEPT OF ADDED VALUE
Marketing: add value to 4p’s (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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-18
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 agency’s 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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-19
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-20
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-21
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.
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-22
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
Segmentation
Target market
Differentiation
Positioning
1-23
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
Wells, Moriarty, Burnett & Lwin
ADVERTISING Principles and Effective IMC Practice
1-24
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-25
How Agencies Work
Account Management
 Acts as a liaison between
the client and the agency
 Responsible for
interpreting the client’s
marketing strategy
 Focuses on research &
strategy
e.g. Account Director,
Management Supervisor,
Account Supervisor,
Account Executive
Wells, Moriarty, Burnett & Lwin - Xth Edition
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
ADVERTISING Principles and Effective IMC Practice
1-26
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
Wells, Moriarty, Burnett & Lwin - Xth Edition
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
ADVERTISING Principles and Effective IMC Practice
1-27
How Agencies Work
Internal Agency
Services
 Traffic department
 Print production
department
Wells, Moriarty, Burnett & Lwin - Xth Edition
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
ADVERTISING Principles and Effective IMC Practice
1-28
Top Agencies
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-29
Homework
Each group brings ONE example of
ethical/unethical ad
Wells, Moriarty, Burnett & Lwin - Xth Edition
ADVERTISING Principles and Effective IMC Practice
1-30