Business Administration Department

 

BA344 Advertising Management
Dr. Geoffrey Lantos                                                                                          Spring 2008

 

CLASSROOM LECTURE/DISCUSSION OUTLINE

 

INTRODUCTION AND OVERVIEW OF ADVERTISING AND ITS ENVIRONMENT

 

INTRODUCTION TO THE COURSE: COURSE STRUCTURE AND ASSIGNMENTS

 

I.       Course overview: Syllabus and Exam Template

II.      Assignment Options: Advertising Active Involvement Learning Assignments, Classroom Debates 

            Audio: 2002 Mercuries #52: Truth “Rip It Out”

III.    Mandatory assignment: Team Advertising Campaign Term Paper Project

III.    Resources: Using the Business Library, Proofreader’s Marks, Classroom Lecture/Discussion Outline, Transparency Handout Packet, 18 Ideas For Becoming A Master Student, Creative and Media Strategy for the Internet (online)

IV.    Miscellaneous Handouts: Media Data Analysis Practice Problems, one article, two minicases, Exercise 42, Exercise 46, and Exercise 49, Student Information Inventory (Please hand in at end of class session.)

 

THE ROLE OF ADVERTISING IN ORGANIZATIONS

(Related Reading: O’Guinn Chapter 1, pp. 4-34, 37-41; Chapter 3)

 

I.       Introductory Comments

II.      Working Definitions

·         Marketing -

·         Product -

·         Price -

·         Place -

- Promotion (Promo) (Marketing Communications) –

- Integrated Marketing Communication (IMC) – A strategic business process used to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communications programs over time with consumers, customers, prospects, employees, associates, and other targeted, relevant external and internal audiences (i.e. stakeholders).  The goal is to generate both short-term financial returns and build long-term brand and shareholder value. 

- Promotional (marketing communications) tools:

1.   Personal Selling (PS) (Direct Selling) - in-person, persuasive communication in a conversation between a representative of the company and one or more prospective customers, designed to influence the person's or group's purchase decision, i.e., for the purpose of ultimately making a sale.  Persuasive communication in a conversation between a representative of the company and one or more prospective customers, designed to influence the person's or group's purchase decision, i.e., for the purpose of ultimately making a sale.

2.   Publicity - Any form of nonpaid, nonpersonal, commercially significant news or editorial comment about ideas, goods, or services in the mass media.

                    - Nonpaid, nonpersonal, newsworthy media exposure.

Public Relations (PR) - The communications function that evaluates public attitudes, identifies the policies and procedures of an organization with the public interest, and executes a program of action to earn public understanding and support.

                                              - Building good relations with the organization's various publics (stakeholders, constituencies) by obtaining favorable publicity, developing a good "corporate image" [offensive strategies], and handling or heading off unfavorable rumors, stories, and events [defensive strategies].

3.   Sales Promotion (SP) (Promotions) - Short-term incentives (lowered price [price promos] or added value [nonprice promos]) to speed up product movement from manufacturer to consumer, offered to either the sales force, trade, or customers (consumer or business customers), to encourage them to try, buy sooner and/or purchase in larger quantities.

                                       - Short-term incentives to encourage sale of a product or service.

Audio: 2006 Mercuries #54 Buffalo Wild Wings “Free Stick” 

 

4.       Advertising (Adv., Advert.) - Any paid form of nonpersonal presentation and promotion of ideas, goods, and services by an identified sponsor making predominant use of the mass communication media.

          Audio: 2003 Mercuries #37 “Shiznet (Who is the sponsor?)

   End-of chapter questions: Ch. 1 #8

                    - Two Advertising Trends:

(1) Web 2.0

(2)  Branded Entertainment (Advertainment, Madison and Vine, Convergence of Content and

    Commerce)

      DVD: BMW Short films

       . Video: Frontline: The Persuaders—Branded Entertainment (7 min.)

III.               The advertising industry players/participants

IV.              Purposes of Advertising

.  Why not rely on word-of-mouth?

        Ch.1 # 7

       . Video: 1998 Festivals #13 New Freedom “Flowers”; 1992 Festivals # 44 Phillips Milk of Magnesia “Raymond and Maureen Campaign” 

·         Roles of Advertising

·          Functions/Purposes of Advertising

Audio: 2003 Mercuries # 51 Christ Church “Small Moments-Small Ways” (Info) Audio: 2006 Mercuries #12  M.A.D.D. “Lucky” (inform)

     . Videos: 1998 Festivals # 18 Delonghi “Dinner”; # 19 Plascon “Park Bench”; #20 Daily Independent Classifieds “Flasher” (Info)

Audio: 2003 Mercuries #12 Ad Council “Skim Latte”; 2003 Mercuries #45 MADD “Dial”; 2004 Mercuries #17, 2006 Mercuries #58 Oregon State Fair “Handy Andy Hands” (Info)

 McKnight Foundation “Changes”

. Video: Clios 40th Pt. 2 # 61 Miller Lite “Wrestler” 

          Ch. 1 #1

·         Prerequisites for Successful Advertising

·         Push vs. Pull communications strategy

V.     Advantages and Disadvantages of Advertising

 . Video: 1993 Festivals #13 “Diet Coke”

. Audio: 2002 Mercuries #21 “Explosive Diarrhea” (sensitive products)

. Video: Frontline: “The Persuaders” – Commercial Clutter (2 min.)

  Audio: 2003 Mercuries #32: Hollywood Video “Lord of the Rings” (short message)

  Audio: 2005 Mercuries #1 “Abbreviated” (short message)

 

ORGANIZATION FOR ADVERTISING:

THE ADVERTISING AGENCY AND THE CLIENT

(Related Reading: O’Guinn Chapter 2; Ogilvy Chapters 1, 3, 4, 5, 6)

 

I.        Overview of Advertising Agency Work

A. Organization of the advertising industry

·         The advertising agency business

B. Structure and work of an ad agency

Ch. 2 #7

                            . Video: Want A Job in Advertising? (10 min.)

                            .            Videos: Mad Dogs and Englishmen: Visiting Mad Dogs & Englishmen (8 ½ min)

                                                 Mad Dogs and Englishmen: Part I: Advertising Foundations and the Environment (8 min.)

II.       Hiring an Ad Agency

A.Why hire an agency?

      Ch.2 #5

B. Agency compensation

Ch. 2 #8

III.    Agency/Client Relationships

         A.  Agency Reviews (“Pitching the Business”)

1. Standard New Business Presentation (Credentials Presentation, Capabilities Presentation

                      Nonspeculative Presentation)

                   2. Speculative Presentation (Creative Shootout, Spec Creative))

         B.   Criteria to Consider in Selecting an Ad Agency

   C.   Why Are There Frequent Agency Switches?

         D.  Reasons to Hesitate in Firing an Ad Agency

 

 

 

PLANNING THE ADVERTISING STRATEGY

 

THE MARKETING AND ADVERTISING PLANNING PROCESS,

ADVERTISING CAMPAIGNS, AND THE ADVERTISING SPIRAL

(Related Reading: O’Guinn Chapter 6, Chapter 4, pp. 150-151;

Chapter 8, pp. 274-284, 293-299; Ogilvy Chapters 14, 16)

 

 I.      Planning and Strategy

         A.  Corporate Planning/Strategy

               Analysis                   Planning                            Implementation          Control

                                                Corp.                                                                      Evaluation

               Corp. Mission             Objectives            Corp.         Implementation            and Corrective

                                                and Goals             Strategy                                       Action

 

 

 


B.   The Marketing Plan

         Analysis          Planning                                                       Implementation    Control

                                                                Target       Marketing                                    Evaluation

Situation                     Objectives            Market          Plan               Implementation        and Corrective

Analysis                     and Goals             Selection        Strategy                                       Action

  

 

       

.        C. Advertising planning/strategy (a process)

     D. Advertising strategy/plan (a document)

           Ch. 8 #10

         E. Advertising campaign: . Defined and illustrated

            Audio: 2002 Mercuries # 6, 31, 32 Bud Light “Real Men of Genius”

.               Videos: Clios 40th #11 Maxwell House “Percolator”; 1993 Festivals #25 Miller- Lite Campaign

        .       F. Reasons for ad campaigns (vs. one-shot ads)

                  Videos: Clios 40th #43 Life Cereal “Mikey”;  Clios 40th #11 Maxwell House “Percolator”

          .         Video: Burger King Historical Ad Spots (7 min.)

                      Audio: 2005 Mercuries # 24 “Radio Your Way” 

          . G. The Advertising Campaign Plan (see organizational outline on term paper project)

             .  Video: Clios 40th Pt. 2 #55 Levi’s “Drugstore” 

II.      The Advertising Spiral

         Each stage: a. Advertising objectives

                           b. Advertising message

                           c. Advertising $: per-unit cost basis and total cost basis

         Four Stages: 1.  Pioneering Stage

                                     2.  Competitive Stage

Comparative/comparison advertising

                  Audio: 2005 Mercuries #28 Aneurism; 2005 Mercuries # 32 “Devious”

Audio: 2004 Mercuries #10 Miller Brewing Co. “Unpleasant Side Effects” (indirect comparisons)

 Videos: Clios 40th Pt. 2 # 9 Apple “1984”; Clios 40th Pt. 2 #19 Penn Athletic “Bounce”; #41 Diet Pepsi “Diner”; 1998 Festivals #55   Visa “The Attic”; 1993 Festivals #33 MAPA “TV MAPA Cows"

Audio: 2005 Mercuries #36 “Queen of Carbs” (negative ads)

 .Minicase: Competitive and Combative Toilet Tissue Campaign

Implied superiority claims

.  Video: 1994 Festivals #47 “Kodak Snow Angel

.  Minicase: Great Wheat Can't Be Beat

3. Retentive Stage

          .  Videos:  Clios 40th #33 Diet Coke “Bobsled” ; 1998 Festivals # 33 Coca-Cola “Pagliacci”

.           Audios: 2002 Mercuries #8 Anheuser Busch “The Ferrett’s Thong”; #24  Budweiser “Clubbing”

4. New Pioneering Stage (Recycling, Relaunching, Restaging, Remarketing, Rebranding, Reintroduction, Revisioning, Reengineering, Reactivization, Revitalization)

                                        .  Video: 1992 Festivals #57 "Kids" (“New and improved”)

                                           Audio: 2004 Mercuries #41 Rainbow Foods “Babysitter”  (“New Use) 

                                           Video:  1994 Festivals #8 “Tabasco! It’s Amazing!

                                 .            Video: "Avon's Skin So Soft" (4 min.)

                                            Video: 2004 Clios #30 Bud Light “Greetings” 

 

STRATEGIC MARKETING RESEARCH

(Related Reading: O’Guinn Chapter 7; Ogilvy Ch.15)

 

I.              Role of Research

·   Two Sources of Information:

(1)    Marketing research (MR) – A (1) formal, systematic, scientific method of gathering information from the external marketing environment on a (2) discontinuous/project basis (3) of a specific nature to solve managerial problems/answer managerial questions (4) using primarily primary information (5) gathered and/or supervised by the marketing research department.

(2)    Marketing intelligence – A (1) casual method of gathering (2) secondary information of a (3) general nature from the internal and external marketing environments on a (4) continuous basis (5) gathered by almost anyone in the organization.

·           Types of MR: 1. Classified by technique

                            2. Classified by general purpose/function

·Types of Advertising Research: (1) Media Research (later)

                                                         (2) Budget Research (later)

                    (3) Creative/Message Research (here)

·Two Types of Creative Research:

(1). Upfront strategic research (situation(al) analysis, planning research) (here) – inputs for strategic decisions on objectives, money, message, and media

(2)    Evaluation research (copytesting, communication effectiveness research, control/evaluative research) (later) – outputs

a. Pretesting

b. Posttesting

                        Ch. 7 #6, 8

II.           Organization for Advertising Research

A. Who does advertising research?

B. The role of account planning

                        Ch. 7 # 10

III.         Types of Strategic Research

A.     Organizational Research

         B.   Consumer Research

                    .  Video: 1995 Clios - Little Caesar's "More"

                      Ch. 7 #3

         C.   Product Research

         D.  Market Research

               .  Video: 1994 Festivals #40 “Shell Gasoline Tango”