Test 2 Notes
2/16/18: Guest speaker; no notes.
o AT&T, Chevy, Geico
∙ Advertising agency
o Ogilvy, BBDO, WeidenKennedy, etc.
o Nielsen: a major data providing service in NYC and Diemen, The Netherlands that employs 40,000 people worldwide
Functions of an Advertising Agency
∙ Creative Services
∙ Media Services
∙ Research Services
∙ Account Services, those jobs include:
o Account executive
o Account manager
∙ Account Planning—The account planner is the voice of the consumer; they have to know the audience so well that they can make approve ads or make edits ∙ Integrated Communications
Reasons for using independent outside agency
2. Quality/Diverse Experience
3. Specialized Personnel Don't forget about the age old question of what are the Difficulties of sociological research?
Don't forget about the age old question of what is Macroeconomics?
4. Working Relationship
Reasons for using an inhouse agency
1. Cost Savings
4. Coordination and Control
5. Company and Product Familiarity
Agency Compensation Methods
∙ Original Method was Commission
*Understand this method and the concerts about it that change the way that agencies are compensated today.
∙ Slidingscale or Negotiated Commission
Agency Compensation Methods
• Original Method was Commission
◦ Understand this method and the way that agencies are compensated today. • Slidingscale or Negotiated Commission If you want to learn more check out What is Individual Discrimination?
◦ A budget bigger than it should be
◦ Suggesting media over commission
◦ If I spend a lot of money in media you will make a lot of money • Fixed Fee
◦ The agency and the client develop and understanding of exactly what work the agency is to do and exactly what they will be paid for their work.
• Cost Plus
◦ Here the agency keeps track of all costs for their time, materials, etc. The client pays all of these costs PLUS some agreed upon percentage of these costs or dollar amount for agency profit.
◦ Cost: what it costs for the agency to do work
Every agency is a business so the agency can make a profit
Role of Media
• Delivery Mechanism
◦ People and organizations that supply specialized services to advertisers (and their agencies)
◦ Important suppliers include
1 Art Studios and Web Designers
2 Printers and Print Production Houses
3 Film and Video Production Houses
4 Research Companies
An advertising campaign consists of an analysis or marketing and communications situations in order to establish objectives and make strategic decisions to be carried out in a series of advertising messages to be places in advertising media
2/25/16 Don't forget about the age old question of What is plea bargain?
Steps in the research process
• Establish the Need for Information
• Specify Research Objectives
• Determine Sources for Data
∙ when you actually develop a research study to answer
the questions you have (pay
someone to do this)
4. Develop Data Collection
5. Design the Sample
a. The people that are going
to participate in your study
6. Collect the data
7. Process the data
∙ Information that is already there (on Google or in
8 Analyze the Data Don't forget about the age old question of How many significant figures are in the number 4001?
Present Research Results Input to Campaign Planning
• Competitive Situation
◦ Research on competition
9 How the product is used
10 How the product is designed to satisfy the consumer
11 How the product is packaged distributed and promoted
12 The product's image
1 Image: the consumer's overall perception of the brand.
13 The position the product holds in the mind
1 Position: Consumer's perception of the brand relative to their perception of
14 Understanding consumer responses and relationship to the advertised product, service, or idea.
15 Market Analysis
▪ Understanding market and cultural trends and identifying marketing opportunities. Competitive Analysis Don't forget about the age old question of What would change the Demand curve?
▪ Monitoring the effects of the competition
◦ Offers competitive analysis for brand, category sales management, as well as retail services.
▪ Kantar Media
◦ Offers competitive intelligence serviceshelps companies compute global share of voice by analyzing earned, paid and owned media.
Research Basis for
• Developing Advertising Objectives
• Objectives= statements of what you will accomplish with your advertising efforts. Research Points to Responses
• Identifying the appropriate response is the mist difficult aspect of developing advertising objectives.
Basic Response Categories
a Developing awareness
b Beliefs about the brand
c Knowledge of the brand
a Emotional responses (ex. happy, sad, anxious, fearful, excited)
Ex: trial purchase, repeat purchases, information search, store visit, website visit, sharing information with others, etc.
Functions of Objectives
1. Coordination and communication
2. Decision making
3. Evaluation of the campaign
Five Characteristics of good objectives
1. Specific response and is measurable
2. Define the target audience
3. Benchmark and degree of change sought
4. Time Period
*E.g.: To increase awareness from 20%50% among women ages 1949 with household incomes above $15,000 in one year.