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Advertisings role in

Marketing
SESSION 4

Advertising BBA/ MBA

Do products sell on their own?

Early 1900s post-industrial


revolution marketing was
product-focused.
The belief: a good product
sells by itself.

Ralph Waldo Emerson

mousetrap!

Emerson, 19th century intellectual, &


philosopher
said: If a man can make a better
mousetrap..
the world would beat a path to his

CASE STUDY PUMA:

German athletic shoes...


Pumas innovative retro-designs
cater to be trendy individualists who
like to make a style statement.

Pumas success in a crowded market


has earned the brand a place among
the top three brands in Germany.

CASE STUDY PUMA:

German athletic shoes...


Retailers praise Puma for its
designing creativity, eye-catching instore merchandising displays.
To succeed a brand like Puma needs
an effective advertising campaign
offering it customers outstanding value.

CASE STUDY PUMA:

German athletic shoes...


Much of the value is created by
marketing decisions that determine
products design, ease of use, as well
as distribution, pricing, and marketing
communication.
Advertising is just one part of the
total marketing effort however, an
effective advertising requires sound
understanding of the clients
marketing program.
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CASE STUDY PUMA:

German athletic shoes...

Apart from traditional advertising,


Puma also uses viral marketing, to
spread the word especially about
new products, to an online network
of users.
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CASE STUDY PUMA:

German athletic shoes...


Puma stays hip through design
innovation and also by linking up
with other icons, such the tennis
star Serena Williams.
This helps create a distinctive
brand attitude & an innovative
spirit that drives its mass marketing
communication in non-traditional
ways to connect with customers.
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Marketing over the years...


Marketing traditionally has been
seen as the task of creating,
promoting, and delivering
goods and services to consumers
and businesses.

In most consumer-oriented
firms
...Marketing has a major say in
the way a product is

conceived, designed,
tested, produced,
branded, packaged,
priced, distributed &
promoted.
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Marketing today is becoming ...


... increasingly customer
focused!
Businesses that have adopted
this perspective, are
recognized as leaders in
customer-focused marketing
e.g. Harley-Davidson, Intel,
IBM, Google, Coca-Cola...

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Marketings attention has...


...over the years moved from
meeting consumers needs &
wants...
to understanding...
to anticipating...
to creating...
to co-creating consumers
needs & wants!
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Emerging trends in marketing


communications...
Many forces today, impact a
companys marketing
communications.
Financial pressures compel
businesses to sign up agencies that
understand accountability.
Emerging social trends are affecting
the way marketing messages travel.
Tasks performed by advertising
agencies are also changing.

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Emerging trends in marketing


communications...

Companies expect advertising


agencies to deliver tangible
results.

Every promotional activity must


yield measurable gains in sales,
market share, brand awareness, or
customer loyalty.

CEOs, CFOs and CMOs, all have


an eye on advertising spends.
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Emerging trends in marketing


communications...

Many companies rely less on the


30sec TV spots - pursue alternative
means of communication.

Names, profiles, & contact


addresses of prospective customers
are collected & tracked at brand
activation events.

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Changing roles in Ad-agencies

Key functions in an ad-agency:

ACCOUNT
MANAGEMENT
[CLIENT
SERVICE]

CREATIVE
PLANNING &
DEVELOPME
NT
STRATEGIC
PLANNING
MEDIA
PLANNING &
BUYING
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Changing roles in Ad-agencies


ACCOUNT
MANAGEMEN
T [CLIENT
SERVICE]

CREATIVE
DEPARTMENT

The persons
responsible for
maintaining a constant
link between the
agency & the client.
The Creative-Copy-Art
team responsible for
creating, inspiring,
delivering advertising.
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Changing roles in Ad-agencies


MEDIA
DEPARTMENT

STRATEGIC
PLNNING

The persons
responsible for
planning, buying media
(time or space) and
placing advertisements
in them.
A specialist function
requiring in-depth
understanding of clients
business & directing
development of
advertising in the agency.
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Changing roles in Ad-agencies

Account management: Traditional


role:
Understanding/ interpreting
clients marketing strategy.
Utilizing agency resources
(creative & media) to meet clients
advertising needs.
Presenting agencys work and
obtaining approvals.
Managing client billing &
payments.
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Changing roles in Ad-agencies

Creative development &


production: creating, inspiring,
delivering advertising.
Home Team: Creative Directors,
Creative Managers, Copy-writers, Art
Directors, Producers and other staff.
External support: Outsourcing of
creative work to freelance artists,
directors & producers a common
practice now - driven by cost &
degree of expertise required.
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Changing roles in Ad-agencies

Media planning and buying: media


department in full service agencies.

Three functions: planning, buying


and research.

Monitoring is generally
outsourced.

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Changing roles in Ad-agencies

Strategic planning: specialist


function provided by major advertising
agencies. Focus on:
Information/ insight gathering or
research - analysis of data;
Interpretation of client strategy;
Support for creative development;
Strategic interaction with client on
campaigns.
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Changing roles in Ad-agencies

Internal agency services:


1. Production
2. Traffic department to track
projects at hand in creative &
ensure meeting of deadlines; and
3. Administration/HR, Finance.

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So what has Changed?


Growing demand for accountability
requires Account Managers to seek
evidence of success of campaigns to
present to the client.

Creative Directors/ Managers


develop advertisements & promotional
in-house. materials. Much production
work outsourced to freelance artists.

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So what has Changed?


Strategic Planner represents voice
of consumer in the agency. Creative
and Account Planners contribute ideas
to client on strategic marketing
direction, and the types of
communication best suited to reaching
target audience.

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So what has Changed?


A new partnership has emerged
among Account Executives, Brand
Managers, Account Planners, and
Creatives.
Most advertising agencies are
expected to do more than create
ads.

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How impactful are these


Ads.

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How are ad agencies paid?

Commission Basis
A fixed percentage commission,
traditionally 15% of Media Cost (now
about 7-10% on average) paid to fullservice agencies.

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How are ad agencies paid?

Fee Basis
An annual fee agreed & paid by the
Client based on a calculation of:
a. Man-hours spent on a client
(workload);
b. Agreed % Overhead &
c. Agreed % Profit.
Fee works better for larger clients!
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WORKING WITH AN ADVERTISING AGENCY:

Starting a New relationship


What Clients look for in an Agency?
Competence: Quality of work
Expertise: Knowledge of industry,
products
Reputation: image aspects
Compatibility: ease in communication,
responsiveness
Cost Consciousness: working with
budgets
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WORKING WITH AN ADVERTISING AGENCY:

Starting a New relationship


THE PITCH
Credentials presentation
Campaign presentation
Appointing the Agency
Contract or Agency Agreement

Resigning the old Agency


Clearance / NOC
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WORKING WITH AN ADVERTISING AGENCY:

Starting a New relationship


Formal System of
documentation:

Briefs
Contact Reports
Presentations & rework
Finalization of Campaigns
Campaign Approvals
Media Planning & Scheduling
Media Approvals, Placements &
Monitoring
Invoices & Bills Collection

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Advertisings role in
Society
SESSION 5

Advertising BBA/ MBA

Key topics to be discussed


1. The power of advertising
and its implications on
society;
2. Regulations and regulatory
agencies;
3. Key ethical issues &
challenges;
4. Solutions & way forward.
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Advertisings Societal Role


Does

advertising create a
materialistic culture, or does it
simply reflect the culture it exists
in?
Critics believe advertising shapes
social trends.
Advertising professionals argue
advertising simply mirrors
prevailing value system.
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Advertisings Societal Role


1. Advertising & demand creation:
Does advertising drive people to
feel a need or want - sometimes
unnecessarily?
Does advertising simply anticipate
or fulfill a need?
Companies invest money on
research to find out.
BUT, Steve Jobs believes it is not
up to the customer to say what he
needs.

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Advertisings
Societal
Role
2. Shaping or mirroring society:
Does advertising cross line
between reflecting social values &
creating them?
Do Size 0 models in advertising
cause young women to have eating
disorders?
Can advertising manipulate
peoples choices through nonstop TV,
radio, print, Internet, and outdoor
advertising?
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Advertisings Societal Role


3. Over-commercializing society:
Does advertising make people too
materialistic?
Does advertising condition the
audience to believe the answer is
always a product?
Do product placements in sporting
events, entertainment programs or
soaps unduly influence customers?
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Five key social responsibility


issues!
1. Poor taste & offensive
advertising:
Some advertising affects peoples
sensitivities based on language or
visuals used.
Some make people
uncomfortable in the presence of
adults or children.

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Five key social responsibility


issues!
1. Poor taste & offensive
advertising:

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Five key social responsibility


issues!
2. Use of sex in advertising:
Use of sex attracts audiences and
has been deployed for years.
Overexposure or irrelevant use
raises the ethical question.
Censorship codes are effective
sometimes, and sometimes not.

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Five key social responsibility


issues!

3. Use of stereotypes in advertising:


Gender stereotypes: men as
strong, independent, and
achievement oriented; women as
softer, nurturing, and more
dependent home-makers.
Racial and ethnic stereotypes;
Age-related stereotypes: older
women, senior citizens, children.

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Five key social responsibility


issues!
4. Message related
issues:
Misleading
claims: health and
fitness products,
weight-loss ads,
dietary
supplements,
patches, beauty
creams
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Five key social responsibility


issues!
4. Message related issues:
Puffery: use of superlatives,
over-the-top claims,
unsubstantiated, vague,
exaggerated. Sugar Frosted Flakes
are g-r-eat; Gillette the best a
man can get.

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Five key social responsibility


4. Message related issues:
issues!
Comparative advertising: allowed
in some markets, not allowed in
others subject to guidelines and
evidence to support claim regarding
competition.

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Five key social responsibility


issues!
4. Message related
issues:
Endorsements:
use of
spokespersons,
qualified or
experienced to
make the
endorsement
believable.

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Five key social responsibility


issues!
4. Message related issues:
Demonstrations: common technique
for demonstrating product
performance. Not recommended when
contrived to deceive the audience &
create a false perception.

Text: The softness of Surf.

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Five key social responsibility


issues!

5. Product related issues:


Controversial / not suitable for
advertising products: firearms,
gambling, unsafe products; products
restricted by social norms.

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Five key social responsibility


issues!
5. Product related issues:
Unhealthy products: tobacco, fast
food products with cholesterol
causing saturated fats (in some
markets) - the McDonalds
controversy.

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Finding solutions:
WHO IS RESPONSIBLE?
Government?
Regulatory authorities?
Professional groups, Customer
protection agencies?
Industry?
First: understanding
Trademark & Copyright.
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Finding solutions :
WHO IS RESPONSIBLE?
Understanding trademarks and
copyright:
Trademark: a name or distinctive
symbol that identifies the sellers
brand and differentiates it from
others in the market; TM Registrar /
Patent Office.
Copyright: the exclusive right to
use or reproduce an original work for
a specified time. International
Proprietary Rights Organization.
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Finding solutions :
WHO IS RESPONSIBLE?
PEMRA: Pakistan Electronic Media
Regulatory Authority formed in March
2002, responsible for:
Regulating and developing lowercost media;
Improving standards of information,
education and entertainment on
broadcast media;
Issuing licenses for establishment of
channels radio stations.
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Finding solutions :
WHO IS RESPONSIBLE?
TV censorship: Censor Board at
PTV;
Print media: Editors responsibility;
Radio: Channels responsibility;
Outdoor: No regulation;
Exception: Tobacco control laws:
Pakistan is a signatory to the WHO
Framework Convention of November
2004.
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Defining ethics in Advertising

Ethics:

A set of moral principles


that guide actions and create a
sense of responsible behavior.

Is

there consensus on what is


ethical?

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Defining ethics in Advertising


TYPES OF ETHICAL CODES
Personal ethics: Personal judgment
and moral reasoning - rests on an
intuitive sense of right and wrong. It
is up to an individual to apply this in
a work situation as well.
Professional ethics: A code of
standards that identifies how
professionals should respond when
facing an ethical dilemma. Industry
standards help decide what is
ethically correct.

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Defining ethics in Advertising


TYPES OF ETHICAL CODES
Social ethics: Social responsibility
that motivates a business to make a
positive impact on society. Society &
social welfare institutions play the
role of watchdogs.

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