Chapter 6 The Advertiser’s Marketing/ Advertising Operation

1. Chapter 6 The Advertiser’s Marketing/Advertising Operation

2. Objectives_1 Understand • The marketing service system • Integrated marketing brand management • How advertising budgets are set • Advertising goals versus marketing goals • Agency-client relationships

3. Corporate and Market Changes • Consumers absorb information and entertainment differently. • Companies have been downsizing, cost-cutting, restructuring, merging, and partnering domestically and globally.

4. P&G’s Brand Portfolio

5. Exhibit 6.1 Simple Organization Chart for Advertising Department

6. Exhibit 6.2a Group-Organized Marketing Department

7. Exhibit 6.2b Specialists-Organized Marketing Department

8. Product (or Brand) Manager In package goods, the brand manager is the person responsible for the profitability of a product (brand) or product line, including advertising decisions.

9. Category Manager A category manager is responsible for all aspects of the brand in a specific product category for a company; decisions include research, manufacturing, sales, and advertising.

10. Exhibit 6.3 Example of a Brand Structure

11. Adapting Integrated Marketing within Corporate Structures Marcom Restructured brand- management approach Communications manager

12. Exhibit 6.4 Marcom Management

13. Exhibit 6.5 Communication Manager

14. Goals of an IMC Focus • Build brand equity • Provide information • Communicate differentiation/positioning

15. Exhibit 6.6 Differentiation through Value

16. Setting the Budget Percentage of sales Payout plan Competitive budgeting Task method

17. Exhibit 6.8 Payout Plan Example

18. Brand loyalty factors Geographic factors Product penetration Availability of accurate and reliable research Goal setting and measurement models Factors to Consider When Budgeting by Task

19. Successful Companies in a Changing Marketing Environment • Shift spending to digital media • Develop formats to promote audience interactions • Create new research approaches and metrics that focus on outcomes • Combine “above the line” and “below-the-line” approaches in integrated campaigns • Create their own branded entertainment • “In-source” new skills and capabilities

20. Brand-Retailer Issues • Retailer control • Slotting allowances

21. Consumer Control • Business blogs • Moblogs • Podcasting • RSS • Streaming video • vBlog or Vlog • Wiki

22. How to Evaluate Specific Agencies_1 • Determine what types of serve you need in order of importance • Establish a scale to rate each agency’s attributes • Check published sources and select a group of agencies that fit your needs • Check whether there are any apparent conflicts with existing accounts

23. How to Evaluate Specific Agencies_2 • Start preliminary discussions • Reduce original list to 3-5 agencies • Prepare a more specific evaluation list • Discuss financial arrangements • Evaluate your comfort level with the agency

24. Marketing goals are the overall objectives that a company wishes to accomplish through its marketing program. Advertising goals are the communication objectives designed to accomplish certain tasks within the total marketing program. Advertising Goals versus Marketing Goals

25. What is the goal for this ad?

26. The New 5 Ps of Marketing Paradox Perspective Paradigm Persuasion Passion

27. For Discussion • In how many product categories do Procter & Gamble products compete? • What are the major methods of developing an advertising budget?