Chapter 6 The Advertiser

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Chapter 6 The Advertisers Marketing/Advertising
Operation
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Objectives_1

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

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Corporate and Market Changes

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

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PGs Brand Portfolio
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Exhibit 6.1 Simple Organization Chart for
Advertising Department
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Exhibit 6.2a Group-Organized Marketing
Department
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Exhibit 6.2b Specialists-Organized Marketing
Department
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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.

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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.

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Exhibit 6.3 Example of a Brand Structure
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Adapting Integrated Marketing within Corporate
Structures
Marcom
Restructured brand- management approach
Communications manager
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Exhibit 6.4 Marcom Management
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Exhibit 6.5 Communication Manager
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Goals of an IMC Focus

• Build brand equity
• Provide information
• Communicate differentiation/positioning

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Exhibit 6.6 Differentiation through Value
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Setting the Budget
Percentage of sales
Payout plan
Competitive budgeting
Task method
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Exhibit 6.8 Payout Plan Example
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Factors to Consider When Budgeting by Task

• Brand loyalty factors
• Geographic factors
• Product penetration
• Availability of accurate and reliable research
• Goal setting and measurement models

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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

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Brand-Retailer Issues

• Retailer control

• Slotting allowances

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Consumer Control

• Business blogs
• Moblogs
• Podcasting
• RSS
• Streaming video
• vBlog or Vlog
• Wiki

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How to Evaluate Specific Agencies_1

• Determine what types of serve you need in order
  of importance
• Establish a scale to rate each agencys
  attributes
• Check published sources and select a group of
  agencies that fit your needs
• Check whether there are any apparent conflicts
  with existing accounts

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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

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Advertising Goals versus Marketing Goals

• 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.

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What is the goal for this ad?
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The New 5 Ps of Marketing
Paradox
Perspective
Paradigm
Persuasion
Passion
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For Discussion

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