Chapter Five.

Advertising Management
 overview
• The average person encounters more than 600 advertisements per
day. These messages are delivered through an expanding variety of
media.

• Today’s marketers face a tremendous challenge. A company simply

cannot afford to prepare ads for every possible medium.

• Moreover, a message must be designed to give a company an

advantage in a highly cluttered world in which people are becoming
increasingly proficient at simply tuning ads out.
 overview
• In order to be effective, an ad should:
• First, be noticed.
• Second, it must be remembered.
• Third, the message of the advert should incite some kind of action,
such as a purchase, a shift in brand loyalty, or, at the very least, find a
place in the buyer’s long-term memory.

• Section two of our textbook describes the role advertising play in an

integrated marketing communications program.
 overview
• There are three ingredients that must be combined to create
effective advertisements:
• 1- development of a logical advertising management scheme for the
company.
• 2- thoughtful design of advertisements, and
• 3- careful selection of media.
 Overview of advertising management
• An advertising management program is the process of preparing
and integrating a company’s advertising efforts with the overall IMC
message.
• An effective program consist of four activities that combine to form
the advertising management process. They are as follows:
• 1- review the company’s activities in the light of advertising
management.
• 2- select an in-house or external advertising agency.
• 3- develop an advertising campaign management strategy.
• 4- complete a creative brief.
• Consistency is a major principle that guides these four efforts. The
goal is to provide a coherent message that states the theme of the
entire IMC program.
 Advertising and the IMC process
• Advertising is major component of IMC. Also it is part of the
traditional promotions mix of advertising, consumer promotion, and
trade promotion, and personal selling.
• These functions, along with other activities such as, direct marketing,
public relations efforts, and alternative marketing strategies, form the
basis for communication with individual and business customers.
• The role that advertising plays varies by company, product, and the
firm’s marketing goals.
• sometime advertising is the central focus, and other components play
a supportive role.
• In other situations, it plays a secondary role.
 5
• in B to B sector, advertising assists with other promotional activities,
including trade shows and personal sales calls.
• In the consumer sector, advertising is usually the primary
communication vehicle, and other promotional tools are designed to
back (support) the advertising campaign.
• Whatever the role that advertising plays, advertising programs should
be incorporated into the IMC program in an efficient and effective
manner.
• As advertising agencies and account managers feel growing pressure
to produce tangible results, developing noticeable and measurable
advertising outcomes is the major challenge for the advertising
agency and the company itself.
 5
• IMC Includes clear internal communication among departments
along with the message sent to external customers and suppliers.

• IMC programs apply information technologies to develop databases

that help everyone in the firm understand customers' needs and
characteristics.

• Effective IMC programs mean that all an organization’s employees

should work toward the goal of reaching customers with a clear and
consistent message.
 5 Choosing an Advertising Agency
• The first issue in an advertising program is deciding between an in-
house advertising group and an external advertising agency.

• Some businesses prefer to house the IMC and advertising in internal

departments. They believe that internal organization members have
a better sense of the company’s mission and message.

• These organization's managers believe can develop effective

advertising programs through outsourcing some of the functions and
by hiring a few key marketing and advertising experts.
• The internal approach to advertising may have some disadvantages:
• 1- the company can go “stale” and fail to identify other promotional
or advertising opportunities.
• 2- an internal department may also lack the expertise to carry out all
of the necessary functions.
• 3- in the global arena, internal members of the firm may lack the
necessary understanding of language, customs, and buyer behavior in
international target markets.
 Decision Variables
• In the decision regarding to use an external agency or in house
department, several key factors should be considered.
• Management teams should review the variables highlighted in figure
5.3. page 123
• 1- size of the account:
• A small account usually is not so attractive to an advertising agency,
because smaller accounts generate less profits.
• 2- money spent on media :
• Smaller account are less economically sound for an agency, because
more money must be spent on producing advertisements rather than
on purchasing media time or space.
 5
• 3- objectivity:

• An agency is more likely to be objective than an in-house advertising

department.

• It is difficult for an in-house creative to remain unbiased and to

ignore the influences of others in the organization who might not
fully understand the artistic aspect of advertising.

• An external creative does not face these influences and pressures.

• 4- complexity of the product:
• Advertisements of highly complex products create a different set of
circumstances.
• This is because external advertising agencies’ members might have a
difficult time understanding complicated products.
• 5- creativity:
• Most of the time advertising agencies offer greater creativity.
• Organizations’ promotion departments can freelance and utilize
creatives just for the ad design process.
• The question, then, is whether to give the entire project to an agency
or only use the agency ‘s creatives and other specialists.
 5 External advertising agencies
• Company leaders have a variety of options regarding choosing an
advertising agency. All sizes and types of advertising agencies exist.

• At the end of the spectrum are the highly specialized boutique -type
agencies, which offer only one specialized service, like making TV
ads. Or serving only one type of clients.

• At the other end, are full service agencies which provide all types of
advertisings and promotional activities.

• Look at figure 5.4, it lists some of the services that full-service

advertising agencies can provide.
• In addition to advertising agencies, there are other closely associated
types of firms.

• Media service companies, these are agencies which purchase media

packages ( called media buys) for companies.

• Direct- Marketing agencies, they handle every aspect of a direct-

marketing campaign. Either through telephone order (800 numbers),
internet programs, or by direct mail.

• Public relations firms, they provide experts to help their clients

develop positive image. They are often called in for damage control
when negative publicity arises.
• The process of selecting an advertising agency is difficult.

• Companies' leaders must decide how much involvement the agency

will have and how many functions the agency should perform.

• Next, the companies’ leaders should develop effective selection

criteria to help company leaders make wise choices in the process of
hiring an advertising agency.
 5 Choosing an agency
• Choosing the best advertising agency for a company requires careful
planning.
• Look at figure 5.5, it lists the steps involved in this process.
• 1- goal setting:
Company leaders should identify and prioritize their corporate goals.
Goals provide a sense of direction for the marketing team, for the
agency account executives, and for the advertising creative.
In order to choose the best agency, the company leaders should have
an idea of what they want to accomplish.
Unambiguous goals help ensure a good fit between the company and
the agency.
 5 Selection criteria
• The second step in selecting an agency is stating the selection criteria
to be used.
• The objective here is to reduce biases that may enter into the decision.
• Emotions and other feelings can lead to decisions that are not in the
company’s best interest.
• Figure 5.6 lists some of the major issues to be considered as part of the
selection process.
• 1- the size :
• the size of the agency is important, especially as it compares to the
size of the company hiring the agency.
• If a large firm hired a small agency, the small agency may be
overwhelmed by the account.
• A small firm hiring a large agency may find that the company's account
could be lost or could be treated as being insignificant.
• A good rule of thumb to follow regarding the size of the agency is
that the account should be large enough so it is important to the
agency, but small enough that , if lost, the agency would not be badly
affected.
• 2- relevant experience:
• the amount of experience that the agency have in an industry is a
second evaluation criterion.
• When an agency has experience in a given industry, the agency’s
employees are better able to understand the client firm, its
customers, and the structure of the marketing channel.
• 3- it is important to be certain that agency does not have any
conflicts of interest.
 5
• An advertising agency can have relevant experience without
representing a competitors. Such experience can be gained when an
agency work for a similar company that operates in a different
industry.
• Moreover, the agency should have experience with business-to-
business side of the market.
• 4- investigating into each agency’s creative reputation and
capabilities:
• One method of judging an agency’s creativity is to ask for a list of
awards the company has received.
• 5- production capabilities and media purchasing:
• a firm that needs an agency to produce a television commercial and
also buy media time should check on these activities as part of the
• Agencies are either have subsidiary companies perform the media
work or subcontract it to a media firm.
• It is important to make sure that the agency has the capability and
that it fits with the ads being designed.
• The final three selection criteria: other services available, client
retention rates, and personal chemistry are revealed as the final
steps of selection take place.
 Reference requests
• Once the initial screening is complete, the company requests references
from the agencies still in the running for the contract.
• A good strategy that a company can use is to obtain references of firms
that have or had similar needs.
• It helps to obtain names of former clients of an agency. Finding out why
they switched can provide valuable information.
• Knowing an agency’s client retention rate helps reveal how effective the
firms has been.
• Backgrounds checks also provide useful information. It includes, finding
firms that have dealt with the agency, talking to media agent who sell
media time to gain information about how an agency buys time and deals
with customers.
• companies that have formed contracts with an agency for production
facilities or other services are excellent sources for information.
• The ultimate objective is to make sure that an agency can provide
 Creative pitch
• When the list has been narrowed to two or three finalist, the
company’s selection team is ready to ask for creative pitch.
• Preparing a creative pitch is time consuming and costly, therefore,
agencies only spend time on preparing pitches that have a decent
chance of being accepted.
• Advertising agencies that are chosen to compete for the contract
provide formal presentation addressing a specific problem, situation,
or set of questions. This is called creative pitch( shootout).
• The presentation should reveal how each agency would deal with
specific issues that arises as a campaign is prepared. It helps the
client company to decide which agency best understand the issue at
hand and has developed an IMC approach that will solve the
problems.
• Look at figure 5.7 page 128.
 5 Agency selection

• During the presentation phase, the opportunity exists to meet with

creatives. Media buyer, account executives, and other people who
will work on the account.

• Chemistry between employees of the two different firms is critical.

• The account managers and employees must be convinced that they

will work well together and that they will feel comfortable with each
other.

• Whenever possible, a client company’s leaders should visit the

advertising agency’s offices as part of the evaluation process.
• Agencies often use companies executives ( termed heavy hitters by
industry insiders) to win contracts.
• Once the contracts are signed the accounts are turned over to other
individuals in the agency.
• Benefits of executives visits to the agency:
• 1- it provides an opportunity to meet personnel who might work on
the account.
• 2- talking with these individuals generates quality information about
how the account will be handled.
• 3- these visits also can be used to hammer out ( to produce an
agreement or plan) regarding specific issue details.
• After the selection process has been completed, the agency and the
company work together to prepare the advertising campaign.
 5 Advertising Planning and Research.
• The initial meetings between the agency and the firm’s advertising
management and marketing team are key moments.

• First, the agency should be engaged in general preplanning inputs

collection.

• The agency should build a solid understanding of the client.

• This requires reading about the client organization in books, trade

publications, research reports, and the company websites.

• The advertising agency members should, when possible, actually use

the good or service involved.
• Second, product-specific research should be conducted.
• two issues should be identified at this point:
• A- who uses this product and
• B- how it is used.
• It is critical to understand the product user, which should match the
firm’s target market.
• How the product is used can be especially beneficial in developing a
creative campaign.
• Third, qualitative research. Which is a more formal approach that can
be used to assist the vendor company and its advertising agency.
• Focus groups are often used to bring people together to talk about a
product.
• With creative attendance, it is possible to hear about the kind of person
who likes a product and to discover tactics that might reach the
• The actual collection of information can come from a variety of
perspectives, including:
• Anthropology.
• Sociology.
• Psychology.
• The method employed by anthropologist often involves direct
observation. This helps in discovering how the product is being used,
in addition to who uses the product.
• Sociologist examine social class issues and trends. Look at the
example on page 129.
• Psychology concentrates on motivation, cognition, and learning.
• Personal Drive Analysis is an example of Psychological approach.
 5
• This method helps the researcher understand psychological drives
toward indulgence, ambition, or individuality. These three drives
affects brand choices.
• Knowing the purchasing motives of a target market can greatly
enhance the effectiveness of an advertising program.
 The roles f advertising account executives

• The Advertising Account Executive is the key go-between for both

advertising agency and the client company.
• this individual is actively involved in soliciting the account, finalizing
details of contract, and working with creatives who will prepare the
actual advertisements.
• Clients always want to know if they are getting a good value. Many
clients believe that they don’t have a clue in trying to understand the
relationship between an agency’s cost and its actual value to a
company.
• How can the advertising agency help its client in understanding the
value that they are gaining ?
•
• There is also a person who responsible on scheduling the various
aspects of the agency’s work to ensure the work is completed by the
target deadline. This person is called Traffic Manager.
• The Traffic Manager works closely with account executive.
 5 The Role of Creatives
• Creatives are people who actually develop and produce
advertisements.
• These individuals are either members advertising agencies or
freelancers.
• there are some smaller companies provide only creative advertising
services without becoming involved in other marketing programs and
activities.
• The role of the creatives will be fully discussed later in this chapter.
 Advertising campaign management
• It is the process of preparing and integrating a specific advertising
program in conjunction with the overall IMC message.
• An effective program consists of five steps, they are as follows:
• 1- review the communication market analysis.
• 2- establish advertising objectives that are consistent with the
communication objectives.
• 3- review the advertising budget.
• 4- select the media in conjunction with the advertising agency.
• 5- prepare a creative brief.
 Communication market analysis
• The communication analysis reveals where the firm can best focus
advertising and promotional efforts by discovering company
strengths along with opportunities present in the marketplace.
• The analysis should cover different target markets, customers, and
competitors that exist in a market.
• This will help in understanding how the company previous
communication efforts have been perceived.
• The value of reviewing the communication analysis is in focusing the
account executive, the creative, and the company itself on key
markets and customers.
• It helps also in understanding how the firm currently competes in the
marketplace.
 5
• For the purpose of advertising, two important items are outlined as
part of the communication market analysis:
• A- the media usage habits of people in the target market.
• B- the media used by the competition.
• In business-to-business markets, knowing which trade journal or
business publication your target market most likely read is an
important issue.
• Influencers such as engineers, have different media viewing habits
than do presidents and vice presidents, who may play the role of the
deciders.
 Advertising goals.
• The second step of advertising planning is to establish and clarify
advertising goals, which are derived from the firm’s overall
communication objectives.

• Look at figure 5.8 on page 132.

• 1- building brand image:

• Having a strong global brand and corporate image is one of the most
important advertising goals.
• Remember, a strong brand creates brand equity.
• A brand’s equity can be enhanced by combining effective advertising
with quality product.
 5
• According to the author, advertising is a critical component of
building brand equity.
• Successful brands possess two characteristics:
• A- the top of mind, and
• B- the consumers’ top choice.

• Top of the mind brands: are brands that are always mentioned when
consumers are asked to identify brands that quickly come to their
minds from a product category.
• Brand that is characterized by being a top choice, are brand which
are ranked first or second in a consumer's consideration (evoked) set
of possible purchasing alternatives.
• To build your brand image and equity you should first make your
customer aware of your brand.
• Brand awareness means that consumers recognize and remember a
particular brand or company name when they consider purchasing
options.
• In business- to- business marketing, brand awareness is essential to
being considered by members of the buying center.
• In new task purchases, members of the buying center spend more
time seeking prospective vendors that they do in modified re-buys.
• So, brand equity will be a major advantage for any company that has
such recognition.
 5
• 2- providing information:
• Information such as retailer’s store hours, business location, or
sometimes more detailed product specifications.
• Information can make the purchasing task appears to be convenient
are relatively simple.
• this will entice customers to finalize the purchasing decision and
travel to the store.
• Consider the importance of advertisements for consumers and
buying centers members who are involving in high-involvements
purchases !
3- persuasion:

-Advertisements can convince consumers that a particular brand is

superior.

-Sometimes the advertiser can show consumers the negative

consequences of failing to use a particular brand.

- sometimes in order to pursued consumers you have to change their

attitudes.

- persuasive advertising is used more in consumer marketing than in

business-to-business situations.
4- supporting marketing efforts:

-Manufacturer use advertising to support trade and consumer

promotions. Contests for example requires extensive advertising to be
effective. watch the coming advert.

- When ads are combined with other marketing efforts into a larger,
more integrated effort revolving around a theme, the program is called a
promotional campaign.

-Reminder: go back to page 100 to remind yourself about themes and

tactics by reading Kellogg’s example.
 5
5- encouraging action:
- Many firms set behavioral goals for advertising programs.
- infomercials and home shopping network programs heavily rely on
immediate consumer purchasing responses.
- This objective is likely to be sought in business –to-boniness adverts.
- These five objectives are not separate ideas, they usually work
together.
- If you are seeking a building brand image objective, you should also
provide your customers with information and persuasion techniques
that support the process of building an image.
 Media Selection
• The next step of advertising management is to develop strategies and
tactics for media selection.

• In order to do this, the marketing team examines the intent of the

message in each specific ad.

• media buy are guided by the advertising agency or media agency ,

the company, and the creative.

• The message should be designed to fit with the chosen media.

• Advertising can be a source of competitive advantage.

 The creative brief
• Creatives work with a document called a creative strategy or creative
brief as they prepare advertisements.

• The creatives take the information provided by the account executive

and others in the creative brief to produce ads that convey the
desired message.

• Look at figure 5.9 which includes the basic components of creative

briefs.
 The objective.
• The first step in preparing the creative strategy or brief is to identify
the advert’s objectives.

• The objective guide the design of the advert and the choice of an
exceptional framework.

• Example: an ad to increase brand awareness prominently displays the

name of the product.

• Another to build brand image can display the actual product more
prominently.
 The target audience
• The creative must know the target audience.
• When creating advertisements to business customers much attention
should be given to the type of industry and to a specific member of
the buying center.
• The more he knows about the target audience, the easier it is for him
to design effective adverts.
• Target market profile that are too general are not very helpful.
 The message theme
• The message theme is an outline of key ideas that the advertising
program is supposed to convey.

• So, the message theme is the benefits or promise the advertiser

wants to use to reach consumers or businesses.

• The promises or unique selling points, should describe the major

benefits the good or service offers customers.

• The message theme should match the medium selected, the target
market, and the primary IMC message.

• A message theme can be oriented toward either rational or

emotional processes.
 The Support
• Support takes the form of the facts that substantiate the message
theme.

• The creative needs these supporting facts to design effective

advertisements.

• Look at the example on page 137.

 The constraints.
• It is the identification if any constraints which represent the final step
in the development of a creative strategy.
• They can be legal and mandatory restrictions placed on
advertisements.
• The include legal protection for trademarks, logos, and copy
registration,.
• Constraints also include disclaimer specifies the condition under
which they will be honored. Look at the example on page 137.
• From this point forward, the message and media match, and the
actual advertisements can be produced.