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According to the #1 selling textbook:
ADV200
• Advertising: paid
persuasive
communication that
What is Advertising? uses non‐personal mass
media to reach broad
audiences to connect
an identified sponsor
with a target audience.
Marketing and Advertising
What is advertising according to
What is Advertising? consumers? So, what is advertising?
• Advertising: paid persuasive communication • Five basic components:
1. Paid communication
that uses non‐personal mass media to reach
2. Sponsor is identified
broad audiences to connect an identified 3. Tries to persuade or
sponsor with a target audience. influence
4. Reaches a large audience
5. Conveyed through
impersonal mass media
• Communications that • “Advertising” as narrowly defined is a relic of
tries to persuade or the past.
influence…
• Marketing communications, any
communication that attempts to inform or
persuade or influence, is the future.
1
9/1/2010
The Transition Who are the Big Guys
• The Past… • Now… • BBDO: • Grey
• We talk to consumers, they listen • If we are lucky and smart, we talk • DDB Worldwide: • Deutsch
•
with consumers.
Agencies do as much as possible, but
Name the #1 best advertising • TBWA • Publicis
• Ad Agencies do everything
•
with a lot of competition.
All sizes of agencies located
agency in the US • McCann Erickson • Y&R
• Big agencies, with big clients
anywhere. • Saatchi & Saatchi • Euro RSCG
headquartered in NYC. – Boulder, Portland, Miami, Raleigh, Richmond,
Minneapolis, • Draft/FCB • Leo Burnett
• Ogilvy & Mather • Fallon Worldwide
• TV, Radio, Newspaper, Magazine, • Anything I can think of is an
yellow pages. advertising medium • JWT • Arnold Worldwide
• Have a computer? You’re now an ad
• Campbell Mithun
• Ad agencies create ads.
agency.
• Goodby Silverstein & Partners (SF) • Deliver more and more for the money •
•
1868 NW Ayer (Philadelphia) first successful advertising agency
1877 First ad agency acquisition: J Walter Thompson buys agency for $500 plus $800 for the furniture.
– Creates the Account Executive title
• RG/A NY (Internet) • Better value •
•
1880 First copywriter hired by J. Wanamaker
1892 NW Ayer hires first copywriter
• 1893 Coke registers trademark
• St Luke’s Place (London) – (sometimes cheaper, sometimes deliver more for your •
•
1988 First Ad slogan “Lest you forget, we say it yet. Uneeda Biscuit” The National Biscuit Company
1900 NW Ayer opens “Business‐Getting Department”
money) • 1941 First TV spot (Bulova Watches)
• Mother (London) • 1955 Marlboro Man appears
• Awards •
•
1956 First Pre‐recorded TV commercial
1960 first copywriter / art director team DDB
• Taxi (Toronto) • 1967 First female head of an advertising agency: Mary Wells
• New Media • 1970 Saatchi & Saatchi opens in London
1971 cigarette advertising banned on television
• Strawberry Frog (Amsterdam) •
• 1986 Omnicom created (First advertising agency holding company)
• Just something new • 1986 Saatchi brothers buy Ted Bates then largest advertising agency in the world (Ted Bates goes out of business in 2004)
• Naked (London) •
•
1987 Martin Sorrel creates WPP group buying JWT, O&M, Y&R and last year Grey Worldwide
1993 Birth of the Internet
• JWT=O&M=Y&R=Grey • 2005 85% of advertising placed in the world comes from 4 holding companies
• Butler Shine Stern (SF) • 2009 There are over 25,000 advertising agencies in the US alone
• Freedom to do more • www.adage.com/century/timeline/index.html
What will the Advertising look like in
Why is this important?
the Year 2030
?
• Fast and ever‐changing
business.
• Relatively young http://www.youtube.com/watch?v=PHmwZ96_Gos&feature=related
business.
CHANGING AT THE SPEED OF
LIGHT…
2
9/1/2010
Stuff you need to know how to do
• Situation Analysis
• How to think strategically
– Problem articulation
– Positioning statements Let’s put it all together
– Creative Strategy
• How to think creatively
– Productive brainstorming
http://www.youtube.com/watch?v=ITjsb22-EwQ
• Creative Idea
Olympia, WA (PRWEB) March 26, 2008 ‐‐ Few consumers are aware they could be transmitting personal information about their – Identifying, articulating, growing and judging
identity and the products they buy to just about anyone or any business equipped with a simple microchip reader. In fact, chances
are you already carry one of these radio‐frequency‐emitting chips with you wherever you go, whether in your ID card, your cell
phone, or possibly even in your shoes. • Having, stating and selling your point of view
But a new law sponsored by state Rep. Jeff Morris, D ‐ Mount Vernon, and signed by Governor Gregoire today, will provide
consumers better protection from these "spy technologies" used to collect your personal information without your consent.
• Knowing how to evaluate success/failure
How will you…
How will you manage this project? So, what is Marketing?
• Situation Analysis
• You’ve been asked to
create a campaign for a • How to think strategically
– Problem articulation
new shampoo brand – Positioning Statement
called – Creative Brief
• How to think creatively
“Rise & Shine – Productive brainstorming
Shampoo.”
• Creative Idea
– Identifying, articulating, growing and
Now What? judging
• Having, stating and selling your point of
view
• World Marketing Association (WMA):
• Product
– “Marketing is the core business philosophy which directs the processes of identifying
and fulfilling the needs of individuals and organizations through exchanges which create • Price Product:
What it is, how it works,
Price: Place:
Promotion:
Positioning, Advertising,
People:
Who are we making
what it looks like,
superior value for all parties.” smells like, tastes like,
How much it costs. Where is it sold? Sales Promotion, PR, this product for and
3
9/1/2010
• US had modern factories, distribution system, transportation
• The 4 P’s became the tools of Marketing Managers from
system and communications systems.
the late 1950’s until today.
of Depression and WWII)
– Europe higher quality,
– Asia cheaper (and eventually better).
• Mass Production led to Mass Distribution led to Mass Advertising
led to Mass Media.
– America caught in the shrinking middle.
• Focus was on producing and distributing as much as possible. – Different Philosophies:
» US Model: Produce as fast as possible, sell as many as possible, fix it later and
• Baby Boom in US. make incremental improvements along the way. Create obsolescence to keep
consumers buying.
» Japanese Model: Make as many as you can make “perfect,” sell quality products
• Brought homogenization of culture, taste, products and services. that will last, and R&D ways to re‐invent and make major improvements. Develop
better quality products for happier long‐term consumers, brand loyalty and a
global competitive edge.
4
9/1/2010
– From local store to mega store (category killer) to Internet.
»
»
Example: 1960’s bought a book in a neighborhood book store.
1980’s bought book from category killer bookstore like Borders.
Let’s tell the smartest marketer
»
»
1990’s on bought that book at any number of on‐line shops.
Amazon used books. on the planet how he can do
better…
5
9/1/2010
Problem:
Apple has about a 27% market share in the US,
Objective: tell Stephen how to make
Here’s what that guy looks like today…
but a 2.9% worldwide market share. Apple #1 around the world.
How do these products compete?
Product differentiation, distribution superiority, consumer focus, marketing communications