Download - Advertising Agencies and the Marketing Mix
![Page 1: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/1.jpg)
Advertising Agencies and the Marketing Mix
![Page 2: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/2.jpg)
Advertising Agency
• An advertising agency is a company made up of professionals who specialize in providing creative and business services involved in planning, preparing, and placing advertisements.
![Page 3: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/3.jpg)
Ad Agency (cont’d.)
Because the main business of an advertiser is not
advertising, most companies hire an advertising
agency. Advantages:• Most businesses are not familiar with the field of
advertising.• Agencies can maintain more specialists than an
advertiser would employ.• It is more cost effective
![Page 4: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/4.jpg)
Market Saturation
As a consumer, you see advertisements everywhereyou look. Even when you are buying one product,you are exposed to advertising for other products.
Ex. Ticket to movie theatre, watch previews of
movies soon to be released.
• During prime-time television programming, you watch almost 17 minutes of commercials. During Daytime T.V. there are almost 21 minutes of commercials every hour during the day.
![Page 5: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/5.jpg)
Its Own Worst Enemy
Advertising is becoming its own worst enemy. It is a challenge to create an advertisement that will stand out and remain with the consumer.
![Page 6: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/6.jpg)
5 Types of Ad. Agencies
• In-house
• Full-service
• Creative boutique
• Media-buying services
• Interactive agency
![Page 7: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/7.jpg)
In-House agency
• An advertising department in a company whose main business is not advertising.– Advantages: Familiar with company’s products,
doesn’t have to pay Ad. Agency for its services.– Disadvantages: Lacks objectivity, experience.
Won’t try to improve advertising by looking at better options.
![Page 8: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/8.jpg)
Full-Service Agency
• Provides a wide range of services designed to meet a client’s advertising needs.– Services include:
» Account management
» Marketing planning and management
» Creative design
» Production
» Media planning
» Media-buying services
![Page 9: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/9.jpg)
Creative Boutique
• Specializes in developing creative concepts, writing creative text, and providing artistic services.– Usually hired by another agency to add greater
creativity or excitement to the advertisement.
![Page 10: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/10.jpg)
Media-Buying Service
• Specializes in buying media time and space, particularly on radio and television.– Buys large quantities of time, thus buying it at a
lower cost.– Resells time to advertising agencies.
![Page 11: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/11.jpg)
Interactive Agencies
• Specialize in helping clients prepare advertising for new interactive media (ex. Internet, Interactive T.V.)– Maintain Internet sites and build databases.– Services often purchased by other advertising
agencies.
![Page 12: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/12.jpg)
The Marketing Mix
• The Marketing Mix uses strategic options to enhance the product/service concept– Product (advertising)
• Most important element of the marketing mix
• Includes the way the product is designed and classified, positioned, branded, and packaged
– Price (sales promotions)• Amount charged for the good or service, including deals, discounts, terms, warranties, etc.
• Affected by market demand, cost of production and distribution, competition, and corporate objectives
– Place (event sponsorships)• Includes direct and indirect distribution
• Method of distribution must be consistent with brand’s image
– Promotion (public relations)• Product, price, and place must be determined before planning marketing communications
• Includes all marketing-related communications between a seller and a buyer
![Page 13: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/13.jpg)
The Product Element:Product Life Cycle
– Growth Stage• Characterized by rapid market expansion as
more customers, stimulated by advertising and word-of-mouth, make purchases
– Maturity Stage• Marketplace becomes saturated with competing
products and the number of new customers decreases, causing sales to reach a plateau
– Decline Stage• Products become obsolete due to new
technology or changing customer tastes
• Companies may cease all promotion and phase products out quickly
• Products pass through a Product Life Cycle– Development Phase
• Company develops or alters products to meet current and future market demands
– Introduction (Pioneering) Phase• Company incurs costs for educating customers, building widespread dealer distribution, and
encouraging demand
![Page 14: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/14.jpg)
Regulations and Ethics
• Federal Trade Commission (FTC):Created in 1914 to enforce laws
prohibiting unfair methods of competition.
![Page 15: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/15.jpg)
Regulations and Ethics
Federal Communications Commission (FCC):Enforces laws prohibiting fraud, obscenity, lotteries on radio and T.V. stations– Able to revoke a station’s broadcast license if a
station is in violation of the laws.
![Page 16: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/16.jpg)
Regulations & Ethics
• Food & Drug Administration (FDA):– Regulates the advertising of food, drugs,
cosmetics, and medical products.– Regulates labeling and packaging.– Prosecutes false labeling.
![Page 17: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/17.jpg)
Regulations & Ethics
• Securities & Exchange Commission (SEC):– Enforces laws for the advertising of securities.– Regulates the disclosure of company
information on the annual report.
![Page 18: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/18.jpg)
Regulations & Ethics
• U.S. Postal Service– Enforces laws for direct mail advertising.– Prosecutes lotteries, fraud, and
misrepresentation.
![Page 19: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/19.jpg)
Regulations & Ethics
• Bureau of Alcohol, Tobacco, and Firearms (ATF):– Requires warning labels on advertisements for
alcoholic beverages and banned active athletes from appearing in these commercials.
![Page 20: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/20.jpg)
Ethics• Competition between companies should be
fair
• Puffery – the use of superlatives (best, greatest, etc.)– Puffery is legal because courts believe that
consumers understand that superlatives are not necessarily true
– Part of the language of advertising
• Emotional Appeal is also legal
![Page 21: Advertising Agencies and the Marketing Mix](https://reader035.vdocuments.mx/reader035/viewer/2022062422/56813e65550346895da86d52/html5/thumbnails/21.jpg)
Advertising to Children
• Subject to ethical debates
• Children are consumers
• Children might not be educated consumers– No concept of the value of money– No concept of the price of a toy– No concept of the quality of an advertised
product