Ch 8 - Marketing & The Planning Process (contd)

(to be continued next time.)

Then we took a quiz.

MidTerm Review / Ch 8 - Marketing & The Planning Process

Mr. Conner passed out our mid-terms for a class-wide review.

We went over every question...

then we started chapter 8..
and I think my slides are out of order..

(to be continued next class...)

Your scantron total    ###/225 changes --> ###+12 points

-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-

I missed:

2. Revolution (not evolution.. lol)

12. In today's advertising marketplace, most clients look at  advertising agencies as partners, not vendors

True or False (*)

17. Calvin Klien and Targe are known for their strong  in-house advertising creative depts

True (*) or False

19. In the spending breakdown between advertising, consumer sales promotion, and trade sales promotion, consumer sales promotion gneerally accounts for the largest percentages of marketers' budgets.

True or False (*)

21. Public relation is the form of marketing ###

False

23. The account planner's job in the advertising agency is t represent the viewpoint of the target audience throughout the advertising development process.

True (*) or False

27. consumer overload          

28. fees /  commission system

30. p106 total marketing dollars

32. changing

33.  brand contacts

37. Liquor Advertising is - legal but largely discouraged by the liquor industry

38. puffery is legal use of terms not intended to mislead.

57. AC Nielson p220

59 False - Inside the agency, crreativity and idea generation are the Sole property of the agency's creative department (copywriters and art directors)

60 True. All agency functions are performed in an intensely

72. Milo Barnwell transmitted the first television picture FALSE

MarComm: Public Relations

The class democratically decided to view our grades or leave early. Then Crystal of the Front Row Nerd Crew shared that some of the questions from our Mid Term were on the practice quizzes on adbuzz.com which correlates to our book.

I'm going to attempt and take pix of the slides .. here goes...








It's not marketing info, persay.. but it is informing ppl about the company's activity.




Edelman is the largest by far. Concentrated power in the main few.



Tourism video about having the best job "feeding the fish" of the island and "checking the mail" in an airplane.








^^ eh, skip if you want



A video was show how "The Truth" (teen tobacco campaign) traveling with a band. "The Truth" had a mobile booth with games and giveaways.





Who is the person that pulls this all together?



LTV = LifeTime Value




Conclusion..
You Can Make Your Mark in Mar Comm

Midterms were shown, but taken back for grade recording.

Making your Mark in MarCom

MIDTERM

Midterm Taken Today

Ch 6 CONT'D

ADV

Talked about test:

Thursday -(week from today)
Intro + 6 chapter
75 questions (T/F & Multiple Choice
Bring Small Scantron & Pencils
"Review" Tuesday (2/28)
Here - Full Classtime
Leave When Done

-=-=-=-=-=-

Chapter 6

"The Eyeball Business"
- A Different kind of consumption
- Time and attention
- Media Receive payment from : advertisers, consumers, or both
- Advertiser Paid Media (100% Ad revenues)
• Television, Radio, Out-of-home (billboards), direct marketing
###
- Consumer Paid Media [tickets/subscriptions]
• Some Cable (HBO, etc.)
• Movies, CDs, concerts
• magazines
• public radio
###

Changing Habits / Chanign Media
- Old Media Models in trouble...
- Newspaper, Network TV, some Magazines
Still lots of TV, but...
- many more channels
- audiences are fragmenting
- Mass Media is losing mass
The Second Screen
- Internet/Social Media
- A powerful combination
###
The audience Taking Control
- Media becoming interactive
- Media companies losing control
- Local impact / global impact
Easy entry but...
- no easy profits
- change quick as a blink
The Third Screen

Early media History ###?

- The legend of the first mass-appeal advertising
Over 2000 years ago in N. Africa City of Cyrene
Silver coins carried a procut message, the coins advertised a local plant

Evolution / Revolution
The Printing Press
The Reformation
Thirty Years War
The American Revolution

Handbills, Almanacs, Pamphlets.
- Benjamin Franklin
• Poor Richard's Almanac
• Pennsylvania Gazette
- "Common Sense" ###

###

Early Broadcast - Television
Philo Farnsworth - teenager who invented television, developed cathode ray
1927 applies for patent, 1930 patent granted
1939 introduced by RCA at World's Fair
1946 - 10 TV stations
1949 ###

First TV ads
- Royal Crown Cola
- BBDO takes lead
1951 1.5 million TV sets
1952 - 15 million TV sets
TV networks develop

1953 - First Color TV Broadcast - RCA

Consumer & The Media
- A Media-Saturated Culture
• Nothing like it before
• Incredible richness of options
- How many messages a day?
- The Great American Time Crunch
• More time for media
• Less time for ...
- Remember - they're your eyeballs!

Media Conglomerates
From Local to Global
The First Conglomerates - local - staring with the newspaper. ## WGN


Broken Business Models
Example: The Tribune Company
- Newspaper = Dramatic declines in
• Readership
• Advertising Revenue
- Television - not so super
• Increase in clutter/competition
• decline in viewership / ad revenue
- ###

From Special to General
- Growth based on special expertise:
• Time = magazines
• Disney movies/theme parks
• CBS = broadcasting

- Opportunities Expansion:
• "Bigger Financial Fish" eat smaller ones
• Mergers also create "Bigger Fish"
• Example: ViaCom (Paramount, MTV, Nickelodeon)
• Merges with CBS (TV + Radio + billboards)

WORLD OF THE MEDIA GIANTS
• Four Very Large - primarily media
> Time-Warner
> Disney: ABC, A&E, Disney, ESPN, Miramax...
> CBS - broadcasting + Viacom (cable)
> News Corporation (FOX)
• Other "Interesting" Giants
> SONY (Entertainment + Electronics)
> NBC Universal (TV + Movies)

World of the Media Giants
Time Warner
Comcast
###
###
DirecTv

News Corporation (FOX)
Rupert Murdoch
understood power of media
Australian Newspapers
more newspapers,


"SEEMED LIKE A GOOD IDEA AT THE TIME... BUT...."

Media are becoming BRANDS
- Growing across media platforms
Driven by conglomerates ###


Media "sells eyeballs"
time and attention
###

Advertising Agencies (part 1)

Chapter 5

_Advertising agencies_
- 1843 volneypalmer
• agent for media, not advertisers
- 1864 - George P. Rowell
• "the johnny applesead of advertising"
• Rowell's American Newspaper Directory
### Printer's Ink?
- Cyrus Curtis
• Curits Publsihing, establishes commission system, this turns agencies into media sales force
- N.W. Ayer & Son was the first advertising agency
• founded 1864 by Francis W. Ayer [who didn't even have a "son"]
• key concept...
• worked for the advertiser [client]
• slogan - "keeping everlastingly at it brings success."
• lasted until 2002

Early advertising effectiveness
- new and improved media vehicles
- growing interest in new products
• food, hygiene, convenience
• services, improved products
- relatively uncluttered media
• fewer ads + ###

[these conditions were ripe for advertising to be successful]

Full-Service Agency Functions
today, "full-service" agencies provide the following:
• account management
• creative
• media planning and media placement (media buying)
• research
many adding "below the line" services - PR, sales promotion, digital/interactive

[note to know these four Agency functions]


U.S. agency business today* *ish
12,436 firms
13,508 establishments
167,422 paid employees
• US Census Bureau, 2006
• probably shrinking in current economy
• still using interns and low-cost new hires
New Your still dominates
• West Coast growth - LA & SF (imported car brands, high tech
• other unique regionals (Portland (Nike), Martin Agency (Richmond)


Major types of agency:
- Mega-agency groups
- Independant groups (national, regaional, and local
- specialized/nich agenices
- ###

1. Mega-agency groups (marin sorrell, chairman WPP)
prompted by mergers and client globalization
financial pressures
service multinational accounts
subsidiaries provide IMC service

pros of mega-agencies:
larger talent pool, negotiating clout, financial rewards, account security, competitive edge, strong partnerships, more services, international link

cons of mega-agencies:
people vs. profit
creativity vs size
conflict of interests
people business

2. national, regional, local
these are independent agencies. there are fewer national agencies - not part of mega-agency groups
regional and local agencies work with smaller clients - usually nearby. it is still relatively easy to start your own small local agency - if you have a client

example: The Richards Group which grew from small design firm. who now have Motel 6, Chick fil-A, Orkin

example: RPA (Rubin Postaer) with major accounts of Honda & Acura.

example: Cramer-Krasselt, offices in Chicago/Milwaukee/Phoenix. Major accounts: career-builder, AirTran.


3. Specialized/Niche Agencies
industries specialists
ethnic agencies
internet agencies (R/GA a digital agency)
creative boutiques and design houses (still a relatively easy way to enter the business with your own firm

example: Wexley School for Girls (Seattle)
a new approach "situational"
giant pushpins promotes Microsoft's live search maps.

other suppliers
- provide "unbundled" services (one part of what an agency does)
- media buying services
- freelancers & consultants
- production companies
- in-house or "house" agencies
- these are agencies owned by clients (examples: Target, Calvin Klein, Gap)
[in teacher's opinion, sometimes, in-house agencies work and be a little self-indulgent]
Advantages&disadvantages
pros: familiarity, specialization, fast service, cost savings, confidentiality.
cons: objectivity, resources, fresh ideas, extra cost & overhead.