While the use of social media and digital media continue to grow, traditional media remain

vital for the advertising of most brands. Advertising management consists of several
important activities.
1st , Choose an advertising theory or approach.
2nd , Company leaders develop guidelines that help everyone understand the relationship of
advertising to eventual success.
3rd Company’s management team decides to complete advertising work as an in-house
activity or in conjunction with an advertising agency.
4th , they generate advertising parameters to help control the process.
A creative brief will then be prepared to direct the actual design of the advertising campaign

Lavidge & Steiners Hierarchy-of-effects model

Hierarchy of Effects The hierarchy of effects model helps to clarify the objectives of an
advertising campaign.
The hierarchy of effects model features similarities with theories regarding attitudes and
attitudinal change, including the concepts of cognitive, affective, and conative elements.
The model outlines six steps a consumer or a business buyer moves through when making
a purchase: 1. Awareness 2. Knowledge 3. Liking 4. Preference 5. Conviction 6. The actual
purchase

Although the hierarchy of effects approach may help a creative understand how a consumer
reaches a purchase decision.
For one, these six steps might not always constitute the route a consumer takes. A person
may make a purchase (such as an impulse buy) and then later develop knowledge, liking,
preference, and conviction. Also, a shopper could purchase products with little or no
preference involved, because a coupon, discount, or purchase incentive caused him to
choose one brand instead of another may spur a consumer to purchase the product with no
prior brand knowledge or preference. At other times, the individual might not even
remember the name of the brand purchased previously. This may be the case with
commodity products, such as sugar or flour, or some clothing purchases, such as socks and
shirts. Even with these criticisms, however, the framework remains a popular approach to
the development of advertising messages and campaigns.
The Impact of Advertising Expenditures
The factors present in the relationship include: • The communications goal • Threshold effects • Diminishing
returns • Carryover effects • Wear-out effects • Decay effects

Wear-Out Effects
An additional complication to an advertising campaign may emerge. At a certain point, an
advertisement or particular campaign simply becomes “old” or “boring.” Consumers tend to
ignore the advertisement or tune it out.6 Some consumers may develop negative attitudes
toward the brand if they become annoyed at the marketing communication and believe the
advertisement should be discontinued. This indicates wear-out effects. Research regarding
advertising campaigns over the last 50 years indicates that about half of all campaigns last
too long and experience wear-out effects. On the other hand, the same research suggests
that the long-term effect of advertising remains twice as high as the short-term effect. As a
result, marketers try to continue a campaign long enough to capture that long-term effect
but not so long that wear-out sets in.7 Discovering the balance between wear-out and long-
term impact remains challenging.

How do companies choose advertising agencies?

Goal Setting Prior to making any contact with an advertising agency,
company leaders identify and prioritize corporate goals. The targets provide a sense of
direction and prevent personal biases from affecting selection decisions.
Goals guide marketers by providing a clear idea of what the company wishes to accomplish.
They also help the marketing team as they make requests for campaign proposals.
Campbell Soup Co. recently issued a request for proposals that would consolidate four of
the company’s iconic brands – Prego, Pace, SpaghettiOs and Ready Meals.
Campbell wanted an agency that could combine creative, content, digital and social efforts
for all four brands. According to Megan Haney, senior manager-communication for
Campbell’s, the company wanted an agency that would “drive better efficiencies, better
thinking, and more collaboration with us as a partner.” By determining the goal in advance,
Campbell’s marketing team was able to select the best agency.
What steps should be taken in selecting an advertising agency?
Steps in Selecting an Advertising Agency
1. Set goals. 2. Select process and criteria. 3. Screen initial list of applicants. 4. Request
client references. 5. Reduce list to two or three viable agencies. 6. Request creative pitch.
Goal Setting: Goal setting is Prior to making any contact with an advertising agency,
company leaders identify and prioritize corporate goals. The targets provide a sense of
direction and prevent personal biases from affecting selection decisions.
Goals guide marketers by providing a clear idea of what the company wishes to accomplish.
They also help the marketing team as they make requests for campaign proposals.
What evaluation criteria should be used in selecting an advertising agency?

Evaluation Criteria in Choosing an Advertising Agency

Selection Criteria :
Firms with experience often set selection criteria in advance in order to reduce any biases
that might affect decisions. Emotions and other feelings can lead to poor choices. The list
can be especially useful during the initial screening,
• Size of the agency : a company marketer should consider the size of the agency versus
the size of her firm. A good rule of thumb to follow is that the account should be large
enough for the agency so that it is important to the agency but small enough that, if lost, the
agency would not be badly affected.
There are both large size agencies and small size agencies, both have their own advantages and
disadvantages. Large agencies serves big clients, provides wide variety of services, and charges
higher but, cannot give personal attention because of having large number of clients, also cannot give
much attention to small clients because of having large number of big clients.

• Relevant experience of the agency : 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.
• Conflicts of interest : client company makes sure the agency does not have any conflicts of
interest. An advertising firm hired by one manufacturer of automobile tires would experience a
conflict of interest if another tire manufacturer attempted to hire the agency.
• Creative reputation and capabilities : One method used to assess an agency’s creativity is asking
for a list of awards the company has received. Although awards do not always translate into
creating effective advertisements, in most cases a positive relationship exists between winning
awards and writing effective ads.
• Production capabilities : 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 initial screening process. Many
agencies either employ subsidiary companies to perform the media work or subcontract it to a
media firm. The advertising agency does not necessarily need to make media buys, but it should
have the capacity to make sure they are made to fit with the ads being designed

• Media purchasing capabilities

• Other services available : The final three selection criteria—other services available, client
retention rates, and personal chemistry—are utilized during the final steps of selection. These criteria
help make the final determination in the selection process.

• Client retention rates

• Personal chemistry: Chemistry between employees of the two different firms becomes critical. The
client company’s leaders should be convinced that they will work well together. Chemistry can break or
make the final decision

Creative Pitch (During a creative pitch, an agency presents ideas on the problem or campaign posted
by the potential client. agencies present their ideas to clients in a document, presentation or pitch deck
that should include both the creative and strategic points of view and show the way it will help reach the
client's goals)

When the company reduces the list to two or three finalists, the selection team asks each
for a creative pitch.
The advertising agencies chosen to compete provide a formal presentation that addresses a
specific problem, situation, or set of questions—a process also called a shootout. The
presentations reveal how each agency would deal with specific issues that might arise
during preparation of a campaign. The process helps a client company choose the agency
that best understands the issues at stake and offers a comprehensive approach to solving
the problem or issue.
Ultimately, both parties, agencies and clients, should share the same goal, which is for the
process to result in a long-term, sustainable relationship, producing outstanding work that
delivers results, builds brands and enhances corporate reputations.
An advertising pitch describes the proposals of an advertising agency to promote a
product or service. The pitch states the objectives for the campaign and describes
how the campaign will deliver its intended results. Companies request advertising
pitches so that they can select the most suitable proposal from a number of
advertising agencies. A successful pitch should demonstrate that an agency can use
the marketing budget effectively to create greater value for a brand, according to the
World Federation of Advertisers.
Agency Selection: During the presentation phase, company marketers meet with agency
creatives, media buyers, account executives, and other people who will work on the
account. Chemistry between employees of the two different firms becomes critical. The
client company’s leaders should be convinced that they will work well together. Chemistry
can break or make the final decision.
After completing the selection process, the agency and the company will work together to
prepare the advertising campaign. Those who did not win the account are also notified, in
order to maintain more positive relations with them over time. The account executive ,
account planner, and advertising creative all play key roles in this process.

What are the primary job functions within an advertising agency?

Roles of Advertising Personnel : Advertising agency employees perform a wide variety of
roles. In small agencies, an individual may carry out multiple roles.
In a large agency, multiple individuals will be employed in the various departments and
perform similar functions.
The primary roles within the agency consist of the account executives, creatives, traffic
managers, and account planners.
Account executives: serves as the go-between for advertising agency and client company. It
will be actively involved in soliciting the account, finalizing details of the contract and
working with personnel within the agency to make sure the advertisements meet the client’s
specifications.
Creatives: develop and design advertisements. They are either members of advertising
agencies or freelancers.
Traffic manager: works closely with the advertising agency’s account executive, creative
and production staff. Responsibilities include: scheduling the various aspects of the
agency’s work to make sure its completed on time.
Account planner: provides the voice and will be the advocate for the consumer within the
advertising agency. It assists the client in developing long-term communication strategies
and provides direction for individual advertising campaigns. In small agencies, an account
executive may perform the role.
Planners make sure the creative team understands the consumer (or business). Account
planners interact with the account executive and the client to understand the target
audience of the ad campaign.

What are the advertising campaign parameters that should be considered?

Producing effective advertising campaigns requires the joint efforts of the account executive,
creative, account planner, and media planner. Advertising agencies seek to produce campaigns
that stand out among the competing messages. Creating effective campaigns requires attention to
the advertising campaign parameters listed as below:
Advertising Campaign Parameters
• Advertising goals • Media selection • Tagline • Consistency • Positioning • Campaign
duration
Advertising Goals : Advertising goals are derived from the firm’s overall communication
objectives. identifies the most common advertising goals. These should be consistent with
the marketing communications objectives and other components of the integrated marketing
communications plan.
1. To build brand awareness : A strong global brand often constitutes a key advertising
goal. Building a brand’s image begins with developing brand awareness. Brand awareness
means the consumers recognize and remember a particular brand or company name as
they consider purchasing options. Advertising offers an excellent venue to increase brand
awareness.
top of mind brands. For example, when asked to identify fast-food hamburger restaurants,
McDonald’s and Burger King almost always head the list. The same may be true for Nike
and Reebok for athletic shoes in the United States, as well as in many other countries.
The term top choice suggests what the term implies: A top choice brand is the first or
second pick when a consumer reviews her evoked set of possible purchasing alternatives

2, To inform : Provide Information Advertising achieves other goals, such as providing

information to both consumers and business buyers. Typical information for consumers
includes a retailer’s store hours, business location, or sometimes more detailed product
specifications.
3. To persuade : Persuasion When an ad convinces consumers of a brand’s superiority,
persuasion has taken place. Changing consumer attitudes and convincing them to consider
a new purchasing choice can be challenging. Advertisers utilize several persuasion
methods. One involves showing consumers the negative consequences of failing to buy a
particular brand. Alternatively, an advertising campaign can highlight the superior attributes
or benefits of a brand
4. To support other marketing efforts : Advertising often supports other marketing functions.
Retailers also advertise to support marketing programs. Any type of special sale (white sale,
buy-one-get-one-free, pre-Christmas sale) requires effective advertising to attract
customers. Manufacturers and retail outlets both run advertisements in conjunction with
coupons or other special offers.
5. To encourage action : Many firms set behavioral goals for advertising programs. A
television commercial encouraging viewers to take action by dialing a toll-free number to
make a quick purchase serves as an example.
The five advertising goals of building image, providing information, being persuasive,
supporting other marketing efforts, and encouraging action are not separate from each
other. They work together in key ways. For instance, awareness and information are part of
persuasion.
Media Selection : Selecting the appropriate media requires an understanding of the media
usage habits of the target market and then matching that information with the profile of each
medium’s audience. Volkswagen positioned the Tiguan crossover as a fun vehicle aimed at
young, active individuals who love the outdoors.
The marketing team identifies the media the target market favors. Teenagers surf the web
and watch television. Only a small percentage reads newspapers and news magazines.
In business-to-business markets, identifying the trade journals or business publications that
various members of the buying center most likely read assists in the development of a print
advertising campaign. Engineers, who tend to be the influencers, often have different media
viewing habits than vice presidents, who may be the deciders.

Taglines The key phrase in an advertisement, the tagline, should be something memorable
that identifies the uniqueness of a brand or conveys some type of special meaning. “Just Do
It” has been Nike’s tagline for many years.
L’Oreal Paris has used the shortened tagline “Because I’m Worth It” for more than 40 years.
BMW’s “ultimate driving machine,” Wal-Mart’s “Save money, live better.”
Consistency : Repeatedly seeing a specific visual image, headline, copy, or tagline helps to
embed a brand into a person’s long-term memory. Visual consistency becomes especially
important because most customers spend very little time viewing an advertisement. In most
cases, an individual gives just a casual glance at a print advertisement or cursory attention
to a television commercial. Visual consistency leads the viewer and moves the message
from short-term to long-term memory. Consistent logos, taglines, headlines, and campaigns
aid in this process.
Positioning: Maintaining consistent product positioning throughout a product’s life makes it
more likely that a consumer will place the product in a cognitive map. When the firm
emphasizes quality in every advertisement, it becomes easier to tie the product into the
consumer’s cognitive map than if the firm stresses quality in one ad, price in another, and
convenience in a third campaign. Inconsistency in positioning makes the brand and
company more difficult to remember.

A positioning statement is the collection of information about the target audience; the
product is offering to them, comparing it with competitors and designing a unique
selling proposition (USP). On the other side, taglines tend to express the value of a
product or service so as to improve the position and appearance of the brand.
Taglines tend to portray who the company is and what they have to offer.

Taglines Examples
Some popular taglines are:

 Nike “Just Do It’: This tagline made the brand more than just athletic apparel
provider. It started embodying the state of mind. It encourages the thought that it
is not necessary to be an athlete to stay in shape. It takes very simply if you want
to do just do it.

Positioning vs tagline-
The most successful brands have a genuine and true brand positioning
statement. If you've ever seen a Disney movie, gone to a Disney store,
stayed in one of their hotels, or visited one of their theme parks, you'll
notice that their sole purpose is to make people happy.
Their positioning is the brand's guiding light, but it is rarely publicized. A
tagline is a type of marketing tool. It is directed at the public and is
usually accompanied by an awareness campaign. The best taglines are
memorable and meaningful, and they speak to the brand's benefit as
it applies to the customer. They should also support the brand's
overall positioning.
Here is Nike's positioning statement: For athletes in need of high-quality, fashionable athletic
wear, Nike provides customers with top-performing sports apparel and shoes made of the
highest quality materials.
You can hear 'I'm lovin' it!' when I say McDonald's. When I say Nike, you think, 'Just Do It!' This
is because of the fact that their taglines are drilled into our heads through TV commercials,
print advertisements, billboards, etc. until our minds are swamped with these messages.

Disney's brand positioning statement is: “Disney provides unique

entertainment for consumers seeking magical experiences and
memories

Campaign Duration The length or duration of a campaign should be identified. Using the
same advertisement for an appropriate period of time allows the message to embed in the
consumer’s long-term memory.
It should be changed before it becomes stale and viewers lose interest;
however, changing ads too frequently impedes retention. Creating new campaigns also
increases costs.
Typical campaigns last about six months; however, exceptions do occur. Some run for
years. The criterion that typically determines when it is time to change a campaign is the
wear-out effect. When consumers ignore ads and it no longer is producing results, it
becomes time to launch a new campaign. One method used by advertisers to lengthen
advertising campaigns and delay wear-out effects is to create multiple versions of ads within
the campaign, as was the case in the JD Bank ads that used variability theory