Advertising Management PGPM 09-11

For Private & Restricted Circulation only

Post Graduate Programme in Management

2009-2011

ADVERTISING MANAGEMENT

(Elective Course in Marketing)

6th Term starting December 2010

Renaissance Building

Course Outline, Session Plan and Case Material

Instructor

Prof. Mukul P Gupta Office: A-11, Scholars Building

Phone: 5113, email: [email protected]

Consultations (no appointments needed): Mondays 1600 – 1730 hrs.

MDI phone: (0124) 4560113 fax: (0124) 4560456 web:www.mdi.ac.in

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For Private & Restricted Circulation only

Management Development Institute, Gurgaon

Post Graduate Programme in Management (2009-2011)

ADVERTISING MANAGEMENT: AN IMC PERSPECTIVE

Instructor - Mukul P Gupta

This booklet contains the following:

1. Course Structure, outline and Guidelines 2. Session-wise activity schedule and plan 3. Cases & Reading Material

a) Wavin India Limited (A) (for illustrative purposes only) b) Goal Setting & Task Checklist (DAGMAR) c) Make Yourself Heard: Ericsson’s Global Brand Campaign

d) Sunkist Growers, Inc.

e) Du Darfst (A)

f) Nishan Jams g) Creative Advertising: Sunday Communications Limited

h) Mountain Dew: Selecting New Creative i) The Legwear Campaign j) Pacific Telephone & Telegraph Company k) Union Carbide - Chandi Ki Minar

l) Mary Kay Cosmetics, Inc.


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ADVERTISING MANAGEMENT: COURSE STRUCTURE

SessionNo. TOPIC

TEXT Wells/Moriarty/

Burnett CASE(C)/ Activity (A)

1 Communications in Marketing

Ch 1, 2 A: Concept Discussions A: Group Composition & Project Choice

2 Context of Advertising and its role in Marketing Ch 1, 2

A: Concept Discussions C: Wavin India Limited (A)

3 Planning and Strategy in Advertising Ch 1, 2 C: Make Yourself Heard: Ericsson’s Global Brand Campaign

4 Communication & Message Strategy Ch 4, 5, 6 & 7 A: Concept Discussions

5 Communication & Message Strategy Ch 4, 5, 6 & 7 C: Sunkist Growers Inc. A: First written Submission

6 Communication & Message Strategy Ch 4, 5, 6 & 7 C: Du Darfst (A)

7 The Advertising Brief - A: First Presentation

8 Message Execution: Creative Strategy Ch 12, 13 & 14 A: Concept Discussions

9 Message Execution: Creative Strategy Ch 12, 13 & 14 C: Nishan Jams

10 Message Execution: Creative Strategy Ch 12, 13 & 14 C: Creative Advertising: Sunday

Communications Ltd. A: Second Written Submission

11 Message Execution: Creative Strategy Ch 12, 13 & 14 C: Mountain Dew: Selecting New Creative

12 Media Strategy Ch 8, 9, 10 & 11 A: Concept Discussions

13 Media Strategy Ch 8, 9, 10 & 11 A: Concept Discussions

14 Media Strategy Ch 8, 9, 10 & 11 C: The Legwear Campaign A: Third Written Submission

15 Budgeting for Advertising Campaigns Ch 11, 15, 16 & 17

C: Pacific Telephone & Telegraph Company A: Concept Discussions

16 Advertising Effectiveness Research Ch 6, 19 A: Concept Discussions

C: Union Carbide-Chandi Ki Minar A: Final Project Report Submission

17 Integration of Marketing Communications Ch 2, 3, 18, 19 A: Concept Discussions

18 Integration of Marketing Communications Ch 15, 18, 19 C: Mary Kay Cosmetics, Inc.: Marketing

Communications

19-20 Learning from Group Projects - A: Final Project Presentations


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ADVERTISING MANAGEMENT: AN IMC PERSPECTIVE Course Philosophy

Advertising as we knew it just a decade back has undergone a metamorphosis in the sense that there is a general decline in the relative effectiveness of mass-media advertising. This has resulted from a change in the marketing context like – increase in competition, increasing brand parity (reduced differentiation), increase in the touch-points for audience where brand information is available, and changes in channel power. On the other side, technological developments like instant communication have thrown open new opportunities in marketing communications.

Integrated marketing communications is therefore the new approach evolving in substitution to advertising of yester years.

There are many definitions of advertising and similarly there are many approaches to the advertising process in business. Loosely structured, advertising is a tool that businesses deploy for communicating in the market-arena. The foundations for the process integrate an organisation’s major goals, policies, decisions and sequences of action into a cohesive whole. It can apply at all levels in an organisation and pertain to any functional area of management. Thus there can be advertising to customers, advertising to investors, advertising to potential employees, advertising to vendors and so on. While marketing in general is dealt with in detail in other courses, this course is designed to provide an in-depth understanding of the nature of competitive marketing communications management and points to the need to adopt new communication practices in order to meet the demands of business opportunities emerging.

The course will focus exclusively on consumer markets and will address in greater depth many of the consumer marketing communication concepts introduced in the core marketing course(s). Cases will focus primarily on consumer products and technologies, services, fashion, and entertainment.

The skills and insights developed through this course will be of practical value to you as a business decision maker regardless of your future direction. The skills and insights transfer well to other subjects. To help you develop and test your understanding and skills, the course centres on class discussion and participation, rather than simple lecturing. This course proceeds using a combination of lectures, conceptual discussions, problems & case assignments. Active and meaningful class participation is encouraged and expected.

The onus of making the learning experience rewarding would lie with the participants, which would require continuous work and prior preparation. The participants are required to ensure looking up at the prescribed readings in advance. They should analyze cases before coming for the class.


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Objectives of the course This elective course in the Marketing Area is designed to:

• develop an understanding of the role and importance of advertising and marketing communication functions in the marketing mix;

• familiarise participants with the concepts and techniques involved in market-focussed communication and advertising efforts and help them in developing a framework for such decisions;

• improve the quality of decision-making in these areas within the operational and environmental constraints;

• expose the participants to the working of the ad. agencies and media and develop an understanding of relationships with them;

• provide an opportunity to experience the integrated marketing communications campaign planning process for real situations; and

• expand the perspectives on advertising to Integrated Marketing Communications. Pedagogy The course will involve a first hand exposure to the process of campaign planning. This will be accomplished through the perusal of a real life project. To gather a wider conceptual and contextual understanding of the subject matter, old cases (to avoid asymmetry of information amongst participants) will be used from the Indian scenario. Reading assignments are to be completed prior to and in preparation for class discussion. They are critical to the success of the course and to your comprehension of advertising management. The course format will comprise:

• Formal lectures

• In-class discussion of readings

• Analysis and discussion of cases

• Advertising Campaign Development as a project The onus of making the learning experience rewarding would lie with the participants, which would require continuous work and prior preparation. The participants are required to ensure looking up at the prescribed readings in advance. They should analyse the designated case before coming for the class.


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Career Focus In terms of Career focus, this course is designed for participants who plan to work in firms that market to consumers or who plan to work in companies that offer support to these firms (e.g., consulting). This course is not targeted towards ad-agency careers though agencies could offer positions in client servicing and account planning roles. Course Text Wells, Moriarty and Burnett, Advertising: Principles and Practice, 7 ed., Pearson Prentice Hall,

ISBN: 9788131714140, Indian Impression (Referred as WMB) Additional Texts & Readings

David Ogilvy - Ogilvy on Advertising

Subrato Sengupta - Brand Positioning

Russell & Lane - Advertising Procedure

Manendra Mohan - Advertising Management

Weilbacher - Advertising

Belch & Belch - Integrated Marketing Communications Perspectives

Schultz, Martin & Brown - Strategic Advertising Campaigns

Kelly & Jugenheimer - Advertising Media Planning: A Brand Management Approach

Shah & D’Souza - Advertising & Promotions: an IMC Perspective

Clow & Baack - Integrated Advertising, Promotion, and Marketing Communications

Batra, Myers and Aaker - Advertising Management

Kazmi & Batra - Advertising & Sales Promotion Evaluation and Weightage Major component in the course is the project that involves development of a complete advertising plan for a product or service. The final outcome of this project will be a report consisting of a well integrated and carefully documented proposal for what strategies, expenditures and research are to be followed. As a part of this project, the participants are to prepare three written and two oral presentations, besides a final comprehensive report.


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Participants will also be making presentations of case analysis, submitting reports thereon and critiquing other presentations, all of which will be graded for the final evaluation. The evaluation would be based on following weightage:

Case Analysis & Presentations* - Case Analysis Report 5.0 % - Case Analysis Presentation 10.0 % - Critiquing the Case Presentation 5.0 % 20.0%

Project work* - First Submission and Oral Presentation 5.0 % - Second Submission 5.0 % - Third Submission 5.0 % - Final Project Submission 10.0 % - Final Oral Presentation 5.0 % 30.0 %

Quizzes 15.0 %

Term-end Exam 35.0 %

100.0 %

* Refer to the guidelines appended.

1. Group Assignments (50% of the final marks)

(a) Case assignments (20% of the final mark)

The course has eleven cases to be analysed of which ten are designated for presentation to the class by designated groups.

The participants would form into ten groups (equal members) of their own choice (as also stated below under ‘Project Work Assignment’). Please submit your group composition as soon as possible, (no later than the first session) and one or more groups would be assigned the task of presenting their analyses to the scheduled case in the class. Please elect a group leader.

The participants would work in groups and each group would be assigned the task of presenting their analyses to the scheduled case in the class (20 minutes max and another 10 minutes max for rebuttal of review.).

There would be another group assigned to each case that would be required to review (10 minutes max.) the presentation made. For this purpose, the reviewing group is encouraged to make their own presentation if they so like.


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The purpose of reviewing is to expand the scope of presentation made and bring out issues that could have escaped the attention of the presenting group. It is in no way intended to be-little the presentation or register any one-up-man ship.

Any member of the presenting or reviewing group may be asked by the instructor to lead the discussions. Once the reviewing group is done with its contribution, the case discussion will be thrown open to the entire class.

Every participant in the class is expected to have read fully and analysed the scheduled case before coming to the class.

The presenting group is required to submit a written analysis of the case (5-10 pages- hard copies of OHP transparencies used for making the presentations are not acceptable) before making the presentation. It should be noted that this exercise will also enable participants of the course to deal with the type of questions expected in the exam. The reviewing group is exempted from this submission of the written report.

The Case Assignment component carries a weight of 20% towards the final mark on the course. This grade will comprise of three parts representing written analysis submitted, oral presentation and reviewing (of another case).

Marks will be allocated as follows:

Criterion marks

Written Submission

• Situation Analysis – identification of the key decision issues facing the organisation

• Development of decision choices, evaluation of the choices and the conviction in the decision made

• Responses to the case questions posed: creativity, application of the theory to the question, motivation of answers

5

Oral Presentation

• Crispness, conviction and believability • Rebuttal of Review

10

Review of Presentation made by another group

• Expansion of scope and quality of analysis by presenting group

5

TOTAL 20

While the members of the group will share a common grade for the written report, participants who are absent during the presentation or reviewing by their group or those who fail to demonstrate their preparedness cannot get any credit for the other components.

Written analysis for the case is to be handed in at the beginning of the appropriate session.


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(b) Project Work Assignment (30% of the final mark)

Your major component in the course is the project, which involves development of a complete advertising plan for a product or service of your choice (to be exercised only out of the list given below).

You should form into groups of your own choice. We would need ten groups in all. The groups should be similar in size. Each group must elect its leader.

The groups take on the posture of different groups that are involved in a typical ad campaign planning. In the first phase, the group plays the role of marketing strategy planners in a designated company (chosen by you) who are setting the advertising agenda for next one year. This group prepares a brief for the ad agencies to work on. This ad brief is your first submission. You get to present this brief orally to the mock representatives from your agency.

In the second phase, the group takes on the role of the creative department of an ad agency. The creative department prepares the ads suited for different media and antecedent promo materials for giving effect to the brief. This is your second submission.

The third phase sees the group taking on the role of media planners. The group now designs a media plan for the ad campaign. This is your third submission.

Finally the group takes on the role of the advertising and communications department that takes up the entire advertising proposal for approval by the Executive-committee. The department needs to showcase its entire strategic thinking, budgets, creative and media strategy both as a written document (Final Report) as well as an oral presentation before a mock Executive committee.

Thus, as a part of this project, you and the members of your group are to prepare three written and two oral presentations, besides submitting a final comprehensive report. The final report should consist of a well-integrated and carefully documented proposal for what strategies; expenditures and research are to be followed.

The three (actually four in all) written submissions should, as a minimum, address the following topics:

1. Objectives, strategy and positioning: what business is this company in and what is the market and the competitive situation? Do Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. What strategy alternatives are there? What segments are likely to be most profitable? What explicit objectives should be set for the next year's advertising programme? Develop a perceptual map of the leading brands. What kind of marketing and consumer research is called for?

2. Message Strategy and Tactics: You will identify the overall message strategy and tactics to be used. This will require an assessment of competition, judgements as to the important product benefits, copy points, differentiation opportunities, and careful attention to the concepts given in the text material. This report should also spell out


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the research programme that you would recommend, giving attention to the budget and alternative types of commercial services available in the country. It is expected that you will design the roughs for the print ads, storyboards for the commercials, verbalised jingles/spots, etc.

3. Media Strategy and Tactics: Here you are to recommend the overall media-mix to be used showing a breakdown of expenditures by alternative media (this should include money for promotional materials, contests, premiums, etc., where applicable). Assess which, if any, of the media models given in the text, is most appropriate. Address the question of media research and how you will test the results of your media plan.

4. A final comprehensive advertising plan, which integrates the three component parts, will then need to be submitted. You may consider reworking some parts based on the feedback provided on the earlier submissions.

Your group is to make two oral presentations, first will be a brief for the creative and media strategy departments of the agency resulting out of the first stage of written submission.

The second presentation will be the overall presentation that your group would have made to the Executive committee of your company. The instructor will have the privilege of deciding as to which group member(s) would make the oral presentation(s).

These submissions/presentations will be evaluated on the basis of over-all communication effectiveness, and the degree to which textbook concepts, models and theories are integrated into the presentations themselves. .

It will be advantageous to choose a large company situation on which to work, one in which advertising is a significant expenditure of funds.

It is recommended that you choose a situation of market-challenger rather than a leader. You can choose any one of the following or similar situations with the approval of the instructor:

• Skin Care Products • Chocolates • Consumer Electronics

• Cooking oil • Packaged Milk • Toilet Soaps

• Formal wear garments • Laundry Products • OTC Drugs

• Jewellery • Packaged Snacks • Packaged Rice

• Mutual Funds • Small Passenger Cars • Personal Banking

• Regular packaged tea • Satellite /Dish TV • Scooters

• Package Tours • Washing Machines • Hair Care Products The project work has to start in parallel with the course. It would include stage submissions.The stage deadlines (not negotiable) are:


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* Final Product/Service Choice Session 01

* First Written Submission Session 05

* Second Written Submission Session 10

* Third Written Submission Session 14

* Final Project Submission Session 16

Deviations from deadlines are treated as no submissions for the purposes of award of grades. Since the submissions are sequential in nature, no subsequent submission is accepted unless the previous submission has already been made.

2. Individual Exams (Quizzes – 15% End-term- 35%, total 50% of the final mark)

The course will have three or more quizzes. They will not be pre-announced. Quizzes will be based mostly on the text material.

The end-term exam will have duration of about three hours (150-180 minutes). This will be a written, open book exam, based on a case similar to those analysed in class. The intention of the exam will be to test your ability to evaluate an advertising situation, develop decision choices and criteria, make managerial decisions and to apply the knowledge acquired during this course.


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Session-wise activity schedule and plan

Session 1 : Communications in Marketing

Outcomes: development of the understanding of

• the communication process

• Communication as part of promotion

• Advertising in Promotion mix

• Working of Advertising and Communication Agencies

Preparatory readings

• Wells, Moriarty & Burnett: Chap. 1 & 2

Other Activities

• Submit Group Composition details

• Submit your choice of product/service for project work

Session 2 : Context of Advertising and its role in Marketing


• Macro context and perspective of Advertising

• Economic and Social Effects of Advertising

• Ethical and Social Issues, Deception and Self-Regulation, Ad Standards Council

• Role of advertising in shaping consumer decisions

• Institutions Involved in Advertising



• DAGMAR Checklist

Case Preparation

Wavin India Limited-A. (For illustrative purposes only – not for group presentation)

Questions to consider on the case:

• What kind of a client is Wavin? Does it have the money to spend on advertising?

• What are the communication challenges that Wavin faces? Who are its customers? What are their buying motives and processes?

• What is expected of communications to achieve in this market situation?

• If you were an advertising agency, would you like to take up this client?


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Session 3 : Planning and Strategy in Advertising


• How Advertising works?

• The Strategy in Advertising

• Setting Objectives for Advertising

• DAGMAR Approach

• Corporate and Product Advertising



• DAGMAR Checklist

Case Preparation

Make yourself heard: Ericsson’s Global Brand Campaign (To be presented during session 3)


• What role, if any, do brands play in consumer or industrial products and services?

• Given the above, what do you think of the communication strategy behind Ericsson’s brand campaign? Are they on the right track? Why or why not?

• What should Ericsson do next? More specifically, should the brand campaign continue in its present form? Or should the campaign be linked with product-specific advertising at the local or international levels? How?

Session 4-6 : Communication and Message Strategy


• How advertising works

• Benefit-based attitudes

• Developing Brand Personality

• The Communication Strategy

• Developing a Communication Brief

• Multiple objectives and Diversity in Audience, Audience Segmentation

• The Message Strategy, Communication for Positioning

• Role of Marketing Implementation in Communication design


• Wells, Moriarty & Burnett: Chap. 4, 5, 6 & 7


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Case Preparation

Sunkist Growers, Inc. (To be presented during session 5)


• What is the role of advertising for fresh lemons?

• Can lemons be successfully branded?

• What conclusion can be drawn from the 1971 and 1972 advertising campaigns?

• Develop an internally consistent strategy for the 1973 fresh lemon advertising campaign

Du Darfst (A) (To be presented during session 6)


• Is this a good new product idea? Should it be launched as an entire line or should individual items be launched in a sequence?

• What basic differentiation/positioning themes would you apply? Analyse advantages and risks of your choices.

• Should the product line be advertised as a whole, or as individual items?

• Is the proposed advertising testing pertinent? Should copy testing be used to arrive at a positioning decision?

Other Activities

• Hand in your first written submission no later than session-5

Session 7 : The Advertising Brief (Presentations)


• Relating market situation and company position

• Relating Advertising Objectives to Marketing decisions

• Setting Communication and Advertising Objectives

• Debating Budgetary Allocations

Session 8-11 : Message Execution – Creative Strategy


• Copy and Layout Strategy

• Creative Execution

• Various Creative Styles and Their Evolution

• Rational and Emotional Approaches


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• Themes and Appeals in Advertising

• Creative Judgement

• Continuity in Promotional Efforts


• Wells, Moriarty & Burnett: Chap. 12, 13 & 14

Case Preparation

Nishan Jams (To be presented during session 9)


• What is the situation for Jams and bread-spreads market as of 1993? What has prompted Green Foods to take action on Nishan? Is the action delayed?

• Compare the chosen message strategy against the choices in Exhibit-1.

• Which of the three alternative message executions would you choose to run? Why?

• How do you expect the competitors to react to Nishan’s advertising?

Creative Advertising: Sunday Communications Ltd. (To be presented during session 10)


• Identify the sources of Sunday’s brand equity and suggest ways in which it can be leveraged long term.

• Assess the strength, favourability and uniqueness of Sunday’s brand associations relative to competitors.

• Identify the strategic intention of each Sunday campaign (i.e., brand awareness, highlight brand attributes, brand positioning, etc.)

Mountain Dew: Selecting New Creative (To be presented during session 11)


• What is the situation for Mountain Dew as of 1999? What are the decision issues?

• What are the generic objectives in Brand communication? How do they apply to Mountain Dew?

• Articulate the filters in advertising effects and appraise the creative choices presented by the agency BBDO.

• What is your recommendation for the choice of the creative and why?

Other Activities

• Hand in your second written submission no later than session-10


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Session 12-14 : Media Strategy


• Media Vehicles and Their Characteristics

• Use of Media

• Media Planning

• Media Maths

• Multi-Media Option Mix Planning

• Scheduling Considerations

• Emerging Media



Case Preparation

The Legwear Campaign (To be presented during session 13)


• Appraise the launch strategy for Legwear and the promotional decisions.

• Make an assessment of the media class and scheduling decisions.

• What synergies are needed between advertising decisions and other elements of marketing-mix?

• Can some research help you take better decisions?

Other Activities

• Hand in your third written submission no later than session-14

Session 15 : Budgeting for Advertising Campaigns


• Setting Advertising Appropriations

• Budget Making

• Methods of Setting Budgets

• Assembling the Advertising Campaigns


• Wells, Moriarty & Burnett: Chap. 11


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Case Preparation

Pacific Telephone & Telegraph Company (To be presented during session 15)


• What is the experience in Fresno? Appraise the three research studies of 1972.

• Comment on the Fresno research design. What are its limitations?

• What is the economics of Directory Assistance service?

• What marketing decisions would you recommend to PT&T? How much should PT&T spend on advertising?

Session 16 : Advertising Effectiveness Research


• Advertising Effects

• Advertising Research

• Effectiveness Research

• Copy Research

• Media Research

• Pre and Post Placement Research



Case Preparation

Union Carbide: Chandi Ki Minar (To be presented during session 16)


• What is expected of Advertising in this situation?

• How is the campaign taking care of these expectations?

• How do we know that this will work? What is to be tested?

• How do we connect advertising objectives to advertising testing?

Other Activities

• Hand in your Final Project Report no later than session-16

Session 17-18 : Integration of Marketing Communications


• Direct Response Communications – Database Marketing

• Sales Promotions, Events and Sponsorships

• Public Relations


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• Special Advertising situations – Retail Advertising, B2B Advertising, Nonprofit or Social Advertising

• Advertising Industry in India, Agency Organisation, Accreditation of Ad. Agencies

• Choosing an agency-Client-Agency Relationships



Case Preparation

Mary Kay Cosmetics, Inc. (To be presented during session 18)


• What are MKC's key strengths?

• What are the strengths of the MKC sales organization? How can sales productivity be improved further?

• What external and internal communications vehicles are used by MKC? What are their roles?

• Evaluate the contribution to future sales growth which might be made by (a) the customer retention program, (b) direct-mail programs, (c) national advertising and (d) new product activity.

Session 19-20 : Learning from Group Projects (Final Presentations)

Outcomes: Learning from

• Ten different cases of real advertising situations in India

• Ten different contemporary campaign development processes

• Ten creative campaigns

• Ten media plans

• Ten peer-level reviews

NOTE: Since this course is run in three concurrent sections- participants from other sections are welcome to attend presentations in any section over and above their own section. This will result is a multiplier of learning.

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Documents

Advertising Management PGPM 09-11