Journalism 2000 Dr Broyles Study Guide for Final Exam This is a compilation of all the notes taken this semester The Modern Marketplace aka The New Advertising Apple s 1984 Apple s introduction for the Macintosh had a lot of prep time They had a lot of time to decide how they were going to introduce this product It was a superbowl spot it was in a ton of newspapers Apple CHANGED advertising because everything picked up speed before this we just had type writers Financially driven agency mergers We went from 18 big agencies down to eight BIG companies Saatchi Saatchi o British agency P E Rations o P is price E is earnings Divide price by earnings and you get the value of the stock This lead to large agencies buying smaller agencies in order to stay competitive this lead to large holding companies o IPG o WPP Wire Plastic Products o Omnicom FIND WHO MERGED TOGETHER TO MAKE THIS COMPANY o Publicis French holding company o July 2013 Omnicom and Publicis came together and made a HUGE holding company It is now the world s biggest holding company And on the Client Side The people who worked at the agency were the experts but that started to change with P G P G became the training ground for brand managers o P G Cincinnati Ohio o They would train people so well that other companies would try and hire them creative We started seeing a shift in power and that changed full service agencies o They used to do account managing research strategy media and o Suddenly media agencies broke off and suddenly the power shifted o Other things started to split off causing unbundling There are still a lot of agencies where they are all together but it is changing And on the agency side Compensation changed Commission system born out of the magazine industry A publisher in the 1800s started a very big national magazines and magazines were basically the only place for national advertising His advertising helped him increase circulation How does advertising increase circulation It increases your income when people purchase ads and reduces the cost of subscription There is value in advertising we learn a lot from looking at ads things are being sold and things are cheaper somewhere The commission system 10 was discounted for them created content The agency created the ads and reduced the ad by 10 and the agency got to keep that IF they paid up front you got an extra 5 which is were the 15 ad came from We moved from the commission system to a fees based system Regional Creative Renaissance The creative revolution started in the 1960s In the 70 s and 80 s there were a lot of regional creative markerts o Ex Minneapolis Why Minneapolis 3M is one of the reasons General Mills is up there it s close to all the grain markets best buy target Jack Daniel s Barnes Noble Monster Wall of Post It notes o Ex Boston o Ex Austin Dallas o Ex Dallas Southwest Airlines Chick fil A Teacher s had a problem with their Eat Mor Chikin ad Why would you have a problem with this They are COWS o Ex Portland Nike o Ex SanFrancisco o Ex Los Angeles Apple o Ex Miami Jimmy Dean Got Milk Netflix Nintendo Mini Cooper The point is there are so many great places to go A little bitty bit of marketing There are a lot of things that go into marketing Packaged Goods Durable Goods Packaged Goods are goods that are packaged Cereal Candy Coca Cola Kraft food Durable goods are creatively named they are goods that are durable Washer and Dryer Stove Refrigerator Furniture car comforter on your bed soft durable Services Things that we do for people Netflix Restaurants airplanes Ideas B2B Business to Business Don t mess with Texas This is marketed towards Texas The 4P s 1P Product o House of Pies They have pie ovens and someone has to sell them to pie places This is business to business because a company has to make a specific type of oven to sell to this specific business o Pharmaceutical companies selling to Doctors o There are a lot of products that we can advertise All the goods described above are products that can be advertised You have to give your product a benefit If a product doesn t have a benefit then you will never sell anything o Products can have brand equity and that is how important a brand is to you don t have reduced fat I will not buy peanut butter that day and will wait until I can find it Example Coke vs Pepsi Price o Margin selling price cost of good o Cheapest isn t always what you buy Ex iPhone It s not the cheapest but people still want it o Sometimes a high price will actually bring more people in Syphony that is higher priced will get more people and people tend to enjoy it better o Companies will pay for spots on the shelves so that people will see Place them Cereal is placed lower so that kids will see them Promotion o This is what we do o Trade shows sales promotions All together we call this MARCOM Marketing communications IMC Integrated marketing communications Fifth P People o Generally this is the consumer o Starbucks Barista s are good ambassadors to the brand the are basically coffee magicians Starbucks gives benefits to part time workers and tuition waivers which means they really know who is working for them primarily young people who need money Putting the P s Together When you put all of these things together you get what s called a marketing mix Strategy Marketing Department Director of Marketing aka CMO Advertising Director In charge of advertising for the brand The bigger the company the more important the job Category Manager Tends to be someone older probably thirties and is charge of nurturing and growing the brand Brand Manager In charge of managing brands Their respsonsibility involves a lot of the 4 P s Brand Assistant Works closely with the brand manager Sales Promotion Specialist Market Research They are in charge of figuring out the consumer s attitude how the brand is used who is using them etc The Marketing Process Implementation Planning Evaluation It s as easy as Pie Advertising Agencies Big Ideas That s what advertising is all about David Ogilvy Types of Agencies Independent Agencies o Not under a bigger agency National Agencies o Handle national clients Regional and Local Agencies o Handle regional clients Specialized or Niche o Ex Hispanic agencies African American Agencies o Agencies who specialize in something Digital Agencies Creative Boutiques o We are moving more and more towards these types of agencies o These are agencies that focus on the digital side o These are places that have spun