Rationale for Choosing a New Advertising Agency - Essay Example

? Research Report Find a company who has switched advertising agencies recently (either switched from using an in-house agency to using an outsideagency, or switching between two outside agencies). a. Conduct secondary research to determine the reasons why the company decided to change agencies and their rationale for choosing their new agency. Discuss the implications of your findings with respect to client-agency relationships. The criteria used by firms in order to decide on the marketer who will be involved in the promotion of their products/ services can be differentiated across firms with different operational and structural characteristics. Moreover, in case that an agreement is developed between a firm and an advertising agency, this agreement needs to be aligned with the firm’s culture and aims. Otherwise, the chances for the survival of this agreement would be limited. In the case of General Motors, another aspect of the relationship between the firm and its advertising agency has been given: the above relationship reflects specific interests; if these interests are changed, then the cooperation between the above parties may be ended. In this context, General Motors had to terminate its cooperation with the advertising agency Publicis Groupe SA., almost a month after the above agency replaced Campbell-Ewald (an agency which had the responsibility for the advertising campaigns of Chevrolet since 1919). Indeed, in May 2010, General Motors switched to Goodby, Silverstein & Partners (part of the Omnicom Group) from Publicis Groupe S.A. – a cooperation that lasted – as noted above – for, just, about a month. The decision of GM to switch to Publicis Groupe SA will not particularly analyzed – since it was for an agreement that last for about a month. Rather the reasons for the termination of the firm’s cooperation with Campbell-Ewald – a cooperation, which started in 1919 – and for the development of an agreement with Omnicom Group need to be further analyzed. In accordance with Krisher (2010) the managers of GM did not give particular explanations for their decision to terminate their cooperation with Campbell-Ewald; on the other hand, the managers in GM had noted that there were problems in the performance of Campbell-Ewald – especially regarding ‘advertising and marketing’ (Krisher 2010). In the past, the above agency had significantly supported the expansion of Chevrolet across USA through the well-known ads of ‘See the USA in your Chevrolet’ (Krisher 2010), an ad of 1950s and ‘Like a Rock’ (Krisher 2010) in 1990s. It is suggested that GM should reconsider its decision to change its agency, taking into consideration the success achieved for the firm in the past through the ads of Campbell-Ewald. On the other hand, in May 2010, GM changed its marketing director; the new marketing director of the firm, J. Ewanick, had previously worked in Hyundai; there he managed to achieve a significant increase of the firm’s sales through the Goodby, Silverstein & Partners (Woodall 2010); the first target of J. Ewanick as the marketing director of GM has been the change of the firm’s traditional marketing strategy – which has been characterized as too conservative (Woodall 2010); the switch in the firm’s agency – from Publicis Groupe S.A to Goodby, Silverstein & Partners – should be regarded as part of this effort (Elliott 2010). b. Find examples of advertising and other promotional programs that were developed by the old agency and examples of ads developed by the new agency. Do you think the advertising campaign and messages being developed by the new agency are better and/or more appropriate for the company than those of the old agency? Why or why not? The effectiveness of the two agencies, Goodby, Silverstein & Partners (current agency of GM, from May 2010 onwards) and Campbell-Ewald (agency of GM from 1919 up to April 2010) would be examined by referring to examples of their advertising practices. The examination of the advertising practices of the two agencies – through their work – has led to the following assumptions: a) Campbell-Ewald follows a more conservative approach in regard to marketing; traditional themes are chosen for attracting the public to a particular product/ service (Images 1 & 2); in the case of GM also, a conservative approach has been used for presenting the firm’s products to the public (Image 3); on the other hand, Goodby, Silverstein & Partners promote innovation in their advertising projects; this fact is made clear in the firm’s advertisement for General Electric – Image 4; also the ads developed by the firm for Sprint (Image 5) and GE – Television (Image 6) are also indicative of the innovative style of expression that characterizes the advertisements of Goodby, Silverstein & Partners, b) referring to the case studies mentioned above, it would be argued that the ads of Goodby, Silverstein & Partners address people of all ages, while the ads of Campbell-Ewald are expected to be most preferred by people over 40s – with a more conservative view on life and art – as a tool for reflecting specific values and characteristics, c) at the next level, Goodby, Silverstein & Partners would be able to respond to the marketing needs of enterprises operating in all industrial sectors; in opposition, Campbell-Ewald would be rather engaged in marketing schemes related to the promotion of specific products/ services (as also made clear in the case studies presented through the firm’s website). c. When building a campaign, there are several things that should be considered, for example, visual consistency, variability theory, repetition, etc. Which advertiser did a better job in terms of “building their campaign”? Why? Through the examination of a series of case studies/ samples of ads (as mentioned above) developed by the two competitors, it is made clear that Campbell-Ewald has not managed to reach the level of quality and innovation that characterizes the work of Goodby, Silverstein & Partners. The key advantages of the campaigns developed by the latter seem to be the visual consistency, the use of innovative themes and the lack of repetition. On the other hand, Campbell-Ewald prefers to choose themes and forms which are standardized; these themes and forms may have been proved successful in the past but they are excessively used and, thus, they are not expected to attract the interest of the customers – in opposition with the methods and the themes by Goodby, Silverstein & Partners which are intrinsic and are likely to attract the interest of the consumers revealing the capability of Goodby, Silverstein & Partners to encode the message so that it is appropriately and easily decoded by the customer. 2. Find one advertising campaign that is using a celebrity spokesperson. Find another campaign for another product (within the same product category) that does not use a celebrity. For the needs of this question, two different campaigns focusing on the promotion of mobile phones have been used: the campaign of Motorola, promoted by David Beckham, and that of Nokia; the former focuses on a particular product of the firm: the ‘aura of Beckham’, a luxury handset with exceptional quality – in terms of the materials used. On the other hand, the campaign of Nokia refers to the presentation of the firm’s new i-phone (with similar characteristics with that of Apple), as currently available in the market (see Figures 7 & 7a). a. Describe each of the campaigns in terms of target audience, creative, and media mix. Both the campaigns address teenagers and young people who are interested on the advances of technology in the particular field; of course, people of other ages could be also attracted by the advertisements involved in the promotion of the relevant products; however, young people are most expected to be attracted from these campaigns, especially from the campaign of Motorola in which the specific athlete has been involved. In terms of creative, both campaigns can be characterized as successful; however it would be noted that the campaign of Motorola is more innovative, being supported by advanced technology features and with a unique approach, in terms of the correlation made between the shape of human body and the form of the handset promoted, a correlation which is further enhanced by the phrase ‘aura of Beckham’ as the product’s name. b. For each campaign, why do you think the advertisers chose to use the source they choose? In the case of Motorola, it is clear that the advertisers chose the specific source because of the firm’s brand name; moreover, due to the uniqueness of the product promoted, the success of their campaign would be considered as secured. Similar assumptions would be made regarding the case of Nokia; in this case, a product competitive to a widely known product, the i-phone of Apple. At the next level, for the campaign of Motorola, the criteria for deciding the promotion of the firm’s product are clear: David Beckham is a well known athlete, being highly involved in campaigns and ads, with success. The firm’s marketers considered that the participation of the above athlete in the firm’s campaign would be a factor for attracting the young people – a target which has been achieved – as proved through the performance of the firm in 2009 – year when the specific campaign was launched. On the other hand, the campaign of Nokia has followed a different direction, being based on the use of advanced technology for promoting the firm’s products in the market. c. Suggest another source or appeal that might work for each of the campaigns? Explain why. Other potential sources, which could work for these campaigns would be the following ones: for the campaign in which David Beckham participates, a different approach could be used. Instead of using the above athlete, the firm’s marketers could develop a marketing campaign based on the activities of a group of person; leisure activities would be most appropriate for achieving similar results. On the other hand, the campaign of Nokia could be based on the everyday life of people in different social or economic environment; the differentiation in the conditions of life as being combined with the similarities in terms of the preferable communication channel would be a potential alternative for marketers in Nokia. d. Use the basic model of consumer decision making to analyze the purchase process a consumer might go through in purchasing the product/service (discuss the psychological processes as well). Discuss the role that advertising and other forms of promotion should play at each stage of the decision process (apply it to each campaign). Then analyze whether the campaigns are effective or ineffective in “persuading» the consumer during the consumer decision-making process? In order to identify the potential effectiveness of a marketing campaign it would be necessary not only to locate the criteria that the customers are likely to use for taking their decisions but also to explain the importance of these criteria for the particular process (Reynolds and Jerry 4). On the other hand, Kumar (2009) notes that the needs of consumers are not standardized – even within markets with stable social, political and economic conditions. In accordance with Wadman (2000) the development of the decision making process is likely to be affected by two constraints: ‘one as perceived by the customer and one as perceived by the producer’ (Wadman 146). Moreover, in the study of East, Wright and Vanhuele (2008) emphasis is given on the following trend: every individual is likely to keep certain forms/ messages in his memory; these messages are likely to influence him when having to take a decision - if they are recalled under certain circumstances. In this context, the purchase process in regard to the two campaigns presented above could be described as follows: a) in the first campaign, individuals/ potential customers would see the campaign; their interest is expected to be attracted because of the participation of the specific athlete; at the next level, the potential customers would focus on the characteristics of the product suggested; the viewers of the campaign may not decide immediately to buy the product; however, the chances that later on they will decide to proceed to this purchase are high – in the contest of semiotic analysis, i.e. because of the person used for the promotion of the specific product and the correlation made between the shape of the human body and the shape of the product promoted, b) in the second campaign, a similar process would be followed, with the following exception: the expectations of the marketers for the influence of the campaign on the viewers’ decisions in the future – regarding the purchase of this product – would be low; the specific campaign does not have a particular sign attracting the attention of the viewers; it just follows similar methodology/ theme with other campaigns developed in the particular industry. Under these terms, it would be stated that the first campaign is more effective in persuading the public – compared to the second campaign – which meets the common standards of a campaign of this type. e. Chose one of the campaign, and research PMB data for that product - based on age and gender, who is using these products the most? If you were responsible for creating a new campaign for this product, what target audience would you choose and why? The performance of the Nokia campaign focusing on the promotion of the firm’s NSeries phones can be evaluated by referring to PMB data – as gathered through appropriately customized research methods. In accordance with Roy (2010), since 2008 the distance between Nokia and its competitors has been increased – the market share of Nokia in ‘the global device market’ (Roy 2010) has been estimated to 39.5%. In accordance with the above researcher, young people are most likely to prefer the products of the above firm (Roy 2010). This fact is also verified in the study of Wickman (2000) where it is mentioned that the average age of customers of Nokia has been estimated to 32. The above phenomenon is possibly explained by the fact that the products of Nokia have been designed in such way that they are more accessible to young persons – which are more aware of the advances of technology and can use effectively the firm’s devices (Reno 2005). No particular differentiation has been identified in terms of the gender of Nokia’s customers. Under these terms, the following suggestion would be made: the firm’s campaign would be restructured trying to reach customers of all ages – not just the young people or those who are well informed on the advances of the technology in this sector. 3. Choose a print ad from a magazine. a. Evaluate the ad using the various elements of the basic communications model. Your analysis should address the following areas: a) a discussion of the source used in advertisement and why s/he is or is not appropriate for the message In order to understand the potential effectiveness of an advertising campaign message, it is necessary to examine the terms under which this message was introduced, i.e. its scope, the way it is encoded, the medium used for its promotion and the process required for its decoding. All these issues can be addressed using appropriate marketing theories. A print ad has been chosen from the magazine Home Business (of February 2011); the ad covers 2 pages of the magazine, pages 2 and 3 and involves in the development of a website using the services of the firm ‘1&1’. The advertisement is analyzed using the basic communications model aiming to show the terms under which the specific advertisement was developed, its scope, its credibility and its expected benefits. At a first level, the source used in the advertisement needs to be critically discussed; the source used in the advertisement is a firm, which operates successfully in the particular field for many years. This source is appropriate for developing such message – as the one encoding in the particular advertisement – because of the following reasons: a) ‘1&1’ has a long experience in the specific market, b) the communication options provided through the advertisement shows the level of readiness of the business to respond to the customers’ enquires. Therefore, the source of the advertisement can be appropriately used for the promotion of messages like those promoted through the particular advertisement (Copley 106). b) The way in which the message is encoded In order to understand the way in which the message in the particular advertisement is encoded it would be necessary to refer briefly to the relevant views of the literature. In accordance with Koekemoer & Bird (43) the ability of the marketer to encode a message in a particular campaign is highly depended on his ‘knowledge, emotions and experiences’ (Koekemoer & Bird 43). After the message is encoded, then its transmission to the receiver (public) needs to follow; this phase of the marketing project requires the use of an appropriate customized communications channel (Kurtz, MacKenzie & Snow 493). In the case under examination, the message has been encoded in the following way: reference is made to the advantages of this firm’s services in terms of the time and the money saved – by mentioning that the time and the money usually required for the establishment of business are likely to be significant; moreover, a photo is displayed showing the potential format of a business website – as developed by the firm promoted. The message transmitting to the public through the particular campaign highlights the following points: the firm’s customer will save time and money with no risk – since there is the trial period of 30-days – and he will acquire a business tool (business website) which will help him significantly establishing or boosting his business. c) A semiotic analysis of the message including a discussion of the object, signs or symbols used, and the interpretant The use of semiotic analysis aims to reveal the signs and symbols that can ‘result in the creation of pleasurable/ positive emotions that will be triggered when brand/ company is viewed’ (Copley 139); from a similar point of view, Dahlen, Lange and Smith (2009) note that in advertising signs and symbols are used in order to represent a series of messages; semiotic analysis refers to the encoding of these messages using specific rules and principles – personal perceptions and views are also likely to influence marketers when having to use symbols and signs for encoding specific messages. At the next level, Solomon, Bamossy, Askegaard and Hogg (2007) note that ‘semiotic analysis involves the correspondence between message elements and the meaning of signs’ (Solomon, Bamossy, Askegaard and Hogg 56). In the advertisement under examination, a computer is used for showing the characteristics/ benefits of the websites produced by the firm promoted. Through the computer, the readers can see a nicely colored website – attractive as of its structure and colors. Moreover, a well-organized background has been used – showing a potential image of the business in which such a website is employed. In accordance with the signs, symbols and colors used in the specific advertisement it is implied that the specific website could help the entrepreneur keep his business well organized; moreover, the entrepreneur himself will be more relaxed being supported by a valuable business tool – an emotion being reflected in the face of the young woman who has been shot for the needs of the particular advertisement. d) A discussion of the medium in which the ad was placed, such as the particular magazine, and why this publication was chosen by the advertiser The medium in which the ad was placed can be characterized as quite appropriate. In fact, the specific magazine aims to support people in order to develop their own business at home; the specific advertisement serves the specific need offering information on the development of a business website – a prerequisite for those enterprises which do not have a physical existence, such as the home-based businesses. Therefore, it would be stated that the decision of the marketers to choose the specific magazine for promoting the services of the firm ‘1&1’, has been fully justified. On the other hand, the publication of the ad in the particular magazine instead of the Internet would be criticized as follows: the specific firm is already extensively published in the Internet; probably the advertisers thought that they should also promote the firm to those who are not familiar with the Internet and who are interested in entering a business sector – these people would be likely to read business – related magazines seeking for ways to secure their investment on a particular business activity. On the other hand, people who have already established their business in the local market would be also likely to read the specific magazine – for identifying methods for improving the image of their business in the market. e) The process by which the message might be received or decoded by the target audience. What type of feedback that the advertiser might use to evaluate the effectiveness of the message. Based on design considerations discussed in the text and in class, what changes would you recommend to improve the communication effectiveness of the ad? In accordance with Ashok (2009) in case that the advertiser is interested in attracting the public by colored ads, then the press – in its various forms – is likely to be used for the promotion of a specific product/ service. Such case seems to exist in the advertisement under examination. On the other hand, Kurtz, MacKenzie and Snow note that there are two major means available to advertisers for measuring the effectiveness of advertisements: the medium research – focusing on the identification of the level at which the medium through which the advertisement was presented to the public managed to deliver the message encoded in the particular advertisement; moreover, the message research refers to the views of the public regarding the level at which a specific advertisement delivered its message to the public (Kurtz, MacKenzie and Snow 522). From the same point of view, Trehan and Trehan (2010) noted that the assessment of the effectiveness of advertisement helps the advertiser in order to choose the appropriate medium and schedule of publicity/ advertising of a particular advertisement/ campaign. In the case under examination the target audience could decode the message by observing the images included; also by reading the pieces of text highlighted – where the key part of the message are included. Advertisers could use the calls made by the customers, or the visits to the firm’s website – as tracked by the relevant systems – in order to estimate the effectiveness of the particular advertisement. The ad under examination would be probably more effective if it would include more details on the technical characteristics of the website; also the potential performance of the system – in practice – would be explained to the public, even briefly, giving the chance to the public to understand the actual advantages of the proposed system/ business tools towards the similar products/ services of other firms operating in the same sector. Works Cited Ashok, Jain. Principles of Marketing. New Delhi: FK Publications, 2009 Buttle, Francis. Relationship marketing: theory and practice. 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Appendices Image 1 - Campbell-Ewald, advertisement for the USA Navy Image 2 - Campbell-Ewald, Ad Council campaign for the National Responsible Fatherhood Clearinghouse (NRFC) Image 3 - Campbell-Ewald, ad on GM Image 4 - Goodby, Silverstein & Partners, ad for General Electric, the Smart Grid Image 5 - Goodby, Silverstein & Partners, ad for Sprint Image 6 - Goodby, Silverstein & Partners, ad for GE Television Image 7 – Nokia, advertisement on NSeries(source: http://2d-code.co.uk/images/nokia-n-gage-advertisement.jpg) Image 7a – from Nokia’s campaign on Nseries (Source: http://www.adbrandetc.com/2009/08/10/nokia-nseries-campaign/) Read More