5 Chapter Five

Advertising Management

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 The Richards Group

5
• Largest US independent agency
• 650 marketing professionals
• $1 billion annual billings
• Stan Richards
• “We sell the truth”
• Prefers hiring new college graduates
• Co-mingle disciplines
• Interdisciplinary villages
• When hired – strategic process
• Success stories
• Chick-fil-A
• Motel 6
• Bridgestone – Super Bowl
• The Home Depot

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 Advertising Management
5 Chapter Objectives

1. What are the essential ingredients in advertising

campaign management, including the role of advertising?
2. When should a company employee an external
advertising agency rather than completing the work in-
house?
3. How do companies choose advertising agencies?
4. What roles are played within advertising agencies and
client companies?

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 Advertising Management
5 Chapter Objectives

5. What steps are completed as part of advertising

campaign management?
6. What are the primary goals of advertising?
7. What are the key elements of an advertising budget?
8. What are the issues in the media-selection process?
9. How does a creative brief facilitate effective advertising?

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 Advertising Management

5 •
Chapter Overview

Advertising management
• Choosing an advertising agency
• Roles of advertising personnel
• Advertising campaign management
• Advertising research
• Advertising goals
• Advertising Budget
• The Creative Brief

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 Advertising Terms
• Message theme
• Leverage point
• Appeal
• Executional framework

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FIGURE 5.2
Advertising Design Overview

Advertising Strategy Media Selection

Chapter 5 Chapter 8

Advertising
Design

Message Strategy Executional Framework

Chapter 7 Chapter 7
Appeals
Chapter 6

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 Overview
Advertising Management

1. Review role of advertising in IMC effort

2. Select in-house or external advertising agency
3. Develop advertising campaign management strategy
4. Complete creative brief

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Advertising and IMC Process
• Advertising still major component
• Role of advertising varies
• Business-to-business sector
• Supporting role
• Consumer sector
• Primary communication vehicle

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FIGURE 5.4
Advantages of In-House versus Outside Agency

Advantages of In-House Advantages of Outside Agency

• Lower costs • Reduce costs
• Consistent brand message • Greater expertise
• Better understanding of • Outsider’s perspective
product and mission • Access to top talent
• Faster ad production
• Works closer with CEO
• Lower turnover rate in the
creative team

Source: Adapted from Rupal Parekh, “Thinking of Pulling a CareerBuilder? Pros and Cons of Bringing an Account In-House,”
Advertising Age, http://adage.com/print?article_id136701, May 18, 2009

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Budget Allocation Considerations
In-House vs. Advertising Agency

Size of account should match size of agency

75-15-10 Rule
75% - Media buys
15% - Creative work (agency)
10% - Ad production

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 Crowd Sourcing
In-House vs. Advertising Agency
• New alternative
• Outsource creative
• Doritos
• Harley Davidson
• Overall cost not lower
• Advantages
• Consumers involved
• Generate buzz

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External Advertising Agencies
Boutique Full-Service
• Advertising agencies
• Media service companies
• Direct marketing agencies
• Consumer and trade promotion specialists
• Online and digital agencies
• Social media agencies
• Public relations agencies

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FIGURE 5.6
Steps in Selecting an Advertising Agency

1. Set goals
2. Select process and criteria
3. Screen initial list of applicants
4. Reduce list to two or three viable agencies
5. Request creative pitch

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Choosing an Agency
Goal Setting
• Set before contacting agencies
• Provides direction
• Reduces biases

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FIGURE 5.7
Evaluation Criteria in Choosing an Ad Agency

• Size of the agency

• Relevant experience of the agency
• Conflicts of interest
• Creative reputation and capabilities
• Production capabilities
• Media purchasing capabilities
• Other services available
• Client retention rates
• Personal chemistry

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 Creative Pitch
• 2 to 3 finalists
• Formal presentation  shootout
• Specific problem/situation
• Expensive for agencies

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 Key Advertising Personnel
Client Client Client
Marketing Manager Marketing Manager Marketing Manager

Account Account
Executive Planner
Creative Traffic Media
Director Manager Buyers
&
Planners
Creative Creative Creative Creative

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 Advertising
• Advertising is any paid form of non-personal
presentation of ideas, goods and services by an
identified sponsor
By Philip Kotler
• Advertising consists of all the activities involved
in presenting to a group a non personal, oral or
visual, openly sponsor identified message
regarding a product, service or idea. This
message, called an advertisement, is
disseminated through one or more media and is
paid by the identified sponsor.
By W.J. Stanton
 Elements of Advertising

• Paid form
• Non Personal Presentation
• Ideas, goods or services
• An identified sponsor
• Inform or persuade
Objectives of an Advertising
Programme
• To increase support
• To stimulate sales
• To retain the loyalty
• To project an image
• To communicate with consumerss
What advertising is – activities
included
• It is commercial or non commercial
communications
• The communication is speedy
• It is a mass communication
• The cost per person in low
• Advertising is communication through
identified sponsor
• It is non personal communication
Advertising planning frame work
Advertising Objectives can be classified as to whether their aim is:

To persuade: Most
advertisements are made
with the aim of persuasion.

To remind: Such
advertisements are highly
effective in the maturity
stage of the product. The
aim is to keep the consumer
thinking about the product.

To inform: This aim of

Advertising is generally true
during the pioneering stage
of a product category, where
the objective is building a
primary demand.
 There are five specific factors to be
considered when setting the
Advertising budget.

Market Share
Stage in PLC and Consumer
base

Competition Advertising
and clutter frequency

Product
substitutability
 Message generation can be
done in the following ways:
• Inductive: By talking to consumers, dealers, experts and competitors.
Consumers are the major source of good ideas. Their feeling about the
product, its strengths, and weaknesses gives enough information that
could aid the Message generation process.

• Deductive: John C. Meloney proposed a framework for generating

Advertising Messages. According to him, a buyer expects four types of
rewards from a product:
• Rational
• Sensory
• Social
• Ego Satisfaction.
• Buyers might visualize these rewards from:
• Results-of-use Experience
• Product-in-use Experience
• Incidental-to-use Experience
 Message evaluation and
selection

• The advertiser needs to evaluate the

alternative messages. A good ad normally
focuses on one core selling proposition.
• Messages can be rated on desirability,
exclusiveness and believability. The message
must first say something desirable or
interesting about the product.
• The message must also say something
exclusive or distinct that does not apply to
every brand in the product category. Above
all, the message must be believable or
provable.
 Message execution.
• The message impact depends not only
upon what is said but also on how it is
said. Some ads aim for rational
positioning and others for emotional
positioning.
• While executing a message the style,
tone, words, and format for executing
the message should be kept in mind.
 Style. Any message can be presented in any of the following
different execution styles, or a combination of them :

• Slice of life: Shows one or more persons using the product in a normal
setting.
• Lifestyle: Emphasizes how a product fits in with a lifestyle.
• Fantasy: Creates a fantasy around the product or its use.
• Mood or image: Evokes a mood or image around the product, such as
beauty, love, or serenity. No claim is made about the product except through
suggestion.
• Musical: Uses background music or shows one or more persons or cartoon
characters singing a song involving the product.
• Personality symbol: Creates a character that personifies the product. The
character might be animated
• Technical expertise: Shows the company expertise, experience, and pride
in making the product.
• Scientific evidence: Presents survey or scientific evidence that the brand is
preferred over or outperforms other brands. This style is common in the
over-the-counter drug category.
• Testimonial evidence: This features a highly credible, likable, or expert
source endorsing the product. It could be a celebrity or ordinary people
saying how much they like the product.
• Tone:The communicator must also choose an appropriate tone for the ad.
Media Selection
 • This is an excellent idea in making a
print ad interactive. With the inverted
text and visual, they make you
engage with the paper and turn it
around. When you do, you spend a
few more seconds with an ad that you
may not have noticed otherwise.
When something seems out of order
(the way most of us notice typos),
that predictably directs our attention
towards what is out of order... and you
ponder on it more than necessary :)
• In this ad's case, this little narrative
gimmick is used at the service of the
product and not frivolously. This is a
demonstration of how filter coffee is
mixed in Tamil Nadu! So, what could
otherwise be dismissed as a gimmick
is really not one, but far more clever.
• Also, the pic in the bottom is the
*actual* package design! When you
see it in a shop, you'd instantly
recognize
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Education, 5-31
Evaluating the effectiveness of the Advertisement Program is
very important as it helps prevent further wastage of money
and helps make corrections that are important for further
advertisement campaigns. Researching the effectiveness of
the advertisement is the most used method of evaluating the
effectiveness of the Advertisement Program. Research can be
in the form of:
• Communication-Effect Research
• Sales-Effect Research
 There are two ways of
measuring advertising
effectives.
Post-testing
Pre-testing
• It is the assessment of an advertisements
advertisement for effectiveness
its effectiveness
after it
before
has beenit isused.
actually
It isused.
done Itinistwo
doneways
through
• Unaided
Concept recall
testing––
a research
how welltechnique
the concept
thatofasks
the advertisement
how much of
is. This
an ad a isperson
be doneremembers
by takingduring
expertaopinion
specificonperiod
the concept
of time of
• the
Aidedad.recall – a research technique that uses clues to prompt
• answers
Test commercials
from people – test
about
trialads
of the
they
advertisement
might have seen to the sample
of people
• Finished testing
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 Advertising Appeal
The intensity
number ofand
motivated
the nature
behavior
of basic
needs Need
• Central
•• Peripheral
Physiological needs
Needs
• Safety Needs
• Affiliation Needs
• Esteem Needs
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The Buying Motives which are
helpful in understanding why people
buy: • Succorance: Salon
• Achievement: • Sexuality: Cologne
Independence: Credit • Stimulation: sporting
Cards Goods, Health etc.
• Exhibition: Hero by • Diversion: Sporting
Samsung goods
• Recognition: times • Novelty: Books, travel
• Dominance: Hit, Beat • Understanding: self
• Affiliation: Army improvement courses
• Nurturance: Pedigree • Consistency: expert,
colin
• Security: Mutual fund
Lic
 Advertising Appeal

Rational Direct

Emotional Indirect

Product Oriented
Positive Emotional
Appeal and
Appeal
Consumer
Negative Appeal
Oriented Appeal

Moral
Rational Appeal
 Rational Appeal
• High Quality Appeal
• Low Price appeal
• Long Life Appeal
• Performance Appeal
• Ease to use
• Resale value oriented
• Economy in operating Expenses
 Emotional Appeals
• Positive Emotional
Negative EmotionalAppeals
Appeals
• • Form To
Desire of loss
be Different
• Desire to conform
• Desire to attract
• Desire for prestige
• Love
• Humour
• Joy
 Moral Appeals
• Indirect
Direct Advertising
AdvertisingAppeal
Appeal
• Are
Product
those
oriented
appeals that clearly communicate with the
consumers about aappeals
• Feature oriented given need followed by a message
which
• Useextols theappeals
oriented advertised brand which satisfy need
• Product comparison
Consumer Oriented
• Attitude oriented appeals
• Significant group oriented appeal
• Image oriented appeal
• Sub conscious oriented appeal
 Types of Advertisement

• Brand Advertisement
Out-Door Advertisement
• In-DoorAdvertisement
Covert Advertisement
• Non-ProductAdvertisement
Infomercials Advertisement
• Radio Advertisement
Celebrities Advertisement
• T.V Commercial
Online advertising
• National Advertisement
Surrogate Advertising
• International
Broadcast advertising
Advertisement
• Retail Advertisement
Public Service Advertising
• Classified
Local Advertisement
Advertisement
• Local Advertisement
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For over a hundred and twenty five years Godrej has led the way in
India on being Good and Green. You only have to visit Vikhroli to see
what I mean.
One of the proudest moments for me last year was when GCPL
made it to the world’s most prestigious sustainability lists - The Dow
Jones Sustainability Index (@Gayatri Divecha). One of three FMCG
companies globally and the only one from India. A few weeks ago,
EYEBETES, a non-profit organization dedicated to solving eye
complications due to diabetes, came to us for some advice. Its
founder @Dr Nishant Kumar said that Diabetes was the largest
cause of preventable blindness and early detection was key. He was
setting up eye camps all over the Kumbh and was wondering if we
could help build awareness.
Godrej Creative Lab (our in-house advertising team) led by
Swati Bhattacharya Shalini Avadhani and Gaurav Kumar swung into
action. Kumbh is also a mela of big brands and big spends. To get
people’s attention on a shoestring budget was a challenge. But in
that challenge, the team found an opportunity: to seek partnership
with the Naga Sadhus. After all, they’re the ones who grab the most
eyeballs at the Kumbh. Their naked backs carried an eye test. If you
can’t see the letters on their body clearly, you can get a free
diabetes and eye check up©2014
Copyright at the camp.
by Pearson For the
Education, Inc. Allfirst
rights time ever, the
reserved. 5-45
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 Retail Advertisement

• Emphasizes the
specific retail
outlet as the
place to buy a
specific range of
brand. It can be
local store
advertising in
local newspaper.
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Non-Product Advertisement
• This kind of advertisement is advertised from
political parties trade fraternal and social
group for the purposes of safeguard
ideologies, social betterment and institution.
Classified advertisement
• Is a product or services advertising that
appears in specific section of newspaper
under the heading classifying the product or
service being offered.
•
Non-Product Advertisement
• This kind of advertisement is advertised from
political parties trade fraternal and social
group for the purposes of safeguard
ideologies, social betterment and institution.
Classified advertisement
• Is a product or services advertising that
appears in specific section of newspaper
under the heading classifying the product or
service being offered.
•
Whole body deodorants' started making news last year, but since January 2025, there
are 4 big campaigns by 4 Unilever brands, all selling whole body deos in assorted ways.
Observing the ways they all advertise their products differently is very, very interesting!

1. Early January 2025: Dove, for women. The pitch (agency: Ogilvy) is "72h odor control
& skin care for your neck, your back… and everywhere else". The slogan is 'Let Your
Body Body'. Whatever. 🤷 Very templatized ad.

2. End of January 2025: Sure/Rexona/Degree/Shield (the same brand has different names
in different countries). Thanks to the agency AMV BBDO, this campaign has a better idea
- to call out nicknames and colloquial names to assorted body parts, and present Sure's
whole body deos as being perfect for all those parts, all layered into catchy techno
music.

3. Mid-February 2025: Dove Men+Care. Even better idea, by the agency Rethink New
York! A clever word interplay using 'Everywhere' and followed by 'here' and 'there'. The
ad features NFL player Marshawn Lynch who sprays Dove's whole body deo everywhere
(on his body, including 'down under') and the ad shows people going everywhere.

4. Mid-February 2025: LYNX/AXE. This is THE most bizarre among the four (agency: LOLA
MullenLowe)! It frames the whole body deo as not for yourself, but for external
validation, just like AXE deos (scrawny guy sprays it on himself, becomes women
magnet). A guy getting hooked to an opponent's feet in boxing!

While Dove women and men variants, and Sure/Rexona/Degree/Shield sell the whole
body deo as a product for the user to feel good/confident, LYNX/AXE sells it as
something to attract people even while spraying it in their private parts or feet. I guess
LYNX/AXE consistently sticks to its trope no matter what the product or which body part
it is meant for.

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 DAGMAR Approach
• Defining Advertising Goals for
measured Results is a model devised
by Russell H Colley in 1961
• Awareness
• Comprehension
• Conviction
• Action
• Well-defined target audience
benchmark and determination of degree
of change sought
• Pre- determined time period
 Limitations of DAGMAR
• No consideration for atypical response
hierarchies
• No recognition of sales as an
advertising goal
• Lack of practicality and high costs
• Inhibits creativit
Role of Quality Communications
• Survey of senior executives
• 30% of staff’s time wasted
• 75% of agencies go through
significant changes in direction
• Agencies deal with multiple
people
• Clients want good value,
results
• Stewardship reports

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Copyright ©2014 by Pearson Education, Inc. All rights reserved. 5-58
 Advertising Campaign
Management

1. Conduct and review advertising research

2. Establish advertising objectives
3. Review advertising budget
4. Select media
5. Prepare creative brief

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 Advertising Research
• Understand customers
• Purchase benefits, not attributes
• Product-specific research
• Key selling points
• Desirable features
• Consumer-oriented research
• Context of product use
• Anthropological approach
• Sociological analysis
• Psychological motives
• Focus groups

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FIGURE 5.9
Advertising Goals

• To build brand image

• To inform
• To persuade
• To support other marketing efforts
• To encourage action

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 Build Brand Awareness
Advertising Goals

• Brand image begins with awareness

• Consumers recognize brand
• Business-to-business
• Especially important in modified rebuy situations
• Successful brands possess
• Top-of-mind
• Top choice
• Brand equity leads to top-of-mind & top choice

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Provide Information
Advertising Goals

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 Persuasion
Advertising Goals

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 Support Marketing Efforts
Advertising Goals

• Consumer promotions
• Retailers
• Special sales
• Promotional campaign

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 Encouraging Action
Advertising Goals
• Behavioral goals
• Encourage some type of action
• Inquiry
• Access Web site
• Visit retail outlet
• Send e-mail or telephone
• Business-to-business

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The Advertising Budget
Manner of Distribution
• Pulsating schedule
• Bursts of intensity
• Flighting schedule
• Spending at select times
• Continuous schedule
• Keep brand before consumers

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 Media Selection
• Media-usage habits of target market
• Audience characteristics of media
• Business-to-business media
• Earlier involvement of media companies

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FIGURE 5. 10
The Creative Brief

• The objective
• The target audience
• The message theme
• The support
• The constraints

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 The Objective

An advertisement for Sub-Zero designed to enhance the brand’s image.

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 The Target
Audience

The target market for

this ad is females, 13-30,
who enjoy sports and
have an active life style.

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 The Message
Theme
The message theme of
this milk advertisement
was that milk will provide
calcium. The calcium will
provide the customer
with benefit of strong
bones.

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 The Message Theme
• Unique selling point
• “Left brain” advertisement
• Logical, rational side of brain
• Manages numbers, letters, words, concepts
• Use rational appeal
• “Right-brain” advertisement
• Emotional side of brain
• Manages abstract ideas, images, feelings
• Use emotional appeal

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 The Support
The support claims in this ad
MicroThins are:

• 30% thinner
• 40% lighter
• 4 times more scratch resistant
• 10 times more impact resistant
• 99.9% UV protection
• Anti-reflective

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 The Constraints
• Legal and mandatory restrictions
• Constraints
• Disclaimers

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 Del Monte
Advertisement

What is the Creative Brief?

• The objective
• The target audience
• The message theme
• The support
• The constraints

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 Creative Brief
Del Monte
• The Objective – increase awareness of the smaller-size cans
with pull-top lid
• Target Audience – senior citizens, especially those who live
alone and suffer from arthritis
• Message Theme – the new cans contain a smaller portion and
are easier to open
• Support – 30 cent introductory coupon to encourage usage
• Constraints – copyright logo, toll free number, Web site address,
legal requirements of a coupon, and what is meant by a small
serving

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International Implications
• 62% of advertising budgets spent outside of U.S.
• Two major differences
• Process of agency selection
• Preparation of international advertising campaigns
• Preplanning research varies
• Understanding of languages and cultures
• Media selection varies

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FIGURE 5. 11
Non-U.S. Ad Budgets and Sales Revenues for Major Corporations

90.0%
85.6%
83.5%
80.0% 76.7%
74.9%

70.0%
65.7% 65.4%
60.7%
60.0% 58.7% 58.7% 58.8% 58.6%

50.0% 48.8%

40.0%

30.0%

20.0%

10.0%

0.0%
Coca-Cola Colgate-Palmolive Ford Mattel McDonald's Procter & Gamble

Ad Budget Revenue

Source: Adapted from Laurel Wentz and Bradley Johnson, “Top 100 Global Advertisers Heap Their Spending Abroad,” Advertising Age,
http://adage.com/print?article_id=140723, November 30, 2009.

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ClowBaack – Integrated Campaigns in Action

Ouachita Independent Bank

(Part 5)

Selection of Advertising Agency

Newcomer Morris and Young
 Local agency
 Size matches with firm
 Relevant experience with financial institutions
 No conflict of interest
 Creative reputation – winning of awards
 Capability to product multi-media advertisements
 Good chemistry

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ClowBaack – Integrated Campaigns in Action

Ouachita Independent Bank

(Part 5)

Advertising Goal
Newcomer Morris and Young

 To persuade

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ClowBaack – Integrated Campaigns in Action

Ouachita Independent Bank

(Part 5)

Creative Brief
Newcomer Morris and Young

• The Objective – to persuade

• Target Audience – Thinkers, achievers, believers
(VALS2)
• Message Theme – local bank, local trust
• Support – local bank with secure history and strong
financial position.
• Constraints – FDIC logo and insurance statement,
OIB logo, and website URL on all ads.

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Integrated Campaigns in Action

Progressive
Bank

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