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Cases in Advertising and Promotion Management

Quelch J., Farris P. Cases in Advertising and Promotion Management. – Richard D. Irwin Inc., 1991. – 907 р.

Preface

This book is designed to provide students of advertising and promotion management an opportunity to gain "real world" experience through the analysis of case studies. The book has been designed primarily for courses in advertising management, promotion management, and marketing communications. The cases are almost all written from the perspective of an advertising manager, product manager, or marketing manager addressing one or more problems in advertising arid promotion management. The companies and organizations represented include manufacturers of consumer package goods and durables, industrial products manufacturers, retailers and other service marketers, and nonprofit institutions. All of the cases have been successfully classroom tested and many have also been taught in executive development programs.

In addition to providing a thorough coverage of advertising issues, special attention is paid to the management of sales promotion programs which are becoming an increasingly important component of many marketing budgets. Other communications approaches are also addressed–including direct mail, telemarketing, and point-of-purchase merchandising. The value of this integrated collection of case studies lies in the richness and diversity of the management problems which they collectively present.

Learning with the case method

The principal objective of the case study method is to develop student skills to problem solving and decision making. In studying a case, the reader's task is to assume the role of the decision maker and consider all of the information avail able to the decision maker at the time of the case event. Alternative solutions it» the problem must be evaluated, and finally, a recommended course of action must be decided upon.

The quality of a case analysis as a surrogate for experience depends on the same factors as the quality of an experience in the real world. The manager who is not fully involved in a decision is unlikely to learn much from it. Even worse, the manager may misunderstand the situation and justify a decision for the wrong reasons. Cases are much the same. The student must review the case thoroughly to derive maximum benefit from the discussion. To base an analysis of case on one or two isolated facts may enable a student to make a "contribution" to the discussion, but it is hardly likely to constitute a worthwhile learning experience. Although there is rarely a single "right'" answer to a case problem. there may be several wrong ones– at least, "wrong" in the sense that is difficult to convince anyone else that the decision proposed is reasonable. Experience will tend to show that bringing an opinion to a case is not the same thing as bringing an analysis that is based on logic, the case facts, and assumptions which other members of the class are willing to accept as reasonable. In addition, be careful to avoid looking for a single message in a given case. You may find only the one that you forced yourself to see.

Do not be disappointed if a class ends with more uncertainty about the decision than was apparent when it began. A group consensus is in no way necessary . for learning to occur, indeed, confusion is sometimes a higher state of knowledge than ignorance. And, in any case making decisions in the face of uncertainty is the manager's raison d'etre. Once a decision-making task can be routinized, it belongs to a clerk.

Organization of the book

We have summarized below the principal objectives or each group of cases in the book. Please note that the classification of a particular case in one chapter rarely means that the issues it raises pertain only to the subject of that chapter. The planning and design of advertising and promotion programs require that each element of any program be integrated with the others. It is not possible, for example, to discuss media selection sensibly without considering target markets and messages. Nor is it possible to consider the promotion budget independent of the advertising budget. Please be aware that the inclusion of a case in a specific chapter reflects the relative rather than exclusive emphasis of the issues it raises.

The learning objectives for each group of cases are as follows:

1. Advertising. Promotion, and Marketing Communications

a. To establish the diversity of the marketing communications mix, with emphasis on advertising and promotion, and to explore thee different roles of each element of the mix.

b. To snow the relationship of communications policy to me marketing mix, to push and pull marketing strategies, and to product positioning, differentiation and segmentation.

c. To present the development of advertising and promotion programs as а logical six-stage process involving definition of program objectives, target markets, messages, media, a budget ant its allocation, and a measurement and evaluation program.

d. To emphasize the dependency of advertising and promotion management on thorough of consumer behavior and consumer information needs.

2. Advertising, Branding and Positioning

a. To discuss the product-market circumstances which enhance ability and advertisability of a product.

b. To explore the advantages and disadvantages of umbrella branding

c. To examine the linkages between product positioning, branding gies, and marketing communications.

3. Message Strategy and Copy Testing

a. To emphasize that copy strategy and execution must be develop consistent with campaign objectives, produce positioning, and target markets.

b. To explore models of "how advertising works" both at the strategic level and at the level of the individual consumer.

c. To evaluate particular types of message appeal such as comparison advertising.

d. To illustrate how advertising testing and research can contribute to the formulation of effective advertising and promotion campaigns,

e. To expose students to a variety of measurement techniques and criteria in order to permit discussion of how to select and design measurement systems for advertising and promotion.

4. Media Strategy

a. To introduce students to the concepts used to evaluate individual media vehicles and combinations of media vehicles.

b. To give students experience in applying target-group weighting» cost-per-thousand, reach-frequency trade-offs, and other concepts, to actual media selection and scheduling decisions.

c. To link the science and art of media planning to the other elements of advertising and promotion decision making.

5. Budgeting

a. To explore problems both in setting the level of the advertising and promotion budget and in allocating it efficiently.

b. To present a variety of advertising and promotion budgeting techniques, including controlled experiments, econometric models, and consumer simulation models.

c. To demonstrate the importance of integrating advertising and promotion budgeting into the strategic planning process.

6. Sales Promotion: Strategy and Tactics

a. To expose students to the scope and variety of consumer and trade promotion options available to the manufacturer.

b. To contrast the roles of advertising and promotion and to permit discussion of the circumstances under which different advertising and promotion mixes are appropriate.

c. To explore the design and implementation of cooperative advertising and promotion programs in which manufacturers share costs with trade accounts.

7. Point-of Merchandising

a. To emphasize the importance of managing communication at the point-of-purchase.

b. To demonstrate the intimate link between distribution effectiveness and advertising effort.

c. To illustrate techniques used by distributors to extract more merchandising support from their suppliers.

d. To highlight the importance of trade policy to manufacturer-trade relations.

8. Agency Relations and Management

a. To illustrate how marketing management evaluates and selects suppliers of advertising and promotion services

b. To identify the difficulties which often arise in agency-client relations and the reasons why they occur.

c. To provide institutional information on the advertising agency industry to facilitate discussion of agency organizational structure, management style, and positioning.

9. Social and Ethical Issues

a. To highlight the range and diversity of ethical issues that can arise in advertising and promotion decision-making. To explore the legitimacy of advertising by public agencies. To illustrate the role of pressure groups in countering controversial advertising and promotion programs.

10. Projects and Exercises in Advertising and Promotion Management

a. To develop student skills in the mechanics or media planning.

b. To improve student understanding of the factors which underlie both overall advertising and promotion expenditure levels by industry and by company and their allocation among advertising media and promotion programs.

Acknowledgments

Books are always more work than they appear to be. Books are also the work more people than they appear to be. For a casebook this is especially true, and are many colleagues whose help and contributions we wish to acknowledge.

We both studied advertising and promotion management under the direction of Professor Stephen A. Greyser of the Harvard Business School to whom this book is dedicated. His thoughts will be spread throughout the book because they guided our thoughts. In addition, Steve supervised the first cases that either of us wrote. We learned much from his high standard of case writing, his judicious attention to detail, and his perceptive understanding of how a case should be о translate into an effective and exciting classroom experience. Steve generously permitted us to include in this book three cases which we wrote under his direction as doctoral students (Sunkist Grow Inc. Весе! Margarine, and Archdiocese of New York). We owe a special thanks to Steve.

We have also been privileged to be able to include cases written by some of our other close colleagues and friends. N. Craig Smith, visiting assistant professor Harvard Business School, helped prepare all four cases in the social and ethical issues module, new to this edition. V. Kasturi Rangan, associate professor at Harvard Business School contributed an exciting case on advertising copy testing (Boston Fights Drags (A)). Mark Parry, assistant professor at the University м Virginia, recently developed an updated case on the U.S. Postal Services message .strategy which we are fortunate to be able to include. Mark S. Albion permitted us to reprint an exciting media budgeting case (Suave (C) which is used as the capstone case in a series designed to introduce Harvard Business School students to Lotus'* 1–2–3®. David H. Maister, a specialist in the marketing of professional services, provided us with a case on the management of advertising agencies (Francis, Berther & Allfreed). A case on the advertising agency selection process (Robin Hood Multifoods) was contributed by Stephen B. Ash, formerly of the University of Western Ontario. Christopher Gale of the University of Virginia allowed us to include his computerized promotion planning exercise based on the Procter & Gamble Company (B) case.

Thanks are due to our research assistants for their diligence, patience, and professionalism. At Harvard Business School, they included Alice MacDonaid Court. Jonathan Hibbard, Tammy Bunn Hiller. Melanie Spencer, and Aimee Stem. Research assistants at the University of Virginia included Frank Conley, Richard Edelman. Margo Hoopes, Anne Kroemer, Valerie Lestor. Dan Patterson, Kenneth Smith. Nancy Trap, and William Van Deren.

We are grateful to our many colleagues whose comments and suggestions in response to a lengthy survey questionnaire helped determine the blend of cases presented in the third edition. To those named on page x, and to the respondents who asked to remain anonymous, we express our thanks and appreciation.

Taking one step back in the case writing process, we must acknowledge the many executives of the companies and organizations discussed in the case studies for the trust and time which made this book a reality. In similar vein, we gratefully recognize the financial support and encouragement for our case writing efforts furnished by the Divisions of Research at the Graduate School of Business Administration. Harvard University, and The Darden Graduate School of Business Administration, University of Virginia.

Somehow, even with ail of the help already acknowledged, there remained enough yet to be done that we often tried the patience of our wives with last-minute homework that was accomplished only with their goodwill and understanding. Many thanks to Joyce and Kate.

John A. Queich Paul W. Farri

PART 1. Advertising, Promotion, and Marketing Communications

1-1 Frank W. Homer Ltd. John A. Quelch

1-2 General Electric Company: Consumer Incandescent Lighting. John A. Quelch

1-3 STAINMASTER. Paul W. Farris, Bette Collins, and James D. Сalley

1-4 Ralston Purina: Cookie-Crisp. Paul W. Farris, Nancy Trap, and Valerie Lester

1-5 Mary Kay Cosmetics. John A. Quelch and Alice MacDonald Court

1-6 CSX System. Paul W. Farris and Margo W. Hoopes

1-7 British Airways. John A. Quelch

PART 2. Advertising, Branding, and Positioning

2-1 The Black & Decker Corporation: Household Products Group – Brand Transition. John A. Quelch, Cynthia Bates, and Minette E. Drumwright

2-2 The Chevrolet Corvette. Paul W. Farris, Frank Conley, and Nancy Trap

2-3 Procter & Gamble Co. (A) John A. Quelch and Alice MacDonald Court

2-4 MEM Company, Inc. John A. Quelch

2-5 Suzuki Samurai. John A. Quelch and Tammy Bunn Hiller

2-6 Schweppes Drinks: Export Light. Paul W. Farris and William Van Doren

PART 3. Message Strategy and Copy Testing

3-1 Reagan-Bush 84. John Norton

3-2 Folgers 2000. Paul W. Farris and Anne D. Kroemer

3-3 Boston Fights Drugs (A) V. Kasiuri Rangan and Jennifer F. Lawrence

3-4 USPS: The "We Deliver" Campaign (A) Mark Parry, Rod DeVar, and Paul W. Farris

3-5 Archdiocese of New York. Stephen A. Greyser and John A. Quelch

PART 4. Media Strategy

4-1. Becel Margarine. Paid W. Farris and Stephen A. Greyser

4-2. Media Buying at Ralston Purina Paul W. Farris and Valerie Lester

4-3. Sunkist Growers. Inc. John A. Quelch and Stephen A. Greyser

4-4. Absolut Vodka. Paid W. Farris and Bette Collins

4-5. Reebok International Ltd. John A. Quelch and Tammy Bunn Hiller

PART 5 Budgeting

5-1 Cable News Network. John A. Quelch

5-2 The H. J. Heinz Company (A) Martin Marshall and Ronald Kurtz

5-3 Suave. Mark S. Albion

5-4 Chesebroueh-Pond's Inc.: Vaseline Petroleum Jelly. John A. Quelch and Penny Pittman Merliss

PART 6. Sales Promotion: Strategy and Tactics

6-1 Beecham Products U.S.A. (A) John A. Quelch and Melanie D. Spencer

6-2 Hartmann Luggage Company: Price Promotion Policy. John A. Quelch and Penny Pittman Merliss

6-3 United Airlines: Price Promotion Policy John A. Quelch and Melanie D. Spencer

6-4 General Motors Acceptance Corporation (A) John A. Quelch

6-5 Procter л: Gamble Co. (B) John A. Quelch and Alice MacDonaia Court

PART 7. Point-of-Purchase Merchandising

7-1 H.J.Heinz Co. Plastic Bottle Ketchup (A) John A. Quelch and John Teopaco

7-2 Waterfield Farms. Paul W. Farris and Mary Hickey

7-3 Sorrell Ridge: Slotting Allowances. John A. Quelch and Aimee L. Stern

7-4 Coffee Brands: Direct Product Profit/Cost Exercise. John A. Quelch. Melanie D. Spencer, and Brian Cosacchi

7-5 Ukrop’s Valued Customer Card. Paul W. Farris and Kenneth V. Smith

PARTS 8. Agency Relations and Management

8-1 Robin Hood. Multifoods. Stephen B. Ash and Carolyn Litchfield

8-2 Francis, Berther & Allfreed (A) David H. Maister, John P. Foote, and Shauna Doyle

8-3 Rossin Greenberg Seronick & Hill Inc. (A) John A Quelch and N. Craig Smith

PART 9. Social and Ethical Issues

9-1 The Massachusetts Lottery. John A. Quelch, N. Craig Smith and Ron Lee

9-2 PepsiCo and Madonna. N. Craig Smith, John A. Quelch and Aimee L. Stern

9-3 Anheuser Busch. N. Craig Smith, John A. Quelch. And Jonathan D. Hibbard

9-4 Audi of America Inc. John A. Quelch

PART 10. Projects and Exercises in Advertising and Promotion Management

10-1 Media Planning and Scheduling Project. Robert Caraway, Paul W. Farris, and Lisa Axel

10-2 Promotion Planning Project. Christopher Gale and John Barren

10-3 Competition-for-Account Project. Paul W. Farris

10-4 Media Allocation Exercise. John A. Quelch

10-5 Promotion Incentive Allocation Exercise. John A. Quelch

10-6 Advertising/Sales-Ratio Exercise. John A. Quelch

Index or Cases

The full text of the book can be found at bookstores, e-bookstores and libraries.

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Cases in Advertising and Promotion Management

Preface

Learning with the case method

Organization of the book

Acknowledgments

Contents