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The Scope of Advertising:From Local to Global
Introduces the people and groupswho work in advertising
The Advertising Industry:Organizations
Advertisers (Clients)
Agencies
Media
Suppliers
The Advertising Industry:People
SalesTechnology
Research
Accounting
Communication Arts
Management
Law
Most are employed by agencies, not clients
Advertisers:LocalDirected to customers in the same geographic area
Independent businesses
Govt. & nonprofits
Franchisees and dealers
Chain retailers
Advertisers:Local
Create favorable image, increase
awareness, foster goodwill
Recruit employees, offer
services, sell merchandise
Regular price-line, sale, or clearance
Types of local advertising
ClassifiedProduct Institutional
Advertisers:Regional and National
Regional: one or several states
National: several regionsor entire country
Agencies:Definition
Agencyroles
Develop marketing & ad plans
Develop ads & promotions
Purchase ad space and time
Agencies:Types
Reach
Full-Service
SpecialtyBoutiques Media
BuyersInteractive
Consumer
BTB
Local National
Regional
Global
Internatl
Agencies:People
Accountmanagement
Research & account planning
Media buying & planning
Production
Creative concepts
Trafficcontrol
Other servicesAdmin
Agencies:People
Many departments contributed to Honda’s dealer kit
Agencies:Compensation
•Media commissions
Ad ratecard price:
$100,000
Agencybuys adat 15%
discount:$85,000
Agencybills
clientfull ad
amount:$100,000
$15,000difference
is keptby theagency
Agencies:Compensation
•Media commissions•Markups
Agencybuys
materialsfor
campaign
Materialscost
$85,000
Agencybills for
materials plus a17.65%markup
Agency bills
$100,000which is
costs plus
markup
Agencies:Compensation
•Media commissions•Markups•Fees
Fee-commissioncombination
Straight-fee(retainer)method
Incentive system
Agencies:In-House
Pros
May save money
Allows tighter control
May permit greater attention to
the brand
Lower creative quality
Less experience and talent
Loss of objectivity
Cons
Agencies:Client Relationships
ReferralsPresentations
Community relations& networking
Soliciting fornew business
How agencies reach & attract new clients
Agencies:Client Relationships
DevelopmentPrerelationship TerminationMaintenance
Stages in the client-agency relationship
Suppliers
Art studios &web designers
Printers &related specialists
Film & videohouses
Researchcompanies
Media
Out-of-home
Digitalinteractive
Electronic
Direct mail
