Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter 4 The Scope of Advertising: From Local to Global William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill.

Similar presentations


Presentation on theme: "Chapter 4 The Scope of Advertising: From Local to Global William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill."— Presentation transcript:

1 Chapter 4 The Scope of Advertising: From Local to Global William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 4-2 Chapter Overview Introduces the people and groups who work in advertising

3 4-3 Chapter Objectives Describe stages in agency/client relationship Define the main types of ad agencies Discuss how agencies get clients, make money Explain what people do in ad agencies Describe factors that affect agency/client relationship Describe what advertisers do and detail org structure Identify the various groups in advertising and their relationships Explain how the media and suppliers help

4 Q. 1. What are the four distinct groups in the advertising business?

5 4-5 The Advertising Industry: Organizations Advertisers Agencies Media Suppliers

6 4-6 The Advertising Industry: People Sales personnel Researchers Accountants Managers Most often employed by advertisers, not clients: Computer scientists Writers Artists Musicians Photographers Performers AttorneysCinematographers

7 Q. 2. What is Local Advertising?

8 4-8 Advertisers: Local Advertising done by local businesses in a particular city or county targeting customers in their geographic area

9 4-9 Advertisers: Local An ad for Rubio’s Baja Grill showcases its unique products

10 4-10 Advertisers: Local Typical structure of small advertisers with high volumes of work

11 Q. 3. What are the four types of Local Advertisers?

12 4-12 Advertisers: Local Specialty businesses Government and nonprofits Franchisees and dealers Sellers of branded merchandise

13 Q. 4. What are the three types of Local Advertising?

14 4-14 Regular price- line, sale, or clearance Types of Local Advertising Create favorable image, increase awareness, foster goodwill Recruit employees, offer services, sell merchandise ClassifiedInstitutional Product Ads can be created locally using local experts or ads can be created cooperatively

15 Q. 5. What are the two kinds of Cooperative Advertising?

16 4-16 Advertisers: Cooperative Vertical Co-opHorizontal Co-op Firms in the same business or part of town advertise jointly National brand association Manufacturer provides complete ad & shares costs Professional quality ads Expands advertising budget

17 Q. 6. Define Regional Advertisers and National Advertisers.

18 4-18 Advertisers: Regional and National Regional: one or several states National: several regions or entire country

19 Advertisers: Regional and National Top 10 advertisers in the U.S. by total U.S. advertising in acenter/datapopup.p hp?article_id= Insert ex. 4-2, p. 103 Top 10 U.S. Advertisers Position = 2.9” horiz, 1.5” vertical Size = 5.7” WIDE Resolution = 300 dpi

20 4-20 Advertisers: Regional and National Top 10 advertisers in the U.S. Ranked by total U.S. advertising in 2006

21 4-21 Advertisers: Regional and National

22 Q. 7. What are the differences between Regional and National Advertisers?

23 4-23 Advertisers: Regional and National

24 4-24 Centralized Department Structure

25 4-25 Decentralized Department Structure

26 4-26 Transnational Advertising Structure Divisions are responsible for their own product lines, marketing, and profits Each division has an advertising department to coordinate sales and promotion across brands The corporate advertising department provides information and guidance

27 4-27 Global Advertising Strategy Assumption that product use and needs are universal Standardized approach in all countries Extensive research to ensure ad is basic and universal Appeal to basic human emotions and interests

28 Q. 8. Define an Advertising Agency.

29 4-29 Advertising Agency An independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans, advertisements and other promotional tools.

30 4-30 Roles of Ad Agencies Ad Agency Independent Business staff; creative staff Contracts for media space and time Client oriented Understands global marketing

31 Q. 9. What are the different types of agencies?

32 4-32 Agencies: Types Specialty Boutiques Media Buyers Interactive Range of Services Consumer BTB Reach LocalNational Regional Global International

33 Q. 10. What are the various departments in an agency?

34 4-34 Agencies: People Account Research and Planning Traffic ManagementAdministration Account Management Other Services Advertising Production Media Planning and Buying Creative Concepts

35 4-35 Ad Agency Structure

36 Q. 11. What is the compensation structure in an ad agency?

37 4-37 Agencies: Compensation Ad rate card price: $100,000 Agency buys ad at 15% discount: $85,000 Agency bills client full ad amount: $100,000 Agency keeps $15,000 difference Media Commissions

38 4-38 Agencies: Compensation Markups Agency buys materials for campaign Materials cost $85,000 Agency bills for materials plus a 17.65% markup Agency bills $100,000 (cost plus markup)

39 4-39 Agencies: Compensation Fees Fee-commission combination Straight-fee (retainer) method Incentive system

40 4-40 Agencies: In-House Pros May save money Allows tighter control May allow greater attention to the brand Lower creative quality Less experience and talent Loss of objectivity Cons

41 Q. 12. How do agencies get clients?

42 4-42 Agencies: Client Relationships Referrals Presentations Community relations and networking Solicitation Finding and Attracting New Clients

43 Q. 13. What are the stages in the Client/Agency relationship?

44 4-44 Client-Agency Relationship Stages Development Pre-relationship Termination Maintenance

45 4-45 Client/Agency Relationship Factors Communication Conduct Chemistry Changes The Four Cs

46 Q. 14. Who are some of the suppliers in advertising?

47 4-47 Suppliers Art studios and web designers Printers and related specialists Film and video houses Research companies

48 Q. 15. What are the various categories of media?

49 4-49 Media Out-of-home Digital interactive Electronic Print Direct mail Other Social

50 4-50 Media Around the World McDonald’s honors an Islamic observance


Download ppt "Chapter 4 The Scope of Advertising: From Local to Global William F. Arens Michael F. Weigold Christian Arens McGraw-Hill/IrwinCopyright © 2013 by The McGraw-Hill."

Similar presentations


Ads by Google