2Introduces the people and groups who work in advertising Chapter OverviewIntroduces the people and groupswho work in advertising
3Chapter ObjectivesIdentify the various groups in advertising and their relationshipsDescribe what advertisers do and detail org structureDefine the main types of ad agenciesExplain what people do in ad agenciesDiscuss how agencies get clients, make moneyExplain how the media and suppliers helpDescribe stages in agency/client relationshipDescribe factors that affect agency/client relationship
4Q. 1. What are the four distinct groups in the advertising business?
6The Advertising Industry: People Most often employed by advertisers, not clients:ResearchersArtistsSales personnelWritersManagersPhotographersAccountantsMusiciansComputer scientistsPerformersAttorneysCinematographers
8Advertisers: LocalAdvertising done by local businesses in a particularcity or county targeting customers in theirgeographic area
9Advertisers: LocalAn ad for Rubio’s Baja Grill showcases its unique products
10Advertisers: LocalTypical structure of small advertisers with high volumes of work
11Q. 3. What are the four types of Local Advertisers?
12Advertisers: Local Franchisees and dealers Specialty businesses Sellers of branded merchandiseGovernment and nonprofits
13Q. 4. What are the three types of Local Advertising?
14Types of Local Advertising ProductInstitutionalClassifiedRegular price-line, sale, or clearanceCreate favorable image, increase awareness, foster goodwillRecruit employees, offer services, sell merchandiseAds can be created locally using local experts orads can be created cooperatively
15Q. 5. What are the two kinds of Cooperative Advertising?
16Advertisers: Cooperative Vertical Co-opHorizontal Co-opManufacturer provides complete ad & shares costsFirms in the same business or part of town advertise jointlyNational brand associationExpands advertising budgetProfessional quality ads
17Q. 6. Define Regional Advertisers and National Advertisers.
18Advertisers: Regional and National Regional: one or several statesNational: several regions or entire country
19Advertisers: Regional and National Insert ex. 4-2, p. 103Top 10 U.S. AdvertisersPosition = 2.9” horiz, 1.5” verticalSize = 5.7” WIDEResolution = 300 dpiTop 10 advertisers in the U.S. by total U.S. advertising in 2005
20Advertisers: Regional and National Top 10 advertisers in the U.S. Ranked by total U.S. advertising in 2006
26Transnational Advertising Structure Divisions are responsible for their own product lines, marketing, and profitsEach division has an advertising department to coordinate sales and promotion across brandsThe corporate advertising department provides information and guidance
27Global Advertising Strategy Assumption that product use and needs are universalStandardized approach in all countriesExtensive research to ensure ad is basic and universalAppeal to basic human emotions and interests
29Advertising AgencyAn independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans, advertisements and other promotional tools.
30Roles of Ad Agencies Ad Agency Independent Business staff; creative staffContracts for media space and timeClient orientedUnderstands global marketing