1. The Scope of Advertising: From Local to Global
CHAPTER 3
The Scope of Advertising: From Local to Global

2. Do I Need an Advertising Agency?
Company: XYZ Manufacturing
Products: High quality molded plastic parts for medical and technical firms.
Annual sales: $2,500,000
Ad Budget: 10% of sales: $250,000
Media: Trade Shows: $50,000
Direct Mail: $80,000
Postage: $20,000
Magazine Ads:$100,000
Do I need an Ad Agency?
Do I need an in-house or outside Ad Agency?
What selection criteria should I use?

3. Key Questions to Ask Potential Advertising Agencies
Are the people who worked on the accounts featured in your presentation still employed by your agency?
Will these same individuals be assigned to work on my account?
In terms of budget, workload, etc. how does my account compare to other accounts handled by your agency?
Who will be my account representative?

4. Advertising Agency Classification
Geodemographic:
Local
Regional
National
International
Scope of Service :
Full-service
General Consumer
Business-to-Business
Specialized Service
Creative Boutiques
Media-buying Service
Interactive Agency

5. Advertising Agency Personnel
Company CEO
Category Managers
Brand Managers
V. P Marketing
Director of Marketing
Agency CEO
Creative Director
Art Director/Copy Chief
Artists/Copywriters
Media Buyers
V. P.
Account Executive

6. How Ad Agencies are Compensated
Media Commissions: 15%
Markups: 17.65%
Fees:
Straight fee
Retainer
Fee-commission
Incentive system
Pro Bono: Free

7. How Ad Agencies Get and Keep Business
Referrals
Presentations
Networking
Community Relations
Advertising
Stages in the Client/Agency Relationship
Prerelationship
Development
Maintenance
Termination

8. The Suppliers in Advertising
Art Studios
Web designers
Copywriters
Printers
Film and Video Houses
Research Companies
Mailing Houses

9. The Media of Advertising
Media is:
Any paid means used to present an ad to its target audience.
Traditional media:
Print
Newspapers
Magazines
Electronic
Radio TV
Digital Media:
Internet
Kiosks
Out-of-Home Media:
Outdoor Advertising
Transit Advertising
Direct Mail