1. Chapter 2: THE PROMOTION INDUSTRY: MARKETERS, AGENCIES, and MEDIA ORGANIZATIONS 2.1

2. The Promotion Industry in Transition
ALTERED BY SIX TRENDS
Information in Marketplace is an Interactive System
between Marketers and Consumers
Proliferation of Cable TV, Direct-Marketing & Alternative New Media Causes Media Fragmentation
Growing Investment in Advertising Causes Media Clutter
New Communications/Distributions Channels are Growing in Influence
Fragmentation of Marketing Budgets Resulting in Greater Portions of Budgets going to Trade & Consumer Promotions
Improved Information Systems Allow Retailers & Distributors more Control over Marketing & Promotional Decisions
2.2

3. Structure of the Promotion Industry and Participants in the Process
Marketers
Manufacturers Resellers, retailers, Government and
and service firms wholesalers, and social organizations distributors
Advertising and
Promotion Agencies
Advertising agencies: Agency services: Agency compensation:
Full-service agencies Account services Commission
Creative boutiques Marketing research Markup charges
Media-buying services Creative and production Fee system
Interactive agencies services Pay-for-results
In-house agencies Media planning research
Promotion agencies:
Direct marketing and
database agencies
E-Commerce agencies
Event planning
Design firms
Public relations firms
Sales staffing and training
firms

4. Structure of the Promotion Industry and Participants in the Process (con’t)
External Facilitators
Marketing and Production facilitators
advertising research Consultants
firms Information
intermediators
Media Organizations
And Trade Partners
Media Organizations: Interactive media Trade Partners:
Broadcast media Support media Wholesalers, distributors,
Print media Media conglomerates retailers
B-to-B trade
communities Internet portals
Target Audience(s)
Household consumers Business and professional Government and social
Trade resellers buyer organizations

5. Structure of Promotion Industry
MARKETERS
Manufacturing and Service Firms
Trade Resellers
Federal, State and Local Governments
Social Organizations
March of Dimes
Nature Conservancy
2.5

6. Marketer that Relies on Advertising
The U.S. Government is a
Marketer that Relies on
Advertising
2.5

7. Structure of Promotion Industry (con’t)
AGENCIES
Advertising Agencies
Full Service Agency
Creative Boutique
Interactive Agency
In-House Agency
Media-Buying Agency
2.7

8. Use Advertising to Promote Their Services to New Clients
Advertising Agencies
Use Advertising to Promote
Their Services to New Clients
2.7

9. Structure of Promotion Industry (con’t)
AGENCIES (con’t)
Promotional Agencies
Direct Marketing and Database Agencies
Fulfillment Centers
E-Commerce Agencies
Sales Promotion Agencies
Consumer Sales Promotion
Trade Sales Promotion
Event-Planning Agencies
Design Firms
Logo Design
Public Relations Firms
Sales, Staffing, Training & Assessment Firms
2.9

10. Marketers Develop Logo Designs that Last, Like this Pillsbury Logo
Design Firms Help
Marketers Develop Logo
Designs that Last,
Like this Pillsbury Logo
2.9

11. Structure of Promotion Industry (con’t)
AGENCIES (con’t)
Agency Services
Account Services
Marketing Research
Creative & Production
Creative Services
Production Services
Media-Planning and Buying
Administrative
2.11

12. Structure of Promotion Industry (con’t)
AGENCIES (con’t)
Agency Compensation
Commissions
Markup Charges
Fee System
Pay-for-Results
2.12

13. Structure of Promotion Industry (con’t)
EXTERNAL FACILITATORS
Marketing and Advertising Research Firms
Consultants
Production Facilitators
Information Intermediators
Trade Partners
2.13

14. Broadcast Media Interactive Media Print Media Support Media
Media Organizations
and Trade Partners
Available to Marketers
Broadcast Media
Interactive Media
Print Media
Support Media
Media Conglomerates
Wholesalers, Retailers, B2B Communities, Portals
2.14

15. Portals Offer Marketers a New Media Outlet for Placing Advertising and
Promotional Messages
2.14

16. Structure of Promotion Industry
AUDIENCES
Household Consumers
Trade Resellers
Business and Professional Buyers
Government and Social Organizations
2.16

17. Marketers Use Promotion to Reach the Business and
Professional Buyer Audiences
2.16