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advertising business practices for advertising and marketing professionals
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AdvertisingAdvertisingMKTMKT00350035
Chapter 3:Chapter 3:The The BUSINESS BUSINESS of of
AdvertisingAdvertising
Companies spend Companies spend $$$$$$ billions all over billions all over
the world on the world on advertising, to advertising, to establish their establish their brands and sell brands and sell internationally.internationally.
The Players
Advertisers Agencies
Suppliers Media
It’s ALL Local
Half of all UUSS advertising is local – targeting customers within the same city/county as the advertiser.
4 Types of local advertiser:• Dealers/local franchises• Stores (convenience, grocery, Dept.)• Specialty services (banks, bars, restaurants)• Gov’t & nonprofit orgs (charities,
municipalities, utilities) Ad manager performs most planning,
administrative & execution functions.
Regional/National Regional: operate in one or more states. National: in several regions of the
country. Share similar challenges as Local
advertisers, but the larger the firm the bigger the need to strategically build and maintain strong brands.
Types of Advertising
Product Sales Institutional Classified
Serve Your Client
To most effectively represent your client you MUST understand their challenges, business goals, market, competitors, budget, culture, etc.
3-A (text: page 61.) My experiences at TMP Worldwide.
Integrated Integrated Marketing Marketing
CommunicationsCommunications
Building & reinforcing mutually Building & reinforcing mutually profitable relationships with profitable relationships with
customers, employees and other customers, employees and other stakeholders and general public by stakeholders and general public by
coordinating a strategic coordinating a strategic communications program that communications program that enables them to make contact enables them to make contact with the company through a with the company through a
variety of media.variety of media.
Co-op Advertising
Wholesalers and manufacturers often provide local advertisers (retailers) with READY-MADE co-op advertising, where the costs are shared.
The Ad Department Centralized Versus Decentralized Centralized: ONE Team for all ad needs Decentralized: Separate departments
for different divisions, regions, brands, or other categories.
Transnational: Advertise globally. (Ex. McDonald’s “I’m Lovin’ It“ in all 118 countries that it serves food in.)
The Ad AgencyThe Ad Agency
Ad Agency Works solely for the good of its
clients. Employs blend of business and
creative people. Runs independently of the
advertiser.
Types of Agency Geographic. Range of Services. Specialized Service: Assist their
clients with a limited type/range of expertise.
Ad Agency Jobs
Account Management: Teams that serve as liaison between the agency and the client.
Research & Account Planning: provide product, market and competitive information.
Media Planning & Buying. Creative: The prima donnasprima donnas. Traffic Management: Coordinates all
phases of production.
Client-Agency Relationship
Clients come from referrals, networking, and community relationships.
Soliciting new business. The presentation “pitch.” The chemistry between agency and
client matter most. Dwindling client loyalty as per the
agency REVIEW process.
The Suppliers
Art studios. Web Designers. Printers. Film & video houses. Research companies.
The Top The Top 5050
The Media PlanThe Media Plan
Why Work in AnWhy Work in AnAd AgencyAd Agency
Remember Our Remember Our Talk About Talk About Offensive Offensive
Advertising?Advertising?