Week 3

What is sale advertising?

A type of retail advertising designed to stimulate the movement of particular merchandise or generally increase store traffic by placing the emphasis on special reduced prices.

What is a general consumer agency?

An agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers.

What is an in-house agency?

An agency wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency.

What is a speculative presentation?

An agency's presentation of the advertisement it proposes using in the event it is hired. It is usually made at the request of a prospective client and is often not paid for by the client.

What is a media-buying service?

An organization that specializes in purchasing and packaging radio and television time.

Where is a local companies focus when it comes to advertisements?

Attracting customers to a particular location - their place of business.

Why might local advertisers hold an advantage over national advertisers when it comes to social media?

Because local advertisers share a community with their customers.

What is local advertising critically important?

Because most consumer sales are made (or lost) locally.

Where is a national companies focus when it comes to advertisements?

Building their brands and focusing on the competitive features of one brand over another.

What are the two major management structures for large advertisers?

Centralized and decentralized.

What four forces influence the client-agency relationship?

Chemistry, communication, conduct, and changes.

Who are national advertisers?

Companies that advertise in several geographic regions or throughout the country.

Who are regional advertisers?

Companies that operate in one part of the country and market exclusively to that region.

Who are advertisers?

Companies that sponsor advertising for themselves and their products.

What is a media commission?

Compensation paid by a medium to recognized advertising agencies, traditionally 15 percent, for advertising placed with it.

What are the four main types of local advertisers?

Dealers of local franchisees of national companies, stores that sell a variety of branded merchandise, specialty businesses and services, and government / nonprofit organizations.

What are the two types of advertising agencies?

General consumer agencies and business-to-business agencies.

What are the three most successful ways to develop new business for ad agencies?

Have clients who strongly champion the agency, have superior presentation skills, and cultivate a personal relationship with a network of top executives.

What does IMC accomplish?

Joining together in a consistent manner every element that communicates with customers including the actual delivery of the product or service.

Almost half of the billions of dollars spent each year on advertising in the United States is devoted to what?

Local advertising

What are management supervisors?

Managers who supervise account executives and who report to the agency's director of account services.

In what three ways can agencies make money?

Media commissions, makeups, and fees.

What is international media?

Media serving several countries, usually without change, that is available to an international audience.

Who are global marketers?

Multinationals that use a standardized approach to marketing and advertising in all countries.

What are creative boutiques?

Organizations of creative specialists that work for advertisers and occasionally advertising agencies to develop creative concepts, advertising messages, and specialized art. A boutique performs only the creative work.

Who are suppliers?

People and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production.

What are the six major categories of advertising media?

Print, electronic, digital, out-of-home, direct mail, and other media.

What is the traffic department?

The department in an advertising agency that coordinates all phases of production and makes sure everything is completed before the deadline.

What is the production department?

The department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials.

What is a decentralized advertising system?

The establishment of advertising departments by products or brands or in various divisions, subsidiaries, countries, regions, or other categories that suit the firm's needs, which operate with a major degree of independence.

Who is a creative director?

The head of a creative team of agency copywriters and artists who is assigned to a client's business and who is ultimately responsible for the creative product - the form the final ad takes.

Who are brand managers?

The individual within the advertiser's company who is assigned the authority and responsibility for the successful marketing of a particular brand.

What are account executives?

The liaison between the agency and the client. The account executive is responsible both for managing all the agency's services for the benefit of the client and for representing the agency's point of view to the client.

What is a makeup?

A source of agency income gained by adding some amount to a supplier's bill, usually 17.65 percent.

What is a centralized advertising department?

A staff of employees, usually located at corporate headquarters, responsible for all the organization's advertising. The department is often structured by product, advertising subfunction, end user, media, or geography.

What is institutional advertising?

A type of advertising that attempts to obtain favorable attention for the business as a whole, not for a specific product or service the store or business sells. The effects of this advertising are intended to be long term, rather than short term.

What is foreign media?

The local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country.

What is a group system?

The organization of an ad agency into a number of little agencies of groups, each with the various people required to meet the needs of the particular clients being served by the group.

What is a departmental system?

The organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration.

Who is the advertising manager?

The person who performs all the administrative, planning, budgeting, and coordinating functions of advertising. He or she may lay out ads, write ad copy, and select the media.

What are Integrated Marketing Communications?

The process of building and reinforcing mutually profitable relationships with employees, customers, other stakeholders, and the general public by developing and coordinating a strategic communications program that enables them to make consecutive contact with the company or brand through a variety of media.

What is co-op advertising?

The sharing of advertising costs by the manufacturer and the distributor or retailer.

What is media planning?

The strategic identification and selection of media vehicles for a client's advertising messages.

What is copy?

The words that make up the headline and message of an advertisement or commercial.

What is the greatest difference between national and local advertisers?

Their relationship with the customer.

What are the two major purposes of co-op advertising?

To build the manufacturer's brand image and to help distributors, dealers, or retailers increase sales.

Who is an art director?

Someone who, along with graphic designers and production artists, determines how the ad's verbal and visual symbols will fit together.

What is a multinational corporation?

A corporation operating and investing throughout many countries and making decisions based on availability worldwide.

What is the incentive system?

A form of compensation in which the agency shares in the client's success when a campaign attains specific, agreed-upon goals.

What is account planning?

A hybrid discipline that bridges the gap between traditional research, account management, and creative direction whereby agency people represent the view of the consumer in order to better define and plan the client's advertising program.

What is a straight-fee method?

A method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor.

Who is a copywriter?

A person who creates the words and concepts for ads and commercials.

Who is the media?

A plural form of medium, referring to communications vehicles paid to present an advertisement to their target audience.

What is a fee-commission combination?

A pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned.

What are the four distinct groups of the advertising business?

Advertisers, agencies, suppliers, and media.

What is a regional agency?

Advertising agencies that focus on the production and placement of advertising suitable for regional campaigns.

What is an international agency?

Advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market internationally or globally.

What is a national agency?

Advertising agencies that produce and place the quality of advertising suitable for national campaigns.

What is a local agency?

Advertising agencies that specialize in creating advertising for local businesses.

What is local advertising?

Advertising by businesses within a city or county directed toward customers within the same geographic area.

What is product advertising?

Advertising intended to promote good and services ; also a functional classification of advertising.

What is an interactive agency?

An advertising agency that specializes in the creation of ads for a digital medium.

What is a full-service advertising agency?

An agency equipped to serve its clients in all areas of communication and promotion. Its advertising services include planning, creating, and producing advertisements as well as performing research and media selection services.

What is a B2B agency?

An agency that represents clients that market products to other businesses.

What is classified advertising?

Advertising used to locate and recruit new employees, offer services, or sell or lease new and used merchandise.

What is a sales promotion department?

In larger agencies, a staff to produce dealer ads, window posts , point-of-purchase displays, and dealer sales material.

What are advertising agencies?

Independent organizations of creative people and business people that specialize in developing and preparing advertising plants, advertisements, and other promotional tools for advertisers. The agencies also arrange for or contract for purchases of space and time in various media.

What does IMC stand for?

Integrated Marketing Communications