ADV chapter 2

true/false: Before contracting with an advertising agency, the role of the advertiser is to fully understand and describe the value that the firm's brand(s) provides to users.

true

true/false: Media organizations are the essential link in delivering advertising and IBP communications to target audiences.

true

the creative services

group develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations. - typically include a creative director, art director, illustrators or designers, and copywriters. In specialized promotion agencies, event planners, contest experts, and interactive me- dia specialists

designers

help a firm create the visual impression of a firms advertising materials—particularly print,in-store display,or Web graphics. -enlisted to create a firm's logo and other visual representations that promote an identity for a firm. -design most of the materials used in supportive communications such as the package design, coupons, in-store displays, brochures, outdoor banners for events, newsletters, and direct mail pieces.

how will they adapt?

- creativity: the more entreating and informative an ad is, the more likely consumers will want to actually watch the ad. -run advertising messages along the bottom of the programming

Direct marketing agencies and database agencies

- maintain and manage large databases of mailing lists as one of their services. - design direct marketing campaigns that use either (1) mail or telemarketing or (2) direct response campaigns using all forms of media. -help advertisers construct databases of target customers, merge databases, develop promotional materials, and then execute the campaign. - firms will design and help execute direct response advertising campaigns using traditional media such as radio, television, magazines, and newspapers. - firms can prepare infomercials for clients: 5- to 60-minute information programs that promote a brand and offer direct purchase to viewers.

manufacturers and service firms

- make products and services. the most prominent users of advertising and promotion, often spending billions of dollars annually. the use of advertising, particulate mass media advertising, by these firms is essential to creating awareness and preference for their brands

Account services

- services are offered by managers who have titles such as account executive, account supervisor, or account manager and who work with clients to determine how the brand can benefit most from advertising and IBP. - Account services entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan. -work with the client in translating cultural and consumer values into advertising and promotional messages through the creative services in the agency. -they work with media services (both internal and external) to develop an effective media strategy for determining the best vehicles for reaching the targeted audiences. - keep the various agency teams' creativity, production, and media efforts on schedule and within budget.

IBP Professions

-account planner -media buyer -creative director -copywriter -event planner -graphic designer -PR specialist -social media expert -web developer

federal, state, and Local governments

-government bodies invest 2 billion in advertising annually. -The federal government's spending on advertising and promotion: armed forces recruiting and social issues.

structure of advertising

-we spend billions of dollars on advertising every year 1) advertisers (Manufacturer& Service firms, Retailers & Wholesalers, Government, Social Organizations) 2) can employ the services of agencies 3) that may contract for specialized services with various external facilitators (Ad research firms, Production firms, Consultants, Software firms) 4) which results in advertising and promotion being directed with the help of various media organizations (Broadcast, Print, Internet portals, Interactive, Support, Conglomerate) 5) to one or more target audiences

5 trends influencing the IBP trend

1) consumer control: consumers now have more control of the info they receive 2) Media ownership: media owned by fewer companies 3) More media options: means more fragmentation and more IBP tactics - new and increased media options have resulted in so much clutter that the probability of any one advertisement breaking through and making a real difference continues to diminish. 4) Crowdsourcing: lets consumers contribute to the brand 5) mobile marketing: can reach consumers everywhere (location-based advertising, sponsoring apps, short message service, PUSH notifications)

how advertisers must be prepared to work with agencies:

1) value:Should understand their brand's key value(s) 2) competition: Should understand their brand's market position 3) objectives: Should understand their brand's short-and long-term objectives 4) audience: Should understand their brand's target audience(s) 5) logistics: Should understand how they get their product to the audience (chain/distribution system) 6) marketing: Should understand how ADV and IBP fit into the bigger picture (Be committed to using advertising and other promotional tools as part of the organization's overall marketing strategy to grow the brand)

number of ads that a consumer sees each day

1000-5000. 50% out of 4000 say its getting out of control

Whole Foods conducted research before entering the organic food market and has provided that information to the advertising agency charged with promoting the brand. Whole Foods fulfilled which of its roles as an advertiser?

Fully understand and describe the brand's position in the market relative to competitive brand

4 Types of External Facilitators

Research: provide, collect, and analyze relevant data Consultants: specialize in different aspects of IBP -media, creative, etc. Production: broadcast, camera, lighting, songwriting, facilities, etc. -advertisers and their agencies rely most heavily on external facilitators. Software: provide specialized software to gather and analyze data

____are offered by managers who have titles such as account executive, account supervisor, or account manager, and who work with clients to determine how the brand can benefit most from promotion. They entail identifying the benefits a brand offers, its target audiences, and the best competitive positioning and then developing a plan.

account services

promotion agencies

advertising agencies, even full-service agencies, will concentrate more on the advertising and often provide only a few key ancillary services for other promotional efforts. -Promotion agencies can handle everything from sampling to event promotions to retail promotional tie-ins. - so many full-service agencies do, in fact, provide specialized promotion services.

Target is an example of a trade reseller that buys products from manufacturers and other trade resellers in order to sell them to consumers. Given the structure of the advertising industry, Target is also a(n)

agency, advertiser, external facilitator, and media organization

Public Relations Firms

agenices hire PR because: -public relations require highly specialized skills and talent not normally found within the company ranks. - managers are too close to public relations problems and may not be capable of handling a situation, particularly a negative situation, with measured public responses.

advertisers

are business, not-for-profit, and government organizations that use advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for their brands. -also referred to as clients by their advertising and promotion agency partners.

Event-planning agencies and organizers

are experts in finding locations, securing dates, and putting together a team of people to pull off a promotional event: audio/visual people, caterers, security experts, entertainers, celebrity participants, or whoever is necessary to make the event come about successfully. -take over the task of advertising the event and making sure the press provides coverage (publicity) of the event

External facilitators

are organizations or individuals that provide specialized services to advertisers and agencies

media specialists

are organizations that specialize in buying media time and space and offer media strategy consulting to advertising agencies and advertisers. -advantage of using media specialists is that since they buy media in large quantities, they often acquire media time at a much lower cost than an agency or advertiser could. - media specialists often have time and space in inventory and can offer last-minute placement to advertisers.

Some say the ______________ compensation system gives ad agencies an incentive to up-sell. This means the more media they sell and the more they suggest the client needs, the more the agency makes.

commission based

_____is a type of agency compensation that is being questioned by both advertisers and agencies themselves as being behind the times and inappropriate for the modern era

commissions

what is at the top of the list of trends affecting the advertising and promotion industry?

consumer control

consumer control

consumers are now in greater control of the information they receive about product categories and the brands within those categories. individuals sharing and creating content through blogs, social media, wikis, and video sites use services that emphasize online collaboration and sharing among users.

digital divide

consumers are the primary target of most advertising and promotion and are discovering that digital technologies and media options the give them more control over the communications they see and hear. they control their exposure to information rather than an advertiser or media company being in control

The _________________________ in an agency come up with the concepts that express the value of a company's brand in interesting and memorable ways.

creative services

Of the various trends affecting the advertising and promotion industry, _____________ offers an opportunity for advertisers to distribute a variety of tasks to various experts, enthusiasts, and consumers.

crowdsourcing

A(n) _______________ focuses on helping advertisers prepare communications for many of the new media opportunities available in this era of mobile and Internet technologies.

digital/interactive agency

Taylor is an expert at planning promotional opportunities such as trade fairs, sponsorship festivals, and even not-for-profit rock concerts. Taylor most likely works for a(n)

event-planning agency

true/false: Full-service agencies are typically large organizations that employ hundreds, if not thousands, of individuals and serve large national and international clients.

false

true/false: One trend affecting the advertising and promotion industry is the move away from consumer involvement in the advertising and promotions process.

false

true/false: Advertising agencies include event-planning agencies, design firms, public relations firms, and direct marketing agencies.

false, The major types of advertising agencies include full-service agencies, creative boutiques, digital/interactive agencies, and media specialists.

true/false: Dell would like to reach a narrowly defined target audience. To do so, they should select prime time network television as the media to reach such an audience.

false, speciality programming on cable television, tightly focused direct mail pieces, and a well-designed online campaign, social media campaign, or mobile marketing campaign may be a better way to reach a specific audience than prime time network television

consumer sales promotions

focus on price-off deals, coupons, sampling, rebates, and premiums. -trade-market sales promotions are designed to help advertisers use promotions aimed at wholesalers, retailers, vendors, and trade resellers.

Digital/interactive agencies

focus on ways to use Web-based solutions for direct marketing and target market communications.

Production services

include producers (and sometimes directors) who take creative ideas and turn them into advertisements, direct mail pieces, and other IBP materials. -Producers generally manage and oversee the endless details of the production of the finished advertisement or other promotion effort.

advertising agency

is an organization of professionals who provide creative and business services to clients in planning, preparing, and placing advertisements. -firms rely on advertising agencies because agencies house a collection of professionals with very specialized talent, experience, and expertise that simply cannot be matched by in-house talent.

The account planner

is assigned to clients to ensure that research input is included at each stage of development of campaign materials

in-house agency

is often referred to as the advertising department in a firm and takes responsibility for the planning and preparation of advertising materials. -has the advantage of greater coordination and control in all phases of the advertising and promotion process. -The advertiser's own personnel have control over and knowledge of marketing activities, such as product development and distribution tactics that can provide unique insights into target markets. -the firm can essentially keep all commissions that an external agency would have earned. -there may be a lack of objectivity, thereby constraining the execution of all phases of the advertising process. - it is highly unlikely that an in-house agency could ever match the breadth and depth of talent available in an external agency.

trade reseller

is simply a general description for all organizations in the marketing channel of distribution that buy products to resell to customers. these types of companies deal only with business customers sine their position in the distribution channel dictates that they sell products either to producers or to retailers. they use trade publications, director advertising such as yellow pages and trade directories, direct mail, personal selling, and their internet websites as their main advertising media

Ad agencies come in many varieties and offer diverse services to clients with respect to planning, preparing, and executing advertising and IBP campaigns. Services include which of the following:

market research, creation of ad materials, and digital services

Media organizations include broadcast media such as where Katie Couric works; other media organizations include:

print media, media specialists, interactive media, support media, and media conglomerates.

how will companies reach consumers?

structure of the advertising and media industry may be changed forever, the goal of that old traditional structure has not changed: - the brand still needs to be highlighted with persuasive communications. - the change in consumer orientation will make product branding even more important as consumers choose what persuasive messages they want to be exposed to and where they want to see them

Social Organizations

support causes and ideas

creative boutique

typically emphasizes creative concept development, copywriting, and artistic services to clients. -An advertiser can employ this alternative for the strict purpose of infusing greater creativity into the message theme or individual advertisement. -idea factories. - the creative effort is so valuable to effective brand building that creativity often rises to prominence in the process, and creative boutiques are well positioned to deliver that value.

full-service agency

typically includes an array of advertising professionals to meet all the promotional needs of clients.

blogs

websites frequented by individuals with common interests where they can post facts, opinions, and personal experiences, have emerged as sophisticated sources of product and brand information. "word of mouth" communication between consumers results in longer lasting impressions and greater new customer acquisition effects than traditional marketing efforts

psychologically resistant

when we dont notice all the ads we see during the day

marketing research services

will help the client interpret the research and communicate these interpretations to the creative and media people. -If existing studies are not sufficient, research may be conducted by the agency itself.

Grey is an agency that competes or works with other agencies. This is different from an in-house agency because:

work is done by the brand company and not by an agency.