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Transcript of © 2009 South-Western, a part of Cengage Learning Chapter 2 The Structure of the Advertising...

  • Slide 1
  • 2009 South-Western, a part of Cengage Learning Chapter 2 The Structure of the Advertising Industry: Advertisers, Agencies, Media Companies, and Support Organizations PPT 2-1
  • Slide 2
  • Trends Affecting the Advertising and Promotion Industry The Undoing of Agency Consolidation and Globalizationor not Media Proliferation, Consolidation, and Multiplatform Media Organizations Media Clutter and Fragmentation Consumer Control: Blogs and TiVos Web 2.0 PPT 2-2
  • Slide 3
  • Scope of the Advertising Industry U.S. Advertising Spending >$300 B Worldwide Advertising Spending>$600B PPT 2-3
  • Slide 4
  • Structure of the Advertising Industry (text Ex. 2.5) PPT 2-4
  • Slide 5
  • Advertisers Trade Resellers Sears, McDonalds Manufacturers and Service Firms Procter & Gamble, Verizon Social/Not-for-profit Organizations United Way, Nature Conservancy Government Federal, State, Local PPT 2-5
  • Slide 6
  • PPT 2-6 In addition to companies, the government makes extensive use of advertising. Ad in Context Example
  • Slide 7
  • The Role of the Advertiser in IBP Describe the value that the firms brand provides Describe the brands position in the market Describe the firms objectives for the brand in the near-term and long-term Identify the target market(s) that are most likely to respond favorable to the brand Identify and manage the supply chain/distribution system that will most effectively reach the targets Be committed to using advertising and other promotional tools to grow the brand PPT 2-7
  • Slide 8
  • Agencies Advertising Agencies: Full-Service Creative Boutique Interactive In-House Media Specialists Promotion Agencies: Direct Marketing/ Database E-commerce Sales Promotion Event Planning Design Firms Public Relations Firms PPT 2-8
  • Slide 9
  • Full Service Agency Services Account Services Marketing Research Services Creative and Production Services Media Planning and Buying Services Administrative Services PPT 2-10
  • Slide 10
  • Agency Compensation Commissions: around 15% of airtime feesin flux 16 2/3 percent for outdoor media web media is all negotiated Markup Charges: production cost + fixed % Fee Systems: hourly rates, or by project Pay-for-Results: tightly-specified objectives PPT 2-11
  • Slide 11
  • External Facilitators Consultants Creative, Media, Database Production Facilitators Software Firms Web tracking, fulfillment PPT 2-12
  • Slide 12
  • Media Organizations Broadcast TV, radio Print Magazines, direct mail, Newspapers, specialty Interactive Media Internet, interactive broadcast, iPod, Cell Phone Support Media Outdoor, directories, sponsorship, Point-of-purchase, branded entertainment Media Conglomerates Time Warner, Disney, Turner PPT 2-13
  • Slide 13
  • Target Audiences Household Consumers Businesses Professionals Government Organizations PPT 2-14