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Principles of advertising-Ch. 3 textbook notes

by: Kelsey Voelker

Principles of advertising-Ch. 3 textbook notes Mcom 214

Marketplace > Towson University > mass communications > Mcom 214 > Principles of advertising Ch 3 textbook notes
Kelsey Voelker

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These are notes from chapter 3 of the textbook
Principles of Advertising
Dr. Rhee
Class Notes
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This 5 page Class Notes was uploaded by Kelsey Voelker on Friday September 30, 2016. The Class Notes belongs to Mcom 214 at Towson University taught by Dr. Rhee in Fall 2016. Since its upload, it has received 5 views. For similar materials see Principles of Advertising in mass communications at Towson University.


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Date Created: 09/30/16
Principles of advertising 9/16/16 Chapter 3 textbook Ch. 3 textbook notes The Advertising Industry  Organizations in advertising (2 distinct groups) o Advertisers clients; companies o Advertising agencies specialists who help advertisers plan, create, and prepare IMC campaigns o Suppliers the photographers, iillustrators, printers, digital service bureaus, video production houses, web developers, and others who assist advertisers and agencies in preparing advertising materials. o The media sells time (on radio/TV), and space or both for delivering the advertiser’s message to the target audience  The people in advertising o Most people are actually employed by advertisers rather than agencies The Advertisers (Clients)  Local advertising advertising by businesses within a city or county directed toward customers within the same geographic area. o *critically important because most consumer sales are made (or lost) locally  advertising manager the person who performs all the administrative, planning, budgeting, and coordinating functions. He or she may lay out ads, write ad copy, and select the media.  Product advertising advertising intended to promote goods and services; also a functional classification of advertising  Types of local advertising: o Delaers or local franchisees or national companies o Stores that sell a veriety of branded merchandise o Specialty businesses and services o Governmental and nonprofit organizations  (IMC) Integrated marketing communications joinging together in a consistent manner every element that communicates with customers including the actual delivery of the product or service  Creating local advertising: o Rely on different sources for creative help—from the local media, local ad agencies, freelancers and consultants, creative boutiques, syndicated art services, and the cooperative advertising programs  Cooperative Advertising: o Has two key purposes: to build the manufacturer’s brand image and to help distributors, dealers, or retailers, increase sales. Regional and National Advertisers  Operate in one part of the country in one or several states, and market exclusively within that region—regional advertisers  National advertisers—companies sell in several regions or throughout the country  *national advertisers plan strategically…local advertisers think tactically  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. How large companies manage their advertising  company owners and top corporate executives make key advertising decisions, sales, and marketing peronnel  brand managers: the individual within the advertiser’s company who is assigned the authority and responsibility for the successful marketing of a particular brand  decentralized 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  multinational corporations: corporations operating and investing throughout many countries and making decisions based on availabilities worldwide  global marketers: multinationals that use a standardized approach to marketing and advertising in all countries Media around the world  international media: media serving several countries, usually without change, that is available to an international audience  foreign media: the local media of each country used by advertisers for campaigns targeted to consumers or businesses within a single country The advertising agency  advertising agency: an independent organization or creative people and businesspeople who specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers  local agencies: advertising agencies that specialize in creating advertising for local businesses  regional agencies: advertising that focuses on the production and placement of advertising suitable for regional campaigns Types of Agencies  national agencies: advertising agencies that produce and place the quality of advertising suitable for national campaigns  international agencies: advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market internationally or globally  full-service advertising 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. Non-advertising functions include producing sales promotion materials, publicity articles, annual reports, trade show exhibits, and sales training materials.  General consumer agency: an agency that represents the widest variety of accounts, but it concentrates on companies that make goods purchased chiefly by consumers.  Business-to-business B2B agency: represents clients that market products to other businesses  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.  Media-buying service: an organization that specializes in purchasing and packaging radio and TV time  Interactive agency: an advertising agency that specializes in the creation of ads for a digital medium What people in Agencies do  Account executives (AEs): 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.  Management (account) supervisors o Who supervise account executives and who report to the agency’s director of account services  Account planning o 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  Media planning o The strategic identification and selection of media vehicles for a client’s advertising messages  Copy o The words that make up the headline and message of an advertisement or commercial  Copywriters o People who create the words and concepts for ads and commercials  Art directors o Along with graphic designers and production artists, individuals who determine how the ad’s verbal and visual symbols will fit together  Creative director o 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  Production department o the department in an advertising agency that is responsible for managing the steps that transform creative concepts into finished advertisements and collateral materials How agencies are structured  traffic department o the department in an advertising agency that coordinates all phases of production and makes sure everything is completed before the deadline  sales promotion department o in larger agencies, a staff to produce dealer ads, window posters, point-of-purchase displays, and dealer sales material.  Departmental system o The organization of an ad agency into departments based on function: account services, creative services, marketing services, and administration  Group system o The organization of an ad agency into a number of little agencies or groups, each with the various people required to meet the needs of the particular clients being served by the group. How agencies are compensated  Media commission o Compensation paid by a medium to recognized advertising agencies, traditionally 15 percent (16% percent for outdoor) for advertising placed with it  Markup o A source of agency income gained by adding some amount to a supplier’s bill, usually 17.65 percent  Fee-commission combination o 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  Straight-fee (retainer) method o 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.


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