The Scope of Advertising:From Local to Global

Introduces the people and groupswho work in advertising

The Advertising Industry:Organizations

Advertisers (Clients)

Agencies

Media

Suppliers

The Advertising Industry:People

SalesTechnology

Research

Accounting

Communication Arts

Management

Law

Most are employed by agencies, not clients

Advertisers:LocalDirected to customers in the same geographic area

Independent businesses

Govt. & nonprofits

Franchisees and dealers

Chain retailers

Advertisers:Local

Create favorable image, increase

awareness, foster goodwill

Recruit employees, offer

services, sell merchandise

Regular price-line, sale, or clearance

Types of local advertising

ClassifiedProduct Institutional

Advertisers:Regional and National

Regional: one or several states

National: several regionsor entire country

Agencies:Definition

Agencyroles

Develop marketing & ad plans

Develop ads & promotions

Purchase ad space and time

Agencies:Types

Reach

Full-Service

SpecialtyBoutiques Media

BuyersInteractive

Consumer

BTB

Local National

Regional

Global

Internatl

Agencies:People

Accountmanagement

Research & account planning

Media buying & planning

Production

Creative concepts

Trafficcontrol

Other servicesAdmin

Agencies:People

Many departments contributed to Honda’s dealer kit

Agencies:Compensation

•Media commissions

Ad ratecard price:

$100,000

Agencybuys adat 15%

discount:$85,000

Agencybills

clientfull ad

amount:$100,000

$15,000difference

is keptby theagency

Agencies:Compensation

•Media commissions•Markups

Agencybuys

materialsfor

campaign

Materialscost

$85,000

Agencybills for

materials plus a17.65%markup

Agency bills

$100,000which is

costs plus

markup

Agencies:Compensation

•Media commissions•Markups•Fees

Fee-commissioncombination

Straight-fee(retainer)method

Incentive system

Agencies:In-House

Pros

May save money

Allows tighter control

May permit greater attention to

the brand

Lower creative quality

Less experience and talent

Loss of objectivity

Cons

Agencies:Client Relationships

ReferralsPresentations

Community relations& networking

Soliciting fornew business

How agencies reach & attract new clients

Agencies:Client Relationships

DevelopmentPrerelationship TerminationMaintenance

Stages in the client-agency relationship

Suppliers

Art studios &web designers

Printers &related specialists

Film & videohouses

Researchcompanies

Media

Out-of-home

Digitalinteractive

Electronic

Print

Direct mail