The Promotion Industry in Transition

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Presentation transcript:

Chapter 2: THE PROMOTION INDUSTRY: MARKETERS, AGENCIES, and MEDIA ORGANIZATIONS 2.1

The Promotion Industry in Transition ALTERED BY SIX TRENDS Information in Marketplace is an Interactive System between Marketers and Consumers Proliferation of Cable TV, Direct-Marketing & Alternative New Media Causes Media Fragmentation Growing Investment in Advertising Causes Media Clutter New Communications/Distributions Channels are Growing in Influence Fragmentation of Marketing Budgets Resulting in Greater Portions of Budgets going to Trade & Consumer Promotions Improved Information Systems Allow Retailers & Distributors more Control over Marketing & Promotional Decisions 2.2

Structure of the Promotion Industry and Participants in the Process Marketers Manufacturers Resellers, retailers, Government and and service firms wholesalers, and social organizations distributors Advertising and Promotion Agencies Advertising agencies: Agency services: Agency compensation: Full-service agencies Account services Commission Creative boutiques Marketing research Markup charges Media-buying services Creative and production Fee system Interactive agencies services Pay-for-results In-house agencies Media planning research Promotion agencies: Direct marketing and database agencies E-Commerce agencies Event planning Design firms Public relations firms Sales staffing and training firms

Structure of the Promotion Industry and Participants in the Process (con’t) External Facilitators Marketing and Production facilitators advertising research Consultants firms Information intermediators Media Organizations And Trade Partners Media Organizations: Interactive media Trade Partners: Broadcast media Support media Wholesalers, distributors, Print media Media conglomerates retailers B-to-B trade communities Internet portals Target Audience(s) Household consumers Business and professional Government and social Trade resellers buyer organizations

Structure of Promotion Industry MARKETERS Manufacturing and Service Firms Trade Resellers Federal, State and Local Governments Social Organizations March of Dimes Nature Conservancy 2.5

Marketer that Relies on Advertising The U.S. Government is a Marketer that Relies on Advertising 2.5

Structure of Promotion Industry (con’t) AGENCIES Advertising Agencies Full Service Agency Creative Boutique Interactive Agency In-House Agency Media-Buying Agency 2.7

Use Advertising to Promote Their Services to New Clients Advertising Agencies Use Advertising to Promote Their Services to New Clients 2.7

Structure of Promotion Industry (con’t) AGENCIES (con’t) Promotional Agencies Direct Marketing and Database Agencies Fulfillment Centers E-Commerce Agencies Sales Promotion Agencies Consumer Sales Promotion Trade Sales Promotion Event-Planning Agencies Design Firms Logo Design Public Relations Firms Sales, Staffing, Training & Assessment Firms 2.9

Marketers Develop Logo Designs that Last, Like this Pillsbury Logo Design Firms Help Marketers Develop Logo Designs that Last, Like this Pillsbury Logo 2.9

Structure of Promotion Industry (con’t) AGENCIES (con’t) Agency Services Account Services Marketing Research Creative & Production Creative Services Production Services Media-Planning and Buying Administrative 2.11

Structure of Promotion Industry (con’t) AGENCIES (con’t) Agency Compensation Commissions Markup Charges Fee System Pay-for-Results 2.12

Structure of Promotion Industry (con’t) EXTERNAL FACILITATORS Marketing and Advertising Research Firms Consultants Production Facilitators Information Intermediators Trade Partners 2.13

Broadcast Media Interactive Media Print Media Support Media Media Organizations and Trade Partners Available to Marketers Broadcast Media Interactive Media Print Media Support Media Media Conglomerates Wholesalers, Retailers, B2B Communities, Portals 2.14

Portals Offer Marketers a New Media Outlet for Placing Advertising and Promotional Messages 2.14

Structure of Promotion Industry AUDIENCES Household Consumers Trade Resellers Business and Professional Buyers Government and Social Organizations 2.16

Marketers Use Promotion to Reach the Business and Professional Buyer Audiences 2.16