The Scope of Advertising: From Local to Global

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Presentation transcript:

The Scope of Advertising: From Local to Global CHAPTER 3 The Scope of Advertising: From Local to Global

Do I Need an Advertising Agency? Company: XYZ Manufacturing Products: High quality molded plastic parts for medical and technical firms. Annual sales: $2,500,000 Ad Budget: 10% of sales: $250,000 Media: Trade Shows: $50,000 Direct Mail: $80,000 Postage: $20,000 Magazine Ads:$100,000 Do I need an Ad Agency? Do I need an in-house or outside Ad Agency? What selection criteria should I use?

Key Questions to Ask Potential Advertising Agencies Are the people who worked on the accounts featured in your presentation still employed by your agency? Will these same individuals be assigned to work on my account? In terms of budget, workload, etc. how does my account compare to other accounts handled by your agency? Who will be my account representative?

Advertising Agency Classification Geodemographic: Local Regional National International Scope of Service : Full-service General Consumer Business-to-Business Specialized Service Creative Boutiques Media-buying Service Interactive Agency

Advertising Agency Personnel Company CEO Category Managers Brand Managers V. P Marketing Director of Marketing Agency CEO Creative Director Art Director/Copy Chief Artists/Copywriters Media Buyers V. P. Account Executive

How Ad Agencies are Compensated Media Commissions: 15% Markups: 17.65% Fees: Straight fee Retainer Fee-commission Incentive system Pro Bono: Free

How Ad Agencies Get and Keep Business Referrals Presentations Networking Community Relations Advertising Stages in the Client/Agency Relationship Prerelationship Development Maintenance Termination

The Suppliers in Advertising Art Studios Web designers Copywriters Printers Film and Video Houses Research Companies Mailing Houses

The Media of Advertising Media is: Any paid means used to present an ad to its target audience. Traditional media: Print Newspapers Magazines Electronic Radio TV Digital Media: Internet Kiosks Out-of-Home Media: Outdoor Advertising Transit Advertising Direct Mail