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Scope of Advertisement From Local To Global

This document discusses advertising agencies and the advertising process. It begins by asking whether a manufacturing company needs an advertising agency and what criteria to consider when selecting one. It then provides questions to ask potential agencies and how agencies are classified by geographic scope and services provided. The document also outlines agency personnel, compensation structures, how agencies get new business, suppliers involved in advertising, and different media channels.

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amir
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317 views

Scope of Advertisement From Local To Global

This document discusses advertising agencies and the advertising process. It begins by asking whether a manufacturing company needs an advertising agency and what criteria to consider when selecting one. It then provides questions to ask potential agencies and how agencies are classified by geographic scope and services provided. The document also outlines agency personnel, compensation structures, how agencies get new business, suppliers involved in advertising, and different media channels.

Uploaded by

amir
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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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
1. Are the people who worked on
the accounts featured in your
presentation still employed by
your agency?
2. Will these same individuals be
assigned to work on my
account?
3. In terms of budget, workload,
etc. how does my account
compare to other accounts
handled by your agency?
4. 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 Agency CEO

V. P Marketing V. P.
Director of Marketing Account Executive

Creative Director
Category Managers
Art Director/Copy Chief

Artists/Copywriters
Brand Managers
Media Buyers
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

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