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2 groups exerting power and control |
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Definition
consumers and advertisers |
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insisting on convenience and control in the media exposure (tivo) -makes branding more important because they choose what and where they will be exposed to these messages |
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brand is going to have to be a part of their daly life -Coke paying to have cups used by American Idol judges |
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set against the backdrop of constant industry and consumer transition, the adv process will not change |
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4 Major Trends affecting Ad/Promo Industry |
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Definition
1. Undoing of Agency Consolidation and Globalization 2. Media Proliferation (expansion) and Consolidation 3.Media Clutter and Fragmentation 4. Consumer Control: Blogs-Tivo |
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Undoing of Agency Consolidation and Globalization |
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Definition
many olittle companies combined into big ones -clients felt they were missing out on creativity of small ones -not always profitable, debt increase for ad companies |
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Media Proliferation and Consolidation |
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Definition
-control of media has always been a driving force behind media companies -FCC says a single company can own TCV stations that reach up to 45% of US houses -also ended a ban on joint ownership of newspaper and broadcast station in a city -media companies will expand if it can -dangerous potential consolidation of power to influence/corrupt?? |
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Media Clutter and Fragmentation |
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Definition
-increasingly more ways to reach consumers, average consumer has access to 100 channels -new and increased media has resulted in clutter making effectiveness of ads decrease -turned to promotional tie ins -consumers expressing a desire for commerce experience -Miller light chairs for game day |
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Term
Consumer Control: Blogs-Tivo |
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Definition
-blogs as product and brand info -tivo allowing to skip adv all together 1/4 houses will have it by 2007 -to combat that make ads more entertaining, creative, and informative -blogs and info from these=caveat emptor on multiple dimensions? |
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Term
Problem for luxury brands |
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Definition
Knockoffs, Vp of marketing for Louis Vuitton stresses that making brand is important in helping luxury brands establish themselves, placing brands with right people and with right programs adds validity to the brand |
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Definition
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Companies that invested over $3 billion in adv in 2003 |
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Definition
General Motors, Proctor & Gamble, Time Warner |
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Definition
1. Advertisers 2. Advertising and promotion agencies 3. external facilitators 4. media organizations 5. target audiences |
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Definition
-manufacturers and service firms -trade sellers: all organizations in the marketing channel of distribution tha tbuy products to resell to consumers -federal, state, and local govts -social organizations (red cross) *advertisers have to do their homework to help agency do its job effectively |
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Definition
*-an organization of professionals who provide creative and business services to clients in planning, preparing, and placing ads, and other IBP promotions -to reflect range of promotions, events, PR, startegies that good ad agencies suggest to clients |
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Term
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Definition
1. full service agency-array of adv professionals to meet promotional needs of clients 2. creative boutiques-emphasizes creative concept development copywriting and artistic services to clients, idea factories 3. interactive agencies-help advertisers prepare communications for new media 4. in house agencies-adv department in a firm and takes responsibility for the planning and preparation of adv materials, greater coordination 5. media specialists-specialize in buying media time and space and offer media strategy consulting to agencies |
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Definition
1. Direct Marketing-large databases of mailing lists 2. E-commerce Agencies-help firms conduct all forms of promotion through electronic media, internet, sweepstakes, coupons 3. Sales Promotion-operate contests, special displays, coupon campaigns, experts at making incentive programs 4. Event Planning-experts at finding locations and dates, put together a promotional event and makes sure there is publicity for it 5. Design Firms-create a logo for a firm or graphic mark that will indentify the company, designs packaging, brochures, banners 6. PR Firms-manage an organization's relationships with media, community, competitors, government |
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Definition
5-60 minute informational program that promotes a brand and offers direct purchase to viewers |
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Definition
1. Account Services-work with clients and develop a complete promotion plan, translate consumer values to ads through creative services, develop media strategy 2. Marketing Research Services-reserach group will help the client interpret the research and communicate interpretations to creative and media people, *research is key to successful promotional campaigns 3. Creative and Production Services-develops the message that will be delivered through advertising in interesting and memorable ways 4. Adeministrative Services-managing business to make sure deadlines are met 5. Media Planning and Buying-advertisers can contract for media buying and planning to determine how a client's message can most effectively reach a target audience |
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Definition
1. Commision-published rate for the air time is 1 million dollars, the agency bills their client this amount, takes less a 15% discount off the published rate to determine what the agency pays the TV network 2. Markup charges 3. Fee system 4. Pay for results |
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Definition
-offers advertisers the chance to target very specific audiences -allows users to customize their programming/news broadcasts to their personal preferences -adv cdan target different types of audiences using broadband for interactive broadcasts |
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-online computer services -home shopping broadcasts -interactive broadcast entertainment programming -kiosks -CD roms -internet |
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