Chapter 2 Flashcards
Crowd-sourcing
The online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers.
Advertisers/clients
Business, not-for-profit, and government organizations that use advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for their brand.
Advertising agency
An organization of professionals who provide creative and business services to clients in planning, preparing, and placing advertisements.
Full-service agency
An array of advertising professionals to meet all the promotional needs of clients.
Creative boutique
Creative concept development, copywriting, and artistic services to clients.
Media specialists
Organizations that specialize in buying media time and space and offer media strategy consulting to advertising agencies and advertisers.
Direct marketing agencies and data agencies
These agencies help advertisers construct databases of target consumers, merge databases, develop promotional materials, and then execute the campaign.
Infomercial
A television program that promotes a product in an informative and supposedly objective way.
Interruptive engagement
♣ Telemarketing
♣ Email spam
5 trends influencing the IBP industry
- Consumer control (more control of the info they receive)
- Media ownership (consolidation)
- More media options (fragmentation and more IBP tactics)
- Crowdsourcing
- Mobile marketing (reach consumers everywhere)
Advertisers must be prepared to work with agencies through (6 steps)
- Value - should understand their brand’s key value(s)
- Competition - should understand their brand’s market position
- Objectives - should understand their brand’s short- and long-term objectives
- Audience - should understand their brand’s target audience(s)
- Logistics - should understand how they get their product to the audience
- Marketing - should understand how ADV and IBP fit into the bigger picture
Promotion Agency
an organization of professionals who provide creative and business services to clients in
preparing, planning, and placing IBP tactics.
Goodness of fit
the extent to which observed data match the values expected by theory.
Advertising Agencies (5 types)
♣ Full-service - can meet all the promotional needs of a client
♣ Creative boutiques - creative concept development and services – idea factories.
♣ Digital/Interactive - specialize in web-based marketing
♣ In-house - ADV and IBP done from within a company (ex. Revlon).
♣ Media specialists - specialize in media strategy and buying
Promotion Agencies (5 types)
♣ Direct Marketing - maintain and manage databases of mailing lists.
♣ Sales Promotion - design and implement sales promotions (coupons, sweepstakes, sampling, rebates, etc.)
♣ Event Planning - organize, implement, and promote events
♣ Design - specialize in design and graphics (logos, packaging, etc.)
♣ PR - manage relationship with a brand’s publics
How agency’s get paid
♣ Commissions
♣ Markup Charges
♣ Fee System
♣ Pay-for-Results
External Facilitators
Provide specialized services to advertisers and agencies
External Facilitators (4 Types)
Research - provide, collect, and analyze relevant data
Consultants - specialize in different aspects of IBP – media, creative, etc.
Production - broadcast, camera, lighting, songwriting, facilities, etc.
Software - provide specialized software to gather and analyze data.
Crowdsourcing ad campaign creation (benefits)
‣ New ideas ‣ Cheap ideas ‣ Unconventional ideas ‣ Connecting with new talent ‣ Empowering new talent via professional development and money
Crowdsourcing ad campaign creation (risks)
‣ Exploiting labor
‣ Driving prices down
‣ Eroding connections with agencies that are invested in your brand
‣ Losing site of the bigger picture (the brand image)
‣ Message inconsistency
Crowdsourcing product innovation (benefits)
‣ Demonstrates listening ‣ Enables meaningful engagement ‣ Builds trust ‣ Builds customer satisfaction ‣ Boosts customer brand investment ‣ Improves word-of-mouth
Crowdsourcing product innovation (risks)
‣ Lack of message control
‣ Brand bashing
‣ Legal problems?
Account services definition
Identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan.
Account planner definition
Assigned to clients to ensure that research input is included at each stage of development of campaign materials.
Creative services group tasks
Develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations.
Media planners and buyers tasks
Examine an enormous number of options to put together an effective media plan within the clients budget
Commission payment system
Commission is a sum of money that is paid to an employee upon completion of a task, usually selling a certain amount of goods or services. It can be paid as a percentage of the sale or as a flat dollar amount based on sales volume. Employers often use sales commissions as incentives to increase worker productivity.
Markup charges definition
Markup is the difference between the cost of a good or service and its selling price. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.
