Promotions Industry

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Promotions Industry

• Marketers, Agencies and Media Organizations

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Important Trends in the Industry

• Two way flow, interaction
• More channels of communication cable, internet
  radio, MP3 downloads, satellite radio, DVD-movies
• No one communications channel can affect very
  large numbers
• Consumers shop, find, buy online.
• Sales promotions are more sophisticated
• Retail chains are more in control.

3
Ranked by Worldwide Revenue2003

• New York, 8.62 B
• London, 6.76B
• New York, 5.86

• Omnicom Group
• WPP Group
• Interpublic Group

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Top Agencies US2003

• J. Walter Thompson Co.
• Leo Burnett Worldwide
• McCann-Erickson Worldwide

• New York 456.2
• Chicago 404.2
• New York 300.4

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• Public Relations
• Fleishman-Hillard
• Ketchum
• Porter Novelli International
• Brodeur Worldwide
• Clark Weinstock
• Gavin Anderson Company
• Cone

Omnicom Public Relations
BBDO Worldwide
TBWA
OMNICOM GROUP
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British, WPP
J. Walter Thompson's began in 1864, making us the
world's oldest advertising agency brand. Today
8,500 employees in 150 cities and 86 countries J.
Walter Thompson ranks as the 4th largest global
agency and the largest U.S agency. We rank
among the top ten agencies in 70 of the world's
major markets.
From JWT
Website
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Marketers Manufacturers and Service
Advertising and Promotions Agencies
External Facilitators
Media Organizations and Trade Partners
Target Audience
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Manufacturers and Service Firms

• Unilever, Kraft, Citibank
• Mass media and promotions
• Manufactures national
• Services are national and local

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Trade Resellers

• Buy from others and resell
• Retailers are most visible retailers
• Include Wal-Mart, Metro, McDonalds
• Wholesalers
• Little need for mass media

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Advertising Agencies

• Provide creative an business services
• Very specialized talent
• Serve a number of different accounts or companies
• Constantly dealing with similar issues, much like
  an engineering or manufacturing firm.

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Agency Positions

• Account planners
• Account supervisors
• Art direction
• Creative
• Copywriters
• Producers TV and radio
• Researchers
• Artists
• Media buyers

Drcy Masius Benton Bowles
One Memorial Drive, St. Louis, MO
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Types of Agencies

• Full service
• Creative boutique
• Interactive agency. Digital first, but now
  Internet driven
• In-house agency, or in-house capabilities
• Media buying service

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Promotional Agencies

• Direct marketing and data base
• Compiled list of names and addresses
• Informercials
• E-commerce agencies
• Sales Promtions
• Events
• Design firms
• Public relations product pr

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Account Services

• A manager who works with the brand or company
  client
• A paired person with the marketing manager, or
  product manager
• Works with the various agency activities art,
  copy, media, production

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Marketing Service from Agency

• In-house work
• Find outsourcing work, who specialize in just
  research
• Some agencies use a an account planner from
  research in addition to the account services

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Creative And Production

• Presentation of the brands concept in a
  memorable and interesting way
• Promotional message
• Production services create the finished
  itemradio or TV, direct mail, even internet.

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Media Planning

• Files of media outlets tv, radio, newspaper,
  magazines
• Existing research on media, publication dates,
  audience, size, price, and then negotiations
• Interactive

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Media Planning And Buying Services

• No creative
• Just planning, buying and negotiating
• Focused
• Anheuser Bush has own in-house media

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Administration Services

• Traffic department
• Pulls creative and media dates together for key
  times.
• Billing for media, production and the clients

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How Agencies Get Paid

• Commission
• Mark up 15 to 20
• Fee system like a law firm. Different
  departments, people have different rates
• Pay-for-results

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Other Facilitators

• Marketing and advertising research firms
• Consultants
• Production houses
• Information Intermediators

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Simmons collects information on over 8,000 brands
in 460 product categories, creating detailed
consumer profiles with over 600 lifestyle
characteristics linked to every media genre
accessible in the United States.
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Starch Report

• ads in your publication are noticed and read
• verbatims that demonstrate to advertisers what
  your readers think of ads and/or brands
• world's largest print ad database to provide a
  context for all study results

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Roper Starch

• GfK NOP, LLC and GfK Automotive databases
• Roper Reports US
• Roper Reports Worldwide
• Starch Ad Readership
• AFI Automotive Intentions and Shopping
• Mediamark ResearchInc. Audience Measurement.

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Consultants

• Planning firm for organizing
• Building how to make a data base

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Production

• Print
• Radio
• TV
• Internet
• Artists, equipment, writers, stages, editing

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TRIBAL Productions Asia provides professional
video services to a wide range of corporate,
public relations, government, broadcast and
community organizations in China and throughout
Asia.
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Media and Trade Partners

• Owners of TV, newspapers, magazine, websites
• Content driven
• Trade wholesale, distributors

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Key Terms Chap 2

• Trade reseller
• Creative boutique
• In-house agency
• Informercial
• Public relations firm
• Account services
• Creative services
• Production

• Media planning
• Media organization
• Trade partner