Textbook Notes (280,000)
CA (170,000)
BUS (10)
Chapter 2

Advertising-Chapter 2 Notes

Course Code

of 9
Chapter 2
Composition of the Advertising Industry
3 Primary Groups
oAdvertisers (the client) – include manufacturers, retailers, service firms,
technology companies and non-profit organizations
ACA was created for the express purpose of serving the interests of
companies that market and advertise their products and services in
Canada. The primary goal is to help members maximize the value
of their marketing communication investments.
oAdvertising Agencies – service organizations responsible for creating,
planning, producing, and placing advertising messages for clients.
Institute of Communication Agencies (ICA) – the national
association representing full-service agencies.
External – mission is to act on behalf of the agency industry
as spokesperson, negotiator, and defender of advertising.
Internal – anticipate, serve, and promote collective interests
of ICA members with particular regard to defining,
developing, and helping maintain the highest possible
standards of professional practice.
Broadcast – radio, TV
Print – newspapers and magazines
Out-of-Home – transit and outdoor advertising
Direct-Response – direct mail and direct-response television
Digital – internet and various forms of mobile communications
Advertising Support Companies
Comprises research companies the measure and evaluate the effectiveness of
advertising messages
Other support firms include
oRadio and TV commercial production houses
oPrint Production Specialists
oMusic and Sound production and editing companies
oMedia representatives who sell time and space for particular media
Media Support Services
All major media in Canada have a support group whose primary mandate is to
educate potential advertisers about the merits of their particular medium.
Acts as a resource centre of information, each organization attempts to increase its
medium’s share of advertising revenue in the marketplace.
Also liaise with governments and the public on matters of interest
Research and Audience Measurement Companies
Media research is concerned with quantitative measures of media exposure.
In Canada, numerous independent organizations compile and publish reliable
measurement data.
Client-Side Advertising Management
Brand Manager (Product Manager) – an individual who is assigned responsibility
for the development and implementation of marketing programs for a specific
product or group of products.
oDeals directly with the agencies on practice and media assignments, sales
promotion programs, event marketing activities, direct-response and
interactive communications and public relations. Internally, encourages
friendly competition as managers compete for the resources of the firm to
insure that their product receives the attention it deserves.
Category Manager – individual who is assigned the responsibility of developing an
implementing the marketing activity for all products grouped in the category.
Advertising Manager – individual responsible for advertising in the client
Coordinating Advertising with Other Marketing Communications
Sales promotion, event marketing, public relations, and marketing research.
Advertising manager is responsible for integrating the various marketing
communications activities with advertising activities and plans
Monitoring the Advertising Program
Advertising manager ensures the advertising execution is in accordance with the
actual plan.
The manager carefully reviews budgets and planned media expenditures throughout
the year, making changes when necessary.
Evaluating the Advertising Program
The advertising manager is accountable for the success or failure of company
advertising programs
He evaluation process is critical, as the advertising manager must make
recommendations for changes in advertising direction if research information so
Liaison With Advertising Agency
Advertising managers are the direct link with the advertising agency and hence they
are in constant contact with agency personnel, checking the status of assignments
and projects that the agency may be working on.
One of the key responsibilities is providing the agency with appropriate information
when new assignments occur
As the intermediary, the manager is often in the hot seat, because individuals and
their egos must be satisfied at both ends of the advertising spectrum
oResponsible for developing advertising that will be acceptable to all
company personnel, who must approve the program.
From the viewpoint of the agency, the advertising manager is the person it must
satisfy first.
From the viewpoint of the client, once the creative or media assignment meets that
specifications outlined in the marketing plan or briefing document, the advertising
manager must carry the agency proposal through the corporate approval network.
Advertising Agency Roles and Responsibilities
Perform various functions, tailoring their services to meet the specific needs of
individual clients.
Actual degree of the agency’s involvement and responsibility may vary among
clients, depending on factors such as the size and expertise of the client company.
Provide Experience and Expertise in Communications
Clients normally develop a comprehensive marketing plan that embraces all
elements of the marketing mix.
The agency will develop, in more detail, elements from the communications
component of the plan.
oSpecifically, the agency will use the guidelines and objectives established in
the marketing plan to develop and execute an advertising plan that will
contribute to the achievement of the client’s objectives.
Provide Planning Assistance
The agency, though its account group, provides assistance not only in advertising
but also in other areas of marketing.
Provide Objectivity in the Planning Process
Many advertisers tend to use advertising that suits the company’s established style
or image.
Clients often view a change in direction as a risk
Taking risks in adopting new directions is becoming increasingly necessary as
advertisers attempt to reach and attract mobile consumers
Promote Active Liaison with Clients
Very important for agencies and clients to communicate regularly with each other
Account executive is the primary link between the agency and the client