ADVT 250 1st Edition Lecture 2Outline of Last Lecture I. What Advertising IsII. Types of AdvertisingIII. Functions of AdvertisingOutline of Current Lecture II. Components of the Advertising IndustryIII. The Advertising Industry StructureCurrent LectureII.) Components of the Advertising Industry The advertising industry consists of many different components and this lecture tells us, in detail, about those components. 1.) The Marketer: The marketer is to corporation that is in need of doing the marketing or advertising such as Nike, Coke, Delta Airlines, Walt Disney World, etc. 2.) Marketing Communication Specialists: There are many different ways that marketers will communicate with the consumers and these are examples of agencies that corporations willhire to get their message to the consumers. Advertising Agencies, Direct Marketing Agencies, Digital Agencies, Logo Design Agencies, Brand Strategy Agencies. 3.) Research Suppliers: These companies produce research through either syndicated or custom research. Syndicated research happens over a long period of time and track how people will behave in regards to a product or service. Custom researchers work directly for the company attempting to answer a very specific question. Research suppliers employ: researchers, field officers, statisticians, writers, and sales people. 4.) Production Companies: Productions companies produce media in regards to a product or service. Production companies specialize by type of media (print, video, digital, etc.) Production companies employ: people with specific technical skills. 5.) Freelancers: Individuals from various disciplines who are “self-employed”. (Photographers, writers, designers, researchers, web specialists, social media specialists).6.) Media Planning/ Buying Agencies: These are companies that specialize in placing advertising in media. (ex: CIA, OMD, Universal McCann, and Mindshare.)7.) Media Companies: A business that delivers entertainment/news/programming. Example: ABC, CBS, NBC, HGTV, ESPN, TVLAND. Media companies employ: Advertising sales representative, marketing people (Brand), marketing people (distribution).These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.8.) Government: Various government agencies regulate advertising, such as FTC, FDA, SEC, and FCC.9.) Legal: Some lawyers specialize in business law with emphasis on advertising. All major marketers and advertising agencies have legal counsel. III.) The Advertising Industry Structure1.) Marketer Structure: Advertising structure located under the marketing function2.) Centralized structure: All advertising decisions made in one place. Companies with one or few brands. Example: Wal-Mart3.) Decentralized structure: decisions about advertising are made at different/ multi levels depending on the needs of the company. Ex: P & G brand. P & G isn’t the important brand, but they have many other brands under them and each brand has their own marketing team (Tide, Dawn, Crest). These companies can even have competing brands within the same category. Brands can also have different marketing teams in countries. There are also regional differences to take into consideration with advertising. For example, advertising to someone in North Dakota verses someone in California. 4.) Marketer Decisions: Marketers have many things to consider when making advertising decisions. Some things they have to consider are: Marketing allocation/budget, Promotions allocation (advertising allocation, sales promotion allocation, Public relations allocation, sales support allocation, etc.) Marketers get to make the final decision regarding advertising. Marketing effectiveness is evaluated by whether goals are achieved. 5.) Advertising Planning: Marketers may do advertising planning either alone or with partners. Alone (in-house) example: Calvin Klein makes all their own advertising. With partners example: P &