Chapter Two Outline - Chapter 2 The Promotion Industry...

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Chapter 2 The Promotion Industry
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Promotion Industry Trends Consolidation into giant full-service advertising agencies to provide a large array of fully integrated services. Limitations of these giant agencies include a possible lack of specialization and creativity of smaller shops, conflicts of interest with multiple businesses, unwieldy size and debt. The “unconsolidation” of some of these agencies seems inevitable. Narrower media control due to relaxed FCC regulations and media consolidation Media clutter due to new and increased media options and resulting in fewer focused media outlets to reach target audiences Consumer control has increased due to interactive media such as Internet, social media, DVRs, etc.
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Promotion Industry Trends, Continued Not to be outdone, the Web has its own media conglomerates. InterActiveCorp (IAC) has amassed a media empire of Internet sites that include Ask.com, Match.com, Evite, and Dictionary.com. Together, these sites generate about $7 billion in revenue, which makes IAC nearly as big as better-known Internet merchants, but much more diversified.
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Marketers are 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 brands. Marketers include: manufacturers and service firms; trade resellers; federal, state, and local governments; social and not-for-profit organizations. Marketers who hire advertising and promotional agencies are responsible for defining and managing the brand values and objectives as well as the market position, target, and supply/demand chains. Industry Scope and Structure
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Advertising and Promotion Agencies An advertising agency is an organization that provides creative and business services to clients in planning, preparing, and placing advertisements. Promotion agencies handle specific promotional efforts, including sampling, event promotions, or promotional tie-ins. External facilitators are organizations or individuals that provide specialized services to marketers and agencies that may need more expertise in areas such as research, consulting, production, and software. Media organizations own and manage the media access to consumers. Target audiences are the consumers advertising and promotional efforts are directed towards. If there is no audience no communication can take place. Industry Scope and Structure Continued
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Industry Scope and Structure, Continued Exhibit 2.1 Structure of the Promotion Industry
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Advertising and Promotion Agencies Most marketers use the services of an advertising agency. It is up to the marketer to determine which agency or set of agencies fulfill the marketing company’s needs. Full service agencies
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Chapter Two Outline - Chapter 2 The Promotion Industry...

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