Advertising Chapter 2 Key Terms

The structure of the advertising and promotion industry: advertisers, agencies, media, and support organizations

account planner

In an advertising agency, the professional who synthesizes all relevant consumer research and uses it to help the team design a coherent advertising strategy for a client’s brand or product.

account services

A team of agency managers that identifies the benefits a client’s brand offers, its target audiences, and the best competitive positioning, and then develops a complete promotion plan.

advertiser

Business, not-for-profit, or government organization that uses advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for its brands. Also called client by agency partners.

advertising agency

An organization of professionals who provide creative and business services to clients related to planning, preparing, and placing advertisements.

blog

Website frequented by individuals with common interests where they can post ideas, opinions, and personal experiences. Such sites have emerged as sophisticated (but not objective) sources of product and brand information.

branded apps

A mobile application that is branded, and some of which may feature advertising inside the app and/or encourage digital engagement.

chief compensation officers (ccos)

senior executive in charge of designing, managing, and overseeing an organization’s compensation strategy to ensure pay programs attract, motivate, and retain talent while aligning with business goals, performance outcomes, and legal requirements.You would align compensation programs with company strategy and performance metrics.

chief executive officers (ceos)

Usually is the highest ranking executive of a business who is in charge overall of running the business.

chief financial officers (cfos)

The executive who is responsible for the financials and monetary aspects or investments of the firm.

chief technology officers (ctos)

The executive who is in charge of technology and networks.

client

A business or customer served by or utilizing the services of an advertising agency, marketing firm, public relations firm, or business consultant. In advertising, are also at the brand level, and not just a person. You may hear in the halls of an ad agency, “we got the Nike client”, or “Apple is our client”. This way, the brand is “under protection” of the advertising agency.

commission system

A method of agency compensation based on the amount of money the advertiser spends on the media.

consolidated agency networks

Large holding companies that consist of many agencies or marketing groups.

consultant

Individuals who specialize in areas related to the promotional process.

contractor

A person or business that is hired to perform specific work or provide services under a contract, rather than as a permanent employee. Commonly in IBP, a contractor may be a contracted graphic designer, consultant, or other short-term help on a brand project or campaign.

consumer sales promotion

A type of price promotion to consumers (vs. businesses) that offers a discount on the price of a good or service sold for a temporary period.

content marketing

Creating and posting relevant informational messages for target audiences online and on social media, accessible whenever targeted decision makers are considering a purchase.

creative boutique

An advertising agency that emphasizes copywriting and artistic services to its clients.

creative services

A group that develops the message that will be delivered through advertising, sales promotion, direct marketing, event sponsorship, or public relations.

crowdsourcing

The online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers.

customer acquisition

Process by which a business attracts and gains new customers for its products or services. It includes all the strategies and activities used to bring people from awareness to their first purchase or sign-up.

database agency

Agency that helps customers construct databases of target customers, merge databases, develop promotional materials, and then execute the campaign.

designer

Specialist intimately involved with the execution of creative ideas and efforts.

digital/interactive agency

Agency that focuses on using online, mobile, and social media for direct marketing and target market communications for clients.

direct marketing agency

Agency that maintains large databases of mailing lists; some of these firms can also design direct marketing campaigns either through the mail or by telemarketing. Also called a direct response agency.

event-planning agency

Experts in finding locations, securing dates, and putting together a “team” of people to pull off a promotional event.

external facilitator

An organization or individual that provides specialized services to advertisers and agencies.

fee system

A method of agency compensation whereby the advertiser and the agency agree on an hourly rate for different services provided.

fulfillment center

Centers that ensure customers receive the product ordered through direct mail.

full-service agency

An advertising agency that typically includes an array of advertising professionals to meet all the promotional needs of clients.

in-house agency

The advertising department of a firm.

infomercial

A long advertisement that looks like a talk show or a half-hour product demonstration.

logo

A graphic mark that identifies a company and other visual representations that promote an identity for a firm.

markup charge

A method of agency compensation based on adding a percentage charge to a variety of services the agency purchases from outside suppliers.

media planning and buying services

Services related to media planning or buying that are provided by advertising agencies or specialized media-buying organizations.

media specialist

Organizations that specialize in buying media time and space and offer media strategy consulting to advertising agencies and advertisers.

pay-for-results

A compensation plan that results when a client and its agency agree to a set of results criteria on which the agency’s fee will be based.

production facilitator

An organization that offers essential services both during and after the production process.

production services

A team that takes creative ideas and turns them into advertisements, direct mail pieces, or events materials.

promotion agency

Specialized agencies that handle promotional efforts.

public relations firm

Firms that handle the needs of organizations regarding relationships with the media, local community, competitors, industry associations, and government organizations.

retainer

A fee paid in advance to secure the services of a professional or firm (such as a lawyer, consultant, or agency) for ongoing or future work.

social media

Highly accessible Web-based media that allow the sharing of information between individuals and between individuals and groups. Prominent examples are Facebook, Twitter, and LinkedIn.

steering organization

A group of expert advisors and professionals that help give direction and guide strategy and decisions on the brand or organization.

trade-market sales promotion

A type of sales promotion designed to motivate distributors, wholesalers, and retailers to stock and feature a firm’s brand in their merchandising programs.

trade reseller

Organizations in the marketing channel of distribution that buy products to resell to customers.

user interface

The point of human-computer interaction with a webpage, computer, website or app.

virtual reality

A newer technology that advertisers are using with computer models that allow a consumer to interact with 3-D visuals for an immersive, artificial experience.