Chapter 2: 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.

advertisement

A specific message that an organization has placed to persuade an audience.

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 Executive Officer (CEO)

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

Chief Financial Officer (CFO)

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

Chief Technology Officer (CTO)

The executive who is in charge of technology and networks.

client

The company or organization that pays for advertising. Also called the sponsor.

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

Individual who specializes in areas related to the promotional process.

consumer sales promotion

A type of sales promotion aimed at consumers that focuses on price-off deals, coupons, sampling, rebates, and premiums.

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.

Croudsourcing

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

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-response agency

Also called direct marketing agency.

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.

new customer acquisition

When a company or business gains a first-time client or customer, which is a goal for many companies especially when the new customer comes from a competitor.

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.

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.

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

(UI) 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.

trade reseller

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

promotion agencies

Specialized agencies that handle promotional efforts.

creative services

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