广告英语精要教案Chap003.doc

Chapter 03 - The Business of Advertising
CHAPTER 03
THE BUSINESS OF ADVERTISING

OBJECTIVES
The main objective for this chapter is to introduce the people and groups who create, produce, and run advertising here and abroad. Advertising people may serve in a variety of roles. This chapter discusses the basic tasks of both the agency and the client, the roles of suppliers and the media, the way agencies acquire clients and are compensated, and the overall relationship between the agency and the client (p. 58).
After studying this chapter, your students will be able to:
Slides 3–2, 3-3
1. Describe the various groups in the advertising business and explain their relationship to one another.
2. Explain the differences between local and national advertisers.
3. Explain how advertisers organize themselves to manage their advertising both here and abroad.
4. Define the main types of advertising agencies.
5. Explain the range of tasks people perform in an ad agency and an in-house advertising department.
6. Discuss how agencies get new clients and how they make money.
7. Debate the pros and cons of an in-house advertising agency.
8. Explain how the suppliers and the media help advertisers and agencies.
9. Describe changes taking place in the advertising industry.

TEACHING TIPS AND STRATEGIES
Using the opening vignette in the classroom
The opening vignette offers instructors a number of topics to introduce and discuss, including: a) the role of an advertising agency, b) the use of a specialty agency like Muse Communications, and c) the role of a strategic planner like Shelley Yamane. Consider introducing students to Muse by visiting their Web site, . The site will open with a personal message from Jo Muse himself. You can explore the site with students to look at client rosters and samples of the work that Muse produces. As of the writing of this book there are excellent examples of ads for Honda, including some in Japanese!
Other tips and strategies
During this section of your course take the time to extend an invitation to a local agency or advertiser professional to be a guest speaker. Nothing contributes to student perceptions of the reality of the profession like an opportunity to hear from someone in the business. It is generally worthwhile to offer specific suggestions to any classroom guest concerning the tone and content of their talk, the length of the talk, the importance of reserving time for questions and answers, etc. Also give the speaker some sense of how sophisticated students are likely to be about advertising in general. Be sure to work out all audio-visual issues in advance, as the speaker may wish to show ads or use slides.
Since many students in the class are considering jobs in advertising, I usually check the latest Ad Age salary survey to determine what people are making in advertising agencies. I point out that the numbers represent averages, and that salaries can be substantially higher or lower depending on factors such as experience, agency size, and agency location.
The goal of this chapter is to convey the role of advertising agencies, client/agency relationship, and local/national advertising. In a former job, I worked for a CBS affiliate television station for over two years. I saw firsthand how agency relationships work. I will try to give the instructor a brief synopsis of my experiences to share with the class.
Advertising agencies I worked with tended to get 15 percent of the total dollars the customer spent on advertising. As the instructor knows, this means that, if an advertiser spent $100,000 total on advertising, the agency received a commission of $15,000. None of the agencies I worked at were paid on a fee basis. I didn’t like this commission structure of the agencies I worked with; regardless of the effectiveness of the advertising, the agency still got paid.
One of the biggest problems I had with local advertisers wasn’t a money issue, as I thought it would be. The problem was that they would have set ideas for a commercial, or they would want to see their commercial during their favorite television programs. On the surface, this doesn’t seem like a big deal, yet many times a client’s idea of an effective ad or their favorite television programs were not a good fit for the brand or service they were trying to sell.
I remember a furniture store that had their whole family in an ad. There were over 20 family members with a part in one 30-second commercial. This strained my relationships with the producers of the commercial, and it also hurt my relationship with the advertiser when the ad failed to be effective. In the end, the agency, not the client, gets blamed for an ineffective ad.
One way to get around this with local advertisers is to put one or two spots in a show they like and then create a media plan that works for the advertiser. Using specialized computer programs such as TVscan, I was able to create effective media plans that were able to calculate target markets.
Advertising agencies do earn their money. They help create the concept of an ad, and work with the client one-on-one to get where they want them to go. The advertising agencies I worked with had a media buyer (responsible for purchasing the TV and radio spots, billboards, magazine ads, etc.). This person usually has several years of experience in determining what type of media plan works best and puts this knowledge to work for the client.
The biggest challenge for advertising agencies in my opinion is helping the client create an effective commercial. Many times I was challenged by clients who wanted a commercial but had no idea how to tell us what they wanted. One secret I learned from a producer was to generate ideas by first figuring out who the target market is. Then it was easier to convince the client to buy into the idea and give the client credit (ownership) for the idea. This really worked well.
One of the biggest lessons I learned about advertising is that there is no rock-solid formula to it. To illustrate this point, as a media buyer of a large advertising agency once told me, “we buy everything—television, radio, billboards, magazine ads—and at the end of the day, we hope that it works.” I think that sums up advertising; what works for one client might not work for the next one and vice versa.
Web Resources for Enhancing your Lectures:
AAAA
http://www.aaaa.org/eweb/startpage.aspx
Advertising Age

Advertising Age Data Center

Procter & Gamble

Honda USA

Muse Communications

WPP

LECTURE OUTLINE
I. Vignette: The Civic Nation story (p. 57)
Civic Nation ad (p. 57)
Muse Communications recognized that the new generation of Honda Civic buyers was united by geography, age, and lifestyle, not ethnicity.

II. The Advertising Industry (p. 58)
Because every successful company needs to advertise, many people, besides those usually thought of as advertising people, are involved in the ad industry.
Slide 3–4
A. The Organizations in Advertising (p. 58)
1. Advertisers (or clients)—companies that advertise themselves and their products
2. Advertising agencies—companies that plan, create, and prepare clients’ ad campaigns and promotional materials
3. Suppliers—include the photographers, illustrators, printers, digital service bureaus, color film separators, video production houses, and others who assist both advertisers and agencies in preparing advertising materials. Also includes consultants, research firms, and other professional services that work with both advertisers and agencies.
4. Media—companies that sell time (electronic media) and space (print media) to carry the advertiser’s message to the target audience.
B. The People in Advertising (p. 58)
1. When people think of advertising, they imagine the copywriters and art directors who work for ad agencies. But the majority of people in advertising are actually employed by the advertisers.
2. Many other people work for the suppliers and the media. They’re in advertising, too. The fact is, advertising is a very broad field that employs a wide variety of people in sales, research, management, accounting, computer science, and law, as well as specialists in the various communication arts—artists, writers, photographers, musicians, performers, and cinematographers.
a Concept Check 3–1 What are the four major groups involved in the advertising industry and what are their primary functions (p.58)
1. Advertisers- that advertise themselves and their products
2. Advertising Agencies- companies that plan, create, and prepare clients’ ad campaigns and promotional materials
3. Suppliers- Assist both advertisers and agencies in preparing advertising materials.
4. Media- companies that sell time (electronic media) and space (print media) to carry the advertiser’s message to the target audience.

III. The Advertisers (Clients) (p. 58)
The people who buy advertising are the advertisers, or “clients,” a diverse group ranging in size from small, mom-and-pop retail stores to huge conglomerates.
A. Local Advertising: Where the Action Is (p. 58)
Slide 3–5
Baja Grill ad (p. 59)
Example: Rubio’s Baja Grill local advertisers (p. 59). Rubio’s, a restaurant specializing in fish tacos, used local advertising. After 15 years, Ralph Rubio’s company has grown from one location to 111 restaurants in five states, doing over $85 million in annual sales.
Loehmann’s Plaza ad (p. 59)
B. Advertising by businesses within a city or county directed toward customers within the same geographic area is called local advertising. It is sometimes called “retail advertising” because so much of it is placed by retail stores. Local advertising is critically important because most consumer sales are made—or lost—locally.
1. Types of Local Advertisers (p. 59)—four main types
a. Dealers or local franchises of regional or national companies
b. Stores that sell a variety of branded merchandise
c. Specialty businesses and services
d. Governmental, quasi-governmental, and nonprofit organizations
Exhibit 3–1 Department structure for small advertisers with high volumes of work, such as grocery-store chains (p. 60) (exhibit is on Slide 3–6)
2. Types of Local Advertising (p. 60)

Slide 3–7
a. Product advertising promotes a specific product or service. Sale advertising involves placing items on sale, offering two-for-one specials, or reducing prices.
b. Institutional advertising attempts to create a favorable long-term perception of the business as a whole, not just a particular product or service. Promotes an idea about the company to build reputation and image (used by banks, professional firms, hospitals, restaurants).
Michaels ad: example of a local institutional ad (p. 60)
c. Classified advertising—Text ads listed under classification headers are used by local advertisers to recruit employees, offer services (employment agencies or business opportunity broker), and sell or lease new or used merchandise (such as cars, real estate, and office equipment).
3. Local advertisers: The Original Integrators (p. 60)
Local advertisers have been using integrated marketing communications (IMC) for a long time. Integrated marketing communications (IMC)—involves joining together in a consistent manner every element that communicates with customers. Ralph Rubio developed a “relationship” with his customers using a variety of communication techniques in a variety of media.
Hoover’s SteamVac ad (p. 61)
4. Creating local advertising (p. 61)
In 1951, Cal Worthington began pitching his Southern California car dealerships, and he’s still at it today, sponsoring third-rate movies on late-night and Saturday afternoon TV, using zany ads where he appears in cowboy garb with a different domesticated wild animal, all introduced as “my dog Spot.” To direct and control the creative aspects of their ads and ensure consistency, local advertisers should follow a list of do’s and don’ts (see the Checklist on p. 62). Local advertisers get creative help from a variety of sources, including media reps, local ad agencies, freelancers and consultants, creative boutiques, syndicated art services, and from the cooperative ad programs of wholesalers, manufacturers, and trade associations.
5. Cooperative (Co-op) Advertising—ready-made advertising, cooperative programs, or merchandising support
Exhibit 3–2 The importance of co-op advertising dollars (p. 61) (exhibit is on Slide 3–8)
The key purposes for co-op advertising:
a. Build the manufacturer’s brand image.
b. Help distributors, dealers, or retailers to make more sales.
C. Regional and National Advertisers (p. 61)
Exhibit 3–3 Top 10 advertisers in the U.S. 2005 (p. 62) (exhibit is on Slide 3–10)
Checklist Creating Local Advertising (p. 62)
Regional advertisers are companies that operate in one part of the country and market exclusively within that region. Typical examples are grocery and department store chains, government bodies (e.g., state lotteries), franchise groups (Southern California Toyota Dealers), telephone companies (NYNEX), and some banks.
National advertisers are companies that sell in several regions and throughout the country. Typically include consumer package-goods manufacturers (Procter & Gamble and RJR Nabisco), national airlines (United, American), media and entertainment companies (Disney, Time Warner), electronics manufacturers (Macintosh, HP), and all the auto companies. These firms make up the membership of the Association of National Advertisers (ANA), and comprise the largest advertisers in the country.
Exhibit 3–4 Differences between local and national advertisers (p. 63) (exhibit is on Slide 3–9)
1. How National and Local Advertisers Differ (pp. 63)
Commercial Break 3–A The Co-op Marriage (p. 63)
Basic principles remain the same for both national and local advertisers, but local advertisers have special challenges stemming from the day-to-day realities of running a small business. Hence, national and local advertisers differ in:
a. Focus
1.) National advertisers
a.) Focus on building brands (ads focus on competitive features)
b.) Compete with only a few others for large market shares
c.) Plan strategically to launch, build, and sustain brands
d.) Marketing executives rarely see customers; they think in terms of large groups (segments, niches, target markets) and design ads to speak to these markets, getting feedback via customer complaint lines, etc.
2.) Local merchants
a.) Carry hundreds of different brands, so the focus is on attracting customers to a particular point—their place of business.
b.) Compete with many companies for individual customers and sales volume.
c.) Think tactically (Stay open Labor Day? Buy a new sign?).
d.