Ch. 2 notes part 2

Key Players * Marketer: (advertiser or client) any company, manufacturer, or organization behind the brand *Product/Brand Management: organization structure with managers who handle the marketing responsibility *Suppliers and Vendors: supply the raw materials to make a product --Supply chain: refers to the complex network of suppliers who produce materials to sell to the manufacturers --Ingredient branding: acknowledging a supplier?s brand as an important product Feature *Distributors and Retailers --Distribution chain / channel of distribution: various companies involved in moving a product from its manufacturer to its buyers?channel members may take ownership of product and participate in marketing it --the trade: both the upstream players (suppliers/vendors) and the downstream players (distribution chain companies) *Marketing Partners --marketers are partners with their suppliers, distributers, and marketing communication agencies?they are not just hired hands because all of them are needed to maintain good customer relations --affiliate marketing: when one company drives business to another company (ebay w/ amazon.com w/ barnes & noble)?may receive commissions Agencies and Their Clients *Advertising Department: act as a liaison btwn the marketing department and the advertising agencies. Also called marketing services: hire/fire agencies and manage the work of the marketing communication suppliers *pitch: formal presentation of an agency?s competencies and ideas for the client?s advertising *Benefits of hiring an agency: specialized services, objective advice, experienced staffing, and tailored management of advertising activities and personnel Types of Agencies *Full-service agency: biggest agencies and has 4 main staff functions?account management, creative services, media planning, and account planning. They also have several different departments: accounting, traffic, creative, and human resources *Many agencies are not full-service agencies?instead, they specialize in certain functions *Creative Boutiques: ad agencies made up of only 2-12 (or so) people that focus only on the creative execution of the idea or the creative product?may serve companies or full-service agencies *media-buying services: agencies that buy media for clients?are in high demand How Agency Jobs are Organized *Account management: liaison btwn the client and the agency --has 3 levels: management supervisor, account supervisor, and account executive *Account Planning and Research includes account planner: gathers info on the market and the consumers and figures out the consumers wants and needs *Creative development and production includes all creative positions *Media Planning and Buying focuses on planning, buying, and researching media types *Internal Agency Services includes the traffic department, print production, financial services, and human resources How Clients Pay Agencies * 3 main sources --commission: percentage of the media cost --fee: hourly rate agreed on by both the agency and the client --retainer: client billed each month based on projected amount of work needed and hourly rate --other methods: paid based on the performance of the advertising campaign, based on the profits earned by the client, and value billing: agency paid for their creative and strategic ideas, not for executing the ideas