Chapter 4. Organization of advertising activities
4.1. Advertising process and advertising agencies as its participants
The basis of the organization of promotional activities is an advertising program that determines the direction of the advertising impact, forms an advertising idea and plans a variation of advertising performances. At the same time, advertising should provide targeted work on the sale of goods and the formation of buyers' demand. Its feature is the continuity of the impact on the consumer and the constant updating of the content.
The modern advertising process consists of works of a research nature, organizational work on the implementation of advertising programs.
In order to understand the essence of the advertising process, it is necessary to analyze its basic technology and divide it into separate elements, allowing later to consider the interaction of participants in this process at different stages and levels.
The schematic diagram of the advertising process consists of four links and looks as follows (Figure 4.1).
Fig. 4.1. Scheme of the advertising process
Advertiser is a legal entity or an individual who is the customer of advertising from an advertising agency and who pays for it.
The main functions of the advertiser are:
o Definition of goods, including export, in need of advertising;
o Definition together with the advertising agency of the degree and features of advertising these products;
o Forming together with the advertising agency a plan for creating promotional products and conducting promotional activities;
o working out the budget of creating advertising and conducting promotional activities with the advertising agency;
o signing a contract with the agency for the creation of promotional materials, placing advertising in the means of its distribution, conducting promotional events, etc.
o assisting the performers in preparing the source material;
o provision of technical and factual data of products or services;
o technical consultations, approval of mock-ups, advertising materials and originals of advertising;
o paying bills to the artist.
Advertising agencies as members of the advertising process perform the following main functions:
o carry out the relationship with the media, placing them orders and monitoring their implementation;
o create advertising products based on orders received, develop plans for complex advertising campaigns, other promotional activities;
o conduct settlements with advertisers and the media;
o cooperate with printing houses, studios, advertising mills.
Successful work of advertising agencies largely depends on the choice of specific ways of advertising distribution. These include:
o advertising in the press - putting relevant announcements in newspapers and magazines of general purpose, special, industry magazines, company newsletters, reference books;
o printed advertising - brochures, catalogs, booklets, posters, leaflets, postcards, calendars;
screen ads - in movies and on television;
radio commercials broadcasted;
o outdoor advertising - various large posters;
o advertising in transport - inscriptions on the exterior surfaces of vehicles, printed ads in vehicle salons, display cases with goods at train stations, stations;
o Souvenirs and other types of advertising.
The advertising agency, in addition to the above works carried out in conjunction with advertisers, carries out on their orders creative and performing functions related to the creation of unique and promotional materials. So, the advertising agency conducts complex advertising campaigns and individual advertising activities, interacts with productive databases, with other advertising and publishing firms, including foreign ones, communicates with the means of advertising distribution, places orders for advertising in them, controls the passage and quality of performance orders, bills the advertiser and pays the accounts of the means of advertising distribution. A full service advertising agency, as a rule, has a wide range of highly qualified freelance artists and performers and, with significant amounts of international activity, has commercial agents abroad.
The Advertising Distribution Tool is an information channel through which an advertising message reaches consumers.
A consumer is the one to whom an advertising appeal is directed, in order to induce him to perform a certain action in which the advertiser is interested.
Until recently, only the first three links were active participants in the advertising process, and the consumer was given the passive role of an element of the audience exposed to advertising. Now the consumer becomes an active participant in the advertising process, often its initiator. In modern advertising activities, the consumer acts as a feedback generator.
Before the time of the advertising process, other participants are involved in the process: organizations regulating advertising activities at the state (government agencies) and public (associations and other similar organizations) levels; production, creative and research organizations that are active in the field of advertising.
In order for the advertising process to be highly effective, it must be preceded by marketing research, strategic planning and tactical solutions, dictated by the marketing goals of the advertiser and the specific situation on the market. It is necessary to develop an advertising strategy, which is determined by the way the advertiser uses the creative complex.
The creative complex includes:
1) the target audience;
2) the concept of the product;
3) means of information dissemination;
4) advertising message.
When selecting channels for distribution of promotional messages, the following criteria are used:
The most important and significant in the structure of the enterprise can be considered the department of advertising and decoration, which deals with the creation of advertising ideas and their implementation.
In advertising, the primary goal is to ensure a given impact on a specific audience in the area of increasing knowledge about the manufacturer, its products, services, increasing confidence in it, encouraging consumers to buy or other actions necessary for the advertiser, introducing a unique trade proposal into the mind . In the created promotional events, the commercial aspect is to dominate - the receipt of profit by all participants of the advertising process.
The combination of creative workers in one department, the advertising department, allows you to maneuver the enterprise in achieving the set goals, provides an opportunity for comprehensive customer service using all the necessary types of advertising. This allows the commercial organization to conduct business related to the provision of services to customers, analyze customer demand is applicable to this organization, form the necessary assortment, promptly respond to the shortcomings of ongoing work, monitor the advertising process at all stages of goods movement.
The advertising department, as a rule, is subordinated to administrative units, therefore the effectiveness of the department is stimulated by various activities: premium payments, advances, etc. The advertising department develops a corporate image, i.e. the company's corporate identity, the budget for the advertising campaign.
To the advantages of the work of the advertising department are:
o Possibility of realization of advertising process with use of all complex of means and methods of advertising and their organic communication in the commercial enterprise;
o Increase the responsibility of employees for performing all operations, starting from receiving an order for advertising and completing its execution and determining the effect of its application;
o The possibility of using a progressive system of calculating the organization with the employees of the department for the final result, which serves as a condition for employees' interest in creating highly professional and effective advertising applied to a particular enterprise.
The function of the advertising and artistic design department includes the creative development of advertising materials, the preparation of the text and artistic design of the advertising publication, the development of the layout of the original advertisement, the selection of the necessary means for the transfer of advertising and the necessary media channel and their coordination with the administration of the commercial organization.
However, to solve serious communication programs, it is advisable to involve specialists with practical skills in a certain field, to perform work under a contract, or to create creative teams for specific tasks and to disband them after the work is done. In this case, you should set a specific task to create advertising, determine the time of execution, the necessary cash costs.
On the other hand, the above works can be transferred for implementation to specialized enterprises that have the appropriate materials, equipment, staff of specialists. For example, to film studios, photographic studios, printing shops, etc.
The advertising department at the enterprise, by its own resources and means, should carry out research related to the corporate presentation, advertising packages programs. For more effective and harmonious work of the advertising department, its activities should be built taking into account the implementation of integrated marketing communications through the establishment of harmonious links with all services and units of the commercial organization.
In the context of popularization of outsourcing strategy, individual advertising tasks should be submitted for execution to advertising agencies.
An advertising agency can have both its own creative and production base, and use highly qualified freelancers. The second is more appropriate in the context of a small structure of advertising units. In order to increase the professional and artistic level of the produced advertising products, to ensure its competitiveness, it is recommended to create an editorial and artistic council, as well as a price commission that establishes the amount of author's fees.
If the company cooperates with advertising agencies, consider the list of basic advertising services that it must provide to customers:
o preparing advertising materials and placing them in the media;
o preparation and implementation of complex advertising campaigns, advertising programs;
o development, production, installation and maintenance of outdoor advertising;
o Replication and rental of promotional film, video, slide, magnetic films;
o conducting advertising events at exhibitions and fairs;
o organizing and conducting seminars, conferences, exhibitions;
o editorial preparation and printing of printed work;
o Development and staging of promotional gifts, installations to them;
o work to create and maintain the image of the advertiser;
o development of trademarks and corporate identity;
o Providing in the future a set of studies for the order of the advertiser (for example, to study the advertising audience, the effectiveness of the impact on it of certain means of advertising, etc.);
o presentation of recommendations taking into account changing market conditions.
The interaction of the enterprise with advertising agencies can be built in three directions. An enterprise can use an agency only as an executor of its ideas. In this case, if the advertisement does not reach the goals set by the advertiser, the agency has the right to absolve itself of the responsibility for the unsuccessful advertisement, considering that it acted as the technical executor of the ideas of the trading enterprise.
In the second direction of interaction, the advertiser completely entrusts all advertising work to the agency, not being interested in the advertising activities carried out by him, but only interested in their final results. In this case, the enterprise-customer risks the means allocated to advertising of his goods, since advertising may not achieve the goal. This is because the advertising agency can not always compile and implement a literate program without the participation of the customer and taking into account his knowledge in the field of the advertising object.
The most preferable for an advertising agency and an advertiser is the implementation of joint activities to develop and conduct an advertising program aimed at advertising a particular object.
The main blocks of the advertising program developed by the agency on the basis of the knowledge of the advertiser can be represented in the form of a scheme (Figure 4.2). The most correct when establishing the relationship between the participants in the advertising process is a contractual form. The contract is the main document
Fig. 4.2. Adware development sequence
volume, defining the rights and obligations of the parties in the process of development, preparation and distribution of advertising.
Each of the parties in the conclusion and execution of contracts must comply with the interests of the other party, discharge their duties in the most economical way, assist the other party in the performance of their duties.
In the contract between the advertiser and the advertising agency it is desirable to indicate:
o services provided by an advertising agency, including the development of an advertising program;
o a list of advertising items and their characteristics;
o the general term of the contract;
o Estimated total amount of the contract;
o The order and timing of the provision of source data, samples of advertising items and their return;
o The order and terms of submission for approval of the advertising program;
o the order and timing of the coordination of the plan for promotional events, texts, artistic originals and scenarios;
o the order and timing of reports on the conduct of promotional activities;
o conditions of property responsibility of the parties for violation of the order and terms of performance of contracts;
o other conditions that the advertiser and the advertising agency consider necessary to provide for in the contract;
o payment and postal requisites of the parties to the contract. When submitting an organization order to an advertising agency, many factors should be taken into account, which should not contradict the moral standards of the society. Some of them are described below:
o advertising should not contain visual images of any situation where the generally accepted security measures are not respected;
o advertising can not use methods that lead to unconscious actions;
o advertising should not contain comparisons with items of a similar purpose;
o advertising of goods sold at reduced prices, must contain clear information about the new price;
o advertising can not use photos of people without their personal consent; the negative influence is rendered by nonprofessionalism and incorrectness on the tastes of the audience.
Fair complaints from the recipients of advertising appeals cause: frank tastelessness in the form of forms and means of conveying the advertising idea; in some cases, a disparaging attitude towards the whole audience or to a specific part of it; erotic scenes, etc., which are not justified by the purposes of advertising.
The main activities to activate and improve advertising activities in a commercial enterprise should be highlighted:
o Definition of goods most in need of advertising;
o creation of modern advertising and graphic solutions;
o Development and creation of corporate style of the enterprise;
o organization of release for goods (product groups) of initial advertising materials;
o use of marketing approaches to planning the release of promotional products;
o constant improvement of the quality of advertising, the search for new approaches to improving the artistic-graphic and polygraphic level;
o the most complete use and stimulation of the creative potential of specialists.
With the help of advertising, the market becomes more clear and accessible with different tastes and needs, with different levels of money incomes, with different traditions in relation to the consumer. Advertising, spreading information about the availability of goods, the conditions of their purchase and consumption, is involved in the formation of the supply of goods, and thus the demand.
Thus, advertising is one of the forms of information activity, provides a link between production and the consumer. With the help of advertising, feedback is maintained with the market and the consumer. This allows you to control the promotion of goods in the market, create and consolidate a stable system of preferences for the buyer.
The organizational functions of the advertising process include leadership, distribution of powers and coordination of work. The basic functions of subjects of advertising activity are shown in tab. 4.1.
The organization of advertising activities is a process of planning the organizational structure of the advertising process under the guidance of the advertiser. The final stage of the advertising process is an advertising campaign that links the means of advertising interaction between the advertising distributor and the consumer.
The organizational mechanism of promotional activities is the organizational structure of advertising management
Table 4.1. The main functions of the participants of promotional activities
process and management decisions in the system of this structure. The mechanism of interaction between subjects and objects through control actions and feedback determines the essence of management of advertising activities. The advertising process is based on the principle of the general interest of independent entities to profits when the advertiser's goals are achieved.
The links between the subjects are arranged, in their quality are the contractual obligations of independent subjects of the advertising market, connected in a single organization for the period of the advertising process under the guidance of the advertiser for the implementation of the advertising campaign. The basis of the relationship is the contractual relationship, which focuses on the pricing policy, the conditions for the implementation of advertising services, the territorial rights to advertise, etc. The costs of the advertising process depend on the type of media, the regional market for its distribution, the advertised product, the advertiser,
The structure of the organization of subjects of advertising activities in the model of the advertising process is shown in Fig. 4.3. The nature of the model is determined by the subjects of the advertising process, the goals, technologies and direction of communications. In the system of advertising activities, the consumer is in a state of self-management with the freedom to purchase the advertised goods on the market. The organization of the advertising process is aimed at ensuring the mutual goals of the advertiser and the consumer, in providing an advertising medium for the target consumer, providing an incentive reaction to the advertised product.
Fig. 4.3. Basic model for organizing promotional activities
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