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Launch! Advertising and Promotion in Real Time, 2009a

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3. Pick any two products or services to illustrate a direct <strong>and</strong> <strong>in</strong>direct channel of distribution. In each<br />

<strong>in</strong>stance expla<strong>in</strong> the advantages <strong>and</strong> disadvantages of the channel configuration.<br />

4. Our market<strong>in</strong>g world is filled with product placements. Expla<strong>in</strong> what a product placement is, how it can be<br />

used by marketers <strong>and</strong> advertisers, <strong>and</strong> what you believe to be the likelihood of success for this form of<br />

market<strong>in</strong>g. Use a real product placement example to illustrate your discoveries <strong>and</strong> research.<br />

ETHICAL DILEMMA<br />

Traditionally, the mass media has paid advertis<strong>in</strong>g agencies a 15 percent commission on all bus<strong>in</strong>ess<br />

brought to them. The advertis<strong>in</strong>g agency also represents a client <strong>and</strong> may receive fees from that client.<br />

S<strong>in</strong>ce the advertis<strong>in</strong>g agency receives a commission on the amount billed from a client from the mass<br />

media, some believe that a conflict of <strong>in</strong>terest exists—two masters are be<strong>in</strong>g served. While the advertis<strong>in</strong>g<br />

agency is supposedly cutt<strong>in</strong>g the best deal they can with the mass media for their client <strong>in</strong> terms of media<br />

prices, they may also be receiv<strong>in</strong>g commissions based on bill<strong>in</strong>g where more money is made by the<br />

advertis<strong>in</strong>g agency as bill<strong>in</strong>g revenues for the agency <strong>and</strong> mass media <strong>in</strong>crease.<br />

After consider<strong>in</strong>g the ethics of this situation, take a position on the practice <strong>and</strong> make comments.<br />

Remember to try to see the issue from the viewpo<strong>in</strong>t of all parties—the mass media, the client, <strong>and</strong> the<br />

advertis<strong>in</strong>g agency. Be prepared to discuss your thoughts <strong>and</strong> position.<br />

Saylor URL: http://www.saylor.org/books<br />

Saylor.org<br />

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