Read and translate the text using a dictionary if necessary. Simply defined, advertising is any form of non-personal presentation and promotion of ideas, goods, and services usually paid for by an identified sponsor

Simply defined, advertising is any form of non-personal presentation and promotion of ideas, goods, and services usually paid for by an identified sponsor. Note three key words in the above definition. Advertising is non-personal; it is directed toward a large group of anonymous people. Even direct-mail advertising, which may be addressed to a specific person, is prepared by a computer and is signed by a machine. Second, advertising typically is paid for. This fact differentiates advertising from publicity, which is not usually purchased. Sponsors such as Coke and Delta pay for the time and the space they use to get their message across. (Some organizations such as the Red Cross or the United Way advertise but do not pay for time or space. Broadcast stations, newspapers, and magazines run these ads free as a public service.) Third, for obvious reasons, the sponsor of the ad is identified. In fact, in most instances identifying the sponsor is the prime purpose behind the ad-otherwise, why advertise? Perhaps the only situation in which the identity of the advertiser may not be self-evident is political advertising. Because of this, broadcasters and publishers will not accept a political ad unless there is a statement identifying those responsible for it.

Advertising fulfils four basic functions in society. First, it serves a marketing function by helping companies that provide products or services sell their products. Personal selling, sales promotions, and advertising blend together to help market the product. Second, advertising is educational. People learn about new products and services or improvements in existing ones through advertising. Third, advertising plays an economic role. The ability to advertise allows new competitors to enter the business arena. Competition, in turn, encourages product improvements and can lead to lower prices. Moreover, advertising reaches a mass audience, thus greatly reducing the cost of personal selling and distribution. Finally, advertising performs a definite social function. By vividly displaying the material and cultural opportunities available in a free-enterprise society, advertising helps increase productivity and raises the standard of living.

Keep in mind that advertising is directed at a target audience, a specific segment of the population for whom the product or service has a definite appeal. There are many target audiences that could be defined. The most general are consumers and business. Consequently, consumer advertising, as the name suggests, is targeted at the people who buy goods and services for personal use. Most of the advertising that most people are exposed to falls into this category. Business-to-business advertising is aimed at people who buy products for business use. Industrial, professional, trade, and agricultural advertising are all part of this category.

ORGANIZATION OF THE CONSUMER ADVERTISING INDUSTRY

There are three main components of the advertising industry:

1. the advertisers

2. advertising agencies

3. the media

Each of these will be discussed in turn.

Advertising is an important part of the overall marketing plan of almost every organization that provides a product or a service to the public. Advertisers can range from the small bicycle shop on the corner that spends $4 on an ad in the local weekly paper to huge international corporations such as Procter & Gamble, which spends more than $2.1 billion annually for ads.

At a basic level, we can distinguish two different types of advertisers: national and retail. National advertisers sell their product or service to customers all across the country. The emphasis in national advertising is on the product or service and not so much on the place where the product or service is sold. For example, the Coca-Cola Company is interested in selling soft drinks. It doesn’t matter to the company if you buy their product at the local supermarket, a small convenience store, or from a vending machine; as long as you buy their products, the company will be happy. Retail advertisers (also called local advertisers) are companies such as local restaurants, car dealerships, TV repair shops, and other merchants and service organizations that have customers in only one city or trading area. The retail advertiser wants to attract customers to a specific store or place of business. Some companies are both national and local advertisers.

Agencies. According to the American Association of Advertising Agencies, an agency is an independent business organization composed of creative and business people who develop, prepare, and place advertising in advertising media for sellers seeking to find customers for their goods and services. The big advertising agencies tend to be located in the big cities, particularly New York, Los Angeles, and Chicago. Smaller agencies, however, are located all across the country. In fact, most cities with more than 100,000 people usually have at least one advertising agency. When it comes to income, however, the bigger agencies dominate.

Agencies can be classified by the range of services that they offer. In general terms, there are three main types: (1) full-service agencies, (2) media buying services, and (3) creative boutiques.

As the name implies, a full-service agency is one that handles all phases of the advertising process for its clients; it plans, creates, produces, and places ads for its clients. In addition, it might also provide other marketing services such as sales promotions, trade show exhibits, newsletters, and annual reports. In theory, at least, there is no need for the client to deal with any other company for help on promoting their product.

A media buying service is an organization that specializes in buying radio and television time and reselling it to advertisers and advertising agencies. The service sells the time to the advertiser, orders the spots on the various stations involved, and monitors the stations to see if the ads actually run.

A creative boutique (the name was coined during the 1960s and has hung on to the present) is an organization that specializes in the actual creation of ads. In general, boutiques create imaginative and distinctive advertising themes and produce innovative and original ads. A company that uses a creative boutique would have to employ another agency to perform the planning, buying, and administrative functions connected with advertising.

Not surprisingly, full-service agencies saw media buying services and boutiques as competitors. Consequently, the full-service agencies improved their own creative and media buying departments. It wasn't long before the services and boutiques began to feel the effects of the agencies' efforts. As it stands now, only a few services and a few boutiques still handle large national advertisers.

Media. The last part of the advertising industry consists of the mass media. The media serve as the connection between the company that has a service or product to sell and the customers who wish to buy it. The media that are available for advertising include the obvious ones-radio, television, newspapers, magazines-and others that are not so obvious, such as direct mail, billboards, transit cards (bus and car cards), stadium scoreboard ads, and point-of-purchase displays.

Ex. 1. Answer the following questions:

1. What is advertising?

2. How is advertising different from publicity?

3. What functions does advertising fulfill in society?

4. What is a target audience? Give examples.

5. Can you name the main components of the advertising industry?

6. What are the types of advertisers and differences between them?

7. What is an advertising agency? What are its main types?

8. What mass media are available for advertising ?

Ex. 2. Give English equivalents to these expressions:

1. Выполнять функции 7. в противном случае

2. выйти на деловую арену 8. подпадать под категорию

3. уменьшить стоимость 9. увеличить продуктивность

4. целевая аудитория 10. вызвать улучшение качества продукта

5. ежегодные доклады 11. в обществе свободных торговых отношений

6. уровень жизни

Ex. 3. Give English definitions to the following words and make up sentences of your own:

Advertising, advertisement, business-to-business advertising, marketing, publicity, a free-enterprise society, the media, retail advertiser, advertising agency.

Ex. 4. Complete the table with the forms of the words given. Use a dictionary if necessary:

Ex. 5. Write the opposites using the words in the box:

punishment sell response success fail respond consumer reward buyer produce

Verbs

Succeed / fail

1) _______ / punish

2) buy / _______

3) _______ / consume (a product)

4) advertise / ________ (to an advert)

Nouns

5) ________ / failure

6) reward / _________

7) _______ / seller

8) producer / ________

9) advertisement / __________ (to an advert)

Ex. 6. Complete the sentences with a suitable word from Ex. 5:

1) I called the train company, but there was no ____________.

2) I love the ____________ for that new car, where a woman drives through the Italian countryside.

3) Well done. You can have a present as a __________ for passing your exams.

4) The new advertising company was a complete __________, sales have been terrible.

5) His new book has been a great __________. It sold over a million copies in the first month.

6) I don’t think cigarette companies should __________ as their products are bad for you.

Ex.7 Translate from Russian into English:

1. Реклама – это некая форма не персонального представления и продвижения на рынке идей, товаров и услуг, обычно оплачиваемое определенным спонсором.

2. Реклама исполняет маркетинговую функцию, помогая компаниям, производящим товары и услуги, продать свои товары.

3. Образовательная функция заключается в том, что люди узнают о новых товарах и услугах или улучшенных версиях уже существующих товаров посредством рекламы.

4. Реклама также выполняет экономическую функцию, так как возможность рекламировать товары позволяет выходить на деловую арену новым конкурентам.

5. В свою очередь, конкуренция ведет к улучшению качества товаров и снижению цен.

6. И наконец, реклама носит определенную социальную функцию, так как помогает увеличить продуктивность и поднять уровень жизни людей, предоставляя материальные и культурные возможности, доступные в условиях свободных торговых отношений.

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