Sandra, the easiest way to use a Google Earth image in ArcMap is to set up the view in GE the way you want to use it and export as a jpg image. (File...Save....Save Image....)
In ArcMap, import the jpg image in exactly the way you would add a layer or raster image, through the 'Add Data' dialog box. If you want to use the imported image as-is, with no additional references, no georeferencing is necessary; ArcMap will display the image, even without a prj file attached.
If you want to view it in its actual position, you will need to georeference it.
The light ring circles and any labels required can be added directly with the draw tools included in ArcMap, either in the Data Frame or Layout view. (Toolbars.....Draw)
Bill; GIS Analyst