Scribd
Upload
228 views28 pages

Organizing For Advertising and Promotion:: The Role of Ad Agencies and Other Marketing Communication Organizations

The document discusses the roles of various marketing communication organizations that participate in integrated marketing communications (IMC) processes, including advertising agencies, media organizations, public relations firms, interactive agencies, marketing research companies, sales promotion agencies, and direct response agencies. It describes the functions and typical organizational structures of full-service advertising agencies, creative boutiques, media buying specialists, direct marketing agencies, public relations firms, interactive agencies, and sales promotion agencies.

Uploaded by

KARCHISANJANA
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
228 views28 pages

Organizing For Advertising and Promotion:: The Role of Ad Agencies and Other Marketing Communication Organizations

The document discusses the roles of various marketing communication organizations that participate in integrated marketing communications (IMC) processes, including advertising agencies, media organizations, public relations firms, interactive agencies, marketing research companies, sales promotion agencies, and direct response agencies. It describes the functions and typical organizational structures of full-service advertising agencies, creative boutiques, media buying specialists, direct marketing agencies, public relations firms, interactive agencies, and sales promotion agencies.

Uploaded by

KARCHISANJANA
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 28

3

The Role of Ad Agencies and Other Marketing Communication Organizations

Organizing for Advertising and Promotion:

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Participants in the IMC Process

Advertiser (Client) Advertising agency Media organizations Marketing communications specialist organizations Collateral services Directresponse agencies Sales promotion agencies

Public relations firms

Interactive agencies

Advertising Dept. Under Centralized System

President

Production

Finance

Marketing

Research and development

Human resources

Marketing research

Advertising

Sales

Product planning

Pros & Cons of a Centralized System


+ Positive
Better communications Fewer personnel

- Negative
Less goal involvement

The Centralized System

Longer response time Impractical for multiple brands, products, divisions

Continuity

More top management involvement

Decentralized Advertising System


Corporate Production Finance Marketing R&D Human Resources

Sales

Product Management Brand Manager Ad agency

Marketing services Advertising Dept Marketing Research

Sales promotion Package design Merchandising

Brand Manager
Ad agency

Pros & Cons of Decentralization


+ Positive
Concentrated attention

- Negative
Ineffective decision making

Rapid problem response

The Decentralized System

Internal conflicts

Increased flexibility

Unequal distribution of funds Lack of Authority

In-House Agencies

Benettons in-house agency works with outside agencies to develop ads

Pros & Cons of In-House Agencies

+ Positive
Cost savings

- Negative
Less experience

More control

The In-house Agency

Less objectivity

Better coordination

Less flexibility

The Ad Agencys Role

Reasons for using an ad agency


Highly skilled specialists Specialization in a particular industry Broad range of experience

Ad Agencies Have Skilled Specialists

Artists

Writers

Researchers

Photographers

Media Analysts

Other Skills

Full-Service Agencies
Planning advertising Creating advertising Producing advertising Strategic market planning Sales promotions Direct marketing

Full range of marketing communication and promotion services

Performing research Selecting media

Interactive capabilities

Nonadvertising services

Package design Public relations and publicity

Typical Full-Service Agency Organization


Board of directors President VP creative services VP account services Print production Account supervision VP marketing services VP management and finance

Art directors

Writers

Media

Sales Promotion Office management Accounting Personnel

TV production

Research Account Executive

Finance

Traffic

Services Provided by Agencies Agency Services


Account Services Marketing Services Creative Services Mgmt & Finance

The link between agency and client Managed by the account executive

Research department May include account planners

Creation, execution of ads Copywriter artists, other specialists

Accounting Finance Human resources

Media dept. obtains media space, time

New business generation

The Role of Creative Boutiques

Creative Boutiques

Provide only creative services

Full-service agencies may subcontract with creative boutiques

Ability to turn out inventive creative work quickly

Media Buying Can be Specialized

Media Specialist Companies

Specialize in buying media, especially broadcast time

Agencies and clients develop media strategy

Media buying organizations implement the strategy and buy time and space

Methods of Agency Compensation

Commissions from media Fee, cost, and incentive-based systems

Compensation Methods

Percentage charges

Evaluating Agencies

Financial Audit Verify costs, expenses

Qualitative Audit Planning

Personnel hours charged

Program development

Payments to media

Implementation

Payments to suppliers

Results achieved

Loyalty to a Single Agency

Young & Rubicam has handled the Dr Pepper account for over 30 years

Why Agencies Lose Clients


Poor performance
Declining sales Personnel changes Changes in size of client or agency Conflicts of interest

Poor communications

Payment conflicts

Unrealistic Client demands

Policy Changes

Personality conflicts

Policy Changes

Change in clients strategy

How Agencies Gain Clients

Referrals

Presentations

Solicitations

Public Relations

Image, Reputation

Direct-Marketing Agency Activities

Database management Direct mail

DirectMarketing Agencies

Media services

Creative Database development, management

Research

Production

Direct-Marketing Agency

Departments in a typical directmarketing agency


Account management Creative Media Database development and management

Sales Promotion Agencies


Promotional planning
Creative research

Tie-in coordination
Fulfillment Premium design and manufacturing Catalog production Contest/sweepstakes management

Functions Performed by Public Relations Firms

Strategy development

Public affairs

Special events

Generating publicity

News releases, communication

Managing crises

Lobbying

Research

Coordination with promotional areas

Functions Performed by Interactive Agencies

Web banner ads


Web sites Interactive Media Creation Kiosks

CD-ROMs Text messages

Search engine optimization

Marketing Research Companies

Help clients understand target audience

Qualitative research

Quantitative studies

Pros and Cons of Integrated Services


+ Positive
Greater synergy

- Negative
Budget politics

Convenience

Integrated Services

Poor communication

Single image for product or service

No synergy

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy