Chapter 3 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations

Participants in the Integrated Marketing Communications Process Advertisers or clients Advertising agency Media organizations Specialized marketing communication services organizations Collateral services organizations

Case Study TVC: Bangladesh Navy

Figure 3.2 - The Advertising Department under a Centralized System

Figure 3.3 - Decentralized Brand Management System

In-house agencies Agency that is set up, owned and operated by the advertiser Used by many companies such as Target and Benetton

Figure 3.4 - Comparison of Advertising Organizational Systems

Advertising Agencies Service organizations that specialize in planning and executing advertising programs for its clients Examples: Grey, Asiatic, Bitopi Leo Burnett Superagencies: Large agencies that merged with or acquired other agencies and support organizations

Reasons for Using an Ad Agency Highly skilled specialists Specialization in a particular industry Objective viewpoint of the market Broad range of experience

Full-Service Agencies Performing research Selecting media Full range of marketing communication and promotion services Creating advertising Planning advertising Producing advertising Interactive capabilities Package design Nonadvertising services Public relations and publicity Sales promotions Strategic market planning Direct marketing

Agency Services Account services The link between agency and client Managed by the account executive Marketing Services Research department May include account planners Media dept. obtains media space, time Creative Services Creation execution of ads Copywriter artists, other specialists Mgmt & Finance Accounting Finance Human Resources New business generation

Creative Boutiques Small ad agencies that provide only creative services Advantages Turn out inventive creative work quickly Provide more attention and better access to creative talent

Media Specialist Companies Specialize in the buying of media Agencies and clients develop media strategy Media buying organizations implement strategies, and buy time and space

Agency Compensation Methods Commissions from media Fee, cost, and incentive-based systems Percentage charges

Personnel hours billed Evaluating Agencies Financial audit Qualitative audit Costs, expenses Planning Personnel hours billed Program development Payments to media Implementation Payments to suppliers Results achieved

How Agencies Gain Clients Referrals Solicitation Presentations Public relations Image and reputation

Why Agencies Lose Clients Poor performance or service Poor communication Unrealistic demands by client Personality conflicts Personnel changes Changes in client size or agency

Direct-Marketing Agencies Provide a variety of services Database analytics and management Direct mail Research and media services Creative and production capabilities Has following departments Account management Creative Media Database development/management

Sales Promotion Agency Involved with the developing and managing of sales promotion programs Provide following services Promotional planning, creative research, and tie-in coordination Fulfillment Premium design and manufacturing Catalog production Contest/sweepstakes management

Functions Performed by Public Relations Firms Strategy development Generating publicity Lobbying Public affairs News releases, communication Research Managing crisis Special events Coordination w/promotional areas

Digital/Interactive Agencies Specialize in the development and strategic use of various digital marketing tools Websites for the Internet Banner ads Search engine optimization Mobile marketing Social media campaigns

Collateral Services Marketing research Package design Consultants Photographers Printers Video production Event marketing

Responsibility for IMC Consistent execution of strategy Multiple agencies Who accomplishes the marketing mission?