MRP/IMC/M11 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies

MRP/IMC/M12 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Development and implementation of IMC program is a complex process. It requires the skills and efforts of many people and several specialized organizations/agencies. Which are the participants in the IMC process..?

MRP/IMC/M13 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Participants in the IMC process Advertiser (client) Advertising Agency Media Organizations Marketing Communication Specialist Organizations: -Direct response agencies -Sales promotion agencies -Interactive agencies -PR firms Collateral Services

MRP/IMC/M14 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Advertising Agency It is an outside firm that specializes in the creation, production and placement of communications message and that may provide other services to facilitate the marketing and promotions process. Eg. Grey Worldwide, Leo Burnett Worldwide, Ogilvy & Mather Worldwide, Saatchi & Saatchi

MRP/IMC/M15 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Media Organizations Primary objective is to provide information or entertainment to their subscribers, viewers or readers. Eg. TV channels, print media, radio etc are some of the media organizations. A mediums primary objective is to sell itself as a way for companies to reach their target markets with their message effectively.

MRP/IMC/M16 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Specialized MARCOM services They include: Direct marketing agencies – develops direct marketing programs Sales promotion agencies – develop contests, sweepstakes, premium offers etc. Interactive agencies – use of websites, internet Public relations firms – communication and relationships with relevant publics

MRP/IMC/M17 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Collateral Services They include: Marketing research company, package design firms, consultants, photographers, event marketing companies.

MRP/IMC/M18 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Client side: Organization structure for promotion: Centralized system Decentralized system In-house agency

MRP/IMC/M19 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Centralized system CEO ProductionFInanceMarketingR&DHuman Resources Marketing Research Advertising Sales Product Planning Advertising Manager

MRP/IMC/M110 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies In such a system, the basic functions of the advertising manager are as follows: 1. Planning and Budgeting 2. Administration and execution 3. Coordination with other departments – market research, sales dept 4. Coordination with outside agencies and services

MRP/IMC/M111 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Decentralized system CEO ProductionFInanceMarketingR&DHuman Resources Marketing Services Advertising Department SalesProduct Management Brand Manager Ad agency Marketing Research Product/brand Manager Product Manager Product Manager

MRP/IMC/M112 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies In-house agencies It is an advertising agency that is set up, owned, and operated by the advertiser. Sometimes they are little more than advertising departments only. They result in cost saving, time saving and are better controlled by the management. Eg. Calvin Klein, The Gap, Benetton

MRP/IMC/M113 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies OrganizationalAdvantagesDisadvantages System Centralized- Fewer persons- Longer response time - More top-mgmt- Cannot handle multiple involvement product lines Decentralized- Rapid response- Ineffective decision to problems making - Increased flexibility- Internal conflicts In-house agency- Cost savings- Less experience - More control- Less objectivity

MRP/IMC/M114 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies The Ad agency’s role in IMC Reasons for using an agency: -Services of highly skilled individuals who are specialists in their chosen fields. - Industry specific offerings of agencies -An outside agency can provide an objective viewpoint of the market and is not subject to internal company policies, biases or other limitations -It can draw on the broad range of experience

MRP/IMC/M115 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Types of Ad agencies: -Full service agencies -Creative boutiques -Media buying services

MRP/IMC/M116 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Creating advertising Planning advertising Producing advertising Performing research Selecting media Sales promotions Strategic market planning Direct marketing Interactive capabilities Package design Full range of marketing communication and promotion services Nonadvertising services Public relations and publicity

MRP/IMC/M117 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Creative services -Creation and execution of advertisements -Copywriters write the message and art department takes care of how the ad looks -For TV ads, the layout is known as a storyboard -Once the copy, layout, illustrations have been completed, the ad is turned over to the production department -Printers, photographers, typographers are hired to produce the ad -A traffic department coordinates the phases of production

MRP/IMC/M118 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Account services -This is the link between the ad agency and its clients -The account executive is responsible for understanding the advertiser’s marketing and promotions needs and interpreting them to the agency personnel

MRP/IMC/M119 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Marketing Services -It includes a marketing research department to gather, analyze and interpret information -The media department analyzes, selects and contracts for space or time in the media

MRP/IMC/M120 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Management and Finance -The ad agency must be managed and perform basic operating and administrative functions such as accounting, finance and human resources. -Large agencies employ administrative, managerial and clerical people to perform these functions. -Almost 64% of an agencies income goes to salary and benefits for its employees

MRP/IMC/M121 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Writers Art directors TV production Traffic Print production Account Executive Account supervision VP account services Media Research Sales Promotion VP marketing services Personnel Accounting Finance Office management VP management and finance President Board of directors VP creative services

MRP/IMC/M122 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Creative Boutiques It is an agency that provides only creative services. Full service agencies often subcontract work to creative boutiques when they are very busy or because its own employees do not have sufficient skills.

MRP/IMC/M123 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Media buying services They are independent companies that specialize in the buying of media time. Eg. Radio and television time Since they purchase large amounts of time and space, they receive large discounts and can save the small agency or client money on media purchases.

MRP/IMC/M124 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies How agencies gain clients? Through referrals – from existing clients, media and even other agencies Business Development Solicitations – seeks and establish contact with new clients Presentations – give a speculative presentation for prospective clients Public relations – participation in events, work with charitable organizations or just engage in mass media publicity Image and reputation – developed over the years working with big clients

MRP/IMC/M125 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Referrals Solicitations Presentations Public Relations Image, Reputation

MRP/IMC/M126 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies How agencies loose clients Poor performance Poor communications Unrealistic Client demands Personality conflicts Personnel changes Changes in size of client or agency Conflicts of Interest – competition Change in client’s strategy Declining sales Payment conflicts Policy Changes

MRP/IMC/M127 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Specialized Services Direct mail Direct mail Database management Database management Research Creative Media services Direct- Marketing Agencies Direct- Marketing Agencies Production Database development, management

MRP/IMC/M128 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Sales Promotion Agency Catalog production Promotional planning Creative research Tie-in coordination Fulfillment Premium design and manufacturing Contest/sweepstakes management

MRP/IMC/M129 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies PR Firms Strategy development Generating publicity Lobbying Public affairs News releases, communication Research Managing crises Coordination with promotional areas Special events

MRP/IMC/M130 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Interactive Media Services Web banner ads Web banner ads Search engine optimization Kiosks Interactive Media Creation CD-ROMs Web sites Text messages

MRP/IMC/M131 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies Collateral Services – Marketing Research Company Quantitative studies Qualitative research Help clients under- stand target audience

MRP/IMC/M132 Integrated Marketing Communications Module 1: An introduction to IMC Concept 3: Role of advertising agencies