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Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed McGraw-Hill/Irwin 03 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations

Participants in the IMC Process 3-2

Advertising Dept. Under a Centralized System President Production Finance Marketing Research and development Human resources Marketing research Advertising Sales Product planning 3-3

Decentralized Advertising System ProductionFinance Sales Brand Manager Ad agency Product Management Sales promotion Package design Marketing services MarketingR & D Human Resources Corporate Brand Manager Ad agency Advertising Dept Marketing Research Merchandising 3-4

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 3-5

Agency Services Research department May include account planners Media dept. obtains media space, time Research department May include account planners Media dept. obtains media space, time Marketing Services The link between agency and client Managed by the account executive The link between agency and client Managed by the account executive Account Services Creation, execution of ads Copywriter artists, other specialists Creation, execution of ads Copywriter artists, other specialists Creative Services Accounting Finance Human resources New business generation Accounting Finance Human resources New business generation Mgmt & Finance 3-6

Creative Boutiques Provide only creative services May subcontract from f ull-service agencies Strength is turning out creative work quickly 3-7

Media Buying Specialize in buying media, especially broadcast time Agencies and clients develop media strategy Media Specialist Companies Media buying organizations implement strategies, and buy time and space 3-8

Agency Compensation Methods Commissions from media Fee, cost, and incentive-based systems Percentage charges 3-9

Evaluating Agencies Financial Audit Verify costs, expenses Personnel hours billed Payments to media Payments to suppliers Qualitative Audit Planning Program development Implementation Results achieved 3-10

Direct Marketing Agency Activities Direct mail Database management Research Creative capabilities Media services Direct-Marketing Agency Services Production 3-11

Sales Promotion Agencies Catalog production Promotional planning Creative research Tie-in coordination Fulfillment Premium design and manufacturing Contest/sweepstakes management 3-12

Functions Performed by Public Relations Firms Strategy development Generating publicity Lobbying Public affairs News releases, communication Research Managing crisis Coordination w/promotional areas Special events 3-13

Functions Performed by Interactive Agencies Interactive Media Creation Websites Banner ads Search engine optimization Mobile marketing Social media campaigns Digital media 3-14

Collateral Services Typical collateral services Marketing research Package design Consultants Photographers Printers Video production Event marketing 3-15