1. IMC Partners & Industry Organization
LECTURE-21
IMC Partners & Industry Organization

2. Chapter Questions Who are the IMC partners?
How is the agency world organized?
How do media partners fit in?
Behind the message is the company (client)
How does the agency/client relationship work?

3. Chapter Perspective: Changing World
Old World
New World
Marketing Communications Dominated by Advertising Agencies
More Use of Other Marketing Communications Functions
Focus on mass media
Willingness to consider other media to reach consumers

4. Opening Case: Phelps Group+

5. Opening Case: Phelps Group
Challenge:
Answer:
Results:
Get feedback for the agency’s work
“The Wall” of ideas
Surveys of clients, suppliers, and employees
“Wallbangers” and “BrainBanger’s Balls”
Recognized as a very creative agency
Impressive client list: Petco, Whole Foods, Panasonic

6. Three Players in the Golden Triangle

7. IMC in Action: Mall of America

8. IMC In Action: Mall of America
Challenge:
Answer:
Results:
Promote Mall of America’s 10th anniversary
An IMC campaign featuring:
The theme: “Celebrating a decade of fun”
Effort to involve as many media partners as possible
USA Today front page story
CBS Sunday Morning piece
AP story carried by 30 newspapers

9. 1st Part of Golden Triangle: The Agency

10. Most Common Types of Agencies
Advertising
Advertising
Direct Marketing
Direct Marketing
Sales Promotion
Events
Events
Agencies
Relationship Marketing
Relationship Marketing
IMC
IMC
Public Relations
Packaging
Public Relations
Packaging

11. Tales From the Real World
In an attempt to attract new clients, some ad agencies have jumped on the IMC bandwagon and now position themselves as “IMC agencies.”
In the real world, it’s important to look deeper: some of these agencies simply say they can handle IMC but really don’t have the organization or experience to adequately address all the IMC functions

12. 2nd Part of Golden Triangle: The Media

13. Media Depend on Outside Sources
To make a profit
Advertisers
Content
To fill time and space:
TV and radio: programming
Newspaper: news and features

14. Ultimate form of integration: Disney
Disney Store Logo
Disney World Logo
Disney Online
ABC Logo
Media Disney
Touchstone Pictures Logo
Disney Channel Logo
Fox Kids Logo
ESPN Logo

15. 3rd Part of Golden Triangle: Companies

16. Two Types of Marketing Efforts
B2B
B2C

17. Some Firms Do Both: Nike
B2B
Nike’s Relationship with shoe retailers like Foot Locker
B2C
Niketown stores selling shoes directly to consumers

18. Example of Centralized Control

19. Example of Decentralized Control+

20. Agency/Media/Company Compensation
Commission: A payment that represents a percentage of a client’s total media spending
Cost of media advertising: Rs. 5 million (100%)
Amount agency bills to client: Rs. 5 million (100%)
Amount agency pays media Rs million (85%)
Amount agency keeps Rs. 750, (15%)
Commission = Rs. 750,000

21. IMC Planning Starts at Zero
Zero-based planning
A process that determines objectives and strategies based on current brand and marketplace conditions

22. Tales From the Real World
In the real world, many organizations pay lip service to “zero-based” planning or ignore it completely.
Why? It’s human nature. It is simply much easier and less time consuming to find last year’s plan, dust it off, make a few minor changes, and present it as a new plan.
There’s only one problem: last year’s SWOTs may no longer apply. As a result, the new plan may be addressing old issues—and wasting marketing dollars.

23. Reasons for IMC Planning
Provides a Rational Process
Provides a Rational Process
Informs Everyone of Expectations
Informs Everyone of Expectations
IMC Planning Reasons
Ensures That the Program Is Integrated
Ensures That the Program Is Integrated
Helps Identify Budget
Creates a Benchmark for Measuring Results
Helps Identify Budget

24. Where it Fits in the Organization
Business Plan:
Focused on the profits and brand equity
Corporate Level
Department Plan:
Marketing operations/ production, human resources
Department Level
MC Level
IMC plan:
Advertising, publicity, sales promotion, events and sponsorships, direct response

25. Insight: Cross-Functional IMC Teams
Some basic principles for managing cross-functional teams:
Long-term focus: Keep team members in place for an extended period rather than assembling them for ad hoc projects
Constant contact: Frequent meetings are important; however, members can also keep in constant contact via
Work space: Assigning a cross-functional team its own work space helps keep team members informed
Support from the top: Top management must support the idea of cross-functional planning by providing adequate resources

26. Final Note:
IMC is driving the need for closer agency-client relationships
Fallout: some marketers are consolidating their relationships with fewer agencies
IBM cut 70 agencies from its $500 million account

27. Bibliography Marketing Management – A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.
Strategic Marketing Management – Meeting The
Global Marketing Challenges by Carol H. Anderson &
Julian W. Vincze Published by Houghton Mifflin Company.
Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.
Principles of Marketing by Philip Kotler & Gary Armstrong
Thirteenth Edition, Published by Prentice Hall

28. The End:
"Never worry about numbers. Help one person at a time, and always start with the person nearest you." - Mother Teresa