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

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

3. Case Study
TVC: Bangladesh Navy

4. Figure 3.2 - The Advertising Department under a Centralized System

5. Figure 3.3 - Decentralized Brand Management System

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

7. Figure 3.4 - Comparison of Advertising Organizational Systems

8. 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

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

10. 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

11. 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

12. 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

13. 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

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

15. 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

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

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

19. 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

20. 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

21. 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

22. 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

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

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