1. Chapter Objectives
To understand how companies organize advertising and other aspects of IMC.
Understand the role and functions of specialized marketing communications organizations.
Examine the use of advertisers, ad agencies, and integrated service providers.

2. Advertising Under Centralized System
President
Production
Finance
Marketing
Research and Develop-ment
Human Resources
Advertising
Marketing Research
Sales
Product Planning

3. Decentralized Brand Management System
Corporate
Production
Finance
Marketing
Research
Human
and
Resources
Development
Sales
Product
Marketing
Management
Services
Brand
Brand
Advertising
Marketing
Manager
Manager
Department
Research
Ad agency
Ad agency
Sales
Package
Promotion
Design
Merchandising

4. Category Management System

5. Ad Agencies Have Skilled Specialists
Artists
Writers
Researchers
Photographers
Media Analysts
Other Skills

6. Pros of Advertising Agencies
Highly Skilled Individuals
Advertising Agencies
Specialize in a Particular Type of Business
Broad Range of Experience
Objective Viewpoint of the Market

7. Services Provided By Agencies
Agency Services
Account Service
Creative Services
Marketing Services
Account Service
Marketing Services
The link between agency and client
Managed by the Account Executive
Research department may design and execute research programs
Media department may analyze, select and contract media resources
Creation and execution of ads
Copywriters, artists, other specialists

8. The Role of Creative Boutiques
Provide Only Creative Services
Provide Only Creative Services
Full-Service Agencies May Subcontract With Creative Boutiques
Full-Service Agencies May Subcontract With Creative Boutiques
Other Functions Provided by the Internal Client Departments

9. Media Buying Can Be Specialized
Media Buying Services
Specialize in Buying Media, Especially Broadcast Time
Specialize in Buying Media, Especially Broadcast Time
Agencies and Clients Develop Media Strategy
Agencies and Clients Develop Media Strategy
Media Buying Organizations Implement the Strategy and Buy Time and Space

10. Reasons for Agencies Losing Clients
Personnel
changes
Personnel
changes
Changes
in strategy
Changes
in strategy
Poor
performance
Poor
performance
Poor
communications
Poor
communications
Declining
sales
Declining
sales
Unrealistic
demands
Unrealistic
demands
Changes
in size
Changes
in size
Payment
conflicts
Payment
conflicts
Personality
conflicts
Personality
conflicts
Policy
changes
Conflict of
interests
Conflict of
interests

11. Integrated Marketing Communications
Companies must decide whether to use a different organization for each marketing communications function or consolidate them with a large advertising agency that offers all of these services under one roof.

12. Specialized Services Direct-response agencies Sales promotion agencies
Public relations firms

13. Sales Promotion Agencies
Promotion Planning
Promotion Planning
Creative Work
Creative Work
Research
Research
Coordination With Advertising
Coordination With Advertising
Premium Design
Premium Design
Contest/Sweepstakes Development
Contest/Sweepstakes Development
Data Base Marketing

14. Functions of Public Relations Firms
Damage
Control
Damage
Control
Generating
Publicity
Generating
Publicity
Strategy
Development
Strategy
Development
Program
Planning
Image
Portrayal
Image
Portrayal
Lobbying
Lobbying
Public
Affairs
Public
Affairs

15. Functions of Direct-Response Agencies
Data Base
Management
Data Base
Management
Media Services
Media Services
Direct Response
Agencies
Direct
Mail
Direct
Mail
Creative
Creative
Research
Production
Research

16. Functions of Interactive Agencies
Web
Banner Ads
Web
Banner Ads
Web Sites
Web Sites
Interactive Media Creation
CD-ROMs
Kiosks
CD-ROMs
Kiosks
Audio
Audio
Video
Video
Digital
Content
Animation
Special Effects
Special Effects