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Chapter Objectives

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.

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Chapter Objectives

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  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 Account Service Marketing Services Creative 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 Agency Services Account Service Marketing Services

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

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

  10. Reasons for Agencies Losing Clients Personnel changes Changes in strategy Poor performance Poor communications Declining sales Unrealistic demands Changes in size Payment conflicts Personality conflicts Policy changes Conflict of interests Personnel changes Changes in strategy Poor performance Poor communications Declining sales Unrealistic demands Changes in size Payment conflicts Personality conflicts 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 Creative Work Research Coordination With Advertising Premium Design Contest/Sweepstakes Development Data Base Marketing Promotion Planning Creative Work Research Coordination With Advertising Premium Design Contest/Sweepstakes Development

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

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

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

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