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.
Advertising Under Centralized System
President
Production
Finance
Advertising
Marketing
Marketing
Research
Research
and
Development
Sales
Human
Resources
Product
Planning
Decentralized Brand Management System
Corporate
Production
Finance
Sales
Marketing
Research
and
Development
Product
Management
Human
Resources
Marketing
Services
Brand
Manager
Brand
Manager
Ad agency
Ad agency
Advertising
Department
Sales
Promotion
Merchandising
Marketing
Research
Package
Design
Category Management System
Ad Agencies Have Skilled Specialists
Artists
Writers
Researchers
Photographers
Media Analysts
Other Skills
Pros of Advertising Agencies
Highly Skilled
Individuals
Specialize in a
Particular Type of
Business
Advertising
Agencies
Objective
Viewpoint of the
Market
Broad Range of
Experience
Services Provided By Agencies
Agency Services
Account
Service
Marketing
Services
The link between
agency and client
Research
department may
design and
execute research
programs
Managed by the
Account
Executive
Media department
may analyze,
select and
contract media
resources
Creative
Services
Creation and
execution of ads
Copywriters,
artists, other
specialists
The Role of Creative Boutiques
Creative
Boutiques
Provide Only Creative Services
Full-Service Agencies May
Subcontract With Creative
Boutiques
Other Functions Provided by
the Internal Client Departments
Media Buying Can Be Specialized
Media
Buying
Services
Specialize in Buying Media,
Especially Broadcast Time
Agencies and Clients Develop
Media Strategy
Media Buying Organizations
Implement the Strategy and
Buy Time and Space
Reasons for Agencies Losing Clients
Poor
performance
Unrealistic
demands
Personality
conflicts
Personnel
changes
Poor
communications
Changes
in size
Conflict of
interests
Changes
in strategy
Declining
sales
Payment
conflicts
Policy
changes
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.
Specialized Services
• Direct-response agencies
• Sales promotion agencies
• Public relations firms
Sales Promotion Agencies
Promotion Planning
Creative Work
Research
Coordination With
Advertising
Premium Design
Contest/Sweepstakes
Development
Data Base Marketing
Functions of Public Relations Firms
Strategy
Development
Damage
Control
Generating
Publicity
Program
Planning
Image
Portrayal
Lobbying
Public
Affairs
Functions of Direct-Response Agencies
Data Base
Management
Direct
Mail
Research
Media Services
Direct
Response
Agencies
Creative
Production
Functions of Interactive Agencies
Web
Banner Ads
Web Sites
Interactive
Media Creation
CD-ROMs
Kiosks
Audio
Video
Digital
Content
Animation
Special Effects