Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
MRP/IMC/M1
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Development and implementation of IMC program is a complex
process.
It requires the skills and efforts of many people and several
specialized organizations/agencies.
Which are the participants in the IMC process..?
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Participants in the IMC process
Advertiser
(client)
Advertising
Agency
Media
Organizations
Marketing
Communication
Specialist
Organizations:
Collateral
Services
-Direct response
agencies
-Sales promotion
agencies
-Interactive
agencies
-PR firms
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Advertising Agency
It is an outside firm that specializes in the creation, production and
placement of communications message and that may provide
other services to facilitate the marketing and promotions process.
Eg. Grey Worldwide, Leo Burnett Worldwide, Ogilvy & Mather
Worldwide, Saatchi & Saatchi
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Media Organizations
Primary objective is to provide information or entertainment to
their subscribers, viewers or readers. Eg. TV channels, print
media, radio etc are some of the media organizations.
A mediums primary objective is to sell itself as a way for
companies to reach their target markets with their message
effectively.
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Specialized MARCOM services
They include:
Direct marketing agencies – develops direct marketing programs
Sales promotion agencies – develop contests, sweepstakes,
premium offers etc.
Interactive agencies – use of websites, internet
Public relations firms – communication and relationships with
relevant publics
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Collateral Services
They include:
Marketing research company, package design firms, consultants,
photographers, event marketing companies.
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Client side: Organization structure for promotion:
Centralized system
Decentralized system
In-house agency
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Centralized system
CEO
Production
FInance
Marketing
R&D
Human
Resources
Marketing Research
Advertising
Advertising
Manager
Sales
Product Planning
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
In such a system, the basic functions of the advertising manager
are as follows:
1. Planning and Budgeting
2. Administration and execution
3. Coordination with other departments – market research, sales dept
4. Coordination with outside agencies and services
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Decentralized system
Production
FInance
Marketing Services
Advertising
Department
Marketing
Research
CEO
Marketing
R&D
Product Management
Human
Resources
Sales
Product/brand
Manager
Brand Manager
Ad agency
Product
Manager
Brand Manager
Ad agency
Product
Manager
Brand Manager
Ad agency
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
In-house agencies
It is an advertising agency that is set up, owned, and operated by
the advertiser.
Sometimes they are little more than advertising departments only.
They result in cost saving, time saving and are better controlled
by the management.
Eg. Calvin Klein, The Gap, Benetton
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Organizational
System
Advantages
Disadvantages
Centralized
- Fewer persons
- More top-mgmt
involvement
- Longer response time
- Cannot handle multiple
product lines
Decentralized
- Rapid response
to problems
- Increased flexibility
- Ineffective decision
making
- Internal conflicts
In-house agency
- Cost savings
- More control
- Less experience
- Less objectivity
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
The Ad agency’s role in IMC
Reasons for using an agency:
-Services of highly skilled individuals who are specialists in their chosen
fields.
- Industry specific offerings of agencies
-An outside agency can provide an objective viewpoint of the market and
is not subject to internal company policies, biases or other limitations
-It can draw on the broad range of experience
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Types of Ad agencies:
-Full service agencies
-Creative boutiques
-Media buying services
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Planning
advertising
Creating
advertising
Producing
advertising
Full range of
marketing
communication
and promotion
services
Direct
marketing
Selecting media
Interactive
capabilities
Strategic market
planning
Sales
promotions
Performing
research
Nonadvertising
services
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Package design
Public relations
and publicity 16
Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Creative services
-Creation and execution of advertisements
-Copywriters write the message and art department takes care of how
the ad looks
-For TV ads, the layout is known as a storyboard
-Once the copy, layout, illustrations have been completed, the ad is
turned over to the production department
-Printers, photographers, typographers are hired to produce the ad
-A traffic department coordinates the phases of production
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Account services
-This is the link between the ad agency and its clients
-The account executive is responsible for understanding the
advertiser’s marketing and promotions needs and interpreting
them to the agency personnel
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Marketing Services
-It includes a marketing research department to gather, analyze
and interpret information
-The media department analyzes, selects and contracts for space
or time in the media
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Management and Finance
-The ad agency must be managed and perform basic operating
and administrative functions such as accounting, finance and
human resources.
-Large agencies employ administrative, managerial and clerical
people to perform these functions.
-Almost 64% of an agencies income goes to salary and benefits
for its employees
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Board of
directors
President
VP creative
services
VP account
services
Print
production
Writers
Art directors
TV
production
Traffic
VP marketing
services
Media
Account
supervision
VP management
and finance
Sales
Promotion
Research
Office
management
Account
Executive
Finance
Accounting
Personnel
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Creative Boutiques
It is an agency that provides only creative services.
Full service agencies often subcontract work to creative boutiques
when they are very busy or because its own employees do not
have sufficient skills.
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Media buying services
They are independent companies that specialize in the buying of
media time. Eg. Radio and television time
Since they purchase large amounts of time and space, they
receive large discounts and can save the small agency or client
money on media purchases.
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
How agencies gain clients?
Through referrals – from existing clients, media and even other agencies
Business Development
Solicitations – seeks and establish contact with new clients
Presentations – give a speculative presentation for prospective clients
Public relations – participation in events, work with charitable
organizations or just engage in mass media publicity
Image and reputation – developed over the years working with big clients
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Referrals
Presentations
Solicitations
Public Relations
Image, Reputation
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
How agencies loose clients
Poor
performance
Declining
sales
Personnel
changes
Poor
communications
Payment
conflicts
Changes
in size of client
or agency
Unrealistic
Client demands
Personality
conflicts
Policy Changes
Conflicts of
Interest –
competition
Change in
client’s strategy
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Specialized Services
Database
management
DirectMarketing
Agencies
Direct
mail
Research
Media services
Creative
Database
development,
management
MRP/IMC/M1
Production
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Sales Promotion Agency
Promotional planning
Creative research
Tie-in coordination
Fulfillment
Premium design and
manufacturing
Catalog production
Contest/sweepstakes
management
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
PR Firms
Strategy
development
Generating
publicity
Lobbying
Public
affairs
Special events
News releases,
communication
Managing
crises
Research
Coordination
with promotional
areas
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Interactive Media Services
Web
banner ads
Web sites
CD-ROMs
Interactive
Media Creation
Kiosks
Text messages
Search engine
optimization
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
Collateral Services – Marketing Research Company
Help clients understand target audience
Qualitative research
Quantitative studies
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Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
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