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IMC Partners & Industry Organization
Who are the IMC partners?
How is the agency world organized?
How do media partners fit in?
Behind the message is the company (client)
How does the agency/client relationship work?
Chapter Outline
More Use of Other Marketing
Communications Functions
More Use of Other Marketing
Communications Functions
Marketing Communications
Dominated by Advertising Agencies
Marketing Communications
Dominated by Advertising Agencies
More Use of Other Marketing
Communications Functions
More Use of Other Marketing
Communications Functions
Marketing Communications
Dominated by Advertising Agencies
Marketing Communications
Dominated by Advertising Agencies
Chapter Perspective: Changing World
Old WorldOld World New WorldNew World
Willingness to consider other media to reach
consumers
Willingness to consider other media to reach
consumersFocus on mass mediaFocus on mass mediaFocus on mass mediaFocus on mass media
Opening Case: Phelps Group
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• “The Wall” of ideas• Surveys of clients, suppliers, and
employees• “Wallbangers” and “BrainBanger’s
Balls”
• “The Wall” of ideas• Surveys of clients, suppliers, and
employees• “Wallbangers” and “BrainBanger’s
Balls”
Get feedback for the agency’s workGet feedback for the agency’s work
• “The Wall” of ideas• Surveys of clients, suppliers, and
employees• “Wallbangers” and “BrainBanger’s
Balls”
• “The Wall” of ideas• Surveys of clients, suppliers, and
employees• “Wallbangers” and “BrainBanger’s
Balls”
Get feedback for the agency’s workGet feedback for the agency’s work
• Recognized as a very creative agency
• Impressive client list: Petco, Whole Foods, Panasonic
• Recognized as a very creative agency
• Impressive client list: Petco, Whole Foods, Panasonic
Opening Case: Phelps Group
Challenge:Challenge:
Answer:Answer:
Results:Results:
Three Players in the Golden Triangle
IMC in Action: Mall of America
Promote Mall of America’s 10th anniversaryPromote Mall of America’s 10th anniversary
An IMC campaign featuring:
• The theme: “Celebrating a decade of fun”
• Effort to involve as many media partners as possible
An IMC campaign featuring:
• The theme: “Celebrating a decade of fun”
• Effort to involve as many media partners as possible
Promote Mall of America’s 10th anniversaryPromote Mall of America’s 10th anniversary
An IMC campaign featuring:
• The theme: “Celebrating a decade of fun”
• Effort to involve as many media partners as possible
An IMC campaign featuring:
• The theme: “Celebrating a decade of fun”
• Effort to involve as many media partners as possible
• USA Today front page story
• CBS Sunday Morning piece
• AP story carried by 30 newspapers
• USA Today front page story
• CBS Sunday Morning piece
• AP story carried by 30 newspapers
IMC In Action: Mall of America
Challenge:Challenge:
Answer:Answer:
Results:Results:
1st Part of Golden Triangle: The Agency
Relationship Marketing
Relationship Marketing
EventsEvents
IMCIMC
AdvertisingAdvertising Direct Marketing
Direct Marketing
Public Relations
Public Relations PackagingPackaging
Relationship Marketing
Relationship Marketing
Public Relations
Public Relations PackagingPackaging
IMCIMC
EventsEvents
Direct Marketing
Direct MarketingAdvertisingAdvertising
Sales Promotion
Sales Promotion
Most Common Types of Agencies
AgenciesAgencies
Tales From the Real World
In an attempt to attract new clients, some ad agencies have jumped on the IMC bandwagon and now position themselves as “IMC agencies.”
In the real world, it’s important to look deeper: some of these agencies simply say they can handle IMC but really don’t have the organization or experience to adequately address all the IMC functions
Think About It
AgenciesNow that you have learned about different
types of agencies, at which would you prefer to work?
AgenciesNow that you have learned about different
types of agencies, at which would you prefer to work?
2nd Part of Golden Triangle: The Media
Media Depend on Outside Sources
To make a profitTo make a profitAdvertisersAdvertisers
ContentContentTo fill time and space:
• TV and radio: programming• Newspaper: news and
features
To fill time and space:• TV and radio: programming• Newspaper: news and
features
To make a profitTo make a profitAdvertisersAdvertisers
Touchstone Pictures LogoTouchstone
Pictures Logo
ABC LogoABC Logo
Disney Channel Logo
Disney Channel Logo
Disney Store Logo
Disney Store Logo
Disney World Logo
Disney World Logo
Fox Kids LogoFox Kids Logo ESPN LogoESPN Logo
Disney OnlineDisney Online
Ultimate form of integration: Disney
MediaIntegration@ Disney
MediaIntegration@ Disney
3rd Part of Golden Triangle: Companies
Two Types of Marketing Efforts
B2CB2C
B2BB2B
Some Firms Do Both: Nike
B2BB2B
Nike’s Relationship with shoe retailers like Foot Locker
B2CB2C
Niketown stores selling shoes directly to consumers
Figure 2-3: Example of Centralized Control
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Figure 2-4: Example of Decentralized Control
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IMC In Action: Selling America
Charlotte Beers Ogilvey & Mather and J. Walter Thompson
An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle
East colleges• Radio Sawa, an Arab-language
version of Voice of America
An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle
East colleges• Radio Sawa, an Arab-language
version of Voice of America
Improve America’s image after 9/11Improve America’s image after 9/11Improve America’s image after 9/11Improve America’s image after 9/11
An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle
Eastern colleges• Radio Sawa, an Arab-language
version of Voice of America
An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle
Eastern colleges• Radio Sawa, an Arab-language
version of Voice of America
Too early to tellToo early to tell
IMC in Action: Selling America
Challenge:Challenge:
Answer:Answer:
Results:Results:
Agency/Media/Company Compensation
Commission: A payment that represents a percentage of a client’s total media spending
Cost of media advertising: Rs. 5 million (100%)
Amount agency bills to client: Rs. 5 million (100%)
Amount agency pays media Rs. 4.25 million (85%)
Amount agency keeps Rs. 750,000 (15%)
Commission = Rs. 750,000/-
Insight: Cross-Functional IMC Teams
• Long-term focus: Keep team members in place for an extended period rather than assembling them for ad hoc projects
• Constant contact: Frequent meetings are important; however, members can also keep in constant contact via email
• Work space: Assigning a cross-functional team its own work space helps keep team members informed
• Support from the top: Top management must support the idea of cross-functional planning by providing adequate resources
Some basic principles for managing cross-functional teams:
Final Note:
IMC is driving the need for closer agency-client relationships
• Fallout: some marketers are consolidating their relationships with fewer agencies
• IBM cut 70 agencies from its $500 million account
Bibliography
Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin.
Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.
Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall International.
Integrated Marketing Communications by David Pickton & Amanda Broderick Published by Prentice Hall.
The End:
"Never worry about numbers. Help one person at a time, and always start
with the person nearest you." - Mother Teresa