Date post: | 21-Dec-2015 |
Category: |
Documents |
Upload: | poppy-oliver |
View: | 244 times |
Download: | 4 times |
MRP/IMC/M1 1
Integrated Marketing Communications
Module 1: An introduction to IMC
Concept 3: Role of advertising agencies
MRP/IMC/M1 2
Integrated Marketing CommunicationsModule 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..?
MRP/IMC/M1 3
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Participants in the IMC process
Advertiser(client)
AdvertisingAgency
MediaOrganizations
MarketingCommunicationSpecialistOrganizations:
-Direct response agencies
-Sales promotion agencies
-Interactive agencies
-PR firms
CollateralServices
MRP/IMC/M1 4
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 5
Integrated Marketing CommunicationsModule 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.
MRP/IMC/M1 6
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 7
Integrated Marketing CommunicationsModule 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.
MRP/IMC/M1 8
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Client side: Organization structure for promotion:
Centralized system
Decentralized system
In-house agency
MRP/IMC/M1 9
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Centralized systemCEO
Production FInance Marketing R&D Human Resources
Marketing Research
Advertising
Sales
Product Planning
Advertising Manager
MRP/IMC/M1 10
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 11
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Decentralized systemCEO
Production FInance Marketing R&D Human Resources
Marketing Services
AdvertisingDepartment
SalesProduct Management
Brand Manager
Brand Manager
Brand Manager
Ad agency
Ad agency
Ad agency
Marketing Research
Product/brand Manager
Product Manager
Product Manager
MRP/IMC/M1 12
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 13
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Organizational Advantages Disadvantages
System
Centralized - Fewer persons - Longer response time
- More top-mgmt - Cannot handle multiple
involvement product lines
Decentralized - Rapid response - Ineffective decision
to problems making
- Increased flexibility - Internal conflicts
In-house agency - Cost savings - Less experience
- More control - Less objectivity
MRP/IMC/M1 14
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 15
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Types of Ad agencies:
-Full service agencies
-Creative boutiques
-Media buying services
MRP/IMC/M1 16
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Creating advertisingCreating
advertising
Planning advertisingPlanning
advertising
Producing advertisingProducing advertising
Performing research
Performing research
Selecting mediaSelecting media
Sales promotions
Sales promotions
Strategic market planning
Strategic market planning
Direct marketing
Direct marketing
Interactive capabilitiesInteractive capabilities
Package designPackage design
Full range of marketing
communication and promotion
services
Full range of marketing
communication and promotion
services
Nonadvertising services
Nonadvertising services
Public relations and publicity
Public relations and publicity
MRP/IMC/M1 17
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 18
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 19
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 20
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 21
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
WritersArt directors
TVproduction
Traffic
Printproduction
AccountExecutive
Accountsupervision
VP accountservices
Media
Research
SalesPromotion
VP marketingservices
Personnel
Accounting
FinanceOffice
management
VP managementand finance
President
Board ofdirectors
VP creativeservices
MRP/IMC/M1 22
Integrated Marketing CommunicationsModule 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.
MRP/IMC/M1 23
Integrated Marketing CommunicationsModule 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.
MRP/IMC/M1 24
Integrated Marketing CommunicationsModule 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
MRP/IMC/M1 25
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
ReferralsReferrals
SolicitationsSolicitations
PresentationsPresentations
Public RelationsPublic Relations Image, ReputationImage, Reputation
MRP/IMC/M1 26
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
How agencies loose clients
Poorperformance
Poorcommunications
UnrealisticClient demands
Personalityconflicts
Personnelchanges
Changesin size of client
or agency
Conflicts ofInterest –
competition
Change in client’s strategy
Decliningsales
Paymentconflicts
Policy Changes
MRP/IMC/M1 27
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Specialized Services
Directmail
Directmail
Databasemanagement
Databasemanagement
ResearchResearch
CreativeCreative
Media servicesMedia services
Direct-MarketingAgencies
Direct-MarketingAgencies
ProductionProduction
Database development, management
Database development, management
MRP/IMC/M1 28
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Sales Promotion Agency
Catalog productionCatalog production
Promotional planningPromotional planning
Creative researchCreative research
Tie-in coordinationTie-in coordination
FulfillmentFulfillment
Premium design and manufacturing
Premium design and manufacturing
Contest/sweepstakes management
Contest/sweepstakes management
MRP/IMC/M1 29
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
PR Firms
Strategydevelopment
Generatingpublicity
Lobbying
Publicaffairs
News releases,communication
Research
Managingcrises
Coordinationwith promotional
areas
Special events
MRP/IMC/M1 30
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Interactive Media Services
Webbanner ads
Webbanner ads
Search engine optimization
Search engine optimizationKiosksKiosks
Interactive Media Creation
Interactive Media Creation
CD-ROMsCD-ROMs
Web sitesWeb sites Text messagesText messages
MRP/IMC/M1 31
Integrated Marketing CommunicationsModule 1: An introduction to IMC
Concept 3: Role of advertising agencies
Collateral Services – Marketing Research Company
Quantitative studiesQuantitative studies
Qualitative researchQualitative research
Help clients under-stand target
audience
Help clients under-stand target
audience