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Dr. Mohua Banerjee

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Advertisers (clients)

Advertising agency

Media organizations

MC specialist organizations

Provider of collateral services

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Have the products/services/causes to bemarketed

Provide the funds for advertising &promotions

Develop the marketing program

Perform activities through own advertisingdepartment or outside advertisement agency

Make final decisions regarding advertisingand promotional program

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The centralized system

The decentralized system (including category

management system)

In-house agencies

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Advertising manager controls the entire

promotion operations:

developing plans forapproval by management; planning mediaschedules; recommending promotions program

with other depts.involving marketing functions; with outsideagencies for media buying services to place ads

organize addept.; supervise, control activities; work withproduction, media, art, copy, sales promotion

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Assign each product/brand to a brand managerresponsible for total management of the brand develop marketing program, identify targetmarkets, develop IMC to differentiate the brand

Brands compete against each other within thecompany, not just against outside competitors

Role of marketing services is to assist brandmanagers in planning and coordinating IMC

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- additional layer ofmanagement above brand managers tocoordinate efforts of all brand managers

handling related group of products

- authority to overridebrand managers decisions; coordinates with

agencies to obtain media discounts

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Advertising agency set up, owned, operatedby the advertiser

Given a separate identity and responsible forexpenditure of advertising budget

Companies combine in-house efforts withoutside agencies

Internal creative dept. handles design of weeklycirculars, direct-mail pieces, in-store displays,

promotions (merchandising, sales promo)

Outside agencies develop branding, image-orientedads for specific TV & print matter (creative mediaservices)

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Outside firm Specializes in the creation, production, placement

of communications message, other services tofacilitate marketing and promotions process

Agency staff includes artists, writers, mediaanalysts, researchers with specific skills,knowledge and experience

Large advertisers retain number of agencies for

marketing number of products

Vast experience (Ex. ad agency handling travel-related account)

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creation & execution of ads individuals who conceive ideas for ads,

write headlines, subheads, body copy

how the ad looks; art director, graphic

designer drawings that show what ad will look like (print

ads)

sequence of frames that depict the

commercial in still form (TV ads)

hire printers, engravers,photographers, typographers to complete finishedproduct

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link between adagency and client

Account executive responsible forunderstanding advertisers promoting needs andinterpreting them to agency personnel

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. gather, analyze information usefulin developing ads for clients

Account planners individuals who gather information abouttarget audience that is relevant to client and work with accountexecutives, creative team members, media specialists

. analyzes, selects, contracts for spaceor time in the media that is used to deliver clientsadvertising message; develops media plan

. develops contests,premiums, promotions, POS materials

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Performs basic operating and administrativefunctions accounting, finance, HR

Ad agency must generate new business

64% of income goes to salary and benefits for

employees

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Small ad agencies that provide only creativeservices

Staff includes only writers and artists; nomedia, research, other activities

Companys desire to maintain control ofother functions internally

Full-service agencies subcontract work to

them when busy

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Has program content that attracts consumers sothat advertisers and agencies will want to buytime or space with them

Provides entertainment or information toviewers, readers or subscribers

Provides environment for firms marketingcommunication message

Sells itself as a way for companies to reach theirtarget markets with their messages effectively

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Companies that specialize in the buying ofmedia, particularly radio and television time

Clients and agencies develop their own mediastrategies and hire the buying service toexecute them

They receive large discounts and can saveclient/agent money on media purchases

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Provide services in their area of expertise: Direct marketing agency companies communicate

with consumers through telemarketing, direct mail,internet (database management)

Sales promotion agencies develops contests,sweepstakes, premium offers, sampling programs

Interactive agencies develop websites for theInternet, banner ads, search engine optimization, textmessages, CD-ROMs (digital media)

PR firms generate publicity for a company & itsproducts, focus on relationships & communicationswith relevant publics

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Include marketing research companies,package design firms, consultants,photographers, printers, video productionhouses, event marketing companies

Provide wide range of support functions usedby advertisers, agencies, media

organizations, MC specialist organizations develop brochures, POP materials, etc.

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