Description
BMS Sem-V notes. (Special Studies in Marketing)
Organizing for Advertising and Promotion:
The Role of Ad Agencies and Other Marketing Communications Organizations
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Participants in the IMC Process
Advertiser (Client) Advertising Agency Media Organizations Marketing Communications Specialist Organization Collateral Services Direct Response Agencies Sales Promotion Agencies
Public Relations Firms
Interactive Agencies
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Department Under Centralized System
President
Production
Finance
Marketing
Research and Development
Human Resources
Advertising
Marketing Research
Sales
Product Planning
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pros & Cons of Centralization
+ Positive
Better Communications
- Negative
Less Goal Involvement
Fewer Personnel
The Centralized System
Longer Response Time
Continuity Of Staff
Can’t Do Multiple Product Lines
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Decentralized Brand Management System
Corporate Production Finance Marketing Research and Development Human Resources
Sales
Product Management Brand Manager Brand Manager
Marketing Services Advertising Department Marketing Research
Ad agency
Ad agency
Sales Promotion Merchandising Package Design
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pros & Cons of Decentralization
+ Positive
Concentrated Attention
- Negative
Lack of Experience in IMC The Decentralized System Competition for Resources
Rapid Problem Response
Increased Flexibility
Lack of Authority
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pros & Cons of In-House Agencies
+ Positive
Cost Savings
- Negative
Less Experience
More Control
The In-house Agency
Less Objectivity
Better Coordination
Less Flexibility
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Most No Fear advertising is done by their in-house agency
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ad Agencies Have Skilled Specialists
Artists
Writers
Researchers
Photographers
Media Analysts
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Other Skills
Full-Services Agencies
Planning advertising
Creating advertising
Producing advertising Strategic market planning
Full Range of Marketing Communication and Promotion Services
Performing research Selecting media
Package design
Sales promotion and training
Trade show materials
Non-Advertising Services
Public relations and publicity
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Typical Full-Service Agency Organization
Board of Directors President VP Creative Services Writers
Art Directors
VP Account Services Account Supervision Account Executive Media
VP Marketing Services Research Sales Promotion Personnel
VP Management and Finance Office Management Accounting Finance
TV Produciton
Print Production
Traffic
Traffic
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Services Provided by Agencies
Agency Services
Account Service
The link between agency and client Managed by the Account Executive
Marketing Services
Research department may design and execute research programs
Creative Services
Creation and execution of ads Copywriters, artists, other specialists
Media department may analyze, select and contract media resources
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coca Cola’s in-house boutique created this popular spot
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Methods of Agency Compensation
Commissions Method Cost-Plus Agreements
Compensation Methods
Percentage Charges
Fee Arrangements Incentive-Based Payment
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Young & Rubicam has handled Dr. Pepper for over 30 years
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Why Agencies Lose Clients
Personnel changes
Poor performance
Changes in strategy
Declining sales Payment conflicts Policy changes
Unrealistic demands
Poor communications Changes in size
Personality conflicts
Conflict of interests
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
How Agencies Gain Clients
Referrals
Presentations
Solicitations
Public Relations
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Image, Reputation
Direct Response Agency Activities
Data Base Management Direct Mail
Direct Response Agencies
Media Services
Creative
Research
Production
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Activities performed by Sales Promotion Agencies
Promotion Planning
Creative Work Research
Coordination With Advertising
Premium Design Contest/Sweepstakes Development Data Base Marketing
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Functions performed by Public Relations Firms
Strategy Development
Damage Control
Generating Publicity
Program Planning
Lobbying Public Affairs Image Portrayal
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Functions performed by Interactive Agencies
Web Banner Ads Web Sites
Interactive Media Creation
CD-ROMs Kiosks
Audio Digital Content Animation
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Video
Special Effects
Marketing Research Companies
Planning and Implementing Research Information Application
Analysis and Interpretation
Primary Data Collection
Qualitative & Quantitative
Secondary Data Collection
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
doc_709100921.ppt
BMS Sem-V notes. (Special Studies in Marketing)
Organizing for Advertising and Promotion:
The Role of Ad Agencies and Other Marketing Communications Organizations
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Participants in the IMC Process
Advertiser (Client) Advertising Agency Media Organizations Marketing Communications Specialist Organization Collateral Services Direct Response Agencies Sales Promotion Agencies
Public Relations Firms
Interactive Agencies
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising Department Under Centralized System
President
Production
Finance
Marketing
Research and Development
Human Resources
Advertising
Marketing Research
Sales
Product Planning
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pros & Cons of Centralization
+ Positive
Better Communications
- Negative
Less Goal Involvement
Fewer Personnel
The Centralized System
Longer Response Time
Continuity Of Staff
Can’t Do Multiple Product Lines
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Decentralized Brand Management System
Corporate Production Finance Marketing Research and Development Human Resources
Sales
Product Management Brand Manager Brand Manager
Marketing Services Advertising Department Marketing Research
Ad agency
Ad agency
Sales Promotion Merchandising Package Design
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pros & Cons of Decentralization
+ Positive
Concentrated Attention
- Negative
Lack of Experience in IMC The Decentralized System Competition for Resources
Rapid Problem Response
Increased Flexibility
Lack of Authority
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pros & Cons of In-House Agencies
+ Positive
Cost Savings
- Negative
Less Experience
More Control
The In-house Agency
Less Objectivity
Better Coordination
Less Flexibility
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Most No Fear advertising is done by their in-house agency
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ad Agencies Have Skilled Specialists
Artists
Writers
Researchers
Photographers
Media Analysts
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Other Skills
Full-Services Agencies
Planning advertising
Creating advertising
Producing advertising Strategic market planning
Full Range of Marketing Communication and Promotion Services
Performing research Selecting media
Package design
Sales promotion and training
Trade show materials
Non-Advertising Services
Public relations and publicity
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Typical Full-Service Agency Organization
Board of Directors President VP Creative Services Writers
Art Directors
VP Account Services Account Supervision Account Executive Media
VP Marketing Services Research Sales Promotion Personnel
VP Management and Finance Office Management Accounting Finance
TV Produciton
Print Production
Traffic
Traffic
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Services Provided by Agencies
Agency Services
Account Service
The link between agency and client Managed by the Account Executive
Marketing Services
Research department may design and execute research programs
Creative Services
Creation and execution of ads Copywriters, artists, other specialists
Media department may analyze, select and contract media resources
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coca Cola’s in-house boutique created this popular spot
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Methods of Agency Compensation
Commissions Method Cost-Plus Agreements
Compensation Methods
Percentage Charges
Fee Arrangements Incentive-Based Payment
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Young & Rubicam has handled Dr. Pepper for over 30 years
+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Why Agencies Lose Clients
Personnel changes
Poor performance
Changes in strategy
Declining sales Payment conflicts Policy changes
Unrealistic demands
Poor communications Changes in size
Personality conflicts
Conflict of interests
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
How Agencies Gain Clients
Referrals
Presentations
Solicitations
Public Relations
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Image, Reputation
Direct Response Agency Activities
Data Base Management Direct Mail
Direct Response Agencies
Media Services
Creative
Research
Production
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Activities performed by Sales Promotion Agencies
Promotion Planning
Creative Work Research
Coordination With Advertising
Premium Design Contest/Sweepstakes Development Data Base Marketing
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Functions performed by Public Relations Firms
Strategy Development
Damage Control
Generating Publicity
Program Planning
Lobbying Public Affairs Image Portrayal
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Functions performed by Interactive Agencies
Web Banner Ads Web Sites
Interactive Media Creation
CD-ROMs Kiosks
Audio Digital Content Animation
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Video
Special Effects
Marketing Research Companies
Planning and Implementing Research Information Application
Analysis and Interpretation
Primary Data Collection
Qualitative & Quantitative
Secondary Data Collection
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
doc_709100921.ppt