Description
In this chapter the nature and workings of the marketing communications industry are explored. Practitioners' views of what clients want and client-driven change are discussed in relation to what theory offers practice. The management of an organisation's marketing communications programmes (as discussed in Chapter 4 of this book) normally requires the efforts and inputs of a number of individuals both internally and externally so that there are players in agencies or marketing communications companies as well as client organisations.
MARKETING
COMMUNICATIONS
MANAGEMENT
Anal ysi s, Pl anni ng, I mpl ementat i on
Paul Copley
S E C O N D
E D I T I O N
00_Copley_2e_BAB1404B0062_Prelims.indd 3 20/08/2014 5:20:00 PM
SAGE Publications Ltd
1 Oliver’s Yard
55 City Road
London EC1Y 1SP
SAGE Publications Inc.
2455 Teller Road
Thousand Oaks, California 91320
SAGE Publications India Pvt Ltd
B 1/I 1 Mohan Cooperative Industrial Area
Mathura Road
New Delhi 110 044
SAGE Publications Asia-Pacifc Pte Ltd
3 Church Street
#10-04 Samsung Hub
Singapore 049483
Editor: Matthew Waters
Assistant editor: Nina Smith
Development editor: Robin Lupton
Production editor: Sarah Cooke
Copyeditor: Lynda Watson
Proofreader: Audrey Scriven
Indexer: Silvia Benvenuto
Marketing manager: Alison Borg
Cover design: Francis Kenney
Typeset by: C&M Digitals (P) Ltd, Chennai, India
Printed and bound by CPI Group (UK) Ltd, Croydon,
CR0 4YY
Paul Copley 2014
This edition published 2014
First published by Elsevier Butterworth Heinemann 2004
Apart from any fair dealing for the purposes of research or
private study, or criticism or review, as permitted under the
Copyright, Designs and Patents Act, 1988, this publication
may be reproduced, stored or transmitted in any form, or by
any means, only with the prior permission in writing of the
publishers, or in the case of reprographic reproduction, in
accordance with the terms of licences issued by the Copyright
Licensing Agency. Enquiries concerning reproduction outside
those terms should be sent to the publishers.
All material on the accompanying website can be printed off
and photocopied by the purchaser/user of the book. The web
material itself may not be reproduced in its entirety for use by
others without prior written permission from SAGE. The web
material may not be distributed or sold separately from the book
without the prior written permission of SAGE. Should anyone
wish to use the materials from the website for conference
purposes, they would require separate permission from us. All
material is © Paul Copley, 2014.
Library of Congress Control Number: 2013956531
British Library Cataloguing in Publication data
A catalogue record for this book is available from
the British Library
ISBN 978-0-85702-786-3
ISBN 978-0-85702-787-0 (pbk)
At SAGE we take sustainability seriously. Most of our products are printed in the UK using FSC papers and boards.
When we print overseas we ensure sustainable papers are used as measured by the Egmont grading system.
We undertake an annual audit to monitor our sustainability.
00_Copley_2e_BAB1404B0062_Prelims.indd 4 20/08/2014 5:20:00 PM
The Marketing Communications
Industry
5
CHAPTER OVERVIEW
Introduction
In this chapter the nature and workings of the marketing communications industry are
explored. Practitioners’ views of what clients want and client-driven change are discussed
in relation to what theory offers practice. The management of an organisation’s marketing
communications programmes (as discussed in Chapter 4 of this book) normally requires the
efforts and inputs of a number of individuals both internally and externally so that there
are players in agencies or marketing communications companies as well as client organisa-
tions. The nature of such players and type of system, whether decentralised or centralised,
is discussed in terms of the degree to which agencies are involved with an organisation’s
strategy and the degree of responsibility for the development of an integrated campaign. The
adoption of an in-house function is considered in relation to the advantages of cost savings
and control but also the potential lack of experience and objectivity. Agencies are discussed
in terms of the various types and structure including full service (one-stop shop), creative
boutique, media specialist or ‘à la carte’. Agency selection issues, agency operational rela-
tionships and remuneration and evaluation of performance are also considered. Other, more
specialised agencies and marketing communications companies are discussed so that direct
marketing, sales promotion, public relations and interactive communications firms as well
as those specialising in elements such as sponsorship or product placement are considered
against the backdrop of integration (as discussed in Chapter 1 of this book).
05_Copley_2e_BAB1404B0062_Ch-05.indd 101 20/08/2014 4:08:23 PM
MARKETING COMMUNICATIONS MANAGEMENT 102
Learning objectives
The chapter seeks to explore and explain the nature and structure of the marketing commu-
nications industry. More specifically, after reading this chapter the student will be able to:
appreciate what clients want from the communication practitioner perspective;
critically assess client-driven change;
identify the players involved in marketing communication from both the demand and supply sides;
evaluate the ways in which client organisations deal with agencies and communications companies
and the advantages and disadvantages of varying levels of involvement;
assess the advantages and disadvantages of an in-house marketing communications function;
understand the role of advertising agencies and the services they offer as well as key issues such as
agency selection and remuneration;
understand the role of other types of agencies or communication companies and the services they offer
as well as key issues such as selection and remuneration;
examine the use of integrated services and the nature and responsibilities of transnational agencies
and communications companies.
PRACTITIONERS’ VIEWS OF WHAT CLIENTS WANT
Theory to practice
The theoretical models and frameworks as expressed in Chapter 2 of this book have been
used by writers to help students and practitioners understand and manage the various
forms of communication – whether mediated or interpersonal – that they are or will be
involved with. The simple argument is that theory should inform practice otherwise it
is pointless but practice needs some theoretical underpinnings to provide stability. This
argument is central to this book since there is concern with practitioners and what they
can gain from the theoretical stances taken by writers – whether practitioners themselves
or academicians – in order to provide a basis from which to build the desired communi-
cations. However, many in the industry feel that marketing communications profession-
als need to evolve to stay relevant (Farnworth, 2010), but it is how this can and will occur
that is crucial. Rethinking ideas and reimagining strategies may be the way forward,
in order to avoid stagnation and ‘constantly … meet the quickly changing digital land-
scape’ which has ‘been underway for more than a decade’, and there is a need to keep
skills relevant for all in the company who have a ‘public-facing role’ (Farnworth, 2010),
which now requires social media capabilities. This attitude is new in the sense of dealing
with relevant media but not so new when the ‘what clients want and need’ question is
looked at more closely across time.
Outsourcing and specialisation
More than two decades ago Sommers (1990) suggested that clients ‘pay outside people
for things they can’t do as well themselves’ and that, at the time, the recession and the
‘disaggregation of future media patterns suggests that agencies need to become com-
munications consultants, maybe unbundling creative as well as media functions – and
earn on a non-billing basis’. This has, of course, come to pass. Sommers highlights the
difficulties with longer-term forecasting but maintains that one thing that is predictable
is that clients will continue to pay for things that others can do for them better than they
can themselves, so that the buying in of relevant consultancy would continue, and this
consultancy might be bought in a hierarchical fashion, i.e. from business strategy and
05_Copley_2e_BAB1404B0062_Ch-05.indd 102 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 103
its elements such as ‘the building of new factories or new work procedures’ through to
marketing strategy and its elements such as advertising. For Sommers (1990) the latter
was perhaps not best handled by management consultants but by specialists in the field
and highlights the problem of not being clear about what is involved, with confusion
arising over what communications strategy or advertising strategy is or should be. Here
Sommers argues that ‘we tend to hobble all the other means of communication … and
relegate them to a tactical role’. This fits in with the ethos of IMC in the early 1990s as
discussed in Chapter 1 of this book.
The quest for IMC
As Duncan and Everett (1993) suggested, there were numerous pressures at that time to
integrate marketing communications. From a client perspective this appeared to be one of
the easiest ways an organisation could maximise its return on investment. Yet by the late
1990s some were declaring IMC to be ‘dead’ and that it had died because of indecision over
the selling of advertising and public relations agency services and what ‘integrated’ actu-
ally means, one problem being the existence of separate departments ‘arranged in silos’
(Drobis, 1997). However, it was not really a case of IMC being ‘dead’. Rather, at this point
in time (one of increasing globalisation and turbulent environments) organisations had
simply not been able to make the concept work. By the late 1990s there was the opportunity
to elevate integrative communications to a new status. This would give the function a new
meaning (Drobis, 1997).
Clients clearly wanted to make integrated communications work, which meant being
able to achieve objectives by identifying targets and developing strategy that provided
consistent messages in an efficient and effective manner. However, the technological and
media changes (discussed in Chapter 1 of this book) meant that control of such messages
had been passed from sender to receiver, and clearly much has changed. It was fairly clear
over a decade ago that clients wanted IMC, and indeed integrated communications to
include activities at the corporate level. It was also clear that it is easier to say IMC than to
achieve IMC, and the IMC concept was not being embraced by marketing communications
specialists (Padsetti et al., 1999). It was thought that the effort would be worthwhile since
it was ‘perceived as having a direct, positive impact on market share – largely by the sup-
port it provides for the brand’, even though by the end of the 1990s the evidence was still
anecdotal (Jeans, 1998).
Rethinking IMC
The drive towards IMC and paying more attention to consumer needs has meant the
realisation that linear models of marketing communications and the ways in which
communication is received have had to be rethought. Part of this was the need to turn
certain things on their heads. For example there was a need to think not what adver-
tising does to consumers but what consumers do to (or with) advertising and other
communication elements. There was also recognition of the need to evaluate marketing
communications’ effects in the best way possible. This meant measurement also of the
return on communications investment and measurement of how effective integration
had been. Two key reasons are highlighted by Binet (2005) as being: marketing account-
ability moving up the management agenda, leading to performance measures affecting
remuneration; and ‘what you measure affects what you do (especially if your bonus is
at stake)’. Of course this has to be done in the right way. What clients need, in Binet’s
view, are things like a good brief, time and money for analysis and evaluation, and the
ability to look for effects beyond profit.
05_Copley_2e_BAB1404B0062_Ch-05.indd 103 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 104
Client-driven change in marketing communications
Beyond quantitative data collection
In terms of client-driven change and the client perspective on marketing research gener-
ally, Chadwick (2006) suggested that there are different and distinct categories or levels
of research need and demand. These, in ascending order, are: knowledge management
and business decision support; integration of information and insight generation across
multiple data sources; design, analysis, reporting and generation of insights across multi-
ple studies (or a single source); project management, data processing and quality control;
and finally primary data collection. Clients, it seems, are increasingly wanting more than
mere data collection. There have been calls before now for ‘more qualitative, interpretative
approaches’ (Fletcher, 2003). Chadwick (2006) suggests that some clients are re-arranging
their own departments to make room for more involved inputs from research companies
as outside consultants in decision making and not just data collection.
Changing media landscape
As has been suggested in Chapter 1 of this book, some of the key drivers of change generally
but for marketing communicators particularly lie in the digital arena. The media landscape is
clearly radically different at the start of the second decade of the 21st century from what it was
at the start of the first. Mass audiences are increasingly a thing of the past but not only that;
consumers of all sorts are involved much more and ‘user generated content’ is now common.
‘The current changes in marketing communications are apocalyptic stuff’ wrote Saunders
(2006) while questioning whether or not the big brands were really changing. Saunders’ inter-
views with senior marketers, agency people, trainers and academics revealed three majors
trends that are causing companies to change: the drivers. First, the service business driver with
quicker, better service that is more flexible, where prices are keen and brand promises are
joined up to service delivery through marketing activities. Second, the customer satisfaction
driver and the goal of keeping customers happy, where word of mouth and referrals are often
part of decision-making and customer problem-solving. This is especially the case in a digital
and social networking age where frequency and coverage are part of the old and relationships
and customer engagement part of the now; the enablers. Interactivity in terms of both tradi-
tional and the newer digital forms is being used to enable people, and for co-creation and data
capture; the big ideas. These are problem solvers and come from brand vision, are part of any
communications plan, and are the creative glue in the branding and communications process.
There are big ideas essential for organising communications, identifying values, and making
execution easier. According to Saunders (2006) research to help marketers reduce risk is chang-
ing in line with changing times, with much more innovative observational research being used.
Proven effectiveness
Clients are looking for agencies with ‘effectiveness credentials’ and as such agencies have to
‘live, breathe and practice an “effectiveness culture”’. However, it is ‘very difficult for a client
to understand what an agency is really effective at’ (Thompson, 2008). What the agency is
good at could be any number of things or just a few – or even one specialist service. Clients
claim they are more interested in results than agencies that win awards. They also want to
have people around them that understand the business and who can think beyond today,
immerse themselves in the brand and have an external, objective perspective. Agencies
need to have energy, provide inspiration, and show rigour have logical and analytical abil-
ity (Thompson, 2008). These are qualities and characteristics that have not changed over the
years but there is a bigger emphasis on trust than ever before in an increasingly challenging
environment. In Thompson’s view this requires creative excellence while at the same time
05_Copley_2e_BAB1404B0062_Ch-05.indd 104 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 105
Snapshot Marketing and corporate
communications professionals’ views of
the nature of marketing communications
Agencies and communications companies have had to change to meet the needs of
clients, who in turn have been driven to an extent by changes in customer and con-
sumer behaviour. The latter has changed and continues to do so not least because of
the technological and communications landscape that has provided both opportuni-
ties and threats to marketers. Engagement and interaction are achievable ‘in a timely
and cost-effective manner’, according to Rooseboom (2010) who has identified a num-
ber of trends and tested these out on professionals such as PR, marketing and commu-
nications experts, journalists, media people and customers. Companies have become
their own media, especially with the advent of social media and networks that allow
them to communicate directly with consumers. Control of media, however, is gone
balancing creativity with relevance. A not unreasonable plea for a clear and stimulating brief
comes from Baskin (2010) who suggests that clients expect ‘agencies to put a lot of time, effort
and money into fulfilling the task … so it is only fair and professional’. Others in the adver-
tising industry are more cautious with the client–agency relationship in recessionary times.
Perceptions of competence and other reasons for
relationship severance
A perceived lack of competence, a lack of trust about the financial leadership an agency
has with its suppliers, and a failure by agencies to articulate the added value to a client
through agency involvement, are three reasons given by Baker and Handyside (2010) for
why decoupling might happen. The answer might lie in clients working with multi spe-
cialists (post the decline of the traditional everything for everybody model) but this is not
necessarily what clients want. Although they have been forced to take this route in the long
term it could cost them more according to Baker and Handyside, who argue that clients
could actually ‘reduce overall transaction costs (and potentially improve quality) by work-
ing with fewer providers … there is the basis for a strong and proactive value proposition
here’. There are some established reasons why agencies lose clients. For example size can
be a factor on both sides. If an agency or the client outgrows the other then there may be
a natural parting of the ways. There may also be changes to the client’s approach that the
agency is not equipped to handle, whether this is a move to digital, different media, a more
integrated approach, or new business where the agency lacks the necessary creative exper-
tise or knowledge. A fresh creative approach may be sought if sales stagnate and decline.
Disagreement over remuneration may arise in relation to performance and a conflict of
interest may arise because of acquisitions or changes in the agency client base.
The Snapshot below illustrates the notions of change, globalisation, interactivity, engage-
ment and impact on the communications process. The late 1990s saw technological influence
in terms of, for example, digital and mobile technology and the power of retailers such as
Wal-Mart and Tesco was clearly visible. The future appears to be in the realms of interactivity
but also in the reality of a 24/7/365 world.
(Continued)
05_Copley_2e_BAB1404B0062_Ch-05.indd 105 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 106
and flexibility and adaptability count. There has been the rise of the fearless commu-
nicator to meet these media changes. When control is relinquished, companies have to
meet the challenge of dealing with consumers with more power, especially over brand
messages. Internal becomes external when employees are utilised to deliver the brand
promise through the whole organisation for a consistent consumer experience. There
has been a move to ‘B-to-P’, i.e. business-to-people rather than the old assumption
that a company is B-to-B or B-to-C where lines have blurred, and eventually the model
will be people-to-people. Other trends to look out for are digital media, especially
mobile phones, which means marketers will need to repackage messages, pay walls
and online news provision and unsurprisingly social media and networks.
A study by Swain (2005), on what marketing communications professionals think
about interactivity and consumer perception and consumer control, although explor-
atory using a purposive sample of professionals, recognised the usefulness of measur-
ing impacts but wished to go further and sought insights from such participants. The
results suggested that there was an awareness of interactivity and the need to plan for
it as well as a necessity to include the Internet. The importance of special events ‘when
consumer-controlled interactivity dominates’ was recognised. However, the participants
did not ‘envision an impact on traditional media when consumers can control reception
of messages, including the advertising that supports those media’. It was anticipated that
advertising and advertising agencies would experience a decline but that public relations
and other promotional activities would increase in importance as consumer control grew.
It was expected that clients should be prepared to communicate interactively at the con-
sumer’s convenience, with reputation and ‘fit’ increasing in importance. This follows the
idea of the increasing significance of the relationship between consumer and brand. The
marketing communications mix was expected to change accordingly. However, payment
between client and agency (compensation) was still being viewed in the traditional way
and not as measures of interactive communications’ success, which is clearly an impor-
tant issue. In a study of Danish firms and advertising agencies, Jensen (2007) looked at
the state of play for online marketing communications and where resources might be
directed, concluding that ‘usage of offline MARCOM is negatively related to the priority
of online … and offline and online communications are therefore compensatory’. This
agreed with Swain (2005), i.e. as online grows, offline will decline. Jensen argued that
this was potentially disintegrative and therefore companies would have to take greater
control. There is agreement too that online interactivity will affect the nature of the com-
munications mix with elements such as online games, coupons or competitions need-
ing to be prioritised, and room for improvement in online relationship communication.
Fragmentation and other changes are a challenge to companies who have begun to realise
that increased interactivity has to be harnessed and managed.
(Continued)
Stop Point
The move towards Integrated Marketing Communications and measurement of
return on customer investment has been in place for at least the last two decades but
it is the areas of interaction and engagement, brought about through changes in tech-
nology and communications, that are the focus of the marketer’s attention. Part of this
05_Copley_2e_BAB1404B0062_Ch-05.indd 106 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 107
ROLES AND STRUCTURES IN AGENCIES AND OTHER
COMMUNICATIONS COMPANIES
Changing roles and structures
The marketing communications industry is unsurprisingly sensitive to changes in the
economic climate. Any downturn is likely to see spend by clients reduced, as has been
the case since 2008. However, research on, for example the Australian economy, from
IBISWorld forecasts the advertising industry to ‘generate revenue of $1.3 billion in
2013–14, which is an increase of 1.9% from the previous year’. This of course is depend-
ent upon a recovering and improving economy and increased consumer confidence:
‘During previous years, clients cut advertising budgets amid weaker consumer spend-
ing, particularly on highly discretionary and big-ticket items’ (PRWeb, 2013). This is
coupled with three other key factors; the effects of globalisation, the fragmentation of
the media and the advent of digital media, including social media. Globally there has
been a consolidation of marketing communications businesses ‘as increasing globalisa-
tion of clients necessitates the provision of services on a global basis. Further consolida-
tion is expected over the next five years, as the major players acquire emerging digital
agencies’ (PRWeb, 2013).
Changes to the ways in which consumers view marketing communications and particu-
lar advertising messages fuelled by a more interactive environment have meant a fun-
damental change in audience media consumption habits, the continued development of
web-enabled devices, and a shift towards other marketing communications tools (as dis-
cussed in more detail in Chapter 10 of this book). This has had a profound effect on the
structure of the industry. Even before the development of the Internet during the 1990s the
industry had changed with some firms becoming marketing communications companies
rather than advertising agencies and, for example, media departments breaking off and
becoming independent media brokers and specialists with others becoming digital adver-
tising firms or web development entities: ‘Over time, the mid-size independent agency is
expected to become rarer, with most firms operating at the extremes of the spectrum. There
will be large firms operating under the holding company model, and small firms serving
niche and emerging markets’ (PRWeb, 2013).
There is a perception that working in marketing and especially advertising is pri-
marily a creative role. In many ways this is not far off the mark, depending upon
how creativity is defined, but there are many other roles in advertising and other
communications firms that are less creative in the ‘creative ideas’ sense. Creativity
in this sense has recently been re-defined by Andjelic (2010), writing in Advertising
Age (AdAge Digital), because of the changes that have occurred since digital media
began to take hold. According to Andjelic it is the creatives (the ‘people who make
stuff’) who hold sway over strategists (the ‘people who talk about stuff’) when it
comes to ‘creative matters’. However, digital is different from analogue. In the latter
is the handover of control to the consumer. Undertake the following: 1. Discuss the
notion that control has been handed to the consumer and the need for companies to
manage this process; 2. Examine the importance of flexibility and the skills required
by companies and agencies if they are to equip themselves to get the most out of
digital changes and changes in the media, especially the use of the social media and
networks but also the many other aspects of the digital frontier.
05_Copley_2e_BAB1404B0062_Ch-05.indd 107 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 108
world ‘creative is typically a static commercial art piece (or a “portfolio” of these).
Creativity represented by great copy, an idea that makes a twist on popular culture
or “captures the zeitgeist”, or as a piece-of-art logo and print ad, may indeed belong
to the same era as those media that defined it.’ In the digital world, for Andjelic, ‘The
best creative is the creation of relationships, connections and interactions. It connects
tools with behaviors, locations, and objects. It creates networks or systems.’ Andjelic
argues for strategic creativity now that digital is here and connectivity and networks
are all important. There is a need to ‘plan for a chain reaction’ and for advertising
people to go beyond the conventional creative team, but ‘advertising’s creative class
needs strategists in order to find their way in the digital world’.
Advertising agencies
Roles and responsibilities
There are many people who work within or with the marketing communications industry
in many countries throughout the world. Some sell advertising space in publications such
as newspapers or magazines and others, for example, work in broadcast media or with
online media. All in all there are many roles that are fulfilled. Below are just some of the
key roles that can be found in advertising agencies.
Creative roles
In advertising agencies there have traditionally been a number of directly creative roles
such as designer or copywriter. Creative roles require high-level skills and competencies.
For some time this has included computer literacy as well as paper-based skills and com-
petencies, but more specialist areas are in writing copy or making films.
Graphic designer or creative designer The difference between creative design and
graphic design is that the former is part of the creative process that involves being
original, fresh, imaginative and inventive, and that leads to problem solving. The latter
involves a specific, functional skill set that facilitates the solution. A person could be
both but graphic designers are not always creative and creatives do not always have a
graphic designer’s skills.
Illustrator An illustrator has artistic and design creative skills and is essentially a visual
storyteller with a message that fulfils the client brief in terms of mood and style. Illustrators
may work in a number of areas but from a marketing communications perspective this will
include advertising, merchandising (for example calendars or t-shirts), brochures, cata-
logues and animation. Illustrators will often specialise, as with for example medical illus-
trations, and many prefer to work as freelancers, working for a variety of clients and not
only in advertising or another aspect of marketing communications.
Art director An art director is responsible for the ‘look’ of a campaign and works with oth-
ers, such as copywriters or photographers, so as to meet the client’s brief. An art director
should therefore understand how, for example, photography or typography works.
Producer A producer develops commercials and other forms of marketing for clients in
a wide variety of sectors and media such as television, print, radio or online. A producer
might get involved with other marketing communication elements such as public relations,
perhaps press work such as press releases, or press receptions or conferences. Producers
need to be innovative and able to develop strategy for clients, working with a team of peo-
ple such as graphic designers or photographers.
05_Copley_2e_BAB1404B0062_Ch-05.indd 108 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 109
Director of photography A director of photography, in advertising as in film, has to
collaborate with others, for example a camera crew, costume, hair and make-up and light-
ing, in order to capture the desired ‘look’ of a film, and must understand what is required
to get to the photographic ‘heart’ of the piece that is being produced.
Copywriters Copywriters are responsible for word generation such a straplines, slogans
or scripts, some of which accompany visuals. Copywriters need to be able to work with
others in a creative team, with clients, and in particular with art directors, to make sure all
aspects of a campaign are in place.
Artworker An artworker produces a print-ready product and needs to understand the
printing process and graphic applications. An artworker takes creative design concepts
from a designer and finishes the job by fixing whatever needs fixing in terms of, for exam-
ple, colours or typography. An eye for detail is essential and for design usual. Technical
knowledge of hard- and software is essential for consistency across platforms, from adver-
tising materials to brochures and other literature, exhibition stand work to direct market-
ing and online materials. A creative artworker may also be involved with the mock-up
stage of the process as well as other materials.
Management roles
Account director An account director has full responsibility for a portfolio of clients with
the help of a team of people consisting of account managers or executives. Therefore rev-
enue from the portfolio and the performance of the team falls within this responsibility.
The account director usually has a small number of clients and therefore has relationships
with brand managers or other, more senior managers depending upon the structure of the
client organisation. The account director also has relationships with other agencies and
specialists who might be brought in because of their expertise in particular areas.
Account executive The account executive (or account manager or representative) has a key
liaison role where the ‘account exec’ has to be able to translate ideas from client to crea-
tive teams and vice versa in an effective way. The role requires a certain skill set, including
sales and negotiation (and therefore listening skills), presentation skills and organising and
coordinating skills. Traditionally a ‘go-between’, the account executive has to get to know
clients’ business and be able to take ideas and issues back to the appropriate people in the
agency and vice versa.
Account planner Account planners gather and use research and information that (insight-
fully) feed into a client’s marketing communications campaign. Account planning there-
fore helps both the creative and media effort in relation to the creative and media brief and
is also part of the feedback when looking at performance.
Media buyer and media planner Depending upon the size and type of agency those two
roles might be separate or combined and rolled into one. The media buyer is essentially
involved in obtaining the best media rates and managing the budget whereas the media
planner is involved with adjusting media schedules, often in response to changes in
a campaign, and therefore also responsible for monitoring the effectiveness of chosen
media. The planner needs research skills and ability, and also needs to know the nature
of the target audience and the best media that can access that target. The buyer needs
negotiating skills and ability and both require interpersonal skills, especially in order to
interface with clients and creatives.
05_Copley_2e_BAB1404B0062_Ch-05.indd 109 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 110
The full service agency
As the name suggests a full service agency can provide clients with a full range of services
necessary to marketing communications campaigns, and may even offer services that go
beyond the usual elements of creative inputs or media selection such as a requirement for
help with marketing strategy formulation and execution. Certainly marketing research is
a necessary offering from the full service agency. Marketing research (for example copy
testing or the pre-testing of packaging) is a necessary part of the marketing communica-
tions planning process (as discussed in Chapter 4 of this book) and features strongly in
each of the marketing communications elements (as discussed in Chapter 17 of this book).
Freeland (2010) discusses why clients need a full service agency, suggesting that they do
so because such agencies have become trusted strategic partners and not merely suppliers.
The full service agency may then work with other specialist agencies such as the direct
marketing, sales promotion, digital or PR agency, with strict demarcation lines. Freeland
cites Unilever having worked this way successfully in the past. However, Freeland goes
on to argue that such working in a silo-type way has become increasingly difficult to man-
age in leaner times and ‘It’s also potentially blinkering clients by pushing them to decide
up front which route to take and therefore which specialist agencies they need to employ’.
The answer lies in the advent of the full service communications agency that can embrace
‘the opportunities offered by both long-established and new media channels’ and achieve
‘joined up thinking’ and ‘a true culture of continuous learning and improvement and ulti-
mately maximise your return on investment’.
Agency remuneration Agency remuneration has seen varying trends over time but it is the
advent and rise of digital communications that have shaped the latest changes. Marketing
communications campaigns are more sophisticated than in the past because of digital
impact with more and different types of media available that provide opportunities to help
break through the clutter that exists in an ever-changing business and marketing environ-
ment. Media choice can be quickly reviewed and changed, much more so than in the past,
which underlines the need for clarity in the client–agency relationship.
In the best practice guide on how to pay agencies, the Institute of Practitioners in Advertising
(IPA) guide (IPA, 2012) suggests the first edition guide of 2005 ‘reflected the trend from com-
mission to fee-based remuneration with some development of payment by results’. There are
now, however, ‘more complex and sophisticated remuneration models as agencies and cli-
ents seek to provide for more value-based efficient relationships’. The IPA document argues
that such trends are a result of slimmer budgets and that remuneration models will continue
to evolve, and offers a ten-point checklist of best practice remuneration agreements and eight
principal payment systems. The checklist consists of the following:
1. Simple to understand and easy to administer and execute.
2. Fair to both client and agency with equitable remuneration, including fair and transparent profit.
3. Aligning client and agency interests, priorities and needs.
4. Finalised before agency resources are committed.
5. Recorded in a ratified client–agency written contract that provides reassurance and clarity over time
and a basis for dispute resolution.
6. Flexible enough to accommodate possible changes to many things, for example, services, new products
or corporate objectives.
7. The involvement of senior management stewardship whereby principles are clearly communicated
to both parties so that understanding of the mechanics is established and conflict is avoided.
8. Capable of enduring over time and robust enough to survive change.
05_Copley_2e_BAB1404B0062_Ch-05.indd 110 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 111
9. Based on agreed and understood terms and definitions whereby everyone is talking the same language.
10. Specified tracking and review dates should be part of a formal review and evaluation process and
ideally every six months, but for a newly formed relationship a review should be completed after the
first quarter.
The IPA (2012) guide suggests that fees of various types account for 90 per cent of all crea-
tive agencies agreements with the rest being hybrid agreements that might include a com-
mission element. The eight IPA principal payment systems are listed below.
Retainer fees were introduced when media and planning functions were split so as to
remunerate creative agencies. Such fees are agreed in advance for a period of time and
are based on estimates of staff costs, overheads and an appropriate level of profit, having
followed a detailed plan that includes a work schedule for those involved. This is usually
billed on a monthly basis but can be reviewed over time and there is usually a guaranteed
minimum and an element of pay by results (PBR). The advantages for both client and
agency are numerous according to the IPA guide. The agency has knowledge of its income
and can therefore plan for costs and cash flow. The client can budget for the advertis-
ing and agency cost and any other third party (net) costs including production. There are
no ties to specific media or commission making it media-neutral. On the down side the
scope of the assignment has to be accurate otherwise it will not work, it is less accountable
because it is input- rather than output-based, and it is not based on performance so might
then not encourage the agency to be proactive. It is also time-consuming to negotiate and
administer and increases overhead costs.
Project fees are often used in conjunction with retainer fees and usually applied as a
one-off or ad-hoc cost for a particular project, as the name suggests, and are also often used
to pay for supplementary services such as direct marketing, PR or sales promotion. There
is no notice period, money up-front or financial security as there is with retainers so that
this attracts a premium and thus is ideal as a top-up. There is ease of control and flexibility
when dealing with client needs and it can fit in with integrated or niche approaches. On
the down side it is a short-term rather than long-term relationship in nature and not for
brand building, there is less confidence than with longer-term approaches, and perfor-
mance incentives are difficult to build in to the agency’s output.
Variable fees are based on actual time spent and is used in marketing communications
services such as sales promotions rather than in creative advertising. This is a charge-out,
cost-plus rate for staff services and is based on staff salary, overheads and profit and not
estimated cost as with retainers: it is paid after the event. Although this is easy to adminis-
ter, is flexible, reflects client need and is a clearly defined process of delivery and payment,
there is no way of knowing or predicting the cost in advance. The client cannot budget
and the agency staff cannot act with confidence, and according to the IPA guide there is a
perception of an accountability problem and no direct incentive for efficiency. If the agency
spends more time on a task they will be paid more unless an agreement is reached or a
cap set.
Scale fees and bonuses are likened by the IPA to a ‘salary’ that is a fixed percentage of
either sales or the annual marketing budget. With the case of a scale fee based on sales the
bonus is built in. This can be either a matched percentage of sales increase or a scale fee
pegged on the marketing budget. This is a bonus based on results, calculated on a mix of
subjective and objective elements. The advantages are that it is good for companies seeking
sales as a key performance indicator, as with fmcg companies. It is linked to client success
rather than man hours whereby if the clients sales increase so does the agency’s pay, and
if based on the marketing budget the agency benefits according to increases in the volume
of activity but is media neutral. On the down side this system does not appeal where sales
05_Copley_2e_BAB1404B0062_Ch-05.indd 111 20/08/2014 4:08:25 PM
MARKETING COMMUNICATIONS MANAGEMENT 112
are not the main determinant of success, it is less accountable, not being based on scope
of work and spend level, and it is potentially unfair on the agency since sales are affected
by many other things such as the economy and change and the fact that some marketing
communications services are not related directly to sales.
Consultancy and concept fees are agreed one-off fees that cover the cost of developing
the creative concept of a campaign, based on the estimated value of an idea to the client’s
business. This system will work when work is needed beyond the existing remit and is
usually priced at a premium due to the short-term nature of the assignment. The concept
is retained by its creator who is either paid some form of royalty, licence fee if used again
or outright purchase. This system has the advantage of a client being able to buy into a
first-class concept that will enhance the brand but there are problems with this system. The
value of the idea can be the only determinant of the fee and this can become contentious
because it is outside of the agreement.
Licensing fees are different to the concept fee in that there is a lower rate but no client own-
ership of the concept since a licence fee is paid, and this system is useful with online advertis-
ing. Agencies are incentivised to produce ideas that are big, flexible and long term to build
the brand, the up-front costs are minimised, and the concept can be retained by the agency
yet work well for clients in other markets, which can be negotiated when needed, and this
avoids a dispute over extended rights. On the down side copyright does not apply to idea-
only and straplines cannot be protected by copyright and must be registered as trademarks.
Output or off-the-shelf rate fees are a fixed price per unit, like pay per click, for com-
moditised output. It is simple and reflects what the client is buying in terms of a stand-
ardised purchase but clearly is not suitable if the desired output is not standardised or
commoditised but is in fact tailored to client need.
Commission fees come from media owners and are still in place. This system of basing
the agency’s remuneration on the commission earned from the media owner (15 per cent
gross of media spend) is still the basis for many media agreements despite much specula-
tion about its demise over the last 10 years or so. The IPA guide, however, suggests that it
is almost extinct as the sole means to agency remuneration because of the changes to the
industry and especially the split between media and creative functions. The IPA guide also
suggests that 84 per cent of media agreements are with independent media agencies. It is
simple and easy to administer in mainstream advertising cases, the rate can be negotiated
depending upon level of service and both parties can forget price and concentrate on service
quality. It is, however, a system that does not take output into account as it relies purely on
media spend and because of the dependency on volume it is not suitable for digital contexts
and it is not media neutral. This can lead to a situation whereby agencies are suspected of
promoting media expenditure rather than finding solutions to marketing communications
problems. On the other hand spend cancellations can affect agency revenue.
The IPA (2012) guide suggests that a mixture of remuneration types might be fairest. For
example, retainers can be used with a project fee but such hybrid systems still need to be
guided and mutually agreed.
Payment by results (PBR) schemes
Such schemes are incentive-based and involve key performance indicators (KPIs) that are
used by nearly 70 per cent of agencies in the UK (IPA, 2012). PBR schemes are structured to
wrap around a particular remuneration scheme with the intention to be mutually beneficial
and win-win by providing the client with measurable outcomes while the agency poten-
tially gets a higher return. Stable, long-term relationships work best and enable measure-
ment of goals whether based on subjective (relationship) or objective (actual results such
as sales or market share) criteria. The PBR scheme has the advantage as accountability in
05_Copley_2e_BAB1404B0062_Ch-05.indd 112 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 113
terms of performance and delivery and the long-term nature of such schemes allow agencies
to demonstrate their contribution. On the other hand it may be difficult to calculate one
agency’s contribution when other factors are at play in a complex and complicated situa-
tion. This can lead to relationship damage so that care needs to be taken over the budgeting
and finance and that the scheme is properly set up.
Value-based remuneration
This system works by putting a valuation on agency results whereby a client sets a base
fee to cover the cost of producing outputs and then a mark-up is added (rather than a
discretionary bonus) based on actual performance. This fee is based on mutually agreed
criteria so that reward is based on agreed performance and delivery and has the advantage
of clarity and accountability, but may not work as well for the agency if the mark-up affects
profit adversely. It is complex and resource-heavy to manage and performance criteria are
a significant qualitative element.
Evaluation of agency performance
Monitoring and evaluation in general are a good idea. As suggested in Chapter 4 of this
book, this is a fundamental part of the marketing communications management process.
It is a different kind of evaluation that sees clients evaluating the actual performance of
their advertising agency. For example, Leggatt (2009) reports on a survey by the American
Association of National Advertisers (ANA) which suggests that ‘the majority of market-
ers regularly conduct formal agency performance evaluations’. In fact from the sample of
117 marketers, 82 per cent said they did just this as part of an emphasis on accountability.
The aim is to improve relationships rather than simply find under-performing elements
whereby the evaluation can lead to constructive dialogue and the support of collaborations
within integrated marketing communications and brand-building activities. The kinds of
criteria looked at are innovation, strategy, implementation and follow through, fiscal
stewardship and ideas.
Specialist agencies or communication companies
Direct marketing companies
Direct marketing, discussed more fully in Chapter 12 of this book, is a method of selling
products or services direct to customers rather than through an intermediary, there being
direct communication between the two parties. The original direct marketing effort may be
created in-house by the manufacturer or service provider or this organisation may become
a client of a direct marketing company. In many cases the direct marketing company may
have been subcontracted to do the work by another communications company or agency.
Direct marketing relies heavily on measurement of response rates, whether this be in a
direct mail or other direct sales method such as telemarketing, newspaper inserts or online.
Direct marketing also relies heavily on customer lists and databases. The direct marketing
company therefore has to have this kind of expertise but may also specialise, for example
on direct mail services.
Many direct marketing companies offer outsource fulfilment services, integrated digital
campaign management, database management, or some form of testing such as A/B
(a simple comparison) or multivariate (a more complex) testing. For example A/B testing
can be used very simply online by producing two versions of a web page and is therefore
a method of validating a new design over an older version. It is a form of measurement
rather than guesswork as to which design will produce the best results but regular testing
will ensure the best design is in place to optimise results. Multivariate testing in the same
05_Copley_2e_BAB1404B0062_Ch-05.indd 113 20/08/2014 4:08:25 PM
MARKETING COMMUNICATIONS MANAGEMENT 114
example would compare many more design variables of the web page. These tests can be
used in all forms of media to compare, for example, copy, images, or even the method of
delivery. The UK Direct Marketing Association (DMA, www.dma.org.uk/) and the Institute
of Direct Marketing (IDM, www.theidm.com/) are two bodies that compete for attention
in the direct marketing arena in the UK. The DMA in the UK is part of the US parent DMA
(http://thedma.org/) whereas the IDM is a UK home-grown industry body.
Sales promotion agencies
Sales promotion, discussed at length in Chapter 11 of this book, is the marketing communi-
cations element that adds value to a brand and actively promotes sales increases, product
usage or trial. There are a wide number of techniques that can be employed to achieve
these objectives, the commonest still being coupons of one sort or another. Sales promotion
agencies exist to help clients create tools that will successfully impact directly on sales with
better conversion of intent to actual purchase and higher returns. The dilemma for brand
owners when employing sales promotions is the warnings often received about brand
damage caused by the over-use of sales promotions that are perceived as short-term solu-
tions, while at the same time the results of sales promotions are much easier to quantify
than other forms of marketing communication as the results are usually much more tangi-
ble and attributable to the sales promotion variable. Sales promotions can produce quick
results, which makes these techniques attractive for short-term sales objective achieve-
ment. However, longer-term brand strategy will dictate that brand image is an important
commodity and brand damage needs to be avoided whereby too many and frequent sales
promotion offers can cheapen the brand.
The range of people involved in sales promotion agencies is not dissimilar to those in
advertising agencies. There is usually an account management function that includes,
for example, a sales promotion account executive who is involved in all of the stages
of the process but who reports to an account manager or director. A sales promotion
campaign involves devising, developing and implementing sales promotion ideas that
may be new to a particular context but not new as a sales promotion technique since,
after all, a competition is a competition and a free sample is a free sample. The account
executive classically acts as a liaison between the client and the rest of the agency
and external suppliers of goods and services. Briefing other agency staff, such as the
creative team, the production department or administrative staff, is part of this role.
The Institute of Promotional Marketers (IPM) (www.theipm.org.uk/Home.aspx),
formerly the Institute of Sales Promotion, is a key UK professional body in the sales
promotion area.
Public relations firms
Public relations (PR) as an element of marketing communications is discussed more fully
in Chapter 13 of this book where the differences between advertising and PR are explained.
These differences are reflected in the nature of the PR sector of the marketing communica-
tions industry. The overall job of PR agencies or firms is to create positive relations between
an organisation and its publics, including of course its customers where customers are
considered to be a key public.
Typical jobs in PR firms include working on media, community and employee relations,
and special events, or helping a charity client with fundraising activities. The PR execu-
tive will act on behalf of a client and gather facts and figures and other relevant data that
will help track public concerns and relevant trends in the client’s sphere of operations and
relevant publics. The work involves creating PR events to gain awareness or achieve other
05_Copley_2e_BAB1404B0062_Ch-05.indd 114 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 115
client goals by the employment of tools such as press releases or press receptions. The PR
account executive needs skills such as imagination, communication and writing and must
be able to have the confidence to deal not only with clients, the media and journalists
but also other staff including the account manager or director. A degree of diplomacy is
required but so also are organising, planning and managing skills. Many people who start
or work in PR firms do so after experience in journalism. The professional body in the UK
for PR is the Chartered Institute of Public Relations (CIPR, www.cipr.co.uk/), formerly the
Institute of Public Relations.
Digital/interactive agencies
The trend towards interactivity, enabled not least through digital technology develop-
ments, is said to enhance the ability of companies to get brands closer to customers. Digital
experiences help to build online audiences and communities and often it is design that is
at the heart of the online experience. Online promotional materials include tools such as
brochures and display materials. These days in the wired yet wireless 24/7/365 world, a
client’s website as well as other interactive services such as mobile applications, e-mail or
search engine marketing often drive e-commerce because of the ability to target digital
audiences. Many agencies claim to offer website designs that are search engine friendly.
They do so because search engine marketing is such an important part of marketing for
many organisations. Many digital agencies offer a full service across marketing commu-
nications functions. For example PR involves blogs and social networks that cannot be
ignored. The rationale is that it is better to be involved than to ignore what is going on with
social media and online in forums so that activities include proactive brand monitoring
and listening to what customers are talking about.
Digital media planning and buying is often offered by digital agencies. Clearly the days
of a limited, simple choice of television and radio stations that could be put together with
outdoor or press are over. There are many variations of online display, pay per click (PPC)
advertising words such as Google AdWords, pay-per-post blogs, iAds from Apple, and
many other online forms of conventional marketing communications elements such as
product placement or sponsorship. The kinds of jobs to be found in digital agencies are
similar and often the same as traditional advertising agencies and in practice an agency
may deal with both traditional and digital work. For example in the digital agency or that
part of an agency that deals with digital work, an account director will need experience
of leading, managing and of integrated marketing communications thinking across tra-
ditional and digital communications. This role requires account handling experience and
the ability to have strong relationships with clients. An example of more specific digital
roles is that of the digital designer of rich media advertising solutions for clients. This
could involve a range of digital advertising from banners to mobile advertisements using
desktop, mobile phones or tablets, and requiring experience of, for example, Flash design.
If this role is senior in nature then the usual qualities of leadership and maturity would
also be required. Other specialist digital roles are in the areas of, for example, search engine
optimisation (SEO), mobile advertising or social media.
In-house communications function
The main motivations of cost and control drive some organisations to set up an in-house
communications function. The scale, however, is an important consideration and the differ-
ence between having a communications or advertising manager or even a department rather
than an independent entity within the organisation. One organisation that has achieved this
latter position is Benetton with its in-house Fabrica agency (see the Snapshot immediately
05_Copley_2e_BAB1404B0062_Ch-05.indd 115 20/08/2014 4:08:25 PM
MARKETING COMMUNICATIONS MANAGEMENT 116
below). This is not to say that everything will be done in-house but certainly control and
co-ordination will, though with liaison and effective communication critical to success.
Outsourcing of services generally is not an uncommon occurrence so it should come as no sur-
prise that this would happen with an in-house communications function. As discussed ear-
lier in this chapter, the marketing communications industry has changed radically, especially
since the development of digital communications. Media specialists in particular are sought
after by companies who are happy to outsource media and to an extent creative services.
The control advantage of an in-house function is created from a number of sources, for
example the greater stability of personnel that comes from continuity in staff, time controls,
knowledge of products/services and markets or better access to top management and
decision makers. It may also help with consistency of brand image, especially internation-
ally where the number of partnerships with outside bodies is reduced. On the down side
of having an in-house facility are issues such as internal conflict, the danger of an inward-
looking focus, or less access to creative talent than on the open market where a fresh set of
ideas may lie. A key issue is a lack of objectivity, with the in-house facility being perhaps
too familiar or too close to the company’s offerings. There is also the issue of the skilled
specialists who may be required, but these can be bought and used in conjunction with in-
house and there is greater flexibility when there is an ability to hire and fire if not satisfied.
The Snapshot below discusses fashion brand Benetton’s ‘unhate’ campaign that was
created by its in-house agency Fabrica, and the fast-rising Amsterdam and Los Angeles-
based agency 72andSunny, with a theme of peace and tolerance that has ignited the ‘cul-
tural conversation’ for Benetton yet again.
Snapshot In-house and the external
agency – Benetton’s ‘unhate’
campaign by in-house agency Fabrica
and external agency 72andSunny
In 2011 Benetton’s ‘unhate’ campaign saw the withdrawal of an advertisement
that showed a fake picture of Pope Benedict XVI kissing Muslim Grand Sheik and
Egyptian Imam Mohammad Ahmed el-Tayeb. The Vatican called the touched-up
Photoshop image unacceptable. It was part of a global campaign that used similarly
faked images of world leaders in a similar embrace. So presidents Barack Obama of
the USA and Hugo Chavez of Venezuela, Mahmoud Abbas of Palestine and Benjamin
Netanyahu of Israel, Angela Merkel of Germany and Nicolas Sarkozy of France, were
all portrayed in similar fake poses. The advertising according to United Colors of
Benetton Executive Deputy Chairman Alessandro Benetton was created to promote
the concept of ‘unhate’. The ‘unhate’ campaign could be construed as a ‘peace and
love one world harmony’ campaign, making it not so much a new concept but a con-
tinuation of Benetton’s long-running creative concept. Benetton was reported in the
press as saying that these are very strong images in order to send a strong message,
without being disrespectful of the various world leaders. It would seem the images
are seen by Benetton as ‘conception figures’ that represent ‘brotherhood’ sealed with
a kiss. According to The Huffington Post (2011) reactions to the images were fierce with,
for example, Whitehouse spokesman Eric Schultz telling The Huffington Post that ‘The
White House has a longstanding policy disapproving of the use of the president’s
name and likeness for commercial purposes.’
05_Copley_2e_BAB1404B0062_Ch-05.indd 116 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 117
However, according to Cassidy (2012), while UK agencies ‘put in a stronger show-
ing in the Press category this year … the Grand Prix went to a controversial Benetton
ad from Italy featuring world leaders kissing’. The Benetton campaign was created
by in-house agency Fabrica and it was ‘roundly praised by the jury for prompting
a global debate as well as instigating a comeback for Benetton, which has a history
of controversial advertising’. Cassidy quotes, according to Tham Khai Meng, Ogilvy
& Mather Worldwide chief creative officer and president of the Press jury, that the
advertising campaign was ‘above the others by a million miles’. However, Fabrica
was aided and abetted by 72andSunny, which describes itself as a modern full-service
design and advertising company with offices in Los Angeles and Amsterdam. This
agency was founded in 2004, born out of ‘Frustration that our industry was slow to
adapt to the changing technology landscape and excitement for all the new ways we
can connect with people and a desire to explore that power”’(72andSunny, 2013). The
agency’s clients have included Samsung and Nike.
It was the Amsterdam arm of 72andSunny that worked on the Grand Prix win-
ning campaign. However, the credit for the top prize went to Fabrica at the client’s
request. The Press Lions competition honoured three executions in particular –
US president Barack Obama and Venezuelan president Hugo Chavez, Palestinian
president Mahmoud Abbas and Israeli prime minister Benjamin Netanyahu, and
German chancellor Angela Merkel and former French president Nicolas Sarkozy:
‘Notably absent was the campaign’s most incendiary image – a photo of Pope
Benedict XVI kissing a senior Egyptian imam. Benetton pulled that particular ad
almost immediately after the campaign broke last November’ (Nudd, 2012). It
is argued by Parekh (2012) that 72andSunny, as intended for the client, sparked
debate, and even outrage, among world leaders in Washington and Rome and
beyond. More importantly they ‘also reversed a trend of dwindling relevance for
Benetton, which has built its brand on espousing ideals like peace and tolerance,
and got people talking about the Italian retailer again’. Quoting Matt Jarvis, part-
ner and chief strategy officer at Los Angeles-based 72andSunny, Parekh highlights
that ‘The most valuable thing you can do in marketing is get your clients and
brands into a cultural conversation’ and ‘We’re not the only people doing it, but
I think we’re particularly good at it.’ Other clients, according to Parekh, agree.
For example the work they do is ‘unignorable’ (Eric Hirshberg, CEO of
video-game giant Activision) and ‘The guiding principles for the brand they devel-
oped years ago are so relevant, and we still use them … They really built our global
brand with us’ (Madeleen Klaasen, chief marketing officer at Bugaboo, the Dutch
mobility company).
Stop Point
Benetton has a long history of controversy in its advertising. The 2011 ‘unhate’ cam-
paign is clearly in that same vein. The role of an outside company like 72andSunny is
an interesting move on Benetton’s part. Undertake the following: 1. Discuss the rea-
sons why Benetton would wish to buy-in the help of 72andSunny when they already
have Fabrica; 2. Consider and explain what Benetton might look out for in terms of
Fabrica personnel’s morale.
05_Copley_2e_BAB1404B0062_Ch-05.indd 117 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 118
ROLES AND STRUCTURES IN CLIENT ORGANISATIONS
Structures
A client can have a centralised or decentralised structure. A centralised structure is
one that offers greater authority on making decisions and there is consequently less
internal conflict. Within marketing communications, the functional activities such as
budgeting, creation and production of promotional materials, media planning and
scheduling or marketing research, might all be controlled by one function (and even
one person) that coordinates all such activities, including liaison with outside agen-
cies and services.
Generally speaking, as an organisation grows larger it becomes more difficult to
maintain a centralised structure, mainly because decision making becomes difficult.
A decentralised structure offers the advantages of flexibility and faster problem solving
where attention can be focused on matters at hand. The ‘brand man’ that became the
brand manager position came from such growth in Procter and Gamble (P&G) in the
early 1930s and heralded a decentralised structure for corporations such as P&G and
Unilever. Brand (or product) mangers became responsible for all aspects of the brand
or product range in their charge.
Brand manager
Brand management, which began in the 1930s (with Proctor and Gamble, P&G), per-
sists today, with the role involving the usual elements of a planning and managing
system as discussed in Chapter 4 of this book, such as dealing with targets or budget-
ing. The brand manager has to work closely with whoever is dealing with marketing
communications whether internal or external. The brand manager role, however, has
had to evolve to survive, principally because of the shift towards the more interactive
consumer as digital platforms were developed in the wake of media fragmentation.
A common argument is that brand managers may spend too much time on internally
focused skill sets such as setting and revising budgets and are too focused on short-
term planning and administrative tasks, which results in their neglecting the develop-
ment of long-term plans, often because they must compete for the attention of senior
management in order to access resources, but also for career development, perhaps
reflecting a lack of authority over brand development. These were the kinds of reason
why P&G decided to abandon brand management for category management in the
1980s and then adopt a cohort strategy in 2000.
Category manager
Category management is an additional layer of management above that of the brand
manager that enables the coordination of brand manager efforts so that brand and other
managers, such as advertising managers, come under a category manager for a whole
product category. It is a strategic role devised to help build brands and profit and market
share. During the initial years of the new millennium, P&G introduced its new brand
management strategy that grouped brands together to appeal to consumers with similar
attitudes and needs. This was labelled cohort management but it is in effect a system of
bundling brands together that are aimed at similar consumer groups. This was contrary
to P&G’s previous practice of category management, which is the grouping of brands
according to similar product categories.
05_Copley_2e_BAB1404B0062_Ch-05.indd 118 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 119
Snapshot Rethinking the client–agency
relationship – differing perspectives
from either side
Liu (2013) comments from client advertising experience that whether it is ‘brief-
ing the agency, running a pitch process, or managing a creative project, client-side
marketers all have their own styles when it comes to managing the client/agency
relationship’. As Liu suggests and has been common knowledge for some time,
Marketing services manager
Some organisations group marketing services together under a marketing services
manager who oversees all aspects of marketing communications management, but also
marketing research and any other marketing activity that does not fall into these two
broad functions. In this way the former’s support services would include PR, sales
promotions, packaging design, merchandising or sponsorship, and with the latter all
aspects of secondary and primary marketing research, including a marketing informa-
tion system, would come under the marketing services manager’s remit.
Advertising, promotions or marketing communications manager
Many organisations have a management function where the advertising, promotions or mar-
keting communications manager would liaise with brand managers. These managers would
most likely operate under the overall leadership of a marketing director. The duties of these
managers will depend upon the size of the organisation but usually a marketing commu-
nications manager is responsible for all communications activities except sales, which may
operate separately under a sales director. The advertising, promotions or marketing commu-
nications manager would therefore coordinate the work of the various agencies employed.
Public relations officer or manager
The PR professional working for an organisation that is not-for-profit usually has the title
PRO (public relations officer) but in other organisations may have the title PR manager. The
job entails managing the organisation’s image and reputation. The PRO or manager needs to
have excellent communication skills. Good time management is essential as is the desire and
ability to work with lots of different kinds of people. The job might be in-house within a PR
department or stand-alone but with agency connections. It involves planning and managing
PR campaigns and therefore building strategies, monitoring public and media opinion and,
depending upon the size of the organisation, writing and editing brochures, press releases,
newsletters, websites or social media activities. It might also involve arranging press recep-
tions or conferences, organising exhibitions or open days, and being involved with sponsored
events. Other stakeholders might involve professionals at conferences, charities or commu-
nity leaders. The job title might be communications, media relations or press officer.
The Snapshot below discusses the client–agency relationship and some of the differing
perspectives from both sides of this particular coin.
(Continued)
05_Copley_2e_BAB1404B0062_Ch-05.indd 119 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 120
the client–agency relationship is central to what marketers do. This relationship is
critical to the success of marketing communication campaigns. As Liu says, such
a partnership needs ‘thoughtful management, transparency, and effective ways of
working that all parties respect’. The corollary to this is that there are ways of work-
ing that are not effective and these, of course, have to be avoided otherwise damage
to this critical relationship will ensue. This, for Liu, would affect creative output
since there is a need for innovative solutions to creative challenges. Liu admits that
as a client he is ‘sometimes guilty of thinking quite linearly’, the danger being a
presumption of having the answers. The advice is not to ‘draw a solid line between
the client team and the agency team’ but rather, as a client/agency team, the work
should be jointly owned, presented and the accountability for outcomes jointly
held. Liu reckons that it is sheer folly for the client to try to ‘squeeze as much work
as you can out of them, to dictate exactly what you want’, but rather that the view
should be that ‘you can disagree without being disagreeable’ and that ‘you can be
clear about your expectations while also being collaborative’ with ‘100 per cent can-
dour in both directions’.
Benady (2013), recognising the subjective nature of the client–agency issue within
a PR context, asked senior agency and client-side people for views on agency–cli-
ent relationships because agencies ‘fret constantly about the quality of their asso-
ciation. They pick it over and seem to want to talk about it all the time. Like an
insecure lover, they live in constant fear of being dumped.’ Benady suggests that
there is a ‘serious gulf between agencies and clients in what they feel matters most
in their relationships’, and reports that as part of its 2013 In-House Benchmarking
report, the PRCA (Public Relations Consultants Association) asked both agencies
and clients to list ingredients for a successful relationship. The response included:
Personal chemistry – only half of the agency respondents held this to be a key ingre-
dient and only about one fifth of client respondents thought this.
Regularity of communication – less than a fifth of agency respondents thought this
mattered and only 6 per cent of client respondents did. Apparently there is a fun-
damental difference in that ‘agencies think they are having a relationship, while
clients think they are having a transaction’.
Effectiveness – almost half of those from agencies believed that demonstrating ROI
was key but in contrast only about one third of clients thought this.
Value for money – less than one third of agencies thought value for money was key
while more than one third of clients thought this.
Overall, Benady says that the report suggests that ‘there was surprisingly little con-
sensus on the issues that really matter in client–agency relationships’.
(Continued)
Stop Point
The client–agency relationship has been talked about for decades and yet there still
appear to be some differences between the perspectives of clients and agencies.
05_Copley_2e_BAB1404B0062_Ch-05.indd 120 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 121
Summary of Key Points
The nature and workings of the marketing communications industry involve what
clients want and client-driven change.
Marketing communications professionals know they need to continually evolve
to stay relevant.
Marketing communications professionals need to rethink ideas and reimagine strate-
gies in the knowledge that clients will pay for things they cannot do as well themselves.
Management of an organisation’s marketing communications programmes nor-
mally requires the efforts and inputs of a number of individuals both internally and
externally. There are, therefore, players in agencies or marketing communications
companies as well as client organisations.
Agencies now need, more than ever before, effectiveness credentials.
The nature of such players and type of system, whether decentralised or central-
ised, involves the agencies in an organisation’s strategy with varying degrees of
responsibility when developing an integrated campaign.
The adoption of an in-house function is a consideration in relation to the advan-
tages of cost savings and control against the potential lack of experience and loss
of objectivity.
Agencies are structured in varying ways including full service (one-stop shop),
creative boutique, media specialist or ‘à la carte’.
Agency selection issues, agency operational relationships and remuneration and
evaluation of performance are important issues that need to be considered.
There is a need to rethink the notion of communications doing things to consumers
and to think about what consumers do in terms of interactivity.
Specialised agencies and marketing communications companies exist to service
client need, such as direct marketing, sales promotion, public relations and
interactive communications firms as well as those specialising in elements such
as sponsorship or product placement.
Undertake the following: 1. Compare and contrast the views of Liu and Benady as
expressed above; 2. Discuss the similarities and differences that might be found in the
client–agency relationship in advertising agencies and PR consultancies.
Assignment
Write a 2,000-word report that illustrates how management might bene?t from the installa-
tion of an in-house communication function for both internal and external communication
purposes. Take into consideration the fact that such a function does not preclude the use of
external agencies, experts and specialists.
05_Copley_2e_BAB1404B0062_Ch-05.indd 121 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 122
Discussion Questions
1. Players in the marketing communications industry’s agencies and firms need to address
what clients want and client-driven change. Discuss this notion using examples to
illustrate.
2. Marketing communications professionals know they need to continually evolve to stay
relevant. They also need to rethink ideas and reimagine strategies in the knowledge
that clients will pay for things they cannot do as well themselves. Discuss the challenges
agencies face in negotiating compensation.
3. The management of an organisation’s marketing communications programmes nor-
mally requires the efforts and inputs of a number of individuals both internally and
externally. Discuss the changing role of the account executive in advertising or other
agencies. Include in your discussion a reference to the idea that this role might become
obsolete.
4. Explain why agencies now need, more than ever before, effectiveness credentials.
Include in your discussion examples where agencies have lost accounts and the reasons
why.
5. Discuss the brand management and its relationship with marketing communication
campaigns using examples to illustrate.
6. Discuss why the adoption of an in-house function is a consideration in choosing and
using communications agencies or companies.
7. Explain the role of the media specialist company and suggest reasons why a client
might choose such a company to handle media buying and planning.
8. Agency selection issues include relationships, remuneration and the evaluation of
performance. Discuss agency selection criteria in the context of an industry or sector
of your choice using examples to illustrate.
9. Explain why there is a need to rethink the notion of communications doing things to
consumers and to think about what consumers do in terms of interactivity.
10. Specialised agencies and marketing communications companies exist to service client
need yet there is a desire to have a campaign that is fully integrated. Discuss the use of
specialists in the marketing communications industry in the light of integrated marketing
communication.
Further Reading
Chalaby, J.K. (2008) ‘Advertising in the Golden Age: transnational campaigns and
pan-European television channels’, Global Media and Communication, 4 (2): 139–56.http://gmc.sagepub.com/content/4/2/139
The change that has taken place with regard to pan-regional advertising campaigns by
companies operating in Europe is discussed in the article, which suggests that there
? …
05_Copley_2e_BAB1404B0062_Ch-05.indd 122 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 123
were too few companies wanting to go pan-European leading the stations concerned
into financial difficulties. As the number of companies with an interest in meeting the
globalisation challenge grew, the advertising industry was restructured. The article dis-
cusses the role of media buying agencies with the knowledge to facilitate such cam-
paigns, essentially ‘glocal’, i.e. as the authors put it, a mix of local and global objectives
met by ‘flexible local advertising’ and ‘integrated communication solutions involving
cross-format and cross-platform opportunities’.
Deuze, M. (2007) ‘Converging Culture in the Creative Industries’, International Journal
of Cultural Studies, 10 (2): 243–63.http://ics.sagepub.com/content/10/2/243.full.
pdf+html
This article looks at emerging practices in the media professions, including advertising
and public relations as part of marketing communications, in response to the changing
global environment that is now technology-led where interactivity is at the centre. The
article looks at the key trends such as upstream marketing and citizen journalism that
are part of culture convergence and media production and consumption. Deuze looks
through a lens of a combination of individual creativity and mass production, known as
‘creative industries’.
Johnson, M. and Tennens, M. (2005) ‘The Challenges of Implementing a Marketing
Strategy: a practitioner’s view’, Journal of Medical Marketing, 5 (1): 44–56.http://mmj.
sagepub.com/content/5/1/44.full.pdf+html
This article is concerned with marketing campaigns that are linked to bottom line results
and driven by strategic objectives, and as such is a case study of a pharmacy business
that for many years did not consciously use marketing tools and techniques. Written by
the Chief Operating Officer of the business and the MD of the marketing agency special-
ising in the design and implementation of marketing communications programmes, the
article discusses the implementation of a programme that includes research, telemar-
keting, brand image, collateral development, public relations and customer relations
management. The resultant marketing strategy, integrated with sales strategy and the
development of the people in the business, is explained.
Miller, R. (2002) ‘A Prototype Audit for Marketing Communications Professionals’,
Marketing Theory, 2 (4): 41928.http://mtq.sagepub.com/content/2/4/419.full.
pdf+html
Identifying and measuring the functional marketing skills organisations need in the
marketing communications area is advocated in this article, which is concerned with
job design, recruitment, training and outsourcing. The author provides a framework for
skills definition and measurement in planning their careers in the knowledge that a better
understanding of the marketing communications expertise required enables educators to
offer courses in relevant applied marketing communications.
Sinclair, J. (2009) ‘The Advertising Industry in Latin America: a comparative study’,
The International Communication Gazette, 71 (8): 713–33.http://gaz.sagepub.com/
content/71/8/713
The author collaborates with several others from four Latin American locations
(Brazil, Mexico, Argentina and Chile) and discusses economic and cultural globalisa-
tion. Beginning with the great debate about the cultural imperialism of earlier dec-
ades whereby the rich countries of North America and Europe tended to dominate
‘third world’ countries and moving on to the neglected area of the advertising indus-
try, Sinclair suggests that the article presents a ‘detailed empirical account’ of the
modes in which the advertising industry now binds the four countries of the study
economically and culturally.
05_Copley_2e_BAB1404B0062_Ch-05.indd 123 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 124
REFERENCES
72andsunny (2013) 72andSunny website, available at: www.72andsunny.com/
Andjelic, A. (2010) ‘Do we need a new definition of creativity? In today’s digital world,
the answer is yes’, AdAge Digital, 20 August, available at:http://adage.com/article/
digitalnext/a-definition-creativity/145448/
Baker, C. and Handyside, M. (2010) ‘The agency model is broken – but you can fix it’, Market
Leader, Quarter 1, available at: www.warc.com
Baskin, M. (2010) ‘Briefing your agency’, Warc Best Practice, February, available at: www.warc.
com
Benady, A. (2013) ‘What makes a successful client-agency relationship?’, PR Week, 22 August,
available at: www.prweek.com/article/1208278/makes-successful-client-agency-relationship
Binet, L. (2005) ‘Evaluating marketing communications: a guide to best practice’, Market Leader,
Issue 29, Summer, available at: www.warc.com
Cassidy, A. (2012) ‘Cannes 2012: Italy’s controversial Benetton ad takes Grand Prix for press’, 20
June, available at: www.campaignlive.co.uk/news/1137354/
Chadwick, S. (2006) ‘Client-driven change – the impact of change in client needs on the research
industry’, International Journal of Marketing Research, 48 (4): 391–414.
Chalaby, J.K. (2008) ‘Advertising in the global age’, Global Media and Communication, 4 (2): 139–56.
Deuze, M. (2007) ‘Converging culture in the creative industries’, International Journal of Cultural
Studies, 10 (2): 243–63.
Drobis, D. R. (1997) ‘Integrated marketing communications redefined’, Journal of Integrated Com-
munications, 8: 6–10.
Duncan, T.R. and Everett, S.E. (1993) ‘Client perceptions of integrated marketing communica-
tions’, Journal of Advertising Research, 33 (3): 30–9.
Farnworth, S. (2010) ‘To stay relevant how do communications professionals need to evolve?’,
Jolt Social Media, available at:http://stevefarnsworth.wordpress.com/2010/09/15/to-stay-
relevant-how-do-communications-professionals-need-to-evolve/
Fletcher, J. (2003) ‘A data factory in the middle of storyville? Preparing the market research
industry for the dream economy’, the Market Research Society Annual Conference, MRS on
WARC.com, available at www.warc.com
Freeland, C. (2010) ‘Why clients need a full-service agency’, Marketing Week, 12 July, available at:
www.marketingweek.co.uk/why-clients-need-a-full-service-agency/3015695.article
The Huffington Post (2011) ‘Benetton “unhate” campaign shows world leaders kissing’, 17 November,
available at: www.huffingtonpost.com/2011/11/16/benetton-unhate-campaign-world-leaders-
kissing_n_1097333.html
IPA (2012) ‘Agency Remuneration: A best practice guide on how to pay agencies’, Joint industry
guidelines for marketing professionals in working effectively with agencies, 2nd edition, London:
IPA. Available at: www.ipa.co.uk/document/agency-remuneration-best-practice-guide
Jeans, R. (1998) ‘Integrating marketing communications’, Admap, December. Available at: www.
warc.com/Content/ContentViewer.aspx?ID=7d532321-177b-4739-9134-ded1cf4d9648&q=i
ntegrated+marketing+communications&CID=A7299&PUB=ADMAP&MasterContentRef=
7d532321-177b-4739-9134-ded1cf4d9648
Jensen, M.B. (2007) ‘Online marketing communication potential – priorities in Danish firms and
advertising agencies’, European Journal of Marketing, 42 (3/4): 502–25.
Johnson, M. and Tennens, M. (2005) ‘The challenges of implementing a marketing strategy: a
practitioner’s view’, Journal of Medical Marketing, 5 (1): 44–56.
Leggatt, H. (2009) ‘Are you evaluating your agency’s performance?’, BizReport Research, 16
September, available at: www.bizreport.com/2009/09/are_you_evaluating_your_agencys_
performance.html
Liu, J. (2013) ‘Rethinking the client-agency relationship’, The Drum, 17 July, available at: www.
thedrum.com/opinion/2013/07/17/rethinking-client-agency-relationship
Miller, R. (2002) ‘A prototype audit for marketing communications professionals’, Marketing
Theory, 2 (4): 419–28.
05_Copley_2e_BAB1404B0062_Ch-05.indd 124 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 125
Nudd, T. (2012) ‘Press grand prix goes to Benetton’s kissing ads from Fabrica, 72andSunny’, Adweek,
available at: www.adweek.com/news/advertising-branding/press-grand-prix-goes-benettons-
kissing-ads-fabrica-72andsunny-141244
Padsetti, M., Fourie, W., Hyde, K., Kitchen, P. And Eagle, L. (1999) ‘Perceptions of integrated
marketing communications among marketers and advertising agency executives in New
Zealand’, International Journal of Advertising, 18 (1): 89–119.
Parekh, R. (2012) ‘72andSunny is no. 5 on the Ad Age Agency A-list’, AdAge, available at:http://adage.com/article/special-report-agency-alist/72andsunny-5-ad-age-agency-a-
list/232187/
PRWeb (2013) ‘Advertising agencies in Australia industry market research report now up-
dated by IBISWorld’, PRWeb, 31 August, available at: www.prweb.com/releases/2013/8/
prweb11060136.htm
Roosebooom, M. (2010) ‘PR, communication, and marketing trends 2011 parts 1 & 2’, available
at: www.mynewsdesk.com/uk/mynewsdesk/blog_posts
Saunders, J. (2006) ‘Growing up digitally: change drivers in marketing’, Market Leader, 33, pp.
31–9, Summer.
Sinclair, J. (2009) ‘The advertising industry in Latin America: a comparative study’, The Interna-
tional Communication Gazette, 71 (8): 713–33.
Sommers, M. (1990) ‘Agencies: what changes are clients looking for?’, Admap, July, available at
www.warc.com
Swain, W.N. (2005) ‘Perceptions of interactivity and consumer control in marketing communi-
cations: an exploratory survey of marketing communications professionals’, Journal of Interac-
tive Advertising, 6 (1): 109–24, Fall.
Thompson, S. (2008) ‘The importance of an agency effectiveness culture to clients’, The Institute
of Practitioners in Advertising, available at: www.warc.com
WordPress.com (2012) ‘United Colors of Benetton – unemployee of the year’, WordPress.com,
18 September, available at:http://thisisnotadvertising.wordpress.com/tag/72andsunny/
05_Copley_2e_BAB1404B0062_Ch-05.indd 125 20/08/2014 4:08:26 PM
doc_279737648.pdf
In this chapter the nature and workings of the marketing communications industry are explored. Practitioners' views of what clients want and client-driven change are discussed in relation to what theory offers practice. The management of an organisation's marketing communications programmes (as discussed in Chapter 4 of this book) normally requires the efforts and inputs of a number of individuals both internally and externally so that there are players in agencies or marketing communications companies as well as client organisations.
MARKETING
COMMUNICATIONS
MANAGEMENT
Anal ysi s, Pl anni ng, I mpl ementat i on
Paul Copley
S E C O N D
E D I T I O N
00_Copley_2e_BAB1404B0062_Prelims.indd 3 20/08/2014 5:20:00 PM
SAGE Publications Ltd
1 Oliver’s Yard
55 City Road
London EC1Y 1SP
SAGE Publications Inc.
2455 Teller Road
Thousand Oaks, California 91320
SAGE Publications India Pvt Ltd
B 1/I 1 Mohan Cooperative Industrial Area
Mathura Road
New Delhi 110 044
SAGE Publications Asia-Pacifc Pte Ltd
3 Church Street
#10-04 Samsung Hub
Singapore 049483
Editor: Matthew Waters
Assistant editor: Nina Smith
Development editor: Robin Lupton
Production editor: Sarah Cooke
Copyeditor: Lynda Watson
Proofreader: Audrey Scriven
Indexer: Silvia Benvenuto
Marketing manager: Alison Borg
Cover design: Francis Kenney
Typeset by: C&M Digitals (P) Ltd, Chennai, India
Printed and bound by CPI Group (UK) Ltd, Croydon,
CR0 4YY
Paul Copley 2014
This edition published 2014
First published by Elsevier Butterworth Heinemann 2004
Apart from any fair dealing for the purposes of research or
private study, or criticism or review, as permitted under the
Copyright, Designs and Patents Act, 1988, this publication
may be reproduced, stored or transmitted in any form, or by
any means, only with the prior permission in writing of the
publishers, or in the case of reprographic reproduction, in
accordance with the terms of licences issued by the Copyright
Licensing Agency. Enquiries concerning reproduction outside
those terms should be sent to the publishers.
All material on the accompanying website can be printed off
and photocopied by the purchaser/user of the book. The web
material itself may not be reproduced in its entirety for use by
others without prior written permission from SAGE. The web
material may not be distributed or sold separately from the book
without the prior written permission of SAGE. Should anyone
wish to use the materials from the website for conference
purposes, they would require separate permission from us. All
material is © Paul Copley, 2014.
Library of Congress Control Number: 2013956531
British Library Cataloguing in Publication data
A catalogue record for this book is available from
the British Library
ISBN 978-0-85702-786-3
ISBN 978-0-85702-787-0 (pbk)
At SAGE we take sustainability seriously. Most of our products are printed in the UK using FSC papers and boards.
When we print overseas we ensure sustainable papers are used as measured by the Egmont grading system.
We undertake an annual audit to monitor our sustainability.
00_Copley_2e_BAB1404B0062_Prelims.indd 4 20/08/2014 5:20:00 PM
The Marketing Communications
Industry
5
CHAPTER OVERVIEW
Introduction
In this chapter the nature and workings of the marketing communications industry are
explored. Practitioners’ views of what clients want and client-driven change are discussed
in relation to what theory offers practice. The management of an organisation’s marketing
communications programmes (as discussed in Chapter 4 of this book) normally requires the
efforts and inputs of a number of individuals both internally and externally so that there
are players in agencies or marketing communications companies as well as client organisa-
tions. The nature of such players and type of system, whether decentralised or centralised,
is discussed in terms of the degree to which agencies are involved with an organisation’s
strategy and the degree of responsibility for the development of an integrated campaign. The
adoption of an in-house function is considered in relation to the advantages of cost savings
and control but also the potential lack of experience and objectivity. Agencies are discussed
in terms of the various types and structure including full service (one-stop shop), creative
boutique, media specialist or ‘à la carte’. Agency selection issues, agency operational rela-
tionships and remuneration and evaluation of performance are also considered. Other, more
specialised agencies and marketing communications companies are discussed so that direct
marketing, sales promotion, public relations and interactive communications firms as well
as those specialising in elements such as sponsorship or product placement are considered
against the backdrop of integration (as discussed in Chapter 1 of this book).
05_Copley_2e_BAB1404B0062_Ch-05.indd 101 20/08/2014 4:08:23 PM
MARKETING COMMUNICATIONS MANAGEMENT 102
Learning objectives
The chapter seeks to explore and explain the nature and structure of the marketing commu-
nications industry. More specifically, after reading this chapter the student will be able to:
appreciate what clients want from the communication practitioner perspective;
critically assess client-driven change;
identify the players involved in marketing communication from both the demand and supply sides;
evaluate the ways in which client organisations deal with agencies and communications companies
and the advantages and disadvantages of varying levels of involvement;
assess the advantages and disadvantages of an in-house marketing communications function;
understand the role of advertising agencies and the services they offer as well as key issues such as
agency selection and remuneration;
understand the role of other types of agencies or communication companies and the services they offer
as well as key issues such as selection and remuneration;
examine the use of integrated services and the nature and responsibilities of transnational agencies
and communications companies.
PRACTITIONERS’ VIEWS OF WHAT CLIENTS WANT
Theory to practice
The theoretical models and frameworks as expressed in Chapter 2 of this book have been
used by writers to help students and practitioners understand and manage the various
forms of communication – whether mediated or interpersonal – that they are or will be
involved with. The simple argument is that theory should inform practice otherwise it
is pointless but practice needs some theoretical underpinnings to provide stability. This
argument is central to this book since there is concern with practitioners and what they
can gain from the theoretical stances taken by writers – whether practitioners themselves
or academicians – in order to provide a basis from which to build the desired communi-
cations. However, many in the industry feel that marketing communications profession-
als need to evolve to stay relevant (Farnworth, 2010), but it is how this can and will occur
that is crucial. Rethinking ideas and reimagining strategies may be the way forward,
in order to avoid stagnation and ‘constantly … meet the quickly changing digital land-
scape’ which has ‘been underway for more than a decade’, and there is a need to keep
skills relevant for all in the company who have a ‘public-facing role’ (Farnworth, 2010),
which now requires social media capabilities. This attitude is new in the sense of dealing
with relevant media but not so new when the ‘what clients want and need’ question is
looked at more closely across time.
Outsourcing and specialisation
More than two decades ago Sommers (1990) suggested that clients ‘pay outside people
for things they can’t do as well themselves’ and that, at the time, the recession and the
‘disaggregation of future media patterns suggests that agencies need to become com-
munications consultants, maybe unbundling creative as well as media functions – and
earn on a non-billing basis’. This has, of course, come to pass. Sommers highlights the
difficulties with longer-term forecasting but maintains that one thing that is predictable
is that clients will continue to pay for things that others can do for them better than they
can themselves, so that the buying in of relevant consultancy would continue, and this
consultancy might be bought in a hierarchical fashion, i.e. from business strategy and
05_Copley_2e_BAB1404B0062_Ch-05.indd 102 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 103
its elements such as ‘the building of new factories or new work procedures’ through to
marketing strategy and its elements such as advertising. For Sommers (1990) the latter
was perhaps not best handled by management consultants but by specialists in the field
and highlights the problem of not being clear about what is involved, with confusion
arising over what communications strategy or advertising strategy is or should be. Here
Sommers argues that ‘we tend to hobble all the other means of communication … and
relegate them to a tactical role’. This fits in with the ethos of IMC in the early 1990s as
discussed in Chapter 1 of this book.
The quest for IMC
As Duncan and Everett (1993) suggested, there were numerous pressures at that time to
integrate marketing communications. From a client perspective this appeared to be one of
the easiest ways an organisation could maximise its return on investment. Yet by the late
1990s some were declaring IMC to be ‘dead’ and that it had died because of indecision over
the selling of advertising and public relations agency services and what ‘integrated’ actu-
ally means, one problem being the existence of separate departments ‘arranged in silos’
(Drobis, 1997). However, it was not really a case of IMC being ‘dead’. Rather, at this point
in time (one of increasing globalisation and turbulent environments) organisations had
simply not been able to make the concept work. By the late 1990s there was the opportunity
to elevate integrative communications to a new status. This would give the function a new
meaning (Drobis, 1997).
Clients clearly wanted to make integrated communications work, which meant being
able to achieve objectives by identifying targets and developing strategy that provided
consistent messages in an efficient and effective manner. However, the technological and
media changes (discussed in Chapter 1 of this book) meant that control of such messages
had been passed from sender to receiver, and clearly much has changed. It was fairly clear
over a decade ago that clients wanted IMC, and indeed integrated communications to
include activities at the corporate level. It was also clear that it is easier to say IMC than to
achieve IMC, and the IMC concept was not being embraced by marketing communications
specialists (Padsetti et al., 1999). It was thought that the effort would be worthwhile since
it was ‘perceived as having a direct, positive impact on market share – largely by the sup-
port it provides for the brand’, even though by the end of the 1990s the evidence was still
anecdotal (Jeans, 1998).
Rethinking IMC
The drive towards IMC and paying more attention to consumer needs has meant the
realisation that linear models of marketing communications and the ways in which
communication is received have had to be rethought. Part of this was the need to turn
certain things on their heads. For example there was a need to think not what adver-
tising does to consumers but what consumers do to (or with) advertising and other
communication elements. There was also recognition of the need to evaluate marketing
communications’ effects in the best way possible. This meant measurement also of the
return on communications investment and measurement of how effective integration
had been. Two key reasons are highlighted by Binet (2005) as being: marketing account-
ability moving up the management agenda, leading to performance measures affecting
remuneration; and ‘what you measure affects what you do (especially if your bonus is
at stake)’. Of course this has to be done in the right way. What clients need, in Binet’s
view, are things like a good brief, time and money for analysis and evaluation, and the
ability to look for effects beyond profit.
05_Copley_2e_BAB1404B0062_Ch-05.indd 103 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 104
Client-driven change in marketing communications
Beyond quantitative data collection
In terms of client-driven change and the client perspective on marketing research gener-
ally, Chadwick (2006) suggested that there are different and distinct categories or levels
of research need and demand. These, in ascending order, are: knowledge management
and business decision support; integration of information and insight generation across
multiple data sources; design, analysis, reporting and generation of insights across multi-
ple studies (or a single source); project management, data processing and quality control;
and finally primary data collection. Clients, it seems, are increasingly wanting more than
mere data collection. There have been calls before now for ‘more qualitative, interpretative
approaches’ (Fletcher, 2003). Chadwick (2006) suggests that some clients are re-arranging
their own departments to make room for more involved inputs from research companies
as outside consultants in decision making and not just data collection.
Changing media landscape
As has been suggested in Chapter 1 of this book, some of the key drivers of change generally
but for marketing communicators particularly lie in the digital arena. The media landscape is
clearly radically different at the start of the second decade of the 21st century from what it was
at the start of the first. Mass audiences are increasingly a thing of the past but not only that;
consumers of all sorts are involved much more and ‘user generated content’ is now common.
‘The current changes in marketing communications are apocalyptic stuff’ wrote Saunders
(2006) while questioning whether or not the big brands were really changing. Saunders’ inter-
views with senior marketers, agency people, trainers and academics revealed three majors
trends that are causing companies to change: the drivers. First, the service business driver with
quicker, better service that is more flexible, where prices are keen and brand promises are
joined up to service delivery through marketing activities. Second, the customer satisfaction
driver and the goal of keeping customers happy, where word of mouth and referrals are often
part of decision-making and customer problem-solving. This is especially the case in a digital
and social networking age where frequency and coverage are part of the old and relationships
and customer engagement part of the now; the enablers. Interactivity in terms of both tradi-
tional and the newer digital forms is being used to enable people, and for co-creation and data
capture; the big ideas. These are problem solvers and come from brand vision, are part of any
communications plan, and are the creative glue in the branding and communications process.
There are big ideas essential for organising communications, identifying values, and making
execution easier. According to Saunders (2006) research to help marketers reduce risk is chang-
ing in line with changing times, with much more innovative observational research being used.
Proven effectiveness
Clients are looking for agencies with ‘effectiveness credentials’ and as such agencies have to
‘live, breathe and practice an “effectiveness culture”’. However, it is ‘very difficult for a client
to understand what an agency is really effective at’ (Thompson, 2008). What the agency is
good at could be any number of things or just a few – or even one specialist service. Clients
claim they are more interested in results than agencies that win awards. They also want to
have people around them that understand the business and who can think beyond today,
immerse themselves in the brand and have an external, objective perspective. Agencies
need to have energy, provide inspiration, and show rigour have logical and analytical abil-
ity (Thompson, 2008). These are qualities and characteristics that have not changed over the
years but there is a bigger emphasis on trust than ever before in an increasingly challenging
environment. In Thompson’s view this requires creative excellence while at the same time
05_Copley_2e_BAB1404B0062_Ch-05.indd 104 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 105
Snapshot Marketing and corporate
communications professionals’ views of
the nature of marketing communications
Agencies and communications companies have had to change to meet the needs of
clients, who in turn have been driven to an extent by changes in customer and con-
sumer behaviour. The latter has changed and continues to do so not least because of
the technological and communications landscape that has provided both opportuni-
ties and threats to marketers. Engagement and interaction are achievable ‘in a timely
and cost-effective manner’, according to Rooseboom (2010) who has identified a num-
ber of trends and tested these out on professionals such as PR, marketing and commu-
nications experts, journalists, media people and customers. Companies have become
their own media, especially with the advent of social media and networks that allow
them to communicate directly with consumers. Control of media, however, is gone
balancing creativity with relevance. A not unreasonable plea for a clear and stimulating brief
comes from Baskin (2010) who suggests that clients expect ‘agencies to put a lot of time, effort
and money into fulfilling the task … so it is only fair and professional’. Others in the adver-
tising industry are more cautious with the client–agency relationship in recessionary times.
Perceptions of competence and other reasons for
relationship severance
A perceived lack of competence, a lack of trust about the financial leadership an agency
has with its suppliers, and a failure by agencies to articulate the added value to a client
through agency involvement, are three reasons given by Baker and Handyside (2010) for
why decoupling might happen. The answer might lie in clients working with multi spe-
cialists (post the decline of the traditional everything for everybody model) but this is not
necessarily what clients want. Although they have been forced to take this route in the long
term it could cost them more according to Baker and Handyside, who argue that clients
could actually ‘reduce overall transaction costs (and potentially improve quality) by work-
ing with fewer providers … there is the basis for a strong and proactive value proposition
here’. There are some established reasons why agencies lose clients. For example size can
be a factor on both sides. If an agency or the client outgrows the other then there may be
a natural parting of the ways. There may also be changes to the client’s approach that the
agency is not equipped to handle, whether this is a move to digital, different media, a more
integrated approach, or new business where the agency lacks the necessary creative exper-
tise or knowledge. A fresh creative approach may be sought if sales stagnate and decline.
Disagreement over remuneration may arise in relation to performance and a conflict of
interest may arise because of acquisitions or changes in the agency client base.
The Snapshot below illustrates the notions of change, globalisation, interactivity, engage-
ment and impact on the communications process. The late 1990s saw technological influence
in terms of, for example, digital and mobile technology and the power of retailers such as
Wal-Mart and Tesco was clearly visible. The future appears to be in the realms of interactivity
but also in the reality of a 24/7/365 world.
(Continued)
05_Copley_2e_BAB1404B0062_Ch-05.indd 105 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 106
and flexibility and adaptability count. There has been the rise of the fearless commu-
nicator to meet these media changes. When control is relinquished, companies have to
meet the challenge of dealing with consumers with more power, especially over brand
messages. Internal becomes external when employees are utilised to deliver the brand
promise through the whole organisation for a consistent consumer experience. There
has been a move to ‘B-to-P’, i.e. business-to-people rather than the old assumption
that a company is B-to-B or B-to-C where lines have blurred, and eventually the model
will be people-to-people. Other trends to look out for are digital media, especially
mobile phones, which means marketers will need to repackage messages, pay walls
and online news provision and unsurprisingly social media and networks.
A study by Swain (2005), on what marketing communications professionals think
about interactivity and consumer perception and consumer control, although explor-
atory using a purposive sample of professionals, recognised the usefulness of measur-
ing impacts but wished to go further and sought insights from such participants. The
results suggested that there was an awareness of interactivity and the need to plan for
it as well as a necessity to include the Internet. The importance of special events ‘when
consumer-controlled interactivity dominates’ was recognised. However, the participants
did not ‘envision an impact on traditional media when consumers can control reception
of messages, including the advertising that supports those media’. It was anticipated that
advertising and advertising agencies would experience a decline but that public relations
and other promotional activities would increase in importance as consumer control grew.
It was expected that clients should be prepared to communicate interactively at the con-
sumer’s convenience, with reputation and ‘fit’ increasing in importance. This follows the
idea of the increasing significance of the relationship between consumer and brand. The
marketing communications mix was expected to change accordingly. However, payment
between client and agency (compensation) was still being viewed in the traditional way
and not as measures of interactive communications’ success, which is clearly an impor-
tant issue. In a study of Danish firms and advertising agencies, Jensen (2007) looked at
the state of play for online marketing communications and where resources might be
directed, concluding that ‘usage of offline MARCOM is negatively related to the priority
of online … and offline and online communications are therefore compensatory’. This
agreed with Swain (2005), i.e. as online grows, offline will decline. Jensen argued that
this was potentially disintegrative and therefore companies would have to take greater
control. There is agreement too that online interactivity will affect the nature of the com-
munications mix with elements such as online games, coupons or competitions need-
ing to be prioritised, and room for improvement in online relationship communication.
Fragmentation and other changes are a challenge to companies who have begun to realise
that increased interactivity has to be harnessed and managed.
(Continued)
Stop Point
The move towards Integrated Marketing Communications and measurement of
return on customer investment has been in place for at least the last two decades but
it is the areas of interaction and engagement, brought about through changes in tech-
nology and communications, that are the focus of the marketer’s attention. Part of this
05_Copley_2e_BAB1404B0062_Ch-05.indd 106 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 107
ROLES AND STRUCTURES IN AGENCIES AND OTHER
COMMUNICATIONS COMPANIES
Changing roles and structures
The marketing communications industry is unsurprisingly sensitive to changes in the
economic climate. Any downturn is likely to see spend by clients reduced, as has been
the case since 2008. However, research on, for example the Australian economy, from
IBISWorld forecasts the advertising industry to ‘generate revenue of $1.3 billion in
2013–14, which is an increase of 1.9% from the previous year’. This of course is depend-
ent upon a recovering and improving economy and increased consumer confidence:
‘During previous years, clients cut advertising budgets amid weaker consumer spend-
ing, particularly on highly discretionary and big-ticket items’ (PRWeb, 2013). This is
coupled with three other key factors; the effects of globalisation, the fragmentation of
the media and the advent of digital media, including social media. Globally there has
been a consolidation of marketing communications businesses ‘as increasing globalisa-
tion of clients necessitates the provision of services on a global basis. Further consolida-
tion is expected over the next five years, as the major players acquire emerging digital
agencies’ (PRWeb, 2013).
Changes to the ways in which consumers view marketing communications and particu-
lar advertising messages fuelled by a more interactive environment have meant a fun-
damental change in audience media consumption habits, the continued development of
web-enabled devices, and a shift towards other marketing communications tools (as dis-
cussed in more detail in Chapter 10 of this book). This has had a profound effect on the
structure of the industry. Even before the development of the Internet during the 1990s the
industry had changed with some firms becoming marketing communications companies
rather than advertising agencies and, for example, media departments breaking off and
becoming independent media brokers and specialists with others becoming digital adver-
tising firms or web development entities: ‘Over time, the mid-size independent agency is
expected to become rarer, with most firms operating at the extremes of the spectrum. There
will be large firms operating under the holding company model, and small firms serving
niche and emerging markets’ (PRWeb, 2013).
There is a perception that working in marketing and especially advertising is pri-
marily a creative role. In many ways this is not far off the mark, depending upon
how creativity is defined, but there are many other roles in advertising and other
communications firms that are less creative in the ‘creative ideas’ sense. Creativity
in this sense has recently been re-defined by Andjelic (2010), writing in Advertising
Age (AdAge Digital), because of the changes that have occurred since digital media
began to take hold. According to Andjelic it is the creatives (the ‘people who make
stuff’) who hold sway over strategists (the ‘people who talk about stuff’) when it
comes to ‘creative matters’. However, digital is different from analogue. In the latter
is the handover of control to the consumer. Undertake the following: 1. Discuss the
notion that control has been handed to the consumer and the need for companies to
manage this process; 2. Examine the importance of flexibility and the skills required
by companies and agencies if they are to equip themselves to get the most out of
digital changes and changes in the media, especially the use of the social media and
networks but also the many other aspects of the digital frontier.
05_Copley_2e_BAB1404B0062_Ch-05.indd 107 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 108
world ‘creative is typically a static commercial art piece (or a “portfolio” of these).
Creativity represented by great copy, an idea that makes a twist on popular culture
or “captures the zeitgeist”, or as a piece-of-art logo and print ad, may indeed belong
to the same era as those media that defined it.’ In the digital world, for Andjelic, ‘The
best creative is the creation of relationships, connections and interactions. It connects
tools with behaviors, locations, and objects. It creates networks or systems.’ Andjelic
argues for strategic creativity now that digital is here and connectivity and networks
are all important. There is a need to ‘plan for a chain reaction’ and for advertising
people to go beyond the conventional creative team, but ‘advertising’s creative class
needs strategists in order to find their way in the digital world’.
Advertising agencies
Roles and responsibilities
There are many people who work within or with the marketing communications industry
in many countries throughout the world. Some sell advertising space in publications such
as newspapers or magazines and others, for example, work in broadcast media or with
online media. All in all there are many roles that are fulfilled. Below are just some of the
key roles that can be found in advertising agencies.
Creative roles
In advertising agencies there have traditionally been a number of directly creative roles
such as designer or copywriter. Creative roles require high-level skills and competencies.
For some time this has included computer literacy as well as paper-based skills and com-
petencies, but more specialist areas are in writing copy or making films.
Graphic designer or creative designer The difference between creative design and
graphic design is that the former is part of the creative process that involves being
original, fresh, imaginative and inventive, and that leads to problem solving. The latter
involves a specific, functional skill set that facilitates the solution. A person could be
both but graphic designers are not always creative and creatives do not always have a
graphic designer’s skills.
Illustrator An illustrator has artistic and design creative skills and is essentially a visual
storyteller with a message that fulfils the client brief in terms of mood and style. Illustrators
may work in a number of areas but from a marketing communications perspective this will
include advertising, merchandising (for example calendars or t-shirts), brochures, cata-
logues and animation. Illustrators will often specialise, as with for example medical illus-
trations, and many prefer to work as freelancers, working for a variety of clients and not
only in advertising or another aspect of marketing communications.
Art director An art director is responsible for the ‘look’ of a campaign and works with oth-
ers, such as copywriters or photographers, so as to meet the client’s brief. An art director
should therefore understand how, for example, photography or typography works.
Producer A producer develops commercials and other forms of marketing for clients in
a wide variety of sectors and media such as television, print, radio or online. A producer
might get involved with other marketing communication elements such as public relations,
perhaps press work such as press releases, or press receptions or conferences. Producers
need to be innovative and able to develop strategy for clients, working with a team of peo-
ple such as graphic designers or photographers.
05_Copley_2e_BAB1404B0062_Ch-05.indd 108 20/08/2014 4:08:24 PM
THE MARKETING COMMUNICATIONS INDUSTRY 109
Director of photography A director of photography, in advertising as in film, has to
collaborate with others, for example a camera crew, costume, hair and make-up and light-
ing, in order to capture the desired ‘look’ of a film, and must understand what is required
to get to the photographic ‘heart’ of the piece that is being produced.
Copywriters Copywriters are responsible for word generation such a straplines, slogans
or scripts, some of which accompany visuals. Copywriters need to be able to work with
others in a creative team, with clients, and in particular with art directors, to make sure all
aspects of a campaign are in place.
Artworker An artworker produces a print-ready product and needs to understand the
printing process and graphic applications. An artworker takes creative design concepts
from a designer and finishes the job by fixing whatever needs fixing in terms of, for exam-
ple, colours or typography. An eye for detail is essential and for design usual. Technical
knowledge of hard- and software is essential for consistency across platforms, from adver-
tising materials to brochures and other literature, exhibition stand work to direct market-
ing and online materials. A creative artworker may also be involved with the mock-up
stage of the process as well as other materials.
Management roles
Account director An account director has full responsibility for a portfolio of clients with
the help of a team of people consisting of account managers or executives. Therefore rev-
enue from the portfolio and the performance of the team falls within this responsibility.
The account director usually has a small number of clients and therefore has relationships
with brand managers or other, more senior managers depending upon the structure of the
client organisation. The account director also has relationships with other agencies and
specialists who might be brought in because of their expertise in particular areas.
Account executive The account executive (or account manager or representative) has a key
liaison role where the ‘account exec’ has to be able to translate ideas from client to crea-
tive teams and vice versa in an effective way. The role requires a certain skill set, including
sales and negotiation (and therefore listening skills), presentation skills and organising and
coordinating skills. Traditionally a ‘go-between’, the account executive has to get to know
clients’ business and be able to take ideas and issues back to the appropriate people in the
agency and vice versa.
Account planner Account planners gather and use research and information that (insight-
fully) feed into a client’s marketing communications campaign. Account planning there-
fore helps both the creative and media effort in relation to the creative and media brief and
is also part of the feedback when looking at performance.
Media buyer and media planner Depending upon the size and type of agency those two
roles might be separate or combined and rolled into one. The media buyer is essentially
involved in obtaining the best media rates and managing the budget whereas the media
planner is involved with adjusting media schedules, often in response to changes in
a campaign, and therefore also responsible for monitoring the effectiveness of chosen
media. The planner needs research skills and ability, and also needs to know the nature
of the target audience and the best media that can access that target. The buyer needs
negotiating skills and ability and both require interpersonal skills, especially in order to
interface with clients and creatives.
05_Copley_2e_BAB1404B0062_Ch-05.indd 109 20/08/2014 4:08:24 PM
MARKETING COMMUNICATIONS MANAGEMENT 110
The full service agency
As the name suggests a full service agency can provide clients with a full range of services
necessary to marketing communications campaigns, and may even offer services that go
beyond the usual elements of creative inputs or media selection such as a requirement for
help with marketing strategy formulation and execution. Certainly marketing research is
a necessary offering from the full service agency. Marketing research (for example copy
testing or the pre-testing of packaging) is a necessary part of the marketing communica-
tions planning process (as discussed in Chapter 4 of this book) and features strongly in
each of the marketing communications elements (as discussed in Chapter 17 of this book).
Freeland (2010) discusses why clients need a full service agency, suggesting that they do
so because such agencies have become trusted strategic partners and not merely suppliers.
The full service agency may then work with other specialist agencies such as the direct
marketing, sales promotion, digital or PR agency, with strict demarcation lines. Freeland
cites Unilever having worked this way successfully in the past. However, Freeland goes
on to argue that such working in a silo-type way has become increasingly difficult to man-
age in leaner times and ‘It’s also potentially blinkering clients by pushing them to decide
up front which route to take and therefore which specialist agencies they need to employ’.
The answer lies in the advent of the full service communications agency that can embrace
‘the opportunities offered by both long-established and new media channels’ and achieve
‘joined up thinking’ and ‘a true culture of continuous learning and improvement and ulti-
mately maximise your return on investment’.
Agency remuneration Agency remuneration has seen varying trends over time but it is the
advent and rise of digital communications that have shaped the latest changes. Marketing
communications campaigns are more sophisticated than in the past because of digital
impact with more and different types of media available that provide opportunities to help
break through the clutter that exists in an ever-changing business and marketing environ-
ment. Media choice can be quickly reviewed and changed, much more so than in the past,
which underlines the need for clarity in the client–agency relationship.
In the best practice guide on how to pay agencies, the Institute of Practitioners in Advertising
(IPA) guide (IPA, 2012) suggests the first edition guide of 2005 ‘reflected the trend from com-
mission to fee-based remuneration with some development of payment by results’. There are
now, however, ‘more complex and sophisticated remuneration models as agencies and cli-
ents seek to provide for more value-based efficient relationships’. The IPA document argues
that such trends are a result of slimmer budgets and that remuneration models will continue
to evolve, and offers a ten-point checklist of best practice remuneration agreements and eight
principal payment systems. The checklist consists of the following:
1. Simple to understand and easy to administer and execute.
2. Fair to both client and agency with equitable remuneration, including fair and transparent profit.
3. Aligning client and agency interests, priorities and needs.
4. Finalised before agency resources are committed.
5. Recorded in a ratified client–agency written contract that provides reassurance and clarity over time
and a basis for dispute resolution.
6. Flexible enough to accommodate possible changes to many things, for example, services, new products
or corporate objectives.
7. The involvement of senior management stewardship whereby principles are clearly communicated
to both parties so that understanding of the mechanics is established and conflict is avoided.
8. Capable of enduring over time and robust enough to survive change.
05_Copley_2e_BAB1404B0062_Ch-05.indd 110 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 111
9. Based on agreed and understood terms and definitions whereby everyone is talking the same language.
10. Specified tracking and review dates should be part of a formal review and evaluation process and
ideally every six months, but for a newly formed relationship a review should be completed after the
first quarter.
The IPA (2012) guide suggests that fees of various types account for 90 per cent of all crea-
tive agencies agreements with the rest being hybrid agreements that might include a com-
mission element. The eight IPA principal payment systems are listed below.
Retainer fees were introduced when media and planning functions were split so as to
remunerate creative agencies. Such fees are agreed in advance for a period of time and
are based on estimates of staff costs, overheads and an appropriate level of profit, having
followed a detailed plan that includes a work schedule for those involved. This is usually
billed on a monthly basis but can be reviewed over time and there is usually a guaranteed
minimum and an element of pay by results (PBR). The advantages for both client and
agency are numerous according to the IPA guide. The agency has knowledge of its income
and can therefore plan for costs and cash flow. The client can budget for the advertis-
ing and agency cost and any other third party (net) costs including production. There are
no ties to specific media or commission making it media-neutral. On the down side the
scope of the assignment has to be accurate otherwise it will not work, it is less accountable
because it is input- rather than output-based, and it is not based on performance so might
then not encourage the agency to be proactive. It is also time-consuming to negotiate and
administer and increases overhead costs.
Project fees are often used in conjunction with retainer fees and usually applied as a
one-off or ad-hoc cost for a particular project, as the name suggests, and are also often used
to pay for supplementary services such as direct marketing, PR or sales promotion. There
is no notice period, money up-front or financial security as there is with retainers so that
this attracts a premium and thus is ideal as a top-up. There is ease of control and flexibility
when dealing with client needs and it can fit in with integrated or niche approaches. On
the down side it is a short-term rather than long-term relationship in nature and not for
brand building, there is less confidence than with longer-term approaches, and perfor-
mance incentives are difficult to build in to the agency’s output.
Variable fees are based on actual time spent and is used in marketing communications
services such as sales promotions rather than in creative advertising. This is a charge-out,
cost-plus rate for staff services and is based on staff salary, overheads and profit and not
estimated cost as with retainers: it is paid after the event. Although this is easy to adminis-
ter, is flexible, reflects client need and is a clearly defined process of delivery and payment,
there is no way of knowing or predicting the cost in advance. The client cannot budget
and the agency staff cannot act with confidence, and according to the IPA guide there is a
perception of an accountability problem and no direct incentive for efficiency. If the agency
spends more time on a task they will be paid more unless an agreement is reached or a
cap set.
Scale fees and bonuses are likened by the IPA to a ‘salary’ that is a fixed percentage of
either sales or the annual marketing budget. With the case of a scale fee based on sales the
bonus is built in. This can be either a matched percentage of sales increase or a scale fee
pegged on the marketing budget. This is a bonus based on results, calculated on a mix of
subjective and objective elements. The advantages are that it is good for companies seeking
sales as a key performance indicator, as with fmcg companies. It is linked to client success
rather than man hours whereby if the clients sales increase so does the agency’s pay, and
if based on the marketing budget the agency benefits according to increases in the volume
of activity but is media neutral. On the down side this system does not appeal where sales
05_Copley_2e_BAB1404B0062_Ch-05.indd 111 20/08/2014 4:08:25 PM
MARKETING COMMUNICATIONS MANAGEMENT 112
are not the main determinant of success, it is less accountable, not being based on scope
of work and spend level, and it is potentially unfair on the agency since sales are affected
by many other things such as the economy and change and the fact that some marketing
communications services are not related directly to sales.
Consultancy and concept fees are agreed one-off fees that cover the cost of developing
the creative concept of a campaign, based on the estimated value of an idea to the client’s
business. This system will work when work is needed beyond the existing remit and is
usually priced at a premium due to the short-term nature of the assignment. The concept
is retained by its creator who is either paid some form of royalty, licence fee if used again
or outright purchase. This system has the advantage of a client being able to buy into a
first-class concept that will enhance the brand but there are problems with this system. The
value of the idea can be the only determinant of the fee and this can become contentious
because it is outside of the agreement.
Licensing fees are different to the concept fee in that there is a lower rate but no client own-
ership of the concept since a licence fee is paid, and this system is useful with online advertis-
ing. Agencies are incentivised to produce ideas that are big, flexible and long term to build
the brand, the up-front costs are minimised, and the concept can be retained by the agency
yet work well for clients in other markets, which can be negotiated when needed, and this
avoids a dispute over extended rights. On the down side copyright does not apply to idea-
only and straplines cannot be protected by copyright and must be registered as trademarks.
Output or off-the-shelf rate fees are a fixed price per unit, like pay per click, for com-
moditised output. It is simple and reflects what the client is buying in terms of a stand-
ardised purchase but clearly is not suitable if the desired output is not standardised or
commoditised but is in fact tailored to client need.
Commission fees come from media owners and are still in place. This system of basing
the agency’s remuneration on the commission earned from the media owner (15 per cent
gross of media spend) is still the basis for many media agreements despite much specula-
tion about its demise over the last 10 years or so. The IPA guide, however, suggests that it
is almost extinct as the sole means to agency remuneration because of the changes to the
industry and especially the split between media and creative functions. The IPA guide also
suggests that 84 per cent of media agreements are with independent media agencies. It is
simple and easy to administer in mainstream advertising cases, the rate can be negotiated
depending upon level of service and both parties can forget price and concentrate on service
quality. It is, however, a system that does not take output into account as it relies purely on
media spend and because of the dependency on volume it is not suitable for digital contexts
and it is not media neutral. This can lead to a situation whereby agencies are suspected of
promoting media expenditure rather than finding solutions to marketing communications
problems. On the other hand spend cancellations can affect agency revenue.
The IPA (2012) guide suggests that a mixture of remuneration types might be fairest. For
example, retainers can be used with a project fee but such hybrid systems still need to be
guided and mutually agreed.
Payment by results (PBR) schemes
Such schemes are incentive-based and involve key performance indicators (KPIs) that are
used by nearly 70 per cent of agencies in the UK (IPA, 2012). PBR schemes are structured to
wrap around a particular remuneration scheme with the intention to be mutually beneficial
and win-win by providing the client with measurable outcomes while the agency poten-
tially gets a higher return. Stable, long-term relationships work best and enable measure-
ment of goals whether based on subjective (relationship) or objective (actual results such
as sales or market share) criteria. The PBR scheme has the advantage as accountability in
05_Copley_2e_BAB1404B0062_Ch-05.indd 112 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 113
terms of performance and delivery and the long-term nature of such schemes allow agencies
to demonstrate their contribution. On the other hand it may be difficult to calculate one
agency’s contribution when other factors are at play in a complex and complicated situa-
tion. This can lead to relationship damage so that care needs to be taken over the budgeting
and finance and that the scheme is properly set up.
Value-based remuneration
This system works by putting a valuation on agency results whereby a client sets a base
fee to cover the cost of producing outputs and then a mark-up is added (rather than a
discretionary bonus) based on actual performance. This fee is based on mutually agreed
criteria so that reward is based on agreed performance and delivery and has the advantage
of clarity and accountability, but may not work as well for the agency if the mark-up affects
profit adversely. It is complex and resource-heavy to manage and performance criteria are
a significant qualitative element.
Evaluation of agency performance
Monitoring and evaluation in general are a good idea. As suggested in Chapter 4 of this
book, this is a fundamental part of the marketing communications management process.
It is a different kind of evaluation that sees clients evaluating the actual performance of
their advertising agency. For example, Leggatt (2009) reports on a survey by the American
Association of National Advertisers (ANA) which suggests that ‘the majority of market-
ers regularly conduct formal agency performance evaluations’. In fact from the sample of
117 marketers, 82 per cent said they did just this as part of an emphasis on accountability.
The aim is to improve relationships rather than simply find under-performing elements
whereby the evaluation can lead to constructive dialogue and the support of collaborations
within integrated marketing communications and brand-building activities. The kinds of
criteria looked at are innovation, strategy, implementation and follow through, fiscal
stewardship and ideas.
Specialist agencies or communication companies
Direct marketing companies
Direct marketing, discussed more fully in Chapter 12 of this book, is a method of selling
products or services direct to customers rather than through an intermediary, there being
direct communication between the two parties. The original direct marketing effort may be
created in-house by the manufacturer or service provider or this organisation may become
a client of a direct marketing company. In many cases the direct marketing company may
have been subcontracted to do the work by another communications company or agency.
Direct marketing relies heavily on measurement of response rates, whether this be in a
direct mail or other direct sales method such as telemarketing, newspaper inserts or online.
Direct marketing also relies heavily on customer lists and databases. The direct marketing
company therefore has to have this kind of expertise but may also specialise, for example
on direct mail services.
Many direct marketing companies offer outsource fulfilment services, integrated digital
campaign management, database management, or some form of testing such as A/B
(a simple comparison) or multivariate (a more complex) testing. For example A/B testing
can be used very simply online by producing two versions of a web page and is therefore
a method of validating a new design over an older version. It is a form of measurement
rather than guesswork as to which design will produce the best results but regular testing
will ensure the best design is in place to optimise results. Multivariate testing in the same
05_Copley_2e_BAB1404B0062_Ch-05.indd 113 20/08/2014 4:08:25 PM
MARKETING COMMUNICATIONS MANAGEMENT 114
example would compare many more design variables of the web page. These tests can be
used in all forms of media to compare, for example, copy, images, or even the method of
delivery. The UK Direct Marketing Association (DMA, www.dma.org.uk/) and the Institute
of Direct Marketing (IDM, www.theidm.com/) are two bodies that compete for attention
in the direct marketing arena in the UK. The DMA in the UK is part of the US parent DMA
(http://thedma.org/) whereas the IDM is a UK home-grown industry body.
Sales promotion agencies
Sales promotion, discussed at length in Chapter 11 of this book, is the marketing communi-
cations element that adds value to a brand and actively promotes sales increases, product
usage or trial. There are a wide number of techniques that can be employed to achieve
these objectives, the commonest still being coupons of one sort or another. Sales promotion
agencies exist to help clients create tools that will successfully impact directly on sales with
better conversion of intent to actual purchase and higher returns. The dilemma for brand
owners when employing sales promotions is the warnings often received about brand
damage caused by the over-use of sales promotions that are perceived as short-term solu-
tions, while at the same time the results of sales promotions are much easier to quantify
than other forms of marketing communication as the results are usually much more tangi-
ble and attributable to the sales promotion variable. Sales promotions can produce quick
results, which makes these techniques attractive for short-term sales objective achieve-
ment. However, longer-term brand strategy will dictate that brand image is an important
commodity and brand damage needs to be avoided whereby too many and frequent sales
promotion offers can cheapen the brand.
The range of people involved in sales promotion agencies is not dissimilar to those in
advertising agencies. There is usually an account management function that includes,
for example, a sales promotion account executive who is involved in all of the stages
of the process but who reports to an account manager or director. A sales promotion
campaign involves devising, developing and implementing sales promotion ideas that
may be new to a particular context but not new as a sales promotion technique since,
after all, a competition is a competition and a free sample is a free sample. The account
executive classically acts as a liaison between the client and the rest of the agency
and external suppliers of goods and services. Briefing other agency staff, such as the
creative team, the production department or administrative staff, is part of this role.
The Institute of Promotional Marketers (IPM) (www.theipm.org.uk/Home.aspx),
formerly the Institute of Sales Promotion, is a key UK professional body in the sales
promotion area.
Public relations firms
Public relations (PR) as an element of marketing communications is discussed more fully
in Chapter 13 of this book where the differences between advertising and PR are explained.
These differences are reflected in the nature of the PR sector of the marketing communica-
tions industry. The overall job of PR agencies or firms is to create positive relations between
an organisation and its publics, including of course its customers where customers are
considered to be a key public.
Typical jobs in PR firms include working on media, community and employee relations,
and special events, or helping a charity client with fundraising activities. The PR execu-
tive will act on behalf of a client and gather facts and figures and other relevant data that
will help track public concerns and relevant trends in the client’s sphere of operations and
relevant publics. The work involves creating PR events to gain awareness or achieve other
05_Copley_2e_BAB1404B0062_Ch-05.indd 114 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 115
client goals by the employment of tools such as press releases or press receptions. The PR
account executive needs skills such as imagination, communication and writing and must
be able to have the confidence to deal not only with clients, the media and journalists
but also other staff including the account manager or director. A degree of diplomacy is
required but so also are organising, planning and managing skills. Many people who start
or work in PR firms do so after experience in journalism. The professional body in the UK
for PR is the Chartered Institute of Public Relations (CIPR, www.cipr.co.uk/), formerly the
Institute of Public Relations.
Digital/interactive agencies
The trend towards interactivity, enabled not least through digital technology develop-
ments, is said to enhance the ability of companies to get brands closer to customers. Digital
experiences help to build online audiences and communities and often it is design that is
at the heart of the online experience. Online promotional materials include tools such as
brochures and display materials. These days in the wired yet wireless 24/7/365 world, a
client’s website as well as other interactive services such as mobile applications, e-mail or
search engine marketing often drive e-commerce because of the ability to target digital
audiences. Many agencies claim to offer website designs that are search engine friendly.
They do so because search engine marketing is such an important part of marketing for
many organisations. Many digital agencies offer a full service across marketing commu-
nications functions. For example PR involves blogs and social networks that cannot be
ignored. The rationale is that it is better to be involved than to ignore what is going on with
social media and online in forums so that activities include proactive brand monitoring
and listening to what customers are talking about.
Digital media planning and buying is often offered by digital agencies. Clearly the days
of a limited, simple choice of television and radio stations that could be put together with
outdoor or press are over. There are many variations of online display, pay per click (PPC)
advertising words such as Google AdWords, pay-per-post blogs, iAds from Apple, and
many other online forms of conventional marketing communications elements such as
product placement or sponsorship. The kinds of jobs to be found in digital agencies are
similar and often the same as traditional advertising agencies and in practice an agency
may deal with both traditional and digital work. For example in the digital agency or that
part of an agency that deals with digital work, an account director will need experience
of leading, managing and of integrated marketing communications thinking across tra-
ditional and digital communications. This role requires account handling experience and
the ability to have strong relationships with clients. An example of more specific digital
roles is that of the digital designer of rich media advertising solutions for clients. This
could involve a range of digital advertising from banners to mobile advertisements using
desktop, mobile phones or tablets, and requiring experience of, for example, Flash design.
If this role is senior in nature then the usual qualities of leadership and maturity would
also be required. Other specialist digital roles are in the areas of, for example, search engine
optimisation (SEO), mobile advertising or social media.
In-house communications function
The main motivations of cost and control drive some organisations to set up an in-house
communications function. The scale, however, is an important consideration and the differ-
ence between having a communications or advertising manager or even a department rather
than an independent entity within the organisation. One organisation that has achieved this
latter position is Benetton with its in-house Fabrica agency (see the Snapshot immediately
05_Copley_2e_BAB1404B0062_Ch-05.indd 115 20/08/2014 4:08:25 PM
MARKETING COMMUNICATIONS MANAGEMENT 116
below). This is not to say that everything will be done in-house but certainly control and
co-ordination will, though with liaison and effective communication critical to success.
Outsourcing of services generally is not an uncommon occurrence so it should come as no sur-
prise that this would happen with an in-house communications function. As discussed ear-
lier in this chapter, the marketing communications industry has changed radically, especially
since the development of digital communications. Media specialists in particular are sought
after by companies who are happy to outsource media and to an extent creative services.
The control advantage of an in-house function is created from a number of sources, for
example the greater stability of personnel that comes from continuity in staff, time controls,
knowledge of products/services and markets or better access to top management and
decision makers. It may also help with consistency of brand image, especially internation-
ally where the number of partnerships with outside bodies is reduced. On the down side
of having an in-house facility are issues such as internal conflict, the danger of an inward-
looking focus, or less access to creative talent than on the open market where a fresh set of
ideas may lie. A key issue is a lack of objectivity, with the in-house facility being perhaps
too familiar or too close to the company’s offerings. There is also the issue of the skilled
specialists who may be required, but these can be bought and used in conjunction with in-
house and there is greater flexibility when there is an ability to hire and fire if not satisfied.
The Snapshot below discusses fashion brand Benetton’s ‘unhate’ campaign that was
created by its in-house agency Fabrica, and the fast-rising Amsterdam and Los Angeles-
based agency 72andSunny, with a theme of peace and tolerance that has ignited the ‘cul-
tural conversation’ for Benetton yet again.
Snapshot In-house and the external
agency – Benetton’s ‘unhate’
campaign by in-house agency Fabrica
and external agency 72andSunny
In 2011 Benetton’s ‘unhate’ campaign saw the withdrawal of an advertisement
that showed a fake picture of Pope Benedict XVI kissing Muslim Grand Sheik and
Egyptian Imam Mohammad Ahmed el-Tayeb. The Vatican called the touched-up
Photoshop image unacceptable. It was part of a global campaign that used similarly
faked images of world leaders in a similar embrace. So presidents Barack Obama of
the USA and Hugo Chavez of Venezuela, Mahmoud Abbas of Palestine and Benjamin
Netanyahu of Israel, Angela Merkel of Germany and Nicolas Sarkozy of France, were
all portrayed in similar fake poses. The advertising according to United Colors of
Benetton Executive Deputy Chairman Alessandro Benetton was created to promote
the concept of ‘unhate’. The ‘unhate’ campaign could be construed as a ‘peace and
love one world harmony’ campaign, making it not so much a new concept but a con-
tinuation of Benetton’s long-running creative concept. Benetton was reported in the
press as saying that these are very strong images in order to send a strong message,
without being disrespectful of the various world leaders. It would seem the images
are seen by Benetton as ‘conception figures’ that represent ‘brotherhood’ sealed with
a kiss. According to The Huffington Post (2011) reactions to the images were fierce with,
for example, Whitehouse spokesman Eric Schultz telling The Huffington Post that ‘The
White House has a longstanding policy disapproving of the use of the president’s
name and likeness for commercial purposes.’
05_Copley_2e_BAB1404B0062_Ch-05.indd 116 20/08/2014 4:08:25 PM
THE MARKETING COMMUNICATIONS INDUSTRY 117
However, according to Cassidy (2012), while UK agencies ‘put in a stronger show-
ing in the Press category this year … the Grand Prix went to a controversial Benetton
ad from Italy featuring world leaders kissing’. The Benetton campaign was created
by in-house agency Fabrica and it was ‘roundly praised by the jury for prompting
a global debate as well as instigating a comeback for Benetton, which has a history
of controversial advertising’. Cassidy quotes, according to Tham Khai Meng, Ogilvy
& Mather Worldwide chief creative officer and president of the Press jury, that the
advertising campaign was ‘above the others by a million miles’. However, Fabrica
was aided and abetted by 72andSunny, which describes itself as a modern full-service
design and advertising company with offices in Los Angeles and Amsterdam. This
agency was founded in 2004, born out of ‘Frustration that our industry was slow to
adapt to the changing technology landscape and excitement for all the new ways we
can connect with people and a desire to explore that power”’(72andSunny, 2013). The
agency’s clients have included Samsung and Nike.
It was the Amsterdam arm of 72andSunny that worked on the Grand Prix win-
ning campaign. However, the credit for the top prize went to Fabrica at the client’s
request. The Press Lions competition honoured three executions in particular –
US president Barack Obama and Venezuelan president Hugo Chavez, Palestinian
president Mahmoud Abbas and Israeli prime minister Benjamin Netanyahu, and
German chancellor Angela Merkel and former French president Nicolas Sarkozy:
‘Notably absent was the campaign’s most incendiary image – a photo of Pope
Benedict XVI kissing a senior Egyptian imam. Benetton pulled that particular ad
almost immediately after the campaign broke last November’ (Nudd, 2012). It
is argued by Parekh (2012) that 72andSunny, as intended for the client, sparked
debate, and even outrage, among world leaders in Washington and Rome and
beyond. More importantly they ‘also reversed a trend of dwindling relevance for
Benetton, which has built its brand on espousing ideals like peace and tolerance,
and got people talking about the Italian retailer again’. Quoting Matt Jarvis, part-
ner and chief strategy officer at Los Angeles-based 72andSunny, Parekh highlights
that ‘The most valuable thing you can do in marketing is get your clients and
brands into a cultural conversation’ and ‘We’re not the only people doing it, but
I think we’re particularly good at it.’ Other clients, according to Parekh, agree.
For example the work they do is ‘unignorable’ (Eric Hirshberg, CEO of
video-game giant Activision) and ‘The guiding principles for the brand they devel-
oped years ago are so relevant, and we still use them … They really built our global
brand with us’ (Madeleen Klaasen, chief marketing officer at Bugaboo, the Dutch
mobility company).
Stop Point
Benetton has a long history of controversy in its advertising. The 2011 ‘unhate’ cam-
paign is clearly in that same vein. The role of an outside company like 72andSunny is
an interesting move on Benetton’s part. Undertake the following: 1. Discuss the rea-
sons why Benetton would wish to buy-in the help of 72andSunny when they already
have Fabrica; 2. Consider and explain what Benetton might look out for in terms of
Fabrica personnel’s morale.
05_Copley_2e_BAB1404B0062_Ch-05.indd 117 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 118
ROLES AND STRUCTURES IN CLIENT ORGANISATIONS
Structures
A client can have a centralised or decentralised structure. A centralised structure is
one that offers greater authority on making decisions and there is consequently less
internal conflict. Within marketing communications, the functional activities such as
budgeting, creation and production of promotional materials, media planning and
scheduling or marketing research, might all be controlled by one function (and even
one person) that coordinates all such activities, including liaison with outside agen-
cies and services.
Generally speaking, as an organisation grows larger it becomes more difficult to
maintain a centralised structure, mainly because decision making becomes difficult.
A decentralised structure offers the advantages of flexibility and faster problem solving
where attention can be focused on matters at hand. The ‘brand man’ that became the
brand manager position came from such growth in Procter and Gamble (P&G) in the
early 1930s and heralded a decentralised structure for corporations such as P&G and
Unilever. Brand (or product) mangers became responsible for all aspects of the brand
or product range in their charge.
Brand manager
Brand management, which began in the 1930s (with Proctor and Gamble, P&G), per-
sists today, with the role involving the usual elements of a planning and managing
system as discussed in Chapter 4 of this book, such as dealing with targets or budget-
ing. The brand manager has to work closely with whoever is dealing with marketing
communications whether internal or external. The brand manager role, however, has
had to evolve to survive, principally because of the shift towards the more interactive
consumer as digital platforms were developed in the wake of media fragmentation.
A common argument is that brand managers may spend too much time on internally
focused skill sets such as setting and revising budgets and are too focused on short-
term planning and administrative tasks, which results in their neglecting the develop-
ment of long-term plans, often because they must compete for the attention of senior
management in order to access resources, but also for career development, perhaps
reflecting a lack of authority over brand development. These were the kinds of reason
why P&G decided to abandon brand management for category management in the
1980s and then adopt a cohort strategy in 2000.
Category manager
Category management is an additional layer of management above that of the brand
manager that enables the coordination of brand manager efforts so that brand and other
managers, such as advertising managers, come under a category manager for a whole
product category. It is a strategic role devised to help build brands and profit and market
share. During the initial years of the new millennium, P&G introduced its new brand
management strategy that grouped brands together to appeal to consumers with similar
attitudes and needs. This was labelled cohort management but it is in effect a system of
bundling brands together that are aimed at similar consumer groups. This was contrary
to P&G’s previous practice of category management, which is the grouping of brands
according to similar product categories.
05_Copley_2e_BAB1404B0062_Ch-05.indd 118 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 119
Snapshot Rethinking the client–agency
relationship – differing perspectives
from either side
Liu (2013) comments from client advertising experience that whether it is ‘brief-
ing the agency, running a pitch process, or managing a creative project, client-side
marketers all have their own styles when it comes to managing the client/agency
relationship’. As Liu suggests and has been common knowledge for some time,
Marketing services manager
Some organisations group marketing services together under a marketing services
manager who oversees all aspects of marketing communications management, but also
marketing research and any other marketing activity that does not fall into these two
broad functions. In this way the former’s support services would include PR, sales
promotions, packaging design, merchandising or sponsorship, and with the latter all
aspects of secondary and primary marketing research, including a marketing informa-
tion system, would come under the marketing services manager’s remit.
Advertising, promotions or marketing communications manager
Many organisations have a management function where the advertising, promotions or mar-
keting communications manager would liaise with brand managers. These managers would
most likely operate under the overall leadership of a marketing director. The duties of these
managers will depend upon the size of the organisation but usually a marketing commu-
nications manager is responsible for all communications activities except sales, which may
operate separately under a sales director. The advertising, promotions or marketing commu-
nications manager would therefore coordinate the work of the various agencies employed.
Public relations officer or manager
The PR professional working for an organisation that is not-for-profit usually has the title
PRO (public relations officer) but in other organisations may have the title PR manager. The
job entails managing the organisation’s image and reputation. The PRO or manager needs to
have excellent communication skills. Good time management is essential as is the desire and
ability to work with lots of different kinds of people. The job might be in-house within a PR
department or stand-alone but with agency connections. It involves planning and managing
PR campaigns and therefore building strategies, monitoring public and media opinion and,
depending upon the size of the organisation, writing and editing brochures, press releases,
newsletters, websites or social media activities. It might also involve arranging press recep-
tions or conferences, organising exhibitions or open days, and being involved with sponsored
events. Other stakeholders might involve professionals at conferences, charities or commu-
nity leaders. The job title might be communications, media relations or press officer.
The Snapshot below discusses the client–agency relationship and some of the differing
perspectives from both sides of this particular coin.
(Continued)
05_Copley_2e_BAB1404B0062_Ch-05.indd 119 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 120
the client–agency relationship is central to what marketers do. This relationship is
critical to the success of marketing communication campaigns. As Liu says, such
a partnership needs ‘thoughtful management, transparency, and effective ways of
working that all parties respect’. The corollary to this is that there are ways of work-
ing that are not effective and these, of course, have to be avoided otherwise damage
to this critical relationship will ensue. This, for Liu, would affect creative output
since there is a need for innovative solutions to creative challenges. Liu admits that
as a client he is ‘sometimes guilty of thinking quite linearly’, the danger being a
presumption of having the answers. The advice is not to ‘draw a solid line between
the client team and the agency team’ but rather, as a client/agency team, the work
should be jointly owned, presented and the accountability for outcomes jointly
held. Liu reckons that it is sheer folly for the client to try to ‘squeeze as much work
as you can out of them, to dictate exactly what you want’, but rather that the view
should be that ‘you can disagree without being disagreeable’ and that ‘you can be
clear about your expectations while also being collaborative’ with ‘100 per cent can-
dour in both directions’.
Benady (2013), recognising the subjective nature of the client–agency issue within
a PR context, asked senior agency and client-side people for views on agency–cli-
ent relationships because agencies ‘fret constantly about the quality of their asso-
ciation. They pick it over and seem to want to talk about it all the time. Like an
insecure lover, they live in constant fear of being dumped.’ Benady suggests that
there is a ‘serious gulf between agencies and clients in what they feel matters most
in their relationships’, and reports that as part of its 2013 In-House Benchmarking
report, the PRCA (Public Relations Consultants Association) asked both agencies
and clients to list ingredients for a successful relationship. The response included:
Personal chemistry – only half of the agency respondents held this to be a key ingre-
dient and only about one fifth of client respondents thought this.
Regularity of communication – less than a fifth of agency respondents thought this
mattered and only 6 per cent of client respondents did. Apparently there is a fun-
damental difference in that ‘agencies think they are having a relationship, while
clients think they are having a transaction’.
Effectiveness – almost half of those from agencies believed that demonstrating ROI
was key but in contrast only about one third of clients thought this.
Value for money – less than one third of agencies thought value for money was key
while more than one third of clients thought this.
Overall, Benady says that the report suggests that ‘there was surprisingly little con-
sensus on the issues that really matter in client–agency relationships’.
(Continued)
Stop Point
The client–agency relationship has been talked about for decades and yet there still
appear to be some differences between the perspectives of clients and agencies.
05_Copley_2e_BAB1404B0062_Ch-05.indd 120 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 121
Summary of Key Points
The nature and workings of the marketing communications industry involve what
clients want and client-driven change.
Marketing communications professionals know they need to continually evolve
to stay relevant.
Marketing communications professionals need to rethink ideas and reimagine strate-
gies in the knowledge that clients will pay for things they cannot do as well themselves.
Management of an organisation’s marketing communications programmes nor-
mally requires the efforts and inputs of a number of individuals both internally and
externally. There are, therefore, players in agencies or marketing communications
companies as well as client organisations.
Agencies now need, more than ever before, effectiveness credentials.
The nature of such players and type of system, whether decentralised or central-
ised, involves the agencies in an organisation’s strategy with varying degrees of
responsibility when developing an integrated campaign.
The adoption of an in-house function is a consideration in relation to the advan-
tages of cost savings and control against the potential lack of experience and loss
of objectivity.
Agencies are structured in varying ways including full service (one-stop shop),
creative boutique, media specialist or ‘à la carte’.
Agency selection issues, agency operational relationships and remuneration and
evaluation of performance are important issues that need to be considered.
There is a need to rethink the notion of communications doing things to consumers
and to think about what consumers do in terms of interactivity.
Specialised agencies and marketing communications companies exist to service
client need, such as direct marketing, sales promotion, public relations and
interactive communications firms as well as those specialising in elements such
as sponsorship or product placement.
Undertake the following: 1. Compare and contrast the views of Liu and Benady as
expressed above; 2. Discuss the similarities and differences that might be found in the
client–agency relationship in advertising agencies and PR consultancies.
Assignment
Write a 2,000-word report that illustrates how management might bene?t from the installa-
tion of an in-house communication function for both internal and external communication
purposes. Take into consideration the fact that such a function does not preclude the use of
external agencies, experts and specialists.
05_Copley_2e_BAB1404B0062_Ch-05.indd 121 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 122
Discussion Questions
1. Players in the marketing communications industry’s agencies and firms need to address
what clients want and client-driven change. Discuss this notion using examples to
illustrate.
2. Marketing communications professionals know they need to continually evolve to stay
relevant. They also need to rethink ideas and reimagine strategies in the knowledge
that clients will pay for things they cannot do as well themselves. Discuss the challenges
agencies face in negotiating compensation.
3. The management of an organisation’s marketing communications programmes nor-
mally requires the efforts and inputs of a number of individuals both internally and
externally. Discuss the changing role of the account executive in advertising or other
agencies. Include in your discussion a reference to the idea that this role might become
obsolete.
4. Explain why agencies now need, more than ever before, effectiveness credentials.
Include in your discussion examples where agencies have lost accounts and the reasons
why.
5. Discuss the brand management and its relationship with marketing communication
campaigns using examples to illustrate.
6. Discuss why the adoption of an in-house function is a consideration in choosing and
using communications agencies or companies.
7. Explain the role of the media specialist company and suggest reasons why a client
might choose such a company to handle media buying and planning.
8. Agency selection issues include relationships, remuneration and the evaluation of
performance. Discuss agency selection criteria in the context of an industry or sector
of your choice using examples to illustrate.
9. Explain why there is a need to rethink the notion of communications doing things to
consumers and to think about what consumers do in terms of interactivity.
10. Specialised agencies and marketing communications companies exist to service client
need yet there is a desire to have a campaign that is fully integrated. Discuss the use of
specialists in the marketing communications industry in the light of integrated marketing
communication.
Further Reading
Chalaby, J.K. (2008) ‘Advertising in the Golden Age: transnational campaigns and
pan-European television channels’, Global Media and Communication, 4 (2): 139–56.http://gmc.sagepub.com/content/4/2/139
The change that has taken place with regard to pan-regional advertising campaigns by
companies operating in Europe is discussed in the article, which suggests that there
? …
05_Copley_2e_BAB1404B0062_Ch-05.indd 122 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 123
were too few companies wanting to go pan-European leading the stations concerned
into financial difficulties. As the number of companies with an interest in meeting the
globalisation challenge grew, the advertising industry was restructured. The article dis-
cusses the role of media buying agencies with the knowledge to facilitate such cam-
paigns, essentially ‘glocal’, i.e. as the authors put it, a mix of local and global objectives
met by ‘flexible local advertising’ and ‘integrated communication solutions involving
cross-format and cross-platform opportunities’.
Deuze, M. (2007) ‘Converging Culture in the Creative Industries’, International Journal
of Cultural Studies, 10 (2): 243–63.http://ics.sagepub.com/content/10/2/243.full.
pdf+html
This article looks at emerging practices in the media professions, including advertising
and public relations as part of marketing communications, in response to the changing
global environment that is now technology-led where interactivity is at the centre. The
article looks at the key trends such as upstream marketing and citizen journalism that
are part of culture convergence and media production and consumption. Deuze looks
through a lens of a combination of individual creativity and mass production, known as
‘creative industries’.
Johnson, M. and Tennens, M. (2005) ‘The Challenges of Implementing a Marketing
Strategy: a practitioner’s view’, Journal of Medical Marketing, 5 (1): 44–56.http://mmj.
sagepub.com/content/5/1/44.full.pdf+html
This article is concerned with marketing campaigns that are linked to bottom line results
and driven by strategic objectives, and as such is a case study of a pharmacy business
that for many years did not consciously use marketing tools and techniques. Written by
the Chief Operating Officer of the business and the MD of the marketing agency special-
ising in the design and implementation of marketing communications programmes, the
article discusses the implementation of a programme that includes research, telemar-
keting, brand image, collateral development, public relations and customer relations
management. The resultant marketing strategy, integrated with sales strategy and the
development of the people in the business, is explained.
Miller, R. (2002) ‘A Prototype Audit for Marketing Communications Professionals’,
Marketing Theory, 2 (4): 41928.http://mtq.sagepub.com/content/2/4/419.full.
pdf+html
Identifying and measuring the functional marketing skills organisations need in the
marketing communications area is advocated in this article, which is concerned with
job design, recruitment, training and outsourcing. The author provides a framework for
skills definition and measurement in planning their careers in the knowledge that a better
understanding of the marketing communications expertise required enables educators to
offer courses in relevant applied marketing communications.
Sinclair, J. (2009) ‘The Advertising Industry in Latin America: a comparative study’,
The International Communication Gazette, 71 (8): 713–33.http://gaz.sagepub.com/
content/71/8/713
The author collaborates with several others from four Latin American locations
(Brazil, Mexico, Argentina and Chile) and discusses economic and cultural globalisa-
tion. Beginning with the great debate about the cultural imperialism of earlier dec-
ades whereby the rich countries of North America and Europe tended to dominate
‘third world’ countries and moving on to the neglected area of the advertising indus-
try, Sinclair suggests that the article presents a ‘detailed empirical account’ of the
modes in which the advertising industry now binds the four countries of the study
economically and culturally.
05_Copley_2e_BAB1404B0062_Ch-05.indd 123 20/08/2014 4:08:26 PM
MARKETING COMMUNICATIONS MANAGEMENT 124
REFERENCES
72andsunny (2013) 72andSunny website, available at: www.72andsunny.com/
Andjelic, A. (2010) ‘Do we need a new definition of creativity? In today’s digital world,
the answer is yes’, AdAge Digital, 20 August, available at:http://adage.com/article/
digitalnext/a-definition-creativity/145448/
Baker, C. and Handyside, M. (2010) ‘The agency model is broken – but you can fix it’, Market
Leader, Quarter 1, available at: www.warc.com
Baskin, M. (2010) ‘Briefing your agency’, Warc Best Practice, February, available at: www.warc.
com
Benady, A. (2013) ‘What makes a successful client-agency relationship?’, PR Week, 22 August,
available at: www.prweek.com/article/1208278/makes-successful-client-agency-relationship
Binet, L. (2005) ‘Evaluating marketing communications: a guide to best practice’, Market Leader,
Issue 29, Summer, available at: www.warc.com
Cassidy, A. (2012) ‘Cannes 2012: Italy’s controversial Benetton ad takes Grand Prix for press’, 20
June, available at: www.campaignlive.co.uk/news/1137354/
Chadwick, S. (2006) ‘Client-driven change – the impact of change in client needs on the research
industry’, International Journal of Marketing Research, 48 (4): 391–414.
Chalaby, J.K. (2008) ‘Advertising in the global age’, Global Media and Communication, 4 (2): 139–56.
Deuze, M. (2007) ‘Converging culture in the creative industries’, International Journal of Cultural
Studies, 10 (2): 243–63.
Drobis, D. R. (1997) ‘Integrated marketing communications redefined’, Journal of Integrated Com-
munications, 8: 6–10.
Duncan, T.R. and Everett, S.E. (1993) ‘Client perceptions of integrated marketing communica-
tions’, Journal of Advertising Research, 33 (3): 30–9.
Farnworth, S. (2010) ‘To stay relevant how do communications professionals need to evolve?’,
Jolt Social Media, available at:http://stevefarnsworth.wordpress.com/2010/09/15/to-stay-
relevant-how-do-communications-professionals-need-to-evolve/
Fletcher, J. (2003) ‘A data factory in the middle of storyville? Preparing the market research
industry for the dream economy’, the Market Research Society Annual Conference, MRS on
WARC.com, available at www.warc.com
Freeland, C. (2010) ‘Why clients need a full-service agency’, Marketing Week, 12 July, available at:
www.marketingweek.co.uk/why-clients-need-a-full-service-agency/3015695.article
The Huffington Post (2011) ‘Benetton “unhate” campaign shows world leaders kissing’, 17 November,
available at: www.huffingtonpost.com/2011/11/16/benetton-unhate-campaign-world-leaders-
kissing_n_1097333.html
IPA (2012) ‘Agency Remuneration: A best practice guide on how to pay agencies’, Joint industry
guidelines for marketing professionals in working effectively with agencies, 2nd edition, London:
IPA. Available at: www.ipa.co.uk/document/agency-remuneration-best-practice-guide
Jeans, R. (1998) ‘Integrating marketing communications’, Admap, December. Available at: www.
warc.com/Content/ContentViewer.aspx?ID=7d532321-177b-4739-9134-ded1cf4d9648&q=i
ntegrated+marketing+communications&CID=A7299&PUB=ADMAP&MasterContentRef=
7d532321-177b-4739-9134-ded1cf4d9648
Jensen, M.B. (2007) ‘Online marketing communication potential – priorities in Danish firms and
advertising agencies’, European Journal of Marketing, 42 (3/4): 502–25.
Johnson, M. and Tennens, M. (2005) ‘The challenges of implementing a marketing strategy: a
practitioner’s view’, Journal of Medical Marketing, 5 (1): 44–56.
Leggatt, H. (2009) ‘Are you evaluating your agency’s performance?’, BizReport Research, 16
September, available at: www.bizreport.com/2009/09/are_you_evaluating_your_agencys_
performance.html
Liu, J. (2013) ‘Rethinking the client-agency relationship’, The Drum, 17 July, available at: www.
thedrum.com/opinion/2013/07/17/rethinking-client-agency-relationship
Miller, R. (2002) ‘A prototype audit for marketing communications professionals’, Marketing
Theory, 2 (4): 419–28.
05_Copley_2e_BAB1404B0062_Ch-05.indd 124 20/08/2014 4:08:26 PM
THE MARKETING COMMUNICATIONS INDUSTRY 125
Nudd, T. (2012) ‘Press grand prix goes to Benetton’s kissing ads from Fabrica, 72andSunny’, Adweek,
available at: www.adweek.com/news/advertising-branding/press-grand-prix-goes-benettons-
kissing-ads-fabrica-72andsunny-141244
Padsetti, M., Fourie, W., Hyde, K., Kitchen, P. And Eagle, L. (1999) ‘Perceptions of integrated
marketing communications among marketers and advertising agency executives in New
Zealand’, International Journal of Advertising, 18 (1): 89–119.
Parekh, R. (2012) ‘72andSunny is no. 5 on the Ad Age Agency A-list’, AdAge, available at:http://adage.com/article/special-report-agency-alist/72andsunny-5-ad-age-agency-a-
list/232187/
PRWeb (2013) ‘Advertising agencies in Australia industry market research report now up-
dated by IBISWorld’, PRWeb, 31 August, available at: www.prweb.com/releases/2013/8/
prweb11060136.htm
Roosebooom, M. (2010) ‘PR, communication, and marketing trends 2011 parts 1 & 2’, available
at: www.mynewsdesk.com/uk/mynewsdesk/blog_posts
Saunders, J. (2006) ‘Growing up digitally: change drivers in marketing’, Market Leader, 33, pp.
31–9, Summer.
Sinclair, J. (2009) ‘The advertising industry in Latin America: a comparative study’, The Interna-
tional Communication Gazette, 71 (8): 713–33.
Sommers, M. (1990) ‘Agencies: what changes are clients looking for?’, Admap, July, available at
www.warc.com
Swain, W.N. (2005) ‘Perceptions of interactivity and consumer control in marketing communi-
cations: an exploratory survey of marketing communications professionals’, Journal of Interac-
tive Advertising, 6 (1): 109–24, Fall.
Thompson, S. (2008) ‘The importance of an agency effectiveness culture to clients’, The Institute
of Practitioners in Advertising, available at: www.warc.com
WordPress.com (2012) ‘United Colors of Benetton – unemployee of the year’, WordPress.com,
18 September, available at:http://thisisnotadvertising.wordpress.com/tag/72andsunny/
05_Copley_2e_BAB1404B0062_Ch-05.indd 125 20/08/2014 4:08:26 PM
doc_279737648.pdf