Chapter 3

Organizing for Advertising and

Promotion: The Role of Ad
Agencies and Other Marketing
Communication Organizations

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 Participants in the IMC Process

Marketing
Advertiser Advertising Media Collateral
Communications
(client) Agency Organizations services
Specialists

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Slide 3-1
Figure 3-1
 The Advertising Department
Under a Centralized System
President

Human
Production Finance Marketing R&D
Resources

Marketing Advertising Product

Sales
Research Planning

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Slide 3-2
Figure 3-2
 Departments within a
Full-Service Agency
• Account Services
• Marketing Services
• Creative Services
• Management and Finance

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998

Slide 3-3
 Why Agencies Lose Clients

• Poor performance or service

• Poor communication
• Unrealistic demands by client
• Personality conflicts
• Personnel changes
• Changes in size of client or agency
• Conflicts of interest
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998
Slide 3-4
 How Agencies Gain Clients

• Referrals
• Solicitations
• Presentations

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Slide 3-5
 Perceptions of Involvement: Who
Set Strategy?
Marketer Agency

17%
6% 10%

15%

Marketer
Marketer
Agency
84% Agency 67%
Both Both

Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998

Slide 3-6
 Perceptions: What Is the
Agency’s Role?
Agency
Marketer Partner Partner

23% Creative Creative

Leader 11% 4% Leader
Architect 9% Architect
29% 5%
Specialist Specialist

Integrator Integrator

25%
24% 30%
3%
15%
22%
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 Slide 3-7