0

3
Organizing for Advertising and
Promotion: The Role of Ad Agencies
and Other Marketing
Communication Organizations
Copyright 2012 McGraw-Hill Companies, Inc., All right reversed

Participants in the IMC Process

3-2

Advertising Dept. Under a Centralized System

President
President

Production
Production

Finance
Finance

Marketing
Marketing
research
research

Marketing
Marketing

Advertising
Advertising

Research
Research
and
and
developdevelopment
ment

Sales
Sales

Human
Human
resources
resources

Product
Product
planning
planning

3-3

Decentralized Advertising System

Corporate
Production

Finance

Sales

Marketing

Product
Management
Brand
Manager
Ad agency
Brand
Manager
Ad agency

Human
Resources

R&D

Marketing
services
Advertising
Dept

Marketing
Research

Sales promotion
Package design
Merchandising
3-4

Full-Service Agencies
Full
Full range
range of
of
marketing
marketing
communication
communication
and
and promotion
promotion
services
services

Nonadvertising
Nonadvertising
services
services

Planning
Planning
advertising
advertising

Performing
Performing
research
research

Creating
Creating
advertising
advertising

Selecting
Selecting media
media

Producing
Producing
advertising
advertising
Strategic
Strategic market
market
planning
planning

Interactive
Interactive
capabilities
capabilities

Sales
Sales
promotions
promotions

Package
Package design
design

Direct
Direct
marketing
marketing

Public
Public relations
relations
and
and publicity
publicity
3-5

Agency Services

Account
Account
Services
Services

Marketing
Marketing
Services
Services

Creative
Creative
Services
Services

Mgmt
Mgmt &&
Finance
Finance

The
The link
link
between
between
agency
agency and
and
client
client
Managed
Managed
by
by the
the
account
account
executive
executive

Research
Research
department
department
May
May include
include
account
account
planners
planners
Media
Media dept.
dept.
obtains
obtains
media
media
space,
space, time
time

Creation,
Creation,
execution
execution
of
of ads
ads
Copywriter
Copywriter
artists,
artists,
other
other
specialists
specialists

Accounting
Accounting
Finance
Finance
Human
Human
resources
resources
New
New
business
business
generation
generation

3-6

Creative Boutiques

Creative
Creative
Boutiques
Boutiques

Provide
Provide only
only
creative
creative services
services

May
May subcontract
subcontract from
from
ffull-service
ull-service agencies
agencies

Strength
Strength is
is turning
turning out
out
creative
creative work
work quickly
quickly

3-7

Media Buying

Media
Media
Specialist
Specialist
Companies
Companies

Specialize
Specialize in
in buying
buying media,
media,
especially
especially broadcast
broadcast time
time

Agencies
Agencies and
and clients
clients develop
develop
media
media strategy
strategy
Media
Media buying
buying organizations
organizations
implement
implement strategies,
strategies, and
and
buy
buy time
time and
and space
space
3-8

Agency Compensation Methods

Commissions from media

Fee, cost, and incentive-based systems
Percentage charges

3-9

Evaluating Agencies

Financial Audit

Qualitative Audit

Verify costs, expenses

Planning

Personnel hours billed

Program development

Payments to media

Implementation

Payments to suppliers

Results achieved

3-10

Direct Marketing Agency Activities

Direct-Marketing
Direct-Marketing Agency
Agency Services
Services
Database
management

Media services

Direct mail

Creative capabilities

Research

Production

3-11

Sales Promotion Agencies

Promotional planning
Creative research
Tie-in coordination
Fulfillment
Premium design and
manufacturing
Catalog production
Contest/sweepstakes
management
3-12

Functions Performed by Public Relations Firms

Strategy
development

Public
affairs

Special
events

Generating
publicity

News releases,
communication

Managing
crisis

Research

Coordination
w/promotional
areas

Lobbying

3-13

Functions Performed by Interactive Agencies

Interactive Media Creation

Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media

3-14

Collateral Services
Typical collateral services
Marketing research
Package design
Consultants
Photographers
Printers
Video production
Event marketing

3-15