imc process

8/12/2019 IMC Process

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Participants in the IMC Process

Marketingcommunicationsspecialist

organizations

Media organizations

Advertiser (Client)

Advertising agency

Collateral services

Direct-

response

agencies

Sales

promotion

agencies

Interactive

agencies

Publicrelations

firms


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Organizing for Advertising and Promotion

The way a company (the client)organizes depends on

Its size

The number of products it marketsThe role of advertising and promotion in

the marketing mix

The budget

Its marketing organization structure


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Advertising Dept. Under Centralized System

President

Production Finance Marketing

Researchand

develop-ment

Humanresources

Marketingresearch

Advertising SalesProductplanning


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Pros & Cons of a Centralized System

Fewerpersonnel

Bettercommunications

Continuity

Longerresponse time

Less goalinvolvement

TheCentralizedSystem

+ Positive - Negative

Impractical formultiple brands,products,divisions

More topmanagementinvolvement


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Decentralized Advertising System

Production Finance

Sales

Brand

Manager

Ad agency

Product

Management

Sales promotion

Package design

Marketing

services

Marketing R & D Human

Resources

Corporate

Brand

Manager

Ad agency

Advertising

Dept

Marketing

Research

Merchandising


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Pros & Cons of Decentralization

Internal conflicts

Ineffectivedecision making

Rapid problemresponse

Concentratedattention

Increasedflexibility

TheDecentralized

System


Unequaldistribution

of funds

Lack of

Authority


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In-House Agencies

Benettons in-house agency works withoutside agencies to develop ads


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Pros & Cons of In-House Agencies

Morecontrol

Costsavings

Bettercoordination

Lessobjectivity

Lessexperience

TheIn-houseAgency


Lessflexibility


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The Ad Agencys Role

Reasons for using an ad agencyHighly skilled specialists

Specialization in a particular industry

Objective viewpoint of the marketBroad range of experience


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Ad AgenciesHave Skilled Specialists

Artists Writers Researchers

Photographers Media Analysts Other Skills
http://www.jwt.com/http://www.ffk-wilkinson.com/intl/http://www.ffk-wilkinson.com/intl/http://www.jwt.com/http://www.sandacom.com/index.html


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http://www.edgedesign.us/http://www.fusionmd.com/http://www.sandacom.com/index.html


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Typical Full-Service Agency Organization

WritersArt directors

TV

production

Traffic

Printproduction

Account

Executive

Account

supervision

VP accountservices

Media

Research

Sales

Promotion

VP marketingservices

Personnel

Accounting

FinanceOffice

management

VP management

and finance

President

Board ofdirectors

VP creative

services


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Services Provided by Agencies

Agency Services

Researchdepartment

May includeaccount

planners

Media dept.obtainsmediaspace, time

MarketingServices

The linkbetweenagency andclient

Managedby theaccountexecutive

AccountServices

Creation,execution ofads

Copywriter

artists,otherspecialists

CreativeServices

Accounting

Finance

Human

resourcesNewbusinessgeneration

Mgmt &Finance


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The Role of Creative Boutiques

CreativeBoutiques

Provide only creative services

Full-service agencies maysubcontract with creative

boutiques

Ability to turn out inventivecreative work quickly


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Media Buying Can be Specialized

Specialize in buying media,especially broadcast time

Agencies and clients developmedia strategy

MediaSpecialist

Companies

Media buying organizationsimplement the strategy and

buy time and space
http://www.smvgroup.com/http://www.initiative.com/english/homepage.htmlhttp://www.initiative.com/english/homepage.htmlhttp://www.smvgroup.com/


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Test Your Knowledge

Which of the following statements about changes in the way

advertising agencies are being compensated is true?A) Most clients do not pay full commissions to

their agencies because they prefer fee- orincentive-based systems.

B) From the viewpoints of both the client and the agency,

the traditional commission system is superior tonegotiated commissions.

C) Most clients want their agencies to be in total chargeof the integrated marketing communications process,so they prefer to compensate them based on mediacommissions.

D) Statements A, B, and C are all true.


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Methods of Agency Compensation

Commissionsfrom media

Fee, cost, andincentive-based

systems

Percentagecharges

CompensationMethods


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Evaluating Agencies

FinancialAudit

QualitativeAudit

Verify costs, expenses

Personnel hours charged

Payments to media

Payments to suppliers

Planning

Program development

Implementation

Results achieved
http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/view/


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Top AgencyValue-Add Activities

New mediaguidance,solutions

Integrated

disciplines& functions

Creativeideas

Collaboration

Ideas/programsfor multi comm.

programs

Talentedpeople

Branddriver

evaluation
http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/view/http://www.pbs.org/wgbh/pages/frontline/shows/persuaders/view/


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Loyalty to a Single Agency

Young &Rubicam has

handled theDr Pepperaccount for

over 30 years


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Why Agencies Lose Clients

Poorperformance

Poor

communications

UnrealisticClient demands

Personalityconflicts

Personnelchanges

Changesin size of client

or agency

Conflicts ofinterest

Change inclients strategy

Decliningsales

Payment

conflicts

Policy Changes

Policy Changes


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How Agencies Gain Clients

Referrals

Solicitations

Presentations

Public Relations Image, Reputation

h h d
http://www.cpbgroup.com/http://www.cpbgroup.com/


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The Hottest Agencyin the Ad Business

i k i i i i
http://www.cpbgroup.com/http://www.youtube.com/watch?v=PvJafjL8oKUhttp://www.cpbgroup.com/http://www.ogilvy.com/http://www.ogilvy.com/


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Direct-Marketing AgencyActivities

Directmail

Databasemanagement

Research

Creative

Media services

Direct-MarketingAgencies

Production

Database

development,management

Di M k i A
http://www.ogilvy.com/http://www.ogilvy.com/


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Direct-Marketing Agency

Departments in a typical direct-marketing agency

Account management

CreativeMedia

Database development and management

S l P ti A i
http://www.dja.com/http://www.dja.com/


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Sales Promotion Agencies

Catalog production

Promotional planning

Creative research

Tie-in coordination

Fulfillment

Premium design andmanufacturing

Contest/sweepstakesmanagement

F ti P f d b P bli R l ti Fi
http://www.dja.com/http://www.dja.com/


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Functions Performed by Public Relations Firms

Strategydevelopment

Generatingpublicity

Lobbying

Publicaffairs

News releases,communication

Research

Managingcrises

Coordination

with promotionalareas

Special events

F ti P f d b I t ti A i


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Functions Performed by Interactive Agencies

Webbanner ads

Search engineoptimization

Kiosks

InteractiveMedia Creation

CD-ROMs

Web sites Text messages

W b it f th C lif i Milk Ad i B d
http://www.deutschinc.com/http://www.deutschinc.com/


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Website for the California Milk Advisory Board

M k ti R h C i
http://www.deutschinc.com/http://www.realcaliforniacheese.com/rcmhttp://www.deutschinc.com/


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Marketing Research Companies

Quantitative studies

Qualitative research

Help clients under-stand target audience

P d C f I t t d S i


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Pros and Cons of Integrated Services

Convenience

Greater synergy

Single image forproduct or service

Poorcommunication

Budget politics

IntegratedServices


No synergy

Test Your Knowledge


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Test Your Knowledge

Marketing executives say the biggest obstacle to

implementing IMC is:A) Lack of management support

B) Insufficient budgets

C) Lack of people with the right perspectiveand skills

D) Inexperienced ad agencies

Obstacles to Implementing IMC


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Obstacles to Implementing IMC

Key obstaclesLack of people with the broad perspective

and skills to make it work

Internal turf battles

Agency egos

Fear of budget reductions

Ensuring consistent execution

Measuring success

Compensation

imc process

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