Managing the IMC Function

MKT 3850Dr. Don Roy

https://www.youtube.com/watch?v=yXTJhVBqWOM

Options for Managing the IMC Function

• Do-It-Yourself Approach: Use of an in-house ad agency

• Outsourcing IMC: Hire an outside agency to create communication

• Combination of In-House and Outside Agency

Outside Marcom Agencies

Approaches agencies use for offering marcom services:

• Full-Service Agencies• Specialized Agencies

Full-Service Agencies

• One-stop shopping service for a brand’s marcom needs; it’s a “Wal-Mart Supercenter” approach to buying marcom services

• Full-service agency typically consists of functional areas that all work to serve the client

Full-Service Agency Departments

• Account management

• Creative services

• Media planning and buying

• Research

• Account planning

• Traffic

Specialized Marcom Agencies

• Many firms do not have a need for entire range of services offered by full-service agencies or find them overpriced

• Specialized marcom agencies offer a “Starbucks” approach to marcom services, providing expertise in a single or limited area

Specialized Agencies Examples

• Brand Strategy Agencies

• Media Buying Agencies

• Public Relations Agencies

• Direct Marketing Agencies

• Sales Promotion Agencies

• Interactive Agencies

• Social Media Agencies

• Event Marketing Agencies

• B2B Marketing Agencies

• Ethnic Marketing Agencies

• Expertise

• Objectivity

• Resources

• Efficiency

Why Hire an Outside Agency?

Agency-Client Relationships:A Revolving Door?

The Future of Ad Agency Compensation?

“Agencies can create brands and product categories where we have an idea: We can name it, we can label it, we can research it. We can say, ‘If the product has these characteristics, it looks like an X million-dollar business’ and then we can go and sell that brand to somebody who has the expertise in manufacturing and distribution.”

- Keith Reinhard, 40-year ad veteran, Chairman, DDB Worldwide, and creator of the pay-for-performance concept