IMC Process: The Ad Agency’s Role
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Participants in the IMC Process
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Advertiser (client) Advertising agency Media organizations Marketing communication specialist organizations Collateral services
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The Ad agency's role
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functions performed by advertising agencies might be conducted by the clients themselves through one of the designs discussed earlier in this chapter, nut most large companies use outside firms. Reasons for using an ad agency -highly skilled
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The Advertiser and Clients
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The key participation in the process Have product, service, or cause marketed The provide funds that pay for advertising and promotions
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Advertising agency
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An outside firm that specializes in the creation, placement of the communications message specializes in the creation, production, and placement
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Media organization
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provides information and entertainment to their subscribers provide environment for firm's marketing communication message Attract Customers
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Specialized marketing communications services
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Include direct marketing agencies, sales promotion agencies, interactive agencies, public relations firms. Organizations provide service in their area of Expertise
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Collateral services
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support functions used by advertisers, agencies, media organizations, and specialized marketing communications firms. Perform Specialized functions examine role of each participant in more detail.
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Advertising manager
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Responsible for all promotions activities except sales (in some companies this individual has the title of marketing communications manager). sometime in charge of marketing communication
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Centralized system
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-marketing activities are divided along functional lines. -sales, marketing, research, production planning -controls the entire promotions operations budgeting productions of ads planning media schedules monitoring/administering the sales promotions program for product/service Everything is done by the same Agency more for a small business -better communication
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Decentralized system
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used by large corporations w/ multiple divisions, and products difficult to manage all advertising through Centralized Department Uses Separate -manufacturing -research -development -sales -marketing -product line -business Assign each product or brand to Brand Manager
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Brand Manager
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who is responsible for the total management of the brand including -planning, -budgeting, -sales, and -profit performance -control of marketing program
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Administration and Execution
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Must organize advertising department and supervise and control activities. Supervises execution works with departments of production, media, copy, digital/ interactive, and sales promotions Manager must still approve agency's plan (if outside agency is used)
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Coordination with Other Departments
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Coordination with Outside Agencies and Service
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Category Management System
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Category Managers/ Brand and Advertising Managers
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In- house agency
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Advertising Agencies
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Billings
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Superagencies
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Reasons for using an Agency
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Types of Ad Agencies
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Full-Service Agencies
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Full range of Marketing Communication / Promotional Services including planning, creating, producing the advertising; performing research selecting media. Nonadvertising Services strategic market planning sales promotion direct marketing interactive capabilities package design public relations/ publibity
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Account Services
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responsible for understanding the advertiser's marketing and promotions needs and interpreting them to agency personnel.
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Marketing Services
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Account Planners
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Creative Services
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Copywriters
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Management and Finance
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Agency Organization and Structure
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Departmental System
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Group System
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which individuals from each department work together in groups to service particular accounts.
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Other types of Agencies and Services
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Creative Boutiques
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Media Specialist Companies
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Agency Compensation
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Commissions from Media
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Commission System
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Appraisal of the Commission System
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Negotiated Commission
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Fee, Cost, and Incentive- Based Systems
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Fee Arrangement
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Fixed-Fee Method
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Fee-commission Combination
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Cost-Plus Agreement
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Incentive-Based Compensation
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Incentive-Based System
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Percentage Charges
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various services the agency purchase from outside providers.
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The Future of Agency Compensation
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Evaluating Agencies
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Financial Audit
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Qualitative Audit
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Gaining and Losing Clients
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Why Agencies Loser Clients
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How Agencies Gain Clients
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Referrals, Solicitations, Presentations, Public Relations, Image/Reputation
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Referrals
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Solicitations
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Reach out and establish contact with new clients
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Presentations
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Public Relations
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Image and Reputation
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Advertising Manager
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responsible for promotions activities except sales.
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Integrated Marketing Communications Services
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Pros and Cons of Integrated Services
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Responsibility for IMC: Agency versus Clients
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Direct Marketing agencies
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Provide programs of direct marketing
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Sales Promotion Agencies
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Provide contest, sweepstates, sampling product
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Interactive Agencies
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Developing Websites
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Public Relations Firms
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Manage publicity for company's focus on relationships and communications
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Planning and Budgeting
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advertising department develops promotional budget responsible for developing/ promotions plan final decision on allocating funds made by top management
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Manager and Staff Perform
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Planning and Budgeting Administration and Execution Coordination with Other Departments Coordination with Outside Agencies/ Services
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Clients
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have the product, service to be marketed provide the funds that pay for the advertising and promotion
