2012/9/26. Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communications Organizations

Transcription

1 Participants in the IMC Process Advertiser (Client) Advertising agency Organizing for Advertising and Promotion: Role of Ad Agencies and Other Communications Organizations Media organizations specialist organizations Collateral Directresponse Public relations firms Advertising Department Under Centralized System Pros & Cons of Centralization President Better goal involvement Production Finance Advertising and Product Human resources Fewer personnel Continuity of staff More top involvement Centralized System Longer response time Can t do multiple product lines Decentralized Brand Management System Corporate Pros & Cons of Decentralization Production Finance and Human resources Concentrated attention Ineffective decision making Brand manager Ad agency Product Brand manager Ad agency Merchandising Advertising department Package design Rapid problem response Increased flexibility Decentralized System Internal conflicts Misallocation of funds Lack of Authority 1

2 Pros & Cons of In-House Agencies A major reason why some companies choose to use an in-house agency is to: A) maintain creative freshness B) reduce and s costs C) better understand how works D) win awards that will enhance the image of their brands E) do all of the above Cost savings More control In-house experience objectivity Better coordination flexibility Benetton s In-House Works With Outside Agencies to Develop Ads Ad Agencies Have Skilled Specialists Artists Writers ers Photographers Media Analysts Other Skills Crispin Porter+Bogusky Found Ways to Advertise the Mini Full- Agencies Planning Creating Producing Full range of marketing communication and Performing Selecting media Strategic market s Direct marketing Non capabilities Package design Public relations and publicity 2

3 Typical Full-Service Organization Provided by Agencies Writers Art directors VP creative TV Print production production Traffic VP account supervision executive Board of directors President VP marketing Media Office Personnel VP and finance ing Finance Service link between agency and client Managed by the account executive department May include account planners Media department to obtain media space and time Creation and execution of ads Copywriters, artists, other specialists Role of Boutiques Media Buying Can Be Specialized Boutiques Provide only creative Media Specialist Companies Specialize in buying media, especially broadcast time Full-service may subcontract with creative boutiques Agencies and clients develop media strategy Ability to turn out inventive creative work quickly Media buying organizations implement the strategy and buy time and space Methods of Compensation Which of the following statements about changes in the way are being compensated is true? A) Most clients do not pay full commissions to their because they prefer to use some type of fee or incentive-based system. B) From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. C) Since most clients want their to be in total charge of the integrated marketing process, they are willing to compensate them based on media commissions. D) All of the above statements about changes in the way ad are being compensated are true. Compensation Methods Commissions from media Fee, cost, and incentive-based systems Percentage charges 3

4 Young & Rubicam has handled Dr Pepper for over 30 years Why Agencies Lose Clients performance Unrealistic demands Personality conflicts Personnel changes Changes in size Conflict of interests Changes in strategy Payment conflicts Declining sales Policy changes How Agencies Gain Clients A Change in Strategy Led to a Change in Gateway s Advertising and Referrals Presentations Solicitations Public Relations Image, Reputation *Click outside of the video screen to advance to the next slide Direct- Activities Activities Performed by Promotion Agencies Promotional Database Media work and Direct mail Direct- Agencies Production Tie-in coordination Fulfillment Premium design and manufacturing Catalog productions Contest/sweepstakes 4

5 Functions Performed by Public Relations Firms Functions Performed by Agencies Strategy Damage control Generating publicity Web banner ads CD-ROMs Program Web sites Media Creation Text messages Lobbying Image portrayal Kiosks Search engine optimization Public affairs Companies Planning and implementing Pros & Cons of Integrated Information application Greater synergy Budget politics Analysis and interpretation Convenience Integrated communication Primary data collection qualitative & quantitative Secondary data collection Single image for product or service No synergy Obstacles to Implementing IMC Surveys of marketing and ad agency executives about integrated marketing (IMC) have shown: A) agency executives do not support the idea of integrated marketing B) marketers and agency executives have similar opinions regarding who should be in charge of the IMC program C) internal turf battles, agency egos, and fear of budget reductions are seen as major barriers to successful IMC campaigns D) marketing executives feel a lack of people with IMC skills is a major obstacle to implementing integrated marketing Many Many elements elements to to handle handle egos egos Consistent Consistent execution execution Compensation Fear Fear of of budget budget reductions reductions Internal Internal turf turf battles battles Measuring Measuring campaign campaign success success 5