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“In the past decade, what marketers do to engage customers has changed almost beyond recognition.” “Tools and strategies that were cutting-edge just a few years ago are fast becoming obsolete, and new approaches are appearing every day.” “Yet in most companies the organizational structure of the marketing function hasn’t changed since the practice of brand management emerged, more than 40 years ago.” - The Ultimate Marketing Machine, Harvard Business Review (July-August 2014) ADVERTISING & MARKETING ORGANIZATIONS TRADITIONAL ADVERTISING AGENCY STRUCTURE Board of Directors President Account Services VP Account Services • Acct. Supervisor • Acct. Executive Creative Services VP Creative Services • • • • • • Creative Director Art Director Writer Designer Production Traffic Marketing Services Finance & Admin. Serv. VP Mktg. Services VP Finance & Admin • Media • Research • Sales Promotion • Personnel (HR) • Accounting • Finance Account Services - Traditional Account Supervisor Account Executives Account Planner Creative Services - Traditional Creative Director • Art Director • Writer • Designer • Production • Traffic • Marketing Services - Traditional Media • Research • Sales Promotion • Administrative Services - Traditional Personnel (HR) • Accounting • Finance • “Much like newspapers, conventional advertising agencies are becoming irrelevant. When one person with a wireless connection can be an agency, a media company, or even a manufacturer, traditional advertising organizations have to change their culture, processes, structure, talent policies, resources, and even their business and revenue models in order to embrace the power of open systems being fueled by digital connectivity. The old agency businesses may still have time to correct their course, but they must start now.” SOURCE: The End of Traditional Ad Agencies, HBR Blog Network (May 9, 2013) TRADITIONAL MARKETING DEPARTMENT STRUCTURE SOURCE: Rooney, Jennifer. “Here’s What the Marketing Organization of the Future Should Look Like.” Forbes, Oct. 4, 2013 Types of Agencies & Firms ESTABLISHED MODELS Traditional Advertising Agency INNOVATIVE/DISRUPTIVE MODELS Media Service – plan/buy Promotion Agency PR Agency Marketing Services Firm Direct Marketing Agency Branding/Identity Mgmt. Firm Design Firm In-house Agency Interactive/Digital Agency Social Media Agency Content Strategy Firm Customer Experience Mgmt. Firm Open innovation agency? Services Account Services Public Relations (PR) Strategy Marketing – direct, specialty Digital Brand – development, management Creative – content, design, production Content – creation, marketing Media – planning, strategy online, user-experience design Technology development Customer Experience/Engagement TRADITIONAL ADVERTISING AGENCY STRUCTURE = DOESN’T FIT! Board of Directors President Account Services Content Strategy Digital Media Creative Services Analytics/Big Data Brand Strategy Marketing Services Customer Experience Social Media Finance/HR Interactive Development Customer Engagement Brand Management Marketing leaders instead must ask, “What values and goals guide our brand strategy, what capabilities drive marketing excellence, and what structures and ways of working will support them?” Structure must follow strategy–not the other way around.” SOURCE: The Ultimate Marketing Machine, Harvard Business Review (July-August 2014) Data & Analytics THINK • Architecture & Modeling • Senior Data Architect Director • Senior Data Modeler • Digital Privacy Analyst • Web Analyst • Market Data Analyst Customer Engagement ORCHESTRATOR Account Manager (Account Services) FEEL • • • • Customer Service Rep. Engagement Coord. Online Community Mgr. PR Executive • Social Media Mgr. • Usability Specialist Content & Production DO • • • • SOURCE: The Ultimate Marketing Machine, Harvard Business Review (July-August 2014) Concept Creator • Digital Content Strat. Designer • Web Production Digital Producer Marketing Content Mgr. SOURCE: Rooney, Jennifer. “Here’s What the Marketing Organization of the Future Should Look Like.” Forbes, Oct. 4, 2013 Characteristics of Successful Agencies Consumer insights (driven by big data) Purposeful positioning Functional benefit, emotional benefit, societal benefit Total Customer Experience Organization Cross-functional collaboration, Agility, Focusing, Inspiring SOURCE: The Ultimate Marketing Machine, Harvard Business Review (July-August 2014)