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03 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed Participants in the IMC Process 3-2 Advertising Dept. Under a Centralized System President Production Finance Marketing research Marketing Advertising Research and development Sales Human resources Product planning 3-3 Decentralized Advertising System Corporate Production Finance Sales Marketing Product Management Brand Manager Ad agency Brand Manager Ad agency R&D Human Resources Marketing services Advertising Dept Marketing Research Sales promotion Package design Merchandising 3-4 Full-Service Agencies Full range of marketing communication and promotion services Nonadvertising services Planning advertising Performing research Creating advertising Selecting media Producing advertising Strategic market planning Interactive capabilities Sales promotions Package design Direct marketing Public relations and publicity 3-5 Agency Services Account Services Marketing Services Creative Services The link between agency and client Research department Creation, execution of ads Accounting Copywriter artists, other specialists Human resources Managed by the account executive May include account planners Media dept. obtains media space, time Mgmt & Finance Finance New business generation 3-6 Creative Boutiques Creative Boutiques Provide only creative services May subcontract from full-service agencies Strength is turning out creative work quickly 3-7 Media Buying Media Specialist Companies Specialize in buying media, especially broadcast time Agencies and clients develop media strategy Media buying organizations implement strategies, and buy time and space 3-8 Agency Compensation Methods Commissions from media Fee, cost, and incentive-based systems Percentage charges 3-9 Evaluating Agencies Financial Audit Qualitative Audit Verify costs, expenses Planning Personnel hours billed Program development Payments to media Implementation Payments to suppliers Results achieved 3-10 Direct Marketing Agency Activities Direct-Marketing Agency Services Database management Media services Direct mail Creative capabilities Research Production 3-11 Sales Promotion Agencies Promotional planning Creative research Tie-in coordination Fulfillment Premium design and manufacturing Catalog production Contest/sweepstakes management 3-12 Functions Performed by Public Relations Firms Strategy development Public affairs Special events Generating publicity News releases, communication Managing crisis Research Coordination w/promotional areas Lobbying 3-13 Functions Performed by Interactive Agencies Interactive Media Creation Websites Banner ads Search engine optimization Mobile marketing Social media campaigns Digital media 3-14 Collateral Services • Typical collateral services • Marketing research • Package design • Consultants • Photographers • Printers • Video production • Event marketing 3-15
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