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Journal of
Promotion Management
Volume 11
Number 3
Spring 2005
CONTENTS
FROM THE EDITOR
NEW APPROACHES TO THE BUSINESS OF ADVERTISING—MARKETING
COMMUNICATIONS THEORY AND BUSINESS PRACTICES
Investigative Approaches to the Study of Advertising
Graham Spickett-Jones, Philip J. Kitchen, and Bradley R. Barnes
Advertising is part and parcel of the cultural wallpaper, the noise, clutter, and media chatter in which we
live. This article describes firstly why advertising is needed, and then considers investigative approaches
that can be used to understand the topic. We recommend that methodological pluralism offers critically
valuable perspectives, which are needed to establish an appreciation of the role and functioning of
advertising in a modern context. KEYWORDS. Advertising, communications research, investigative
approaches, methodology.
A Project Management Approach to Increasing Advertising Agency Margins
Charlene Spoede Budd and Marjorie J. Cooper
Project management is a promising new managerial technique to improve advertising agency
productivity and performance. Although PERT/CPM is the most widely accepted project management
approach, the Critical Chain technique developed by Eliyahu Goldratt overcomes the widely reported
deficiencies of PERT/CPM. Using a hypothetical but realistic set of time estimates for tasks involved in
creating an advertising campaign, Critical Chain was tested against PERT/CPM and was shown to
reduce project duration by 20%. The authors present the rationale behind the Critical Chain approach
and provide an overview of how to schedule and manage a project using this new methodology. This
article also discusses the benefits that an advertising agency can derive from using Critical Chain.
KEYWORDS. Advertising, agency management, Critical Chain technique, PERT/CMP, project
management.
Reducing Disconnects in the Design Agency-Client Relationship: Is Process Management the
Solution?
Harold L. Koch and Christopher Liechty
Account turnover for smaller agencies, whether an advertising, marketing research or design agency, is a
serious financial drain that absorbs disproportionate CRM and managerial energies. Using a web-based
survey developed from in-depth interviews, this empirical study investigates the extent to which smaller
graphic design agencies follow the classical decision-making “process” when producing a creative
product (an advertisement; a new package design, etc.). The global hypothesis is that the greater the
degree of adherence to the steps in the management of the ideal relationship management “process” the
greater the perceived satisfaction will be with their clients. Results of the analysis partially support the
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hypothesis and provide valuable directions for future studies. KEYWORDS. Agency-client relationships,
applied marketing research, management, marketing theory and applications, process management,
relationship marketing.
Are Restaurant Franchisees Getting a Positive Return on Their Advertising Fees?
J. Duncan Herrington
This study examines two primary issues related to conflict in franchiser-franchisee relationships in the
restaurant industry: the effectiveness of national advertising campaigns with respect to returns to
franchisee advertising investment and the potential for data aggregation bias resulting from system-wide
analyses. The results suggest that a large proportion of chains do not realize a positive, immediate return
to franchisee advertising investment and that data aggregation can lead to false advertising response
estimates. KEYWORDS. Advertising, franchising, profitability, restaurants.
An Analysis of Senior U.S. Advertising Executives’ Perceptions of Internet Communication
Benefits
Padmini Patwardhan and Hemant Patwardhan
This study empirically examined current perceptions of internet capabilities for marketing and marketing
communications among senior advertising professionals in the United States through an email survey of
senior advertising agency executives. Overall opinion about internet use as a marketing tool was highly
positive. Factor analysis identified six specific internet benefit dimensions: Cost/Time Efficiency,
Customer Orientation, Customer Interactivity, Promotional Use, Personal Contact Replacement, and a
more general benefit—Overall Value of Internet in Marketing. While Customer Orientation and Customer
Responsiveness benefits were seen as significant drivers of future web site activity by clients, Cost/Time
Efficiency and Customer Orientation were seen as significantly contributing to a company’s competitive
business edge. Managerial implications are that, at present, senior agency personnel are more confident
about the internet’s role in business building rather than brand building, and consider this role as more
influential in improving competitiveness, and making recommendations about web site usage to clients.
KEYWORDS. Advertising, agencies, clients, competitiveness, customers, executives, internet,
management.
INTEGRATED MARKETING COMMUNICATIONS
Integrated Marketing Communications and Market Planning: Their Implications to Brand Equity
Building
Saravudh Anantachart
This article links the integrated marketing communications (IMC) concept to the planning process in
marketing. Following the current conceptualizations as a combination of various marketing
communications tools, IMC strategy is applied to an established strategic market planning model named
the Boston Consulting Group (BCG)’s growth-share matrix. Advertising, public relations, sales
promotion, and direct marketing are defined as crucial elements for the core scheme. Alternative
strategies for brands in different stages are identified from the product portfolio analysis. The view may
also be thought as the on-going process of building and maintaining brand equity for consumers in the
long-term period. Conceptual discussions are expected to help marketers think more strategically as they
plan IMC programs for their products or services. KEYWORDS. Boston Consulting Group (BCG)’s
growth-share matrix, brand equity, integrated marketing communications (IMC), market planning,
strategic planning.
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Probing Integrated Marketing Communications (IMC) in Turkey
Figen Ebren, Philip J. Kitchen, Şafak Aksoy, and Erdener Kaynak
This article reviews the literature on IMC and then examines its development empirically in Turkey. In
this paper, we explore perceptions of IMC derived from a sample of advertising agency executives, and
explore how perceptions of IMC within the developing country of Turkey. The main aim of the survey was
to explore how agencies implement, coordinate, and evaluate IMC programs, and examine barriers
relating to these. Managerial and public policy implications of the study are also offered. Findings
underpin global adoption of IMC even in conditions of economic turbulence. Moreover, the findings
confirm that IMC (in Turkey) as elsewhere is more related to tactical implementation of promotion than
to strategic business development. KEYWORDS. Advertising, integrated marketing communications
(IMC), measurement, public relations, Turkey.
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