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Chapter 3 Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998 Participants in the IMC Process Advertiser (client) Irwin/McGraw-Hill Advertising Agency Media Organizations Marketing Communications Specialists (directmarketing, sales promotion….agencies ©The McGraw-Hill Companies, Inc., 1998 Collateral (confirming) services Slide 3-1 Figure 3-1 • • • • • Advertiser client: Are the key participant in the process they provide the fund paid for advertising and promotion, responsible for developing advertising and promotional program Advertising agency: Outside firm specialized in the creation, production, and placement of the communications massage and facilitate the marketing and promotions process. Media organization: Provide information or entertainment to their subscribers , viewers, or readers. Specialized Marketing communications services: includes direct marketing agency, sales promotion agency , interactive agency, and public relation firms ,these firms provide services in their areas expertise Collateral (Additional) Services: A wide range support Functions used by advertisers, agencies , media organizations and specialized marketing communication services The Advertising Department Under a Centralized System President Production Marketing Research Irwin/McGraw-Hill Finance Marketing Advertising R&D Sales ©The McGraw-Hill Companies, Inc., 1998 Human Resources Product Planning Slide 3-2 Figure 3-2 Basic Functions of Advertising manager • Planning and Budgeting :responsible about developing advertising and promotion plan and estimate the budgets • Administration and executing: Organize ,supervise and control all the advertising and promotion activities. • Coordination with other departments • Coordination with outside Agencies Departments within a Full-Service Agency • • • • Account Services Marketing Services Creative Services Management and Finance Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 Slide 3-3 Why Agencies Lose Clients • • • • • • • Poor performance or service Poor communication Unrealistic demands by client Personality conflicts Personnel changes Changes in size of client or agency Conflicts of interest Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 Slide 3-4 How Agencies Gain Clients • Referrals: Gain new clients as a result referral from existing clients ,media representative or other agencies • Solicitations (Appealing): • Presentations • Public Relation • Image and reputation Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 1998 Slide 3-5