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MRK317
Integrated Marketing
Communications
The Advertising Industry in Canada
Regulations in Canada
Participants in the IMC Process

Figure 16-1
Participants in the IMC Process

Advertiser (Client)
Key participants in the process
 Have the products, services, or causes to be
marketed
 Provide funds to pay for advertising/promotions


Advertising Agency

An outside firm that that specializes in the
creation, production, and/or placement of the
communications message
Participants in the IMC Process

Media Organizations


Provide an environment for the firm’s marketing
communications message
Specialized Marketing Communications Services


Include direct marketing agencies, sales promotion
agencies, interactive agencies, and public relations
firms
These organizations provides services in their areas of
expertise
Management Issues of Advertising
Agencies

Advertising Agency Decision
In-House Agency Option
 Advertising Agency Option

Full Service Advertising Agencies
Account Services
 Marketing Services
 Creative Services
 Management and Finance
 Structure

Account Services

Account services is the link between the ad
agency and the client

The account executive is responsible for
interpreting the advertiser’s needs to the
agency
Account Services

Coordinates agency efforts in planning,
creating, and producing ads

Presents agency recommendations and
obtains client approval
Marketing Services

Research Department


Gather, analyze, and interpret information
important in developing advertisements
Media Department

Analyzes, selects, and contracts for space or
time in the media selected for the client
Creative Services

Copywriters are responsible for the creation
and execution of advertisements

May be involved in determining the basic
appeal or theme of the campaign

The art department is responsible for how
the ad looks
Creative Services

Coordinating the creative and production
processes can often be a major problem

A traffic department coordinates all phases
of production to ensure all deadlines are
met
Management and Finance

Advertising agencies must be managed and
perform operating functions such as
accounting, human resources, etc.

Must generate new business

Bulk of an agency’s income goes to salary
and benefits for employees
Other Types Of Agencies and
Services

Creative Boutiques

Media Buying Services
Creative Boutiques

Creative boutiques have developed in response to
desires to utilize outside creative talent only

Clients may believe extra creative effort is
required or its employees do not have sufficient
skills

Boutiques usually perform creative functions
on a fee basis
Media Buying Services

Independent companies that specialize in the
buying of media, particularly radio and television
 Agencies and clients usually develop their own
media strategies and hire a buying service to
execute them
 Media buying services have grown in recent years
as clients seek alternatives to full-service agency
relationships
 Paid a fee or commission for their work
Agency Compensation

Commissions from Media

Other Compensation Systems
Fee Arrangement
 Cost-Plus Agreement
 Incentive-Based Compensation
 Percentage Charges

Gaining and Losing Clients
Poor performance or service
 Poor communication
 Unrealistic demands by the client
 Personality conflicts
 Personnel changes

Gaining and Losing Clients
Changes in the size of the client or agency
 Conflicts of interest
 Changes in the client’s corporate and/or
marketing strategy
 Declining sales
 Conflicting compensation philosophies
 Changes in policies

Advertising Regulation in Canada

Canadian Radio-television and
Telecommunications Commission (CRTC)

Regulation of Tobacco Advertising

Quebec Regulations on Advertising to Children

Advertising Standards Council (ASC)
CRTC

Mandate is to ensure the Broadcasting Act
of 1991 and Telecommunications Act of
1993 are upheld throughout Canada

Make certain that all Canadians can receive
broadcasting and telecommunications
services
CRTC

Advertising aspects regulated:
Advertising Limits
 Infomercials
 900 numbers
 Alcohol and drugs


Not covered:
False and misleading ads
 Internet

Regulation of Tobacco Advertising

Restricted by Health Canada regulations on
their use of traditional advertising media

Sponsor various arts, cultural, and sporting
events (discontinued in 2003)
Regulation of Tobacco Industry

Print ads communicating sponsorships
were only permitted advertising

Underground marketing has emerged,
communication of brands occurs through
exclusive distribution in select bars, pubs
and nightclubs
Quebec Regulations on
Advertising to Children

Consumer Protection Act of Quebec
It is illegal to direct commercial messages to
persons younger than 13
 Concerns the product, the way the ad is
presented, and the time and place the ad is
shown

Advertising Standards Council
(ASC)

Not-for-profit, self regulatory, industry body
with mandate to create and maintain
community confidence in advertising

Represents advertisers media organizations
and advertising industry suppliers
ASC

Canadian Code of Advertising Standards
Describes what is not acceptable advertising
 Pertains to the content of ads only
 Intention is to provide standards so that
responsible and effective advertising results


Gender Portrayal Guidelines

Ensure that women and men are portrayed
appropriately in advertising
ASC

Complaint Process
Handles complaints in three streams
 Consumer complaints: from ordinary citizens
who believe an ad is unacceptable
 Special interest groups: from a demonstrated
organization that expresses a unified viewpoint
 Trade disputes: complaints from other
advertisers

ASC

Complaints Report
Comprehensive annual report
 Identification of advertisers and the details of all
complaints


Clearance Process
Alcohol
 Cosmetics
 Non-prescription drugs
 Ads directed towards children
 Food

Ethical Effects of Advertising

Advertising as Untruthful or Deceptive

Advertising as Offensive or Bad Taste

Advertising and Children
Examples of Shock Ads
Many People Found Benetton’s “Sentenced to
Death” Campaign Offensive
Advertising is Used to Address
Social Problems
Using Advertising to Fight the War on
Drugs