Download Chapter 3 Organizing for Advertising and Promotion: The Role of Ad

CHAPTER 3
ORGANIZING FOR
ADVERTISING AND
PROMOTION: THE ROLE
OF AD AGENCIES
AND OTHER MARKETING
COMMUNICATION
ORGANIZATIONS
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Education.
PARTICIPANTS IN THE INTEGRATED
MARKETING COMMUNICATIONS
Advertisers or clients PROCESS
Advertising agency
Media organizations
Specialized marketing communication services
organizations
Collateral services organizations
2
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FIGURE 3.2 - THE ADVERTISING
DEPARTMENT UNDER A CENTRALIZED
SYSTEM
or communications
manager
3
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TRADITIONAL ADVERTISING MANAGER’S
ROLE
• ADVERTISING MANAGER OR MARKETING COMMUNICATIONS
MANAGER ARE TRADITIONALLY RESPONSIBLE FOR CARRYING OUT ALL
ASPECTS OF ADVERTISING: BUDGETING, PLANNING, MEDIA
SCHEDULE, SALES PROMOTION PROGRAMS.
4
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FIGURE 3.3 - DECENTRALIZED BRAND
MANAGEMENT SYSTEM
5
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Decentralized
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FIGURE 3.4 - COMPARISON OF
ADVERTISING
ORGANIZATIONAL SYSTEMS
7
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ADVERTISING AGENCIES
• SERVICE ORGANIZATIONS THAT SPECIALIZE IN PLANNING
AND EXECUTING ADVERTISING PROGRAMS FOR ITS
CLIENTS
• SUPERAGENCIES: LARGE AGENCIES THAT MERGED WITH
OR ACQUIRED OTHER AGENCIES AND SUPPORT
ORGANIZATIONS
8
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9
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Work of Advertising Agency
– Make a plan to promote product or service
– Choose the media
– Book an ads space or time
– Make design for billboard, outdoor advertisement, newspaper,
Television, Radio and internet advertisement.
– Media communication on behalf of the company
– Market survey and analysis
– Make a report for a period
– Provide suggestion to the company to any other advertising
tools
– Handle billing
And more…
11
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SOME OF THE AGENCIES IN BD
• ASIATIC
 Spellbind
• TBWA\BENCHMARK
 Roop
• GREY
 Rectangle
• CARROTCOM
• BITOPI
 Neptune
• ADCOMM
 Top of Mind
• MEDIACOM
 Interspeed
• UNITREND
 Protishapda
 i-positive
12
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REASONS FOR USING AN AD
AGENCY
Highly skilled specialists
Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience
13
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THE CLIENT BRIEF
THIS IS GOD!
14
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15
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THE CONTENT OF THE CLIENT BRIEF
1. WHY COMMUNICATE NOW? REASON FOR CONTACTING US
2. WHAT DO YOU WANT THIS CAMPAIGN TO ACHIEVE?
3. WHAT IS THE OBJECTIVE OF YOUR CAMPAIGN?
4. WHO ARE YOUR TARGET CUSTOMERS? (WHICH SEC DO THEY
BELONG IN?)
5. WHAT INSIGHTS DO YOU HAVE ABOUT YOUR CUSTOMERS?
6. HOW TO YOU WANT YOUR TARGET CUSTOMERS TO DESCRIBE THE
BRAND?
16
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• 7A. WHAT IS THE SINGLE MOST IMPORTANT THING YOU WANT
YOUR TARGET CUSTOMERS TO TAKE OUT FROM THIS
ADVERTISEMENT/CAMPAIGN?
7B. HOW IS THE ABOVE OFFER BELIEVABLE?
8. IS THERE ANYTHING IN PARTICULAR YOU WANT TO BE
MENTIONED IN THE ADVERTISEMENT?
9. WHAT IS AN ABSOLUTE MANDATORY IN THE ADVERTISEMENTS?
10. DELIVERABLES
11. YOUR BUDGET FOR THIS CAMPAIGN
17
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YOUR ASSIGNMENT
• GROUP OF 5
• EACH GROUP TALKS WITH AN AGENCY
• GIVE ME A RUN DOWN:
• HISTORY OF THE AGENCY
• HOW MANY EMPLOYEES?
• ORGANOGRAM?
• CLIENTS? – TOP? – SMALL? (RETAINER VS PROJECT BASED)
• COMMUNICATION PROCESS WITH THE CLIENTS
• SHOW ME SOME OF THEIR CAMPAIGN
• TELL ME THEIR IDEA/ THOUGHT PROCESS BEHIND IT?
• WAS IT SUCCESSFUL? HOW?
• THEIR VERSION OF THE CLIENT BRIEF?
• WHAT PROBLEMS THEY FACE?
• HOW THEY OVERCOME IT?
18
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Types of Ad Agencies
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 publicity19
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20
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FIGURE 3.6 - FULL-SERVICE AGENCY
ORGANIZATION CHART
21
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22
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AGENCY SERVICES
Account
services
Marketing
Services
Creative
Services
• The link
between
agency and
client
• Managed
by the
account
executive
• Research
department
• May include
account
planners
• Media dept.
obtains
media
space, time
• Creation
execution of
ads
• Copywriter
artists, other
specialists
Mgmt &
Finance
• Accounting
• Finance
• Human
Resources
• New
business
generation
23
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CREATIVE BOUTIQUES
• SMALL AD AGENCIES THAT PROVIDE ONLY CREATIVE
SERVICES
• ADVANTAGES
• TURN OUT INVENTIVE CREATIVE WORK QUICKLY
• PROVIDE MORE ATTENTION AND BETTER ACCESS TO
CREATIVE TALENT
24
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SOME CREATIVE BOUTIQUES IN OUR
COUNTRY
• ZAP-LAB
• UNIFOX DIGITAL
• STRATE-GEEK DIGITAL
• MAVERICKS
25
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Specialize in buying media,
especially broadcast time
Agencies and clients develop
media strategy
Media buying organizations
implement strategies, and
buy time and space
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Types of Media
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AGENCY COMPENSATION
METHODS
Commissions
from media
Percentage
charges
Fee, cost, and
incentive-based
systems
Retainer ship
Project Basis
28
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EVALUATING AGENCIES
Financial audit
Qualitative audit
Costs, expenses
Planning
Personnel hours billed
Program development
Payments to media
Implementation
Payments to suppliers
Results achieved
29
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FIGURE 3.9 - HOW AGENCIES ADD
VALUE
TO CLIENT’S BUSINESS
Source: “Report on the Agency–Advertiser Value Survey,” American Association of Advertising Agencies and Association of National Advertisers, August
2007
30
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DIRECT-MARKETING AGENCIES
 PROVIDE A VARIETY OF SERVICES




DATABASE ANALYTICS AND MANAGEMENT
DIRECT MAIL
RESEARCH AND MEDIA SERVICES
CREATIVE AND PRODUCTION CAPABILITIES
 HAS FOLLOWING DEPARTMENTS




ACCOUNT MANAGEMENT
CREATIVE
MEDIA
DATABASE DEVELOPMENT/MANAGEMENT
31
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SALES PROMOTION AGENCY
 INVOLVED WITH THE DEVELOPING AND MANAGING OF SALES
PROMOTION PROGRAMS
 PROVIDE FOLLOWING SERVICES
 PROMOTIONAL PLANNING, CREATIVE RESEARCH, AND TIE-IN
COORDINATION
 FULFILLMENT
 PREMIUM DESIGN AND MANUFACTURING
 CATALOG PRODUCTION
 CONTEST/SWEEPSTAKES MANAGEMENT
32
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FUNCTIONS PERFORMED BY PUBLIC
RELATIONS FIRMS
Strategy
Generating
development
publicity
Public
affairs
News releases,
communication
Research
Managing
crisis
Special
events
Coordination
w/promotional
areas
Lobbying
33
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DIGITAL/INTERACTIVE AGENCIES
• SPECIALIZE IN THE DEVELOPMENT AND STRATEGIC USE OF
VARIOUS DIGITAL MARKETING TOOLS
• WEBSITES FOR THE INTERNET
• BANNER ADS
• SEARCH ENGINE OPTIMIZATION
• MOBILE MARKETING
• SOCIAL MEDIA CAMPAIGNS
34
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COLLATERAL SERVICES
Package design
Marketing research
Consultants
Photographers
Printers
Video production
Event marketing
35
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Education.


Long-term agency relationships

GE/BBDO Worldwide… 80 years

Marlboro/Leo Burnett… 56 years

McDonald’s/DDB Worldwide… 43 years

Kellog’s/Leo Burnett… 68 years
Loyalty to a single agency is becoming less
common
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Education.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.