Organizing

g
g for Advertising
g
and Promotion:

Participants in the IMC Process

Advertiser (Client)
Advertising Agency
Media
d Organizations
Marketing
a et g
Communications
Specialist
Organization
Collateral Services

Directt
Di
Response
Agencies
g

Sales
S
l
Promotion
Agencies
g

Public
Relations
Firms

Interactive
Agencies

Advertising Department Under

Centralized System
President

Production

Finance

Advertising

Marketing

Marketing
Research

Research
and
Development

Sales

Human
Resources

Product
Planning

Pros & Cons of Centralization

+ Positive

- Negative

Better
Communications

Less Goal
Involvement

Fewer
Personnel

Continuity
Of Staff

The
C t li d
Centralized
System

Longer
g
Response Time

Cant Do
Multiple Product
Lines

Pros & Cons of Decentralization

+ Positive

- Negative

Concentrated
Attention

Lack of
Experience
in IMC

Rapid
p Problem
Response

Increased
Flexibility

The
D
Decentralized
t li d
System

Competition
p
for
Resources

Lack of
Authority

Pros & Cons of In-House Agencies

+ Positive

- Negative

Cost
Savings

Less
Experience

More
Control

Better
Coordination

The
I h
In-house
Agency

Less
Objectivity

Less
Flexibility

Full-Services Agencies
Planning
advertising
Creating
advertising
P d i
Producing
advertising

Full Range of
Marketing
Communication
and Promotion
Services

Strategic market
planning
Sales promotion
and training
Trade show
materials

Performing
research
Selecting media

Package design

Non-Advertising
Services

Public relations
and publicity

Typical Full-Service Agency Organization

Board of
Directors
President
VP Creative
Services
W it
Writers
Art Directors

TV
Produciton

Traffic

Print
P
i t
Production

Traffic

VP Account
Services
Accountt
A
Supervision
Account
Executive

VP Management
and Finance

VP Marketing
Services
Media

Research

Sales
Promotion
Personnel

Office
Management
Accounting

Finance

Services Provided by Agencies

Agency Services
Account
S
Service
i
The li
Th
linkk between
b t
agency and client
Managed by the
A
Account
tE
Executive
ti

Marketing
S
Services
i
Researchh
R
department may
design and execute
research pprograms
g
Media department
may analyze, select
and contract media
resources

Creative
S
Services
i
Creation
C
ti andd
execution of ads
Copywriters,
artists,
ti t other
th
specialists

The Role of Creative Boutiques

Creative
Boutiques

Provide Only Creative Services

Full-Service Agencies May

Subcontract With Creative
Boutiques

Other Functions Provided by

the Internal Client Departments

Media Buying Can Be Specialized

Media
Buying
Services

Specialize in Buying Media,

Especially Broadcast Time

Agencies and Clients Develop

M di St
Media
Strategy
t

Media Buying Organizations

Implement the Strategy and
Buy Time and Space

Methods of Agency Compensation

Commissions
Method
Cost-Plus
Agreements

Compensation
Methods

Percentage
Charges
Fee
Arrangements
Incentive-Based
Incentive
Based
Payment

Why Agencies Lose Clients

Poor
performance
Unrealistic
demands

Personality
conflicts

Personnel
changes

Poor
communications
Changes
in size

Conflict of
interests

Changes
in strategy
Declining
sales
Payment
conflicts
Policy
changes