IMC Partners & Industry Organization

Changing World
Old World
Marketing Communications Dominated by Advertising Agencies

New World
More Use of Other Marketing Communications Functions

Focus on mass media

Willingness to consider other media to reach consumers

Three Players in the Golden Triangle

1st Part of Golden Triangle: The Agency

Most Common Types of Agencies

Advertising Sales Promotion Direct Marketing Events

Agencies
Relationship Marketing Public Relations Packaging IMC

Tales From the Real World

In an attempt to attract new clients, some ad agencies have jumped on the IMC bandwagon and now position themselves as IMC agencies.
In the real world, its important to look deeper: some of these agencies simply say they can handle IMC but really dont have the organization or experience to adequately address all the IMC functions

Think About It

Agencies
Now that you have learned about different types of agencies, at which would you prefer to work?

2nd Part of Golden Triangle: The Media

Media Depend on Outside Sources

Advertisers

To make a profit

Content

To fill time and space: TV and radio: programming Newspaper: news and features

3rd Part of Golden Triangle: Companies

Two Types of Marketing Efforts

B2B

B2C

Some Firms Do Both: Nike

B2B

Nikes Relationship with shoe retailers like Foot Locker

B2C

Niketown stores selling shoes directly to consumers

Example of Centralized Control

Example of Decentralized Control

Agency/Media/Company Compensation

Commission: A payment that represents a percentage of a clients total media spending

Cost of media advertising: Amount agency bills to client: Amount agency pays media Amount agency keeps 50 Lacs 50 Lacs 42,50,000 750,000 (100%) (100%) (85%) (15%)

Commission = Rs. 750,000

Insight: Cross-Functional IMC Teams

Some basic principles for managing cross-functional teams: Long-term focus: Keep team members in place for an extended period rather than assembling them for ad hoc projects Constant contact: Frequent meetings are important; however, members can also keep in constant contact via email Work space: Assigning a cross-functional team its own work space helps keep team members informed Support from the top: Top management must support the idea of cross-functional planning by providing adequate resources

Final Note:

IMC is driving the need for closer agency-client relationships

Fallout: some marketers are consolidating their relationships with fewer agencies IBM cut 70 agencies from its $500 million account