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Advertising World
Participants in the IMC Process Marketing Communications Specialist Organization Media Organizations Advertiser (Client) Advertising Agency Collateral Services Direct Response Agencies Sales Promotion Agencies Interactive Agencies Public Relations Firms
[object Object],[object Object],[object Object]
Consumer in the Real World Social class Geo-politics Rituals Family Values Reference Groups  (membership/aspiration)   Race   / Ethnicity Gender Culture Community Object Meaning
Factors Affecting Consumer Decision Making CONSUMER DECISIONS SUBCULTURES MEDIA NEWS MAGAZINES RADIO TELEVISION DIRECT MEDIA BLOGS INTERNET INFO NEEDS PRICE PACKAGING ADVERTISING PROMOTION PERSONAL SELLING MARKETER- CONTROLLED STIMULI EDUCATION VALUES   /   ATTITUDES PAST EXPERIENCE PERSONALITY PLEASURE GENDER CULTURE LIFE-STYLE SOCIAL CLASS REFERENCE GROUPS FAMILY SITUATIONAL FACTORS
[object Object]
Advertising Agency Agency –of-record (AoR)   ,[object Object],[object Object]
[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Why an advertising agency? ,[object Object],[object Object],[object Object],[object Object]
2  primary roles of agencies ,[object Object],[object Object]
Idea generation  Brand Building ,[object Object],[object Object]
Other Functions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Evolution of advertising agency ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
4 functions of an Ad Agency ,[object Object],[object Object],[object Object],[object Object]
Advertising Agency Organization ,[object Object],[object Object],Creative Services Account Management Media Services Research Services
creative department ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Advertising Agency Organization ,[object Object],[object Object],[object Object],Creative Services Account Management Media Services Research Services
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],media department Media Plan
Research Services ,[object Object],[object Object],Creative Services Account Management Media Services Research Services
[object Object],[object Object],[object Object],[object Object],research department Research Report
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],research department Research Report
Advertising Agency Organization ,[object Object],[object Object],Creative Services Account Management Media Services Research Services
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],account management
Classification of agencies On the  basis of  Services On the  basis of  organizational  set up Location  ( in or Outside) the  organization
Centralized System President Production Finance Marketing Research and Develop-ment Human Resources Advertising Marketing Research Sales Product Planning On the  basis of  organizational  set up
Pros & Cons of Centralization Better Communications Fewer Personnel Continuity Of Staff Less Goal Involvement Longer Response Time The Centralized System + Positive - Negative Fewer Personnel Better Communications Continuity Of Staff Longer Response Time Less Goal Involvement Can’t Do Multiple Product Lines
Decentralized Brand Management System Production Finance Sales Brand Manager Ad agency Brand Manager Ad agency Product Management Sales Promotion Package Design Merchandising Advertising Department Marketing Research Marketing Services Marketing Research and Development Human Resources Corporate
Pros & Cons of Decentralization Competition for Resources   Lack of Experience in IMC   Increased Flexibility Rapid Problem Response Concentrated Attention The Decentralized System + Positive - Negative Competition for Resources   Lack of Experience in IMC   Rapid Problem Response Concentrated Attention Increased Flexibility Lack of Authority
Roles of an Advertising Manager ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Classification of Agencies on the basis of Extent of their Services ,[object Object],[object Object],[object Object],[object Object],On the  basis of  Services
Full-Services Agencies Planning advertising Creating advertising Producing advertising Performing research Selecting media Strategic market planning Sales promotion and training Trade show materials Package design Full Range of Marketing Communication and Promotion Services Non-Advertising Services Creating advertising Planning advertising Producing advertising Performing research Selecting media Sales promotion and training Strategic market planning Trade show materials Package design Public relations and publicity
John Monsattal’s reasons for FSA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Full-service advertising agency ,[object Object],[object Object],[object Object],[object Object]
Limited Service Agencies
Ad Agencies Have Skilled Specialists Artists Writers Researchers Photographers Media Analysts Other Skills
The Role of Creative Boutiques   Creative Boutiques Provide Only Creative Services Full-Service Agencies May Subcontract With 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 Agencies and Clients Develop Media Strategy Specialize in Buying Media, Especially Broadcast Time Media Buying Services Specialize in Buying Media, Especially Broadcast Time Agencies and Clients Develop Media Strategy Media Buying Organizations Implement the Strategy and Buy Time and Space
Direct Response Agency Activities Creative Media Services Research Direct Mail Data Base Management Direct Response Agencies Direct Mail Data Base Management Research Creative Media Services Production
Activities performed by Sales Promotion Agencies   Contest/Sweepstakes Development Premium Design Coordination With Advertising Research   Creative Work Promotion Planning Contest/Sweepstakes Development Promotion Planning Creative Work Research Coordination With Advertising Premium Design Data Base Marketing
Functions performed by Interactive Agencies   Special Effects Video Audio Kiosks CD-ROMs Web Sites Web Banner Ads Interactive Media Creation Digital Content Audio Special Effects Video Web Banner Ads Kiosks Web Sites CD-ROMs Animation
Marketing Research Companies Planning and Implementing Research   Primary Data Collection Qualitative & Quantitative Analysis and Interpretation Information Application Planning and Implementing Research   Information Application Analysis and Interpretation Primary Data Collection Qualitative & Quantitative Secondary Data Collection
Functions performed by Public Relations Firms   Strategy Development Generating Publicity Lobbying Public Affairs Damage Control Image Portrayal Strategy Development Generating Publicity Lobbying Public Affairs Damage Control Image Portrayal Program Planning
Participants in the IMC Process Full service & Limited Service Ad Agencies Media Organizations Advertiser (Client) Advertising Agency Collateral Services Direct Response Agencies Sales Promotion Agencies Interactive Agencies Public Relations Firms
Collateral Services  offered by an advertising agency ,[object Object],[object Object]
In House Agencies ,[object Object],[object Object]
Pros & Cons of In-House Agencies Less Objectivity Less Experience Better Coordination More Control Cost Savings The In-house Agency + Positive - Negative More Control Cost Savings Better Coordination Less Objectivity Less Experience Less Flexibility
Selecting an agency ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Selecting an agency ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Selecting an agency ,[object Object],[object Object],[object Object],[object Object]
Methods of Agency Compensation Commissions Method Cost-Plus Agreements Percentage Charges Fee Arrangements Compensation Methods Commissions Method Cost-Plus Agreements Percentage Charges Fee Arrangements Incentive-Based Payment
Media Commission  Mark up/ Percentage charge ,[object Object],[object Object],[object Object],[object Object]
Fees   Incentive    based  compensation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Agencies Lose Clients Poor performance Poor communications Unrealistic demands Personality conflicts Personnel changes Conflict of interests Changes in strategy Declining sales Payment conflicts Poor performance Unrealistic demands Personality conflicts Personnel changes Conflict of interests Changes in strategy Declining sales Payment conflicts Policy changes
How Agencies Gain Clients Referrals Solicitations Presentations Public Relations Image, Reputation
Group Assignment ,[object Object],[object Object],[object Object],[object Object],[object Object]
Next Class ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Advertisement ad agencies cb_ ind mktg_

  • 2. Participants in the IMC Process Marketing Communications Specialist Organization Media Organizations Advertiser (Client) Advertising Agency Collateral Services Direct Response Agencies Sales Promotion Agencies Interactive Agencies Public Relations Firms
  • 3.
  • 4. Consumer in the Real World Social class Geo-politics Rituals Family Values Reference Groups (membership/aspiration) Race / Ethnicity Gender Culture Community Object Meaning
  • 5. Factors Affecting Consumer Decision Making CONSUMER DECISIONS SUBCULTURES MEDIA NEWS MAGAZINES RADIO TELEVISION DIRECT MEDIA BLOGS INTERNET INFO NEEDS PRICE PACKAGING ADVERTISING PROMOTION PERSONAL SELLING MARKETER- CONTROLLED STIMULI EDUCATION VALUES / ATTITUDES PAST EXPERIENCE PERSONALITY PLEASURE GENDER CULTURE LIFE-STYLE SOCIAL CLASS REFERENCE GROUPS FAMILY SITUATIONAL FACTORS
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. Classification of agencies On the basis of Services On the basis of organizational set up Location ( in or Outside) the organization
  • 26. Centralized System President Production Finance Marketing Research and Develop-ment Human Resources Advertising Marketing Research Sales Product Planning On the basis of organizational set up
  • 27. Pros & Cons of Centralization Better Communications Fewer Personnel Continuity Of Staff Less Goal Involvement Longer Response Time The Centralized System + Positive - Negative Fewer Personnel Better Communications Continuity Of Staff Longer Response Time Less Goal Involvement Can’t Do Multiple Product Lines
  • 28. Decentralized Brand Management System Production Finance Sales Brand Manager Ad agency Brand Manager Ad agency Product Management Sales Promotion Package Design Merchandising Advertising Department Marketing Research Marketing Services Marketing Research and Development Human Resources Corporate
  • 29. Pros & Cons of Decentralization Competition for Resources Lack of Experience in IMC Increased Flexibility Rapid Problem Response Concentrated Attention The Decentralized System + Positive - Negative Competition for Resources Lack of Experience in IMC Rapid Problem Response Concentrated Attention Increased Flexibility Lack of Authority
  • 30.
  • 31.
  • 32.
  • 33. Full-Services Agencies Planning advertising Creating advertising Producing advertising Performing research Selecting media Strategic market planning Sales promotion and training Trade show materials Package design Full Range of Marketing Communication and Promotion Services Non-Advertising Services Creating advertising Planning advertising Producing advertising Performing research Selecting media Sales promotion and training Strategic market planning Trade show materials Package design Public relations and publicity
  • 34.
  • 35.
  • 37. Ad Agencies Have Skilled Specialists Artists Writers Researchers Photographers Media Analysts Other Skills
  • 38. The Role of Creative Boutiques Creative Boutiques Provide Only Creative Services Full-Service Agencies May Subcontract With Creative Boutiques Provide Only Creative Services Full-Service Agencies May Subcontract With Creative Boutiques Other Functions Provided by the Internal Client Departments
  • 39. Media Buying Can Be Specialized Agencies and Clients Develop Media Strategy Specialize in Buying Media, Especially Broadcast Time Media Buying Services Specialize in Buying Media, Especially Broadcast Time Agencies and Clients Develop Media Strategy Media Buying Organizations Implement the Strategy and Buy Time and Space
  • 40. Direct Response Agency Activities Creative Media Services Research Direct Mail Data Base Management Direct Response Agencies Direct Mail Data Base Management Research Creative Media Services Production
  • 41. Activities performed by Sales Promotion Agencies Contest/Sweepstakes Development Premium Design Coordination With Advertising Research Creative Work Promotion Planning Contest/Sweepstakes Development Promotion Planning Creative Work Research Coordination With Advertising Premium Design Data Base Marketing
  • 42. Functions performed by Interactive Agencies Special Effects Video Audio Kiosks CD-ROMs Web Sites Web Banner Ads Interactive Media Creation Digital Content Audio Special Effects Video Web Banner Ads Kiosks Web Sites CD-ROMs Animation
  • 43. Marketing Research Companies Planning and Implementing Research Primary Data Collection Qualitative & Quantitative Analysis and Interpretation Information Application Planning and Implementing Research Information Application Analysis and Interpretation Primary Data Collection Qualitative & Quantitative Secondary Data Collection
  • 44. Functions performed by Public Relations Firms Strategy Development Generating Publicity Lobbying Public Affairs Damage Control Image Portrayal Strategy Development Generating Publicity Lobbying Public Affairs Damage Control Image Portrayal Program Planning
  • 45. Participants in the IMC Process Full service & Limited Service Ad Agencies Media Organizations Advertiser (Client) Advertising Agency Collateral Services Direct Response Agencies Sales Promotion Agencies Interactive Agencies Public Relations Firms
  • 46.
  • 47.
  • 48. Pros & Cons of In-House Agencies Less Objectivity Less Experience Better Coordination More Control Cost Savings The In-house Agency + Positive - Negative More Control Cost Savings Better Coordination Less Objectivity Less Experience Less Flexibility
  • 49.
  • 50.
  • 51.
  • 52. Methods of Agency Compensation Commissions Method Cost-Plus Agreements Percentage Charges Fee Arrangements Compensation Methods Commissions Method Cost-Plus Agreements Percentage Charges Fee Arrangements Incentive-Based Payment
  • 53.
  • 54.
  • 55. Why Agencies Lose Clients Poor performance Poor communications Unrealistic demands Personality conflicts Personnel changes Conflict of interests Changes in strategy Declining sales Payment conflicts Poor performance Unrealistic demands Personality conflicts Personnel changes Conflict of interests Changes in strategy Declining sales Payment conflicts Policy changes
  • 56. How Agencies Gain Clients Referrals Solicitations Presentations Public Relations Image, Reputation
  • 57.
  • 58.