1. MRP/IMC/M1
1

2. Development and implementation of IMC program is a complex
process.
It requires the skills and efforts of many people and several
specialized organizations/agencies.
Which are the participants in the IMC process..?
MRP/IMC/M1
2

3. Participants in the IMC process
Advertiser
(client)
Advertising
Agency
Media
Organizations
Marketing
Communication
Specialist
Organizations:
Collateral
Services
-Direct response
agencies
-Sales promotion
agencies
-Interactive
agencies
-PR firms
MRP/IMC/M1
3

4. Advertising Agency
It is an outside firm that specializes in the creation, production and
placement of communications message and that may provide
other services to facilitate the marketing and promotions process.
Example : Adone advertiser from kharachi. Nomi group, AD Delta
agency
MRP/IMC/M1
4

5. Media Organizations
Primary objective is to provide information or entertainment to their
subscribers, viewers or readers. Eg. TV channels, print media,
radio etc are some of the media organizations.
A mediums primary objective is to sell itself as a way for
companies to reach their target markets with their message
effectively.
MRP/IMC/M1
5

6. Specialized MARCOM services
They include:
Direct marketing agencies – develops direct marketing programs
Sales promotion agencies – develop contests, sweepstakes, premium
offers etc.
Interactive agencies – use of websites, internet
Public relations firms – communication and relationships with relevant
publics
MRP/IMC/M1
6

7. Collateral Services
They include:
Marketing research company, package design firms, consultants,
photographers, event marketing companies.
MRP/IMC/M1
7

8. Client side: Organization structure for promotion:
Centralized system
Decentralized system
In-house agency
MRP/IMC/M1
8

9. Centralized system
CEO
Production
FInance
Marketing
R&D
Human
Resources
Marketing Research
Advertising
Advertising
Manager
Sales
Product Planning
MRP/IMC/M1
9

10. In such a system, the basic functions of the advertising manager
are as follows:
1. Planning and Budgeting
2. Administration and execution
3. Coordination with other departments – market research, sales dept
4. Coordination with outside agencies and services
MRP/IMC/M1
10

11. Decentralized system
Production
FInance
Marketing Services
Advertising
Department
Marketing
Research
CEO
Marketing
R&D
Product Management
Human
Resources
Sales
Product/brand
Manager
Brand Manager
Ad agency
Product
Manager
Brand Manager
Ad agency
Product
Manager
Brand Manager
Ad agency
MRP/IMC/M1
11

12. In-house agencies
It is an advertising agency that is set up, owned, and operated by
the advertiser.
Sometimes they are little more than advertising departments only.
They result in cost saving, time saving and are better controlled by
the management.
Eg. Calvin Klein, The Gap, Benetton
MRP/IMC/M1
12

13. Organizational
System
Advantages
Disadvantages
Centralized
- Fewer persons
- More top-mgmt
involvement
- Longer response time
- Cannot handle multiple
product lines
Decentralized
- Rapid response
to problems
- Increased flexibility
- Ineffective decision
making
- Internal conflicts
In-house agency
- Cost savings
- More control
- Less experience
- Less objectivity
MRP/IMC/M1
13

14. The Ad agency’s role in IMC
Reasons for using an agency:
-Services
of highly skilled individuals who are specialists in their chosen
fields.
-
Industry specific offerings of agencies
-An
outside agency can provide an objective viewpoint of the market and
is not subject to internal company policies, biases or other limitations
-It
can draw on the broad range of experience
MRP/IMC/M1
14

15. Types of Ad agencies:
-Full
service agencies
-Creative
-Media
boutiques
buying services
MRP/IMC/M1
15

16. Planning
Planning
advertising
advertising
Creating
Creating
advertising
advertising
Producing
Producing
advertising
advertising
Full range of
Full range of
marketing
marketing
communication
communication
and promotion
and promotion
services
services
Performing
Performing
research
research
Selecting media
Selecting media
Interactive
Interactive
capabilities
capabilities
Strategic market
Strategic market
planning
planning
Sales
Sales
promotions
promotions
Direct
Direct
marketing
marketing
Nonadvertising
Nonadvertising
services
services
Package design
Package design
Public relations
Public relations
and publicity
and publicity
MRP/IMC/M1
16

17. Creative services
-Creation
and execution of advertisements
-Copywriters
write the message and art department takes care of how the
ad looks
-For
TV ads, the layout is known as a storyboard
-Once
the copy, layout, illustrations have been completed, the ad is
turned over to the production department
-Printers,
-A
photographers, typographers are hired to produce the ad
traffic department coordinates the phases of production
MRP/IMC/M1
17

18. Account services
-This
is the link between the ad agency and its clients
-The
account executive is responsible for understanding the
advertiser’s marketing and promotions needs and interpreting
them to the agency personnel
MRP/IMC/M1
18

19. Marketing Services
-It
includes a marketing research department to gather, analyze
and interpret information
-The
media department analyzes, selects and contracts for space
or time in the media
MRP/IMC/M1
19

20. Management and Finance
-The
ad agency must be managed and perform basic operating
and administrative functions such as accounting, finance and
human resources.
-Large
agencies employ administrative, managerial and clerical
people to perform these functions.
-Almost
64% of an agencies income goes to salary and benefits for
its employees
MRP/IMC/M1
20

21. Board of
directors
President
VP creative
services
VP account
services
Print
production
Writers
Art directors
TV
production
Traffic
VP marketing
services
Media
Account
supervision
VP management
and finance
Sales
Promotion
Research
Office
management
Account
Executive
Finance
Accounting
Personnel
MRP/IMC/M1
21

22. Creative Boutiques
It is an agency that provides only creative services.
Full service agencies often subcontract work to creative boutiques
when they are very busy or because its own employees do not
have sufficient skills.
MRP/IMC/M1
22

23. Media buying services
They are independent companies that specialize in the buying of
media time. Eg. Radio and television time
Since they purchase large amounts of time and space, they
receive large discounts and can save the small agency or client
money on media purchases.
MRP/IMC/M1
23

24. How agencies gain clients?
Through referrals – from existing clients, media and even other agencies
Business Development
Solicitations – seeks and establish contact with new clients
Presentations – give a speculative presentation for prospective clients
Public relations – participation in events, work with charitable organizations or
just engage in mass media publicity
Image and reputation – developed over the years working with big clients
MRP/IMC/M1
24

25. Referrals
Referrals
Presentations
Presentations
Solicitations
Solicitations
Public Relations
Public Relations
Image, Reputation
Image, Reputation
MRP/IMC/M1
25

26. Poor
performance
Declining
sales
Personnel
changes
Poor
communications
Payment
conflicts
Changes
in size of client
or agency
Unrealistic
Client demands
Personality
conflicts
Conflicts of
Interest –
competition
Policy Changes
Change in
client’s strategy
MRP/IMC/M1
26

27. Specialized Services
Database
Database
management
management
DirectDirectMarketing
Marketing
Agencies
Agencies
Media services
Media services
Direct
Direct
mail
mail
Research
Research
Creative
Creative
Database
Database
development,
development,
management
management
Production
Production
MRP/IMC/M1
27

28. Sales Promotion Agency
Promotional planning
Promotional planning
Creative research
Creative research
Tie-in coordination
Tie-in coordination
Fulfillment
Fulfillment
Premium design and
Premium design and
manufacturing
manufacturing
Catalog production
Catalog production
Contest/sweepstakes
Contest/sweepstakes
management
management
MRP/IMC/M1
28

29. PR Firms
Strategy
development
Generating
publicity
Lobbying
Public
affairs
Special events
News releases,
communication
Managing
crises
Research
Coordination
with promotional
areas
MRP/IMC/M1
29

30. Interactive Media Services
Web
Web
banner ads
banner ads
Web sites
Web sites
CD-ROMs
CD-ROMs
Interactive
Interactive
Media Creation
Media Creation
Kiosks
Kiosks
Text messages
Text messages
Search engine
Search engine
optimization
optimization
MRP/IMC/M1
30

31. Collateral Services – Marketing Research Company
Help clients underHelp clients understand target
stand target
audience
audience
Qualitative research
Qualitative research
Quantitative studies
Quantitative studies
MRP/IMC/M1
31

32. MRP/IMC/M1
32