Lecture fundamentals of marketing - Lecture 21: IMC partners & industry organization

After studying this chapter you will be able to understand: Who are the IMC partners? How is the agency world organized? How do media partners fit in? Behind the message is the company (client)? How does the agency/client relationship work?

IMC Partners & Industry

Organization

LECTURE­21

Chapter Questions

 Who are the IMC partners?

 How is the agency world organized?

 How do media partners fit in?

 Behind the message is the company (client)

 How does the agency/client relationship work?

More Use of Other

Marketing Communications

Functions

More Use of Other

Marketing Communications

Functions

Marketing Communications Dominated by Advertising

Agencies

Marketing Communications Dominated by Advertising

Agencies

Chapter Perspective: Changing World

Willingness to consider other media to reach

consumers

Willingness to consider other media to reach

consumers

Focus on mass media

Opening Case: Phelps Group

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• “The Wall” of ideas

• Surveys of clients, suppliers, and employees

• “Wallbangers” and “BrainBanger’s Balls”

• “The Wall” of ideas

• Surveys of clients, suppliers, and employees

• “Wallbangers” and “BrainBanger’s Balls”

Get feedback for the agency’s work

• Recognized as a very creative agency

• Impressive client list: Petco, Whole Foods, Panasonic

• Recognized as a very creative agency

• Impressive client list: Petco, Whole Foods, Panasonic

Opening Case: Phelps Group

Challenge:

Answer:

Results:

Three Players in the Golden Triangle

IMC in Action: Mall of America

Promote Mall of America’s 10th

anniversary

Promote Mall of America’s 10th

anniversary

An IMC campaign featuring:

• The theme: “Celebrating a decade of fun”

• Effort to involve as many media partners as possible

An IMC campaign featuring:

• The theme: “Celebrating a decade of fun”

• Effort to involve as many media partners as possible

• USA Today front page story

• CBS Sunday Morning piece

• AP story carried by 30 newspapers

• USA Today front page story

• CBS Sunday Morning piece

• AP story carried by 30 newspapers

IMC In Action: Mall of America

Challenge:

Answer:

Results:

1st Part of Golden Triangle: The Agency

Public Relations

Public Relations Packaging

Direct Marketing

Direct Marketing

Advertising

Sales Promotion

Sales Promotion

Most Common Types of Agencies

Agencies

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, it’s important to look deeper: some of these agencies simply say they can

handle IMC but really don’t have the

organization or experience to adequately

address all the IMC functions

2nd Part of Golden Triangle: The Media

Media Depend on Outside Sources

To make a profit

Advertisers

Content To fill time and space:• TV and radio: programming

• Newspaper: news and features

To fill time and space:

• TV and radio: programming

• Newspaper: news and features

Disney Channel Logo

Disney Store Logo

Disney Store Logo World LogoWorld LogoDisney Disney

Fox Kids Logo ESPN LogoDisney Online

Ultimate form of integration: Disney

Media Integration

@ Disney

Media Integration

@ Disney

3rd Part of Golden Triangle: Companies

Two Types of Marketing Efforts

B2C B2B

Some Firms Do Both: Nike

Example of Centralized Control

Example of Decentralized Control

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Agency/Media/Company Compensation

Commission: A payment that

represents a percentage of a client’s total media spending

Cost of media advertising: Rs 5 million (100%) Amount agency bills to client: Rs 5 million (100%) Amount agency pays media Rs 4.25 million (85%) Amount agency keeps Rs 750,000 (15%)

Commission = Rs 750,000

IMC Planning Starts at Zero

Zero-based planning

A process that determines objectives

and strategies based on current brand

and marketplace

conditions

Tales From the Real World

In the real world, many organizations pay lip service to “zero-based” planning or ignore it

There’s only one problem: last year’s SWOTs may

no longer apply As a result, the new plan may be addressing old issues—and wasting marketing

dollars

Provides a Rational Process

Informs Everyone of Expectations

Informs Everyone of Expectations

Ensures That the Program Is Integrated

Ensures That the Program Is Integrated

Helps Identify Budget

Creates a Benchmark for

Helps Identify Budget

Reasons for IMC Planning

IMC Planning

Reasons

IMC Planning

Reasons

Department Plan:

• Marketing operations/

production, human resources

Department Plan:

• Marketing operations/

production, human resources

events and sponsorships, direct response

IMC plan:

• Advertising, publicity, sales promotion,

events and sponsorships, direct response

Where it Fits in the Organization

Insight: Cross-Functional IMC 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

Some basic principles for managing cross-functional teams:

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

by Philip Kotler, Kevin Lane Keller, Abraham Koshy &

Mithileshwar Jha, 13th Edition, Published by Pearson

Education, Inc

 Strategic Marketing Management – Meeting The

Global Marketing Challenges by Carol H Anderson &

Julian W Vincze Published by Houghton Mifflin Company

 Principles of Advertising & IMC by Tom Duncan 2nd

Edition, Published by McGraw-Hill Irwin

 Principles of Marketing by Philip Kotler & Gary Armstrong

Thirteenth Edition, Published by Prentice Hall

Bibliography

The End:

"Never worry about numbers Help one person at a time, and always start with the person nearest you."

- Mother Teresa