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IMC Partners and Cross-Functional Organization

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Organizational Perspective

Organization is the Foundation of IMC

Since there are so many partners involved in managing brand relationships, integration is an organizational challenge.

IMC often involves organizational restructuring.

A company cannot build relationships externally until it builds them internally.

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Overview of the Marketing Communication Business

Basic players in today’s marketplace: Organizations Media Agencies

This creates a “golden triangle,” where customers are at the center of the planning.

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The Golden Triangle

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Key Points About the Triangle

Organization within the triangle can exist only if there are:

Media to deliver brand messages Customers to buy goods and servicesHowever: Media can exist only if they sell enough advertising. Customers must have knowledge of the products

they need or want in order to buy.

As companies grow, the triangle becomes more complex.

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The Bigger Picture of theMarketing Communication Players

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The Corporate Side

Both for-profit and not-for-profit organizations are businesses with customers and other stakeholders with whom they communicate and build relationships.

Departments within businesses are often job specific. Divisions are usually organized by product, market, or

geography. The more departments and divisions, the harder it is

to coordinate marketing objectives, strategies, and brand messages.

A single product line may be a strategic business unit (SBU).

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Traditional Corporate Organization

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Project-based Organization

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Roles and Positions

In larger companies, where there are multiple brands or product offerings, there may be specific brand managers or product managers.

Frequently there is tension between sales and marketing.

Larger companies often have a separate department to handle the marketing communication responsibilities, which is often known as marketing services.

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Cross-functionalPlanning and Management

A basic principle of IMC: Critical processes that affect customer relationships involve more than one department.

Cross-functional planning involves many departments and functions.

Benefit of the cross-functional IMC team is to: Ensure consistency in all brand messages. Make sure the big creative idea is integrated in all

messages. Coordinate the timing and scheduling of the various MC

programs. Help employees become less myopic.

Primary purpose: To improve internal communication.

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Silos

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Cross-functional and IMC Teams

Basic IMC principles for managing cross-functional teams:

Long-term focus. Constant contact. Work space. Support from the top. Compensation.

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Agency Partners

In general, the larger the marketing communications budget, the more marketing communication agencies a company will hire.

 There are many different types of MC specialist agencies. Most common specialize in:

Advertising Public Relations Direct Marketing Sales Promotion Packaging/Corporate Identity

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Types of Agency ServicesThe single largest number and type of MC agencies are

advertising agencies.A full-service agency provides all or most of the

services needed in its area of specialization. Key people within an advertising agency include: Account managers Copywriters Art directors Creative directors Producers Traffic managers Account planners 

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Poppe Tyson

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Agency Networks

Within the MC industry there have been many mergers and acquisitions, which have resulted in large networks or conglomerates of MC agencies.

A second type of agency network consists of independent agencies that affiliate in order to share resources and offer services on an international level.

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Media Buying Services

Media buying services specialize in buying time and space, that is, placing brand messages in the media.

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How Agencies Specialize

Many companies hire MC agencies that specialize in an industry or product category.

Different types of specialty agencies include: Business-to-Business Specialists Ethnic Agencies High-Tech Agencies IMC Agencies In-House Agencies

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Public Relation Firms

Like advertising, public relation firms may also specialize in certain industries.

Main function of public relations firm is to counsel companies on how to better manage their relationships with their stakeholders.

Unlike advertising agencies, most public relation firms do not have a creative or media department.

One of the most valuable attributes a public relations firm can have is a good relationship with the press.

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Direct-response Agencies

Direct-response agencies are structured like advertising agencies. They deal with not only the mass media, but also mail, email and telemarketing services.

Some agencies may also have specialists who analyze and rent databases.

Support services include: Data shops List Brokers Printers Letter shops Creative services

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Sales Promotion Agencies

Companies that do a lot of promotions, such as premium offers, sweepstakes, in-store special displays, etc. use sales promotion agencies.

These agencies are made up of three groups: Account service managers Creatives Production people

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Other MC Agencies

Other MC agencies include: Corporate identity agencies Online Advertising Agencies

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MC Suppliers

MC Suppliers are specialists who help MC agencies actually produce their work.

These suppliers include: Creative boutiques Freelancers

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Agency Approaches to IMC

The creative, media, research and client service people within an agency do not always work on the same accounts and are usually located physically away from each other.

Agencies have traditionally been reluctant to integrate other MC agencies into cross-functional planning.

Three ways agencies can organize themselves to offer integrated services:

Add-on Functions Reinvention Lead Agency

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Agency Compensation

Methods of payment vary by types of MC agency and by individual clients.

Methods include: Commission Fee or Retainer Markups Performance-based compensation

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Agency EvaluationTwo basic types of evaluations: Quantitative audits—records for billings, etc. Qualitative surveys—responsiveness,

thoroughness, meeting deadlines, etc.Evaluations are beneficial for several reasons: Company can determine if it is getting its

money’s worth Agency gets valuable feedback Agency and company can determine how to

work better together.

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Media Partners

Media partners are an essential set of partners.There have been several changes in the media and in

how companies work with agencies and their clients: New communication technologies Increase in media alternatives Media companies recognize how they can add value

to their delivery systems by expanding their audience information

Large media conglomerates More fragmentation

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The Agency/Client Relationship

The agency/client relationship is critical to the successful functional of an IMC program.

Client trust can significantly affect the quality of its agency’s work, the smoothness of the working relationship, and the effectiveness of an IMC program.

A client’s attitude toward its agency – how it sees its agency – often determines the level of trust and respect.