chapter objectives to understand how companies organize advertising and other aspects of imc....
TRANSCRIPT
Chapter Objectives
• To understand how companies organize advertising and other aspects of IMC.
• Understand the role and functions of specialized marketing communications organizations.
• Examine the use of advertisers, ad agencies, and integrated service providers.
Basic strategies
• Full service Ad agency
– Provide all the functions themselves
• In-house
– Client does it themselves (no agency)
• Mixed model
– Agency or client provides some function
– Other services provided by “subs”
The process
Here's the typical RFP process:
•Existing contract expires
•Client issues a brief (10-15 agencies)
•Agency completes a questionnaire
• [Conflict of interest issues]
•Client use a "scorecard" for finalists (3-5)
•Finalists given detailed brief and 1-2 weeks to plans
•Client provides a Q&A session for all agencies
•Agency “pitches” creative and media plans and fee proposal
•Client selects winner
TITLE
AVERAGE
SALARY
CEO $250,000
Creative director 150,000
Chief financial officer 100,000
Art director 50,000
Copywriter 40,000
Account executive 30,000
Media buyer 27,500
Assistant (starting) 25,000
Advertising Salaries
Typical Ad Agencies Specialists
ArtistsArtists WritersWriters ResearchersResearchers
PhotographersPhotographers Media AnalystsMedia Analysts Other SkillsOther Skills
Compensation strategies
1. Commission -- 15% [or less]– 8-10% on very large accounts
2. Fees– fixed prices on some items, – percentage on others
3. Cost-plus– actual costs [!] + percentage
4. Incentive-based– often performance [sales] based!
“Personalities”
• Even full service agencies have their own personalities and specialties….
• McCann-Erickson
• Fallon (McElligott)
• TBWA/Chiat Day
McCann-Erickson
“OLD RELIABLE”• CLIENTS:
– Exxon•90 years
– GM (Buick, Cadillac, Pontiac…)•70 years
– Coca-Cola•60 years
– Nestles•60 years
McCann-Erickson
McCann-Erickson
Fallon
Fallon
TBWA/Chiat Day
A “Hip” agency
– Based in Venice Beach CA and NY
Clients:
– Absolut vodka
– Apple Computer
– Nissan
– Sony Playstation
TBWA/Chiat Day
TBWA/Chiat Day
Services Provided By Agencies
Agency ServicesAgency Services
The link between agency and client
Managed by the Account Executive
The link between agency and client
Managed by the Account Executive
Design and execution of research programs
Media department analyzes, selects and contracts media resources
Design and execution of research programs
Media department analyzes, selects and contracts media resources
Creation and execution of ads
Copywriters, artists, other specialists
Creation and execution of ads
Copywriters, artists, other specialists
Marketing Services
Marketing Services
Account Service
Account Service
Creative ServicesCreative Services
Marketing Services
Marketing Services
Account Service
Account Service
The Role of Creative Boutiques
CreativeBoutiquesCreative
Boutiques Provide Only Creative ServicesProvide Only Creative Services
Full-Service Agencies May Subcontract With Creative
Boutiques
Full-Service Agencies May Subcontract With Creative
Boutiques
Provide Only Creative ServicesProvide Only Creative Services
Full-Service Agencies May Subcontract With Creative
Boutiques
Full-Service Agencies May Subcontract With Creative
Boutiques
Other Functions Provided by the Internal Client Departments
Other Functions Provided by the Internal Client Departments
Media Buying Can Be Specialized
Specialize in Buying Media, Especially Broadcast Time
Specialize in Buying Media, Especially Broadcast Time
Agencies and Clients Develop Media Strategy
Agencies and Clients Develop Media Strategy
Agencies and Clients Develop Media Strategy
Agencies and Clients Develop Media Strategy
Specialize in Buying Media, Especially Broadcast Time
Specialize in Buying Media, Especially Broadcast Time
Media Buying
Services
Media Buying
Services
Media Buying Organizations Implement the Strategy and
Buy Time and Space
Media Buying Organizations Implement the Strategy and
Buy Time and Space
Integrated Marketing Communications
Companies must decide whether to use a different organization for each marketing communications function or consolidate them with a large advertising agency that offers all of these services under one roof.
Companies must decide whether to use a different organization for each marketing communications function or consolidate them with a large advertising agency that offers all of these services under one roof.
Specialized Services
• Direct-response agencies
• Sales promotion agencies
• Public relations firms
• “e-commerce” companies
Sales Promotion Agencies
Contest/Sweepstakes Development
Contest/Sweepstakes Development
Contest/Sweepstakes Development
Contest/Sweepstakes Development
Promotion PlanningPromotion Planning
Creative WorkCreative Work
ResearchResearch
Coordination With Advertising
Coordination With Advertising
Premium DesignPremium DesignPremium DesignPremium Design
Coordination With Advertising
Coordination With Advertising
Research Research
Creative WorkCreative Work
Promotion PlanningPromotion Planning
Data Base MarketingData Base Marketing
Functions of Public Relations Firms
StrategyDevelopment
GeneratingPublicity
Lobbying
PublicAffairs
DamageControl
ImagePortrayal
StrategyDevelopment
GeneratingPublicity
Lobbying
PublicAffairs
DamageControl
ImagePortrayal
ProgramPlanning