IMC Partners & Industry Organization

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?

Chapter Outline

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

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

Old WorldOld World New WorldNew World

Willingness to consider other media to reach

consumers

Willingness to consider other media to reach

consumersFocus on mass mediaFocus on mass mediaFocus on mass mediaFocus 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 workGet feedback for the agency’s work

• “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 workGet 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:Challenge:

Answer:Answer:

Results:Results:

Three Players in the Golden Triangle

IMC in Action: Mall of America

Promote Mall of America’s 10th anniversaryPromote 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

Promote Mall of America’s 10th anniversaryPromote 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:Challenge:

Answer:Answer:

Results:Results:

1st Part of Golden Triangle: The Agency

Relationship Marketing

Relationship Marketing

EventsEvents

IMCIMC

AdvertisingAdvertising Direct Marketing

Direct Marketing

Public Relations

Public Relations PackagingPackaging

Relationship Marketing

Relationship Marketing

Public Relations

Public Relations PackagingPackaging

IMCIMC

EventsEvents

Direct Marketing

Direct MarketingAdvertisingAdvertising

Sales Promotion

Sales Promotion

Most Common Types of Agencies

AgenciesAgencies

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

Think About It

AgenciesNow that you have learned about different

types of agencies, at which would you prefer to work?

AgenciesNow that you have learned about different

types of agencies, at which would you prefer to work?

2nd Part of Golden Triangle: The Media

Media Depend on Outside Sources

To make a profitTo make a profitAdvertisersAdvertisers

ContentContentTo 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

To make a profitTo make a profitAdvertisersAdvertisers

Touchstone Pictures LogoTouchstone

Pictures Logo

ABC LogoABC Logo

Disney Channel Logo

Disney Channel Logo

Disney Store Logo

Disney Store Logo

Disney World Logo

Disney World Logo

Fox Kids LogoFox Kids Logo ESPN LogoESPN Logo

Disney OnlineDisney Online

Ultimate form of integration: Disney

MediaIntegration@ Disney

MediaIntegration@ Disney

3rd Part of Golden Triangle: Companies

Two Types of Marketing Efforts

B2CB2C

B2BB2B

Some Firms Do Both: Nike

B2BB2B

Nike’s Relationship with shoe retailers like Foot Locker

B2CB2C

Niketown stores selling shoes directly to consumers

Figure 2-3: Example of Centralized Control

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Figure 2-4: Example of Decentralized Control

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IMC In Action: Selling America

Charlotte Beers Ogilvey & Mather and J. Walter Thompson

An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle

East colleges• Radio Sawa, an Arab-language

version of Voice of America

An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle

East colleges• Radio Sawa, an Arab-language

version of Voice of America

Improve America’s image after 9/11Improve America’s image after 9/11Improve America’s image after 9/11Improve America’s image after 9/11

An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle

Eastern colleges• Radio Sawa, an Arab-language

version of Voice of America

An IMC program featuring: • Booklet produced in 14 languages• Program to teach English in Middle

Eastern colleges• Radio Sawa, an Arab-language

version of Voice of America

Too early to tellToo early to tell

IMC in Action: Selling America

Challenge:Challenge:

Answer:Answer:

Results:Results:

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/-

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

Bibliography

Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin.

Event Management For Tourism, Cultural, Business and Sporting Events by Lynn Van Der Wagen Brenda R. Carlos Published by Pearson Prentice Hall.

Advertising Principles and Practice by W. Wells, S. Moriarty and J. Burnett, Published by Prentice Hall International.

Integrated Marketing Communications by David Pickton & Amanda Broderick Published by Prentice Hall.

The End:

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

with the person nearest you." - Mother Teresa