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3-IMC Partners and Cross-Functional Organization.ppt

3-IMC Partners and Cross-Functional Organization.ppt






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    3-IMC Partners and Cross-Functional Organization.ppt 3-IMC Partners and Cross-Functional Organization.ppt Presentation Transcript

    • IMC Partners and Cross-Functional Organization
    • 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.
    • 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.
    • The Golden Triangle
    • 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 services
      • However:
      • 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.
    • The Bigger Picture of the Marketing Communication Players
    • 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).
    • Traditional Corporate Organization
    • Project-based Organization
    • 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 .
    • Cross-functional Planning 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.
    • Silos
    • 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 .
    • 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
    • Types of Agency Services
      • The 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 
    • Poppe Tyson
    • 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.
    • Media Buying Services
      • Media buying services specialize in buying time and space, that is, placing brand messages in the media.
    • 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
    • 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.
    • 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
    • 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
    • Other MC Agencies
      • Other MC agencies include:
      • Corporate identity agencies
      • Online Advertising Agencies
    • MC Suppliers
      • MC Suppliers are specialists who help MC agencies actually produce their work.
      • These suppliers include:
      • Creative boutiques
      • Freelancers
    • 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
    • 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
    • Agency Evaluation
      • Two 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.
    • 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
    • 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.