3-IMC Partners and Cross-Functional Organization.ppt


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3-IMC Partners and Cross-Functional Organization.ppt

  1. 1. IMC Partners and Cross-Functional Organization
  2. 2. Organizational Perspective <ul><li>Organization is the Foundation of IMC </li></ul><ul><li>Since there are so many partners involved in managing brand relationships, integration is an organizational challenge. </li></ul><ul><li>IMC often involves organizational restructuring. </li></ul><ul><li>A company cannot build relationships externally until it builds them internally. </li></ul>
  3. 3. Overview of the Marketing Communication Business <ul><li>Basic players in today’s marketplace: </li></ul><ul><ul><li>Organizations </li></ul></ul><ul><ul><li>Media </li></ul></ul><ul><ul><li>Agencies </li></ul></ul><ul><li>This creates a “golden triangle,” where customers are at the center of the planning. </li></ul>
  4. 4. The Golden Triangle
  5. 5. Key Points About the Triangle <ul><li>Organization within the triangle can exist only if there are: </li></ul><ul><li>Media to deliver brand messages </li></ul><ul><li>Customers to buy goods and services </li></ul><ul><li>However: </li></ul><ul><li>Media can exist only if they sell enough advertising. </li></ul><ul><li>Customers must have knowledge of the products they need or want in order to buy. </li></ul><ul><li>As companies grow, the triangle becomes more complex. </li></ul>
  6. 6. The Bigger Picture of the Marketing Communication Players
  7. 7. The Corporate Side <ul><li>Both for-profit and not-for-profit organizations are businesses with customers and other stakeholders with whom they communicate and build relationships. </li></ul><ul><li>Departments within businesses are often job specific. </li></ul><ul><li>Divisions are usually organized by product, market, or geography. </li></ul><ul><li>The more departments and divisions, the harder it is to coordinate marketing objectives, strategies, and brand messages. </li></ul><ul><li>A single product line may be a strategic business unit (SBU). </li></ul>
  8. 8. Traditional Corporate Organization
  9. 9. Project-based Organization
  10. 10. Roles and Positions <ul><li>In larger companies, where there are multiple brands or product offerings, there may be specific brand managers or product managers . </li></ul><ul><li>Frequently there is tension between sales and marketing. </li></ul><ul><li>Larger companies often have a separate department to handle the marketing communication responsibilities, which is often known as marketing services . </li></ul>
  11. 11. Cross-functional Planning and Management <ul><li>A basic principle of IMC: Critical processes that affect customer relationships involve more than one department. </li></ul><ul><li>Cross-functional planning involves many departments and functions. </li></ul><ul><li>Benefit of the cross-functional IMC team is to: </li></ul><ul><li>Ensure consistency in all brand messages. </li></ul><ul><li>Make sure the big creative idea is integrated in all messages. </li></ul><ul><li>Coordinate the timing and scheduling of the various MC programs. </li></ul><ul><li>Help employees become less myopic. </li></ul><ul><li>Primary purpose: To improve internal communication. </li></ul>
  12. 12. Silos
  13. 13. Cross-functional and IMC Teams <ul><li>Basic IMC principles for managing cross-functional teams: </li></ul><ul><li>Long-term focus . </li></ul><ul><li>Constant contact . </li></ul><ul><li>Work space . </li></ul><ul><li>Support from the top . </li></ul><ul><li>Compensation . </li></ul>
  14. 14. Agency Partners <ul><li>In general, the larger the marketing communications budget, the more marketing communication agencies a company will hire. </li></ul><ul><li>  There are many different types of MC specialist agencies. Most common specialize in: </li></ul><ul><li>Advertising </li></ul><ul><li>Public Relations </li></ul><ul><li>Direct Marketing </li></ul><ul><li>Sales Promotion </li></ul><ul><li>Packaging/Corporate Identity </li></ul>
  15. 15. Types of Agency Services <ul><li>The single largest number and type of MC agencies are advertising agencies. </li></ul><ul><li>A full-service agency provides all or most of the services needed in its area of specialization.  </li></ul><ul><li>Key people within an advertising agency include: </li></ul><ul><li>Account managers </li></ul><ul><li>Copywriters </li></ul><ul><li>Art directors </li></ul><ul><li>Creative directors </li></ul><ul><li>Producers </li></ul><ul><li>Traffic managers </li></ul><ul><li>Account planners  </li></ul>
  16. 16. Poppe Tyson
  17. 17. Agency Networks <ul><li>Within the MC industry there have been many mergers and acquisitions, which have resulted in large networks or conglomerates of MC agencies. </li></ul><ul><li>A second type of agency network consists of independent agencies that affiliate in order to share resources and offer services on an international level. </li></ul>
  18. 18. Media Buying Services <ul><li>Media buying services specialize in buying time and space, that is, placing brand messages in the media. </li></ul>
  19. 19. How Agencies Specialize <ul><li>Many companies hire MC agencies that specialize in an industry or product category. </li></ul><ul><li>Different types of specialty agencies include: </li></ul><ul><li>Business-to-Business Specialists </li></ul><ul><li>Ethnic Agencies </li></ul><ul><li>High-Tech Agencies </li></ul><ul><li>IMC Agencies </li></ul><ul><li>In-House Agencies </li></ul>
  20. 20. Public Relation Firms <ul><li>Like advertising, public relation firms may also specialize in certain industries. </li></ul><ul><li>Main function of public relations firm is to counsel companies on how to better manage their relationships with their stakeholders. </li></ul><ul><li>Unlike advertising agencies, most public relation firms do not have a creative or media department. </li></ul><ul><li>One of the most valuable attributes a public relations firm can have is a good relationship with the press. </li></ul>
  21. 21. Direct-response Agencies <ul><li>Direct-response agencies are structured like advertising agencies. They deal with not only the mass media, but also mail, email and telemarketing services. </li></ul><ul><li>Some agencies may also have specialists who analyze and rent databases. </li></ul><ul><li>Support services include: </li></ul><ul><li>Data shops </li></ul><ul><li>List Brokers </li></ul><ul><li>Printers </li></ul><ul><li>Letter shops </li></ul><ul><li>Creative services </li></ul>
  22. 22. Sales Promotion Agencies <ul><li>Companies that do a lot of promotions, such as premium offers, sweepstakes, in-store special displays, etc. use sales promotion agencies . </li></ul><ul><li>These agencies are made up of three groups: </li></ul><ul><li>Account service managers </li></ul><ul><li>Creatives </li></ul><ul><li>Production people </li></ul>
  23. 23. Other MC Agencies <ul><li>Other MC agencies include: </li></ul><ul><li>Corporate identity agencies </li></ul><ul><li>Online Advertising Agencies </li></ul>
  24. 24. MC Suppliers <ul><li>MC Suppliers are specialists who help MC agencies actually produce their work. </li></ul><ul><li>These suppliers include: </li></ul><ul><li>Creative boutiques </li></ul><ul><li>Freelancers </li></ul>
  25. 25. Agency Approaches to IMC <ul><li>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. </li></ul><ul><li>Agencies have traditionally been reluctant to integrate other MC agencies into cross-functional planning. </li></ul><ul><li>Three ways agencies can organize themselves to offer integrated services: </li></ul><ul><li>Add-on Functions </li></ul><ul><li>Reinvention </li></ul><ul><li>Lead Agency </li></ul>
  26. 26. Agency Compensation <ul><li>Methods of payment vary by types of MC agency and by individual clients. </li></ul><ul><li>Methods include: </li></ul><ul><li>Commission </li></ul><ul><li>Fee or Retainer </li></ul><ul><li>Markups </li></ul><ul><li>Performance-based compensation </li></ul>
  27. 27. Agency Evaluation <ul><li>Two basic types of evaluations: </li></ul><ul><li>Quantitative audits—records for billings, etc. </li></ul><ul><li>Qualitative surveys—responsiveness, thoroughness, meeting deadlines, etc. </li></ul><ul><li>Evaluations are beneficial for several reasons: </li></ul><ul><li>Company can determine if it is getting its money’s worth </li></ul><ul><li>Agency gets valuable feedback </li></ul><ul><li>Agency and company can determine how to work better together. </li></ul>
  28. 28. Media Partners <ul><li>Media partners are an essential set of partners. </li></ul><ul><li>There have been several changes in the media and in how companies work with agencies and their clients: </li></ul><ul><li>New communication technologies </li></ul><ul><li>Increase in media alternatives </li></ul><ul><li>Media companies recognize how they can add value to their delivery systems by expanding their audience information </li></ul><ul><li>Large media conglomerates </li></ul><ul><li>More fragmentation </li></ul>
  29. 29. The Agency/Client Relationship <ul><li>The agency/client relationship is critical to the successful functional of an IMC program. </li></ul><ul><li>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. </li></ul><ul><li>A client’s attitude toward its agency – how it sees its agency – often determines the level of trust and respect. </li></ul>