Objective of the Study3RelatedObjectives1. Deepenunderstanding of how& in what areas IMC isdeveloping in U.S.2. Examine extent towhich major U.S.advertising agencyexecutives aredeveloping, practicing,or utilizing IMC forclients3. Understandimportance & value oftraditional advertisingagencies where IMC isbecoming moreimportant
Preview of the FindingThis paper reviews the development of the concept ofIMC in terms of its theoretical foundations through anexploratory study of IMC within a judgment sample ofU.S. advertising agencies (total estimated billings-$20.4billion). It considers the arguments advanced from bothacademic & practitioner sides in relation to what IMC is& whether it offers significant value to advertisingagencies & their clients in the rapidly changingcommunications market space leading toward the nextmillennium.
Major Area of Findings1. Who responded?2. Amount of time devoted to client IMC programs3. How agencies are compensated for IMC4. IMC impact on budgets5. Are there barriers to IMC implementation?6. Reactions of IMC Definition7. Perceived Barriers to IMC Programs8. IMC & Measurement.9. Internal Beliefs and Considerations about IMC10. Perceived Interaction among Different CommunicationAgencies11. IMC measurement Issues12. Marketing Communication Criteria
Amount of TimeDevoted to IMC AgencyAgencySizeAmount of TimeDevotedTotalNumber% of That AgencySizeSmall Under 10%10% - 49%50% - over 75%8204111.5928.9959.42Total 69 100.00Medium Under 10%10% - 49%50% - over 75%112114.1750.0045.83Total 24 100.00Large Under 10%10% - 49%50% - over 75%4141014.2950.0035.72Total 28 100.00
Client Budget Changesin 1996ClientBudgetWillNo. for AllClients% of TotalAgenciesNo. for theIntegratedClients% of TotalAgenciesIncrease 92 73.0 84 66.6Remain thesame25 19.8 32 25.4Decrease 4 3.1 5 4.0
CompensationSystemMode ofCompensationNumber of AgenciesFull Commission 47Reduced Commission 32Fee 82Project Basis 51Mix of Commission & Fee 77
Barriersto IMC Implementation IMC programs at one agency help bring client SBUs together Require client staff to be more generalist IMC means client staff have to develop new . Skills Clients decide the “what” & “how” of IMC programs Client centralization difficulties Client staffs lack expertise Goes against client’s corporate culture Over dependence on single supplier implies additional staff to manage programs modification difficulties Increased cost Integrated agencies do not have talents in all areas Organizational structures constrain IMC development.
Success Issue of IMCA successful IMC program is developed by the combination ofthe internal & external belief of the organization. IMC Company& the client have to work with hand in hand to solve issue. AnIMC plan success depends on the several issues likeControl of the IMC CompanyBudgeting of the clientsSolution pattern &Effective measurement strategy of the organizationOne of the challenges to further adoption if IMC will be degreeto which various groups across organizations grasp the concept& implement the process of IMC.
Can One Agency Do IMC?IMC organization expects that clients work with onlythem with a single issue. A research also shows thatclients also do not work with the several affiliatedcompany. Clients may be expecting more involvementin several issues sometimes cause some problem to theorganization and the clients. Agency would not expectto do the clients sales and marketing activities or thepublic promotion activities. They are expecting theseissues always put on the shoulders of the marketers.
Is IMC a Fad? IMC does not appear to be afad. It is being driven into clientorganizations due to realbusiness needs. Now agency executivesacknowledge that some ofthe traditional rules ofcommunication & marketingare changing there issubstantial change incommunication objectives &attitudes.
DiscussionWe have attempted to develop & provide baseline of howIMC is developed & agency leader believe IMC is animportant concept & approaches. IMC program shouldbe evaluated & integration & IMC are good ideas.Agency executive agreed that integration must comefrom the client. It does appear that IMC has moved from“What is it?” to “Howcan wedo it?”.Stage of development in the U.S.A compensation &measurement issues are important. The issue of howagency can become skilled & capable of in all areas ofcommunication. Agency executive either had no strongfeelings of how to respond to the challenges which IMCrepresents.
DirectionsforFutureResearchCompensation, measurement & IMC development interms of execution & implementation of integratedprogram appear to be the key areas for future research.Measurement issues particularly important IMC approachis better than the traditional approach agencies havebeen using. Measurement would appear to be a keyelement for future research.The second major area for additional research is that ofhow well clients & agencies should work together todevelop & implement an IMC program. One of the majorissues for the academic community if IMC is to develop atheory base is to develop a more acceptable or relevantdefinition.