2. Participants in the IMC Process
Marketing
Communications
Specialist
Organization
Marketing
Communications
Specialist
Organization
Media OrganizationsMedia Organizations
Advertiser (Client)Advertiser (Client)
Advertising AgencyAdvertising Agency
Collateral ServicesCollateral Services
Direct
Response
Agencies
Direct
Response
Agencies
Sales
Promotion
Agencies
Sales
Promotion
Agencies
Interactive
Agencies
Interactive
Agencies
Public
Relations
Firms
Public
Relations
Firms
3. “THE CONSUMER”
The client is ultimately a consumer for an
advertising agency.
The company wants an ad to be prepared
keeping in mind the final end consumer
4. 4
Consumer in the Real World
Social
class
Geo-
politics
Rituals
Family Values
Reference
Groups
(membership/aspiration)
Race/
Ethnicity
Gender
Culture
Community
Object
Meaning
5. Factors Affecting Consumer
Decision Making
SUBCULTURESSUBCULTURESSUBCULTURESSUBCULTURES
MEDIAMEDIAMEDIAMEDIA
NEWSNEWS
MAGAZINESMAGAZINES
RADIORADIO
TELEVISIONTELEVISION
DIRECT MEDIADIRECT MEDIA
BLOGSBLOGS
INTERNET INFOINTERNET INFO
NEWSNEWS
MAGAZINESMAGAZINES
RADIORADIO
TELEVISIONTELEVISION
DIRECT MEDIADIRECT MEDIA
BLOGSBLOGS
INTERNET INFOINTERNET INFO
NEEDSNEEDSNEEDSNEEDS
PRICEPRICE
PACKAGINGPACKAGING
ADVERTISINGADVERTISING
PROMOTIONPROMOTION
PERSONAL SELLINGPERSONAL SELLING
PRICEPRICE
PACKAGINGPACKAGING
ADVERTISINGADVERTISING
PROMOTIONPROMOTION
PERSONAL SELLINGPERSONAL SELLING
MARKETER-MARKETER-
CONTROLLEDCONTROLLED
STIMULISTIMULI
MARKETER-MARKETER-
CONTROLLEDCONTROLLED
STIMULISTIMULI
EDUCATIONEDUCATIONEDUCATIONEDUCATION
VALUESVALUES // ATTITUDESATTITUDESVALUESVALUES // ATTITUDESATTITUDES
PASTPAST
EXPERIENCEEXPERIENCE
PASTPAST
EXPERIENCEEXPERIENCE
PERSONALITYPERSONALITYPERSONALITYPERSONALITY
PLEASUREPLEASUREPLEASUREPLEASURE
GENDERGENDERGENDERGENDER
CULTURECULTURECULTURECULTURE
LIFE-STYLELIFE-STYLELIFE-STYLELIFE-STYLE
SOCIALSOCIAL
CLASSCLASS
SOCIALSOCIAL
CLASSCLASS
REFERENCEREFERENCE
GROUPSGROUPS
REFERENCEREFERENCE
GROUPSGROUPS
FAMILYFAMILYFAMILYFAMILY
SITUATIONALSITUATIONAL
FACTORSFACTORS
SITUATIONALSITUATIONAL
FACTORSFACTORS
CONSUMERCONSUMER
DECISIONSDECISIONS
CONSUMERCONSUMER
DECISIONSDECISIONS
6. • Keeping & understanding all these in
mind, an ad agency works.
7. Advertising Agency
Agency –of-record (AoR)
• There are special groups which operate as
consultants and who aid either the advertiser,
the media firm or the media in the development
of the ad.
• The ad agency is an independent company set
up to render specialized services in advertising
in particular & marketing in general.
8. • Many companies have their own active
advertising departments which develop the ad
message and select proper media for its
execution.
• While there are special service groups which
operate as consultants and who aid the
advertiser.
• The advertiser should select an advertising
agency on the basis of compatibility, agency
size, agency stability, agency team service,
selling attitude, creativity & problem solving
approach
9. • Previously ad agencies started as space
brokers for handling of the advertisements
placed in the newspapers.
• It may be a full scale agency or part scale
agency.
• Sometimes, several agencies in the same
area because they believe the competition
will result in better work
10. Why an advertising agency?
• Provides specialized services
• Objective advice
• Experienced staffing
• Tailored management of all advertising
activities and personnel.
11. 2 primary roles of agencies
• idea generation
• brand-building
12. Idea generation Brand Building
Ideas about
promotion,
product
development,
marketing
strategies,
• To create and
direct
communication
about a product or
service so that the
brand is perceived
to have a unique
value or brand
personality.
13. Other Functions
• complete a marketing analysis
• develop an advertising plan
• prepare a creative strategy
• create advertising executions
• develop and implement a media plan
• handle billing and payments
• integrate other marketing communications
14. Evolution of advertising agency
• 1840
• Some people started working as Sales
representatives / space brokers for newspapers
on a commission basis.
• Advertiser media= clients for agency
• This era lasted from 1840-1876
• Little emphasis on advertising planning & media
schedule.
• J.Walter Thompson set up a shop in Mumbai in
1929 as a part of UK based agency for eastern
operations. It was India's first advertising
agency.
15. 4 functions of an Ad Agency
• Account Management
• Creative Service
• Media Service
• Research Service
16. Advertising Agency Organization
• Develop advertising
copy and
campaigns
• Copywriters,
production people,
and creative
directors
Creative Services
Account Management
Media Services
Research Services
17. creative department
• executive & group
creative directors
• creative director
• associate creative
director
• copywriters
• art directors
• broadcast producers
• print production
managers
• traffic coordinators
Print
Traffic
Production
Broadcast
Production
C o p y S p v r . &
C o p y w r it e r s
A r t S u p e r v is o r
& A r t D ir e c t o r s
C r e a t iv e
G r o u p :
A s s o c ia t e
C r e a t iv e
D ir e c t o r ( A C D )
C r e a t iv e
D ir e c t o r ( C D )
E x e c u t iv e
C r e a t iv e
D ir e c t o r ( E C D )
S t r a t e g y
R e v ie w
B o a r d
18. Advertising Agency Organization
• Selecting the best
advertising media
• Media planners
develop overall media
strategy
• Media buyers procure
the selected media
Creative Services
Account Management
Media Services
Research Services
19. • media director
• associate media directors
• media supervisors
• media planners
• media buyers
• media analystsAnalysts
M e d i a
P l a n n e r
M e d i a
B u y e r
M e d i a
S u p e r v i s o r
A s s o c i a t e
M e d i a
D i r e c t o r
M e d i a
D i r e c t o r
MediaMedia
PlanPlan
media department
20. Research Services
• Study clients’ customers’
buying habits, purchase
preferences, and
responsiveness
• Focus groups, mall
intercepts, acquisition of
syndicated research
data
Creative Services
Account Management
Media Services
Research Services
21. • research director
• research project managers
• research assistants
• outside research specialists
research department
Research
Suppliers
Outside
R e s e a r c h
A s s i s t a n t s
P r o j e c t
M a n a g e r s
R e s e a r c h
D i r e c t o r
ResearchResearch
ReportReport
22. research department
• interpret market environment
– gather and analyze research data.
– primary and secondary techniques
• determine consumer needs/perceptions
– understand problems
• advise how ads can meet
strategic goals
– help find solutions
ResearchResearch
ReportReport
23. Advertising Agency Organization
• Link the agency with
the client
• Act as liaisons so that
the client does not
need to interact
directly with several
different service
departments and
specialists
Creative Services
Account Management
Media Services
Research Services
24. • account management
director
• management supervisor
• account supervisors
• account executives
• assistant account execs
• account coordinators
• trafficTraffic
A ss t. A c c o u n t
E x e c u tiv e
A c c o u n t
C o o r d in a to r
A c c o u n t
E x e c u tiv e
A c c o u n t
S u p e r v is o r
M a n a g e m e n t.
S u p e r v is o r
A c c o u n t M g m t.
D ir e c to r
account management
25. Classification of agencies
On the
basis of
Services
On the
basis of
organizational
set up
Location
( in or Outside)
the
organization
26. Centralized System
PresidentPresident
ProductionProduction FinanceFinance MarketingMarketing
Research
and
Develop-
ment
Research
and
Develop-
ment
Human
Resources
Human
Resources
AdvertisingAdvertising Marketing
Research
Marketing
Research SalesSales Product
Planning
Product
Planning
On the
basis of
organizational
set up
27. Fewer
Personnel
Fewer
Personnel
Better
Communications
Better
Communications
Continuity
Of Staff
Continuity
Of Staff
Longer
Response Time
Longer
Response Time
Less Goal
Involvement
Less Goal
Involvement
Better
Communications
Better
Communications
Fewer
Personnel
Fewer
Personnel
Continuity
Of Staff
Continuity
Of Staff
Less Goal
Involvement
Less Goal
Involvement
Longer
Response Time
Longer
Response Time
Pros & Cons of Centralization
The
Centralized
System
The
Centralized
System
+ Positive+ Positive - Negative- Negative
Can’t Do
Multiple Product
Lines
Can’t Do
Multiple Product
Lines
28. Decentralized Brand Management System
Production Finance
Sales
Brand
Manager
Ad agency
Brand
Manager
Ad agency
Product
Management
Sales
Promotion
Package
Design
Merchandising
Advertising
Department
Marketing
Research
Marketing
Services
Marketing Research
and
Development
Human
Resources
Corporate
29. Competition for
Resources
Competition for
Resources
Competition for
Resources
Competition for
Resources
Lack of
Experience
in IMC
Lack of
Experience
in IMC
Lack of
Experience
in IMC
Lack of
Experience
in IMC
Rapid Problem
Response
Rapid Problem
Response
Concentrated
Attention
Concentrated
Attention
Increased
Flexibility
Increased
Flexibility
Increased
Flexibility
Increased
Flexibility
Rapid Problem
Response
Rapid Problem
Response
Concentrated
Attention
Concentrated
Attention
Pros & Cons of Decentralization
The
Decentralized
System
The
Decentralized
System
+ Positive+ Positive - Negative- Negative
Lack of
Authority
Lack of
Authority
30. Roles of an Advertising Manager
Advertising Functions
• Making the ad strategy in collaboration
• Evaluation of the ad
• Determining the ad efforts
• Coordinating with the agency
• New developments in advertising
• Making the ad budget.
31. Managerial functions
• Making advertising understandable
• Representing the organization
• Goal setting for advertising
• Administration in general
• Creative thinking wrt his functions
• Participation with higher ups about his
function
32. Classification of Agencies on
the basis of Extent of their
Services
• Full service Agencies
• Limited Service Agencies
(A La Carte Agency)
• Specialized Agencies
On the
basis of
Services
33. Creating
advertising
Creating
advertising
Planning
advertising
Planning
advertising
Producing
advertising
Producing
advertising
Performing
research
Performing
research
Selecting mediaSelecting media
Sales promotion
and training
Sales promotion
and training
Strategic market
planning
Strategic market
planning
Trade show
materials
Trade show
materials
Package designPackage design
Planning
advertising
Planning
advertising
Creating
advertising
Creating
advertising
Producing
advertising
Producing
advertising
Performing
research
Performing
research
Selecting mediaSelecting media
Strategic market
planning
Strategic market
planning
Sales promotion
and training
Sales promotion
and training
Trade show
materials
Trade show
materials
Package designPackage design
Full-Services Agencies
Full Range of
Marketing
Communication
and Promotion
Services
Full Range of
Marketing
Communication
and Promotion
Services
Non-Advertising
Services
Non-Advertising
Services
Public relations
and publicity
Public relations
and publicity
34. John Monsattal’s reasons for FSA
• Sales oriented creative work
• Synergistic experience
• Centralization of responsibility &
accountability
• Greater objectivity
• Simplified coordination & administration
• Professional strength in marketing area
• Stronger pool of talents.
35. Advantages
• In-depth knowledge
and skills
• Obtaining
negotiating muscle
with the media
• Coordinating
advertising and
marketing efforts
Full-service advertising agency
Disadvantages
• Some control is lost
• Larger clients are
favored over small
clients
• Occasionally
inefficient in media
buying
37. ArtistsArtists
Ad Agencies Have Skilled Specialists
WritersWriters ResearchersResearchers
PhotographersPhotographers Media AnalystsMedia Analysts Other SkillsOther Skills
38. The Role of Creative Boutiques
Creative
Boutiques
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
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
39. 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 Can Be Specialized
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
42. AudioAudio
Special EffectsSpecial Effects
VideoVideo
Web
Banner Ads
Web
Banner Ads
KiosksKiosks
Web SitesWeb Sites
CD-ROMsCD-ROMs
Special EffectsSpecial Effects
VideoVideoAudioAudio
KiosksKiosksCD-ROMsCD-ROMs
Web SitesWeb SitesWeb
Banner Ads
Web
Banner Ads
Functions performed by Interactive Agencies
Interactive
Media Creation
Interactive
Media Creation
Digital
Content
Digital
Content
AnimationAnimation
43. Planning and
Implementing
Research
Planning and
Implementing
Research
Planning and
Implementing
Research
Planning and
Implementing
Research
Information
Application
Information
Application
Analysis and
Interpretation
Analysis and
Interpretation
Primary Data
Collection
Qualitative & Quantitative
Primary Data
Collection
Qualitative & Quantitative
Secondary Data
Collection
Secondary Data
Collection
Primary Data
Collection
Qualitative & Quantitative
Primary Data
Collection
Qualitative & Quantitative
Analysis and
Interpretation
Analysis and
Interpretation
Information
Application
Information
Application
Marketing Research Companies
45. Participants in the IMC Process
Full service &
Limited Service Ad
Agencies
Full service &
Limited Service Ad
Agencies
Media OrganizationsMedia Organizations
Advertiser (Client)Advertiser (Client)
Advertising AgencyAdvertising Agency
Collateral ServicesCollateral Services
Direct
Response
Agencies
Direct
Response
Agencies
Sales
Promotion
Agencies
Sales
Promotion
Agencies
Interactive
Agencies
Interactive
Agencies
Public
Relations
Firms
Public
Relations
Firms
46. Collateral Services offered by an
advertising agency
• Meta markets
• They include marketing research
companies, package design firms,
consultants, photographers, printers,
video production houses, event marketing
services companies
47. In House Agencies
• An organization may decide to establish
its own operation for all services of an
advertising agency with in its own
structure.
• As the name suggests the agency is
owned & operated under the direct
supervision of the advertiser.
49. Selecting an agency
• Have they fully
understood the brief?
• Do they know how to
use market research?
Can they contribute to
our thinking here?
• Is their strategic
thinking sound?
• Is it imaginative? Have
I learned anything
useful from it?
• Are they professional and
businesslike?
• Can I work with their
senior people? And will
they be actually working
on my business?
• Are their capabilities high
in all key areas –
management, strategy,
creative, media?
• Do they work well as a
team – both among
themselves and with our
people?
50. Selecting an agency
• Is their creative work
of a high quality?
• Is this confined to TV,
or does it go across
all media?
• Does this include
below-the-line? New
media? Can they offer
an integrated service?
• Do they have real
expertise in the
specialist areas which
we are looking at, egl
direct marketing, new
media?
• Can they work with us
internationally (now or
in the future)
• How do they propose
to evaluate the
effectiveness of the
campaign?
51. Selecting an agency
• What is their attitude to
costs? Will they save
us money?
• How will they relate to
our media buying
agency/other
specialists?
• How important to them
will our account be?
Will we be one of their
larger accounts, or
simply a small fish in a
very large pool?
• Will they fit with our
ways of working?
Are they willing and
able to be business
partners, or will they
simply be
suppliers? (This
depends – of course
– on how we see our
own style of dealing
with agencies)
53. Media Commission Mark up/
Percentage charge
• Oldest method
• Fixed % from the
media whenever it is
booking advertising
space in print or a slot
in electronic media on
behalf of its client.
• Administrative
charges are
calculated,
• Fix % of total amount
& expenses is billed
to the client.
54. Fees Incentive
based
compensation• Straight fees or Fixed
Fees method
( the media
commissions earned
are returned to the
advertisers or are
credited against the
fees)
• Fee Commission
method (fixed monthly
fees is charged by the
agency & commissions
earned from media too
are retained)
• Performance based
compensation
• Commission + fee system
combination
• Amount= effectiveness of
the ad campaign
• Advertising goals
(DAGMAR) & other
factors.
• Reward or Penalize ( by
paying only part of the
decided fees)
56. ReferralsReferrals
How Agencies Gain Clients
SolicitationsSolicitations
PresentationsPresentations
Public RelationsPublic Relations Image, ReputationImage, Reputation
57. Group Assignment
• Detailed history of any agency of your
choice.
• Story
• Man power behind its success
• Their list of clients ( at least 8)
• Their work/ ads
58. Next Class
• Types of advertisements
• Appeals used in ads
• Articles & research papers related to the
same from Journals
• Advertising budget
• Planning the advertising media
