This document provides an overview of integrated marketing communication (IMC) and advertising agencies. It discusses key concepts like the marketing mix of product, price, place and promotion. It defines IMC as the strategic coordination of multiple communication channels to deliver a unified message. The document also outlines the traditional vs contemporary IMC approaches and reasons for the growing importance of IMC. Additionally, it describes different types of advertising agencies like full-service, in-house, creative boutiques and media buying services. Selection factors for choosing an advertising agency are also summarized.

1. Unit - 1
Introduction to IMC

2. Unit outline
⚫IMC Meaning and role
⚫One voice communication V/s IMC.
⚫Introduction to IMC tools
⚫The role of advertising agencies
⚫Perspective on consumer behaviour

3. What’s the Marketing Mix?

4. Marketing mix and Advertising
⚫Product
⚫Price
⚫Place
⚫Promotion

5. ⚫ Product – According to Philip Kotler
“A Product is anything that can be
offered to a market for attention,
acquisition, use or consumption that
might satisfy a want or need” .
⚫ Price – Is the sum that the customer
pays in exchange for the product, or to
get a service performed.
⚫ Place – Marketing activities
undertaken to make the product or
service available to consumers at
convenient locations where they are
normally expected to shop for such
things.
⚫ Promotion – is the communications
from arm of marketing and includes
marketing activities used to inform
persuade and remind the target
market about an organization, its
products, services and other activities
to build a favorable image.

6. Promotion Mix
⚫Promotion mix constitutes the specific
group of marketing activities at a given
time concerned with the communications
aspect with existing or potential consumers
and the relevant public.
⚫Elements of promotion mix are,
⚫Advertising
⚫Personal selling
⚫Sales promotion
⚫Direct marketing
⚫ Publicity and Public relations
https://www.youtube.com/watch?v=Od
Ncsxx1uHI

7. Integrated Marketing
Communication
⚫ Integrated Marketing Communications (IMC)
is the term used to describe the entire
program by which you communicate with
your customers. The “face, personality and
spirit” of the company and products (all
marketing mix variables) should blend
together to present a unified message.

9. Integrated Marketing
Communication
⚫ IMC plan is NOT a marketing plan. It is a portion of the
marketing plan that involves all promotional aspects of
the marketing plan. All communications with
customers, including but not limited to
• personal selling
• consumer sales promotions
• trade (channel) promotions
• advertising
• public relations
• corporate as well as product positioning
• customer service experiences

10. Point of
purchase
Publicity
Public
relations
Direct
marketing
Interactive
marketing
Special
events
Packaging
Sales
promotion
Direct
response
Traditional Approach to Marketing Communications
Media
Adver-
tising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

11. Contemporary IMC Approach
Point of
purchase
Publicity
Interactive
marketing
Public
relations
Direct
marketing
Special
events
Packaging
Sales
promotion
Direct
response
Media
Adver-
tising
© 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

12. Integrated Marketing
Communication

13. Integrated Marketing
Communication

14. Integrated Marketing
Communication

15. Integrated Marketing
Communication
⚫ The strategic
integration of multiple
means of
communicating with
target markets to form
a comprehensive,
consistent message.

16. Traditional compensation Performance-based compensation
Traditional compensation Performance-based compensation
Media advertising Multiple forms of communication
Mass media Specialized media
Manufacturer dominance Retailer dominance
General focus Data-based marketing
Low agency accountability Greater agency accountability
Limited Internet availability Widespread Internet availability
Media advertising Multiple forms of communication
Mass media Specialized media
Manufacturer dominance Retailer dominance
General focus Data-based marketing
Low agency accountability Greater agency accountability
Reasons for the Growing Importance of IMC
From Toward

35. Public Relations

38. Advertising Agency
Definition
An ad agency is an independent
company set up to render specialized
services in advertising in particular and in
marketing in general.
One can term an advertising agency as,
“a team of experts and professionals who
plan, create, produce, publish and
execute advertising campaigns in return
for commission paid by the media or fees
received from the advertiser”.

39. The Centralized System
President
Production Finance Marketing
Marketing
Research
Research &
Development
Human
Resources
Advertising Sales
Product
Planning

40. The Decentralized System
Sales Promotion
Package Design
Merchandising
Corporate
Finance
Marketing
Services
Product
Management
Marketing
Production Research &
Development
Sales
Human
Resources
Brand Manager
Advertising
Department
Marketing
Research

41. Types of Advertising Agency
⮚ Full Service Agency
Full service agency offers its clients a full range of marketing,
communications and promotion services including planning, creating the
advertisement, performing research and selecting media.
A full service agency may also offer non advertising services such as
strategic market planning, design of sales promotion, sales training
and trade show materials, package design and public relations.
⚫ http://www.graphic-design-institute.com/blogs/top-
10-advertising-agencies-india

42. Full Service Agency Organizational Chart
Board of Directors
Writers Art
Directors
President
Vice President
Creative
Services
Vice President
Account
Services
Vice President
Marketing
Services
Vice President
Management &
Finance
Print
Production
Media
Sales
Promotion
Office
Management
Finance
TV
Production
Account
Supervision
Research
Accounting
Traffic
Account
Executive
Personnel

43. ⮚ In - House Agency
⚫ The in – house agency as its name implies is owned out right by and operated
under the direct supervision of the advertiser.
⚫ It perform all the creative and media services provided by the traditional full
service agency.
⚫ A major goal in adopting this approach is to reduce the total cost of the advertising.
Ex: Usha international has an in-house agency called Goldilocks. Calvin Klein and
Benetton use in-house agencies.
⮚ A Creative Boutique
⚫ It is an agency that provides only creative services.
⚫ The client may seek outside creative talent because it believes that an extra creative
effort is required or because its own employees do not have sufficient skill in this
regard.
⚫ Ex: singylstroke, brunodanto
⚫ https://www.scoopwhoop.com/creative-indian-ads/

44. ⮚ Media Buying Service
⚫ There are independent companies specialize in the buying of media, particularly
radio and TV time.
⚫ Media buying is a niche service and these agencies are specialized in the analysis
and purchase of advertising time and space.
⮚ The A La Carte Agency
⚫ A la carte services can be purchased from a full service agency or from an
individual firm that specializes only in creative work, media, production, research,
or new product development.
⚫ The two requirements most frequently obtained by a la carte are creative and media
services.

45. ⮚ Special Service Agency (Group)
⚫ Some agencies focus their efforts only in some selected areas and then become
specialists in those areas.
⚫ There is great multiplicity of firms whose objective is to provide advertisers,
advertising agencies and the advertising media with a host of specialized services.
⚫ These firms collectively are called special service groups and they are by far the
least known component of the advertising industry.

46. Internet assignment
Chose any one advertising agency and
visit its website. From what you find on
that site, develop a profile of the agency
addressing the following points:
1. What is the agency’s focus, specialty or
area of business? What services does it
provide its clients?
2. What is the agency’s philosophy of
business?
3. How is the agency organized?

47. Advertisement Agencies Selection
Factors to be Considered
⮚ Total Extent of the Agency
When an agency operates on a larger scale, it is pretty obvious that it has the financial
prowess to hire a good amount of ad professionals. Also, smaller agencies do not have the skill to
provide a wide range of services.
⮚ Number of Clients under the Agencies’ Belt
Most agencies have their own website or brochure. You must log on to their website and
view the existing clients being handled by the agency, before hiring them to carry out your own
work. If the agency has a client on board that deals in the same line of products as yours, it is
recommended to avoid the agency in order to avoid the occurrence of repetitive work and
exchange of crucial business information with the competitor.
⮚ Types of Services on offer
It is essential to view the types of ad and non-ad based services offered by the agency.
Depending on your promotional needs and size or extent, you can hire a small or a large ad
agency accordingly. Moreover, certain types of agencies specialize in a particular field such as
FMCG advertising while other agencies may specialize in industrial marketing.

48. ⮚ Creative Talent Possessed by the Agency
You must always calculate the number and amount of creative personnel
owned by the ad agency, as it forms the basic criteria for selection. Creativity
can be calculated on the basis of factors such as quality of personnel,
experience, diversity, specialization and so on.
⮚ Media Contacts possessed by the Agency
With the help of adequate media contacts, the agency will be able to
accommodate the desired place, date and time required for the promotion of
your business. Agencies that closely work with most communication channels
such as radio channels, TV channels, publishers, printers and so on are the
ones to consider.

49. ⮚ Agency location and Proximity:
It is important to calculate the location of the agency for better
communication and contact with the agency. The closer the proximity to the
agency, the better convenience, control and involvement with its activities.
⮚ Methods of payment and compensation
It is good to compare the ad rates demanded by different agencies before
zeroing in on the perfect one. This is because different agencies charge
different amounts and promotional activities are always bound by tight
budgets.
⮚ Total amount of involvement
An agency must show complete respect for the client and allow it to take
part in the activities, give its feedback and work with the same form time-to-
time. Moreover, monthly reports and expenses should be shown by the
advertiser on an alternate basis.

50. ⮚ Endorsement of the Agency
Agencies that are endorsed by television, radio and newspapers are the
ones that are the most recognizable and this credit is eventually passed on to the
clients. These agencies have a specific code of conduct to follow and an image
to portray, which makes them the most reliable in the industry.
⮚ Agency Ranking
An agency that works hard to provide results and easy to approach, is the
one to consult. Which is why, it is important to research the current market
standing held by the agency. Agencies with a higher ranking are more reliable
and provide better returns on investment.

51. Advertisement Agencies Remuneration
Introduction
⮚ How much does an idea cost?
⮚ Putting a price on intellectual capital is one of the biggest puzzle facing
agencies and clients. Sometimes it takes a day, other times it takes six months
to crack the right idea. So should you pay for the hours spent on the job or for
the worth of the idea?
⮚ And how do you really know if an idea is going to be the one that takes your
business to the next level? Should you pay the same for an idea that increases
sales by 0.5% as you do for an idea that increases sales by 500%?

52. Why agency remuneration can be a complex negotiation
Agency perspective
⮚ Relationships are fundamental to a successful business partnership, so that
agencies often don't want to negotiate too hard.
⮚ In the case of an existing client, the agency may fear that it they push too hard,
they may force the client to put the business out to pitch.
⮚ As there is a growing squeeze on margins and profitability, winning and keeping
clients is seen as paramount.
⮚ Agencies will work more effectively and productively when they believe they
are being fairly remunerated.

53. Client perspective
⮚ Often the client doesn’t understand the financial structure of an agency.
⮚ The variety of remuneration methodologies in use can make it confusing.
⮚ Lack of understanding means that clients are often suspicious about costs.
⮚ There is continuing pressure from internal management to cut costs.
⮚ Many clients do not understand the complex process needed to develop a
creative idea, or that its value does not simply relate to “man hours”.
⮚ Negotiation may come at an awkward time - after the agency selection decision
has been emotionally made.

54. END OF UNIT - 1