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Organizing for Advertising and

Promotion: The Role of Ad Agencies
and Other Marketing
Communication Organizations

McGraw-Hill/Irwin Copyright 2012 McGraw-Hill Companies, Inc., All right reversed

Participants in the IMC Process

3-2
Advertising Dept. Under a Centralized System

President
President

Research
Research
and
and Human
Human
Production
Production Finance
Finance Marketing
Marketing develop-
develop- resources
resources
ment
ment

Marketing
Marketing Product
Product
Advertising
Advertising Sales
Sales
research
research planning
planning

3-3
 Decentralized Advertising System

Corporate

Production Finance Marketing R&D Human

Resources

Sales Product Marketing

Management services

Brand Advertising Marketing

Manager Dept Research

Ad agency
Sales promotion
Brand
Manager Package design

Ad agency Merchandising

3-4
 Full-Service Agencies

Planning
Planning Performing
Performing
Full
Full range
range of
of advertising
advertising research
research
marketing
marketing Creating
Creating
communication
communication advertising
Selecting
Selecting media
media
advertising
and
and promotion
promotion
services
services Producing
Producing
advertising
advertising

Strategic
Strategic market
market Interactive
Interactive
Nonadvertising planning
planning capabilities
capabilities
Nonadvertising
services
services Sales
Sales Package
Package design
design
promotions
promotions
Direct
Direct Public
Public relations
relations
marketing
marketing and
and publicity
publicity
3-5
 Agency Services

Account
Account Marketing
Marketing Creative
Creative Mgmt
Mgmt &&
Services
Services Services
Services Services
Services Finance
Finance

The
The link
link Research
Research Creation,
Creation, Accounting
Accounting
between
between department
department execution
execution
agency Finance
Finance
agency and and May
of
of ads
ads
client
client May include
include Human
account
account Copywriter
Copywriter Human
Managed planners artists, resources
resources
Managed planners artists,
by
by the
the other
other New
New
account Media
Media dept.
dept. specialists
account obtains specialists business
business
executive
executive obtains generation
media
media generation
space,
space, time
time

3-6
 Creative Boutiques

Creative
Creative Provide
Provide only
only
Boutiques
Boutiques creative
creative services
services

May
May subcontract
subcontract from
from
ffull-service
ull-service agencies
agencies

Strength
Strength is
is turning
turning out
out
creative
creative work
work quickly
quickly

3-7
 Media Buying

Media
Media Specialize
Specialize in
in buying
buying media,
media,
Specialist
Specialist especially
especially broadcast
broadcast time
time
Companies
Companies

Agencies
Agencies and
and clients
clients develop
develop
media
media strategy
strategy

Media
Media buying
buying organizations
organizations
implement
implement strategies,
strategies, and
and
buy
buy time
time and
and space
space

3-8
Agency Compensation Methods

Commissions from media

Fee, cost, and incentive-based systems

Percentage charges

3-9
 Evaluating Agencies

Financial Audit Qualitative Audit

Verify costs, expenses Planning

Personnel hours billed Program development

Payments to media Implementation

Payments to suppliers Results achieved

3-10
Direct Marketing Agency Activities

Direct-Marketing
Direct-Marketing Agency
Agency Services
Services

Database
Media services
management

Direct mail Creative capabilities

Research Production

3-11
Sales Promotion Agencies

Promotional planning

Creative research

Tie-in coordination

Fulfillment

Premium design and

manufacturing

Catalog production

Contest/sweepstakes
management
3-12
Functions Performed by Public Relations Firms

Strategy Public Special

development affairs events

Generating News releases, Managing

publicity communication crisis

Coordination
Lobbying Research w/promotional
areas

3-13
Functions Performed by Interactive Agencies

Interactive Media Creation

Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media

3-14
 Collateral Services

Typical collateral services

Marketing research
Package design
Consultants
Photographers
Printers
Video production
Event marketing

3-15