After studying this chapter you will be able to understand: Who are the IMC partners? How is the agency world organized? How do media partners fit in? Behind the message is the company (client)? How does the agency/client relationship work?
LECTURE21 IMC Partners & Industry Organization Chapter Questions Who are the IMC partners? How is the agency world organized? How media partners fit in? Behind the message is the company (client) How does the agency/client relationship work? Chapter Perspective: Changing World Old World New World Marketing Marketing Communications Communications Dominated Dominated by by Advertising Advertising Agencies Agencies More More Use Use of of Other Other Marketing Marketing Communications Communications Functions Functions Focus Focus on on mass mass media media Willingness Willingness to to consider consider other other media media to to reach reach consumers consumers Opening Case: Phelps Group + Opening Case: Phelps Group Challenge: Answer: Results: Get Get feedback feedback for for the the agency’s agency’s work work •• “The “The Wall” Wall” of of ideas ideas •• Surveys Surveys of of clients, clients, suppliers, suppliers, and and employees employees •• “Wallbangers” “Wallbangers” and and “BrainBanger’s “BrainBanger’s Balls” Balls” •• Recognized Recognized as as aa very very creative creative agency agency •• Impressive Impressive client client list: list: Petco, Petco, Whole Whole Foods, Foods, Panasonic Panasonic Three Players in the Golden Triangle IMC in Action: Mall of America IMC In Action: Mall of America Challenge: Answer: Results: Promote Promote Mall Mall of of America’s America’s 10 10thth anniversary anniversary An An IMC IMC campaign campaign featuring: featuring: •• The The theme: theme: “Celebrating “Celebrating aa decade decade of of fun” fun” •• Effort Effort to to involve involve as as many many media media partners partners as as possible possible •• USA USA Today Today front front page page story story •• CBS CBS Sunday Sunday Morning Morning piece piece •• AP AP story story carried carried by by 30 30 newspapers newspapers 1st Part of Golden Triangle: The Agency Most Common Types of Agencies Advertising Advertising Advertising Advertising Direct Direct Direct Direct Marketing Marketing Marketing Marketing Sales Sales Promotion Promotion Events Events Events Events Agencies Agencies Relationship Relationship Relationship Relationship Marketing Marketing Marketing Marketing Public Public Public Public Relations Relations Relations Relations IMC IMC IMC IMC Packaging Packaging Packaging Packaging Ultimate form of integration: Disney Disney Disney Store Store Logo Logo Disney Disney Online Online Touchstone Touchstone Pictures Pictures Logo Logo Disney Disney World World Logo Logo Media Media Integration Integration @ @ Disney Disney Fox Fox Kids Kids Logo Logo ABC ABC Logo Logo Disney Disney Channel Channel Logo Logo ESPN ESPN Logo Logo 3rd Part of Golden Triangle: Companies Two Types of Marketing Efforts B2B B2B B2C B2C Some Firms Do Both: Nike B2B B2B Nike’s Relationship with shoe retailers like Foot Locker B2C B2C Niketown stores selling shoes directly to consumers Example of Centralized Control Example of Decentralized Control + Agency/Media/Company Compensation Commission: A payment that represents a percentage of a client’s total media spending Cost of media advertising: Amount agency bills to client: Amount agency pays media Amount agency keeps Rs million (100%) Rs million (100%) Rs 4.25 million (85%) Rs 750,000 (15%) Commission = Rs 750,000 IMC Planning Starts at Zero Zero-based planning A process that determines objectives and strategies based on current brand and marketplace conditions Tales From the Real World In the real world, many organizations pay lip service to “zero-based” planning or ignore it completely Why? It’s human nature It is simply much easier and less time consuming to find last year’s plan, dust it off, make a few minor changes, and present it as a new plan There’s only one problem: last year’s SWOTs may no longer apply As a result, the new plan may be addressing old issues—and wasting marketing dollars Reasons for IMC Planning Provides Provides aa aRational Rational Process Process Provides Provides aRational Rational Process Process Informs Informs Everyone Everyone of of Informs Informs Everyone Everyone of of Expectations Expectations Expectations Expectations IMC IMC Planning Planning Reasons Reasons Ensures Ensures That That the the Program Program Is Ensures Ensures That That the the Program Program IsIs Is Integrated Integrated Integrated Integrated Helps Identify Identify Budget Budget HelpsHelps Helps Identify Identify Budget Budget Creates Creates aa Benchmark Benchmark for for Measuring Measuring Results Results Where it Fits in the Organization Corporate Corporate Level Level Department Department Level Level Business Business Plan: Plan: •• Focused Focused on on the the profits profits and and brand brand equity equity Department Department Plan: Plan: •• Marketing Marketing operations/ operations/ production, production, human human resources resources MC MC Level Level IMC IMC plan: plan: •• Advertising, Advertising, publicity, publicity, sales sales promotion, promotion, events events and and sponsorships, sponsorships, direct direct response response Insight: Cross-Functional IMC Teams Some basic principles for managing cross-functional teams: • Long-term focus: Keep team members in place for an extended period rather than assembling them for ad hoc projects • Constant contact: Frequent meetings are important; however, members can also keep in constant contact via email • Work space: Assigning a cross-functional team its own work space helps keep team members informed • Support from the top: Top management must support the idea of cross-functional planning by providing adequate resources Final Note: IMC is driving the need for closer agency-client relationships • Fallout: some marketers are consolidating their relationships with fewer agencies • IBM cut 70 agencies from its $500 million account Bibliography Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc Strategic Marketing Management – Meeting The Global Marketing Challenges by Carol H Anderson & Julian W Vincze Published by Houghton Mifflin Company Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin Principles of Marketing by Philip Kotler & Gary Armstrong Thirteenth Edition, Published by Prentice Hall The End: "Never worry about numbers Help one person at a time, and always start with the person nearest you." - Mother Teresa ... Triangle IMC in Action: Mall of America IMC In Action: Mall of America Challenge: Answer: Results: Promote Promote Mall Mall of of America’s America’s 10 10thth anniversary anniversary An An IMC IMC... Relationship Relationship Relationship Marketing Marketing Marketing Marketing Public Public Public Public Relations Relations Relations Relations IMC IMC IMC IMC Packaging Packaging Packaging Packaging... newspapers 1st Part of Golden Triangle: The Agency Most Common Types of Agencies Advertising Advertising Advertising Advertising Direct Direct Direct Direct Marketing Marketing Marketing Marketing Sales