IMC Partners & Industry Organization

LECTURE-21

Chapter Questions

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?

More Use of Other Marketing

Communications Functions

More Use of Other Marketing

Communications Functions

Marketing Communications

Dominated by Advertising Agencies

Marketing Communications

Dominated by Advertising Agencies

Chapter Perspective: Changing World

Old WorldOld World New WorldNew World

Willingness to consider other media to reach

consumers

Willingness to consider other media to reach

consumersFocus on mass mediaFocus on mass media

Opening Case: Phelps Group

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• “The Wall” of ideas• Surveys of clients, suppliers, and

employees• “Wallbangers” and “BrainBanger’s

Balls”

• “The Wall” of ideas• Surveys of clients, suppliers, and

employees• “Wallbangers” and “BrainBanger’s

Balls”

Get feedback for the agency’s workGet feedback for the agency’s work

• Recognized as a very creative agency

• Impressive client list: Petco, Whole Foods, Panasonic

• Recognized as a very creative agency

• Impressive client list: Petco, Whole Foods, Panasonic

Opening Case: Phelps Group

Challenge:Challenge:

Answer:Answer:

Results:Results:

Three Players in the Golden Triangle

IMC in Action: Mall of America

Promote Mall of America’s 10th anniversaryPromote Mall of America’s 10th anniversary

An IMC campaign featuring:• The theme: “Celebrating a decade of

fun”• Effort to involve as many media

partners as possible

An IMC campaign featuring:• The theme: “Celebrating a decade of

fun”• Effort to involve as many media

partners as possible

• USA Today front page story

• CBS Sunday Morning piece

• AP story carried by 30 newspapers

• USA Today front page story

• CBS Sunday Morning piece

• AP story carried by 30 newspapers

IMC In Action: Mall of America

Challenge:Challenge:

Answer:Answer:

Results:Results:

1st Part of Golden Triangle: The Agency

Relationship MarketingRelationship Marketing

EventsEvents

IMCIMC

AdvertisingAdvertising Direct MarketingDirect Marketing

Public RelationsPublic Relations PackagingPackaging

Relationship Marketing

Relationship Marketing

Public RelationsPublic Relations PackagingPackaging

IMCIMC

EventsEvents

Direct Marketing

Direct MarketingAdvertisingAdvertising

Sales Promotion

Sales Promotion

Most Common Types of Agencies

AgenciesAgencies

Tales From the Real World

In an attempt to attract new clients, some ad agencies have jumped on the IMC bandwagon and now position themselves as “IMC agencies.”

In the real world, it’s important to look deeper: some of these agencies simply say they can handle IMC but really don’t have the organization or experience to adequately address all the IMC functions

2nd Part of Golden Triangle: The Media

Media Depend on Outside Sources

To make a profitTo make a profitAdvertisersAdvertisers

ContentContentTo fill time and space:

• TV and radio: programming• Newspaper: news and

features

To fill time and space:• TV and radio: programming• Newspaper: news and

features

Touchstone Pictures LogoTouchstone

Pictures Logo

ABC LogoABC Logo

Disney Channel Logo

Disney Channel Logo

Disney Store Logo

Disney Store Logo

Disney World Logo

Disney World Logo

Fox Kids LogoFox Kids Logo ESPN LogoESPN Logo

Disney OnlineDisney Online

Ultimate form of integration: Disney

MediaIntegration@ Disney

MediaIntegration@ Disney

3rd Part of Golden Triangle: Companies

Two Types of Marketing Efforts

B2CB2C

B2BB2B

Some Firms Do Both: Nike

B2BB2B

Nike’s Relationship with shoe retailers like Foot Locker

B2CB2C

Niketown stores selling shoes directly to consumers

Example of Centralized Control

Example of Decentralized Control

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Agency/Media/Company Compensation

Commission: A payment that represents a percentage of a client’s total media spending

Cost of media advertising: Rs. 5 million (100%)

Amount agency bills to client: Rs. 5 million (100%)

Amount agency pays media Rs. 4.25 million (85%)

Amount agency keeps 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.

Provides a Rational ProcessProvides a Rational Process

Informs Everyone of ExpectationsInforms Everyone of Expectations

Ensures That the Program Is IntegratedEnsures That the Program Is Integrated

Helps Identify BudgetHelps Identify Budget

Creates a Benchmark for Measuring Results

Creates a Benchmark for Measuring Results

Provides a Rational ProcessProvides a Rational Process

Informs Everyone of Expectations

Informs Everyone of Expectations

Ensures That the Program Is Integrated

Ensures That the Program Is Integrated

Helps Identify BudgetHelps Identify Budget

Reasons for IMC Planning

IMCPlanningReasons

IMCPlanningReasons

Department Plan:• Marketing

operations/production, human resources

Department Plan:• Marketing

operations/production, human resources

Department Level

Department Level

Business Plan:• Focused on

the profits and brand equity

Business Plan:• Focused on

the profits and brand equity

Corporate Level

Corporate Level MC LevelMC Level

IMC plan:• Advertising,

publicity, sales promotion, events and sponsorships, direct response

IMC plan:• Advertising,

publicity, sales promotion, events and sponsorships, direct response

Where it Fits in the Organization

Insight: Cross-Functional IMC 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

Some basic principles for managing cross-functional teams:

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

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

Bibliography

The End:

"Never worry about numbers. Help one person at a time, and always

start with the person nearest you." - Mother Teresa