IMC Partners & Industry Organization

1. IMC Partners & Industry Organization LECTURE-21

2. 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?

3. More Use of Other Marketing Communications Functions Willingness to consider other media to reach consumers Chapter Perspective: Changing World Old World New World Marketing Communications Dominated by Advertising Agencies Focus on mass media

4. Opening Case: Phelps Group +

5. Get feedback for the agency’s work Challenge: • “The Wall” of ideas • Surveys of clients, suppliers, and employees • “Wallbangers” and “BrainBanger’s Balls” Answer: • Recognized as a very creative agency • Impressive client list: Petco, Whole Foods, Panasonic Results: Opening Case: Phelps Group

6. Three Players in the Golden Triangle

7. IMC in Action: Mall of America

8. Promote Mall of America’s 10th anniversary Challenge: • An IMC campaign featuring: • The theme: “Celebrating a decade of fun” • Effort to involve as many media partners as possible Answer: • USA Today front page story • CBS Sunday Morning piece • AP story carried by 30 newspapers Results: IMC In Action: Mall of America

9. 1st Part of Golden Triangle: The Agency

10. Advertising Direct Marketing Sales Promotion Events Relationship Marketing IMC Public Relations Packaging Most Common Types of Agencies Advertising Direct Marketing Events Agencies Relationship Marketing IMC Public Relations Packaging

11. 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

12. 2nd Part of Golden Triangle: The Media

13. Advertisers To make a profit • To fill time and space: • TV and radio: programming • Newspaper: news and features Content Media Depend on Outside Sources

14. Disney Store Logo Disney World Logo Disney Online ABC Logo Touchstone Pictures Logo Disney Channel Logo Fox Kids Logo ESPN Logo Ultimate form of integration: Disney MediaIntegration@ Disney

15. 3rd Part of Golden Triangle: Companies

16. Two Types of Marketing Efforts B2B B2C

17. B2B Nike’s Relationship with shoe retailers like Foot Locker B2C Niketown stores selling shoes directly to consumers Some Firms Do Both: Nike

18. Example of Centralized Control

19. Example of Decentralized Control +

20. 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

21. IMC Planning Starts at Zero Zero-based planning A process that determines objectives and strategies based on current brand and marketplace conditions

22. 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.

23. Provides a Rational Process Informs Everyone of Expectations Ensures That the Program Is Integrated Helps Identify Budget Creates a Benchmark for Measuring Results Reasons for IMC Planning Provides a Rational Process Informs Everyone of Expectations IMCPlanningReasons Ensures That the Program Is Integrated Helps Identify Budget

24. Corporate Level Department Level MC Level • Business Plan: • Focused on the profits and brand equity • Department Plan: • Marketing operations/production, human resources • IMC plan: • Advertising, publicity, sales promotion, events and sponsorships, direct response Where it Fits in the Organization

25. 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

26. 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

27. 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

28. The End: "Never worry about numbers. Help one person at a time, and always start with the person nearest you." - Mother Teresa