LECTURE-14

IMC Partners & Industry

Organization

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?

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 agencys
agencys 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 BrainBangers
BrainBangers
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 Americas
Americas 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

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, its important to look deeper:
some of these agencies simply say they can
handle IMC but really dont have the
organization or experience to adequately
address all the IMC functions

2nd Part of Golden Triangle: The Media

Media Depend on Outside Sources

Advertisers
Advertisers

Content
Content

To
To make
make aa profit
profit
To
To fill
fill time
time and
and space:
space:
TV
TV and
and radio:
radio: programming
programming
Newspaper:
Newspaper: news
news and
and
features
features

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

Nikes 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
clients total media spending
Cost of media advertising:
Amount agency bills to client:
Amount agency pays media
Amount agency keeps

Rs. 5 million
(100%)
Rs. 5 million
(100%)
Rs. 4.25 million (85%)
Rs. 750,000
(15%)

Commission = Rs. 750,000

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