4 - Advertising Management - PART 1 - 3

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Integrated Marketing Communication

(IMC)

Advertising
Management

Part 1

Hamidul Islam Hamid, Fall 2016-2017


The Marketing Landscape

Agency Frameworks

Advertising Campaign
Management
Whats Changing ?
Whats Changing ?
Wheres the Money ?
Decision Criteria: In-house or Outsource to
Agency ?
The size of the account
(company)

The media budget

Campaign objectives

Product complexity

Creative abilities
Decision Criteria: In-house or Outsource to
Agency ?
Use an in-house Agency to:
Allow individuals to become
technical experts on products being
advertised.
Receive priority for client and
clients needs.
Reduce costs, time saving and
greater control.

Use an independent Agency


to:
Get objective advice.
In-house Agencies

In-house Agency:
An in-house agency is an ad agency set up,
owned and operated by the advertiser.
In case of in-house agency, company can easily
control the costs, priority (uniqueness) and co-
ordination.
Many companies use in-house agencies
exclusively; others combine in-house efforts
with those of outside agencies.
For Examples: Mediacom Limited for Square
Group of Companies, Bangladesh, and
Confidence Advertising for Videocon, India.
Types of External Agencies
Full-Service Agency:
An agency that includes the 4 major staff
functions - account management, creative
services, media planning and buying, and
account planning.
For Examples: GREY Advertising Bangladesh
Ltd, Asiatic Marketing Communications Ltd,
Mattraetc.
Types of External Agencies
Specialized Agency:
May specialize in certain functions (copy, art,
media), audiences (minority, youth) or target
customers (B2C, B2B).
May specialize in a marketing
communication area (direct marketing, sales
promotion, public relations, event and sports
marketing etc).
May serve one client (Focus agency).
For Examples: Godfrey (a 100% B2B marketing
agency, form US), RED dot Multimedia Ltd.
Types of External Agencies

Industry-focused Agency:
Concentrate on certain fields or industries
such as construction, agriculture, medicine,
pharmaceuticals and health care etc.
Serve variety of clients from within that
selective field (expert solutions).
For Examples: Construction Marketing Inc.
(a full-service ad agency and marketing firm
specializing in construction industry marketing
from US), Smith & Jones (exclusively focused
on helping hospitals and health systems from
Types of External Agencies

Minority Agency:
An agency that focuses on an ethnic/minority
groups, especially African Americans in USA
and for the tribal groups of Bangladesh.
They are very much focused to their respective
customers and specialized about their works
and delivery.
Niche communication service providers.
For Examples: Axis (an agency for the
multicultural America).
Types of External Agencies
Creative Boutique Agency:
Creative boutique is an agency that provides
only creative services to its clients.
Usually Small advertising agencies that
concentrate entirely on preparing the
creative execution of client marketing
communications.
The full-service agencies also sub-contract
work to creative boutiques.
For Examples: Half Stop Down, by Amitabh
Reza Chowdhury, Chobial, by Mostafa
Sarwar Faruki, RMG David, from India)
Types of External Agencies

Media Buying Services Agency:


Media buying agencies are independent
companies that specialize in the buying of
media, particularly radio and television.
They are in high demand for many reasons
such as media selection, cost and urgent
issues.
For Example: Mindshare (Asiatic
Mindshare A joint venture company), a
complete media planning, buying and
research company.
Types of External Agencies

Virtual Agency:
A virtual advertising agency is pretty much
like a traditional ad agency without the
confines of traditional office walls.
An agency that operates like a group of
freelancers.
Online based customer contacts, order
placement, output delivery and further
discussions between clients and the service
providers.
For Examples: Creative Noggin (a full
service virtual advertising agency from US)
How Agencies are Organized?

Under the CEO, Vice Presidents, and


Functional Directors, there are 5 major
areas in an agency:

Account Management Department:


Acts a liaison between the client and the
agency.
It ensures that the agency will focus its
resources on the clients need.

Creative Development and Production


How Agencies are Organized?
Account Planning and Research
Department:
Full service agencies usually have a separate
department specifically dedicated to account
planning and research.
It gathers intelligence on markets and consumers.

Media Buying and Planning


Department:
Recommends the most effective means of
delivering the message to the target audience.

Internal Services Department:


Key Agency Personnel

ient Marketing Manager


Client Marketing Manager
Client Marketing Manag

Account Executive

Traffic Media
Creative Director Buyers &
Manager
Planners

Creative Creative Creative


How Agencies make Money?

Commission
Amount charged to client as a percentage of
the media cost.

Fee
May vary by department or may be a flat
hourly rate.
Charges are included for out-of-pocket
expenses, travel and standard items.
All charges are billed to the client and no
commission is added to the media cost.
Steps in Choosing an Agency

1. Set goals.
2. Select process and criteria.
3. Screen initial list of applicants.
4. Request client references.
5. Reduce list to 2-3 viable agencies.
6. Request creative pitch.
7. Select agency.
Criteria for Evaluating an Agency

Size of agency
Relevant experience
Conflicts of interest
Creative reputation
Product capabilities
Media purchasing
capabilities
Other services
available
Client retention rates
Steps in Advertising Campaign Management
Reviewing Market Analysis for
Communication
Competitors
Opportunities
Target markets
Customers
Product positioning
Advertising Objectives

To build brand image


Top of mind
First choice
To inform
To persuade
To encourage action
To support other marketing efforts
Advertising Budget & Media Selection

Allocating Budgeting Alternatives for Media


Scheduling

Continuous Scheduling
Flighting Scheduling
Pulsing Scheduling
The Creative Brief

Objective
s
Target
Audience
s
Message
Support
The Creative Brief for Del Monte
Objective increase awareness of the smaller-size cans with
pull-top lid.

Target Audiences senior citizens, especially those that live


alone and suffer from arthritis.

Message/Theme the new cans not only contain a smaller


portion but are easier to open.

Support 30 intro coupon to encourage usage.

Constraints copyright logo, toll free #, Web site, legal


The Creative Brief
for Del Monte

Del Monte
Advertisement
based on the
Creative Brief
in the
previous slide.

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