IMC Partners & Industry Organization

Changing World

Old World New World

Marketing
Marketing More
More Use
Use of
of Other
Other
Communications
Communications Marketing
Marketing
Dominated
Dominated by
by Advertising
Advertising Communications
Communications
Agencies
Agencies Functions
Functions

Willingness
Willingness to
to consider
consider
Focus
Focus on
on mass
mass media
media other
other media
media to
to reach
reach
consumers
consumers
Three Players in the Golden Triangle
1st Part of Golden Triangle: The Agency
Most Common Types of Agencies

Direct
Direct
Advertising
Advertising Marketing
Marketing

Sales
Sales Events
Events
Promotion
Promotion
Agencies
Agencies
Relationship
Relationship IMC
IMC
Marketing
Marketing

Public
Public Packaging
Packaging
Relations
Relations
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
Think About It

Agencies
Now
Now that
that you
you have
have learned
learned about
about different
different
types
types of
of agencies,
agencies, at
at which
which would
would you
you prefer
prefer
to
to work?
work?
2nd Part of Golden Triangle: The Media
Media Depend on Outside Sources

Advertisers
Advertisers To
To make
make aa profit
profit

To
To fill
fill time
time and
and space:
space:
Content
Content •• TV
TV andand radio:
radio: programming
programming
•• Newspaper:
Newspaper: news news and
and
features
features
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: 50 Lacs (100%)
Amount agency bills to client: 50 Lacs (100%)
Amount agency pays media 42,50,000 (85%)
Amount agency keeps 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