IMC Partners & Industry Organization
Chapter Outline
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
Communications
Dominated by Advertising
Agencies
More Use of Other
Marketing
Communications
Functions
Focus on mass media
Willingness to consider
other media to reach
consumers
Opening Case: Phelps Group
Opening Case: Phelps Group
Challenge:
Get feedback for the agencys work
Answer:
The Wall of ideas
Surveys of clients, suppliers, and
employees
Wallbangers and BrainBangers
Balls
Results:
Recognized as a very creative
agency
Impressive client list: Petco, Whole
Foods, Panasonic
Three Players in the Golden Triangle
IMC in Action: Mall of America
IMC In Action: Mall of America
Challenge:
Answer:
Results:
Promote Mall of Americas 10th
anniversary
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
1st Part of Golden Triangle: The Agency
Most Common Types of Agencies
Advertising
Direct
Marketing
Sales
Promotion
Events
Agencies
Relationship
Marketing
Public
Relations
IMC
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
Think About It
Agencies
Now that you have learned about different
types of agencies, at which would you prefer
to work?
2nd Part of Golden Triangle: The Media
Media Depend on Outside Sources
Advertisers
Content
To make a profit
To fill time and space:
TV and radio: programming
Newspaper: news and
features
Ultimate form of integration: Disney
Disney
Store Logo
Disney
World Logo
Disney Online
Touchstone
Pictures Logo
ABC Logo
Media
Integration
@ Disney
Fox Kids Logo
Disney
Channel Logo
ESPN Logo
3rd Part of Golden Triangle: Companies
Two Types of Marketing Efforts
B2B
B2C
Some Firms Do Both: Nike
B2B
Nikes Relationship with shoe retailers
like Foot Locker
B2C
Niketown stores selling shoes directly
to consumers
Figure 2-3: Example of Centralized Control
Figure 2-4: Example of Decentralized Control
IMC In Action: Selling America
IMC in Action: Selling America
Challenge:
Answer:
Results:
Improve Americas image after 9/11
An IMC program featuring:
Booklet produced in 14 languages
Program to teach English in Middle
East colleges
Eastern
colleges
Radio Sawa, an Arab-language
version of Voice of America
Too early to tell
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
$5 million
(100%)
$5 million
(100%)
$4.25 million (85%)
$750,000
(15%)
Commission = $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
The End:
"Never worry about numbers. Help
one person at a time, and always start
with the person nearest you."
- Mother Teresa
