3-IMC Partners and Cross-Functional Organization

8/10/2019 3-IMC Partners and Cross-Functional Organization

1/29

1

IMC Partners and Cross-FunctionalOrganization


2/29

2

Organizational PerspectiveOrganization is the Foundation of IMC

Since there are so many partners involvedin managing brand relationships,integration is an organizational challenge.

IMC often involves organizationalrestructuring. A company cannot build relationships

externally until it builds them internally.


3/29

3

Overview of theMarketing Communication Business

Basic players in today s marketplace:OrganizationsMedia

Agencies

This creates a golden triangle, where customers are at the center ofthe planning.


4/29

4

The Golden Triangle


5/29

5

Key Points About the TriangleOrganization within the triangle can exist only if there are:

Media to deliver brand messages

Customers to buy goods and servicesHowever:

Media can exist only if they sell enough advertising.Customers must have knowledge of the products they needor want in order to buy.

As companies grow, the triangle becomes more complex.


6/29

6

The Bigger Picture of the

Marketing Communication Players


7/29

7

The Corporate Side

Both for-profit and not-for-profit organizations are businesseswith customers and other stakeholders with whom they

communicate and build relationships.Departments within businesses are often job specific.Divisions are usually organized by product, market, orgeography.The more departments and divisions, the harder it is tocoordinate marketing objectives, strategies, and brandmessages.

A single product line may be a strategic business unit (SBU).


8/29

8

Traditional Corporate

Organization


9/29

9

Project-based Organization


10/29

10

Roles and PositionsIn larger companies, where there are multiplebrands or product offerings, there may be specificbrand managers or product managers.Frequently there is tension between sales andmarketing.

Larger companies often have a separatedepartment to handle the marketingcommunication responsibilities, which is oftenknown as marketing services.


11/29

11

Cross-functional

Planning and Management A basic principle of IMC: Critical processes that affect

customer relationships involve more than one department.Cross-functional planning involves many departments and

functions.Benefit of the cross-functional IMC team is to:

Ensure consistency in all brand messages.Make sure the big creative idea is integrated in all messages.

Coordinate the timing and scheduling of the various MCprograms.Help employees become less myopic.

Primary purpose: To improve internal communication.


12/29

12

Silos


13/29

13

Cross-functional and IMC

TeamsBasic IMC principles for managing cross-

functional teams:Long-term focus .Constant contact .

Work space .Support from the top .Compensation .


14/29

14

Agency PartnersIn general, the larger the marketing communications

budget, the more marketing communication

agencies a company will hire.There are many different types of MC specialist

agencies. Most common specialize in: AdvertisingPublic RelationsDirect MarketingSales PromotionPacka in Cor orate Identit


15/29

15

Types of Agency ServicesThe single largest number and type of MC agencies are

advertising agencies. A full-service agency provides all or most of the services

needed in its area of specialization.Key people within an advertising agency include: Account managersCopywriters

Art directorsCreative directorsProducersTraffic managers

Account planners


16/29

16

Poppe Tyson


17/29

17

Agency Networks

Within the MC industry there have been

many mergers and acquisitions, whichhave resulted in large networks orconglomerates of MC agencies.

A second type of agency networkconsists of independent agencies thataffiliate in order to share resources andoffer services on an international level.


18/29

18

Media Buying Services

Media buying services specialize in buying timeand space, that is, placing brand messagesin the media.


19/29

19

How Agencies Specialize

Many companies hire MC agencies thatspecialize in an industry or product category.

Different types of specialty agencies include:Business-to-Business SpecialistsEthnic AgenciesHigh-Tech AgenciesIMC Agencies

In-House Agencies


20/29

20

Public Relation Firms

Like advertising, public relation firms may alsospecialize in certain industries.

Main function of public relations firm is to counselcompanies on how to better manage theirrelationships with their stakeholders.Unlike advertising agencies, most public relationfirms do not have a creative or media department.One of the most valuable attributes a publicrelations firm can have is a good relationship with

the press.


21/29

21

Direct-response Agencies

Direct-response agencies are structured like advertisingagencies. They deal with not only the mass media, but also

mail, email and telemarketing services.Some agencies may also have specialists who analyze and rentdatabases.

Support services include:

Data shopsList BrokersPrintersLetter shops

Creative services


22/29

22

Sales Promotion Agencies

Companies that do a lot of promotions, such aspremium offers, sweepstakes, in-store special

displays, etc. use sales promotion agencies.

These agencies are made up of three groups:

Account service managersCreativesProduction people


23/29

23

Other MC Agencies

Other MC agencies include:Corporate identity agenciesOnline Advertising Agencies


24/29

24

MC Suppliers

MC Suppliers are specialists who help MC

agencies actually produce their work.These suppliers include:

Creative boutiques

Freelancers


25/29

25

Agency Approaches to IMC

The creative, media, research and client service people withinan agency do not always work on the same accounts andare usually located physically away from each other.

Agencies have traditionally been reluctant to integrate otherMC agencies into cross-functional planning.

Three ways agencies can organize themselves to offerintegrated services: Add-on FunctionsReinvention

Lead Agency


26/29

26

Agency Compensation

Methods of payment vary by types of MC

agency and by individual clients.Methods include:Commission

Fee or RetainerMarkupsPerformance-based compensation


27/29

27

Agency EvaluationTwo basic types of evaluations:

Quantitative audits records for billings, etc.

Qualitative surveys responsiveness, thoroughnessmeeting deadlines, etc.Evaluations are beneficial for several reasons:

Company can determine if it is getting its moneysworth

Agency gets valuable feedback Agency and company can determine how to work

better together.


28/29

28

Media Partners

Media partners are an essential set of partners.There have been several changes in the media and in how

companies work with agencies and their clients:New communication technologiesIncrease in media alternativesMedia companies recognize how they can add value to their

delivery systems by expanding their audience informationLarge media conglomeratesMore fragmentation


29/29

29

The Agency/ClientRelationship

The agency/client relationship is critical to thesuccessful functional of an IMC program.Client trust can significantly affect the quality of itsagencys work, the smoothness of the workingrelationship, and the effectiveness of an IMC

program. A clients attitude toward its agency how it seesits agency often determines the level of trust andrespect.

Documents

3-IMC Partners and Cross-Functional Organization