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Module 5

• Promotional Agencies & Ethics in Promotion


Advertising Agencies – Sales promotion
Agencies – PR Firms & Interactive Agencies –
Ethics and social responsibility in IMC
Campaigns - Impact of technology on
MARCOM - Introduction to International
marketing communications, Relevance and
challenges
Structure Of The Advertising &
Promotions World
• Below the line activities & above the line
activities
• Modern advertising began around the mid
nineteenth century
• Volney Palmer in USA first advertising agent
with first ad agency
• He acted as a commission agent, collecting
ads from advertisers and releasing them in
print media
Contd….
• Over the years the ad agency evolved to
include functions that would improve the look
and feel of the ad
• Today advertisers who don’t have large
marketing departments deal with one agency
• Advertisers with many marketing executives
integrate multiple services i.e one agency for
advertising, one for PR, yet another for sales
promotion etc.
Players in the advertising world
1) The Advertiser
-- Raison D‘etre for all advertising
-- Can be an individual or a company
--Total money spent by advertiser gets
accounted for total advertising
• Advertisers can be classified in several ways:
Government Vs Private
Product Vs Service
Multinational Vs National
2) The Agency
• Organisation that deals with the
advertiser in meeting the communication
requirements of the product.
• Agencies include In House Agencies,
direct response Agencies, sales Promotion
Agencies ,PR Firms, Interactive agencies
Contd..
3) The Media Represents the channel through
which the advertisement is carried.
4) The Freelancers are consultants or self employed
professionals who work alone
5) Third Parties are audit firms appointed by
advertiser to evaluate the strategy
6) The Audience
-- Primary Audience who actually buys
-- Secondary Audience who influence the purchase
7) The Regulatory Bodies

• The Government (GOI)


• The Indian Newspaper Society (INS)
• The Indian Broadcasting Federation (IBF)
• The Advertising Standards Council of India
(ASCI)
Promotional/Ad Agency
• Organisation that deals with the
advertiser in meeting the communication
requirements of the product.
• Agencies include In House Agencies,
direct response Agencies, sales Promotion
Agencies ,PR Firms, Interactive agencies
Companies & Ad Agency
Name of the Company Ad Agency
Coke McCann Erickson
Amul DaCunha Communications
Titan , Dove Ogilvy & Mather
Apple, Pepsi TBWA\Media Arts Lab
KitKat JWT
Role/Functions of Advertising Agency
Client Servicing/
Account Planning
Core
Functions Creative ( Art & Copy)

Media (Planning & Buying)


Ad
Agency Studio Operations
Production
Non Core
Functions HR
Finance/Legal and
Administration
Functions of Ad Agencies
• Client Servicing/Account Planning
– Function which interfaces with client
– Client service person has to understand the clients
business in total, marketing strategy and convert it
into advertising strategy
– Sometimes he gets so engrossed on meeting the
clients needs that he tends to overlook consumers
needs.
– It is for this reason another discipline emerged in
ad agencies
Account Planning
• Function intended to keep consumer in focus
• Revolves around understanding the consumer
thoroughly to develop appropriate ad
campaigns
Creative (Art and Copy)
• Creative team is responsible for creative
output in any form
• Team normally consists of someone who is
responsible for written matter called copy
writer and another who is responsible for
visual element called art person.
• These two work as a team on campaign as
written and visual elements have to be in sync
Media (Planning & Buying)
• Media department in ad agency is responsible for
deciding how much money should client spend
on a campaign and across media
• Media planner to prepare the media plan using
clients brief and work with media buyer who is a
able to get good rates from media
• Now a days this has become a part of
independent media houses
• Eg: M Madison Media, Asianet Communications
Studio Operations
• Function of studio in ad agency is to convert
the output of creative department into a
ready format
• Before digitization studio had an important
role but now creative are capable of producing
art-works
• Studio is normally run by studio manager
Production
• Most ad agencies donot possess in house
facilities for production
• Normally outsourced to printers, film
producers etc.
• Production department does the co-
ordination work with outside suppliers
• Run by production manager
HR
• HR department in ad agency looks after all the
recruitment, induction, training and
development, performance appraisal and
compensation of employees
Finance/Legal Administration
• This department keeps the agency afloat
when major clients defaults on payments
Types of Advertising Agencies
• Full Service Agency-Provides a range of
marketing services. Services directly related
to advertising such as copywriting, artwork,
production of ads, media planning etc.
• Direct Response Agencies provide specialised
services which will evoke a desirable
consumer response immediately through the
telephone, a business reply card, a coupon
and so on .
Contd….
• In House agencies-Owned completely by the
advertiser. Can undertake to serve several
other clients, if the owner so desires .
• Pubic Relations Firms- These firms specialize
in providing services that enhance the
goodwill and image of the clients’ companies
amongst its publics, namely, employees,
labour groups, suppliers, government and
other stakeholders.
Contd….
• Their work is to provide inputs to the clients
on the company policies and procedures
• Public relations firms work towards designing,
executing and evaluating PR strategies and
programs.
• They devise an appropriate blend of various
PR tools like, publicity, press release, oral
communication, conferences, speeches,
special events, etc.
Sales Promotion Agencies
• Such agencies specialize in providing services
of designing sales promotional programs
• Identifying suitable sales promotional tools
• Carrying pre-sales promotion evaluation
• Executing the sales promotion program
• Performing post-test for evaluating
effectiveness of sales promotional tools.
Interactive Agencies
• An agency offering a mix of Web
design/development, Internet
advertising/marketing, or E-Business/E-
Commerce consulting.
Contd……
• Creative Boutiques-Provide only creative
functions and not full-service. Copy writing,
artwork and production of ads .
• Leo Burnett, Taproot, O & M
Ethics and Social Responsibility in IMC
Campaigns
• Communicate openly and honestly with
consumers and resellers
• Avoid deceptive or false advertising
• Conform to all country, state, and local
regulations
• Follow rules of “fair competition”
• Do not offer bribes
• Do not attempt to obtain competitors’ trade
secrets
• Do not disparage competitors or their products
Impact of technology on MARCOM
• Availability 24x7
• Interaction
• Time and global accessibility
• Support for multimedia applications
Last Assignment
• Introduction to International marketing
communications, Relevance and challenges
• Date of Submission: 29.09.19

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