Dr.

Mohua Banerjee

 Advertisers (clients) Advertising agency

Media organizations
MC specialist organizations Provider of collateral services

Have the products/services/causes to be marketed Provide the funds for advertising & promotions

Develop the marketing program

Perform activities through own advertising department or outside advertisement agency

Make final decisions regarding advertising and promotional program

The centralized system

The decentralized system (including category management system) In-house agencies

Advertising manager controls the entire promotion operations:

Planning & budgeting developing plans for approval by management; planning media schedules; recommending promotions program Coordinating creation of ads with other depts. involving marketing functions; with outside agencies for media buying services to place ads
Monitoring and administering organize ad dept.; supervise, control activities; work with production, media, art, copy, sales promotion

Assign each product/brand to a brand manager responsible for total management of the brand develop marketing program, identify target markets, develop IMC to differentiate the brand

Brands compete against each other within the company, not just against outside competitors
Role of marketing services is to assist brand managers in planning and coordinating IMC

Category managers - additional layer of management above brand managers to coordinate efforts of all brand managers handling related group of products Advertising manager - authority to override brand managers decisions; coordinates with agencies to obtain media discounts

Advertising agency set up, owned, operated by the advertiser Given a separate identity and responsible for expenditure of advertising budget

Companies combine in-house efforts with outside agencies

Internal creative dept. handles design of weekly circulars, direct-mail pieces, in-store displays, promotions (merchandising, sales promo) Outside agencies develop branding, image-oriented ads for specific TV & print matter (creative media services)

Outside firm

Specializes in the creation, production, placement of communications message, other services to facilitate marketing and promotions process
Agency staff includes artists, writers, media analysts, researchers with specific skills, knowledge and experience Large advertisers retain number of agencies for marketing number of products Vast experience (Ex. ad agency handling travelrelated account)

Creative services creation & execution of ads

Copywriter individuals who conceive ideas for ads, write headlines, subheads, body copy Art department how the ad looks; art director, graphic designer

Layouts drawings that show what ad will look like (print ads)
Storyboard sequence of frames that depict the commercial in still form (TV ads) Production department hire printers, engravers, photographers, typographers to complete finished product

Account services (liaison) link between ad

agency and client

Account executive responsible for understanding advertisers promoting needs and interpreting them to agency personnel

Marketing services (other ancillary depts.)

Research dept. gather, analyze information useful in developing ads for clients
Account planners individuals who gather information about target audience that is relevant to client and work with account executives, creative team members, media specialists

Media dept. analyzes, selects, contracts for space or time in the media that is used to deliver clients advertising message; develops media plan Sales promotion dept. develops contests, premiums, promotions, POS materials

Management & finance

Performs basic operating and administrative functions accounting, finance, HR

Ad agency must generate new business

64% of income goes to salary and benefits for employees

Small ad agencies that provide only creative services Staff includes only writers and artists; no media, research, other activities Companys desire to maintain control of other functions internally Full-service agencies subcontract work to them when busy

Has program content that attracts consumers so that advertisers and agencies will want to buy time or space with them Provides entertainment or information to viewers, readers or subscribers Provides environment for firms marketing communication message

Sells itself as a way for companies to reach their target markets with their messages effectively

Companies that specialize in the buying of media, particularly radio and television time Clients and agencies develop their own media strategies and hire the buying service to execute them They receive large discounts and can save client/agent money on media purchases

Provide services in their area of expertise:

Direct marketing agency companies communicate with consumers through telemarketing, direct mail, internet (database management)
Sales promotion agencies develops contests, sweepstakes, premium offers, sampling programs Interactive agencies develop websites for the Internet, banner ads, search engine optimization, text messages, CD-ROMs (digital media)

PR firms generate publicity for a company & its products, focus on relationships & communications with relevant publics

Include marketing research companies, package design firms, consultants, photographers, printers, video production houses, event marketing companies Provide wide range of support functions used by advertisers, agencies, media organizations, MC specialist organizations develop brochures, POP materials, etc.