IMC Chapter 2

8/10/2019 IMC Chapter 2

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IMC Partners & Industry Organization



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/clientrelationship work?

Chapter Outline





Opening Case: Phelps Group

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• “The Wall” of ideas

• Surveys of clients, suppliers, and

employees

• “Wallbangers” and “BrainBanger’s

Balls”

Get feedback for the agency’s work

• “The Wall” of ideas

• Surveys of clients, suppliers, and

employees

• “Wallbangers” and “BrainBanger’s

Balls”

Get feedback for the agency’s work

• Recognized as a very creativeagency

• Impressive client list: Petco, WholeFoods, Panasonic

Opening Case: Phelps Group

Challenge:

Answer:

Results:



Three Players in the Golden Triangle



IMC in Action: Mall of America



Promote Mall of America’s 10th

anniversary

An IMC campaign featuring:

• The theme: “Celebrating a decade offun”

• Effort to involve as many media partnersas possible

Promote Mall of America’s 10th

anniversary

An IMC campaign featuring:

• The theme: “Celebrating a decade offun”

• Effort to involve as many media partnersas possible

• USA Today front page story

• CBS Sunday Morning piece

• AP story carried by 30 newspapers

IMC In Action: Mall of America

Challenge:

Answer:

Results:



1st Part of Golden Triangle: The Agency



RelationshipMarketing

Events

IMC

Advertising DirectMarketing

PublicRelations

Packaging

RelationshipMarketing

PublicRelations

Packaging

IMC

Events

DirectMarketing

Advertising

Sales

Promotion

Most Common Types of Agencies

Agencies



Tales From the Real World

In an attempt to attract new clients, some adagencies have jumped on the IMC bandwagonand now position themselves as “IMC agencies.”

In the real world, it’s important to look deeper:

some of these agencies simply say they canhandle IMC but really don’t have the

organization or experience to adequatelyaddress all the IMC functions



Think About It

AgenciesNow that you have learned about different

types of agencies, at which would you preferto work?



2nd Part of Golden Triangle: The Media



Media Depend on Outside Sources

To make a profitAdvertisers

ContentTo fill time and space:

• TV and radio: programming

• Newspaper: news and

features

To make a profitAdvertisers



TouchstonePictures Logo

ABC Logo

DisneyChannel Logo

DisneyStore Logo

DisneyWorld Logo

Fox Kids Logo ESPN Logo

Disney Online

Ultimate form of integration: Disney

MediaIntegration@ Disney



3rd Part of Golden Triangle: Companies



Two Types of Marketing Efforts

B2C

B2B



Some Firms Do Both: Nike

B2B

Nike’s Relationship with shoe retailers

like Foot Locker

B2C

Niketown stores selling shoes directlyto consumers



Figure 2-3: Example of Centralized Control

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Figure 2-4: Example of Decentralized Control

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IMC In Action: Selling America



An IMC program featuring:

• Booklet produced in 14 languages

• Program to teach English in MiddleEast colleges

• Radio Sawa, an Arab-languageversion of Voice of America

Improve America’s image after 9/11Improve America’s image after 9/11

An IMC program featuring:

• Booklet produced in 14 languages

• Program to teach English in MiddleEastern colleges

• Radio Sawa, an Arab-languageversion of Voice of America

Too early to tell

IMC in Action: Selling America

Challenge:

Answer:

Results:



Agency/Media/Company Compensation

Commission: A payment that

represents a percentage of a client’s

total media spending

Cost of media advertising: $5 million (100%)

Amount agency bills to client: $5 million (100%)

Amount agency pays media $4.25 million (85%)

Amount agency keeps $750,000 (15%)

Commission = $750,000



Insight: Cross-Functional IMC Teams

• Long-term focus: Keep team members in placefor an extended period rather than assembling

them for ad hoc projects• Constant contact: Frequent meetings areimportant; however, members can also keep inconstant contact via email

• Work space: Assigning a cross-functional team

its own work space helps keep team membersinformed

• Support from the top: Top management mustsupport the idea of cross-functional planning byproviding adequate resources

Some basic principles for managingcross-functional teams:





The End:

" Never wor ry about numbers. Help

one perso n at a t ime, and always startw i th the person nearest you."

- Mother Teresa

IMC Chapter 2

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