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Part Two Integrated Marketing Program Situation Analysis
Belch: Advertising and
Promotion, Sixth Edition
II. Integrated Marketing
Program Situation Analysis
Specialized Services
3. Organizing for
Advertising & Promotion
© The McGraw−Hill
Companies, 2003
Many companies assign the development and implementation of their
promotional programs to an advertising agency. But several other types
of organizations provide specialized services that complement the
efforts of ad agencies. Direct-response agencies, sales promotion agencies, and public
relations firms are important to marketers in developing and executing IMC programs
in the United States as well as international markets. Let us examine the functions
these organizations perform.
Direct-Response Agencies
One of the fastest-growing areas of IMC is direct marketing, where companies communicate
with consumers through telemarketing, direct mail, and other forms of
direct-response advertising. As this industry has grown, numerous direct-response
agencies have evolved that offer companies their specialized skills in both consumer
and business markets. Figure 3-10 shows the top 10 direct-response agencies (several
of which, including OgilvyOne, DraftWorldwide, and Grey Direct Marketing, are
divisions or subsidiaries of large ad agencies).
Direct-response agencies provide a variety of services, including database management,
direct mail, research, media services, and creative and production capabilities.
While direct mail is their primary weapon, many direct-response agencies are
expanding their services to include such areas as infomercial production and database
management. Database development and management is becoming one of the most
important services provided by direct-response agencies. Many companies are using
database marketing to pinpoint new customers and build relationships and loyalty
among existing customers. 32
A typical direct-response agency is divided into three main departments: account
management, creative, and media. Some agencies also have a department whose function
is to develop and manage databases for their clients. The account managers work
with their clients to plan direct-marketing programs and determine their role in the
overall integrated marketing communications process. The creative department consists
of copywriters, artists, and producers. Creative is responsible for developing the
direct-response message, while the media department is concerned with its placement.
Like advertising agencies, direct-response agencies must solicit new business and
have their performance reviewed by their existing clients, often through formal assessment
programs. Most direct-response agencies are compensated on a fee basis,
although some large advertisers still prefer the commission system.
Sales Promotion Agencies
Developing and managing sales promotion programs such as contests, sweepstakes,
refunds and rebates, premium and incentive offers, and sampling programs is a very
complex task. Most companies use a sales promotion agency to develop and administer
Figure 3-10 Top 10 direct-response agencies
Rank Agency (Affiliation) Headquarters
1 Euro RSCG Marketing Services New York
2 Draft Worldwide Chicago
3 OgilvyOne Worldwide Interactive New York
4 Rapp Collins Worldwide New York
5 Wunderman New York
6 Digitas New York
7 MRM Partners Worldwide New York
8 Brann Worldwide New York
9 Proximity Worldwide New York
10 Grey Direct Marketing Group New York