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Belch: Advertising and
Promotion, Sixth Edition
II. Integrated Marketing
Program Situation Analysis
3. Organizing for
Advertising & Promotion
Developing and implementing an integrated marketing communications program is
usually a complex and detailed process involving the efforts of many persons. As consumers,
we generally give little thought to the individuals or organizations that create
the clever advertisements that capture our attention or the contests or sweepstakes we
hope to win. But for those involved in the marketing process, it is important to understand
the nature of the industry and the structure and functions of the organizations
involved. As can be seen from the opening vignette, the advertising and promotions
business is changing as marketers search for better ways to communicate with their
customers. These changes are impacting the way marketers organize for marketing
communications, as well as their relationships with advertising agencies and other
communication specialists.
This chapter examines the various organizations that participate in the IMC
process, their roles and responsibilities, and their relationship to one another. We discuss
how companies organize internally for advertising and promotion. For most companies,
advertising is planned and executed by an outside ad agency. Many large
agencies offer a variety of other IMC capabilities, including public relations, sales
promotion, and direct marketing. Thus, we will devote particular attention to the ad
agency’s role and the overall relationship between company and agency.
Other participants in the promotional process (such as direct-response, sales promotion,
and interactive agencies and public relations firms) are becoming increasingly
important as more companies take an integrated marketing communications approach
to promotion. We examine the role of these specialized marketing communications
organizations in the promotional process as well. The chapter concludes with a discussion
of whether marketers are best served by using the integrated services of one large
agency or the separate services of a variety of communications specialists.
Before discussing the specifics of the industry, we’ll
provide an overview of the entire system and identify
some of the players. As shown in Figure 3-1,
participants in the integrated marketing communications
process can be divided into five major groups:
the advertiser (or client), advertising agencies, media
organizations, specialized communication services,
and collateral services. Each group has specific roles in the promotional process.
The advertisers, or clients, are the key participants in the process. They have the
products, services, or causes to be marketed, and they provide the funds that pay for
advertising and promotions. The advertisers also assume major responsibility for
developing the marketing program and making the final decisions regarding the advertising
and promotional program to be employed. The organization may perform most
of these efforts itself, either through its own advertising department or by setting up an
in-house agency.
However, many organizations use an advertising agency, an outside firm that specializes
in the creation, production, and/or placement of the communications message
and that may provide other services to facilitate the marketing and promotions
Figure 3-1 Participants in the integrated marketing communications process
Advertiser
(client)
Advertising
agency
Media
organizations
© The McGraw−Hill
Companies, 2003
Participants in the Integrated
Marketing Communications
Process: An Overview
Marketing
communication
specialist organizations
Direct-response
agencies
Sales promotion
agencies
Interactive agencies
Public relations firms
Collateral
services
69
Chapter Three Organizing for Advertising and Promotion