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Part Two Integrated Marketing Program Situation Analysis
Belch: Advertising and
Promotion, Sixth Edition
II. Integrated Marketing
Program Situation Analysis
3. Organizing for
Advertising & Promotion
© The McGraw−Hill
Companies, 2003
Creative Services The creative services department is responsible for the creation
and execution of advertisements. The individuals who conceive the ideas for the
ads and write the headlines, subheads, and body copy (the words constituting the message)
are known as copywriters. They may also be involved in determining the basic
appeal or theme of the ad campaign and often prepare a rough initial visual layout of
the print ad or television commercial.
While copywriters are responsible for what the message says, the art department is
responsible for how the ad looks. For print ads, the art director and graphic designers
prepare layouts, which are drawings that show what the ad will look like and from
which the final artwork will be produced. For TV commercials, the layout is known as
a storyboard, a sequence of frames or panels that depict the commercial in still form.
Members of the creative department work together to develop ads that will communicate
the key points determined to be the basis of the creative strategy for the client’s
product or service. Writers and artists generally work under the direction of the
agency’s creative director, who oversees all the advertising produced by the organization.
The director sets the creative philosophy of the department and may even become
directly involved in creating ads for the agency’s largest clients.
Once the copy, layout, illustrations, and mechanical specifications have been completed
and approved, the ad is turned over to the production department. Most agencies
do not actually produce finished ads; they hire printers, engravers, photographers,
typographers, and other suppliers to complete the finished product. For broadcast production,
the approved storyboard must be turned into a finished commercial. The production
department may supervise the casting of people to appear in the ad and the
setting for the scenes as well as choose an independent production studio. The department
may hire an outside director to turn the creative concept into a commercial. For
example, several companies, including Nike and Kmart, have used film director Spike
Lee to direct their commercials; Airwalk shoes has used John Glen, who directed many
of the James Bond films, for its TV spots. Copywriters, art directors, account managers,
people from research and planning, and representatives from the client side may all participate
in production decisions, particularly when large sums of money are involved.
Creating an advertisement often involves many people and takes several months. In
large agencies with many clients, coordinating the creative and production processes
can be a major problem. A traffic department coordinates all phases of production to
see that the ads are completed on time and that all deadlines for submitting the ads to
the media are met. The traffic department may be located in the creative services area
of the agency, or be part of media or account management, or be separate.
Management and Finance Like any other business, an advertising agency
must be managed and perform basic operating and administrative functions such as
accounting, finance, and human resources. It must also attempt to generate new business.
Large agencies employ administrative, managerial, and clerical people to perform
these functions. The bulk of an agency’s income (approximately 64 percent) goes
to salary and benefits for its employees. Thus, an agency must manage its personnel
carefully and get maximum productivity from them.
Agency Organization and Structure Full-function advertising agencies
must develop an organizational structure that will meet their clients’ needs and serve
their own internal requirements. Most medium-size and large agencies are structured
under either a departmental or a group system. Under the departmental system, each
of the agency functions shown in Figure 3-7 is set up as a separate department and is
called on as needed to perform its specialty and serve all of the agency’s clients. Ad
layout, writing, and production are done by the creative department, marketing services
is responsible for any research or media selection and purchases, and the account
services department handles client contact. Some agencies prefer the departmental
system because it gives employees the opportunity to develop expertise in servicing a
variety of accounts.
Many large agencies use the group system, in which individuals from each department
work together in groups to service particular accounts. Each group is headed by
an account executive or supervisor and has one or more media people, including