Chapter 3

Chapter 3 - Chapter 3 Organizing for Advertising and...

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Chapter 3 Organizing for Advertising and Promotion : The Role of Ad Agencies and Other Marketing Communications Organizations Jan. 23 Participants in the IMC Proccess Advertiser (Client) Advertising agency – design, ad, etc Media organizations – anybody that sells space or time (bullitin boards, newspapers) Marketing Communications Specialist organizations - Direct response Agencies Sales Promotion Agencies - Public relations firms Interactive agencies Collateral services – outside agency (printer, photographer, “trinkets and trash”) Advertising Department Under Centralized System (see power point slide) President [production, finance, marketing, research and development, human resources] + Positive - Negative Better Communications Less Goal Involvement Fewer Personal The Centralized System Longer response time Decentralized Brand Management System (see power point slide) Corporate Merchandising All brand managers compete with one another - Doritos vs Cheetos (fight for shelf space, sales, etc) o Different brands within one company (Lays) + Positive - Negative Concentrated attention Ineffective decision making Rapid Problem Response The Decentralized System Internal conflicts Increased Flexibility Misallocation of funds Lack of authority Supply Chain – ex. Start with farmers who grow corn Ship corn to be processed into chips, sorted Packaging to Warehouse Distributed all over country Put on shelves with groceries
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Chapter 3 + Positive - Negative Cost savings Less experience More control The In-House Agency
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Chapter 3 - Chapter 3 Organizing for Advertising and...

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