The Role of Ad Agencies and Other Marketing Communication Organizations

Clients

Clients

are the key participants in the process.

centralized system

the advertising or marcom manager controls the entire promotions operation

decentralized system

the responsibilities and functions associated with advertising and promotions are transferred to the brand manager, who works closely with the outside advertising agency and other marketing communications specialists as they develop the promotional program.

In-house agency

is an advertising agency that is set up, owned, and operated by the advertiser.

Advertising Agency

is a service organization that specializes in planning and executing advertising programs for its clients

5 types of ad agencies

• full service agency

• Account Services or account management

• Marketing Services

• The Creative Services

• Management and Finance department

Full-service agency

offers its clients a full range of marketing, communications, and promotions services, including planning, creating, and producing advertising; performing research; and selecting media.

Account Services or account management

is the link between the ad agency and its clients. The account executive serves as a liaison who is responsible for understanding the advertiser’s marketing and promotions needs and interpreting them to agency personnel.

Marketing Services

research department whose function is to gather, analyze, and interpret informationthat will be useful in developing advertising for their clients

Account planners

are individuals who gather information that is relevant to the client’s product or service and can be used in the development of the creative strategy as well as other aspects of the IMC campaign.

Media department of an agency

analyzes, selects, and contracts for space or time in the media that will be used to deliver the client’s advertising message

The Creative Services

is responsible for the creation and execution of advertisements.

Copywriters

the individuals who conceive the ideas for the ads and write the headlines, subheads, and body copy (the words constituting the message).

the art department

is responsible for how the ad looks.

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

Management and Finance department

like any other business, an advertising agency must be managed and perform basic operating and administrative functions such as accounting, finance, and human resources

Media organizations

its primary function is to provide information or entertainment to its subscribers, viewers, or readers. But from the perspective of the promotional planner, the purpose of media is to provide an environment for the firm’s marketing communications messages.

Specialized marketing communication services

They include direct marketing agencies, sales promotion agencies, digital/interactive agencies, and public relations firms. These organizations provide services in their areas of expertise.

Direct-response agency

develops and implements direct marketing programs.

Sales promotion agencies

develop promotional programs such as contests and sweepstakes, premium offers, or sampling programs.

Digital/interactive agencies

are being retained to develop websites for the Internet and help marketers as they move deeper into the realm of interactive media.

Public relations firms

are used to generate and manage publicity for a company and its products and services as well as to focus on its relationships and communications with its relevant public.

Collateral services consist of a wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms. These individuals and companies perform specialized functions the other participants use in planning and executing advertising and other promotional functions.

consist of a wide range of support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms. These individuals and companies perform specialized functions the other participants use in planning and executing advertising and other promotional functions.

Communication

defined as the passing of information, the exchange of ideas, or the process of establishing a commonness or oneness of thought between a sender and a receiver.

5 Role of Ad Agencies and Other Marketing Communication Organizations

• Clients

• Advertising Agency

• Media organizations

• Specialized marketing communication servic

• Collateral services

6 ELEMENTS OF THE COMMUNICATION PROCESS

1. The sender or source

2. Message

3. Channel

4. The receiver

5. Noise

6. Response/Feedback

The sender or source

is the person or organization that has information to share with another person or group of people

Message

contains the information or meaning the source hopes to convey

Content

refers to the information and/or meaning contained in the message.

Structure and design

refer to the way the message is put together to deliver the information or intended meaning.

Channel

is the method by which the communication travels from the source or sender to the receiver.

Nonpersonal channels of communication

are those that carry a message without direct, interpersonal contact between the sender and receiver.

they are generally referred to as mass media or mass communications since the message they contain is directed to more than one person and is often sent to many individuals at one time.

Personal channels

involve direct communication between two or more persons and can occur through interpersonal contact (face-to-face) or via other methods such as e-mail or social media.

Word-of-mouth

influence involves informal communication among consumers about products and services and is a very powerful source of information.

Buzz Marketing

includes systematic and organized efforts to encourage people to speak favorably about a company, brand, organization, or issue and often to recommend it to others in their social network.

Viral marketing

refers to the act of propagating marketing-relevant messages through the help and cooperation of individual consumers.

The receiver

is the person(s) with whom the sender shares thoughts or information.

Generally, they are the consumers in the target market or audience who read, hear, and/or see the marketer’s message and decode it.

Decoding

is the process of transforming the sender’s message back into thought.

Field of experience

refers to the experiences, perceptions, attitudes, and values he or she brings to the communication situation.

Noise

is unplanned distortion or interference

Response

is the receiver’s set of reactions after seeing, hearing, or reading the message.

Feedback

which may take a variety of forms, close the loop in the communications flow, and let the sender monitor how the intended message is being decoded and received.

4 Traditional Response Hierarchy Model

• AIDA Model

• Hierarchy of Effects Model

• Innovation Adoption Model

• Information Processing Model of advertising effects

 AIDA Model

• was developed to represent the stages a salesperson must take a customer through in the personal selling process.

• This model depicts the buyer as passing successively through attention, interest, desire, and action.

Hierarchy of Effects Model

• was developed by Robert Lavidge and Gary Steiner as a paradigm for setting and measuring advertising objectives.

• It is the process by which advertising works; it assumes a consumer passes through a series of steps in sequential order from initial awareness of a product or service to actual purchase.

Innovation Adoption Model

• evolved from work on the diffusion of innovations.

• This model represents the stages a consumer passes through in adopting a new product or service and involves the steps preceding adoption are awareness, interest, evaluation, and trial.

Information Processing Model

• was developed by social psychologist William McGuire.

• This model assumes the receiver in a persuasive communication situation like advertising is an information processor or problem solver

Cognitive responses

refer to the thoughts that occur to them while reading, viewing, and/or hearing a communication.

3 stages of receiver analysis

• cognitive stage

• conative stage

• affective stage

Cognitive stage

represents what the receiver knows or perceives about the particular product or brand. This stage includes awareness that the brand exists and knowledge, information, or comprehension about its attributes, characteristics, or benefits.

Affective stage

refers to the receiver’s feelings or affect level (like or dislike) for the particular brand. This stage also includes stronger levels of affect such as desire, preference, or conviction

Conative or behavioral stage

refers to the consumer’s action toward the brand: trial, purchase, adoption, or rejection.

Product/Message Thoughts

thoughts directed at the product or service and/or the claims being made in the communication.

Counterarguments

are thoughts the recipient has that are opposed to the position taken in the message. A consumer may express disbelief or disapproval of a claim made in an ad.

Support arguments

are thoughts that affirm the claims made in the message.

Source-Oriented Thoughts

Thoughts directed at the source of the communication.

Source derogations

negative thoughts about the spokesperson or organization making the claims. Such thoughts generally lead to a reduction in message acceptance.

Source bolsters

mean that the receivers react favorably to the source that generates favorable thoughts.

Ad execution-related thoughts

can be either favorable or unfavorable. They are important because of their effect on attitudes toward the advertisement as well as the brand.