MAIN PARTICIPANTS IN
THE IMC PROCESS
1) Advertisers (Clients)
2)Advertising Agencies
Key participants in the IMC Decision Process
1) MArketing Personnel
2) Top Management
3) Internal Responsibility for IMC
Main Organization approaches
1) Advertising Department:
2)Decentralized System:
3) .In-House Agency
The Decentralized System
In a decentralized system, each product line or division is
managed independently
Advantages of a Decentralized System:
-Greater focus on individual brands.
-Faster response to market changes and product specific issues.
- Increased flexibility in advertising and promotional
decisions.
Disadvantages of a Decentralized System
-Brand managers may lack comprehensive advertising
expertise.
-Risk of internal competition for resources and management attention.
-Short-term focus may neglect long-term brand strategy.
Definition of In-House Agency
An in-house agency is an advertising agency that is set up,
owned, and operated by the advertiser.
Reasons Companies Use In-House Agencies
-Cost Savings
-Control & Integration
-Faster Execution
-Market Knowledge
-stability
-Adaptability to Digital Tools
Challenges and Criticisms of In-House Agencies
-lack of Objectivity
-Limited Creativity
-reduced Flexibility
-Risk of Stagnation
-Strategic Limitations
The Centralized System
The advertising or
marketing communications manager supervises
promotional activities and may handle:
1) Administration and Execution
2)Coordination with Other Departments
3)coordination with External Services
Disadvantages of a Centralized System:
1) Limited understanding of individual product strategies.
2) Slower response times to brand-specific issues.
3)Inefficiency when managing multiple brands or diverse
product line
Advantages of a Centralized System:
1)Improved communication and consistency across
promotional efforts.
2) Easier participation for top management in decisionmaking.
3) Cost efficiency through streamlined operations and
fewer personnel.
Types of AD AGENCIES
1)Account Services
2)Marketing Services
3)Media Services
4)Creative Boutiques
5)Media Specialist Companies
how are agencies compensated?
1)Commissions
2)fee arrangements
3) Percentage charges
Ways Agencies gain clients
1)Referrals:
2)Solicitations
3)Presentations
4)Public Relations
