Presentation on IMC Article [Elegant (VI)]

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Presentation of the article "Integrated Marketing Communications in U.S. Advertising Agencies: An Exploratory Study" It is taken from September-October 1997 Journal of Advertising Research...

Transcript of Presentation on IMC Article [Elegant (VI)]

Page 1: Presentation on IMC Article [Elegant (VI)]

toOur

Presentation

Page 2: Presentation on IMC Article [Elegant (VI)]

We are

“Elegant (VI)”

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Group Profile

Name Roll Designation

Anjuman Ara 215 Member

Md. Abdur Rakib 375 Member

Chowdhury Omor Faruque 377 Leader

Md. Al Amin 419 Member

Rumana 427 Member

Md. Moben Ahmed 526 Member

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Chowdhury

Omor FaruqueID No: 377

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“Integrated Marketing Communications

in U.S. Advertising Agencies:

An Exploratory Study”

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of the Article

Summary

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Objective of the Study

3Related

Objectives

1. Deepen

understanding of how

& in what areas IMC is

developing in U.S.

2. Examine extent to

which major U.S.

advertising agency

executives are

developing, practicing,

or utilizing IMC for

clients3. Understand

importance & value of

traditional advertising

agencies where IMC is

becoming more

important

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Preview of the Finding

This paper reviews the development of the concept ofIMC in terms of its theoretical foundations through anexploratory study of IMC within a judgment sample ofU.S. advertising agencies (total estimated billings-$20.4billion). It considers the arguments advanced from bothacademic & practitioner sides in relation to what IMC is& whether it offers significant value to advertisingagencies & their clients in the rapidly changingcommunications market space leading toward the nextmillennium.

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Major Area of Findings

1. Who responded?

2. Amount of time devoted to client IMC programs

3. How agencies are compensated for IMC

4. IMC impact on budgets

5. Are there barriers to IMC implementation?

6. Reactions of IMC Definition

7. Perceived Barriers to IMC Programs

8. IMC & Measurement.

9. Internal Beliefs and Considerations about IMC

10. Perceived Interaction among Different Communication

Agencies

11. IMC measurement Issues

12. Marketing Communication Criteria

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Md. Moben

AhmedID No: 526

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Amount of Time

Devoted to IMC Agency

Agency

Size

Amount of Time

Devoted

Total

Number

% of That Agency

Size

Small Under 10%

10% - 49%

50% - over 75%

8

20

41

11.59

28.99

59.42

Total 69 100.00

Medium Under 10%

10% - 49%

50% - over 75%

1

12

11

4.17

50.00

45.83

Total 24 100.00

Large Under 10%

10% - 49%

50% - over 75%

4

14

10

14.29

50.00

35.72

Total 28 100.00

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Client Budget Changes

in 1996

Client Budget

Will

No. for All Clients

% of Total Agencies

No. for the Integrated

Clients

% of Total Agencies

Increase 92 73.0 84 66.6

Remain the same

25 19.8 32 25.4

Decrease 4 3.1 5 4.0

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Compensation System

Mode of

Compensation

Number of Agencies

Full Commission 47

Reduced Commission 32

Fee 82

Project Basis 51

Mix of Commission & Fee 77

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Md. Abdur

RakibID No: 375

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What is IMC?

Database

Mkt.

E-Active

Mkt.

Sponsorship

Alternative

Mkt.

Advertising

Sales

Promotion

Personal

Selling

PR

Direct

Response

Mkt.

Clarity + Consistency

+ Maximum Communication Impact

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Today’s Popular Media

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Barriers to IMC Implementation

IMC programs at one agency help bring client SBUs together Require client staff to be more generalist IMC means client staff have to develop new . Skills Clients decide the “what” & “how” of IMC programs Client centralization difficulties Client staffs lack expertise Goes against client’s corporate culture Over dependence on single supplier implies additional staff to manage programsmodification difficulties Increased cost Integrated agencies do not have talents in all areas Organizational structures constrain IMC development.

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Md.

Al AminID No: 419

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Success Issue of IMC

A successful IMC program is developed by the combination ofthe internal & external belief of the organization. IMC Company& the client have to work with hand in hand to solve issue. An

IMC plan success depends on the several issues like

Control of the IMC Company

Budgeting of the clients

Solution pattern &

Effective measurement strategy of the organization

One of the challenges to further adoption if IMC will be degree

to which various groups across organizations grasp the concept& implement the process of IMC.

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Can One Agency Do IMC?

IMC organization expects that clients work with onlythem with a single issue. A research also shows thatclients also do not work with the several affiliatedcompany. Clients may be expecting more involvementin several issues sometimes cause some problem to theorganization and the clients. Agency would not expectto do the clients sales and marketing activities or thepublic promotion activities. They are expecting theseissues always put on the shoulders of the marketers.

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Anjuman

AraID No: 215

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IMC & Measurement

Clients & agencies do notperceive IMC as avoidingthe issue of measurement.

No strong agreement oneffective measurement

No clear answer abouthow to measure IMCprogram

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Suggestions for Measurement

Each

element

needs to be

measured

individually

The total

program

should be

evaluated

against its

objectives &

goals

The

objective

should be

measurable

Results

should be

measured

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Is IMC a Fad?

IMC does not appear to be afad.

It is being driven into clientorganizations due to realbusiness needs.

Now agency executivesacknowledge that some ofthe traditional rules ofcommunication & marketingare changing there issubstantial change incommunication objectives &attitudes.

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Rumana

ID No: 427

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Discussion

We have attempted to develop & provide baseline of how

IMC is developed & agency leader believe IMC is an

important concept & approaches. IMC program should

be evaluated & integration & IMC are good ideas.

Agency executive agreed that integration must come

from the client. It does appear that IMC has moved from

“What is it?” to “Howcan we do it?”.

Stage of development in the U.S.A compensation &

measurement issues are important. The issue of how

agency can become skilled & capable of in all areas of

communication. Agency executive either had no strong

feelings of how to respond to the challenges which IMC

represents.

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Directions for Future Research

Compensation, measurement & IMC development interms of execution & implementation of integratedprogram appear to be the key areas for future research.Measurement issues particularly important IMC approachis better than the traditional approach agencies havebeen using. Measurement would appear to be a keyelement for future research.The second major area for additional research is that ofhow well clients & agencies should work together todevelop & implement an IMC program. One of the majorissues for the academic community if IMC is to develop atheory base is to develop a more acceptable or relevantdefinition.

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Thank youfor

being with us