mrk317 integrated marketing communications the advertising industry in canada regulations in canada
TRANSCRIPT
MRK317Integrated Marketing
Communications
The Advertising Industry in Canada
Regulations in Canada
Participants in the IMC Process
Figure 16-1
Participants in the IMC Process
Advertiser (Client)Key participants in the processHave the products, services, or causes to be
marketedProvide funds to pay for advertising/promotions
Advertising AgencyAn outside firm that that specializes in the
creation, production, and/or placement of the communications message
Participants in the IMC Process
Media Organizations Provide an environment for the firm’s marketing
communications message
Specialized Marketing Communications Services Include direct marketing agencies, sales promotion
agencies, interactive agencies, and public relations firms
These organizations provides services in their areas of expertise
Management Issues of Advertising Agencies
Advertising Agency Decision In-House Agency OptionAdvertising Agency Option
Full Service Advertising Agencies
Account ServicesMarketing ServicesCreative ServicesManagement and FinanceStructure
Account Services
Account services is the link between the ad agency and the client
The account executive is responsible for interpreting the advertiser’s needs to the agency
Account Services
Coordinates agency efforts in planning, creating, and producing ads
Presents agency recommendations and obtains client approval
Marketing Services
Research DepartmentGather, analyze, and interpret information
important in developing advertisements
Media DepartmentAnalyzes, selects, and contracts for space or
time in the media selected for the client
Creative Services
Copywriters are responsible for the creation and execution of advertisements
May be involved in determining the basic appeal or theme of the campaign
The art department is responsible for how the ad looks
Creative Services
Coordinating the creative and production processes can often be a major problem
A traffic department coordinates all phases of production to ensure all deadlines are met
Management and Finance
Advertising agencies must be managed and perform operating functions such as accounting, human resources, etc.
Must generate new business
Bulk of an agency’s income goes to salary and benefits for employees
Other Types Of Agencies and Services
Creative Boutiques
Media Buying Services
Creative Boutiques
Creative boutiques have developed in response to desires to utilize outside creative talent only
Clients may believe extra creative effort is required or its employees do not have sufficient skills
Boutiques usually perform creative functions on a fee basis
Media Buying Services
Independent companies that specialize in the buying of media, particularly radio and television
Agencies and clients usually develop their own media strategies and hire a buying service to execute them
Media buying services have grown in recent years as clients seek alternatives to full-service agency relationships
Paid a fee or commission for their work
Agency Compensation
Commissions from Media
Other Compensation SystemsFee ArrangementCost-Plus Agreement Incentive-Based CompensationPercentage Charges
Gaining and Losing Clients
Poor performance or servicePoor communicationUnrealistic demands by the clientPersonality conflictsPersonnel changes
Gaining and Losing Clients
Changes in the size of the client or agencyConflicts of interestChanges in the client’s corporate and/or
marketing strategyDeclining salesConflicting compensation philosophiesChanges in policies
Advertising Regulation in Canada
Canadian Radio-television and Telecommunications Commission (CRTC)
Regulation of Tobacco Advertising
Quebec Regulations on Advertising to Children
Advertising Standards Council (ASC)
CRTC
Mandate is to ensure the Broadcasting Act of 1991 and Telecommunications Act of 1993 are upheld throughout Canada
Make certain that all Canadians can receive broadcasting and telecommunications services
CRTC
Advertising aspects regulated:Advertising Limits Infomercials900 numbersAlcohol and drugs
Not covered:False and misleading ads Internet
Regulation of Tobacco Advertising
Restricted by Health Canada regulations on their use of traditional advertising media
Sponsor various arts, cultural, and sporting events (discontinued in 2003)
Regulation of Tobacco Industry
Print ads communicating sponsorships were only permitted advertising
Underground marketing has emerged, communication of brands occurs through exclusive distribution in select bars, pubs and nightclubs
Quebec Regulations on Advertising to ChildrenConsumer Protection Act of Quebec
It is illegal to direct commercial messages to persons younger than 13
Concerns the product, the way the ad is presented, and the time and place the ad is shown
Advertising Standards Council (ASC)Not-for-profit, self regulatory, industry body
with mandate to create and maintain community confidence in advertising
Represents advertisers media organizations and advertising industry suppliers
ASC
Canadian Code of Advertising StandardsDescribes what is not acceptable advertisingPertains to the content of ads only Intention is to provide standards so that
responsible and effective advertising resultsGender Portrayal Guidelines
Ensure that women and men are portrayed appropriately in advertising
ASC
Complaint ProcessHandles complaints in three streamsConsumer complaints: from ordinary citizens
who believe an ad is unacceptableSpecial interest groups: from a demonstrated
organization that expresses a unified viewpointTrade disputes: complaints from other
advertisers
ASC
Complaints ReportComprehensive annual report Identification of advertisers and the details of all
complaintsClearance Process
AlcoholCosmeticsNon-prescription drugs Ads directed towards childrenFood
Ethical Effects of Advertising
Advertising as Untruthful or Deceptive
Advertising as Offensive or Bad Taste
Advertising and Children
Examples of Shock Ads
Many People Found Benetton’s “Sentenced to Death” Campaign Offensive
Advertising is Used to Address Social Problems
Using Advertising to Fight the War on Drugs