1. MRK317 Integrated Marketing Communications
The Advertising Industry in Canada
Regulations in Canada

2. Participants in the IMC Process
Figure 16-1

3. Participants in the IMC Process
Advertiser (Client)
Key participants in the process
Have the products, services, or causes to be marketed
Provide funds to pay for advertising/promotions
Advertising Agency
An outside firm that that specializes in the creation, production, and/or placement of the communications message

4. 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

5. Management Issues of Advertising Agencies
Advertising Agency Decision
In-House Agency Option
Advertising Agency Option

6. Full Service Advertising Agencies
Account Services
Marketing Services
Creative Services
Management and Finance
Structure

7. 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

8. Account Services
Coordinates agency efforts in planning, creating, and producing ads
Presents agency recommendations and obtains client approval

9. Marketing Services Research Department Media Department
Gather, analyze, and interpret information important in developing advertisements
Media Department
Analyzes, selects, and contracts for space or time in the media selected for the client

10. 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

11. 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

12. 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

13. Other Types Of Agencies and Services
Creative Boutiques
Media Buying Services

14. 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

15. 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

16. Agency Compensation Commissions from Media Other Compensation Systems
Fee Arrangement
Cost-Plus Agreement
Incentive-Based Compensation
Percentage Charges

17. Gaining and Losing Clients
Poor performance or service
Poor communication
Unrealistic demands by the client
Personality conflicts
Personnel changes

18. Gaining and Losing Clients
Changes in the size of the client or agency
Conflicts of interest
Changes in the client’s corporate and/or marketing strategy
Declining sales
Conflicting compensation philosophies
Changes in policies

19. 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)

20. 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

21. CRTC Advertising aspects regulated: Not covered: Advertising Limits
Infomercials
900 numbers
Alcohol and drugs
Not covered:
False and misleading ads
Internet

22. 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)

23. 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

24. Quebec Regulations on Advertising to Children
Consumer 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

25. 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

26. ASC Canadian Code of Advertising Standards Gender Portrayal Guidelines
Describes what is not acceptable advertising
Pertains to the content of ads only
Intention is to provide standards so that responsible and effective advertising results
Gender Portrayal Guidelines
Ensure that women and men are portrayed appropriately in advertising

27. ASC Complaint Process Handles complaints in three streams
Consumer complaints: from ordinary citizens who believe an ad is unacceptable
Special interest groups: from a demonstrated organization that expresses a unified viewpoint
Trade disputes: complaints from other advertisers

28. ASC Complaints Report Clearance Process Comprehensive annual report
Identification of advertisers and the details of all complaints
Clearance Process
Alcohol
Cosmetics
Non-prescription drugs
Ads directed towards children
Food

29. Ethical Effects of Advertising
Advertising as Untruthful or Deceptive
Advertising as Offensive or Bad Taste
Advertising and Children

30. Examples of Shock Ads

33. Many People Found Benetton’s “Sentenced to Death” Campaign Offensive

34. Advertising is Used to Address Social Problems

35. Using Advertising to Fight the War on Drugs