05 agencies

Download 05 agencies

Post on 12-Jan-2015

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  • 1. advertising agencies

2. what agencies do. structure & organization and how theyre organized to do it. 3. 7primary services:

  • complete amarketing analysis
  • develop anadvertising plan
  • prepare acreative strategy
  • createadvertising executions
  • develop and implement amedia plan
  • handlebillingandpayments
  • integrateother marketing communications

4. 4functions of full-service agencies

  • account management
  • creative
  • media planning and placement
  • research

5. agency organization chart 6.

  • liaison between agency and client
  • responsible for understanding...
    • the clients business
    • the clients marketing needs
    • strategy development
  • representing client point of view within the agency

account management 7.

  • account management director
  • management supervisor
  • account supervisors
  • account executives
  • assistant account execs
  • account coordinators
  • traffic

account management 8.

  • responsibility

creative department

    • the creative department is responsible for creating and producing the print and broadcast advertising
  • strategy is key
    • good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

9. creative department

  • executive & group creative directors
  • creative director
  • associate creative director
  • copywriters
  • art directors
  • broadcast producers
  • print production managers
  • traffic coordinators

10. media department

  • Themedia departmenthas two main functions -planningandbuying.
  • The planning group handles more strategic marketing and media issues.
  • The buying group handles media negotiations and implementation.

11.

  • media director
  • associate media directors
  • media supervisors
  • media planners
  • media buyers
  • media analysts

media department Media Plan 12.

  • mega-agency media departmentshave now become profit centers
  • agencies have set up their media departments as free-standing units
  • many large clients now look at media as a separate service

big changes in the media department 13.

  • interpret market environment
    • gather and analyze research data.
    • primary and secondary techniques
  • determine consumer needs/perceptions
    • understand problems
  • advise how ads can meetstrategic goals
    • help find solutions

research department Research Report 14.

  • research director
  • research project managers
  • research assistants
  • outside researchspecialists

research department Research Report 15. auxiliary agency functions

  • account planning
  • strategy/creative review board
  • office management
    • human resources
    • legal services
    • accounting
    • recruitment

16. 3ways agencies make money

  • commissions
    • usually 15% of gross costs
  • fees
    • usually based on negotiated hourly rate
  • incentives
    • still relatively new and problematic
    • usually based on performance goals

17. agency commissions

  • media commission system
    • 15% media commission
  • adjustable commission rates
    • negotiate to match client budget
    • sliding scale
  • markups-production & service
    • add a percentage markup to costs
    • 17.65% of net = 15% of gross

18. 4types of fee systems

  • fixed fee (retainer)
  • cost-plus fee
  • performance fee
  • hybrid fee & commission

19. incentives

  • in theory, a good way to work
  • get paid based on how well you do, not how much you bill
  • in practice, difficult to implement
  • if client makes final decision (instead of agency), how can agency be responsible for final results?
  • results based on many factors, such as competitive efforts, not just advertising

20. new business

  • three primary sources
    • build existing clients business
    • add and sell new IMC services
    • solicit new accounts
  • two ongoing problems
    • spec work
    • teams walking with accounts

The critical objective and roleof any ad agency is gainingnew business. 21. things to think about:

  • why might you be interested in going into the agency business?
  • what might keep you from choosing a career in the agency business?