INFLUENCE OF ACCOUNT PLANNING ON CAMPAIGN EFFECTIVENESS IN CROATIAN MARKETING AGENCIES

Nevena Akmadžić

University of Applied Sciences VERN', Zagreb, Croatia nevena.akmadzic@gmail.com

Maja Dawidowsky Mamić

University of Applied Sciences VERN', Zagreb, Croatia maja.dawidowsky@gmail.com

Mateja Čop

University of Applied Sciences VERN', Zagreb, Croatia cop.mateja@gmail.com

ABSTRACT To set up effective marketing communications the whole range of activities is carried out stemming from different departments of full service marketing agency. Although a full service marketing agency structure are similarly designed taking into account an internal communication with the agency's services, there are differences in specific business functions whose activities are believed to add value to the agency's clients. The study wants to present how just a business account planning function adds a value to the agency's clients in terms of setting up an effective marketing communications. Thereby a creation of a marketing campaign stems from specific activities that Account Planners undertaken in conjunction with Account Managers and creative’s in the marketing agency. Croatian marketing agencies partially supplement specific activities from the Account Planner job opus, but still much less taking into account the examples of foreign practices. However marketing experts believe a large number of functions that account planning contributes to a better marketing communication in a small percentage develop actions that achieve the same. Keywords: account planning, marketing agencies, marketing campaign, marketing communication 1 INTRODUCTION Development of marketing campaigns in advertising agencies depends on the specific steps aimed at effectively transferring marketing communications to end consumers in order to meet the overall objectives of the client. The marketing agencies in the UK and the U.S. developed account planning function which soon became an integral part of the full service agency structure. For this purpose, account planners work becomes an important link whose activities significantly affect the effectiveness of marketing communications. Thus, the paper wanted to examine the relationship between effective marketing communications with the existence of account planning function, and direct benefits of account planning for the purposes of creating an effective marketing strategy. The paper is therefore to investigate which marketing activities in Croatian advertising agencies form the backbone of operations arising from the account planning function. The authors wanted to investigate all activities used by marketing specialists who are in correlation with account planning function as well as to explore a possibility of developing business functions of account planning in Croatian marketing agencies. 2 RESEARCH METHODOLOGY

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2.1. Subject of research Marketing agencies in Croatia provide various marketing services related to promotional activities of products or services for agency clients. Accordingly, marketing communication should be strategically oriented at the marketing communication tools whose message should be visible to the targeted group of people. Marketing agencies in addition to the established marketing services such as client, media or creative services can have more specialized departments whose services are centralized marketing services and thus provide all services in one place. Therefore, this paper wants to examine which key departments are involved in the implementation of marketing campaigns and how effective they are, considering the objectives of marketing campaigns. Thereby it will be explored a connection between efficient marketing communication with the existence of account planning function in purpose of creating an effective marketing strategy. 2.2. Aims of the research Paper analyzes in which way the function of account planning, as well as the related jobs, might affect the greater effectiveness of marketing communications. It also wants to examine whether marketing agencies employ Account Planners and which related activities are used in order to implement a marketing campaign. Since the success of the marketing campaign might depend on several parameters, the paper examines which activities are most commonly implemented and which activities should improve successful marketing communication among consumers. In addition, the analysis will show how marketing specialist are using information from the market in purpose to get an information about target group of consumers. 2.3. The research questions In this paper the following research questions are raised:

1. Is there a correlation between effective marketing campaigns and the existence of account planning business function?

2. Are there any direct benefits from the account planning function in advertising agencies?

3. Can the account planning function be taken as for precondition of a successful marketing campaign?

4. What are the direct benefits of account planning for marketing strategy effectiveness? 5. Is there a difference between the existing ways of defining a marketing strategy and

the way that represents an account planning function? 2.4. Research methods In order to achieve the objectives as well as the answers to research questions, the authors used a quantitative research method. Analysis of the concept of Account Planning in Croatian marketing agency is conditioned on successful international practice, and therefore will be used a literature related to the practice of Account Planning in foreign advertising agencies for the purposes of clarification of research questions. The survey comprises the relevant employees of advertising agencies with long experience that include marketing activities associated with the account planning. First of all, these are the directors of eminent Croatian marketing agencies, Client Service Directors, Account Managers, Media Directors, Creative directors and PR Managers who, on the basis of knowledge on marketing strategy, should give relevant answers related to the implementation of marketing campaigns in agencies where they are employed.

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3 THEORETICAL CONCEPT OF ACCOUNT PLANNING IN ADVERTISING AGENCIES 3.1. Occurrence of function Account Planning in advertising agency The first formal departments of account planning function were created in the famous British advertising agencies, at the end of the 60s of the last century. These are marketing agency from London, J. Walter Thompson (JWT) and Boasse Massimi Pollit (BMP) which approximately at the same time formed account planning function and thereby set a foundation of development of marketing communications (Zambardino and Goodfellow, 2003). Account planning philosophy is becoming increasingly recognized in the competitive British agency, and by the end of 1980 new marketing function adopts most other full service agency (Habberstad, 2003). Marketing agencies in the U.S. also started with the development of account planning function (Hackley, 2013). Habberstad (2003) states that the function of account planning soon found on U.S. territory, since proved to be extremely effective in the UK and therefore marketing agencies in the U.S. wanted to be just as successful. The agency Chiat/Day was first who has introduced account planning function in the United States. Jay Chiat, the owner of the agency was a big fan of advertising in the UK and he considered that greater success in the British agency was credited from account planning function. It seems that the account planning function outside the marketing industry was less known, even after 30 years (Baskin, 2003). The reasons for its obscure may be that the account planning is more observed as external support for marketing management, and therefore was absent in academic interest. However it should not be left out just how account planning to advertising agencies provides a multiple millions in marketing industry (Crosier and Picton, 2003). Deep knowledge of the needs and habits of the consumer becomes the basis of setting up a communication strategy that can contribute to a long-term relationship between the companies that sells the product (agencies clients) to a certain customer. Advertisers nowadays require communication that should not only be cost-effective, but also needs to be effective and thereby exclude the possibility of the slightest error in planning marketing communications. 3.2. The role of account planning in developing marketing campaigns Account planning function in advertising agencies is a central element of the system of formal planning marketing campaigns for the clients (Grant, Gilmore and Crosier, 2003). Accordingly to the name, account planning under normal conditions it would be related to the strategic role within the account team and the broader on philosophy of developing marketing campaigns (Hackly, 2003). The role of account planning in advertising agencies today is much more complex and thereby expanded, considering the role of its early beginnings, more than 30 years. The role of account planning function derived from advertising agencies as a result of the increasing influence of consumers, thereby indicating the need to seek ways that can make effective marketing communication, due to the fast changing trends (Osler, 2003). However, the role of account planning still remains an enigma. Hackey (2003) for research needs on the roles of account planner interviewed many Account Planners who stand out: although the account planning is well known and accepted, very little attention relates to planning. It should be taken into account how even after a 30 years there have been concerns what are the activities associated with the account planning.

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A good account planner should have a special interest in people whose passion in research should be so deep that they can examine consumer views of the world the same as their internal feelings. Except that they should also possess skills of good research data, they should govern certain marketing tools and should possess strategic and visionary mind to be able to present the solutions that they have acquired, since vital knowledge about the consumer should be utilized when planning marketing communications. Their originality in thinking and the application of the solutions in marketing agency should be of paramount importance. Original thinking affects the perception of the brand in the eyes of consumers as the art of turning a problem in the original marketing message makes the main mission of Account Planner. 3.3. The process of implementation of marketing campaigns through function account planning The process of implementing a marketing campaign depends on several parameters. With regard to the activity of the company which is engaged as an agency's client, as well as the messages they want to transfer to end customers, tangible results will depend on the type of customer as well as on the Account Planner (Grant, Gilmore and Crosier, 2003). Account planning is a hybrid function that primarily benefits the research arising from the observation of consumers in order to take them into account in the process of strategy implementation for a particular marketing campaign (Kerr, 2005). The implementation process should primarily contribute to the examination of the problems that come from the client, since the information provided by the client, account planners should transform into a unique marketing message. Since planning is the process which on many ways uses real data, thus is maximum rationalized, if we taken in concern that when proposing a marketing communication should be cautious. Caution is needed primarily because well-defined marketing mix should be relevant to the product / brand, taking in to an account that in terms of marketing agency has no negligible impact (Hegarty, 2003). In the process of implementing a marketing campaign a document that summarizes the information that need to help to create a marketing campaign or told in marketing language, the creative brief has a great importance. Therefore creative brief should provide a clear concept of everything that can be relevant to a creative department since creative’s needs to provide a quality artwork. 3.4. Account planning in structure of marketing agency Like many service industries and marketing branch is becoming more fragmented, less bureaucratically structured. Marketing agencies operates in highly complex environments which are linked in several ways. On one side they are connected internally or between agency employees and externally with various partners, including the media, research houses and other suppliers in the field of marketing (Grant, McLeod and Shaw, 2012). Modern marketing departments can be organized in many different ways. In advertising agencies operates functional specialists who are responsible to the managing director. Advantages of functional marketing organization are primary related to simplicity of the management (Kotler and Keller, 2008). The organizational structure will largely depend on the management team within the agency, and may depend on the size of the agency. It should be take into consideration about tasks and responsibilities within the client service department, which is linked to the account planning

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team (Kempeners and Hart, H. 1999). According to the experienced account planners in the U.S. position of the account planning function is not always strictly defined. 4 ANALYSIS AND INTERPRETATION OF RESEARCH For the purposes of this paper a one-time survey was conducted during December 2013 and January 2014 on a sample of 30 employees of advertising agencies in different positions and research has been focused on familiarity with the account planning and the existence of account planning in the agencies, not just as a separate function in the agency but the existence of a range of activities that are related to the function of account planning. In a study participated employees mostly from full service agencies (80%), followed by 10% from the creative agency, 3.3% of PR agencies, and 6.7% of respondents are employed full service agency but specialized in digital media. Also, most respondents work in office as an Account Managers (36.7%), followed by Client Service Directors (23.3%), and followed by media accounts (10%) PR managers (6.7%), Creative Directors (3, 3%) and other positions. Respondents were asked directly whether they have a function of account planning in their agency, and 30% of respondents stated that this position exists in their agencies, and another 3.3% are planning to introduce this position anytime soon. Other respondents do not have this position within their agencies or they don’t know what this person would do in their agency, while 6.7% answered that for this function have never even heard of. To the question where the function was created, the majority of respondents (37%) mentioned the UK, 20% U.S. while other respondents mentioned various agencies, other countries, or responded how they don’t know where the account planning occurred. Respondents were asked which way they follow cultural and social trends of consumers, their attitudes, behavior and perception, and the agencies of the 80% of respondents follow the trends of consumers, either through an existing function of the agency responsible for monitoring trends (50% of respondents) either through the outsources service agency specializing in market research. The remaining 20% of respondents in their agencies do not measure on a regular basis of cultural and social trends of consumers and their attitudes and perceptions. Looking at measuring the efficacy of campaigns, 53% of respondents this doesn’t work independently. Or measurement performs at the client's request and additional budget (40%) or never conducted measuring of the effectiveness of campaigns (13%). In order to check whether the agency implemented activities of account planning regardless of whether the agency has a person employed in operational planning or specific activities arranged by other functions, respondents were asked to mark all of the activities carried out in their agency.

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Chart 1: Measuring the effectiveness of marketing communications (Authors research)

Market research (development, management and analysis of research), communication with colleagues such as creative’s and Account Managers in the process of developing marketing campaigns, and presenting ideas and conclusions to the clients and agency's colleagues implements 80% of respondents in their agencies, while the agencies of 80 and more % of respondents. These are also significant characteristics of account planning. The only important feature characteristic of account planning that is not so represented in the agencies, and it mentions only 30% of respondents, was organization of focus groups and individual interviews.

Chart 2: Activities carried out as a basis for developing effective marketing campaigns in the agency (Authors research)

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Also, respondents were asked to rate 14 statements with school grades from 1 to 5 where 1 mean strongly disagree and 5 means strongly agree. Claiming the highest grade was "A deep understanding of consumers was crucial when planning marketing communication", and was evaluated with a high score of 4.5. T-test shows that between those claims and other claims there is a statistically significant difference.

Statement

Paired Differences

t df Sig. (2-tailed) Mean Std.

Dev.

Std. Error Mean

95% Confidence Interval

Lower Upper AP raises the price of marketing service -1,53571 1,29048 ,24388 -2,03611 -1,03532 -6,297 27 ,000

AP adds value to advertisers -,35714 ,78004 ,14741 -,65961 -,05467 -2,423 27 ,022

AP function can help in fulfillment of the goals of advertising

-,28571 ,59982 ,11336 -,51830 -,05313 -2,521 27 ,018

AP integrates different elements of marketing communication and knows consumers in 'soul' and the most contributing marketing communication.

-1,03704 ,97985 ,18857 -1,42465 -,64942 -5,499 26 ,000

Good marketing communication.. does not depend on the existence of the AP

1,35714 1,22366 ,23125 ,88266 1,83163 5,869 27 ,000

AP on effective way reaches to the final consumer, and allows advertisers targeted communication.

,82143 ,72283 ,13660 ,54114 1,10171 6,013 27 ,000

AP represents mainstream 1,35714 ,98936 ,18697 ,97351 1,74078 7,259 27 ,000

The function of the AP can provide better marketing communication

,64286 ,73102 ,13815 ,35940 ,92632 4,653 27 ,000

AP is integrator of different elements of marketing communication.

,78571 ,91721 ,17334 ,43006 1,14137 4,533 27 ,000

AP is responsible for obtaining the relevant data on consumer behavior

,78571 ,99469 ,18798 ,40001 1,17142 4,180 27 ,000

Putting consumers to the centre of marketing communication is crucial for effectiveness of the marketing campaign

,32143 ,66964 ,12655 ,06177 ,58109 2,540 27 ,017

Branding should be in the hands of people whose focus is directed on consumers

,62963 ,96668 ,18604 ,24722 1,01204 3,384 26 ,002

The function of the AP can influence on better performance of marketing communication.

,48148 ,80242 ,15443 ,16406 ,79891 3,118 26 ,004

Table 1 View t-test between the claims of "deep understanding of consumers was crucial when planning marketing communications" and other claims (Authors' research)

Respondents also expressed their folding with average grade of 4 or more and with claims: "Taking into account the effectiveness of marketing campaigns is crucial for the client, Account planning function can assist advertisers in fulfillment of the goals of advertising", "Putting consumers at the center of the marketing communications is essential to the

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effectiveness of the marketing campaign"," Account planning adds value to advertisers" and "Function account planning can affect on better performance of marketing communications". And among other claims (especially among those with high-rated and low-grade) statistically a significant difference was found, but only the best rated claim is significantly different from all the others. Chart 3. shows the mean scores of all claims and shows how account planning activities are considered important, although the agency may not have employed person in a specific position.

Chart 2 The level of agreement with statements about the importance of Account Planning

(Authors' research)

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For the end the research respondents were asked whether there is a person responsible for specific tasks in the agency. The largest number of respondents (over 70%) in their agencies have a person responsible for the selection of marketing channels for the purpose of integrated marketing communications, and the person who creates media plans, and slightly more than half of the respondents have a person in the agency who works closely with the Account Manager for the purposes of an effective marketing communication when setting up marketing campaigns. Less than 30% of respondents have a person in the agency that moderates the focus groups, analyzes data’s and makes recommendations and conducts quantitative and qualitative research, while only 13% have a person whose concern is to attract the attention of consumers. The answers given are shown in chart 4.

Chart 3: The existence of one or more persons responsible for the following activities (Authors’ research)

It is evident although agencies spend most activities of account planning as a basis for developing effective marketing campaigns in the agency, only by 53% of respondents there is a person responsible for an activity of account planning, who works closely with the Account Manager for the purposes of effective marketing communication when setting up marketing campaigns, while for other activities account planning there is no agency employee who would be directly responsible for these activities, but these activities are implemented "ad hoc" - when you need them. 5 CONSLUSION This paper attempted to analyze how the functions of account planning as well as the activities that are covered by the function may affect the greater effectiveness of marketing communications. For this purpose, a survey was conducted on a sample of 30 employees of advertising agencies in different positions with the fact that the study was focused on the

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major determinants of account planning considered main activities from the list of duties from account planning. In the survey were mainly involved employees of the full service marketing agency, of which most of them were employed in a position of Account Manager. Since small percentage of the marketing agencies possesses a function of account planning, a negligible percentage of them planning to introduce the account planning function, here is to conclude that account planning mainly is not a part of the organizational structure and the question is when agencies will start to consider to introduce a function as a part of a full service marketing agency. While marketing specialist in large part sums positive assertions about the benefits that account planning can contribute in planning marketing communications, only 3.3% of them are planning to introduce the function in to the agency. This very low percentage testifies that Croatians agencies do not employ Account Planners, while many of them didn’t even hear of the function. While 80% of respondents follow the trends of consumers and more than a half measure the effectiveness of marketing communications, it is to conclude that there is a tendency for serious consideration of the benefits that account planning can provide to agency's clients. A large number of marketing experts believe that a deep understanding of consumers is crucial when planning a marketing campaign, but very few actually carried out activities that may help to understand aconsumer behavior, including the benefits obtained through qualitative research in the form of the focus groups. 6 BIBLIOGRAPHY

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