Strat Comm Agencies

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<ul><li><p>Strategic Communications Agencies </p></li><li><p>AgenciesThe key playersTypes of agenciesHow agencies charge clientsOrganization of agencies</p></li><li><p>The Four PlayersThe ClientsThe Strategic Communication AgenciesThe MediaThe Vendors</p></li><li><p>Types of ClientsManufacturersResellers (retailers)Institutions Individuals</p></li><li><p>The AgenciesIndependent communications agenciesFull service agenciesCreative boutiquesSpecialty shopsIn-house communication departments</p></li><li><p>Advertising MediaPrint (newspapers, magazines)Broadcast (television, radio)Outdoor (billboards, transit)Direct response (direct mail, telemarketing)Internet and InteractiveMiscellaneous</p></li><li><p>The VendorsFreelancersConsultantsProduction Professionals</p></li><li><p>Types of AgenciesThe full-service agencyCreative boutiquesMedical agenciesPolitical agenciesMinority agenciesIn-house agenciesMedia buying services</p></li><li><p>The Full-Service AgencyMajor staff functions:Research and account planningAccount management/client serviceCreative servicesMedia planning and buyingPubic relationsPromotions and event planningDirect responseInteractive</p></li><li><p>The Full-Service AgencyOther major agency functions:AccountingLegal ServicesTrafficProductionHuman resources</p></li><li><p>Services ProvidedAnalysis of marketing and cultural dataFormulation of core strategy and tacticsRecommendation of creative directionProduction of brand messages - Ad/PRCreate promotions and databasesPlacement in print, broadcast &amp; InternetVerification of message placement</p></li><li><p>Creative BoutiquesSmall agencies focus on creativeSpecialize in producing adsLittle staff for research, strategy, media planning, or public relationsSub-contract for creative work from full-service agenciesOften have short life spans</p></li><li><p>Medical/Political ShopsEntirely service specialized clientsSpecialized knowledge of categoryProvide full-service functions</p></li><li><p>Minority AgenciesOften full-service agenciesSpecializing in campaigns that target minorities/specialized populationsBlacks, Hispanics, Asians, Gay/Lesbian</p></li><li><p>In-house AgenciesOwned and supervised by companyReasons for in-house agencies:SavingsSpecializationPriority serviceBut, minimum staffing of experts and possibility of group-think</p></li><li><p>Media Buying ServicesOriginal format of ad agenciesSole function is media buyingGrowing complexity of media buyingBuying media in bulk</p></li><li><p>How Agencies are PaidThe Commission SystemThe Fee SystemIncentive-based Systems</p></li><li><p>The Commission SystemStandard rate: 15% of media buysTrend toward negotiated commissionFierce competition among agencies</p></li><li><p>The Fee SystemNegotiated hourly feeMedia buys billed directly to clientHourly rate rule of thumb:3 x hourly salary of each employeeEmployee hourly salary =Salary / Hours worked per year</p></li><li><p>Incentive-based SystemsHigher fees for good performanceIncentives negotiated in advancePay per performance system</p></li><li><p>Organization of AgenciesOrganized around departmentsOrganized around clientsOrganized around tasksOrganized by ownership</p></li><li><p>Organizing Agencies</p></li><li><p>Tradeoffs in Agency Organization</p></li><li><p>Agency AssignmentGet in your agencies and decide what structure you want to adoptGreater integration usually results in more coherent campaignsMore need to negotiate decisions - share responsibilities for sectionsBe realistic about level of integration </p><p>*******************</p></li></ul>