The Agency Business

Functions of an agencyClient servicingMediaCreativeP&AAccounts

The client brief This is normally the first business meeting between the client and agency after the agency has signed on. Most likely the top brass of the agency and the marketing department would be present to introduce the operating people who would transact day-to-day business

Client briefingWhat exactly is the agency being asked to do?What information does the agency need?What questions are the agency likely to ask?

In the briefing session, even the creative and media people may be present so that they get first hand impressions of the problems encountering the company.

Pitching for an accountSometimes agencies may solicit for an account and make a pitching brief to the client organization hoping to get the account. This is speculative.

The agency is a peoples businessFor an agency the assets are its people their calibre, expertise, knowledge and experienceIt is for this reason that some people become so well known that they are brands in their own rightThere is high mobility of people within the industry, especially for good people

Change of Agency Agency changes are normally made because of some dissatisfaction. But very often it is an excuse to disguise shortcomings within the clients organization.

When does change happen?Whenever there is a change of guard at the highest levelChanges in ownership/mergers/acquisitionsChange in client servicing needs

Changing an agency is costlyTimeMonetary termsMomentum is lost

Agency selection is normally a top management decision

Criteria for selectionNo. of people assigned to the accountQuality of people assigned to the accountCreative abilities ( Past work of the agency)What kind of accounts are presently being handled by the agencyCulture/style fitAbility to deliver and adhere to deadlinesReputation for integrityAbility to defend and justify recommendationsDegree of understanding of the clients businessMarket research and media buying abilities

Normally client would not take up an agency if it is dealing with a competitor brandSimilarly agencies do not sign up with competitors if they are handling brands in the same product category

Building partnership and trustIt is not simply a principal-supplier relationshipThe agency by virtue of its experience in different markets, different product categories, is expected to give a different creative perspective and insight on the companys problems.It is not expected to agree with the company all the time.A client who does not expect and reward an agency for fresh thinking is usually expected to get mediocre advertising

If a campaign is working the client should stick to it. Too often the campaign gets changed not because it is stale but the company people get bored with it.It must be remembered that the consumer is just about beginning to notice it then

Building a great agency-client relationshipInculcate a spirit of friendshipBe wary of change for changes sakeEnsure the agency is making a fair profit on your accountMake the agency totally absorbed in the companys product, people and cultureCreate an environment for experimentation and be prepared to pay for failure

ContdTreat the agency people wellAgree on clearly defined objectivesKeep approvals simple and disapprovals kindGive the responsibility and authority to the agency to produce good advertisingGive the agency a formal evaluation annually

What does an agency look for when taking up a new account?Product one would be proud to advertiseNot take up an account where one cannot better the efforts of the previous agencySteer clear of products whose sales have been consistently falling either due to product weakness or inconsistent managementAccount where the agency can make a profitIf profits are unlikely, is there mileage to be derived elsewhere?

ContdAgency-client fitAvoid clients where there is low belief in advertisingNot accept new products unless attached with a national productAlways deal with one decision maker, not committeesDo not have conditional accounts. It never works.

Agency Compensation The key issue is that compensation should be commensurate with workload.CommissionFeePayment by Results (PBR)