International Business Forum Prague Marketing Workshop 2010

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How to select an agency

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International Business Forum Prague Marketing Workshop 2010

  1. 1. THE INTERNATIONAL BUSINESS FORUM Actively Promoting Business to Business 2010 Marketing workshop External agencies – choosing the right one
  2. 2. Some are born great, some achieve greatness ... ... and some hire public relations officers Daniel J. Boorstin, US historian
  3. 3. <ul><li>Horses for courses – what do I (really) need? </li></ul><ul><li>IF I need an agency, how do I start sourc ing one? </li></ul><ul><li>Mirror mirror, on the wall, which is the fairest of them all? </li></ul><ul><li>Best bang for the buck I – how do I manage my agency? </li></ul><ul><li>Best bang for the buck II – how much do I pay? </li></ul><ul><li>Help, I have no budget … </li></ul>
  4. 4. <ul><li>Horses for courses </li></ul><ul><li>Do I really need an agency? </li></ul><ul><li>If so, what sort of agency? </li></ul><ul><li>Can someone in-house execute part or all of the project? </li></ul><ul><li>Do I need brains or brawn? Or both? </li></ul><ul><li>If I have an agency, who will manage them? </li></ul>
  5. 5. <ul><li>How do I source an agency? </li></ul><ul><li>Well… what is: </li></ul><ul><ul><li>the target audience I want to address </li></ul></ul><ul><ul><li>the key messages I want to put across </li></ul></ul><ul><ul><li>the key objectives I want to achieve </li></ul></ul><ul><ul><li>the budget I have set </li></ul></ul><ul><li>Look at references and call them up for a recommendation </li></ul><ul><li>Research what has been written about them in industry press – have they won any awards (creativity, effectivity) </li></ul><ul><li>In PR – what contacts do they have in media, what results and what reputation? </li></ul><ul><li>Consider a specialized agency sourcing service </li></ul><ul><li>You may want to write to 10 agencies and request their credentials </li></ul>
  6. 6. <ul><li>How do I choose an agency? </li></ul><ul><li>Create a short list – 3-5, based on: </li></ul><ul><ul><li>credentials and experience in your sector </li></ul></ul><ul><ul><li>expertise in what you need, be it business-to-business or consumer advertising, PR or direct marketing etc. </li></ul></ul><ul><ul><li>in PR, a track record in the media you want to exploit </li></ul></ul><ul><li>Are they the right size? Bigger isn't necessarily better </li></ul><ul><li>Do they have the right expertise? </li></ul><ul><li>What is their reputation? </li></ul><ul><li>How do they measure effectiveness? </li></ul><ul><li>How do they charge and will they negotiate on fees? </li></ul><ul><li>Are they a 'full service' agency </li></ul><ul><li>Do I like them? Relationships matter! </li></ul>
  7. 7. <ul><li>The choice..,. </li></ul><ul><li>Invite the agencies to pitch – give them: </li></ul><ul><ul><li>a clear brief – linked to company business objectives </li></ul></ul><ul><ul><li>details of your budget </li></ul></ul><ul><ul><li>the nature of the contractual arrangement you want </li></ul></ul><ul><ul><li>a confidentiality agreement </li></ul></ul><ul><li>Find out if the team pitching to you will be the team that works on your account </li></ul><ul><li>Personality is important - you need to get on well with people in the agency you employ if you're looking for a fruitful, long-term relationship </li></ul><ul><li>Make the choice and give clear feedback to the agency why they were chosen as well as feedback to the agencies that were not chosen </li></ul><ul><ul><li>use a points system and have representatives present from all relevant business sectors </li></ul></ul>
  8. 8. <ul><li>Manage the relationship – it’s an asset! </li></ul><ul><li>Senior management should be involved in choosing the agency and involved in managing the relationship </li></ul><ul><li>Arrange induction meetings - people from the agency can visit your business in order to better understand it, and your people can visit the agency. </li></ul><ul><li>Organize an initial brainstorming event in which the two parties can productively get to know each other better. </li></ul><ul><li>Have regular meetings: </li></ul><ul><ul><li>the work of the agency can be reviewed </li></ul></ul><ul><ul><li>the effectiveness of campaigns can be measured </li></ul></ul><ul><ul><li>future strategies can be considered </li></ul></ul><ul><li>You need to manage the agency and set objectives, but also allow them the freedom to introduce their creative skills – DON’T RIDE THEM </li></ul>
  9. 9. <ul><li>Campaign/project checklist </li></ul><ul><li>Does the agency understand your business  objectives </li></ul><ul><li>Is the agency demonstrating an understanding of your market and the  competition </li></ul><ul><li>Insist that the agency  report  back to you regularly </li></ul><ul><li>Institute agreed measures of  effectiveness  with the agency </li></ul><ul><li>Assess whether the campaign is hitting  targets  - if not, find out whether the agency is coming up with ideas to bring it back on track </li></ul><ul><li>Calculate whether the agency is working to your agreed budget </li></ul><ul><li>Track results </li></ul><ul><li>Ensure you are still dealing with the people in the agency you were first promised - consider the state of your  relationship  with them </li></ul><ul><li>Make sure the agency is still being  creative  and coming up with ideas to take your communications strategy forward </li></ul>
  10. 10. <ul><li>Average costs </li></ul><ul><li>Agencies are service businesses and should be experts at what they are doing. You are most likely not (in communications). Respect that and pay for it. </li></ul><ul><li>Budgets need to include hard costs (production, media buying, agency fees etc.) </li></ul><ul><li>Hourly fees for PR agencies are between 900 – 4500 CZK, depending on expertise, type of work etc. </li></ul><ul><li>Media buying agencies are paid from commissions and extra back bonuses from media – up to 50% of the value of the media buying deal </li></ul><ul><ul><li>Consider negotiating directly with media </li></ul></ul><ul><ul><li>However, media agencies have very good media planning software </li></ul></ul><ul><li>Advertising agencies are paid for creative and account management work – smaller full service agencies may waive some or all fees for media buying </li></ul>
  11. 11. <ul><li>No tengo dinero…. </li></ul><ul><li>Think outside the box </li></ul><ul><ul><li>What am I trying to achieve? </li></ul></ul><ul><ul><li>What is the best way to achieve my stated business goal? </li></ul></ul><ul><ul><li>What can I do myself? </li></ul></ul><ul><ul><li>How much is my marketing manager / PR manager really costing me? </li></ul></ul><ul><ul><li>Why don’t I in-source an agency person part-time [Brain] and make an assistant/junior manager available for them [Brawn]? </li></ul></ul><ul><li>Better I do some basic things well than try to encompass the whole field of marketing communications on a shoe-string budget </li></ul>
  12. 12. Thank you ! Questions & Answers

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