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05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
05 agencies
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05 agencies

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kjk

kjk

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  • 1. advertising agencies
  • 2. what agencies do. structure & organization and how they’re organized to do it.
  • 3. 7 primary services: <ul><li>complete a marketing analysis </li></ul><ul><li>develop an advertising plan </li></ul><ul><li>prepare a creative strategy </li></ul><ul><li>create advertising executions </li></ul><ul><li>develop and implement a media plan </li></ul><ul><li>handle billing and payments </li></ul><ul><li>integrate other marketing communications </li></ul>
  • 4. 4 functions of full-service agencies <ul><li>account management </li></ul><ul><li>creative </li></ul><ul><li>media planning and placement </li></ul><ul><li>research </li></ul>
  • 5. agency organization chart
  • 6. <ul><li>liaison between agency and client </li></ul><ul><li>responsible for understanding... </li></ul><ul><ul><li>the client’s business </li></ul></ul><ul><ul><li>the client’s marketing needs </li></ul></ul><ul><ul><li>strategy development </li></ul></ul><ul><li>representing client point of view within the agency </li></ul>account management
  • 7. <ul><li>account management director </li></ul><ul><li>management supervisor </li></ul><ul><li>account supervisors </li></ul><ul><li>account executives </li></ul><ul><li>assistant account execs </li></ul><ul><li>account coordinators </li></ul><ul><li>traffic </li></ul>account management
  • 8. <ul><li>responsibility </li></ul>creative department <ul><ul><li>the creative department is responsible for creating and producing the print and broadcast advertising </li></ul></ul><ul><li>strategy is key </li></ul><ul><ul><li>good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed </li></ul></ul>
  • 9. creative department <ul><li>executive &amp; group creative directors </li></ul><ul><li>creative director </li></ul><ul><li>associate creative director </li></ul><ul><li>copywriters </li></ul><ul><li>art directors </li></ul><ul><li>broadcast producers </li></ul><ul><li>print production managers </li></ul><ul><li>traffic coordinators </li></ul>
  • 10. media department <ul><li>The media department has two main functions - planning and buying. </li></ul><ul><li>The planning group handles more strategic marketing and media issues. </li></ul><ul><li>The buying group handles media negotiations and implementation. </li></ul>
  • 11. <ul><li>media director </li></ul><ul><li>associate media directors </li></ul><ul><li>media supervisors </li></ul><ul><li>media planners </li></ul><ul><li>media buyers </li></ul><ul><li>media analysts </li></ul>media department Media Plan
  • 12. <ul><li>mega-agency media departments have now become profit centers </li></ul><ul><li>agencies have set up their media departments as free-standing units </li></ul><ul><li>many large clients now look at media as a separate service </li></ul>big changes in the media department
  • 13. <ul><li>interpret market environment </li></ul><ul><ul><li>gather and analyze research data. </li></ul></ul><ul><ul><li>primary and secondary techniques </li></ul></ul><ul><li>determine consumer needs/perceptions </li></ul><ul><ul><li>understand problems </li></ul></ul><ul><li>advise how ads can meet strategic goals </li></ul><ul><ul><li>help find solutions </li></ul></ul>research department Research Report
  • 14. <ul><li>research director </li></ul><ul><li>research project managers </li></ul><ul><li>research assistants </li></ul><ul><li>outside research specialists </li></ul>research department Research Report
  • 15. auxiliary agency functions <ul><li>account planning </li></ul><ul><li>strategy/creative review board </li></ul><ul><li>office management </li></ul><ul><ul><li>human resources </li></ul></ul><ul><ul><li>legal services </li></ul></ul><ul><ul><li>accounting </li></ul></ul><ul><ul><li>recruitment </li></ul></ul>
  • 16. 3 ways agencies make money <ul><li>commissions </li></ul><ul><ul><li>usually 15% of gross costs </li></ul></ul><ul><li>fees </li></ul><ul><ul><li>usually based on negotiated hourly rate </li></ul></ul><ul><li>incentives </li></ul><ul><ul><li>still relatively new and problematic </li></ul></ul><ul><ul><li>usually based on performance goals </li></ul></ul>
  • 17. agency commissions <ul><li>media commission system </li></ul><ul><ul><li>15% media commission </li></ul></ul><ul><li>adjustable commission rates </li></ul><ul><ul><li>negotiate to match client budget </li></ul></ul><ul><ul><li>sliding scale </li></ul></ul><ul><li>markups-production &amp; service </li></ul><ul><ul><li>add a percentage markup to costs </li></ul></ul><ul><ul><li>17.65% of net = 15% of gross </li></ul></ul>
  • 18. 4 types of fee systems <ul><li>fixed fee (retainer) </li></ul><ul><li>cost-plus fee </li></ul><ul><li>performance fee </li></ul><ul><li>hybrid fee &amp; commission </li></ul>
  • 19. incentives <ul><li>in theory, a good way to work </li></ul><ul><li>get paid based on how well you do, not how much you bill </li></ul><ul><li>in practice, difficult to implement </li></ul><ul><li>if client makes final decision (instead of agency), how can agency be responsible for final results? </li></ul><ul><li>results based on many factors, such as competitive efforts, not just advertising </li></ul>
  • 20. new business <ul><li>three primary sources </li></ul><ul><ul><li>build existing client’s business </li></ul></ul><ul><ul><li>add and sell new IMC services </li></ul></ul><ul><ul><li>solicit new accounts </li></ul></ul><ul><li>two ongoing problems </li></ul><ul><ul><li>“ spec” work </li></ul></ul><ul><ul><li>teams “walking” with accounts </li></ul></ul>“ The critical objective and role of any ad agency is gaining new business.”
  • 21. things to think about: <ul><li>why might you be interested in going into the agency business? </li></ul><ul><li>what might keep you from choosing a career in the agency business? </li></ul>

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