Professional Diploma in Marketing Marketing Communications Session 6 6 February 2007

The Marketing Communications Industry Current value in the UK estimated at £18-18.5bn p.a. Players: Media Clients Agencies Support organisations (research, production etc)

Current value in the UK estimated at £18-18.5bn p.a.

Players:

Media

Clients

Agencies

Support organisations (research, production etc)

The Marketing Communications Industry Source : Advertising Statistics Yearbook (2005) Internet advertising expenditure was forecast to total £2bn in 2006 Internet Advertising Bureau

Marketing Communications Agencies Advertising agencies Public relations agencies Sales promotion agencies Direct marketing agencies So… do “marketing agencies” exist?

Advertising agencies

Public relations agencies

Sales promotion agencies

Direct marketing agencies

So… do “marketing agencies” exist?

Advertising agency types Full-service agency Creative shop (“hotshops”, “boutiques”) Media independent A la carte + In-house?

Full-service agency

Creative shop (“hotshops”, “boutiques”)

Media independent

A la carte

+ In-house?

Full Service Agency Creative Concepts Graphic design Copywriting/scriptwriting Typography Production For print, TV, radio, press Media Planning Buying Research Market intelligence Economic forecasting Commissioning of specific research Account handling Day-to-day client liaison But also, increasingly, strategic planning

Creative

Concepts

Graphic design

Copywriting/scriptwriting

Typography

Production

For print, TV, radio, press

Media

Planning

Buying

Research

Market intelligence

Economic forecasting

Commissioning of specific research

Account handling

Day-to-day client liaison

But also, increasingly, strategic planning

Full Service Agency - structure Managing Director Finance Director Creative Director Media Director Media planners Media buyers Account Director Research Director Accounts Admin staff Art directors Copywriters Graphic artists Project managers Analysts Account managers Account executives

Media planners

Media buyers

Accounts

Admin staff

Art directors

Copywriters

Graphic artists

Project managers

Analysts

Handling the work Client problem Internal briefing Creative Media Research Client presentation Production stage Campaign appears Evaluation/feedback

Internal briefing

Creative

Media

Research

Agency Selection Process Search Shortlist Agency pitch Select

Search

Shortlist

Agency pitch

Select

Agency Selection - Search Where? Industry publications (eg Campaign magazine) AAR (Advertising Agency Register) Personal recommendation Criteria? Skills and resources Communication Involvement Flexibility

Where?

Industry publications (eg Campaign magazine)

AAR (Advertising Agency Register)

Personal recommendation

Criteria?

Skills and resources

Communication

Involvement

Flexibility

Agency Selection - Shortlist Based on: Previous work Experience in relevant fields Costs/terms of business Resources (in-house or bought-in?) Staff expertise Personalities

Based on:

Previous work

Experience in relevant fields

Costs/terms of business

Resources (in-house or bought-in?)

Staff expertise

Personalities

Agency Selection - Select Rank the agencies in terms of: Market knowledge How well was the brief addressed Planning Creative Who will be running the account? Remuneration

Rank the agencies in terms of:

Market knowledge

How well was the brief addressed

Planning

Creative

Who will be running the account?

Remuneration

The Agency Brief Current situation Promotional objectives Target markets Product/service benefits Budget Competitors Time scales

Current situation

Promotional objectives

Target markets

Product/service benefits

Budget

Competitors

Time scales

Advertising agency remuneration Commission Traditionally, media pays agencies 15% commission on bookings – i.e. “above-the-line” On “below-the-line” work, agency therefore adds 17.5% to invoices Fee Negotiated and agreed with client before work starts Payment by results Based on how far a campaign meets its objectives

Commission

Traditionally, media pays agencies 15% commission on bookings – i.e. “above-the-line”

On “below-the-line” work, agency therefore adds 17.5% to invoices

Fee

Negotiated and agreed with client before work starts

Payment by results

Based on how far a campaign meets its objectives

Relationships with agencies Have a clear understanding of remuneration and costs Agencies are there to add value Let them become part of the marketing team Involve them early in any project They will also give you alternative view, they are not as close to the market Give clear briefs for each project Agree deadlines Prepare a planning calendar working back from your launch date

Have a clear understanding of remuneration and costs

Agencies are there to add value

Let them become part of the marketing team

Involve them early in any project

They will also give you alternative view, they are not as close to the market

Give clear briefs for each project

Agree deadlines

Prepare a planning calendar working back from your launch date

Advertising controls & regulation Advertising Standards Authority (ASA) Regulates non-broadcast media Code of Advertising Practice (CAP) states that advertising must be “legal, decent, honest, truthful” OFCOM (Office of Communications) Created in December 2003 to replace ITC, RA, BSC, Oftel + others Regulates TV & radio advertising

Advertising Standards Authority (ASA)

Regulates non-broadcast media

Code of Advertising Practice (CAP) states that advertising must be “legal, decent, honest, truthful”

OFCOM (Office of Communications)

Created in December 2003 to replace ITC, RA, BSC, Oftel + others

Regulates TV & radio advertising

Advertising controls & regulation Statutory (legal) controls that affect advertising include : Trade Descriptions Act Fair Trading Act Sale of Goods Act Data Protection Act Etc, etc…

Statutory (legal) controls that affect advertising include :

Trade Descriptions Act

Fair Trading Act

Sale of Goods Act

Data Protection Act

Etc, etc…

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