TrinityP3 Agency Roster Structures
 

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Marketers are confronted with trying to procure an increasingly diverse range of suppliers they are faced with a choice. At one end is the convenience of a one-stop-shop or full service supplier and at the other is juggling a roster of best of bred suppliers. In between is a varied range of options with various strengths and weaknesses. Which agency roster structure is the best? It depends on your strategic marketing requirements. Many retailers are happy to compromise quality in no core skills and capabilities for the simplicity and ease, not to mention the economies of scale, of a full service or single supplier. But more strategically driven marketers find themselves with multiple agencies on their roster, all providing strategic input into the marketing strategy. The issue then is how to achieve strategic business alignment across all of these suppliers. This presentation provides you with the range of structures and models available and their strengths, weaknesses and considerations.

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TrinityP3 Agency Roster Structures Presentation Transcript

  • 1. Agency SupplierRoster / Portfolio Structures TrinityP3 October, 2010 CONFIDENTIAL 1 marketing management consultants
  • 2. Increasingly fragmented. Increasingly specialist. •  Marketers are finding themselves requiring a more diverse range of specialist marketing communications services providers than ever before because of: •  the advent and rise of digital communications technology and the associated increasing technical complexity •  the fragmentation of media channels and the decreasing reach and engagement in traditional media channels •  the ability of consumers to become publishers and co-creators in brand communications through social networks, blogging and micro-blogging •  The traditional broadcast campaign style communications is being replaced by on- going conversations between consumers, marketers and the media. 2 marketing management consultants
  • 3. Service providers come in all types •  Creative Agencies •  Strategy Consultancy •  Print Production•  Advertising/Creative •  (B2B & B2C) •  Word of Mouth•  Brand Consultancy •  Media Analysis •  Connection Planning•  Strategy Consultancy •  Database Design •  Custom Publishing•  Channel Planning •  Database Management •  Sales Promotion•  Retail Specialist •  Direct Response Management •  Experiential Marketing•  Media Planning •  List Creation & Sourcing •  Sampling•  Media Buying •  Point of Sale •  Entertainment•  Media Strategy •  Promotions and Premiums •  Event Marketing•  Channel Planning •  Government Relations •  Point of Sale•  Digital Media Planning & •  Media Relations •  Shopper Marketing Optimization •  Internal Communications •  Social Marketing•  Digital/Interactive Marketing •  Speechwriting •  Sports Marketing•  Web Development •  Corporate Social •  Sponsorship•  Search Responsibility •  Telemarketing•  Mobile •  Strategic Counsel •  Word of Mouth•  Digital Creative •  Crisis & Issue Management •  Omnibus Research•  Social media •  Package Design •  Qualitative Research•  Apps development •  Branding and Identity •  Quantitative Research•  Platform development •  Signage •  Online Research•  Email Marketing •  Annual Report & Print Design •  Concept Testing•  Customer Relationship •  Electronic production •  Brand Tracking…. Management •  Video Production 3 marketing management consultants
  • 4. Best structure for managing your agencies •  The question remains, what is the best model and structure to deliver the strategic and creative capabilities marketers require in the most cost and time efficient manner, delivering the most effective marketing outcome?•  In many cases marketers find themselves making a trade off between the convenience of a single agency supplier with the depth of expertise from a range of specialist best of breed service providers.•  Ultimately the best model depends on: •  the strategic requirements of the marketers and the brand, •  the geographic scope of the operation, and •  the resources and skills required•  Following are some of the structures currently being used by a range of marketers and their organisations. 4 marketing management consultants
  • 5. Single Full Service Agency How it works•  Marketer selects a single service provider to deliver all of their marketing communications requirements.Strengths•  Simple to manage and align.•  Heralds back to the “Golden Age” of advertising depicted in “Mad Men”.Weaknesses•  Can be difficult to find a single company that delivers all of the skills to acceptable level of capability and expertise.•  Media buying is often more cost effective when handled through a larger centralised supplier.Best for•  Marketers with highly focused requirements.•  Where media buying efficiency is not a significant issue. 5 marketing management consultants
  • 6. Holding Company Model How it works•  One of the many holding companies, either global or regional, provides from within their portfolio of companies a customised package to fulfil the marketers needs.Strengths•  Holding company often provides management co-ordination of these services.•  Can achieve some streamlining of shared back end overheads and resources.Weaknesses•  Often difficult to find best of breed in all disciplines within the holding company.•  Often each company will work to separate P&Ls but disputes usually managed by Holding Company.Best for•  Marketers with aligned brand strategy with diverse service requirements across multiple markets. 6 marketing management consultants
  • 7. Customised Agency How it works•  Holding Company access prime resources across multiple companies to create a new virtual or real service provider entity.•  Can operate on a local, regional or global basis.Strengths•  Single point of contact, single management, single P&L.•  Customised to the specific needs of the marketer, including the choice of key staff.Weaknesses•  Usual issues associated with establishing any new business in regards to processes, relationships, etc.•  Can be problematic unbundling if it is unsuccessful.Best for•  Major marketers with clearly defined strategies looking to outsource management of implementation. 7 marketing management consultants
  • 8. Lead Agency How it works•  Key strategic service provider takes responsibility for managing and co-ordinating all service providers by brand.•  Can also be structured with all service providers from one holding company.Strengths•  Effectively outsources the management role to a key supplier.•  Places focus on and guarantees influence for key strategic supplier.Weaknesses•  Requires a high level of trust and open and regular feedback.•  Can lead to the lead agency becoming a gate-keeper rather than a facilitator.Best for•  Long term established relationships with high level of trust or where the suppliers are aligned within a common company structure. 8 marketing management consultants
  • 9. The Strategic Group How it works•  Representatives from the core strategic suppliers form a management group to co- ordinate strategy development and implementation.•  Can also be structured with all service providers from one holding company.Strengths•  Collaboration ensures elimination of duplicated efforts.•  Obtains the best outputs from all suppliers.Weaknesses•  Can require significant time and resources to establish.•  Needs some management to ensure no one supplier is dominating.Best for•  Marketers with complex or difficult segments requiring co-ordinated specialist multichannel strategy and implementation. 9 marketing management consultants
  • 10. Strategic Tier How it works•  Takes a holistic approach to supplier portfolio, providing access to the range of services required in a more manageable, structured approach.•  Can also be structured with all service providers from one holding company.Strengths•  Recognises the roles and relative importance the different suppliers provide in brand strategy and management.•  Allows best of breed / best fit to be selected and integrated.Weaknesses•  Still requires marketers to co-ordinate and manage suppliers but in a more structured and strategic way than the best of breed.Best for•  Marketers and brands requiring a range of specialist skills in a co-ordinated approach to the market. 10 marketing management consultants
  • 11. Best Of Breed How it works•  Marketer identifies and selects the suppliers required to deliver the capabilities and services required from the total supplier population.Strengths•  Ability to choose the best fit service provider in each category.Weaknesses•  Requires significant internal resources to manage each supplier relationship and to foster and develop collaborative environment.Best for•  Marketers with specific specialist needs, highly focused but challenging strategies.•  Organisations with suitable level and type of internal resources for supplier management. 11 marketing management consultants
  • 12. Comparison of models Ease of management Full Service Customised AgencyComplexity Simplicity Lead Agency Strategic Group Holding Company Strategic Tier Best of breed Flexibility 12 marketing management consultants
  • 13. What is the best model for you? •  There are a number of steps to •  From this information you can develop a determining the right range of suppliers Requirements/Capabilities Matrix from and the best structure for managing the which you can determine: same. •  The shortfalls or gaps in the current•  This is the TrinityP3 Strategic Supplier supplier capabilities that require new Alignment: or different suppliers. 1.  Define and map the current supplier •  Duplications in the current supplier landscape – this should be as wide services which can be rationalised. and encompassing as possible •  Potential structural models are compared including supplier categories and against: geographies. •  The Requirements/Capabilities 2.  Undertake one-on-one interviews with Matrix. the current brand/marketing teams to determine immediate and future •  The future strategic requirements of requirements, and current supplier the brand. performance against their •  The resources available within the requirements. marketing team and organisation. 3.  Undertake one-on-one interviews with •  With the Requirements/Capabilities the suppliers to determine their Matrix and a preferred supplier structural capabilities supported by case model, an implementation plan is studies and testimonials from other developed for transforming from the agency clients. current to future state. 13 marketing management consultants
  • 14. For more information please contact TrinityP3 Pty Ltd Sydney +612 8399 0922 Melbourne +613 9682 6800 Hong Kong +852 3589 3095 Singapore +65 6884 9149 people@trinityp3.com www.trinityp3.com 14TrinityP3’s liability is limited as per our standard terms and condition as approved by the client prior to the project commencing marketing management consultants