Advertising Agency
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Advertising Agency






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Advertising Agency Advertising Agency Presentation Transcript

  • Role of Advertising agency and other marketing communication organization
  • Organization of Advertising
    • Purpose is to communicate effectively
    • Five participants of IMC process
    • Advertiser (Client)
    • Agency
    • Media organizers
    • Marketing Communications Specialists
        • Direct Marketing Agencies
        • Sales Promotion Agencies
        • Interactive Agencies
        • Public Relations Firms
    • Collateral services providers
    • One of the most important element
    • Have product/services to offer
    • Or some cause to market
    • Is one of the final participant to decide about ad.
    Advertisers (Clint) View slide
    • Creates /produces/ place the ads. on media
    • Different types of agencies
    • Full service agency
    • Account services
    • Marketing services
    • Creative services
    Agency View slide
    • Basic Function is to provide
      • Entertainment
      • News
      • Knowledge in such a way that it provides an environment to agency or advertisers to buy their time and place
    Media organizers
    • are
    • Direct marketing agencies
    • Sales promotion agencies
        • Contests/sweepstakes
    • Interactive firms
        • Develop websites
    • Public relations firms
    Marketing communication specialist
    • Services which are been provided to agencies and media organizers
    • Like vendors
    • Printers etc.
    Collateral services providers
  • Organizational Structure of Advertising
    • Three types of structures each have its own adv. & disadv.
      • Central system
      • Decentralized system
        • Separate marketing, sales, advertising and promotion departments for various product lines or businesses of the company. Often use product or brand management system
      • In-house system
    • Selection of system depends upon
      • Size of the orgz.
      • # of products
      • Role of ads in the whole process
      • budget
  • Procter & Gamble uses the brand management system
  • Basic function of manager in centralized system
    • Planning and budgeting
    • Administration and execution
    • Coordination with other departments
      • Like makting research dept./sales dept./materials regarding POP.
    • Coordination with out side agencies and services
      • Media buying services/ collateral services agencies etc.
    • Advantages
    • Facilitated communications
    • Fewer personnel required
    • Continuity in staff
    • Involvement of top management/ experience is more
    • Disadvantage
    • Some times lower level staff can’t understand the over all mkting plan as the responsibility rests on top
    • Longer response time
    • Inability to handle multiple product line.
    Client Organization For IMC The Centralized System
  • Decentralized system or brand mangt. system
    • Advantages
    • More flexible in term of promotional programs
    • Centralized managerial attention
    • Rapid response to the problems.
    • Disadvantage
    • Sometimes brand mangers are at junior level lack of experience
    • Brand manger may have less authority over the execution of plan which they have created.
    • Misallocation of funds.
  • In-house system
    • Advantages
    • Cost saving
    • More control
    • Increased coordination
    • Disadvantage
    • Less experience
    • Less objectivity
    • Less flexible
  • No Fear uses an in-house agency Source: Courtesy No Fear.
  • Role of Advertising Agency
    • Is a service organization that specializes in
      • Developing
      • Preparing and
      • Executing the promotional programs for its client.
  • Reasons for using an outside Agency
      • U get highly professional people to work for.
      • Artists /writers /singers/media analysis are normally attached with
      • Agencies are specialized in certain areas like consumer goods etc.
      • U can get an overall image of mkt. very easily against company policies /biases/limitations or we can say it provides us an insight to the industry. an agency may have personnel who have worked in some client related industries.
  • 4 Types of Agencies
    • Full service agency
    • Involved in planning/creative /producing/research/media selection and also in some non advertising services like
      • Strategic mkting planning
      • Sales promotions
      • Sales training
      • Trade shows
      • Package design
      • Public relations programs
      • Publicity
  • Typical Full-Service Agency Organization
  • 2.Account services
    • Account management is to provide a link b/w client and agencies
    • Normally a very experienced and professional person of marketing is involved in such type of arrangement.
  • 3.Marketing services
    • Have :
    • Research departments
      • Who is the target audiences
      • Who is the ultimate consumers
      • Trends of industries
      • Consumers habits etc
      • Segment analysis etc.
    • Media departments
    • Must have media profiles
  • 4.Creative services
    • Responsible for creating and executing ads.
    • Copy writers: r the personnel who write ,headlines/subhead lines/body copy. May be involved in basic theme or the big selling idea of the promotional campaigns.
    • May have diff. departments
      • Art department
        • Prepare story board for TV
      • Production dept.
      • Traffic dept.
  • Some more types of services
    • Creative boutiques
      • Provides only creative services. e.g. supreme with Shoaib Mansoor
    • Media Buying Services
      • Some people only buy space in media and sell to others
  • Agency Compensation
    • Diff. Forms of compensation
    • Commission from media
      • 15% from media
    • Fixed fee method
    • Fee-commission combination
    • Cost plus agreement
      • Fee basis on the cost of its work
    • Pay actual cost+profit margin
    • Incentive based
    • % charges normally 20-25 % when sub let or purchase services from others.
  • Example of the Commission System
  • Why Agencies Lose Clients
    • Poor performance
    • Poor communication
    • Unrealistic demands
    • Personality conflicts
    • Personnel changes
    • Changes in size
    • Conflict of interests
    • Changes in strategy
    • Declining sales
    • Payment conflicts
    • Policy changes
  • How Agencies Gain Clients
    • Referrals
    • Solicitations
      • Making calls and following them
    • Presentation
      • People ask agency to come and present itself.
    • Presentations
    • Public Relations
    • Image and Reputation
  • Awards competitions are a way for agencies to build their reputation
  • A promotional agency advertises its services