structure & organization what agencies do.and how they’re organized to do it.
7 primary services: s complete a marketing analysis s develop an advertising plan s prepare a creative strategy s create advertising executions s develop and implement a media plan s handle billing and payments s integrate other marketing communications
4 functions of full-service agencies s account management s creative s media planning and placement s research
agency organization chart Board of Directors [Chairman/CEO] President [COO] Other Marketing Strategy Office Management Communications Review Board [Personnel, Services [Managment Accounting, [PR, etc.] Committee] Legal, etc.]Account Mgmt. Creative Research Media Dept. Director Exec CD Director Director Management Associate Project Associate Supervisor Creative Managers Media Director Director Account Creative Research Media Executive Group: Assistants SupervisorAsst. Account Copy Spvr. & Art Supervisor Media Media Executive Copywriters & Art Directors Planner Buyer Broadcast Print Analysts Production Production Traffic
account managements liaison between agency and clients responsible for understanding... q the client’s business q the client’s marketing needs q strategy developments representing client point of view within the agency
account management Account Mgmt. Director s account management director Management. Supervisor s management supervisor Account Supervisor s account supervisors Account s account executives Executive s assistant account execsAsst. Account Account Executive Coordinator s account coordinators Traffic s traffic
creative departments responsibility q the creative department is responsible for creating and producing the print and broadcast advertisings strategy is key q good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed
creative department Strategy Review Board s executive & group creative Executive directors s creative director Creative Director (ECD) Creative Director (CD) s associate creative director Associate Creative Director (ACD) s copywriters Creative s art directors Group:Copy Spvr. & Art Supervisor s broadcast producers s print production managersCopywriters & Art Directors Broadcast Print Production Production Traffic s traffic coordinators
media departments The media department has two main functions - planning and buying.s The planning group handles more strategic marketing and media issues.s The buying group handles media negotiations and implementation.
media department Media Director s media director Associate Media s associate media directors Director s media supervisors Media Supervisor s media planners Media Media Media PlanPlanner Buyer s media buyers Analysts s media analysts
big changes in themedia departments mega-agency media departments have now become profit centerss agencies have set up their media departments as free-standing unitss many large clients now look at media as a separate service
research departments interpret market environment q gather and analyze research data. q primary and secondary techniquess determine consumer needs/perceptions q understand problemss advise how ads can meet Research strategic goals Report q help find solutions
research departmentResearchDirector s research director ProjectManagers s research project managersResearch s research assistantsAssistants Research Outside s outside research ReportResearchSuppliers specialists
3 ways agencies make money s commissions q usually 15% of gross costs s fees q usually based on negotiated hourly rate s incentives q still relatively new and problematic q usually based on performance goals
agency commissionss media commission system q 15% media commissions adjustable commission rates q negotiate to match client budget q sliding scales markups-production & service q add a percentage markup to costs q 17.65% of net = 15% of gross
4 types of fee systems s fixed fee (retainer) s cost-plus fee s performance fee s hybrid fee & commission
incentivess in theory, a good way to works get paid based on how well you do, not how much you bills in practice, difficult to implements if client makes final decision (instead of agency), how can agency be responsible for final results?s results based on many factors, such as competitive efforts, not just advertising
new businesss three primary sources “q build existing client’s business The critical objective and roleof q add and sell new IMC services any ad agency is gaining new business.” q solicit new accountss two ongoing problems q “spec” work q teams “walking” with accounts
things to think about:s why might you be interested in going into the agency business?s what might keep you from choosing a career in the agency business?