Advertising agency by rajesh


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  • Relation to text This slide relates to material on pp. 90-92 of the text which discusses reasons why agencies lose clients. Summary Overview While many successful client-agency relationships last for years, long-term relationships are becoming less common. The various reasons an agency might lose clients are shown on this slide. Some of these are avoidable while others may be beyond the agency’s control. Use of this slide This slide can be used to show reasons why an agency can lose its clients. Understanding these problems can help agencies avoid them.
  • Relation to text This slide relates to material on pp. 92-93 in the text that discusses how agencies gain new clients. Summary Overview Competition for accounts in the agency business is intense. For most large agencies, most new business comes from clients who already have an agency but decide to change their relationships. Thus, agencies must constantly search and compete for new clients. Some of the ways they do this are through Referrals Solicitations Presentations Public relations efforts Image or reputation Use of this slide Gaining new business is very important to advertising agencies. This slide can be used to show the various ways an agency can gain new business.
  • Advertising agency by rajesh

    1. 1. Advertising agencies
    2. 2. Advertising agency <ul><li>Advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist company in developing, preparing and executing there advertising and other promotional programmes </li></ul>
    3. 3. Top advertising co. in India <ul><li>Ogilvy and Mather: This company has offices across the globe. </li></ul><ul><li>J Walter Thompson India: About 200 offices in 90 countries. </li></ul><ul><li>Mudra Communication Pvt. Ltd: Established in the year 1980 at Mumbai. </li></ul><ul><li>FCB-Ulka Advertising Ltd: CB-Ulka Advertising Ltd. In US 3 rd rank </li></ul><ul><li>RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973 . </li></ul><ul><li>Grey Worldwide (I) Pvt. Ltd: company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide </li></ul><ul><li>Leo Burnett India Pvt. Ltd : it has a significant presence in about 96 offices in 10 countries . </li></ul><ul><li>c ontract Advertising India Ltd: It was founded in 1992 and is situated in Mumbai. </li></ul><ul><li>Etc. </li></ul>
    4. 4. what agencies do. Structure & organization and how they’re organized to do it.
    5. 5. 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>
    6. 6. 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>
    7. 7. agency organization chart
    8. 9. Typical Full-Service Agency Organization Writers Art Directors Traffic TV Produciton Traffic Print Production VP Creative Services Account Executive Account Supervision VP Account Services Media Research Sales Promotion VP Marketing Services Personnel Accounting Finance Office Management VP Management and Finance President Board of Directors
    9. 10. Ad Agencies Have Skilled Specialists Artists Writers Researchers Photographers Media Analysts Other Skills
    10. 11. <ul><li>Represents agency to client </li></ul><ul><li>Client relationship </li></ul><ul><li>Knowledge of client’s business </li></ul><ul><ul><li>Competitive actions </li></ul></ul><ul><ul><li>Consumer trends </li></ul></ul><ul><li>Helps set goals & budget </li></ul><ul><li>Coordinates day to day work </li></ul>account management
    11. 12. <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>account management
    12. 13. <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>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>
    13. 14. creative department <ul><li>executive & 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>
    14. 15. media department <ul><li>Planning </li></ul><ul><ul><li>Plan media schedule </li></ul></ul><ul><li>Buying </li></ul><ul><ul><li>Execute media plan </li></ul></ul>
    15. 16. <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
    16. 17. <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
    17. 18. <ul><li>Strategic planning </li></ul><ul><li>Consumer research </li></ul><ul><li>How does consumer interact with brand? </li></ul><ul><li>How does brand fit into consumer lifestyle? </li></ul><ul><li>Pretest and posttests </li></ul>research department Research Report
    18. 19. <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
    19. 20. Full-service advertising agency <ul><li>Advantages </li></ul><ul><li>In-depth knowledge and skills </li></ul><ul><li>Obtaining negotiating muscle with the media </li></ul><ul><li>Coordinating advertising and marketing efforts </li></ul><ul><li>Disadvantages </li></ul><ul><li>Some control is lost </li></ul><ul><li>Larger clients are favored over small clients </li></ul><ul><li>Occasionally inefficient in media buying </li></ul>
    20. 21. Why Agencies Lose Clients Poor performance Poor communications Unrealistic demands Personnel changes Changes in size Conflict of interests Changes in strategy Declining sales Payment conflicts Poor performance Poor communications Unrealistic demands Personnel changes Changes in size Conflict of interests Changes in strategy Declining sales Payment conflicts Policy changes
    21. 22. How Agencies Gain Clients Referrals Solicitations Presentations Public Relations Image, Reputation
    22. 23. What Makes Effective Advertising? Sound & other Creative strategies Consumer’s View Persuasive Doesn’t Overwhelm Deliver on Promises Break Clutter Effective Advertising
    23. 24. Selecting an agency <ul><li>What is their attitude to costs? Will they save us money? </li></ul><ul><li>How will they relate to our media buying agency/other specialists? </li></ul><ul><li>How important to them will our account be? Will we be one of their larger accounts, or simply a small fish in a very large pool? </li></ul><ul><li>Will they fit with our ways of working? Are they willing and able to be business partners, or will they simply be suppliers? (This depends – of course – on how we see our own style of dealing with agencies) </li></ul>
    24. 25. Paying the Agency <ul><li>Commission system </li></ul><ul><li>Fees goals </li></ul>
    25. 26. agency commissions <ul><li>Rebates offered by media advertising agencies (15%) </li></ul>
    26. 27. Commission System <ul><li>Agency creates commercial for advertiser </li></ul><ul><li>Agency contacts TV station for air time </li></ul><ul><li>TV station bills ad agency </li></ul><ul><li>Cost of air time $ 10,000 </li></ul><ul><li>Less 15% (1,500) </li></ul><ul><li>Due $ 8,500 </li></ul><ul><li>Agency bills advertiser $10,000 </li></ul>
    27. 28. Fee-based Compensation <ul><li>fi May vary according to departments or levels of salary </li></ul><ul><li>Or flat hourly rate </li></ul><ul><li>Charges for out-of-pocket expenses, travel, etc. </li></ul><ul><li>Media charges are net of commissions xed fee (retainer) </li></ul><ul><li>cost-plus fee </li></ul><ul><li>performance fee </li></ul><ul><li>commission </li></ul>
    28. 29. 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>
    29. 30. 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 .”
    30. 31. Assignment <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>