THE INTERNATIONAL BUSINESS FORUM

Actively Promoting Business to Business

2010 Marketing workshop

External agencies – choosing the right one

Some are born great,some achieve greatness ...

... and some hire public relations officers

Daniel J. Boorstin, US historian

1. Horses for courses – what do I (really) need?

2. IF I need an agency, how do I start sourcing one?

3. Mirror mirror, on the wall, which is the fairest of them all?

4. Best bang for the buck I – how do I manage my agency?

5. Best bang for the buck II – how much do I pay?

6. Help, I have no budget …

Horses for courses

• Do I really need an agency?

• If so, what sort of agency?

• Can someone in-house execute part or all of the project?

• Do I need brains or brawn? Or both?

• If I have an agency, who will manage them?

How do I source an agency?

• Well… what is:

• the target audience I want to address

• the key messages I want to put across

• the key objectives I want to achieve

• the budget I have set

• Look at references and call them up for a recommendation

• Research what has been written about them in industry press – have they won any awards (creativity, effectivity)

• In PR – what contacts do they have in media, what results and what reputation?

• Consider a specialized agency sourcing service

• You may want to write to 10 agencies and request their credentials

How do I choose an agency?

• Create a short list – 3-5, based on:• credentials and experience in your sector• expertise in what you need, be it business-to-business or

consumer advertising, PR or direct marketing etc. • in PR, a track record in the media you want to exploit

• Are they the right size? Bigger isn't necessarily better

• Do they have the right expertise?

• What is their reputation?

• How do they measure effectiveness?

• How do they charge and will they negotiate on fees?

• Are they a 'full service' agency

• Do I like them? Relationships matter!

The choice..,.

• Invite the agencies to pitch – give them:• a clear brief – linked to company business objectives• details of your budget• the nature of the contractual arrangement you want• a confidentiality agreement

• Find out if the team pitching to you will be the team that works on your account

• Personality is important - you need to get on well with people in the agency you employ if you're looking for a fruitful, long-term relationship

• Make the choice and give clear feedback to the agency why they were chosen as well as feedback to the agencies that were not chosen

• use a points system and have representatives present from all relevant business sectors

Manage the relationship – it’s an asset!

• Senior management should be involved in choosing the agency and involved in managing the relationship

• Arrange induction meetings - people from the agency can visit your business in order to better understand it, and your people can visit the agency.

• Organize an initial brainstorming event in which the two parties can productively get to know each other better.

• Have regular meetings:• the work of the agency can be reviewed• the effectiveness of campaigns can be measured• future strategies can be considered

• You need to manage the agency and set objectives, but also allow them the freedom to introduce their creative skills – DON’T RIDE THEM

Campaign/project checklist

• Does the agency understand your business objectives• Is the agency demonstrating an understanding of your market and

the competition• Insist that the agency report back to you regularly• Institute agreed measures of effectiveness with the agency• Assess whether the campaign is hitting targets - if not, find out

whether the agency is coming up with ideas to bring it back on track

• Calculate whether the agency is working to your agreed budget• Track results• Ensure you are still dealing with the people in the agency you

were first promised - consider the state of your relationship with them

• Make sure the agency is still being creative and coming up with ideas to take your communications strategy forward

Average costs

• Agencies are service businesses and should be experts at what they are doing. You are most likely not (in communications). Respect that and pay for it.

• Budgets need to include hard costs (production, media buying, agency fees etc.)

• Hourly fees for PR agencies are between 900 – 4500 CZK, depending on expertise, type of work etc.

• Media buying agencies are paid from commissions and extra back bonuses from media – up to 50% of the value of the media buying deal

• Consider negotiating directly with media• However, media agencies have very good media

planning software• Advertising agencies are paid for creative and account

management work – smaller full service agencies may waive some or all fees for media buying

No tengo dinero….

• Think outside the box• What am I trying to achieve?• What is the best way to achieve my stated business

goal?• What can I do myself?• How much is my marketing manager / PR manager

really costing me?• Why don’t I in-source an agency person part-time

[Brain] and make an assistant/junior manager available for them [Brawn]?

• Better I do some basic things well than try to encompass the whole field of marketing communications on a shoe-string budget

Thank you!

Questions & Answers