24
Strategic Communications Agencies

Strat Comm Agencies

  • View
    968

  • Download
    0

Tags:

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Strat Comm Agencies

Strategic Communications

Agencies

Page 2: Strat Comm Agencies

AgenciesThe key playersTypes of agenciesHow agencies charge clientsOrganization of agencies

Page 3: Strat Comm Agencies

The Four Players

The ClientsThe Strategic Communication AgenciesThe MediaThe Vendors

Page 4: Strat Comm Agencies

Types of Clients

ManufacturersResellers (retailers)Institutions Individuals

Page 5: Strat Comm Agencies

The Agencies

Independent communications agenciesFull service agenciesCreative boutiquesSpecialty shops

In-house communication departments

Page 6: Strat Comm Agencies

Advertising MediaPrint (newspapers, magazines)Broadcast (television, radio)Outdoor (billboards, transit)Direct response (direct mail, telemarketing)Internet and InteractiveMiscellaneous

Page 7: Strat Comm Agencies

The Vendors

FreelancersConsultantsProduction Professionals

Page 8: Strat Comm Agencies

Types of AgenciesThe full-service agencyCreative boutiquesMedical agenciesPolitical agenciesMinority agenciesIn-house agenciesMedia buying services

Page 9: Strat Comm Agencies

The Full-Service AgencyMajor staff functions:Research and account planningAccount management/client serviceCreative servicesMedia planning and buyingPubic relationsPromotions and event planningDirect response Interactive

Page 10: Strat Comm Agencies

The Full-Service AgencyOther major agency functions:AccountingLegal ServicesTrafficProductionHuman resources

Page 11: Strat Comm Agencies

Services ProvidedAnalysis of marketing and cultural dataFormulation of core strategy and tacticsRecommendation of creative directionProduction of brand messages - Ad/PRCreate promotions and databasesPlacement in print, broadcast & InternetVerification of message placement

Page 12: Strat Comm Agencies

Creative BoutiquesSmall agencies focus on creativeSpecialize in producing adsLittle staff for research, strategy, media planning, or public relationsSub-contract for creative work from full-service agenciesOften have short life spans

Page 13: Strat Comm Agencies

Medical/Political ShopsEntirely service specialized clientsSpecialized knowledge of categoryProvide full-service functions

Page 14: Strat Comm Agencies

Minority AgenciesOften full-service agenciesSpecializing in campaigns that target minorities/specialized populationsBlacks, Hispanics, Asians, Gay/Lesbian

Page 15: Strat Comm Agencies

In-house AgenciesOwned and supervised by companyReasons for in-house agencies:SavingsSpecializationPriority serviceBut, minimum staffing of experts and

possibility of “group-think”

Page 16: Strat Comm Agencies

Media Buying ServicesOriginal format of ad agenciesSole function is media buyingGrowing complexity of media buyingBuying media in bulk

Page 17: Strat Comm Agencies

How Agencies are PaidThe Commission SystemThe Fee SystemIncentive-based Systems

Page 18: Strat Comm Agencies

The Commission SystemStandard rate: 15% of media buysTrend toward negotiated commissionFierce competition among agencies

Page 19: Strat Comm Agencies

The Fee SystemNegotiated hourly feeMedia buys billed directly to clientHourly rate rule of thumb:3 x hourly salary of each employee

Employee hourly salary =Salary / Hours worked per year

Page 20: Strat Comm Agencies

Incentive-based SystemsHigher fees for good performanceIncentives negotiated in advancePay per performance system

Page 21: Strat Comm Agencies

Organization of AgenciesOrganized around departmentsOrganized around clientsOrganized around tasksOrganized by ownership

Page 22: Strat Comm Agencies

Organizing Agencies

Page 23: Strat Comm Agencies

Tradeoffs in Agency Organization

Page 24: Strat Comm Agencies

Agency AssignmentGet in your agencies and decide what structure you want to adoptGreater integration usually results in more

coherent campaignsMore need to negotiate decisions - share

responsibilities for sectionsBe realistic about level of integration