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Pitching a tent in a hurricane (and what that

has to do with ROI).

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Agenda

Introduction

A story about stress

Client relationships

Conclusion

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in a storm

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Introduction

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Marketing Procurement

Agency

Three parties determine agency value

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Three parties determine agency valueOften feel agencies are inefficient - time is money - not getting optimal value. - thus brand performance is inhibited and some money wasted.

Cost reduction is their imperative as should be protection of value. But responsibility for value is devolved to Marketing. Measurable things are good, so time-based remuneration is good.

Marketing Procurement

Agency

Agencies need growth - in SOW and better margins. Client and talent retention are essential. Time-based pricing can be sub-optimal - little opportunity to improve margin.

Client remuneration deals increasingly include payment by results. Performance measures for agency bonus (or malus) often include measures for return on investment.

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The working environment

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The working relationship

Marketing Procurement

Agency

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A story about stress

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What is stress?

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Responsibility and control must exist in

the same place.

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Drachten - Holland

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Client relationships

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Value

External agency control

Diminishing return on control

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Disengagement

Arrogance Congruity

Compliance

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ClientLow Agency Responsibility/

Accountability High

Optimal ValueVanity and/or Innovation

Rubbish Mediocrity/ Conservatism

Meikle matrix

Playing safe lower ROI

Higher risk, higher ROI

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What contributes to client’s control?

ApprovalsProcess Strategy Research

Servility Risk Dependency Time

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AgencyC

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ClientLow Agency Responsibility/

Accountability High

Disengagement

Arrogance Congruity

Compliance

Often highly inefficient at agency cost

Often highly inefficient at client cost

Meikle matrix on efficiency

Highly efficient

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AgencyC

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Disengagement

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Meikle matrix on business problems

Market grow

th High

Low

Market share

Dog

Question Mark Star

Cash Cow

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AgencyC

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Moving within the Matrix

Client

Is it appropriate to the business

problem?

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What assurances can agencies give?

Talent Process Incentive Risk

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AgencyC

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ClientLow Agency Responsibility/

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Disengagement

Arrogance Congruity

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Moving within the Matrix

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Conclusion

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ROI needs to be consistent with the business problem.

And is the responsibility of the party in control.

Clients have to trust you to let relinquish control.

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thank you

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thank you