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Advertising agenciesAdvertising agenciesAdvertising agenciesAdvertising agencies
Advertising agencyAdvertising agency
Advertising agency is an independent organization Advertising agency is an independent organization that provides one or more specialized advertising that provides one or more specialized advertising and promotion related services to assist company and promotion related services to assist company in developing, preparing and executing there in developing, preparing and executing there advertising and other promotional programmes advertising and other promotional programmes
Top advertising co. in IndiaTop advertising co. in India
Ogilvy and Mather: Ogilvy and Mather: This company has offices across the globe. This company has offices across the globe.
J Walter Thompson India:J Walter Thompson India: About 200 offices in 90 countries. About 200 offices in 90 countries.
Mudra Communication Pvt. Ltd:Mudra Communication Pvt. Ltd: Established in the year 1980 at Mumbai. Established in the year 1980 at Mumbai.
FCB-Ulka Advertising Ltd:FCB-Ulka Advertising Ltd: CB-Ulka Advertising Ltd. In US 3 CB-Ulka Advertising Ltd. In US 3rdrd rank rank
RK Swamy/BBDO Advertising Ltd:RK Swamy/BBDO Advertising Ltd: It maintained the record of remaining consistently It maintained the record of remaining consistently among the top ten advertising agencies in India. Established in 1973 .among the top ten advertising agencies in India. Established in 1973 .
Grey Worldwide (I) Pvt. Ltd:Grey Worldwide (I) Pvt. Ltd: company is primarily based in Mumbai and has offices in company is primarily based in Mumbai and has offices in Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide Kolkata, Ahmedabad, Bangalore and New Delhi. It is a subsidiary of Grey Worldwide
Leo Burnett India Pvt. Ltd :Leo Burnett India Pvt. Ltd :it has a significant presence in about 96 offices in 10 countries it has a significant presence in about 96 offices in 10 countries ..
ccontract Advertising India Ltd:ontract Advertising India Ltd: It was founded in 1992 and is situated in Mumbai. It was founded in 1992 and is situated in Mumbai. Etc.Etc.
what agencies do.what agencies do.
Structure & organizationStructure & organizationStructure & organizationStructure & organization
and how they’re organizedand how they’re organizedand how they’re organizedand how they’re organizedto do it.to do it.to do it.to do it.
7 primary services:7 primary services:
complete acomplete a marketing analysis marketing analysis develop andevelop an advertising plan advertising plan prepare aprepare a creative strategy creative strategy create create advertising executionsadvertising executions develop and implement adevelop and implement a media plan media plan handle handle billingbilling and and paymentspayments integrate integrate other marketing communicationsother marketing communications
4 functions of full-service agencies4 functions of full-service agencies
account managementaccount management creativecreative media planning and placementmedia planning and placement researchresearch
agency organization chartagency organization chart
Traffic
Production ProductionBroadcast Analysts
Other MarketingCommunications
Services[PR, etc.]
Asst. AccountExecutive
AccountExecutive
ManagementSupervisor
Account Mgmt.Director
Copy Spvr. &Copywriters
Art Supervisor& Art Directors
CreativeGroup:
AssociateCreativeDirector
CreativeExec CD
ResearchAssistants
ProjectManagers
ResearchDirector
MediaPlanner
MediaBuyer
MediaSupervisor
AssociateMedia
Director
Media Dept.Director
StrategyReview Board[ManagmentCommittee]
Office Management[Personnel,Accounting,Legal, etc.]
President[COO]
Board ofDirectors
[Chairman/CEO]
Typical Full-Service Agency OrganizationTypical Full-Service Agency Organization
WritersArt Directors
Traffic
TVProduciton
Traffic
PrintProduction
VP CreativeServices
AccountExecutive
AccountSupervision
VP AccountServices
Media Research SalesPromotion
VP MarketingServices
Personnel Accounting Finance
OfficeManagement
VP Managementand Finance
President
Board ofDirectors
ArtistsArtists WritersWriters ResearchersResearchers
PhotographersPhotographers Media AnalystsMedia Analysts Other SkillsOther Skills
Ad Agencies Have Skilled SpecialistsAd Agencies Have Skilled Specialists
Represents agency to clientRepresents agency to clientClient relationshipClient relationshipKnowledge of client’s businessKnowledge of client’s business
Competitive actionsCompetitive actionsConsumer trendsConsumer trends
Helps set goals & budgetHelps set goals & budgetCoordinates day to day workCoordinates day to day work
account management account management account management account management
account management directoraccount management director management supervisormanagement supervisor account supervisorsaccount supervisors account executivesaccount executives assistant account execsassistant account execs account coordinators account coordinators
Traffic
Asst. AccountExecutive
AccountCoordinator
AccountExecutive
AccountSupervisor
Management.Supervisor
Account Mgmt.Director
account management account management account management account management
responsibilityresponsibility the creative department the creative department is responsible is responsible
for creating and producing the print and for creating and producing the print and broadcast advertisingbroadcast advertising
good creative work good creative work is always guided is always guided by aby a creative strategy creative strategy that sets forththat sets forth goals to be accomplishedgoals to be accomplished and and key key message points message points to be relayedto be relayed
the creative department the creative department is responsible is responsible for creating and producing the print and for creating and producing the print and broadcast advertisingbroadcast advertising
good creative work good creative work is always guided is always guided by aby a creative strategy creative strategy that sets forththat sets forth goals to be accomplishedgoals to be accomplished and and key key message points message points to be relayedto be relayed
creative departmentcreative departmentcreative departmentcreative department
creative departmentcreative department
executive & group creative executive & group creative directors directors
creative directorcreative director associate creative directorassociate creative director copywriterscopywriters art directorsart directors broadcast producersbroadcast producers print production managersprint production managers traffic coordinatorstraffic coordinatorsPrint
Traffic
ProductionBroadcast
Production
Copy Spvr. &Copywriters
Art Supervisor& Art Directors
CreativeGroup:
AssociateCreative
Director (ACD)
CreativeDirector (CD)
ExecutiveCreative
Director (ECD)
StrategyReviewBoard
media departmentmedia department
PlanningPlanningPlan media schedulePlan media schedule
BuyingBuyingExecute media planExecute media plan
PlanningPlanningPlan media schedulePlan media schedule
BuyingBuyingExecute media planExecute media plan
media directormedia director
associate media directorsassociate media directors
media supervisorsmedia supervisors
media plannersmedia planners
media buyersmedia buyers
media analystsmedia analysts
Analysts
MediaPlanner
MediaBuyer
MediaSupervisor
AssociateMedia
Director
MediaDirector
MediaMediaPlanPlan
media departmentmedia departmentmedia departmentmedia department
mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers
agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units
many large clients now look at many large clients now look at media as amedia as a separate serviceseparate service
mega-agency media departments mega-agency media departments have now becomehave now become profit centersprofit centers
agencies have set up their media agencies have set up their media departments asdepartments as free-standing unitsfree-standing units
many large clients now look at many large clients now look at media as amedia as a separate serviceseparate service
big changes in thebig changes in thebig changes in thebig changes in themedia departmentmedia departmentmedia departmentmedia department
research departmentresearch departmentresearch departmentresearch department Strategic planningStrategic planningConsumer researchConsumer researchHow does consumer interact with brand?How does consumer interact with brand?How does brand fit into consumer lifestyle?How does brand fit into consumer lifestyle?Pretest and posttestsPretest and posttests
ResearchResearchReportReport
research directorresearch director research project managersresearch project managers research assistantsresearch assistants outside research outside research
specialistsspecialists
research departmentresearch departmentresearch departmentresearch department
ResearchSuppliers
Outside
ResearchAssistants
ProjectManagers
ResearchDirector
ResearchResearchReportReport
Full-service advertising agency
AdvantagesAdvantages In-depth knowledge and In-depth knowledge and
skillsskills Obtaining negotiating Obtaining negotiating
muscle with the mediamuscle with the media Coordinating advertising Coordinating advertising
and marketing effortsand marketing efforts
DisadvantagesDisadvantages Some control is lostSome control is lost Larger clients are favored Larger clients are favored
over small clientsover small clients Occasionally inefficient in Occasionally inefficient in
media buyingmedia buying
Poorperformance
Poorcommunications
Unrealisticdemands
Personnelchanges
Changesin size
Conflict ofinterests
Changesin strategy
Decliningsales
Paymentconflicts
Policychanges
Poorperformance
Poorcommunications
Unrealisticdemands
Personnelchanges
Changesin size
Conflict ofinterests
Changesin strategy
Decliningsales
Paymentconflicts
Why Agencies Lose ClientsWhy Agencies Lose Clients
ReferralsReferrals
How Agencies Gain ClientsHow Agencies Gain Clients
SolicitationsSolicitations
PresentationsPresentations
Public RelationsPublic Relations Image, ReputationImage, Reputation
What Makes Effective Advertising?What Makes Effective Advertising?
Sound &
other
Creative
strategies
Consumer’s
View Persuasive
Doesn’t
Overwhelm
Deliver on
Promises
Break
Clutter
Effective
Advertising
Selecting an agencySelecting an agency
What is their attitude to What is their attitude to costs? Will they save us costs? Will they save us money?money?
How will they relate to our How will they relate to our media buying media buying agency/other specialists?agency/other specialists?
How important to them How important to them will our account be? Will will our account be? Will we be one of their larger we be one of their larger accounts, or simply a accounts, or simply a small fish in a very large small fish in a very large pool?pool?
Will they fit with our ways Will they fit with our ways of working? Are they of working? Are they willing and able to be willing and able to be business partners, or will business partners, or will they simply be suppliers? they simply be suppliers? (This depends – of (This depends – of course – on how we see course – on how we see our own style of dealing our own style of dealing with agencies)with agencies)
Paying the AgencyPaying the Agency
Commission systemCommission systemFees goalsFees goals
agency commissionsagency commissions
Rebates offered by media advertising Rebates offered by media advertising agencies (15%)agencies (15%)
Commission SystemCommission System
Agency creates commercial for Agency creates commercial for advertiseradvertiser
Agency contacts TV station for air timeAgency contacts TV station for air timeTV station bills ad agencyTV station bills ad agency
Cost of air time $ 10,000Cost of air time $ 10,000Less 15% Less 15% (1,500)(1,500)Due Due $ 8,500 $ 8,500
Agency bills advertiser $10,000Agency bills advertiser $10,000
Fee-based CompensationFee-based Compensation
fi May vary according to departments fi May vary according to departments or levels of salaryor levels of salary
Or flat hourly rateOr flat hourly rate Charges for out-of-pocket expenses, Charges for out-of-pocket expenses,
travel, etc.travel, etc. Media charges are net of Media charges are net of
commissions xed fee (retainer)commissions xed fee (retainer) cost-plus feecost-plus fee performance feeperformance fee commissioncommission
incentivesincentives
in theory, a good way to workin theory, a good way to work get paid based on how well you do, not how get paid based on how well you do, not how
much you billmuch you bill in practice, difficult to implementin practice, difficult to implement if client makes final decision (instead of if client makes final decision (instead of
agency), how can agency be responsible for agency), how can agency be responsible for final results?final results?
results based on many factors, such as results based on many factors, such as competitive efforts, not just advertisingcompetitive efforts, not just advertising
new businessnew business
three primary sourcesthree primary sources build existing client’s businessbuild existing client’s business add and sell new IMC servicesadd and sell new IMC services solicit new accountssolicit new accounts
two ongoing problemstwo ongoing problems “ “spec” workspec” work teams “walking” with accountsteams “walking” with accounts
““The critical objective and role of any ad The critical objective and role of any ad
agency is gaining new businessagency is gaining new business.”.”““The critical objective and role of any ad The critical objective and role of any ad
agency is gaining new businessagency is gaining new business.”.”
AssignmentAssignment
why might you be interested in going into why might you be interested in going into the agency business?the agency business?
what might keep you from choosing a what might keep you from choosing a career in the agency business? career in the agency business?