Business%20Development%20in%20Agencies

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Business Development in Agencies
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Organization for BD

• Depends on size
• Larger agencies may have separate departments
• Headed by a VP / Director
• Department consists of servicing and planning /
  research staff.
• Creative / media support requested on need basis
• BD reports to Agency President / CEO

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Functions

• Create a new business plan
• Spot new business opportunities
• Present the agency in the most favorable light
• Make speculative pitches
• Discuss negotiate contracts and rate cards
• Finalize contracts turn over account to the
  servicing team

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Create a new business plan

• Set targets
• Quantity of new business
• Type of new business
• Business that is off limits (conflict of
  interest, non-competitive issues)
• Culture matching
• Minimum acceptable account size
• Costs of BD

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Spot NB opportunities

• Keep your nose to the ground
• New products, companies
• Accounts likely to move
• Network with businesses and even competition
• Create brand champions in industry (third party
  recommendations)
• Research company / brand performance, sales
  profits, advertising problems

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Spot NB opportunities (cont.)

• New ideas apply new ideas to brands you want to
  pitch for
• Initial discussions with potential client always
  carried out discreetly.
• Note BD responsible only for new accounts. More
  business from existing accounts account service
  team.

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Present agency credentials

• What sets you apart from other agencies
• Reach
• One-stop-shop vs. deeply specialized
• Business focus (b2b, b2c, retail, infotech,
  hitech, etc.)
• Values and Beliefs
• Track record
• Quality of staff
• Hard data (e.g. cap. billings, size, staff, past
  campaigns and results)
• Soft data (core competencies, values and culture)

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Present agency credentials

• What strengths will you bring to the table
• Policy on bringing creative media talent to
  presentations
• Customize presentations (canned presentations are
  less effective)
• Initial presentations do not address clients
  advertising problem
• Based on agency credentials, client may give a
  go ahead

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Speculative pitches

• Policy about spec. pitches (make/dont make,
  free/at cost, etc.)
• New ideas for old brands
• Often done without a complete client brief
• Pitches for new products always preceded by a
  client brief
• Comprehensiveness of the pitch (include only
  strategy or plus creative or plus media, etc.)
• Always identify and present the account team

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Speculative pitches

• Only agency vs. compete with several
• If past agency-client relationships have been a
  problem, client may open the account for review
• If you compete with several, clients try to
  assure a level playing field. Same client brief
  shared with all competing agencies
• Your effort directly proportional to how much you
  want the client.

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Contracts and rate cards

• Used to be standard not any more
• Open to negotiations
• Important clauses
• Length of contract and termination clauses
• Ownership of advertising materials like raw
  stock, four color positives, photographs, etc.
• Agency compensation
• Creative fees, consulting fees, material costs

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Contract Rate Cards (cont.)

• Important clauses (cont.)
• Agency client responsibilities and scope of
  work
• Privacy, conflict-of-interest clauses
• Minimum billing stipulation (if any) and
  make-good clauses if minimum billing is not
  achieved
• Penalties / liquidated damages for
  underachievement of objectives
• Bonus for overachievement for objectives.

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Finalize turn over to servicing

• No premature announcements
• Open champagne bottles only after client signs on
  the dotted line
• Especially important in case of accounts moving
  from one agency to another
• The work is only just beginning