Advertising Agencies

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Advertising Agencies
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EXH 2-24
3
Ad Agencies Combining Marketing and Advertising
Giving Product a Personality
Ad Agency Add Perceived Value to Product
of Client by
Communicating Basic Information
Setting Product Apart from Competition
Creating Image of Product
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How Agencies are Organized
Account Management
5 Areas of Importance
Internal Service
Creative Development Production
Account Planning Research
Media Planning Buying
Departmental system vs. Group system
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Agency Department System
President
Vice President Creative Services
Vice President Management Services
Vice President Marketing Services
Vice President Account Services
Media
Accounting
Art / Copy
Account Supervisor
Account Supervisor
Account Executive
Research
Purchasing
Production
Account Executive
Personnel
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Agency Group System
Agency Management
Group 2 Management Director
Group 1 Management Director
Group 3 Management Director
Account Service
Creative Director
Media Planning
Market Research
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EXH 2-20
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Why Agencies Lose Clients

• Poor performance or service
• Poor communication
• Unrealistic demands by client
• Personality conflicts
• Personnel changes
• Changes in size of client or agency
• Conflicts of interest

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Perceptions of Involvement Who Set Strategy?
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Perceptions What Is the Agencys Role?
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How Clients Compensate Agencies
Commissions
Fees
Combination
1982
1997
12
Trends in Methods of Agency Compensation (in
percentages)
SOURCE Data from the Association of National
Advertisers.
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10 Principles for Building a Better Relationship
with Your Agency

• Inculcate a spirit of partnership.
• Be wary of change for changes sake.
• Make sure your agency is making a fair profit on
  your account.
• Make the agency totally absorbed in the companys
  product, the people, and the corporate culture.
• Create an environment of experimentation and be
  prepared to pay for failure.

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10 Principles for Building a Better Relationship
with Your Agency

• Treat the agency people well.
• Agree on a clearly defined obj. for adv.
• Keep approvals simple, disapprovals kind.
• Make the agency responsible for the advertising
  and give it the authority it needs to be
  responsible.
• Give the agency a formal evaluation every year.