Advertising+agency

ADVERTISING AGENCY

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An advertising agency is an independent organization that provides one or more specialized advertising and promotion related services to assist companies in developing, preparing and executing their advertising and other promotional programmes.

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There are basically four types of ad agencies. They are

In-house agencies Creative boutiques Media buying agencies Full service agencies

In-house Ad Agency

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An in-house agency is an ad agency set up, owned and operated by the advertiser. Many companies use in-house agencies exclusively; others combine in-house efforts with those of outside agencies.

A major reason for using in-house agency is to reduce advertising and promotional costs.

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Companies with very large advertising budgets pay a substantial amount to outside agencies in the form of media commissions. With an internal structure, these commissions go to the in-house ad agency. An in-house ad agency can also provide related work such as sales presentations and sales force material, package design, and public relations at a lower cost than the outside agencies.

Reasons to have an in-house agency

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Time savings, bad experience with outside agencies, and the increased knowledge and understanding of the market that come from working advertising and promotion for the product or service day by day are also reasons. Companies can also maintain a tighter control over the process and more easily coordinate promotions with the firm’s overall marketing programmes.

Limitations

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Opponents of the in-house agencies say that they can give the advertiser neither the experience nor the objectivity of the outside agency and nor the range of services. They argue that the outside agencies have a more specialized staff and attract the best creative staff. Also flexibility is higher since if the company is not satisfied with the agency it can be dismissed, whereas changes in an in-house agency could be slower and more disruptive.

Examples

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Levers - Lintas (previously) Videocon – Confidence Reliance – Mudra (when Mudra started

out)

Advantages Disadvantages

In house agency

Cost savingMore controlIncreased coordination

Less experienceLess objectivityLess flexibility

We can summarize by:

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Creative boutique

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Creative boutique is an agency that provides only creative services. These specialized companies have developed in response to some client’s desires to use only the creative talent of an outside provider while maintaining the other functions internally.

Reasons for hiring a boutique

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Because he wants an extra creative effort May be because its own employees of the in-

house agency or the agency that he has appointed do not have sufficient skills in this regard.

The full-service agencies also sub-contract work creative boutiques when they are very busy or want to avoid adding full time employees to their pay roll.

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Creative boutiques are usually found by members of the creative departments of full service agencies who leave the firm and take with them clients who want to retain their creative talents. These boutiques generally perform creative function on a fee basis.

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RMG David Vyas Gianetti Creatives Chlorophyll

Media Buying agencies

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Media buying agencies are independent companies that specialize in the buying of media, particularly radio and television.

The task of purchasing advertising media has grown more complex as specialized media proliferate, so media buying services have found a niche by specializing in the analysis and purchase of the advertising time and space.

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Agencies and clients generally develop their own media plans and then hire the buying services to execute them.

Some media buying agencies do help advertisers plan their media strategies.

Because media buying agencies purchase such large amounts of time and space, they receive large discounts and can save the agency’s or client’s money on media buying.

Media buying agencies are paid a fee or commission for their work.

Examples

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Mindshare Initiative Media (LOWE) Zenith Media (Bates, Saatchi &

Saatchi) Optimedia (Publicis) Starcom (Leo Burnett) Fulcrum (HTA)

Full-service agency

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The function of an advertising agency is to see to it that its client’s advertising leads to greater profits in the long run than could be achieved without the ad agency.

Most such agencies are large in size and offer their clients a full range of services in the area of marketing, communications and promotions.

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These include planning, creating and producing the advertisement, media selection and research. Other services offered include strategic marketing planning, sales training, package design, sales promotion, event management, trade shows, publicity and public relations.

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The full service agency is composed of various departments; each is responsible to provide required inputs to perform various functions to serve the client.

BOARD OFDIRECTORS

EXECUTIVEDIRECTOR

CLIENTSERVICING

ACCOUNTSMANAGER

ACCOUNTSDEPT.

COPY DEPT.

TRAINEECOPYWRITER

LANG.COPY WRITER.

ENG. COPYWRITER

COPY CHIEF

MARKETRESEARCH

DEPT.

ADMIN.

ACCOUNTSHEAD

ACCOUNTSASSTS.

PROD. DEPT.

ARTDEPT.

AUDIO -VISUAL DEPT.

AUDIO -VISUAL DEPT.

TV - HEAD & TEAM

RADIO -HEAD & TEAM

ARTDIRECTOR.

VISUALISER

JUNIORARTIST

PHOTO - GRAPHER

PROD.MANAGER

PROD.ASSTS.

MEDIADEPT.

MEDIADIRECTOR

MEDIACHIEF

MEDIAASSTS.

ACCOUNTSSUPERVISOR

ACCOUNTSEXECUTIVE

TRAINEE /JUNIOR - AE

A TYPICAL ADVERTISING AGENCY SET - UP

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Client Servicing Dept. …

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Very important Dept. Ambassadors of the AgencyOnly ‘contact’ / link between

the Client & AgencyWith Client - represent the Agency In Agency - represent the Client

The Origin …

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Client To Account Executive {AE}

AE the ONLY CONTACT of the Client

Client requirement = Instructions

In Advertising = “Brief / ing”

Client Servicing Dept. …

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In contact / interacts with “all” the Depts. of the Agency – hence, must have through knowledge of the working and functions of the Departments

A Good AE ?

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Must be: Very good “Communicator” – listen,

understand & pass - on communication effectively-

AE must UNDERSTAND the “Brief/ ing” thoroughly – no ambiguity

AE must be able to CONVEY this “Brief” to the concerned Department in the Agency

A Good AE ?

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Very ‘Friendly & Social’ – get along with people – Client, Agency and Third PartyGood ‘Planner’

A Good AE ?

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Must believe in “Team Work”Must think & work towards the Agency & Client’s interestAs a Team Leader must accept the Blame for any error, yet pass on the Praise for the ‘Good work’Must be open to ‘New Ideas’Be aware of Media trends

A Good AE ?

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Must NOT be unreasonable as to ‘deadlines’ to any Dept.Ensure that the Creative Team visit the Client’s plant and understand the processMust appreciate the work of the Creative Team

A Good AE ?

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Must have sufficient knowledge of printing technologyInteract & build good relationship with other Depts. of the ClientAll jobs can’t be Urgent – don’t accept unreasonable deadlines

The AE should ask …

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Why - reason ? Who - target audience ? When to reach them ? Where to reach them ? What is the time span ? How frequently to reach them ? Budget ?

Back In The Agency …

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Meeting with Creative Dept. – Art & CopyCopy first – visual accordinglyRough Layouts – to AEAE to ClientClient may approve / reject / rework in combination

Back In The Agency …

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Process on till Client’s approvalMeeting with Media Dept.Media selection / recommendation / estimateClient may approve / reject / rework

Back In The Agency …

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Eventually approvedScheduling of the planMeeting with Production Dept.Printing estimate

Back In The Agency …

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Client may approve / reject / rework – change in paper / specifications / quantity / number of photographs {any change of specifications}

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Account Executive Account Executive {AE} is {AE} is

the Central Hub the Central Hub around whom around whom

the Agency the Agency RevolvesRevolves

& & EvolvesEvolves

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RevolvesRevolves

Procure new assignments and all the

Departments get to work – kept busy

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EvolvesEvolves

Procure new / more assignments and the

Agency grows …

So does the AE

With Client …

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The layouts / media estimate / production estimates - reworked till Client is satisfiedClient approves themGet Client’s approval & signature on layout, and estimates – gives authenticity

Back In The Agency …

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Approval given to the respective Depts. to go aheadFinal artwork – Art Dept.Copy to check the copyClient’s approval and signature on Final artwork

Back In The Agency …

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Advertisements release in Media as per media schedule

Release Order { R.O.} to media to publish / release the advertisement as per instructions – date, page number, etc.

Back In The Agency …

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Advertisements released in Media as per R.O.

Media Dept. to make bill and attach ‘Voucher Copy’ as proof of release

Photograph of Print/Clipping/Hoarding etc. as proof of release

Back In The Agency …

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Production Dept. undertake printing as per the specification of the approved estimate

Delivery to Client with proper Challan – P.O. / Letter / Reference number and obtain the same

Back In The Agency …

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Production to make Bill {far as possible attach copy of printed matter to bill}

All bills checked by Accounts Dept.

Handed to AE

Back In The Agency …

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AE to Client

AE to follow Client for payment

AE should know the ‘System’ at Client’s end for follow up and faster recovery of money

AE’s job NOT over till payment is received

A Good AE ?

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Some important things to remember when visiting a

Client

A Good AE ?

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Understand the Services the Agency can offer

Interact with colleagues about the Client – to offer better service

Client may not be familiar with Advertising terms / jargon – try to educate him

Be proactive – a news item, something heard

Get to know as much as possible about the Client – likes / dislikes

A Good AE ?A Good AE ?

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Be structured and brief in your discussion

Be punctualDress neatly – reflects your AgencyListen to the Client - understand his

requirement – reconfirmDo not over commitPlan your actions and follow upBe prompt in your Call / Service ReportFollow up for payments

A Good AE ?A Good AE ?

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Do not over commitPlan your actions and follow upBe prompt in your Call / Service Report

Follow up for payments

Ten Commandments …

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1. Return Client’s call immediately2. Send Contact Report regularly3. Don’t make false promises4. Check & double check all

material & bills5. Trust your colleagues

Ten Commandments …

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6 Don’t take things for granted7. Be prepared for ‘anything’8. Take the initiative9. Don’t be afraid to ask for help10. Job is NOT over till the payment is received from the Client

Copy Dept…

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Write copy for Advertisements Hoardings Printing matter Radio Television Anything else

Art Dept…

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Create visuals / artwork for advertisements on the basis of the written text of the Copy Dept.

Visualising …

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Creating the ad as per the Copy – thus understand the language and message

Link of Copy & Visual

Ability to picturize the advt. in Newspaper / TV / Outdoor / Print

Model Coordinator …Model Coordinator …

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Maintain profiles of Models, and their details – category, price, availability, etc.

Media Dept…

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Maintain PR & Good Rapport with the Media Vehicles – Newspapers & Publications, Hoarding Contractors, Radio Stations & TV Channels, etc.

Media Dept…

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Must have rates and other details of the Media Vehicles – Newspapers & Publications, Hoarding Contractors, Radio Stations & TV Channels, etc.

Media Dept…

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EstimatePlan ScheduleReleaseFollow upBill – Client / MediaHandle Press ConferencesPR Dept. of the Agency

Production Dept…

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Looks after all the Printing jobs of the Agency for the Client

Must have rates and other details of various suppliers like – Printers, Processors, Paper Merchants, Binders, etc.

Production Dept…

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EstimatePlan SchedulePurchase / PrintPhysical Supply / Deliver

Follow upBill – Client / Suppliers

Other Depts …

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Audio Visual – actual shooting, editing, and making the ‘finished product’ as per the approved “Story Board”

Other Depts …

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Coordinating with the various suppliers and personnel like camera men, light men, etc.

Other Depts …

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Market Research - MBA Accounts – B.Com HR / Personnel Administration

Stages in the client-agency relationship

Stages in the client-agency relationship

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Pre-relationship stage

Development stage

Maintenance stage

Termination stage

Pre-relationship stage

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The period before the agency has been hired; the first-impression stage when all are on their best behavior, trying to get the business or get the best agency

Development stage

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The honeymoon period immediately after the agency has been retained Rules are set and relationship established .First taste of reality of relationship

Maintenance stage

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Maintenance stage is the day-to-day working relationship

Termination stage

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Period when all problems are tested which may or may not be resolved Irreconcilable difference may occur. The way the termination stage is handled is an important factor in determining whether the two ever get back together.

Factors affecting the client-agency relationship

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Chemistry - between client and agency staffs. If there is proper understanding between them the relationship will be smooth. If ego clashes occur the relationship will be stormy

Communication - constant, open, honest communication is vital for success.

Conduct - what everyone in the relationship does - both the work process and the work

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Product. Changes: Many a time unannounced changes in product lead to major shift in the strategy which might lead to friction.

Personnel: In change in Personnel on either side can lead to change in the relationship equation.

Competitive situation: Change in competitive situation demand more involvement on both side professionals.

Working Environment on side will influence the relationship

Issues in the Agency-Client Relationships

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Sales and corporate objectives: Most of the client want agency to focus on sales and marketing objectives, instead of only focusing o the creative strategy.

Return on investment (ROI): Most clients place, return on investment at the heart of its account.

Innovation and creativity: Is another key toward enhancing the relationship, as companies increasingly rely on agencies to come up with new and innovative ideas to drive sales.

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The team members are too junior Don't understand client business objectives:

The biggest hurdle remains an inability among agencies to understand their clients' business objectives while trust and cost also weigh heavily on relationships.

Not responsive Lack of trust in the relationship

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Senior staff unavailable Incapable of providing Strategic counsel Overshooting Cost and budget A slowness to respond to changing needs

was pinpointed as one of the major criticisms of agencies by their clients

Understanding the Client's Business

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When you understand the client's business, you tend to listen at a deeper level. You'll know what's motivating your client, and will be able to function from a position of greater confidence because you have a working knowledge of situational undercurrents.

You don't need to know all the details. But being familiar with the landscape of a client's business demonstrates that you care about the relationship. And nothing builds trust more effectively than simple attention.

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Knowing enough to understand what your client goes through day by day gives you an advantage over the other 99% of writers who do not trouble themselves to learn. It also shortens your learning curve, meaning that you can take more quickly take problems off your clients' hands -- and therefore off their minds.

There is no greater reward than being trustworthy enough to perform such a service.

Pay attention to the general flow of your client's business.

The questions you should probe

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What's the business focus? Who are the client's customers? What does it take to get the client's product or

service into those customers' hands? What is the client's long-term business

strategy?

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When working with a small organization, the answers to those questions will revolve around the whole business. In a larger company your focus must be on the client's immediate business concerns, which are often on satisfying the needs of internal customers. The questions, though, remain the same in either case.

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Understanding the client's business takes time. Approach the task with determined patience, and avail yourself of tools that simplify the task. One of the most effective tools you can use to build your knowledge over time is the client profile.

Client profile

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Building a Client Profile When you engage a new client, create a folder

(real or virtual) and begin a client profile. A client profile is a biography of sorts, giving attention to history, the present, and the future. In it you can record your observations as your relationship with the client grows, noting what works -- and what doesn't.

Your client profile should contain:

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A brief statement of what the client's business is. What is the client's product or service? What makes that product or service unique? In the case of a client who works in the communications or publications department of a larger company, you'll want to know both what the company’s products and services are, AND how your client serves the company.

Important points to ponder

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1. A list of key client contacts and information about each one. You'll expand the list over time. Building good relationships means knowing the people you work with and understanding what motivates them. It also makes business far more pleasant when you are on friendly terms with your contacts. It's not a matter of feigning interest. It's a matter of knowing people well enough to create partnerships that work for both of you.

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A brief history of the client's business. How long has the client been in business? What's the story behind the product or service?

A simple profile of your client's customers or clients. Who does your client serve? How does your client reach his or her clients, and how does he or she address the business problems of those customers?

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A statement of the client's overall business goals. That's something more than "make money." Does your client want to be the number one purveyor of widgets in the world? The number one provider of janitorial services in the region? Be specific.

A list of the client's main competitors. Knowing who your client competes with helps you see why the client's product or service is positioned the way it is -- and what could be wrong with that positioning. Researching the competition also helps you find better angles for your marketing copy or product documentation. You'll see what the competition is doing and show your client how to do it better.

BUSINESS MODEL:

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There are two businesses Model: • a) Centralized system• b) Decentralized System

Centralized system:

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Centralized Advertising Activity has been defined as that which - is located at or directed by headquarters, reporting to corporate sales or marketing head or in top management.

In operation it gets the necessary product, market, and budget information from the divisions and then controls the execution of the various programmes by:

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1. Providing the needed information and guidance to the advertising agency and other services;

2. Then reviewing and approving the completed work before getting division approval

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In many organizations, marketing activities are divided along functional lines, with advertising placed alongside and other marketing functions such as sales, Mktg research and product planning. The advertising manager is responsible for all promotions activities. In this system the advtg manager controls the entire promotions operations, including budgeting, co-ordination in production of ads, planning media schedules and monitoring & administrating the sales promotion.

Eg: Ranbaxy, Cipla.

Advantages of centralized system:

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Facilitates communication Fewer personnel required Continuity Allows for more top management

involvement.

DECENTRALISED SYSTEM:

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A Decentralized Advertising Activity is operated and controlled by individual units located in each major division, usually reporting to a division head or to a division marketing or sales head. The division advertising, sales and marketing people and control both the 'what' and 'how' of the advertising job, getting only advice and counsel plus miscellaneous services from a central advertising function.

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In large corporations with multiple divisions & many different products, it is very difficult to manage all the advertising, promotional & other functions through a centralized department. These types of companies generally have a decentralized system with separate manufacturing, research & development, sales & marketing departments for various divisions, products line or business.

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Under this system, the responsibilities & functions associated with advertising & promotions are transferred to the brand manager who works closely with the outside advertising agency & other marketing communication specialists as they develop the promotion programmes.

Advantages of decentralized system:

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Each brand receives centralized managerial attention resulting in faster response to both problems & opportunities.

The brand manager system is also flexible & makes it easier to adjust various aspects of the advertising & promotional programs such as creative platform & media & sales promotion schedules.

Centralization or Decentralization

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Should advertising be done on a centralized basis or should the responsibility be delegated to lower levels - say product or geographical divisions?

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In practice, however, it has been found that most companies follow the centralized pattern of advertising organization. There are at least two important reasons for it.

1. It is difficult to transfer the tasks of preparation and execution of creative advertising from to the many without loss of efficiency to a great extent.

2. Most companies entrust their advertising work to outside agencies and it is more convenient with them in a centralized way

Defining the Essence of a Service

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An act or performance offered by one party to another. An economic activity that does not result in ownership.

A process that creates benefits by facilitating a desired change in:

customers themselves physical possessions intangible assets

Distinguishing Characteristics of Services

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Customers do not obtain ownership of services Service products are ephemeral and cannot be

inventoried Intangible elements dominate value creation Greater involvement of customers in

production process Other people may form part of product

experience

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Greater variability in operational inputs and outputs

Many services are difficult for customers to evaluate

Time factor is more important--speed may be key

Delivery systems include electronic and physical channels

Elements of the Services Marketing Mix: “7Ps” 0f the Services Marketing Mix

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The original 4Ps• Product elements• Place and time• Promotion and education• Price and other user outlays Adding Three New Elements• Process• People• Physical Evidence

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Process: A process is the method and sequence of actions in the service performance. Creating and delivering product elements to customers require the design and implementation of effective

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People: People strongly influence the customer’s perception of the quality of the service. Significant effort given to recruiting, training and motivating employees.

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Physical Evidence: Service firms need to manage physical evidence carefully as it can have a profound impact on customers’ impressions. Physical evidence is in the form of buildings, landscaping, vehicles, interior furnishing, equipment, staff members, signs, printed materials & other visible cues which provide tangible evidence of a firm’s service quality.

Understanding the Client behaviour

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Any marriage counsellor will tell you that 98% of problems in relationships are caused by a lack of communication. A lack of communication in terms of direct verbal exchange or as is often the case where exchanges occur, a lack of understanding as to what each partner is intending or meaning. Too much is left open to interpretation.

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The essence of successful client satisfaction therefore comes from successfully aligning the mindset and expectations of both client and professional providers. This needs to be done not just once but also on a regular update basis.

Managing a client relationship up to that level is not easy. It involves a mixture of direct and indirect inputs that need to be repeated for every piece work and for every client.

Practical approach

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Send 'thank you' letter on client acceptance of assignments. Ensure that all work is proceeding in the way that both parties agreed. To ensure it is on time.

To ensure it is within cost parameters; To turn 'promises' into 'realities'; Ideally checking at pre-arranged review

points. monitor and report the results of your activities:

To keep the initiative. To create new opportunities;

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To keep in contact with the decision-maker(s); To re-emphasize the benefits of your work to the

client. Expand your contacts in the client firm. To increase your awareness of your client's total activity.

To brief, where ethical, other executives on past and present activities, and on the benefits to them.

Keep up to date with the client's industry and business. Which will help you identify other recommendations?

To confirm the client's confidence in you as an interested and informed business partner.

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Read the client's publications: To identify additional client priorities or needs. To keep abreast of the market language. Try to attend internal meetings of key clients: To present your services on subjects under

discussion;

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To keep clients informed on any of the firm's activities which might be of interest.

Invite the client or his staff where appropriate, to your functions to cement the relationship.

Try to get involvement in the client's planning processes.

Establish a key client monitoring system: To record past and current activities; To plan future activities together.

Conflict resolution

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In normal circumstances, our natural reaction when things go wrong is to try to put them right. Often however, in a working environment the notion of responsibility is submerged by the fear of being blamed for wrongdoing, black marked or associated with failure. This phobia is particularly acute in professional firms where individual performance is everything.

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Despite all the public pronouncements made by various firms that accepting failure or making a mistake is an integral part of individual growth, the practical reality is that most partners find failure or problem resolution particularly difficult to manage. This is particularly true where blame or fault is clearly identified. This is understandable. The combative and confrontational style of management in certain industries often creates an environment of blame and aggression.

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Ironically part of the issue of failure in these areas is the very fact that failure or admission of failure being seen as unacceptable creates a tendency for people to cover things up. This in turn often makes things worse when the mistakes are eventually uncovered.

None of us are immune from this tendency; the issue of complaints or unhappy clients is often felt as one would a personal attack. Our instinctive reaction is to pull back and back off.

Accountability

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Don't procrastinate and delay - respond quickly.

Don't be aggressive or irritable but rather be understanding.

Apologise - this is not the same as accepting liability.

Be thorough in your investigation - this is no time for overlooking other potential issues.

Give a full explanation.

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The benefits of resolving client dissatisfaction are significant. Research shows that consumers who have had complaints dealt with satisfactorily are more loyal and more active advocates of the firms they have used than those who have not had cause to complain.

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A happy client is a client who has trust in his professional adviser. Trust that the adviser has his or her client's best interest at heart. Trust that the professional adviser has the capacity and capability to deliver the required expertise and trust that the fees charged are fair and equitable.

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Client trust is built up over time. It comes from clear two-way communication. Good listening skills are essential here. The communication must be supplemented by regular dialogue between client and provider. The dialogue must be structured and incorporate measurable quality standards. Where there is a breakdown in communication and mistakes have occurred, these must be dealt with positively and promptly.

This will not guarantee the perfect marriage but it will certainly generate a happier partnership.

Long-term commitment

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A constant complaint from agencies has been that they aren’t involved in the marketing process early enough. However, marketers believe this happens because agencies aren’t interested in the long-term vision of the brand, but only the short-term cause of billings.

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At the heart of the matter are issues such as the role of servicing, planning and creative, the need for agencies to be proactive and a better product offering. It’s a no-holds barred, no punches pulled, no quarter given battle. Here’s what BVR Subbu, president, Hyundai, has to say about advertising agencies in general: “Agencies have focused too much on FMCGs and the service sector.

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The automobile sector is very different. However, agencies have been conditioned to treat it in a similar fashion to FMCGs and the service sector. Often, they cloak this lack of understanding of the automobile business with jargon. They need drastic refinement in this aspect.” Stinging words from a man who leads the marketing charge of one of India’s biggest advertisers.

Why Agencies Lose Clients

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

Client’s evaluation of the agency

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The process of agency evaluation involves regular assessment of many aspects of performance area:

The financial assessment focuses on how the agency conducts its business to verify costs and expenses, the number of personnel hours charged to an account to an account and what payments are made to media and other outside service suppliers.

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Qualitative assessment explores the agency’s efforts devoted in planning, developing and implementing the client company’s advertising campaign and an assessment of the achievements. For a qualitative assessment even the small things matter; such as a quick turnaround time, creativity because this is what the agency is in the business of, value add in terms of giving the client a creative edge by giving them a ‘creative leap’ etc.

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One can also evaluate agencies by their track record of losing clients or acquiring new clients and retaining them.

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Good advertising is advertising that produces sustained results:

Good advertising requires: Thought, Innovation Precise execution Understanding every aspect of

marketing, advertising, design and media.

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Consistency, Creativity, Media relations: consistency and continuity with account personnel: A good agency will ensure there is consistency and continuity with account personnel. Sure, junior positions may change, but at the senior managers level, the client wants expects continuity here.

Basic approach for evaluating creative approaches:

a. Is the creative approach consistent with the brand’s marketing and advertising objectives?

b. Is the creative approach with the creative strategy and objectives? Does it communicate what it is supposed to?

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c. Is the creative approach appropriate for the target audience?

d. Does the creative approach communicate a clear and convincing message to the customer?

e. Does the creative execution keep form overwhelming the message?

f. Is the creative approach appropriate for the media environment in which it is likely to be seen?

g. Is the ad truthful and tasteful?

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Certainly a good agency will have passion for their client – not just the day they pick up the new account, but next year and the year after that. They will work hard to keep the passion alive and stay fresh.

A good agency will have a positive attitude, as negative thoughts and feelings about the client eventually leak into the work.

The agency must immerse themselves in the client’s industry. An agency owes it to the client to provide sound advertising and marketing counsel. This holds true even if they think the client doesn’t want to hear what they have to say.

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A good agency will keep in mind all of the pressures that exist on the client’s side. The client’s contact people may have many internal variables they have to work with that impact how—and how soon they can respond – and the speed of that response.

Take seriously the responsibility for spending a client’s money The agency should recognize that take seriously the responsibility for spending a client’s money as if it’s their own is a big responsibility – one it should take very seriously if they want to remain a valued partner.

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They will not be “yes” people. Finally, a good agency will remember that they are the experts in marketing and advertising. A good agency staff will have a firm point of view and “sell” for their recommendations to clients—they will not be “yes” people.

The parameters on which an ad agency’s creative services dept is evaluated

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Agency regularly produces fresh ideas and original approaches?

Creative executions are consistently on strategy? Research is effectively used in strategic

development and in pre-post testing of advertising

Creative group is knowledgeable about the company’s products, markets and strategies?

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Creative group is concerned with good and consistent advertising communications and develops campaigns, ads that exhibit this concern

Creative group produces on time and submits for review in time to permit orderly revisions

Creative group performs well under pressure

Agency presentations are well organized with sufficient examples of proposed executions

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Creative group participates in major campaign presentations

Agency presents ideas and executions not requested but which they feel are good opportunities.

Creative group takes constructive criticism and redirection

Creative group effectively controls costs Overall evaluation of creative services

Parameters on which an ad agency’s Media services dept is evaluated

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Media group actually explores the new uses of various media available

Agency media recommendations are objective and reflect sufficient knowledge of company’s markets, target consumers, services and objectives

Agency exhibits a broad capability in media as opposed to specializing in a particular medium

Agency keeps client up-to-date on the trends and developments in the field of media

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Agency subscribes to and makes use of available and applicable syndicated media services

Agency engages in original research in the field of selection and usage of media

Agency provides client with regular review and analysis of competition’s media’s usage

Agency media administrative practices are adequate, including co-ordination of media schedules, contracts, checking media to verify advertising has run, etc.

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Agency media administrative practices are adequate, including co-ordination of media schedules, contracts, checking media to verify advertising has run, etc.

Agency regularly conducts post-buy analysis on all media placements in a timely manner

Agency is effective in media negotiations for best possible rates and position for the company’s advertising

Media plans provide sufficient flexibility for opportunistic buys or other cost saving strategies

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Agency communications plan objectives and rationale effectively to brand management

Media strategies establish specific and measurable goals for reach, frequency and other objectives

SELECTION OF AN AD AGENCY

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When the advertising or the marketing managers go about selecting an advertising agency, they generally follow the following steps:

1 } Define what they want in an ad agency in terms of some specific services required etc.

2 } Tell the news media, such as The Brief, A&M, as well as local business editors that you intend to select an ad agency for your product. They will spread the news.

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3 } Screen the agencies that have replied to the advertisements on the basis of certain criterion and narrow the field down to four or five agencies.

4 } PRESENTATION/PITCH - Herein agencies that have been short listed receive an invitation from companies to make presentations. Through these presentations the agency may succeed in selling its services to new clients. The agency describes its experience, its personnel and capabilities, procedures, and demonstrates its outstanding work.

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The presentation may be speculative, requiring an analysis of the prospect’s marketing situation and propose a tentative ad campaign. The purpose is to indicate what kind of ad campaign they would create if they had the account. Such pitches are expensive and involve great deal of time and preparation without any assurance of gaining the business. Many ad agencies are disinclined to welcome and participate in such events as they believe agencies should be selected on account of experience and the quality of services they have provided to previous clients.

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5 } Choose the new agency on the basis of certain criterion and also at the same time inform the other agencies as to why they were not chosen.

Parameters that the client looks for while choosing an ad agency

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Agency’s knowledge of the advertising process Agency’s knowledge of the product category Client’s basis of experience with the ad agency Client’s knowledge of the abilities of the

agency

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The chemistry between the agency and the client with respect to the kind of interaction between them, the understanding of mutual needs etc.