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INTRODUCTION ADVERTISING AGENCY Advertising agencies are outside co mpanies that provide for the marketing and advert ising needs of other businesses and organizations. Advertising agencies offer a full range of advertising services and advice based on market studies, popular culture and advanced sales techniques. The American association of advertising agencies (AAAA) has g iven the following definition to describe advertising agencies: ³advertising agency is an independent business composed of creative and business people who develop, prepare and place advertising in advertising media for sellers seeking to find customers for their goods or services. Advertising agencies produce logos, creating effective and attractive color schemes to draw the consumer's attention to their clients' ads. They also prepare slogans and brochures, and write descriptive copy for sales materials. They may prod uce public service announcements for charitable organizations and social progra ms as well, and issue press releases for new programs, events, and products. Advertising agencies use assorted forms of media to promote their clients'  businesses or organizations, including magazine advert isements, news paper ads, radio and TV commercials, websites, and even infomercials. Some also plan events, provide booths at conventions, and give away pro motional items. The way advertising agencies wo rk is by getting to know t heir clients' product or service well and determining which demographic provides the best audience for promotion. If a company sells designer handbags, an ad age ncy would likely try to position the company's TV commercials during women's programming or on a channel geared toward women. The look and tone of an ad campaign is also dependent upon demographics. If the company's target audience is mature adults, design elements should be more traditional than if the target were a younger generation. FUNCTIONS OF AN ADVERTISING AGENCY - To differentiate the product from their competitors - To communicate product information - To urge product use (used) - To expand the product distribution - To increase brand preference and loyalty - To reduce o verall sales cost
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Apr 09, 2018

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INTRODUCTION

ADVERTISING AGENCY

Advertising agencies are outside companies that provide for the marketing and advertising needs

of other businesses and organizations. Advertising agencies offer a full range of advertisingservices and advice based on market studies, popular culture and advanced sales techniques.

The American association of advertising agencies (AAAA) has given the following definition to

describe advertising agencies: ³advertising agency is an independent business composed of 

creative and business people who develop, prepare and place advertising in advertising media for 

sellers seeking to find customers for their goods or services.

Advertising agencies produce logos, creating effective and attractive color schemes to draw the

consumer's attention to their clients' ads. They also prepare slogans and brochures, and write

descriptive copy for sales materials. They may produce public service announcements for 

charitable organizations and social programs as well, and issue press releases for new programs,

events, and products. Advertising agencies use assorted forms of media to promote their clients'

 businesses or organizations, including magazine advertisements, newspaper ads, radio and TV

commercials, websites, and even infomercials. Some also plan events, provide booths at

conventions, and give away promotional items.

The way advertising agencies work is by getting to know their clients' product or service well

and determining which demographic provides the best audience for promotion. If a company

sells designer handbags, an ad agency would likely try to position the company's TV

commercials during women's programming or on a channel geared toward women. The look and

tone of an ad campaign is also dependent upon demographics. If the company's target audience is

mature adults, design elements should be more traditional than if the target were a younger 

generation.

FUNCTIONS OF AN ADVERTISING AGENCY

-  To differentiate the product from their competitors

-  To communicate product information

-  To urge product use (used)

-  To expand the product distribution

-  To increase brand preference and loyalty

-  To reduce overall sales cost

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-  Creates new demands

IMPORTANCE OF AN ADVERTISING AGENCY

The need and importance of advertising can be best described by segregating the key points.

i) Manufacturers & Advertising

  Increases and stabilizes the sales turn-over 

  Maintains the existing market and explores the new

  Controls product prices

ii) Middleman & Advertising

  Guarantees quick sales

  Minimum efforts

  Makes retail price maintenance possible

  Sales forecasting

  Publicity

iii) Sales-force & Advertising

  Facilitates selling

  Reduces sales-man¶s burden of job

  Instills self confidence

iv) Consumers & Advertising

  Driving ±force in decision making

  Ensures better quality products at reasonable prices

  Saves good deal of time

v) Society & Advertising

  Uplifts the living standard

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  Generates gainful employment opportunities

  Provides new horizons of knowledge

DIFFERENT TYPES OF ADVERTISING

 ADVERTISING

Print

 Advertising

Outdoor 

 Advertising

Broadcast

 Advertising

Covert

 AdvertisingPublic-service

 AdvertisingSurrogate

 Advertising

Celebrity Advertising

 

The different types of advertising can best be understood through illustrations and examples.

Following are examples of the various advertising types:

PRINT ADVERTISING-

OUTDOOR ADVERTISING-

BROADCAST ADVERTISNG-

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COVERT ADVERTISNG-

SURROGATE ADVERTISING-

PUBLIC SERVICE ADVERTISING-

CELEBRITY ADVERTISING-

DIFFERENT TYPES OF AN ADVERTISING AGENCY

  FULL SERVICE AGENCIES

A full service agency offers their clients a full range of marketing, communications and

 promotions services, including planning, creating and producing the advertising; performing theresearch; and selecting the media. A full service agency may also offer non advertising services

such as strategic market planning; production of sales promotion, sales turning and trade show

materials.

PROS: This type of agency is able to provide turn key operations such as they have success to a

wide variety of creative people and other services.

CONS: they lack the desired control by the advertiser and there is also the possibility that the

agency may not fully understand the company, or the product services that are being advertised.

They can be closed minded if they aren¶t constantly looking for fresh ideas, creativity can be

lost.

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  LIMITED-SERVICE ADVERTISING AGENCIES

Some advertising agencies limit the amount and kind of service they offer. Such agencies

usually offer only one or two of the basic services. For example, although some agencies that

specialize in "creative" also offer strategic advertising planning service, their basic interest is in

the creation of advertising. Similarly, some "media-buying services" offer media planningservice but concentrate on media buying, placement, and billing.

When the advertiser chooses to use limited-service advertising agencies, it must assume

some of the advertising planning and coordination activities that are routinely handled by the

full-service advertising agency. Thus, the advertiser who uses limited-service agencies usually

takes greater responsibility for the strategic planning function, gives greater strategic direction to

specialist creative or media agencies, and exercises greater control over the product of these

specialized agencies, ensuring that their separate activities are well-ordered and -coordinated.

  SPECIALTY AGENCIES

A specialty agency is one that either works within a particular agency such as Medical,

Real estate, Education financial. A specialty agency is one that can also work for a particular 

function such as Internet, Public relations, Marketing and Research.

PROS: this type of agency is an expert in their particular area and therefore understands perfectly

what works and what does not.

CONS: they may also work too independently and therefore advertiser feels out of the loopcreating an undesirable working environment. Also, ideas can become stale if you do not

understand the consumer as someone with many interests.

  IN HOUSE AGENCIES

Some companies in an effort to reduce costs and maintain greater control over agency

activities have set up their own advertising agencies with their own organizations. This type of 

agency is set up, owned and operated by the advertiser. Large companies almost always have in

house agencies and it is common for them to then out source certain projects to retain certain³freshness´ for campaigns and special projects

PROS: a major reason for using an in house agency is to reduce advertising and promotion costs;

therefore there is more control on behalf of the advertiser. In house agencies also have a better 

understanding of the product and are aware of the goals and objectives of the company as most

likely there is also a public relations and marketing department within the organization

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advertisements. The creative department is also involved in handling other arenas like for 

instance, Citibank a client of Ambience Publicis asked them to improve their PR. Citibank have

a platinum card for special account members of their bank. The creative team in means to

improve their PR designed their platinum card in an effective way.

ACCOUNT MANAGEMENT (finance)

At the end every year you have to send the audit to audit body of India

Accounts of everything

What was bought additional expenses notified about any and all kinds of expenses. Auditing the

expenses.

ART WORK STUDIO

Finest art works once the client approves of the ad Creative team just the bases of the ad, artwork 

completes the ad makes it look to the best.

HR (HUMAN RESOURCES)

Hiring people, handles all the hr policies, pay hike, employee issues, order and maintenance

STRATEGIC PLANNING

Client wants to launch or makeover a product, if the client asks for help and pitches.

AGENCY COMPENSATION

Advertising agencies of all kinds are compensated in four ways:

1 Free for service: A per hour free for actual time billed.

2 Retainer: a monthly fee based on the pre determined amount of time

3 Commission: 15% over actual cost of placement

4 Mark ups: Compensation of above 20% of actual hard costs.

Regarding the compensation method of the agency, I was only told about the retainer fee method

follow- up.

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WAYS HOW AN AGENCY PITCHES ITSELF FOR BUSINESS

Interact with the client first coo, ncd, the planner for the pitch medium operations officer and

vice president

Park avenue, whole top order went for the pitch. Formal and informal

VIP LUGGAGE pitch went for 2-3 rounds

Campaign finances of the campaign the media used promoting

2

nd

round better campaign shortlist among the top two a month

Thumbs up taste the thunder ± ambience publicis current agency had to buy the rights of the

tagline

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SOME OF THE CLIENTS OF AMBIENCE PUBLICIS

COCA COLA

HEWLETT-PACKARD

LO¶REAL

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LG

 NESTLE

PROCTOR & GAMBLE

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RENAULT

SEIMENS

WHIRLPOOL

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INDEX

I] ADVERTISING AGENCY- INTRODUCTION

II] FUNCTIONS OF AN ADVERTISING AGENCY

III] IMPORTANCE OF AN ADVERTSING AGENCY

IV] DIFFERENT TYPES OF ADVERTISING

V] DIFFERENT TYPES OF ADVERTISING AGENCIES

VI] FACTORS IN SELECTION OF AN ADVERTISING AGENCY BY A CLIENT

VII] AMBIENCE PUBLICIS ± INTRODUCTION

VIII] DIFFERENT DEPARTMENTS OF AMBIENCE PUBLICIS

IX] AGENCY COMPENSATION

X] WAYS THE AGENCY PITCHES ITSELF FOR BUSINESS

XI] CLIENTS OF AMBIENCE PUBLICIS