Description
BMS Sem-V notes. (Special Studies in Marketing)
advertising agencies
structure & organization
what agencies do. and how they’re organized to do it.
7 primary services:
? ? ? ? ? ? ? complete a marketing analysis develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications
4 functions of full-service agencies
? account management ? creative ? media planning and placement ? research
agency organization chart
Board o f Direct ors [Cha irm an/CEO] Pre sident [COO]
Other Mark e ting Com munica tions Services [PR, e tc. ]
St rate gy Review Bo ard [Mana gme nt Com mitt ee]
Off ice Manag eme nt [Perso nnel, Acco unting, Lega l, et c. ]
Acco unt Mg mt . Direct or
Crea tive Exec CD
Rese arch Direct or
Media Dept. Direct or
Manage ment Supe rvisor
Asso ciate Crea tive Direct or
Pro ject Manage rs
Asso ciate Media Direct or
Acco unt Executive
Crea tive Group:
Rese arch Assist ants
Media Supe rvisor
Asst . Acco unt Executive
Copy Spvr. & Copywrit ers
Art Supervisor & Art Directors
Media Planner
Media Buyer
Broa dcas t Pro duct ion
Print Pro duct ion
Analyst s
Tra ffic
account management
? liaison between agency and client ? responsible for understanding...
? the client’s business ? the client’s marketing needs ? strategy development
? representing client point of view within the agency
account management
Account Mgmt. Director Management. Supervisor Account Supervisor Account Executive Asst. Account Executive Account Coordinator
Traffic
? account management director ? management supervisor ? account supervisors ? account executives ? assistant account execs ? account coordinators ? traffic
creative department
? responsibility
? the creative department is responsible for creating and producing the print and broadcast advertising
? strategy is key
? good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed
creative department
Strategy Review Board Executive Creative Director (ECD) Creative Director (CD) Associate Creative Director (ACD) Creative Group: Copy Spvr. & Copywriters Broadcast Production Traffic Art Supervisor & Art Directors Print Production
? executive & group creative directors ? creative director ? associate creative director ? copywriters ? art directors ? broadcast producers ? print production managers ? traffic coordinators
media department
? The media department has two main functions - planning and buying. ? The planning group handles more strategic marketing and media issues. ? The buying group handles media negotiations and implementation.
media department
Media Director Associate Media Director Media Supervisor Media Planner Media Buyer
? media director ? associate media directors ? media supervisors ? media planners
Media Plan
? media buyers
? media analysts
Analysts
big changes in the media department
? mega-agency media departments have now become profit centers ? agencies have set up their media departments as free-standing units ? many large clients now look at media as a separate service
research department
? interpret market environment
? gather and analyze research data.
? primary and secondary techniques
? determine consumer needs/perceptions ? understand problems
? advise how ads can meet
strategic goals
? help find solutions
Research Report
research department
Research Director Project Managers Research Assistants Outside Research Suppliers
? research director ? research project managers ? research assistants
? outside research specialists
Research Report
auxiliary agency functions
? account planning ? strategy/creative review board ? office management
? human resources ? legal services ? accounting ? recruitment
3 ways agencies make money
? commissions
? usually 15% of gross costs
? fees
? usually based on negotiated hourly rate
? incentives
? still relatively new and problematic ? usually based on performance goals
agency commissions
? media commission system
? 15% media commission
? adjustable commission rates
? negotiate to match client budget ? sliding scale
? markups-production & service
? add a percentage markup to costs ? 17.65% of net = 15% of gross
4 types of fee systems
? fixed fee (retainer) ? cost-plus fee ? performance fee ? hybrid fee & commission
incentives
? in theory, a good way to work ? get paid based on how well you do, not how much you bill ? in practice, difficult to implement ? if client makes final decision (instead of agency), how can agency be responsible for final results? ? results based on many factors, such as competitive efforts, not just advertising
new business
? three primary sources “The critical objectivebusiness ? build existing client’s and role ?of any ad agency is gaining add and sell new IMC services ? solicitnew business.” new accounts
? two ongoing problems
? “spec” work ? teams “walking” with accounts
things to think about:
? why might you be interested in going into the agency business? ? what might keep you from choosing a career in the agency business?
doc_929478672.ppt
BMS Sem-V notes. (Special Studies in Marketing)
advertising agencies
structure & organization
what agencies do. and how they’re organized to do it.
7 primary services:
? ? ? ? ? ? ? complete a marketing analysis develop an advertising plan prepare a creative strategy create advertising executions develop and implement a media plan handle billing and payments integrate other marketing communications
4 functions of full-service agencies
? account management ? creative ? media planning and placement ? research
agency organization chart
Board o f Direct ors [Cha irm an/CEO] Pre sident [COO]
Other Mark e ting Com munica tions Services [PR, e tc. ]
St rate gy Review Bo ard [Mana gme nt Com mitt ee]
Off ice Manag eme nt [Perso nnel, Acco unting, Lega l, et c. ]
Acco unt Mg mt . Direct or
Crea tive Exec CD
Rese arch Direct or
Media Dept. Direct or
Manage ment Supe rvisor
Asso ciate Crea tive Direct or
Pro ject Manage rs
Asso ciate Media Direct or
Acco unt Executive
Crea tive Group:
Rese arch Assist ants
Media Supe rvisor
Asst . Acco unt Executive
Copy Spvr. & Copywrit ers
Art Supervisor & Art Directors
Media Planner
Media Buyer
Broa dcas t Pro duct ion
Print Pro duct ion
Analyst s
Tra ffic
account management
? liaison between agency and client ? responsible for understanding...
? the client’s business ? the client’s marketing needs ? strategy development
? representing client point of view within the agency
account management
Account Mgmt. Director Management. Supervisor Account Supervisor Account Executive Asst. Account Executive Account Coordinator
Traffic
? account management director ? management supervisor ? account supervisors ? account executives ? assistant account execs ? account coordinators ? traffic
creative department
? responsibility
? the creative department is responsible for creating and producing the print and broadcast advertising
? strategy is key
? good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed
creative department
Strategy Review Board Executive Creative Director (ECD) Creative Director (CD) Associate Creative Director (ACD) Creative Group: Copy Spvr. & Copywriters Broadcast Production Traffic Art Supervisor & Art Directors Print Production
? executive & group creative directors ? creative director ? associate creative director ? copywriters ? art directors ? broadcast producers ? print production managers ? traffic coordinators
media department
? The media department has two main functions - planning and buying. ? The planning group handles more strategic marketing and media issues. ? The buying group handles media negotiations and implementation.
media department
Media Director Associate Media Director Media Supervisor Media Planner Media Buyer
? media director ? associate media directors ? media supervisors ? media planners
Media Plan
? media buyers
? media analysts
Analysts
big changes in the media department
? mega-agency media departments have now become profit centers ? agencies have set up their media departments as free-standing units ? many large clients now look at media as a separate service
research department
? interpret market environment
? gather and analyze research data.
? primary and secondary techniques
? determine consumer needs/perceptions ? understand problems
? advise how ads can meet
strategic goals
? help find solutions
Research Report
research department
Research Director Project Managers Research Assistants Outside Research Suppliers
? research director ? research project managers ? research assistants
? outside research specialists
Research Report
auxiliary agency functions
? account planning ? strategy/creative review board ? office management
? human resources ? legal services ? accounting ? recruitment
3 ways agencies make money
? commissions
? usually 15% of gross costs
? fees
? usually based on negotiated hourly rate
? incentives
? still relatively new and problematic ? usually based on performance goals
agency commissions
? media commission system
? 15% media commission
? adjustable commission rates
? negotiate to match client budget ? sliding scale
? markups-production & service
? add a percentage markup to costs ? 17.65% of net = 15% of gross
4 types of fee systems
? fixed fee (retainer) ? cost-plus fee ? performance fee ? hybrid fee & commission
incentives
? in theory, a good way to work ? get paid based on how well you do, not how much you bill ? in practice, difficult to implement ? if client makes final decision (instead of agency), how can agency be responsible for final results? ? results based on many factors, such as competitive efforts, not just advertising
new business
? three primary sources “The critical objectivebusiness ? build existing client’s and role ?of any ad agency is gaining add and sell new IMC services ? solicitnew business.” new accounts
? two ongoing problems
? “spec” work ? teams “walking” with accounts
things to think about:
? why might you be interested in going into the agency business? ? what might keep you from choosing a career in the agency business?
doc_929478672.ppt