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8/14/2019 Ad Agencies Types
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TYPES of ADTYPES of ADAGENCIESAGENCIES
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Artists
Ad Agencies Have Skilled Specialists
Writers Researchers
Photographers Media Analysts Other Skills
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Creatingadvertising
Planning
advertising
Producingadvertising
Performingresearch
Selecting media
Salespromotions
Strategic marketplanning
Directmarketing
Interactivecapabilities
Planning
advertising
Creatingadvertising
Producingadvertising
Performingresearch
Selecting media
Strategic marketplanning
Salespromotions
Directmarketing
Package design
Package design
Full-Services Agencies
Full range of marketing
communicationand promotion
services
Nonadvertisingservices
Public relationsand publicity
Interactivecapabilities
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Typical Full-Service Agency Organization
WritersArt directors
TVproduction
Traffic
production
VP creativeservices
Account
executive
Accountsupervision
VP accountservices
Media Research Salespromotion
VP marketingservices
Personnel
Accounting
FinanceOffice
management
VP management
and finance
President
Board of directors
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4 functions of full-serviceagencies
• account management
• creative• media planning and placement
• research
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Services Provided by Agencies
Agency Services
The link betweenagency and client
Managed by theaccount executive
Researchdepartment
May includeaccount planners
Media departmentto obtain mediaspace and time
Creation andexecution of ads
Copywriters,artists, other specialists
MarketingServices
AccountService
CreativeServices
MarketingServices
AccountService
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• 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
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The Role of Creative Boutiques
CreativeBoutiques
Provide only creative services
Full-service agencies maysubcontract with creative
boutiques
Provide only creative services
Full-service agencies maysubcontract with creative
boutiques
Ability to turn out inventivecreative work quickly
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• responsibility– the creativ
• strategy is k– good creativ
Creative Department
the creative departmentthe creative department is responsibleis responsible
for creating and producing the print andfor creating and producing the print and
broadcast advertisingbroadcast advertising
•strategy is keystrategy is key
good creative workgood creative work is always guidedis always guidedby aby a creative strategycreative strategy that sets forththat sets forth
goals to be accomplishedgoals to be accomplished andand keykey
message pointsmessage points to be relayedto be relayed
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Specialize in buying media,especially broadcast time
Agencies and clients developmedia strategy
Agencies and clients developmedia strategy
Specialize in buying media,especially broadcast time
Media Buying Can Be Specialized
MediaSpecialist
Companies
Media buying organizationsimplement the strategy and
buy time and space
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media department
• The media department has two mainfunctions - planning and buying.
TheThe planning group planning group handles more strategic marketing and handles more strategic marketing and
media issues.media issues.
TheThe buying groupbuying group handles media negotiations and handles media negotiations and
implementation.implementation.
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• media director
• associate media directors• media supervisors
• media planners• media buyers
• media analysts
Analysts
Media
Planner
Media
Buyer
Media
Supervisor
Associate
MediaDirector
Media
Director
MediaMediaPlanPlan
media department
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• mega-agency media departments
have now become profit centers • agencies have set up their mediadepartments as free-standing units
• many large clients now look atmedia as a separate service
big changes in the
media department
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Research Department
• interpret market environment – gather and analyze research data.
– primary and secondary techniques • determine consumer needs/perceptions
– understand problems
• advise how ads can meetstrategic goals
– help find solutions
ResearchResearchReportReport
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Research Department
• interpret market environment – gather and analyze research data.
– primary and secondary techniques • determine consumer needs/perceptions
– understand problems
• advise how ads can meetstrategic goals
– help find solutions
ResearchResearchReportReport
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• research director
• research project managers
• research assistants
• outside researchspecialists
Research Department
ResearchSuppliers
Outside
Research
Assistants
ProjectManagers
Research
Director
ResearchResearchReportReport
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auxiliary agency functions
• account planning
• strategy/creative review board• office management– human resources
– legal services– accounting
– recruitment
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Choosing an Advertising
Agency• In selecting an ad agency, the internationalmarketer has several options:1. Work with the agency that handles the
advertising in the firm’s home market.2. Pick a purely local agency in the foreignmarket.
3. Choose the local office of a large
international agency.4. Select an international network of adagencies that spans the globe.
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Choosing an Advertising
Agency (contd.)• When screening ad agencies, the followingset of criteria can be used:– Market coverage
– Quality of coverage– Expertise with developing a central
international campaign
– Creative reputation– Scope and quality of support services
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Choosing an Advertising
Agency (contd.)– Desirable image (“global” versus “local”)
– Size of the agency
– Conflicting accounts
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Choosing an Advertising
Agency• The Agency must be Well Known.
• Agency must have creativity in pursuit.
• Agency must have good antecedents withrich work experience.
• The Accounts Executive in the ad agencymust have the ability to understand the
Client’s problem.
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Choosing an Advertising
Agency• Before soliciting ant agency, theadvertiser should ascertain the
number of clients gained and lost byproper scrutiny.
• There should be a compatibility
between the sponsor and the adagency.
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Choosing an Advertising
Agency• The most important aspect considered forselection is ability of the ad agency to make asuccessful presentation.
• Lastly, ad agency are selected based on factorssuch as whether they have1.ability to conduct MR2. whether they have a consumer orienteddependable approach
3. whether they have a media understanding.
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Acquiring Clients by
Agency• Referrals
• Solicitations
• Presentation
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Losing the Client by
Agency• The Client is unhappy with the Agency’sperformance.
• Clash between Agency and Client.
• If the demand made by client is notfeasible.
• Lack of communication between the agencyand the client.
• Client’s change in marketing strategy, leadsto change over or abandoning the Agency.
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Coordinating International
Advertising• Global or pan-regional advertisingapproaches require a great deal ofcoordination. The following mechanisms can
help:– Monetary Incentives (cooperative
advertising)– Advertising Manuals (brand book)– Lead-Country Concept– Global or Pan-Regional Meetings: Six
guidelines to implement a global or pan-
regional advertising approach include:
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Coordinating International
Advertising (contd.)• 1). Top management must bededicated to going global.
• (2). Use a third party (e.g., the ad
agency) to help sell key managers thebenefits of a global advertisingapproach.
• (3). A global brief based on cross-border consumer research can helppersuade managers to think in termsof global consumers.
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Coordinating International
Advertising (contd.)• (4). Find product champions and givethem a charter for the success of theglobal marketing program.
• (5). Convince local staff that theyhave an opportunity in developing aglobal campaign.
• (6). Get local managers on the globalmarketing team -- have them do the job themselves.