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Advertising Agencies: Module - VI

The document discusses advertising agencies and their role. It outlines 7 primary services agencies provide including marketing analysis, advertising plans, creative strategies, executions, media plans, billing, and integrating communications. Agencies allow clients to benefit from professional expertise across areas like creative, media, and research. The document also describes different types of agencies and their structures, as well as common compensation models and factors that influence an agency gaining and losing clients.

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Richa Srivastava
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39 views15 pages

Advertising Agencies: Module - VI

The document discusses advertising agencies and their role. It outlines 7 primary services agencies provide including marketing analysis, advertising plans, creative strategies, executions, media plans, billing, and integrating communications. Agencies allow clients to benefit from professional expertise across areas like creative, media, and research. The document also describes different types of agencies and their structures, as well as common compensation models and factors that influence an agency gaining and losing clients.

Uploaded by

Richa Srivastava
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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ASCO

Advertising Agencies

Module – VI

1
ASCO

• An advertising agency:- is an independent organization set up to


render specialized services in advertising in particular and
marketing in general.
Some agencies are-
• Mudra communications Pvt. Ltd,
• LOWE
• Ogilvy and Mather Limited,
• JWT (Hindustan Thompson Associates Pvt. Ltd.),
• FCB-Ulka advertising pvt.Ltd.,
• Rediffusion DY&R Pvt. Ltd

2
7 primary services: ASCO

• 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

3
Reasons for using an outside ASCO

Agency

1. U get highly professional people to work for.


2. Artists /writers /singers/media analysis are normally attached
with
3. Agencies are specialized in certain areas like consumer goods
etc.
4. U can get an overall image of mkt. very easily against
company policies /biases/limitations or we can say it provides
us an insight to the industry. an agency may have personnel
who have worked in some client related industries.

4
Types of Agencies ASCO

1. Full service agency


• Involved in planning/creative /producing/research/media
selection and also in some non advertising services like
– Strategic mkting planning
– Sales promotions
– Sales training
– Trade shows
– Package design
– Public relations programs
– Publicity

5
Typical Full-Service Agency ASCO
Organization

B o a rd o f
D ire c to rs

P r e s id e n t

V P C r e a t iv e V P A c c o u n t V P M a r k e t in g VP M anagem ent
S e rv ic e s S e rv ic e s S e r v ic e s a n d F in a n c e

W r it e r s TV P r in t A c c o u n t M e d i a R e s e a r c h S a le s O ff ic e
A r t D ir e c tPo rros d u c it Po n
r o d u c t i oS nu p e r v is io n P r o m o t io
M na n a g e m e n t

T ra ffic T ra ffic
A ccount P e r s o n nAeclc o u n t iFnin
g ance
E x e c u t iv e

6
2. In-house agencies ASCO

• In-house agencies:- An in-house agency is an ad agency set


up, owned and operated by the advertiser. Exp- Dabur’s

Advantages Disadvantage

Cost saving Less


experience
More control
Less
Increased objectivity
coordination
Less flexible

7
3. Account services ASCO

• Account management is to provide a link b/w client and


agencies

• Normally a very experienced and professional person of


marketing is involved in such type of arrangement.

8
4. Marketing services
ASCO

• Have :
• Research departments
– Who is the target audiences
– Who is the ultimate consumers
– Trends of industries
– Consumers habits etc
– Segment analysis etc.

9
ASCO
5. Creative services

• Responsible for creating and executing ads.


• Copy writers: r the personnel who write headlines/subhead
lines/body copy. May be involved in basic theme or the big
selling idea of the promotional campaigns.
• May have diff. departments
– Art department
• Prepare story board for TV
– Production dept.
– Traffic dept.

10
more types of services
ASCO

• Creative boutiques
– 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
– e.g. Supreme with Shoaib Mansoor
• Media Buying Services
Media buying agencies are independent companies that
specialize in the buying of media, particularly radio and
television

11
ASCO
Agency Compensation
• Commission from media
– 15% from media
• Fixed fee method
• Fee-commission combination
• Cost plus agreement
– Fee basis on the cost of its work
• Pay actual cost+profit margin
• Incentive based
– still relatively new and problematic
– usually based on performance goals

12
Example of the Commission System
ASCO

13
Why Agencies Lose Clients ASCO

 Poor performance
 Poor communication
 Unrealistic demands
 Personality conflicts
 Personnel changes
 Changes in size
 Conflict of interests
 Changes in strategy
 Declining sales
 Payment conflicts
 Policy changes

14
How Agencies Gain Clients ASCO

 Referrals
• Solicitations
– Making calls and following them
• Presentation
– People ask agency to come and present itself.

 Presentations
 Public Relations
 Image and Reputation
15

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