chap 4,role of ad agency

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Integrated Marketing Communication(IMC) Prepared by

PROF. RAJESH KUMAR(MBA IMT- Ghaziabad, SIX-SIGMA BLACK BELT CERTIFIED)

Prof. of IMT-CDL(DIMS)IP UNIV

(Ex. HOD-MARKETING,BSD)E:forrajeshkumar@gmail.com

P:9810275444www.marketingandbrandingguru.com

Advertising Agencies

Ad Agency:An ad agency is a service organization that specialize in planning

& executing advertising programme for its client.

“The standard directory of Advertising Agencies”

It is the most comprehensive directory in the world, segmented according to the size of industries. Approx 15,000 US & international agencies listed in it.

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Advertising Agencies

Top ad agencies(World):Lintas, Y & R, Ogilvy & Mather, Grey worldwide

Top ad agencies(India):Mudra Communication, Madison, Leo Burnet,

Satchi & satchi

Role of Ad Agency

The role of an ad agency:An organization hire ad agency because of following reasonService of highly skilled individuals

• Specialize in their respective field• They have good bunch of artist, writer, Media analyst, Researcher• All person have specific knowledge skill & Experience• Specialized in particular domain• They can provide object view point, not related to company

politics & unbiased• Experience in working in diverse set of marketing field.

In-House Agency Works With Outside Agencies to Develop Ads

Types of Ad Agencies

Types of Ad agency:It can be from one man to big organization.

Broadly it is of 4 types

• Full-Services Agencies• Creative Boutiques• Media Buying Services

Full Service Ad Agency

WritersArt directors

TVproduction

Traffic

Printproduction

VP creativeservices

Accountexecutive

Accountsupervision

VP accountservices

Media Research Salespromotion

VP marketingservices

Personnel

Accounting

FinanceOfficemanagement

VP managementand finance

President

Board ofdirectors

Full Service Ad Agency

Account Service :Most important division of Ad agency

• Link between ad agency & Clients• Understand advertiser’s marketing & Promotion needs

&interpret to ad agency• Coordinates agency effort in planning, creating &

producing ads • Present agency recommendations & obtain client

approval

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Full Service Ad Agency

Ideal Person:

• Strong Analytical skill• Strong marketing background• Understanding all phase of marketing

Account Service

Full Service Ad Agency

Marketing Service: This dep't of ad agency play vital role &

understand the target audience of customer. Three different services comes under marketing services

• Research Department• Media Department• Sales Promotion Department

Full Service Ad Agency

Research Department: • Gather, analyze & interpret information for

developing advertising • Design & Conduct MR for effectiveness of

present ad• Data can be obtain by primary as well

secondary

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Full Service Ad Agency

Media Department:• Analyze, selects, & contracts for space or time in media• Responsible for deliver client’s advertisement. • Develop media plan effectively as cost of the ad depends on it• Develop the plan for right target audience • The person should have through knowledge of space, slot, time,

Reach & their rates

Sales & Promotion:Some Ad agency also do sales & promotion activity

Research Department:

Full Service Ad Agency

Creative service:• Create & Execute the advertisement• Determine the basic appeal or theme of ad• Prepare rough initial layout for approval Three different services comes under it.• Writer & Art Directors• TV Production• Print Production

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Full Service Ad Agency

Three different services comes under it.• Writer & Art Directors• TV Production• Print Production

Writer, TV Production

Full Service Ad Agency

Writer & Art DirectorsWriter• Responsible for conceive the ideas for ad• Write headlines, Subheads, & body copy• They also known as copywriterArt Directors:• Responsible for look of the ad• For print ad art director & Graphic designer prepare layout• For TV ad this layout is known as Storyboard(sequence of film in

still form)All members of writers & art directors work under the watchful eyes of

creative director

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Full Service Ad Agency

Art Directors:• Responsible for look of the ad• For print ad art director & Graphic designer

prepare layout• For TV ad this layout is known as

Storyboard(sequence of film in still form)All members of writers & art directors work

under the watchful eyes of creative director

Full Service Ad Agency

Production Dept:• Give the ad into actual shape• Basically this dept is outsourced

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The Role of Creative Boutiques

CreativeBoutiquesCreativeBoutiques Provide Only Creative ServicesProvide Only Creative Services

Full-Service Agencies May Subcontract With Creative BoutiquesFull-Service Agencies May Subcontract With Creative Boutiques

Provide Only Creative ServicesProvide Only Creative Services

Full-Service Agencies May Subcontract With Creative BoutiquesFull-Service Agencies May Subcontract With Creative Boutiques

Other Functions Provided by the Internal Client DepartmentsOther Functions Provided by the Internal Client Departments

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Creative Boutiques

Creative Boutiques:Like: Vyas Gianneti Creative:Client: Aditya Birla Group, Godfrey Philips, BBC

world, ICL, Tata group

Creative Boutiques

Media Specialist Services

Media Specialist Company::• These companies are specialize in buying of

media, particularly radio & television time• They are specialize in analyze & purchase of

advertisement time & space• Receive good discount as they buy space & time

in large amount • Came in the main frame as the viewers have

been increased dramatically.

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.Specialize in Buying Media, Especially Broadcast TimeSpecialize in Buying Media, Especially Broadcast Time

Agencies and Clients Develop Media StrategyAgencies and Clients Develop Media StrategyAgencies and Clients Develop Media StrategyAgencies and Clients Develop Media Strategy

Specialize in Buying Media, Especially Broadcast TimeSpecialize in Buying Media, Especially Broadcast Time

Media Buying Can Be Specialized

Media Buying Services Media Buying Services

Media Buying Organizations Implement the Strategy and Buy Time and SpaceMedia Buying Organizations Implement the Strategy and Buy Time and Space

Agency Compensation

Agency Compensation:Agencies are typically compensated in three ways • Commissions: Usually 15% & 2% in cash• Some type of fee arrangement: Fee Arrangement Cost Plus Agreement Incentive based Compensation• Percentage Charges

Evaluating Agencies

Evaluating Agencies:Basically the relation between client & agencies

are depend on the performance, bt in some case it also long term prospect as well short term.

Like: General Electric:: BBDO worldwide for (80 yrs)Marlboro:: Leo Burnett(50 yrs)McDonald’s::DDB worldwide(37 yrs)

Young & Rubicam has handled Dr Pepper for over 30 years

Why agency loose the client

Reason for loosing Client:• Poor performance or services:• Poor Communication:• Unrealistic demand by the client:• Personality Conflict:• Change in Size:• Conflicts of interest of Clients:• Changing strategy of client: