Ad Agency PPTs

8/18/2019 Ad Agency PPTs

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ADVERTISING AGENCY


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INRODUCTION It is a unique type of business

organisation speciaising in t!e

creati"e ine of a#"ertising pro"i#ingcounse reati"e to t!e a#"ertisingan# aie# operations of its cients

an# actuay preparing$ buying spacean# ti%e for pacing a arge part oft!e a#"ertising of its cients&


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DE'INITION Accor#ing to A%erican A#"ertising

Agencies Association (A&A&A&A) an

*A#"ertising Agency is+

An in#epen#ent business organisation Co%pose# of creati"e an# business peope

,!o #e"eop$ prepare an# pace a#"ertisingon a#"ertising %e#ia

'or seers see-ing to .n# custo%ers fort!eir goo#s an# ser"ices&/


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OUTSTANDING 'EATURES It is a In#epen#ent Organisation&

It is Co%pose# of Creati"e an#0usiness 1eope&

It De"eops$ 1repare an# 1acesA#"ertising&

It ,or-s for Seers&


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E2E3ENTS O' AGENCY

SERVICES T!e A&A&A&A !as #e.ne# agency ser"ices

as$ *it consists of interpreting to t!e pubic

or t!at part of it 4!ic! is #esire# to reac!$t!e a#"ertising of a pro#uct or ser"ice&/

T!is interpretation is base# on foo4ingse"en points+

A stu#y of cient5s pro#uct or ser"ices in or#erto #eter%ine t!e a#"antages an##isa#"antages in!erent in t!e pro#uct itsefan# its reation to co%petition&


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E2E3ENTS O' AGENCY

SERVICES An anaysis of present an# potentia

%ar-et for 4!ic! t!e pro#uct or ser"ice is

a#apte# to& A -no4e#ge of t!e factors of #istribution

an# saes an# t!eir %et!o#s of operation

A -no4e#ge of a a"aiabe %e#ia an#

%eans 4!ic! can pro.taby be use# tocarry t!e interpretation of t!e pro#uct orser"ice to consu%ers&


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E2E3ENTS O' AGENCY

SERVICES 'or%uation of a #e.nite pan an#

presentation of t!e pan to t!e cient&

E6ecution of t!is pan& Cooperation 4it! t!e cients5 saes

4or- to insure t!e greatest e7ectfro% a#"ertising&


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SERVICES RENDERED 0Y

AGENCYBasic Services:81anning8Copy 4riting

82ayout83e#ia seection

Research Services:83ar-et researc!8Consu%er researc!8Copy researc!83e#ia researc!

Trade Promotional Services:

8,!oesae pro%otion8Deaer pro%otion80oo-ets$ pa%p!ets$ broa#9si#es8Cataogues$ cataogue s!eets$Speciation s!eets

8E6!ibits

Sales Training Services:81anning saes %eetings8Saes%an5s %anuas an#portfoios

8Visua ai#s

Publicity and Public Relation Servic8Ne4 pro#uct pubicity8Ne4 stories8Co%pany i%age bui#ing8Consu%er reations8E%poyer e%poyee reations


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SERVICES RENDERED 0Y

AGENCYProduct Services:8Ne4 pro#uct #e"eop%ent81ro#uct #esign

8Creation of bran# na%es8Creation of tra#e %ar-s8Co%pete pac-aging #esign

Merchandising Services:8Dispays81ac-age inserts80anners$ strea%ers8Ot!er points of purc!ase %ateria

Direct Mail Services:82etters$ fo#ers$ boo-ets80roc!ures8Sa%ping8Couponing

Other Services:

8Contests8Caen#ars81ricing81re%iu%s8Instruction 0oo-ets8Annua reports


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'UNCTIONS O' ADVERTISING

AGENCIES 'unctions of t!e agency can be #i"i#e#

into t4o as it !as to 4or- bot! for t!e

cient an# as 4e as for t!e %e#iao4ner& T!us$

'unctions of t!e Agency

'unctions for t!e Cients 'unctions for t!e 3e#ia O4ners


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'UNCTIONS 'OR T:E

C2IENT Repaces t!e A#"ertising

Depart%ent&

1ro"i#es E6pert Vie4 1oint&

0rings in Econo%y an# E6ceence&

S!ares its Ric! E6perience&


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'UNCTIONS 'OR T:E 3EDIA

O,NERS Assures Ris- 'ree 0usiness&

Ta-es A4ay t!e Saes ;ob&

Un#erta-es t!e A#"ertisingSc!e#uing&

Sas!es Do4n t!e 1ro#uction Cost&


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Eenne#y Ni-e

T0,A C!iat?Day Appe

2eo 0urnett ,or#4i#e Inc& 3c

Dona#s

3c Cann9 Eric-son 3icrosoft


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Organization Structure

• T!e acti"ities 4it!in an a# agencyare #i"i#e# into @ broa# groups+

& Account %anage%entB& T!e creati"e #epart%ent

& 3e#ia buying

@& Researc!

• Recenty a##e#+ pubic reations$

#irect %ar-eting$ an# pro%otiona


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Structure of an advertisingagency


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TY1ES O' AD AGENCY

IN :OUSE AGENCY

'U229SERVICES AGENCY

S1ECIA29SERVICES AGENCY

CREATIVE 0OUTIUES

S,EET S:O1S

2a carte A# Agency


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SE2ECTION O' AN ADAGENCY

2ocation

Sie

Agency 4or-ing forco%petitors

I%age of agency

Ser"ices o7ere# by A#

Agency

Rates c!arge#

Creati"e s-is F Ne4i#eas

1ast recor# of Agency

'actors to be consi#ere# in seecting an A#Agency+9


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uaity F Caiber of Sta7

'inanciay Soun# Agency E6perience

So A#9Agency s!ou# not be seecte# !urrie#y& T!e

a#"ertiser s!ou# .rst #e"eop its ;ob #escription$#eci#e its nee#s$ A#9bu#get$ F t!en oo- for a suitabeagency 4!ose taent& I%age$ e6perience F recor#%atc!es cosey 4it! cients #escription$ nee#s F0u#get&


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ORGANIATION O' AD9AGENCY

OnDepart%e

nta basis

OnGroupbasis


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Depart%ent base#organiation structure

Cient 2iaison #epart%ent

Researc! #epart%ent

Copy ,riting Depart%ent

Art Depart%ent

3e#ia Depart%ent

Accounts Depart%ent

Au#io9Visua A# 1ro#uctionDepart%ent

3ar-eting Ser"ice Depart%ent

1ubic Reations Depart%ent

E"auation Depart%ent


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Group 0ase# organiationStructure

1anning of A#"ertising

1reparation of A#"ertise%ent

1ace%ent F E6ecution of

A#"ertise%ent

3ar-eting Ser"ices


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Advertising Agency

General Manager

Board of Directors

3anagerpanning

#epart%ent

3anager%ar-etingser"ices

#epart%ent

3anagerA#9

pace%ente6ecution

#epart%ent

3anagerA#9

preparation#epart%ent

! "lient#s$roductanalysis

%! Mar&etanalysis

'! "om$etitionanalysis

(! Mediaanalysis

! Message

contents%! "o$y )riting'! "o$y

Designing(! "o$y

develo$ing

*! Messagea$$eals+

! Media selection%! Media

scheduling'! Ad e,ecution(! -valuating Ad

e.ectiveness*! "ollecting /

Paying Dues

! Product services

%! Direct mailservices

'! Sales trainingservices

(! Publicity / PublicRelations services

*! Tele0Mar&eting

1! MerchandisingServices


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CO31ENSATION O' AD9AGENCY

CO33ISSION

SYSTE3

'EES SYSTE3

S-R23"-"4ARG-S


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CO33ISSION SYSTE3 It is t!e tra#itiona %et!o# of co%pensating A#9

agencies&

,!en t!e agency !as so# space or ti%e of %e#iato its cient$ t!en %e#ia o4ners pay a co%%issionon t!eir saes to A# agencies&

Usuay $t!is co%%ission is H of t!e a%ount pai#by cient to %e#ia&

T!is co%%ission co"ers t!e e6penses of ser"icesren#ere# by agency to cient F %e#ia&


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Appraisa of co%%issionsyste%

T!is syste% is easy to a#%inister&

'i6e# rate of co%%ission&

It is bene.cia for %e#ia as it procures arge a%ount ofbusiness for %e#ia&

T!is type of co%pensation %et!o# !as pro%ote# non9price co%petition&


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CRITICIS3

A#"ertising agency is a4ays te%pte# to reco%%en# an e6pensi"e%e#ia to #ra4 a !ig!er co%%ission&

'i6e# percentage of co%%ission can not reate e7orts %a#e byagency to re4ar#s earne#&

3e#ia inJation 4ou# increase agency5s re%uneration 4!ic! is notfair&

T!is syste% !as aso resute# in o7erings -ic-9bac-s by A#9agencyto t!e #irectors of big9corporate concerns to procure business F toearn !uge co%%ission fro% %e#ia&


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SERVICE C:ARGES

T!is is t!e secon# type of co%pensation %et!o#&

T!ese ser"ice c!arges are a##e# in t!e for% of a.6e# percentage to t!e cost of %ateria Fser"ices purc!ase# for t!e a#"ertiser&

Nor%ay t!is percentage is cost =H&


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'EES SYSTE3

Agency inco%e is aso #eri"e# fro% feesc!arge# by agency for% its cients&

Types of 'ees9arrange%ents+9

'i6e#9 'ee 3et!o#

Specuati"e 3et!o#


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A11RAISA2 O' 'EESSYSTE3

T!is %et!o# is t!eoreticay %oreappropriate t!an co%%ission syste% as

it is #irecty in-e# to ser"ices pro"i#e#by t!e agent&

It is #iKcut to operate ser"ice c!arges

%et!o# as it in"o"es a ot of cerica4or- to prepare separate cost accountsfor eac! cient&

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Ad Agency PPTs