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1、Ad Agencies,Agency Functions/Services,Creative and Production Media-Planning and Buying Marketing Research Account Services Administrative,Types of Agencies,In-house Full Service Creative Boutiques Media Buying Services Other Marketing Support Organizations direct marketing, research, sales promotio
2、n, pr, interactive,In-House Agencies,Set up, owned, and operated by the advertiser Examples: Calvin Klein, Benetton, Radio Shack,Pros & Cons of In-House Agencies,Pros Cost savings More control Increase coordination with other depts. and overall marketing plan,Cons Less experience Less creativity Les
3、s objectivity Less flexibility,Full-Services Agencies,Full Range of Marketing, Communication and Promotion services Planning, creating, producing advertising Performing research Selecting media,Non-Advertising Services Strategic market planning Sales promotion and sales training Production of trade
4、show materials Package design Public relations and publicity,Depts within a Full-Service Agency,Account Management - Links agency & client account executive (AE) Marketing Services Research - Pre-testing creative/copy Media - select/contract space or time PR, direct marketing, sales promotion, packa
5、ge design Creative Services Copywriters, Art Department Production, Traffic Management and Finance,Reasons for Using an Agency,Acquiring the services of specialists with in-depth knowledge of current adverting and marketing techniques Obtaining an objective point of view Obtaining negotiating muscle
6、 with the media,Disadvantages of Agencies,Some control is lost Small clients are sometimes neglected Higher cost and time consuming,Creative Boutiques,Provide only creative services Other functions provided by the internal client departments Full-service agencies may subcontract with creative boutiq
7、ues,Media Buying Services:,Specialize in buying media, especially broadcast time Agencies and clients develop media strategy Media buying organizations implement the strategy and buy time and space,Agency Compensation,Commission (15% to 16-2/3%) Media (NBC) bills agency (Leo Burnett) TV commercial $
8、100,000 less 15% commission $ 15,000 Total $ 85,000 Agency (Leo) bills client (Nike) $100,000,Pros and Cons of Commission System,Pros: Easy to administer Competition based on creative, not $ Cons: Encourages high spending Ties efforts to cost of media,Non-Commission Compensation Systems,Fee System:
9、hourly, monthly, or by the job Mark-ups: expenses incurred plus some agreed upon compensation, e.g. percentage of expenses for media that do not offer agency commissions Pay-for-Result (Incentive-based) : based on sales, market share, judged quality, awareness usually includes some base plus incentive,
