Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
69 views16 pages

By Emran Mohammad (Emd) MKT 337 (Sections 3)

This document discusses specialized marketing services provided by agencies, including promotional planning, creative research, fulfillment, and public relations. It also covers agency compensation models such as commissions from media placements, fee-based systems, and percentage charges. The document concludes by examining how agencies can evaluate each other through financial and qualitative audits, and factors that can cause agencies to gain or lose clients like performance, communication, conflicts, and strategy disagreements.

Uploaded by

Asif Rafi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
69 views16 pages

By Emran Mohammad (Emd) MKT 337 (Sections 3)

This document discusses specialized marketing services provided by agencies, including promotional planning, creative research, fulfillment, and public relations. It also covers agency compensation models such as commissions from media placements, fee-based systems, and percentage charges. The document concludes by examining how agencies can evaluate each other through financial and qualitative audits, and factors that can cause agencies to gain or lose clients like performance, communication, conflicts, and strategy disagreements.

Uploaded by

Asif Rafi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 16

Chapter 3

Organizing for advertising and promotion:


The role of ad agencies and other
marketing communication organizations
(part 2)

By
Emran Mohammad (Emd)
Mkt 337 (sections 3)
Specialized service
Promotional planning

Creative research

Tie-in coordination

Fulfillment

Premium design and manufacturing

Catalog production

Contest/sweepstakes management
Specialized service

Strategy Public Special


development affairs events

Generating News releases, Managing


publicity communication crisis

Coordination
Lobbying Research w/promotional
areas
Specialized service

Direct-Marketing Agency Services

Database
Media services
management

Direct mail Creative capabilities

Research Production
Specialized service
 Sales Promotion Agencies

 Helps the advertiser in coordinating the sales promotion activities like


 Contests
 Sweepstakes
 Refund/Rebate
 Premiums
 Incentive offers
 Sampling programs
 Often works with client’s advertising agencies.
Specialized service
 Public Relation firms

 Develops and implements to manage the organization’s


publicity, image and affairs with the consumers and other
relevant publics including employees, supplier, stockholders
etc.
Specialized service

Interactive Media Creation


Websites
Banner ads
Search engine optimization
Mobile marketing
Social media campaigns
Digital media
Agency compensation

Commissions from media

Fee, cost, and incentive-based systems

Percentage charges
Commissions from media

 Usually 15%
 Foroutdoor advertising, the commission is
162/3 %
 There
is a 2% cash discount upon early
payment
 Negotiated commission average from 8-10%
Fee, Cost and Incentive based system

 Fee Arrangement: There are 2 basic types of


fee arrangement
 Fixed fee method: basic monthly fee
 Fee commission combination: media
commissions received by the agency are
credited against the fee.
 Ifthe commissions are less than the agreed
on fee the client must make up the difference
Fee, Cost and Incentive based system

 Cost-Plus agreement: based on cost of work + agreed on


profit margin

 Incentive based compensation:


 Value based: If results are more than the agreed upon matrix

 Percentage charges: Adding a markup percentage charges


to various services the agency purchase from outside
providers.
Evaluating agencies

 Financial audit: Focuses on how the Financial Audit


agency conducts its business,
Verify costs, expenses
 to verify costs & expenses,
 the number of personnel hours Personnel hours billed
charged to an account
Payments to media
 payment to media and outside
suppliers Payments to suppliers
Evaluating agencies

 Qualitative audit focuses on: Qualitative Audit

Planning
 Agency’s effort in planning, developing
and implementing the client’s advertising Program development
programs and considers the results
achieved. Implementation

Results achieved
Why agencies lose clients
 Poor performance/service
 Poor communication
 Unrealistic demands by clients
 Personality conflicts
 Personnel changes
 Change in size of client & agency
 Conflicts of interest
 Declining sales
 Conflict compensation philosophies
 Changes in the policies
 Disagreement over marketing and/or creative strategy
 Lack of integrated marketing capabilities
How agencies gain clients

 Referrals
 Solicitation
 Presentation
 Public relation (Pro Bono)
 Image and reputation (Effe awards)
Thank you

You might also like