1. Advertising agency

2. ADVERTISING AGENCIES organization of professionals who provide creative business services to clients in planning, preparing and placing advertisements

3. FUNCTIONS OF AD AGENCY
TALENT AND CREATIVE PRODUCTION : This includes formulating plans for creative strategies, copy or script writing, visualization, designing, layout, shooting of films, editing , giving music.

4. Contd..
RESEARCH : This includes the study about the product and the company by the agencies in order to distribute the message to the public and is used as a tool to test the consumer reaction towards the products and services.

5. DISTRIBUTION A MEDIA PLANNING :
Contd..
DISTRIBUTION A MEDIA PLANNING :
In this function, decisions are taken for the type of message you will create for the company and what media will be most helpful in sending this message to the public.

6. Contd…
MONITORING FEEDBACK : By monitoring consumer feedback, a decision on whether to revise the message, the medium, the target audience or all of them can be made.

7. CONTD… Merchandising Public relations Organizing exhibitions and fairs
OTHER SERVICES :
Merchandising
Public relations
Organizing exhibitions and fairs
Preparing all kinds of publicity material
Planning and organizing special events (event management)
Direct marketing

8. Services Provided by Agencies
Agency Services
Account Service
Creative Services
Marketing Services
Account Service
Marketing Services
The link between agency and client
Managed by the Account Executive
Research department may design and execute research programs
Media department may analyze, select and contract media resources
Creation and execution of ads
Copywriters, artists, other specialists
Relation to text This slide relates to material on pp of the text
Summary Overview The slide shows the various services of a full service advertising agency. These agency services consist of:
Account services – this is the link between the agency and its clients. The account executive is the liaison and focal point of the agency-client relationship. They are responsible for understanding the advertiser’s marketing and promotions needs and interpreting them to agency personnel.
Marketing services – includes marketing research and media planning. Marketing research is growing in importance as advertisers realize they need a good understanding of the target audience if they are to effectively communicate. Media departments analyze, select, and contract media sources.
Creative services – is responsible for the creation and execution of advertisements. Copywriters and artists are specialists in this department. Additionally there is a production department that coordinates all phases of production of advertising and other creative work.
Use of slide This slide can be used to discuss the roles of the various departments in a full service ad agency. There are many activities and many personnel involved in the planning, creating and producing of ads. The coordination of their effort is critical to the success of an IMC program.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

9. PRIMARY SERVICES 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

10. creative department strategy is key
responsibility
the creative department is responsible for creating and producing the print and broadcast advertising
strategy is key
good creative work is always guided by a creative strategy that sets forth goals to be accomplished and key message points to be relayed

11. media department
The media department has two main functions - planning and buying.
The planning group handles more strategic marketing and media issues.
The buying group handles media negotiations and implementation.

12. research department interpret market environment
gather and analyze research data.
primary and secondary techniques
determine consumer needs/perceptions
understand problems
advise how ads can meet strategic goals
help find solutions
Research
Report

13. Planning The Best Message
“A I D A” A - Attention I - Interest D - Desire A - Action

14. How Agencies Gain Clients
Referrals
Presentations
Solicitations
Public Relations
Image, Reputation
Relation to text This slide relates to material on pp in the text that discusses how agencies gain new clients.
Summary Overview Competition for accounts in the agency business is intense. For most large agencies, most new business comes from clients who already have an agency but decide to change their relationships. Thus, agencies must constantly search and compete for new clients. Some of the ways they do this are through
Referrals
Solicitations
Presentations
Public relations efforts
Image or reputation
Use of this slide Gaining new business is very important to advertising agencies. This slide can be used to show the various ways an agency can gain new business.

15. Why Agencies Lose Clients
Personnel
changes
Personnel
changes
Changes
in strategy
Changes
in strategy
Poor
performance
Poor
performance
Poor
communications
Poor
communications
Declining
sales
Declining
sales
Unrealistic
demands
Unrealistic
demands
Changes
in size
Changes
in size
Payment
conflicts
Payment
conflicts
Relation to text This slide relates to material on pp of the text which discusses reasons why agencies lose clients.
Summary Overview While many successful client-agency relationships last for years, long-term relationships are becoming less common. The various reasons an agency might lose clients are shown on this slide. Some of these are avoidable while others may be beyond the agency’s control.
Use of this slide This slide can be used to show reasons why an agency can lose its clients. Understanding these problems can help agencies avoid them.
Personality
conflicts
Personality
conflicts
Policy
changes
Conflict of
interests
Conflict of
interests

16. TYPES OF ADVERTISING AGENCIES
In house agency
is owned and operated by its one and only client: the advertiser. Instead of a company outsourcing its advertising to an agency, its ad campaigns are mainly handled by its own in-house agency.

17. Pros & Cons of In-House Agencies
+ Positive
- Negative
Cost
Savings
Cost
Savings
Less
Experience
Less
Experience
The
In-house
Agency
Relation to text This slide relates to the material on pp and Figure 3-5
Summary Overview This slide presents the pros and cons of using an in house agency to organize for and handle a company’s advertising and promotion.
Advantages of this system include:
Cost savings that result since media commissions that would go to an outside agency go to the in- house agency
More control over the advertising function since it is handled within the company rather than by an outside agency
Better coordination of advertising and promotion with the firm’s other marketing activities
Negative aspects of this system include:
Less advertising experience than is available from an outside agency with has a variety of specialists in various areas of advertising
Less objectivity since those working for an in-house agency are part of the company rather than an outside agency
Less flexibility as outside agencies can be changed much more easily whereas changes among in-house agency personnel are slower and more disruptive
Use of this slide The text discusses the pros and cons of the various systems used to organize for advertising and promotion. This slide summarizes the pros and cons of using in-house agencies. Examples of companies that use in-house agencies should be provided such as Calvin Klein and Radio Shack.
More
Control
More
Control
Less
Objectivity
Less
Objectivity
Better
Coordination
Less
Flexibility
Better
Coordination
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

18. TYPES OF ADVERTISING AGENCIES
2. Media Specialist- organizations that specializes in buying media time and space and offer media strategy consulting to advertising agency.
- Buys media in large quantities, they often acquire media time at a lesser cost.

19. TYPES OF ADVERTISING AGENCIES
3. Full Service- typically includes an array of advertising to meet all promotional needs.

20. TYPES OF ADVERTISING AGENCIES
4. Creative boutiques- typically emphasizes creative concept development, copywriting and artistic services to clients.

21. TYPES OF ADVERTISING AGENCIES
5. Interactive agencies – Help advertisers prepare communications for new media such as internet, interactive kiosk, CD-rom, interactive television

22. TYPES OF ADVERTISING AGENCIES
6. Direct marketing agency
- These firms can design direct marketing campaigns either through mail or via telemarketing.

23. TYPES OF ADVERTISING AGENCIES
7. E-commerce agency- handle a variety of planning and execution activities related to promotion using electronic commerce

24. TYPES OF ADVERTISING AGENCIES
8. Creative and Production services- develop the message that will be delivered through sales promotion, event sponsorship and public relations.