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Critical Analysis of How to Win (and lose) an Advertising Agency

Summery
Charter Behavioral system is the largest provider of alcoholism and depression treatment service in the USA. It wanted to select an advertising agency for handling a $20 million advertising account. Charter got six ad agencies and selected some criteria to narrow down to two agencies. Charter decided to ask creative pitch and roundtable discussion with five of the agencys media buyer from ICG and Rubin postaer only. The president of ICG came to the presentation which seemed flattering to charter but the president knew the media issue well, so Charter understood that ICG is superior at advertising strategy. Rubin made its presentation with employees who would be servicing the account but their president came for a while to show commitment. Charter thought, Rubin made a mistake to not bringing a buyer. Finally, Charter understood that Rubin is good at branding.

Critical Analysis
Charter behavioral system is the largest provider of alcoholism and depression treatment service. Charters goal was to select an agency to handle a $20 million television advertising account. They got six advertising agencies to choose one finally. There are some steps to choose external advertising agency. And they are:

1. 2. 3. 4. 5. 6. 7.

Set goals Select process and criteria Screen initial list of applicants Request client references Reduce list to two to three viable agencies Request Creative pitch Select agency

Charter used these first six steps to choose an advertising agency. I am going to critically analyze Charters activities throughout these six steps below.

1. Set goals Charters goal was to select an agency to handle a $20 million television advertising account. 2. Select process and criteria Charter selected some criteria to reduce the number of advertising agencies. The criterias were: Size Capabilities Credentials and references Documented experience and past successes

On based on these criteria Charter dropped out four advertising agencies from the list. Tauche Martin: It was dropped for its small size. Charter believed that, the size of the account would have overwhelmed the firm. The size of the agency is important, especially as it compares to the size of the company hiring the agency. If a large firm were to hire a small agency, the small agency may be overwhelmed by the account. 3. Screen initial list of applicants In this step Charter came out with five agency, because Tauche Martin had been dropped for its small size. 4. Request Client references In the step, Charter rejected more two agencies from its list. I.

Bates USA: It was rejected because Batess major client was Korean. A recent leg is the Asian economy caused the leaders of charter to fear that Bates might be forced to close its Atlanta office if it lost its Korean client. Charter checked the background of Bates USA, and checking background starts with finding firm that have dealt with each agency. II. Another agency was dropped based on reference checks. 5. Reduce list to two to three viable agencies In that step only two agencies were remained. 1. Rubin Postaer 2. Carat ICG 6. Request creative pitch When the list has been narrowed to two to three finalist, the companys selection team is ready to ask for a creative pitch. And Charter did exactly what it supposed to do. Charter asked for creative pitch from these two advertising agency. 7. Select agency In the case nothing mentioned about which agency was selected.

I.

Recommendations:
Charters leaders should visit the advertising agencys office as part of evolution process. Because visiting the agencys office provide an opportunity to meet the personnel who might work on the account. Talking with these individuals generates quality information about how the account will be handled. It also give opportunity to ask agency to take in account team a particular individual that, company thinks he/she will be best for the advertising account. And this information can be hummer out by visiting agencys office. Charter should have included conflict of interest in its criteria list. Because an advertising agency is hired for another similar company can be conflict in companys interest. Charter should have also looked for almost similar type of companys advertising agency like, psychotherapy consultant firms advertising agency. Because the agency would have some experience in regarding alcoholism and depression. But the company should operate different industry to avoid conflict.

Charter should have included Other services available in its criteria list. Because many advertising agencies provide useful service along with their main interest which can be beneficial for the company. Charter should ingrate communication and advertising program in internal department. Because, internal organizations members have better sense of the companys mission and massage.

Question and Answer


1. Which agency should charter Behavioral system hire? Justify your answer. Ans: Charter should hire ICG. There are some reasons hiring ICG over Rubin. Reasons to hire ICG ICG is extremely good at developing an advertising strategy Reasons to not hire Rubin Rubin is good for branding. But Charter is already the largest provider of alcoholism and depression treatment service

in the USA. So, It has already gained a space in consumer mind. Thats why Charter doesnt need to do branding. The president of ICG knows extremely well media issue which is needed. Rubin didnt bring any buyer for direct-response media. And which buyers came later with Campe were spoke very often.

2. Should Carat ICG do anything differently the next time company representatives make a presentation? Why or why not? Ans: Yes ICG should do some different thing at the net time company representatives make a presentation. There are some important things that ICG representatives should keep in mind before doing next presentation. ICG should include employees in the final presentation who are the part of the account team. ICG representative should not be quick at presentation.

ICG representatives were very superficial at presentation, so they need to develop their understanding about their work. ICG representatives should spend a great deal of time laying out a total approach. 3. Should Rubin postaer do anything differently the next time company representatives make a presentation? Why or why not? Ans: Yes Rubin should do some different thing at the net time company representatives make a presentation. There are some important things that ICG representatives should keep in mind before doing next presentation. Rubin representatives should bring in at least a buyer for the direct-response media. Rubin representatives should confirm that which buyers they bring, those buyers should speak fluently to express their positive views. They should also try to convince that, their agency is not only good at branding but also extremely well at developing advertising agency. 4. Should fuzzy variables such as trust and confidence be the deciding factor in choosing an advertising agency? Why or why not? Ans: It depends on number of advertising agency in the companys evoked set to evaluate. If company has more agency like 5/6 then emotions and trust or confidence can lead to decision, that are not in the companys best interest. But, when company narrows down to two to three agencies then it makes sense. Because, good chemistry between agency and company is required to work together and trust and confidence is important element to develop good chemistry.