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advertising agencies

structure & organization what agencies do. and how they¶re organized to do it.

7 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 .

4 functions of full-service agencies full account management  creative  media planning and placement  research .

] Account Mgmt. Accounting. Director Management Supervisor Associate Creative Director Project Managers Associate Media Director Account Executive Creative Group: Research Assistants Media Supervisor Asst. etc. Director Creative Exec CD Research Director Media Dept. etc. Account Executive Copy Spvr.] Strategy Review Board [Managment Committee] Office Management [Personnel. & Copywriters Art Supervisor & Art Directors Media Planner Media Buyer Broadcast Production Print Production Analysts Traffic . organization chart Board of Directors [Chairman/CEO] President [COO] Other Marketing Communications Services [PR.

.account management  liaison between agency and client  responsible for understanding.  the client¶s business  the client¶s marketing needs  strategy development  representing client point of view within the agency ..

Director Management.account management Account Mgmt. Account Executive Account Coordinator Traffic  account management director  management supervisor  account supervisors  account executives  assistant account execs  account coordinators  traffic . Supervisor Account Supervisor Account Executive Asst.

creative department  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 .

creative department Strategy Review Board Executive Creative Director (ECD) Creative Director (CD) Associate Creative Director (ACD) Creative Group: Copy Spvr. & Copywriters Broadcast Production Art Supervisor & Art Directors Print Production Traffic  executive & group creative directors  creative director  associate creative director  copywriters  art directors  broadcast producers  print production managers  traffic coordinators .

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

media department Media Director  media director  associate media directors  media supervisors  media planners  media buyers  media analysts Media Plan Associate Media Director Media Supervisor Media Planner Media Buyer Analysts .

big changes in the media department  mega-agency media departments megahave now become profit centers  agencies have set up their media departments as free-standing units free many large clients now look at media as a separate service .

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 .

research department Research Director  research director  research project managers  research assistants  outside research specialists Research Report Project Managers Research Assistants Outside Research Suppliers .

auxiliary agency functions  account planning  strategy/creative review board  office management  human resources  legal services  accounting  recruitment .

3 ways agencies make money  commissions  usually 15% of gross costs  fees  usually based on negotiated hourly rate  incentives  still relatively new and problematic  usually based on performance goals .

65% of net = 15% of gross .agency commissions  media commission system  15% media commission  adjustable commission rates  negotiate to match client budget  sliding scale  markups-production & service markups add a percentage markup to costs  17.

4 types of fee systems  fixed fee (retainer)  cost-plus fee cost performance fee  hybrid fee & commission .

how can agency be responsible for final results?  results based on many factors. not how much you bill  in practice. not just advertising . such as competitive efforts. difficult to implement  if client makes final decision (instead of agency).incentives  in theory. a good way to work  get paid based on how well you do.

´ new accounts  two ongoing problems  ³spec´ work  teams ³walking´ with accounts .new business  three primary sources ³The critical objectivebusiness  build existing client¶s and role of any ad agency is gaining add and sell new IMC services  solicitnew business.

things to think about:  why might you be interested in going into the agency business?  what might keep you from choosing a career in the agency business? .