9/2/03adv Business Development in Agencies

9/2/03adv Organization for BD Depends on size Larger agencies may have separate departments Headed by a VP / Director Department consists of servicing and planning / research staff. Creative / media support requested on need basis BD reports to Agency President / CEO

9/2/03adv Functions Create a new business plan Spot new business opportunities Present the agency in the most favorable light Make speculative pitches Discuss & negotiate contracts and rate cards Finalize contracts & turn over account to the servicing team

9/2/03adv Create a new business plan Set targets –Quantity of new business –Type of new business –Business that is off limits (conflict of interest, non-competitive issues) –Culture matching –Minimum acceptable account size –Costs of BD

9/2/03adv Spot NB opportunities Keep your nose to the ground –New products, companies –Accounts likely to move Network with businesses and even competition Create “brand champions” in industry (third party recommendations) Research – company / brand performance, sales & profits, advertising problems

9/2/03adv Spot NB opportunities (cont.) New ideas – apply new ideas to brands you want to pitch for Initial discussions with potential client always carried out discreetly. Note: BD responsible only for new accounts. More business from existing accounts – account service team.

9/2/03adv Present agency credentials What sets you apart from other agencies –Reach –One-stop-shop vs. deeply specialized –Business focus (b2b, b2c, retail, infotech, hitech, etc.) –Values and Beliefs –Track record –Quality of staff Hard data (e.g. cap. billings, size, staff, past campaigns and results) Soft data (core competencies, values and culture)

9/2/03adv Present agency credentials What strengths will you bring to the table Policy on bringing creative & media talent to presentations Customize presentations (canned presentations are less effective) Initial presentations do not address client’s advertising problem Based on agency credentials, client may give a “go ahead”

9/2/03adv Speculative pitches Policy about spec. pitches (make/don’t make, free/at cost, etc.) New ideas for old brands –Often done without a complete client brief Pitches for new products always preceded by a client brief Comprehensiveness of the pitch (include only strategy or plus creative or plus media, etc.) Always identify and present the account team

9/2/03adv Speculative pitches Only agency vs. compete with several If past agency-client relationships have been a problem, client may open the account for review If you compete with several, clients try to assure a level playing field. Same client brief shared with all competing agencies Your effort directly proportional to how much you want the client.

9/2/03adv Contracts and rate cards Used to be standard – not any more Open to negotiations Important clauses –Length of contract and termination clauses –Ownership of advertising materials like raw stock, four color positives, photographs, etc. –Agency compensation –Creative fees, consulting fees, material costs

9/2/03adv Contract & Rate Cards (cont.) Important clauses (cont.) –Agency & client responsibilities and scope of work –Privacy, conflict-of-interest clauses –Minimum billing stipulation (if any) and ‘make- good’ clauses if minimum billing is not achieved –Penalties / liquidated damages for underachievement of objectives –Bonus for overachievement for objectives.

9/2/03adv Finalize & turn over to servicing No premature announcements Open champagne bottles only after client signs on the dotted line Especially important in case of accounts moving from one agency to another The work is only just beginning