1. The Agency Business

2. Functions of an agency
Client servicing
Media
Creative
P&A
Accounts

3. The client brief
This is normally the first business meeting between the client and agency after the agency has signed on. Most likely the top brass of the agency and the marketing department would be present to introduce the operating people who would transact day-to-day business

4. Client briefing What exactly is the agency being asked to do?
What information does the agency need?
What questions are the agency likely to ask?
In the briefing session, even the creative and media people may be present so that they get first hand impressions of the problems encountering the company.

5. ‘Pitching’ for an account
Sometimes agencies may solicit for an account and make a pitching brief to the client organization hoping to get the account. This is speculative.

6. The agency is a people’s business
For an agency the assets are its people – their calibre, expertise, knowledge and experience
It is for this reason that some people become so well known that they are ‘brands’ in their own right
There is high mobility of people within the industry, especially for good people

7. Change of Agency
Agency changes are normally made because of some dissatisfaction. But very often it is an excuse to disguise shortcomings within the client’s organization.

8. When does change happen?
Whenever there is a change of guard at the highest level
Changes in ownership/mergers/acquisitions
Change in client servicing needs

9. Changing an agency is costly
Time
Monetary terms
Momentum is lost

10. Agency selection is normally a top management decision

11. Criteria for selection
No. of people assigned to the account
Quality of people assigned to the account
Creative abilities ( Past work of the agency)
What kind of accounts are presently being handled by the agency
Culture/style fit
Ability to deliver and adhere to deadlines
Reputation for integrity
Ability to defend and justify recommendations
Degree of understanding of the client’s business
Market research and media buying abilities

12. Normally client would not take up an agency if it is dealing with a competitor brand
Similarly agencies do not sign up with competitors if they are handling brands in the same product category

13. Building partnership and trust
It is not simply a principal-supplier relationship
The agency by virtue of its experience in different markets, different product categories, is expected to give a different creative perspective and insight on the company’s problems.
It is not expected to agree with the company all the time.
A client who does not expect and reward an agency for fresh thinking is usually expected to get mediocre advertising

14. If a campaign is working the client should stick to it
If a campaign is working the client should stick to it. Too often the campaign gets changed not because it is stale but the company people get bored with it.
It must be remembered that the consumer is just about beginning to notice it then

15. Building a great agency-client relationship
Inculcate a spirit of friendship
Be wary of change for change’s sake
Ensure the agency is making a fair profit on your account
Make the agency totally absorbed in the company’s product, people and culture
Create an environment for experimentation and be prepared to pay for failure

16. Cont’d Treat the agency people well
Agree on clearly defined objectives
Keep approvals simple and disapprovals kind
Give the responsibility and authority to the agency to produce good advertising
Give the agency a formal evaluation annually

17. What does an agency look for when taking up a new account?
Product one would be proud to advertise
Not take up an account where one cannot better the efforts of the previous agency
Steer clear of products whose sales have been consistently falling – either due to product weakness or inconsistent management
Account where the agency can make a profit
If profits are unlikely, is there mileage to be derived elsewhere?

18. Cont’d Agency-client fit
Avoid clients where there is low belief in advertising
Not accept new products unless attached with a national product
Always deal with one decision maker, not committees
Do not have conditional accounts. It never works.

19. Agency Compensation
The key issue is that compensation should be commensurate with workload.
Commission
Fee
Payment by Results (PBR)