AdAgenciesAgencyFunctions/ServicesCreativeandProductionMedia-PlanningandBuyingMarketingResearchAccountServicesAdministrativeTypesofAgenciesIn-houseFullServiceCreativeBoutiquesMediaBuyingServicesOtherMarketingSupportOrganizationsdirectmarketing,research,salespromotion,pr,interactiveIn-HouseAgenciesSetup,owned,andoperatedbytheadvertiser

Examples:CalvinKlein,Benetton,RadioShackPros&ConsofIn-HouseAgenciesProsCostsavings

Morecontrol

Increasecoordinationwithotherdepts.andoverallmarketingplanCons

Lessexperience

Lesscreativity

Lessobjectivity

LessflexibilityFull-ServicesAgenciesFullRangeofMarketing,CommunicationandPromotionservicesPlanning,creating,producingadvertisingPerformingresearchSelectingmediaNon-AdvertisingServicesStrategicmarketplanningSalespromotionandsalestrainingProductionoftradeshowmaterialsPackagedesignPublicrelationsandpublicityDeptswithinaFull-ServiceAgencyAccountManagement--Linksagency&clientaccountexecutive(AE)MarketingServicesResearch--Pre-testingcreative/copyMedia--select/contractspaceortimePR,directmarketing,salespromotion,packagedesignCreativeServicesCopywriters,ArtDepartmentProduction,TrafficManagementandFinanceReasonsforUsinganAgencyAcquiringtheservicesofspecialistswithin-depthknowledgeofcurrentadvertingandmarketingtechniquesObtaininganobjectivepointofviewObtainingnegotiatingmusclewiththemediaDisadvantagesofAgenciesSomecontrolislostSmallclientsaresometimesneglectedHighercostandtimeconsumingCreativeBoutiquesProvideonlycreativeservicesOtherfunctionsprovidedbytheinternalclientdepartmentsFull-serviceagenciesmaysubcontractwithcreativeboutiquesMediaBuyingServices:Specializeinbuyingmedia,especiallybroadcasttimeAgenciesandclientsdevelopmediastrategyMediabuyingorganizationsimplementthestrategyandbuytimeandspaceAgencyCompensationCommission(15%to16-2/3%)Media(NBC)billsagency(LeoBurnett)TVcommercial $100,000less15%commission $15,000Total $85,000Agency(Leo)billsclient(Nike) $100,000ProsandConsofCommissionSystemPros:EasytoadministerCompetitionbasedoncreative,not$$Cons:EncourageshighspendingTieseffortstocostofmediaNon-CommissionCompensationSystemsFeeSystem:hourly,monthly,orbythejobMark-ups:expensesincurredplussomeagreeduponcompensation,e.g.percentageofexpensesformediathatdonotofferagencycommissions