edition 73 may 22, 2007
 

the lowdown on pitching

    

Pitching or reviewing your agency is an essential part of the marketing business. For most marketers this is a process that may be encountered perhaps once every few years.

In the coming weeks in P3 e-news we will look at the pitching process. What are the costs for advertisers, what are the costs for agencies and when is the right time to pitch?

- the cost of pitching 
- the preferred pitch specialists
- P3Digital enters the market
- advertising & marketing summit 07

the cost of pitching for advertisers

There are always times when an advertiser should go to the market to select a new agency. But this is not a process that should be entered into lightly. Going out to the market place comes with several risks and costs to both advertisers and their agencies. Advertiser costs include:

internal human resources

Many advertisers are unaware that the process of selecting a new agency by pitch is time and resource consuming. Typically for a review of eight agencies to a short list of three for a strategic or creative presentation can require 600 - 800 hours of internal head hours depending on the size of the number of agencies participating, the size of the account, the scope of the review and the levels of approval.

internal disruption

This process also can cause significant disruption to the on-going marketing process within the organisation. Not only can resources within the department be distracted by the process, if the incumbent is participating in the review than they will also have their resources stretched during this time.

risk of exposure to the market

To be able to judge the core competencies of the participating agencies, many advertisers ask the agencies to undertake a strategic or creative project. To make this project relevant requires providing the agencies with sensitive information regarding the business and marketing plans. While we do not suggest this would be misused by any professional agency, any exposure of this information comes with risk.

induction and orientation

If the incumbent is unsuccessful there is the disruption to the process during the hand-over period, with internal resources required to manage the orientation and induction of the new agency into the client marketing process.

knowledge loss

An often-overlooked cost of changing agencies is the loss of brand and business knowledge that resides in the incumbent agency. With a high turnover and poor knowledge management within many organisations, the incumbent agency can be the repository of the brand knowledge. Depending on the history and relationship, it can take from as little as three months, and up to a year for the new agency to become as familiar with the nuances of the business, even if they have had previous experience.

To find out how you can minimise these costs to your business when undertaking a pitch, contact P3 in Melbourne 03 9682 6800 or Sydney 02 9279 4997 or by email on people@p3.com.au

the preferred pitch specialists

 


P3 has been managing an increasing number of agency and provider selection reviews. Over the past 12 months we have run pitches for AGL, Telstra, Ikea, Colorado Group, Westpac, Diageo, St George, Hutchison, Melbourne University and most recently Westfield.

To find out more about the agency review process, contact P3 in Melbourne 03 9682 6800 or Sydney 02 9279 4997 or by email on people@p3.com.au

 

P3Digital enters the mix

 

In direct response to the changing digital platform and client demands, P3 have launched P3Digital.

Specialised services range from digital strategy assessment to SEM training, supplier selection and category benchmarking. To know more about your current digital marketing spend, contact Russell Easther on 03 9682 6800 or at russell@p3.com.au

 

6th australian advertising & marketing summit 2007

 
 

The 6th Australian Advertising & Marketing Summit is on June 19/20 at Dockside, Sydney.

See Darren Woolley speak about Accessing the 'New' Consumer - Changing Communication Models -
ï what drives the 'new consumer'?
ï patterns of consumption
ï appropriate channels of consumption
ï what does tomorrow's consumer want?

For a booking form contact ACEvents at www.acevents.com.au/ad2007

P3 - helping people achieve commercial purpose through creative process

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