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.
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
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
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 email@example.com