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Belch: Advertising and
Promotion, Sixth Edition
II. Integrated Marketing
Program Situation Analysis
3. Organizing for
Advertising & Promotion
The agency evaluation is often done on a subjective, informal basis, particularly in
smaller companies where ad budgets are low or advertising is not seen as the most critical
factor in the firm’s marketing performance. However some companies have developed
formal, systematic evaluation systems, particularly when budgets are large and
the advertising function receives much emphasis. The top management of these companies
wants to be sure money is being spent efficiently and effectively. As the costs of
advertising and other forms of promotion rises, more companies are adopting formal
procedures for evaluating the performance of their agencies.
One example of a formal agency evaluation system is that used by Whirlpool,
which markets a variety of consumer products. Whirlpool management meets once a
year with the company’s agencies to review their performance. Whirlpool managers
complete an advertising agency performance evaluation, part of which is shown in
Exhibit 3-7. These reports are compiled and reviewed with the agency at each annual
meeting. Whirlpool’s evaluation process covers six areas of performance. The company
and the agency develop an action plan to correct areas of deficiency.
Companies develop evaluation procedures that emphasize different areas. For
example, R. J. Reynolds emphasizes creative development and execution, marketing
counsel and ideas, promotion support, and cost controls, without any mention of sales
figures. Sears focuses on the performance of the agency as a whole in an effort to
establish a partnership between the agency and the client. These and other evaluation
methods are being used more regularly by advertisers. As fiscal controls tighten,
clients will require more accountability from their providers and adopt formal evaluation
procedures.
Exhibit 3-7 Whirlpool’s ad agency performance evaluation
CREATIVE SERVICES
Always Often Occasionally Seldom Never NA
Marks
Scored
4 3 2 1 0
1. Agency produces fresh ideas and original approaches
2. Agency accurately interprets facts, strategies and objectives into
usable advertisements and plans
3. Creative group is knowledgeable about company’s products, markets
and strategies
4. Creative group is concerned with good advertising communications
and develops campaigns and ads that exhibit this concern
5. Creative group produces on time
6. Creative group performs well under pressure
7. Creative group operates in a businesslike manner to control production
costs and other creative charges
8. Agency presentations are well organized with sufficient examples of
proposed executions
9. Creative group participates in major campaign presentations
10. Agency presents ideas and executions not requested but felt to be
good opportunities
11. Agency willingly accepts ideas generated by other locations/agency
offices vs. being over-protective of its own creative product
12. Other areas not mentioned
13. Agency demonstrates commitment to client’s business
14. Agency creative proposals are relevant and properly fulfill creative brief
Value—(marks)
Rating: Excellent 90–100% Total marks scored
Good 80–89%
Average 70–79% Total possible marks
Fair 60–69%
Poor below 60% Score
© The McGraw−Hill
Companies, 2003
ACCOUNT REPRESENTATION & SERVICE
Always Often Occasionally Seldom Never NA
Marks
Scored
4 3 2 1 0
1. Account representatives act with personal initiative
2. Account representatives anticipate needs in advance of direction by
client (ie: are proactive)
3. Account group takes direction well
4. Agency is able to demonstrate results of programs implemented
5. Account representatives function strategically rather than as creative
advisors only
6. Account representatives are knowledgeable about competitive programs
and share this information along with their recommendations in a timely
manner
7. Account representatives respond to client requests in a timely fashion
8. Account group operates in a business-like manner to control costs
9. Agency recommendations are founded on sound reasoning and
supported factually, and appropriately fit within budget constraints
10. Agency is able to advise the client on trends and developments in
technology
11. Account representatives demonstrate a high degree of professionalism
in both written and oral communication
12. Agency presents ideas and executions not requested by felt to be good
opportunities
13. Agency makes reasoned recommendations on allocation of budgets
14. Agency demonstrates commitment to client’s business
15. There is a positive social relationship between client and agency
Value—(marks)
Rating: Excellent 90–100% Total marks scored
Good 80–89%
Average 70–79% Total possible marks
Fair 60–69%
Poor below 60% Score
89
Chapter Three Organizing for Advertising and Promotion