Issue 109, 19/02/09

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With so much focus on reducing costs and making marketing budgets go further, one of the least favoured and yet most effective and sustainable ways to reduce costs is being overlooked by many advertisers. That is improving process efficiency and effectiveness. In this edition of TrinityP3 e-news, we look at the dangers of assuming everything is working well with your agency relationship, without spelling out your expectations.

Engage efficiently and reduce costs

When the markets are growing and there is less pressure on budgets, most people naturally look to effective delivery as a measure of success, rather than efficient delivery. Getting the job done can be seen as more important than getting it done on time and on budget.

But budget reductions put cost efficiency into sharp relief and the knee-jerk reaction can be to reduce spend and demand the same level of service, assuming that the process is running excessively. The fact is that often it is not running excessively, it is running inefficiently and simply cutting the spend will not solve your problem.

Aligning the process and defining the level of expectation refines the cost

Last year a client asked us to review their agency remuneration as they felt the agency was expensive and slow in their response. The review found that the client’s decentralised marketing structure had created five marketing teams all operating to different processes and different expectations of the agency, some efficient, others not.

Effectively the agency had five clients in one and each brief and each process had become customised to each team's way of operating without any planning or thought, it simply grew out of organic change. By aligning the processes across the five teams we were able to deliver scales of efficiency, reduce the agency resources required and improve the response rate. It also made the management of the process easier.

Engagement agreements are the way to improve efficiency and reduce cost

When appointing a new service provider or where there are issues regarding underperforming to expectation, the development of an Engagement Agreement is an effective way to address this. Basically an informal agreement of mutual expectation is developed collaboratively between the two parties and then implemented across all stakeholders in the relationship.

Undertaken in a Workshop format, it is ideal for discussion and resolution of any underlying issues or concerns within the groups. TrinityP3 can facilitate the development of the Engagement Agreement between marketing and any of the key service providers, including creative agency, media, digital and direct marketing.

To find out more on Engagement Agreements, contact TrinityP3 in Melbourne on 03 9682 6800 or Sydney on 02 8399 0922 or email darren@trinityp3.com

Case Study - TV production costs

A Government department was planning to make a major announcement on changes to their service and their Agency proposed a commercial set in a studio against a white background with various types of talent delivering the message to camera. The production company was planning to shoot on 35mm film.

TrinityP3 conducted a 48hr TV Production Assessment Report, and noted that the amount of film stock allowed was excessively high. We recommended that as the director was planning to shoot more than 200 times the amount of footage that would be needed and that as the action was taking place in a studio, where lighting can be carefully controlled, digital video would be a viable and low cost alternative to 35mm film and would reduce the cost of the production significantly.

Agency Proposed Quote: $600,000
Cost agreed after TrinityP3 recommendations: $480,000
Saving: $120,000 or 20% of budget
Return on Investment: 5000%, or 50 times the investment

To have your next TV quote assessed for an amazing ROI, contact people@trinityp3.com or call Melbourne 03 9682 6800 or Sydney 02 8399 0922.

Evalu8 your relationships

The new Evalu8ing On-line Survey System allows you to evaluate and identify the collaboration and quality of the relationships with people working internally or externally across a number of organisations.

Evalu8ing is a self managed, low cost online system set to revolutionise the evaluation of relationships:
• intuitive, flexible interface
• coloured graphical reports show relationship status
• accommodates up to eight defined parties
• flexible to accommodate your own questions
• or use any one of the standardised panels

Evalu8ing. Collaboration. Relationships. Performance.
For more information, click here for the Evalu8ing pdf presentation
or visit the Evalu8ing website

CIPSA Category Management

2nd CIPSA Category Management Forum.
25th, 26th & 27th March 2009, Sydney
Australian Technology Park Conference Centre

Darren Woolley will speak on Day 1, Wed 25 March
Navigating the black hole of marketing expenditure
• How procurement can assist marketing to manage their suppliers and achieve efficiencies to make the marketing budget more effective.
• Understand media planning, buying, agency remuneration, contract management, supplier rosters and models.
• Practical steps to shine light on marketing purchasing and deliver measurable results.

For more information, contact CIPSA