CHARTERED INSTITUTE OF PURCHASING & SUPPLY
Marketing Specialist Knowledge Group Paper:
Finding and Appointing a Marketing Communications Agency
Section 1 - Introduction
This Knowledge Works guide is intended for those who are encountering, or being asked to
manage, marketing procurement for the first time.
It is not an exhaustive treatise. The intent is to provide some basic, practical information and
advice to help those who are new to this sector to get started, together with some additional
information links for those who, having read the guide, would like to know more.
Section 2 - Definitions
Marketing professionals and communication agency personnel will frequently use terminology
to describe functions and processes that may take place during an agency search and
selection programme that is different from the terminology more commonly used, or familiar
to, the procurement professional.
In order to minimise the confusion that these differences may cause, some of the more
commonly used terms have been briefly defined below, indicating the equivalent procurement
terminology where appropriate.
Above the line / ATL
generally defined as advertising communication for which a payment
is made to a media owner (TV channel, press title, cinema screen,
poster site etc) and for which the agency creating the advertising,
and/or planning and booking the space where it appears, is paid a
commission or fee.
Advertising agency
A company specialising in the creation of ideas to promote a product,
service or message by an identified sponsor using paid-for media.
Many advertising agencies offer communications services beyond
this narrow definition.
B2B
Business to Business. Relating to the sale of a product or service for
any use other than personal consumption. The buyer may be a
manufacturer, a reseller, a government body, a non-profit making
institution or any organisation other than an ultimate consumer.
B2C
Business to Consumer. Relating to the sale of a product for personal
consumption. The buyer may be an individual, family or other group
buying to use the product themselves or for end use by another
individual.
Below the line / BTL
Non-media advertising or promotion where no media commission
has been paid to the agency: BTL includes communications such as
direct marketing, point of sale and promotional marketing (sales
promotion).
Brand
The set of physical attributes of a product or service together with the
beliefs and expectations surrounding it – a unique combination which
the name or the logo of the product or service should evoke in the
mind of the audience.
Brief
A formal document passed to an agency by a current client or
prospective client (see Pitch Brief below) containing the essential
guidelines for the execution of a communications campaign of some
kind. Structure and content vary in practice but might include
campaign objectives; budget; product, company and market profiles,
strategy guidelines, timetable; implementation procedures;
constraints, criteria for evaluation of effectiveness, and other
directives.
Chemistry meeting
A face-to-face meeting between the client and the prospective
agency which precedes a formal pitch, giving the two parties the
chance to take a look at one another. The agency has the
opportunity to briefly present their relevant credentials/experience
and their first thoughts about the client’s business. The client has the
opportunity to meet the agency’s principals/potential team, talk in
outline about the objectives they are hoping to achieve and to ask
relevant questions. Part of the intent is for the parties to intuitively
tease out whether they can work together. It is a formal meeting but
it isn’t a pitch.
Credentials Presentation
A relatively informal presentation by a communications
agency to a prospective client. It may also take the form of a written
document and be presented/written as a response to a Request For
Information (RFI).
Design consultancy
A company specialising in design projects ranging from brand
identity, design of marketing communications (including web and
print) and structural design (including packaging and product design).
Digital agency
A company specialising in the creative and technical development of
internet based communication including web design, email
marketing, viral campaigns, online advertising, search engine
optimisation, podcasting and more.
Direct marketing agency
A company specialising in the creation and implementation of
activities that make it possible to offer goods, services or transmit
messages to a segment of the population by post, telephone, email
or other direct means.
Incumbent
An agency that has been engaged to provide consultancy and
services to a client on an on-going basis and is therefore deemed to
be the client’s agency of record (see Retainer).
Intermediary
An expert adviser on the communications agency marketplace,
specialising in helping clients (both marketers and procurement) to
find and appoint the right communications agency for their needs.
Marketing
Management process responsible for identifying, anticipating and
satisfying customer requirements profitably.
Marcomms
All methods used by a company to communicate with its customers
and prospective customers.
Media agency
A company specialising in the planning, negotiation and buying of the
media space (channels may include TV, cinema, press, posters, PR,
sponsorship, digital/interactive, word of mouth and direct mail) where
commercial messages will appear.
OJEU
Official Journal of the European Union (formerly known as OJEC),
the publication in which all contracts from the public sector valued
above a certain threshold must be published and a call for tender
issued. Local authorities, NHS Trusts, Central Government
departments and some privately funded/managed contracts if the
project is in receipt of more than 50% public funds are obliged to
publish their contracts in this way. Information used to appraise
potential suppliers who tender for the contract includes financial
(accounts, prices), quality systems (ISO9000), environmental policy,
references and site visits. The process is governed by strict time
deadlines, notification processes and paper trails that must be
adhered to/completed. See www.ojec.com.
Pitch
A formal presentation made by a communications agency at the
invitation of a prospective client who considers the agency qualified
to handle their business/account. This may also be referred to as
‘tendering’.
Pitch list
The short-list of agencies selected by a client to pitch for (or ‘tender’
for) the client’s business/account. This short-list will normally have
been drawn from a wider pool of prospective agencies that have
already made credentials presentations.
Public Relation consultancy A company specialising in activity that aims to establish and
protect the reputation of a company or brand, and to create mutual
understanding between the organisation and the segments of the
public/communities with whom it needs to communicate.
Retainer
A regular fee paid to secure and retain the services of a professional
adviser (i.e. agency) on an on-going basis.
Sales promotion agency A company specialising in the creation of a range of techniques
used to engage the purchaser. These may include discounting,
coupons, guarantees, free gifts, competitions, vouchers,
demonstrations, bonus commission and sponsorship. May also be
known as Promotional Marketing.
Sponsorship agency A company specialising in this specific branch of sales promotion
where an organisation will help fund an event or support a business
venture in return for publicity.
Section 3 - Role of the procurement professional in agency search and
selection
Whilst the relationship with the communications agency is principally the province of the
Marketing department, it is acknowledged good practice for Marketing and Procurement to
work in close collaboration with one another when agencies are being selected and
appointed.
It is a common desire amongst marketing personnel that they should be the ones to lead the
search process; the responsibility for demonstrating where they can add value and rigour to
the proceedings and support the Marketing department (as opposed to just being drafted in at
the end of the process to negotiate commercial terms with the selected agency) can therefore
rest squarely on Procurement’s shoulders.
Procurement can add value and rigour by:
1.
2.
3.
4.
5.
Helping the Marketing department to define the criteria that potential agencies
must meet in order to be considered for the opportunity
Creating a time line within which all of the key milestones of the search process
will be reached and then ensuring that the time line is adhered to by all parties
Maintaining a level playing field for the participants to compete within, ensuring
an efficient flow of information between the Marketing department and the
participating agencies and giving impartial feedback to the agencies where
appropriate
Helping the Marketing department to construct a meaningful scoring system or
evaluation criteria by which to assess the short-listed agencies
Helping the Marketing department define the scope of work/requirements against
which the short-listed agencies or appointed agency must submit their
remuneration proposals
The purchasing of marketing services requires a sensitivity and modification of approach that
would not be necessary when purchasing some other goods and services. You are buying
creative thinking (which can seem very intangible) and creative output (the judgement of
which can seem very subjective).
The success - or otherwise - of the agency’s creative thinking and output is also very
dependent upon the strength of relationship between the Marketing department, the
procurement department and the agency. The emphasis upon and importance of the
chemistry between the parties, the engendering of trust, and the development of appreciation
of both creative and commercial sensitivities, should not be underestimated.
Section 4 - Things to consider before you undertake an agency search
process
The following questions are well worth considering with your Marketing team prior to
embarking on an agency search process:

Do you really need to do this?
A communications agency pitch demands the commitment of considerable time and effort by
those involved in the process, diverting them from their other professional responsibilities and
commitments. A full search process may take 3-4 months or more to complete. Due
consideration should be given as to whether or not your current agency relationship has
irretrievably broken down and could be mended or whether you may already have the
resources to satisfy the brief in-house or via other existing agency relationships.

Do you have senior management endorsement/authority to proceed?
Making sure that senior management are aware of the proposed review and agree with it is
essential. It can lead to existing relationship damage, the expending of unnecessary time and
effort and considerable embarrassment if you fail to get the buy-in of key senior stakeholders
upfront.

Have you told your incumbent agency or agencies of your plans?
Once you have made the decision to proceed with an agency search process, it is highly
recommended that you advise your incumbent agency of your intentions; this will avoid them
discovering from another source that their tenure of the account is under threat and will
stimulate open discussion about their future with you, whether they have an opportunity to
retain the account etc

If you have an incumbent agency, will they be invited to take part in the pitch
process?
The incumbent should not be invited to re-pitch for the account if it is clear to both the
marketing department and procurement that they have little or no chance of retaining the
business following a competitive pitch.

What are your contractual obligations as far as the incumbent agency is
concerned?
Your obligations may relate to notice period, termination, TUPE issues, materials/company
information currently in the agency’s possession, and creative work already planned for or in
production but not yet completed.

Are there any third party relationships that the incumbent agency manages on
your behalf?
Will these continue to be managed by the incumbent or new agency going forward or will you
now require a direct relationship with the third party/parties?

Who are the key stakeholders that will need to be involved in both the process
and the final decision-making?
It is important to give due consideration to those within your organisation who need to be
involved with the process and final decision-making as opposed to including everyone who
wants to be involved. Pitch processes are time-consuming affairs, requiring significant diary
management of senior personnel who also have their day jobs to manage whilst this is going
on.
Making sure that you have the right people involved at each stage of the process is key to
achieving the successful appointment of the right agency in a reasonable time frame.

Who, within your organisation, needs to be aware that the pitch is happening
but will not be actively involved in the pitch process?
Identifying those within the organisation who need to be aware of the pitch (even if they won’t
be directly involved in the process) and advising them of the ‘party line’ to give if they are
approached by those outside the organisation (journalists, other agencies etc), will help you to
control and manage the flow of information about the pitch and prevent inaccurate information
finding its way into the trade press.
It is advisable to prepare a press release stating the information about the pitch that you are
happy to have in the public domain; this, again, will allow you to control the flow of information
and go some way to prevent inaccurate speculation.

What is the objective in holding the pitch and what is the defined scope of
work?
Are you intending to appoint an agency to provide on-going consultancy/service or is your
requirement for a project-based relationship only? Do you need a single agency to manage
all of your needs, a ‘lead’ agency who will define the approach or strategy that will be
executed by another agency or agencies, or do you need to create a roster of agencies that
will handle your brand, brands or projects?

Is there a requirement for this process to take place within the provisions of the
OJEU public tender process?
All public sector organisations (or companies who are managing projects whose funds are
made up of more than 50% of public funds) will need to use the OJEU public tendering
process for projects with a budget of £93,000 or more.

Do you need to engage the assistance of a specialist intermediary or industry
trade body in order to compile a list of agencies, advise on best practice or
help you to manage the process?
The marketing communications industry is complex, fast-moving, and significantly oversupplied in all communication disciplines and at all levels of capability, size and
sophistication. This can make finding the right agency for your needs an arduous and
confusing process. It is worth considering whether you might benefit (particularly in terms of
saving time and avoiding expensive mistakes) by enlisting the help of authoritative third party
advice and guidance.
THE REMAINING SECTIONS OF THE KNOWLEDGE PAPER ON PITCHING HAVE YET
TO BE DRAFTED
Section 5 - The agency search process
Section 6 - The pitch
Section 7 - The appointment of the agency / agencies
Section 8 - Things to consider following the agency appointment
Section 9 - Useful sources of information
Kerry Glazer, April 2008