Mini Usa Essay

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1. Discuss the various reasons why companies change advertising agencies and how agencies gain and lose accounts. What are some of the reason why Scheid, Roberts, and Reicher might have decided to resign the Mini account after having such success with this client? There are a number of reasons why clients switch agencies. 1. Poor performance/service. The client may become dissatisfied with the quality of the advertising/service provided by the agency. 2. Poor Communication/personality conflicts. The client and agency staff fail to develop a good level of commination to maintain a good working relationship. Client and agency don’t have a good rapport. 3. Personnel changes in either the agency or with the advertiser. New managers may wish to use an agency that they have already had success working with in the past. Or Agency personnel may often take accounts with them when they switch agencies or start their own firm. 4. Changes in size of the client or agency. The client may get so big it actually outgrows its agency. Transversely, if the agency gets too large, the client might not get the attention it feels it deserves. 5. Conflict of interest. An agency cannot handle two accounts that are in direct competition with each other. 6. Changes in clients corporate or marketing strategy. A client may change its marketing strategy and decide that a new agency with an integrated capabilities is best aligned with its strategy while they adopt an integrated marketing communications approach. 7. Declining sales. When sales of the clients product or service are stagnant or declining, advertising may be seen as a part of the problem therefore the client may seek out new advertising representation. 8. Conflicting compensation policies. Many companies are pushing for incentive based compensation which may not be seen as an agreeable

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