Document QkmpGwyb2eZv5g3MQ33J3XKnR

--............... -- ' Notes Regarding the Servicing of AZI/LIA by Edward H. Weiss, New York October 1968 PNYC00000396 N10089 -2- Argument for Separate Agencies 1. The concept of separate agencies for Zinc and Lead has proved itself in providing effective communications programs for more than ten years. 2. It is recognized on both sides that the primary reason for this agency effectiveness has been people-: people who have been trained by your Association over a period of years and have thereby developed a knowledge and understanding of your objectives and needs and how to implement them. 3. There are areas of competition as between the two metals, in anti-corrosion paints and battery systems, where separate agencies may provide more objective counsel. 4. Almost all major advertisers follow this pattern (i.e., of using more than one advertising agency). A major Weiss client, Mobil Oil, also uses Ted Bates and Doyle, Dane, Bernbach. PNYC00000397 AGENCY T A B L E OF O R G A N IZ A T IO N FOP. S E R V IC IN G I , I A putC l I -4- LIA Compensation Plan 1. dtondarcl commission basis under which we are now nIX'lUt i t"Kf : o 13 ' media commission to agency a n.b.i.. on production 5 Publicity on fee o Travel and out-of-pocket expense billed at cost. in .ivn-.i.ri foo of $71,000 (payable in equal monthly fees) to cover all activities as programmed for LIA 1969. Agency remits media 15% to LIA. Production and out-ofpocket expenses are billed to you at cost. A quick look at the 1969 program reveals this could mean for LTA a return of $34,000 Space Commission 6.000 Ad Production 33,600 PR Fee 5.000 Lead Magazine $78,600 The actual dollar yield should prove, in relation to total activities, s-lightly better than $6,600 advantage indicated here. PNYC00000399 Motes Regarding Consolidation at Weiss Should you elect to consolidate the AZI/LIA programs at one agency, here are the reasons why I believe E. H. Weiss will do a better job: 1. Our analysis of the time/manpower requirement leads us to counsel a fee basis for the joint AZI/LIA program which involves a savings for you of $13,600, Details are discussed later.' 2. The senior man on the LIA account is an executive vice president, a generalist with in-depth involvement in both advertising and PR. As director of all New York operations, he has more authority within his own company to be responsive to an emergency or rapidly-changing situation. 3. Were the account to be consolidated at Weiss, we should certainly offer positions to key personnel whom AZI should like to retain. It is part of my management philosphy to expose PR personnel to the total communications requirement Cspace advertising, trade shows, collateral literature, direct mail, etc.). ' I believe this penetration of specialized compartments produces a better product for the client. PNVC0C000400 <sr**' -f' -6 Because of its more complicated marketing problem and the role of the LIA staff specialists, it is more difficult to develop an LIA agency team than it is an AZI one -- a factor that comes into play in determining whether to consolidate with the LIA agency or the AZI one. PNYC00000401 S AGENCY TABLE OF ORGANIZATION FOR SERVICING AZI PNYC00000402 A2I Compensation Plan We have pointed out that savings might be effected by Lead Industries by choice of a fee rather than the standard 15-Ii income on space. A similar fee arrangement makes good sense for AZ f. A careful analysis of the time/manpower requirement for the AZI 1969 program has been made by me. It is keyed to the table of organization for staffing the AZI account which you have just read. A fee of $78,000 per year (or $6,500 per month) should cover all time and overhead factors. Your current method of agency compensation would yield $85,000 to your agency: Budget Gross Income PR $74,000 $65,000 Spotlight 19,000 5,000 Space Advertising 100,000 15,000 $65,000 Fee of $78,000 proposed here constitutes a saving of $7,000, or a combined LIA/AZI savings of $13,600. ILZRO S tu d y P u b lic ity ci 3 i 0 0 pH rH 04 O&h H O' cH a Xc 0 u X to % na it 1 1 poHO 04 O'N <0 <o pH rH , C ,q pH < * rH ftpH 4-4 .Q rH pH oo< 04 pH O'pH ` c<3 tto H D Cu < rH *4 pH 0 0 flj H JJ 4J U I X5o wVI <Iuat >1 4J 0 H a a cu *f0t oog <04 & a *H pH HJ 'O>i <u 0 03 0 coac* <0 pH *,OHi pH 4a04;) X Oc' 4XOoHJi OooS'vOia-5t X H O' 4J 0 0 H pH 4O0J 44 0 X D o m e s tic E n g r. (8) Uses o f te rn e in ro o fin g . 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