Deutsch, Inc. Competition
Now Viewing Deutsch, Inc.'s competition in: Advertising and Marketing (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of businesses does the company serve? - Some concentrate on industries such as banking or health services; others on retail or manufacturing.
What is the company’s annual client retention rate? - Seventy to 80 percent is considered good.
What kind of contracts does the company hold with clients? - Advertising clients aren't generally bound to an individual agency and may move their accounts to another agency, usually with 90 days' notice.
What are the company's main competitive advantages? - Principal competitive factors include the agency's creative reputation, knowledge of media alternatives and purchasing power, geographic coverage and diversity, personal relationships, service quality, and an understanding of client needs.
How many other ad agencies also work for the company's clients? - Larger clients tend to use more than one agency for their advertising requirements.
Have the company's clients reduced the number of ad firms they work with? - Many consumer goods companies are consolidating their marketing activities to only one or a small number of agencies to ensure a consistent worldwide brand presence and message, allowing them to better coordinate marketing activities and simplify and strengthen relationships with marketing partners.
Competitive Landscape
Demand for advertising and marketing services comes largely from businesses that sell consumer products, entertainment, financial services, technology, and telecommunications. The profitability of individual companies depends on creative skills and maintaining client relationships. Large companies benefit from being able to serve the varied needs of major customers. Small companies can compete by focusing on niche markets or by offering lower pricing.
Business Challenges
CRITICAL ISSUES
Dependence on Economy - Demand for advertising and marketing services is highly sensitive to the health of the overall economy. Spending by clients depends heavily on consumer confidence and retail sales. Agencies aim to maximize the usefulness of their campaigns during a down economy by investing more in research, tweaking their online presence, and endeavoring to create ads that get talked about, among other initiatives.
Satisfying Major Customers - A majority of ad sales comes from a handful of conglomerates with multiple brands. Manufacturer, financial, and service industry consolidation has created larger ad accounts that require larger ad agencies. Many agencies have just a few customers, and the loss of a single large account can lead to huge adverse consequences. Though agencies often specialize in an industry, they generally can't work for more than one client at a time in that industry.
Industries Where Deutsch, Inc. Competes
- Business Services
- Advertising & Marketing
- Advertising Agencies(primary)
- Advertising & Marketing
