Maconomy Provides New Models for Marketing Communication Agencies to Make Pricing, Utilisation and Compensation Truly Profitable

Maconomy A/S (MACO) today published a new three-part white paper series which focuses on the "Profitability Triangle" for Marketing Communication agencies. The papers can be read at http://www.maconomy.com/whitepapers

Compensation, utilisation and pricing are the three elements that make up the profitability triangle. Each paper focuses on one of these factors and explains how agencies can use them to make their firm more profitable.

The series is a timely read for agency managers. Creativity is still at the core of what drives an agency's success, but as managers know, there are growing pressures on marketing communication firms to be more accountable with regards to what they charge clients, what they pay their staff and so on.

The paper on resource optimisation, for example, explains how agencies can convert a large bulk of their permanent staff to free agents. "Management may want to retain some very top creative resources in an agency to make sure that such resources do not become unavailable at an uncomfortable time," it says. "In general, it should be all layers except the highest and lowest levels of the organization that should be evaluated when considering extensive use of free agents."

In the pricing paper, Maconomy explains how marketing communication businesses can work actively with pricing and the pricing mechanism. It also clarifies why attention on pricing is an urgent matter. "Clients want to know what they are paying for," it says "and marketing communication businesses will need to make sure that they are only buying what clients are willing to pay for."

The third paper, which focuses on compensation, explains how agencies can better control compensation costs and achieve dramatically improved profitability. It emphasizes that agencies need to tie compensation of employees directly to the business performance, and provides a model for how this can be done.

"For close to two decades Maconomy has provided tailored business solutions to marketing communication agencies" says Hugo Dorph, CEO, Maconomy. "We know our customers' challenges and, along with our solutions, aim to provide authoritative knowledge and insight with our white papers, to help them take on the pressures in their markets and continuously succeed."

For more information please contact Rolf Carlsen, Director, Corporate

Marketing, Maconomy, at:
Phone: +45-3527-7900
Fax: +45-3527-7910