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HomeMy WebLinkAbout1992-06-08 92-316 ORDER�Ll Dare 6-08-92 hem No. W s �dzdn9 the City llvHatRx' to � a Ccntxect Item/Subject witls Mur3 ung, gitlfa anal TEilnen W a srvlola a Huse Panel Responsible Department: Advertiais P� Cifar.$�tM Commentary: lfiis pnoposal fm H>®n rwdauetl anM recce for approval by the Finance C®ndttee at its meetim pf .Nre 2, 1992. Marwger'sCemmamz: ]�,,,,,..H-(2,���pyyywp {�Fvrysaµ iry Mvnvgn Associated Information: Iaanolve, plop al budget Approval: Fim Legal APprovel: v, 6e• M cnYsou arr vn Introduced For ED Nonage First Reading Pape _ of ❑Referml Aeelymed W Cowcdor Baldacci June 8,1992 92 316 CITY OF BANGOR (TITLE.) orber, Auctoriving the City Manager to E>a[ate a Caa[a t with Market , [Gatlin and vEllmn to Provide a Bis Pa al Advertising Program By tae Oity Cm of do My of8ey . ORDERED. THAT tha City Maaag¢' is authariu to execute a cmtract with Max�ting, aleBia and i bmmn to p itl a bcs Patel a&vart� pro9<ae, btmch cartract shall be mflectiva of the atbwo� "Propoaal to H p tie City of Bangor oauelcp and mplaent a Profitable Bus Pael advertising Program" and in a form acceptable to tha City Solicitor. 92-316 ORDER IN CITY COUNCIL Title June S. 1992 Passed - q N f 1 the Cit Ma to Hacute .. u, ox z.:&.. e... X.. nage:... s Contract with Marketing: Media and CITY CLERK Wellman to Provide a Bus Panel Advertising Program. ......................... 4............ `i Assigned to 2 oa Councilman Marlceting,Menta Wellman 92 316 purchasing Depart; ` City Hal 73 Harlow Strce[ . notion, MB 04401 e' Fabzaary]2, ]992 - A Proposal To Help The City of Bangor Develop and Implement _.A Profitable Bus Panel Advertising Program' I Introduction . The Bus public transportation system servesthecore market area of the Bangor Metro market as determined by the Bangor SMSA. The Bus want; b increase operating funds through the We of advertising space outside and inside its vehicles tointemsted parties. The Bus does notwant tolase any money in the development of this program. Indeed, TM Bus worts to generate ss much money as possible from this venture. Therefore, the advertising space needs to be priced at its optimum value ... and then mustbepresented mappropdateprospectsin ineffective, benefitoriented way inotdertopermadethem to invest in advertising on no Bus's Movine Bathes ds. - Given the many potential impressions that are available to advertisers amoughadverdsing on The Bus, we believe the piogmm will be a great successifthe sales presentation is well conceived, well organized and based on rumors, up-to-date statistical information. We also believe that for the program to remain successful, the advertising displays mestbe attractive and conform to high standards of design andlayout. If the advertising on The Bus is professionally prepared, The Bus will then become an effective public relations tool for the City of Bangor, as well as a profitable venture for the City's public transportation system. It will also result in more effectiveness for One advertisms. This agency would very much like to develop The Bus's advertising program an its Superintendent, Joseph Mulled, and for the benefit of the city's administrators. H selected to perforin this service, we will immediately commence work in the following areas: 1.) Designing lhesalesprogram and thepremngtion ofadverfising displayson thebuses, interfacing with potential national and local businesses capableoffabricefing the signage structures foratgchmeat m The Bus, and developing a means of mersurementto prove the value of Bus advertising 10 it's clients; 2.) Determining the dollar and promotional value of the advertising to advertisers; 3.) selecting the best possible prospects for the purchase of advertising on the buses; 4.) Securing the sale of the space for the department at the optimum price; and, 5.) Overseeing the production to conform to high design and quality standards. Sune 102. One Cumtrerland Place,lsmn , ME Wet*(4O2)NI 1900 Ii a 92 316 Brief Description and Histo Marketing;. Media & Wellman was established in 1987 by Mark Wellman. Its mission is. to provide superior marketing and communications programs to commercial, industrial, nonprofit, and municipal clients in order m help them reach specific goals in a cost-effective manner. Attached to this letter is a copy ofMarkerline, a promotional piece which provides abrief description of who we are and what we do. Prior to starting the company, Mr. Wellman was responsible for writing the marketing plan and producing and semrring media coverage for the Committee To Save Garland Street Field. He served as Sales and Marketing Director of Stephen King's Zone Corporation from 1985 to 1987. And from 1982 to 1985 he was responsible for marketing development and strategic planning for statewide and regional clients of the Augusta' advertising fmm Ad -Media, Inc. Chants for whom Marketing, Media & Wellman has provided professional services include the University of Maine Athletics Department, Old Town Cance Company, Onsite Weather Services Company, The City ofBangor, The Banger Convention and Visitors Porous (Bangor 2000), Sawyer Environmental, The Housing AuthorityofTheCity of Brewer, Carpets Unlimited, One Cumberland Partners, Norlheart Care, Snow & Nealley, Inc., I.A. Caruthers Engineering, Dunham Industries, Smokey's Greater Shows, Stephen King, Richardson and Troubh P.A., Pat McGowan, and The Maine Library Association. Recently, Dick Corey became an associate member of Marketing, Media & Wellman to augment our capabilities in marketing management, sales Promotion, and merchandising. He was previously the publisher of the £nsrem Moine Business Digest Magazine. Prior to that he worked for Ford Motor Company for suste myears as a regional sales executive and sales manager for New England. Dick will xssistinthepromotion and sales of TheBus'sadvertising services. His uniquerelationship with theoverall business community is excellent based on his integrity and talent which was revealed as sales manager of the Busirrrsr Digesr Magazine. This firm has a great deal of experience in direct marketing. We like to think of ourselves not as an advertising agency, but as a marketing firm with excellent in-house agency capabilities in design and communications. We produce strategic plans that work, and then implement them. This is exactly the type of service you need. On this assignment, we can bill at either our normal hourly rates or, if you prefer, we can work on commission. Most sales organizations work on some sort of commission basis in order to more highly motivate their salespersonnel. In your situation, this would bethe best way for you to know that we're working our hardest for you. The mora money you make, the more we make. Gage Z- A. 92 316 Because of our confidence in making this assignment an effective partnership between the City and Marketing, Media & Wallace, we're perfectly comfortable with Us arrangement and recommend it. However, because of the need to do preliminary, research, analysis, strategic planning, graphic design, and advance publicity; we will require retainer of $2,000 in order to develop the plan. This $2,000 is non-refundable and the only investment we ask you to make in the formulation of the Bus's advertising program. In the plan we develop, we'll project the total ad sales we feel we can generate and we'll have a better idea of the mount ftime it'will take us to sell out theprogmm at the optimum level s. We suspect that we'll want to retain 35% of ad sales as our commission. very minimum. we exams The Bus to realiu net income in excess of $IS 000'n the llrst veer All advertising contracts and payments will be payable The Bus. Our commissions will be paid for by the City based on actual collections, not in advance by contract sales. Any design and/or other production services provided by skis firm to adverdsers will bebilled by us directly to them. Th is arrangement further protects the City from paying M, M & W my treaties unless the aty has first profited from our efforts. Besides Dick Corey's recent activities in advertising sales for the Barman Di nest Magazine, Mark Wellman acquired a valuablebackground in media sales as an amount" motive and general sales manager at Z62 radio before founding this firm. Setting up the sales of your media poses no problem in as much as he's done it before. Based on realistic projections put forth in the plan mentioned above, you'll know what to expect in ad revenues and gross profit atter the first year. Sales of ad space in additional years should also continue to be handled by this firm and we ask that, given an acceptable level of success, that this provision be included in the agreement One fact we've at ready learned through our research is that when municiple departments take over ad sales responsibilities, revenues decline dramatically. In any case, that option is one which the purchasing Agent can address after evaluating our performance. V. A Contract For Services We are not lawyers. Therefore, we'ie uncomfortable writing contracts. We are delighted, however, in signing them and welcome the purchasing department to draw up such a document to the City's liking and pramartit foroursignature. Wehaveenclosed ourstandard centrdctwhich you mayjustwish to modify for your convenience. Thank you, once again, for the opportunity to sse,ve the City of Bangor. Arai-W&a l C Mark T. Wellman Andrew C. Hinson >: Presidentand CEO rN.P.Maketing Communications