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Camille works at an ad agency in Los Angeles that does both TV and print ads. Her specialty is keeping production costs within budget. In this exercise, you'll help Camille ensure that the ads come in within the budget allowed.

Your text discusses some common "budget busters" and makes the case for discipline in planning a production. There is always a tension between the aspirations of creatives to produce a great commercial and the restraints of a client's budget.

Read the case below and answer the questions that follow.

Camille works as a producer at a large Los Angeles agency. She is tasked with creating a commercial for her new client, a dog food manufacturer called Fido-Bits. She wants to impress the client with a great ad, so she sets up a meeting to make sure she understands their expectations. The ad manager at Fido-Bits, Donna, is very warm, and she and Camille hit it off immediately. Donna says she is excited about the ad, but cautions Camille that the ad budget is very tight. "We want a great ad," says Donna, but we can't have budget overruns. Our budget is $200,000, and not a penny more." Donna continues, "Don't bother asking for a budget increase, Camille. We just don't have the money."

Camille estimates that if they shoot the storyboard and production goes smoothly, they will come in around $195,000. So she has little margin for error.

1) During a preproduction meeting, Donna calls Camille and mentions that her favorite band is in town. Donna wonders if Camille would be interested in approaching the band about doing music for the commercial. Aware of the added costs that this might incur, Camile replies that

Donna should not offer creative suggestions.

Camille does not like the band nearly as much as Donna does.

the band is wrong for the creative in the ad.

using prerecorded stock music will help the production stay in budget.

the creative decisions for a production are always made in postproduction—it is too late.

2) Camille meets with her director, Diego. Diego offers a rewrite of the script based on his years of experience. The initial version of the script was to be completely shot in a studio, but Diego's new version includes scenes that would be shot on location. How should Camille respond?

It is not Camille’s job to second-guess a big-time director like Diego.

It saves money to shoot both on location and in the studio.

Shooting both on location and in the studio adds expenses. They will have to film in the studio only.

The director of a commercial always determines how production will go.

Shooting on location will give the crew a needed break from the studio.

3) A famous Hollywood star contacts Camille. Although the star has never done commercial work before, he is now interested in working in a select few commercials. Because he is a well-known dog lover, and because he feeds his own dogs Fido-Bits, he would consider an offer to appear in the new commercial. How should Camille respond?

The actor Camille has chosen will do a better job.

Camille will consider the offer if the actor will work for scale.

The actor should offer to pay to appear in the commercial.

Using recognized talent in a commercial is never a good idea.

The actor is worth every penny of added cost since he is popular.

4) The famous Hollywood star is insistent. He says he will work for free. Camille's response should be

"You deserve much more than that. We'll pay you your original fee."

"Free is great, you're hired!"

"We are required to pay scale."

"Maybe we can pay you something between free and scale."

"There must be something wrong here if you will work for free."

5) Camille is on the set to see the filming of the commercial. Diego's years of experience come in handy as he expertly gets the filming complete in a single day, but only because everyone works very hard. At the end of the filming, a person in Camille's agency suggests taking the crew out to dinner to celebrate. When Camille asks where the money for the dinner will come from, her colleague says, "We'll bill the client for it!" What is the likely outcome?

The client does not have the money, so Diego is obligated to buy all of them dinner.

The client does not have the money, so Camille is obligated to buy all of them dinner.

Hard work deserves a just reward. The client will have to find the money to pay.

There is no money in the budget for taking the crew to dinner, so everyone will have to pay their own way.

The client does not have the money, so Donna is obligated to buy all of them dinner.

Operation Management, Management Studies

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