Functions and Role of the Advertising Agency

7/27/2019 Functions and Role of the Advertising Agency

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The overriding function is to see that its clientsadvertising leads to greater profits in the long run


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Plans, prepares, and placesadvertising to this end


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The agency supplies the outside point of view

Aid the advertiser in the firms efforts tocommunicate with prospective purchasers of itsproduct


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Between various advertising agencies lie in the

Creative skills of the personnel of each agency

Philosophies of advertising held by each agency

The agency size may be a significant factor in itseffectiveness, as larger agency may be able togive varied services; however smaller agencies may

be able to give personalized service


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The advertising manager has the responsibility forplanning the advertising program

Some of this responsibility is delegated to theagency

In addition, the agency must do considerable

planning in carrying out its own functions ofcreating and placing advertising


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Firms products

Its past advertising history

Present market conditions The firms distribution method

Is critical if the agency is to do an effective job


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A great deal about the product

Its pluses and minuses as compared withcompetitive products


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The agency engages in extensive research into themarket for the clients product

To market a product successfully, market studies

are conducted Who buys it

When

Where

How and

Why


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Correct direction and timing

Which is aided by this information

Competitors activities are also important


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The agency analyzes marketing methods anddistribution channels used in the past for theproduct in order to obtain specific informationabout the business environment in which theadvertising message is to operate

The advertising must be relevant to the present;and

Aesthetically acceptable to the consumer and tothe trade


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In addition to audience figures and comparativecosts

The advertising message must be adapted to themedium in which it is to appear

Different advertising media do have varying

impacts on different segments of the market forspecific products


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The agency knows the physical requirements of

each medium and creates ads that fits the spaceand time requirements of that medium


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From this background of :

Product,

Market,

Distribution, and Media knowledge

The agency can recommend strategies for

presenting the product to prospective buyers


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These ideas are submitted to clients for approval

Upon approval of the strategies, the agency isready to carry them out to create the ad andplace it

A full service agency can provide many othermarketing services to its clients

Can conduct post-advertising market studies to

ascertain the effectiveness of the advertisingcampaign.


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Media choices are made before the ads are created

Specific advertisements are created

Copy is written

Layouts are done Illustrations are drawn or photographed

The advertising messages are prepared in thecorrect mechanical form for running in the

selected media And commercials are produced


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Once the messages have been published or aired;

The agency verifies the fact

Pays the media and bills the client


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Agency works with the sales force and thedistribution network

To ensure the long-run success of the advertisingprogram

Maximum sales from the combined efforts of the

salesperson, distributors, and retailers allassisted by advertising are the goal


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of many details involved in advertising, the clientstill makes the major decisions

One fundamental decision is to advertise or not

Once the decision to advertise is made, the client

chooses an advertising agency


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Large advertisers may engage a number ofdifferent agencies to handle various brands intheir product line

Thereafter, decisions are concerned with thestrategy to be used in the advertising program

The ideas of the agency are approved, modified, ordisapproved


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In large agencies advertising specialists are

assigned to specific tasks in the preparation of adsor the performance of other services


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Keeping the client satisfied with the servicesrendered is of paramount importance to the

business success of the advertising agency

This is the primary duty of the account executive,who acts as a liaison between agency andadvertising department (advertiser) personnel

The account executive often works on the

formulation of the advertising strategy incooperation with the client


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Regardless of the source of the strategy, theaccount executive must see that the agency keepsto the stated plan

The account executive represents the client byexplaining the advertisers point of view to allagency personnel working on the account,

And also represents the agency point of view to the

client The job, therefore, calls for diplomacy and tact


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Merely liaisoning between the agency and theadvertiser is not all there is to accountmanagement

The account executive is in charge of theadministration of the advertising program on theagency side, thus serving as the catalyst in

bringing out the best in the agencys creative talent


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Once advertising plans are firm, ads are designedby creative personnel to carry out the plan

An agency retains a varied group of creative people writers artists, designers, graphic art specialists

The creative function may be under onedepartment, or it may be divided into several

separate departments, such as copy, art,broadcast, and production


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Is not a mechanical technique

It involves a novel or infrequent expression,

response, or concept

Creativity in advertising must be oriented to andcorrelated with the marketing situation and serve

as a communication problem solver


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Has been described as Presenting a product in a way that makes people want

to buy it.

Once advertising plans are firm, advertisements are

designed by creative personnel to carry out the plan

An agency retains a varied group of creative people,including writers, artists, designers, televisionproducers, and graphic arts specialists.

The creative function maybe under one department, orit may be divided into several separate departments,such as copy art, broadcast and production.


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This creativity often goes beyond the creation of

physical properties called advertisements anagency may recommend new products, differentdistribution methods or a distinctive selling idea


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The outside point of view shines through these

recommendations

The ideal agency has personnel who can generatenew marketing and communication ideas


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Another highly specialized agency function.

The goal of the media people in the agency is tochoose the advertising medium or combination

of media that will do the most effective job ofreaching the clients prospects.

Securing the right audience is the most importantfactor in media choices, but decisions of course are

affected by costs.


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From a maze of statistical data concerning rates,

circulations, populations, audiences, incomes andother relevant information, the most productiveadvertising media is chosen.


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A major service provided by the advertising agencypeople is research to support the decisions madein the creative and media areas

The gathering of factual information is often aspecialized agency function.

Data on the marketplace and consumer buyinghabits may be gathered and analyzed.

The agency may also arrange for copy-testingduring the creation of ad campaigns and after theyhave been run.


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Every advertising agency contains anadministrative arm which conducts routine,

behind-the-scenes business operations because itis a business enterprise.

In addition, it is essential that individual jobs becoordinated and done on time, since deadlinesmust be met.

This function is performed by a specialized trafficdepartment.


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Furthermore, larger agencies often have a legaldepartment to pass on the advertisements created

by the agency.

Smaller agencies rely on law firms for such advice.

Some agencies maintain merchandisingdepartments;

Others provide Public Relations services for

clients.


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The management of an advertising agencyprovides true challenges for agency executives.

In addition to the usual problems oforganizational structure,

There are the challenges of securing new businessand maintaining relationships with clients


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Top Management has another vital duty to getnew business.

Agencies grow in two ways:

1. By growing with their present accounts

2. By adding new accounts


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The first method involves doing good work for theclients and relying on increased business fromthese accounts

The second method involves acquisition of newadvertising programs

The agency management acts as the salesdepartment for the agency

Some agencies aggressively solicit new business;others discuss the possibility only on invitation


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Selling an agencys services to a client involvesmaking a presentation, which is a description ofthe agencys personnel, resources, presentaccounts, and successes.

The agency maybe making the presentation singlyor in competition with other agencies

Often clients require that a speculativepresentation be made.

In these presentations, agency executives showhow the account will be handled if it is given to theagency.


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No concept is more sacred to the advertising world

There is no other industry where the prosperity of aservice company, and its future growth, are soclosely linked with the success of its clients as in

advertising.


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1. We expect excellence in everything you do.2. We expect that your people will know our business

almost as well as we do, and that goes from thetechnical to the marketing, so that if there are

potentials for interesting advertising, it can becreated.

3. We expect your people to know the industry as wellas we do.

4. We expect your people to be with the consumers, theretailers, the wholesalers and in the front lines,

where the business is done and the battle is fought.


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5. We expect your people to be honest with us and notyes us.

6. We expect your people to give us every crazy idea theymight have, even though the rate of rejection is high

and the work load heavy.7. We expect your people to stay on your account and

not be taken away by competitors. We, as you, haveinvestments in them and, if they are good, we want

them.8. We expect you to have the same corporate affirmative

action policy on personnel on our accounts as we do.


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9. We expect to be presented with options goodadvertising dependent on mutual creativity

10. We expect total involvement at all levels ofagency management.


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All businesses need operating revenue to survive.

Advertising revenues come from two sources :

1. Commissions from advertising media

2. Client fees

Documents

Functions and Role of the Advertising Agency