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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