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Explain your view of the current and future challenges advertising organizations face with regards to 4 External Influences Advertising agency is a business that assists advertisers in all stages of the advertising process from account management and planning to message creation, media planning, and research (Bergh & Katz, 1999, p. 29). In another words, advertising agencies are service companies that specialize in planning and execution of advertising programmes for their clients (Belch & Belch, 1990, p. 61 - 63). An advertising agency acts on the basis of an assignment placed by the client in which the client also delegates some decision making authority to the agency (Mills, 1990). In most cases the agency makes the creative and media decisions. Often it supplies supporting market research as well, and may even be involved in the total marketing plan. The activities undertaken and the amount of autonomy allowed to the agency vary from one relation ship to another (Aaker & Myers, 1987, p. 10).
Advertising services can be defined as packages of activities that are offered to other companies and which concern the planning, production and / or delivery of advertising. Advertising services are bought and designed to improve the purchasing companys performance and well-being (Wilson, 1982). Advertising is expected to influence the attitudes, intentions and behaviour of the clients customers and thus increase sales and contribute to the growth of the client company. The core of any service is linked to the benefit it offers to the buyers. Therefore in buying advertising services, companies are purchasing knowledge and creativity embodied in individual people.
Creativity is the heart and soul of advertising services and consequently a vital resource in every business relationship (Halinen, p. 28). The following are the characteristics of advertising agency: Intangibility The advertising services acts, planning, production and delivery of advertising are all essentially intangible activities, despite the fact that the knowledge and creativity are often translated in tangible forms. e. g. written briefs, research reports, commercials and advertising videos etc. The outcomes of advertising and its effect on customers are often intangible as well.
The final goal of advertising is usually to produce concrete economic benefits for the clients, but it is extremely difficult to assess these benefits. Advertising services, in contrast to capital-intensive services are people-intensive. In organizations, the knowledge may be embedded in individuals, in the organization itself or in capital equipment. In the advertising business the core service is bound primarily to the individuals who provide it. The role of facilities and equipment is secondary in the provision of services. This means that the participation individuals significantly influence the perceived quality of the advertising service and the whole business relationship.
It is said that if the client has a favourable personal relationships with the account service personnel, then they are most likely to be satisfied with the agency (Cagley, 1986). Advertising services are produced and partly consumed in an interaction between agency and client (Halinen, p. 30). The clients participation in the production process is crucial. The client commissions the assignment to the agency, negotiates the terms, provides the necessary information for the account management group and executes the acceptance of the plans and materials. The coordination between the agency and the client is needed in the relationship. The degree of client participation is also connected with the degree of customisation or standardisation of the advertising agency.
Advertising agency services are usually highly customised with respect to both the service options and the service process. It is important for the advertising agency to tailor their services to the special needs of the clients firm. Each client is different in its marketing strategy and products, therefore expects different creative and distinctive advertising campaign and advertisements. Therefore the agency must fist and foremost adopt the role of problem-solvers, who are expected to apply their knowledge and creativity to a specific clients brief. International advertising agency is also known as full-service agency offers advertising services such as marketing, communications, promotions services (planning, creating and producing the advertising), research and media selection; non-advertising services such as strategic marketing planning, sales promotions, direct marketing and interactive capabilities, package design and public relations is also offered. International advertising agency is made up of departments that provide the activities needed to perform the various advertising functions to serve the clients.
The organizational structures of an international advertising agency is shown below: Creative Department An advertising agency's main purpose is to create ideas. The creative department is responsible for bringing an advertising campaign to life. The ideas are turned into actual advertising messages designed to target relevant audiences to inform them the benefits offered by a particular product or service. The creative team consist of the copywriter and art directors. The copywriter is the writer in the tem that conceive the ideas for the ads and write the headlines, subheads, and body copy (the words creating the message).
They may also be involved in deciding the basic appeal or theme of an ad campaign and prepare a rough initial visual layout of the ad commercial. The art directors is responsible for how the advertisement looks. The art director prepares drawings that show what the ad will look like and from which the final artwork will be produced then it is translated into commercials whether in print (magazines, newspapers, billboards etc. ) or electronic (Television, radio etc. ) productions. The creative department work together to develop ads that will communicate the creative strategy for the clients product or service (Belch & Belch, 2001, p. 82). The traffic department coordinates all stages of ad production to make sure that the ads are completed on time and that all deadlines are met. Media Department The media department determine where and when advertising messages should be placed.
The media planners put together a schedule of different media vehicles and decide which medium will best reach the target audience at what cost. Once the plan is approved by the client, it is then executed by the media buyers, who negotiate with the media for space and time. Media buyers and planners work together to determine which media will be most effective at delivering the clients brands message with cost efficiency (Aren's, 1999, p. 101). Planning Department The primary role of the account planner is to learn as much as possible about how consumers interact with the clients brand and how it fits into their lifestyle (Bergh & Katz, 1999, p. 33). In another word, the account planner focus on the consumers perspective and the relationship with the clients brand. The account planners act as strategist who prepare comprehensive recommendations about the consumers wants, needs and their relationship to the clients brand and how the advertising should work to satisfy consumers (Wells, Burnett & Moriarty, 2000, p. 82).
The main reason why companies are using advertising agencies services is that agencies provide them with the services of highly skilled individuals who are specialists in their chosen fields. An advertising agency staff include account manager, artists, writers, media analysts, researchers, and others with special skills, knowledge and experience that can help market the companies (clients) products or services. Another reason for using an advertising agency is they can provide an objective viewpoint of the market and its business to companies that is not subject to internal company policies, biases, or other limitations. Advertising objectivity is necessary to maintain an independent and unbiased view of the marketplace and the consumers for companies (Wells, Burnett & Moriarty, 2000. p. 79). The advertising agency can bring on the extensive range of experience it has gained while working on a diverse set of marketing problems for its various clients.
For example, an advertising agency that is handling a travel related account may have individuals staffs who have worked with other travel related accounts like airlines, travel agencies, hotels, cruise ship companies etc. (Belch & Belch, 2001, p. 79). The agency may have experience in the companys industry and may even have previously worked on the advertising accounts of the companys competitors, therefore the agency can provide them with insight into the industry and possibly the competitions. The following are some reasons why companies should hire and use advertising agency services: Advertising agencies are the communication specialists. With expanding marketing dimensions businesses have increased problems with marketing communication. Advertising agencies have the experience and know-how to decrease these problems with improved performance and efficiency. Advertising agencies understand the fundamentals of integrated marketing communications and the consumer buying process.
Advertising agencies have the experiences and contacts to put companies business ahead in the marketing communications field. Advertising agencies have the experience and talent to effectively engage and inform companies customers about the services or products. Advertising agencies have experience with other similar companies' products and services. An advertising agency can afford more communication specialists than a company can because advertising firms spread the cost over many accounts. Advantages of using Advertising Agency Services: By using an advertising agency, a companys business will stand apart and above the competition. Advertising will discourage and intimidate the competition.
By using an advertising agency, a companys business will retain corporate identity and customers will be reminded of their product or service. When entering new markets, advertising agencies can educate prospects about the benefits and features of a companys product or service. Advertising promotes consumer good will and can increase employee moral. Advertising builds relationships with companies prospective customers while maintaining strong relationships with current customers. Advertising agencies work rigorously to meet and exceed companies needs and expectations. Using an advertising agency will help companys business reach its marketing goals.
Advertising agencies can strategically position company, services, and products in the market. Advertising agencies can re-position the competition, their services, and their products placing the clients company ahead in the market. Advertising agencies can help companies generate revenue by building awareness of their product or service and therefore increasing sales. Bibliography Aaker, D. & Myers, J.
G. (1987). Advertising management. New Jersey: Prentice-Hall. Aren's, W. F. (1999). Contemporary Advertising (7 th Ed. ).
New York: McGraw-Hill. Belch, G. E. & Belch, M. A. (1990). Introduction to Advertising and Promotion Management. Homewood, IL: Richard D.
Irwin Inc. Belch, G. E. , & Belch, M. A. (2001). Advertising and Promotion: An Integrated marketing Communications Perspective. New York: McGraw-Hill.
Bergh, B. G. , & Katz, H. (1999). Advertising Principles. Chicago: NTC Publishing Group. Cagley, J. W. (1986).
A Comparison of Advertising Agency Selection Factors: Advertiser and Agency Perceptions. Journal of Advertising Research 26 (3), 39 - 44. Mills, P. K. (1990). On the Quality of Services in Encounters: An Agency Perspective.
Journal of business Research 20 (1), 31 - 41. Wells, W. , Burnett, J. , & Moriarty, S. (2000). Advertising: Principles and Practice (5 th Ed. ). New Jersey: Prentice-Hall. Wilson, A. (1982). The Marketing of professional Services.
London: McGraw-Hill.
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