Advertising Agencies And The Role They Play Marketing Essay

Identify the different parties and briefly describe their role i.e. the functions of these parties (advertiser, client, ad agency etc.) in the communication industry.

Advertising agency:

An advertising agency is an independent company set up to render the specialized services in advertising in particular and in marketing in general. It is a source of communications expertise, stands ready to conceive, plan and implement the communications requirements of the client or account it serves.

Advertising agencies create most advertisements from the core of the advertising industry. Some companies, however, have their own advertising departments which function much like an agency. The development, production and placement of a single ad can be a time consuming process involving a large number of people with a variety of business and creative skills. Advertising agencies not only create the advertisement but also pay for the cost of placing the ad in the newspaper or magazine or on television or radio. A large advertising agency or department may employ hundreds or thousands of people, including advertising and marketing specialists, designers, and writers known as copywriters, artists, economists, psychologists, researchers, media analysts, product testers, librarians, accountants, bookkeepers and mathematicians.

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Role of Advertising Agency:

The advertising agency plays a vital role in the marketing process of organization. An effective advertising campaign can help in increasing sales, develop brand loyalty and build brand equity. All of which contribute to increase in profits and market share. Similarly, without advertising customers stop buying products and services which lead to decrease in sales and eventually minimizes the profit. Therefore, the role of an advertising agency is highly crucial for the success of organization.

The relationship between an advertising agency and a client is like two partners in a tennis match, without one the other cannot win. The client brings an advertising assignment to the advertising agency then the agency work with the client and comes up with a solution that would meet the objectives of its client and finally the solution is then implemented through print ads, television and radio commercials and through other advertising media.

Sources: (6th edition, E.Belch)

Advertiser:

A person, organization or company that places advertisements in order to target customers.

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Role & Functions of advertiser:

Advertiser is also called advertising Manager as we take advertiser as a person.

Following are the duties of advertising manager:

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Budget Preparation .

Estimates Preparation.

Preparing annual budget

Planning and preparation marketing strategy

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Public Relation.

Negotiation

Coordinating activities across the various departments of the agency.

Collection of information and sorting the information for advertising campaigns.

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Sources: (Richard J.Semenik)

The Skill Set of an Advertising Manager

Effective writing.

Strong listening skills

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Management Skills

Decision-making skills

Effective communication skills

Alternative Selection Skills.

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Problem-solving capabilities

The ability to be persuasive and motivate others

Financial Reporting Skills.

Leading Skills.

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Negotiation skills

Social awareness

The ability of problem identification and solving skills.

Innovation and originality

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The ability to generate multiple ideas quickly by brainstorming

Sources: (6th edition, E.Belch)

Client:

Customer of a professional service provider, or the principal of an agent or contractor. Or Person who receives help or advice from a professional person (ex. a lawyer, an accountant, a social worker, a psychiatrist, etc).

As we know the clients are basic tool of earning profit through industry so we need to have good public relation here we will discuss public relation which will also show the importance, Role and Functions of client. In communication industries clients are considered who give you contract of advertisement. Clients are very important as they are customer of the industry. So it is necessary to build public relation or good relation with them.

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Public Relations (or PR) are a field concerned with maintaining public image for high-profile people, commercial businesses and organizations, non-profit associations or programs. Public relations (PR) concerns professions working in public message shaping for the functions of communication, community relations, crisis management, customer relations, employee relations, government affairs, industry relations, investor relations, media relations, mediation, publicity, speech-writing, and visitor relations.

Types of Public Relation

Financial Public relations :

Provinding information regarding financial reporting.

Consumer public relations :

Relationship with consumer & Customer..

Crisis public relations :

Responding to negative accusations or information.

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Industry relations

Relationship with trade bodies.

Government relations :

Relationship with government to influence policy making.

Sources: (Richard J.Semenik)

Media as party in communication Industry:

In communication, media (singular medium) are the storage and transmission channels or tools used to store and deliver information or data. It is often referred to as synonymous with mass media or news media, but may refer to a single medium used to communicate any data for any purpose. Media reffers various means of communication. Radio , TV . Newpapers etc. The groups of news agencies is also called media.

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Source: (wikipedia.com)

Discuss the relationship between the different parties of the industry

In the same industry all stakeholders depend on each other so they have to build good relation between them.

The client and the advertising agency must maintain a perfect relationship between each other for the welfare. A client may expect the following from the agency which includes excellence in everything they do; agency should have a clear knowledge of the clients business; agency should have a touch with customers. Because they are dependant on each other. As the advertising manager has to have the ability to assess the load advertising would have to bear to achieve a particular marketing goal, it is also her/his responsibility to help the enterprise determine the advertising budget. In this, the advertising agency could also make a contribution. Often, the two would work as a team. The final decision would of course depend on the resources available, which might not necessarily permit the ideal amount of expenditure. From this responsibility follows the next one, control of the expenditure on advertising.

A media is a company which helps companies to communicate with current and potential consumers and/or the general public. Media agencies work with their clients to understand the business issues; it includes TV channel, News paper, Internet portals etc.

Sources: (Wikipedia)

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Discuss the current trends in the advertising.

Current trends in Advertising:

Trends in advertising cannot be same all over the world and trends can be change in every country according to the situations of that country. Now a day’s people are mostly advertising on internet and in some European countries they use electronic billboards for advertising, while in past people were only relying on simple billboards, TV, Radio etc. But with the passage of time, new technologies are coming in front of the people and according to these technologies our advertisements are also improving.

In Pakistan, currently we are using very less amount of electronic billboards. But we hope that in near future these electronic billboards will be more in work than simple billboards.

Internet growth is increasing very quickly all over the world and now Pakistani people are also getting familiar with the Internet in their normal routine life. Thus, this is the reason that most of the companies are advertising on the Internet through pop up windows advertising, advertising on both sides of the window , Google advertising etc, with the purpose that many people can watch their advertisements every where on their computers.

The cost of Electronic Billboards are cheaper than the simple billboards as on electronic billboards different advertisements will be run one by one, so the overall cost will be less. In European countries, electronic billboards are very common while in Pakistan, these electronic billboards are not the ordinary way of advertising. In Pakistan, still many companies rely on TV advertisements, as Television advertisements are still valuable way of advertising.

Sources: (Quickmba)

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Identify at least two of the trends in Pakistani market and discuss with examples.

Billboards:

Many companies are advertising on billboards. Moving around the cities of Pakistan we will found different and attracting billboards of different products. Ufone is advertising through billboards with huge size than their competitor’s 7up using 3d billboard in which the bottle is coming out of the board. Some local firms are also advertising on billboards like Kareegar and R-sheen.

Television:

Television advertisements are improving day by day in Pakistani market. Some TV ads are short mostly 30 seconds and some products use full songs like Tarang, Mobilink and telenor. Some advertisements are very amazing which are mostly watched by the customers because of its attraction. Companies use stars in their ads like Mobilink is using Waseem Akram and LG mobile using Imran Hashimi as a model.

Some local firms use local TV cable network channel for advertisement like Kareegar, deans arcade etc.

Radio:

Radio is the low cost media and it’s mostly used in some special occasions like cricket matches or elections. So some companies use this media for advertising like trend mobile, Ufone, telenor etc.

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Sources: (Richard J.Semenik)

Internet:

According to Pakistani market now trend is very fast moving towards internet advertisements. Many companies have formed their websites like www.ufone.com , www.waridtel.com.pk etc. some companies advertise on other websites they give links on other websites like on Google, yahoo, and msn. As ICMS were advertising on yahoo. Some products are advertised through popup. When other website is opened popup appears.

Evaluate the impact of these trends on the industry and parties of the industry.

The impact of traditional and new media currently used by organizations for advertising and promoting their products and services are below

TV:

Now a day almost in every home there is a television. There for companies focus on advertising on TV. According to gallop PTV has 98% of reach.

Now days media is improving very much the ads are also improving. We can find many products having very amazing ads. Like dew, 3g etc. Coca cola has a very creative add, if someone view that add once can easily be attracted toward it.

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Billboard:

The impact from the billboard is not easy to find out but to some extent the organization can measure sales after installing it. Billboard is cheaper way to advertise .even small business companies can advertise through it easily.

Radio:

Radio is quite accessible, but the number of listeners is decreasing day by day which makes the radio less strong media then TV newspaper or magazines. Mostly the radio is only listened on special occasions like cricket matches or elections etc

Internet:

Many companies advertise on the websites or search engines which are mostly used like Google, yahoo, msn etc. because now a day’s internet is becoming need for people.

Sources: (6th edition, E.Belch)

Select two ads which have to be evaluated considering the response hierarchy models.

Models

Stages

AIDA model

Hierarchy of effects model

Innovation adoption model

Information processing model

Cognitive stage

Attention

Awareness

Knowledge

Awareness

Presentation

Attention

Comprehension

Affective stage

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Yielding

Retention

Behavioral stage

Action

Purchase

Trial

Adoption

Behavior

Source: (Belch, GE & Belch MA 2004)

Cognitive Stage:

Advertisers use different slogans, attractive messages (logical or emotional messages), logos or symbols etc in order to create an image in the minds of the consumers, therefore they will remember the product for a long time. And whenever consumers will buy any product, unintentionally they will go to buy those products which will their minds as created by advertisements.

For Example:

There are some slogans and logos which are in the minds of the people regarding those products which they observe through advertising. e.g.

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Telenor Pakistan (The Smart call)

Ufone (It’s all about U)

Advertisers use colorful backgrounds and attractive color combinations in order to stimulate consumer response towards their product. For example, uses of different colors and background in different occasions like valentine day or Christmas etc.

And introduce the product with different ways & making Space in your mind.

Advertisements in which film stars, sport stars, celebrities and models works become more fascinating to their fans. There fans will attract towards these advertising and will buy those products as they will think that if those stars , celebrities or models has used that product or worked for that advertisements , so off course these products will be good to buy. Therefore their fans will be stimulated to buy the product.

These types of ads are made in the cognitive stage. Where information is given to customer.

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Affective Stage:

Advertise use action, suspense, horror or more interesting situation in their advertisements in order to stimulate those consumer who like actions or those who like suspense etc. For example, telenor amazing scenes & Ufone with Funny Items, almost all advertising contains strange actions.

Advertisers use modern technologies in their advertisements in order to stimulate the consumer response of those people who are interested in technologies and almost all people love to see new technologies.

Make an effective judgment on the ads selected whether you think the ads are appropriately developed to satisfy the hierarchy models. Give reference to books or internet sources used.

I think the Affective Stage add of telenor talk shawk most suitable according to the hierarchy model because it linking the services with society as they show Ali zafar and Model that Use telenor talk shawk which produce & leading towards adaptation. This also gives chance of evaluation to customer minds as they mentioned the rates of services. It is also showing desires of customer as the customer want to talk on lower rates on their cell phones.(No books or internet source is used as I observed in add mentioned it as for images and information of adds internet sources are used).

Appendix

Cognitive Stage:

Affective Stage: