What are the functions of an advertising agency? Discuss.

Explain the services rendered by an advertising agency.

Ans.

Functions of Advertising Agency

Or

Services Rendered by an Advertising Agency

Advertising agency makes plans and executes the advertising campaign. The advertising agency renders several services like, preparing sales promotion materials, advising on marketing management or public relations, preparing and distribution messages, etc. The advertising agency works according to the instructions of the advertiser.

The major functions of advertising agency can be explained as under-

1. Obtaining New Clients : It is the most important function to obtain new clients. Firms having sound values, efficient management, efficient operations, products etc. are preferred.

An advertising agency keeps in view the following things while selecting the clients –

(i) Advertiser’s financial status,

(ii) Growing companies and located in nearby area,

2. Advertising Planning: Advertising agency makes advertising planning for its clients. Advertising department is responsible for this function. Agency analyses marketing methods and distribution channels used for product.

3. Media Selection: It is the highly specialised function of the advertising managing agency. In making media choice, cost, circulation, audience, incomes and other relevant information are assessed.

4. Creation of Advertisement: Specific advertisements are created, copy is prepared, layouts are done, illustrations are drawn, messages are made and commercials are produced by a varied group of creative people.

5. Research Function: It is also a major function of an advertising agency. This function supports the decision taken in the creative and media areas. The advertising agency collects and analysis the real information on product, market, competitors, buyers’ habits.

6. Marketing Function: Advertising agency can carry some non-advertising marketing function. It can do the following marketing functions –

(i) Selecting target consumers,

(ii) Determining of prices and discount,

(iii) Products and package designing,

(iv) Developing channels of distribution strategy.

7. Co-ordination Function: Salesmen, distributors and retailers – all are assisted by advertising agency. Co-ordination with client’s sales force and distribution network ensures long-term success of the advertisers.

8. Other Functions: Some other functions of an advertising agency are as under-

(i) Helps advertisers in creating advertisement.

(ii) Process advertisements with the appropriate media.

(iii) Produces ideas for what will make good advertising.

(iv) Does public relations tasks.

(v) Studies the products, market, competitors and promotional problems of their clients.