The Relationship between Client and Advertising Agency Rather than having their own in-house advertising operation,

some organizations may choose to use an ad agency either by hiring a full-service agency that takes care of all advertising duties or by employing specialists who perform services on an as-needed basis. Full-service advertising agencies perform research, provide creative services, conduct media planning and buying and undertake a variety of client services. They also may be involved in the advertisers total marketing process and may perform other marketing communication functions including sales promotion, publicity, package design, strategic marketing planning and sales forecasting. The primary advantages of hiring a full-service agency include acquiring the services of specialists with in-depth knowledge of advertising and obtaining negotiating leverage with the media. The main disadvantage is that some control over the advertising function is lost when it is performed by an agency instead of in-house. Another way for a client to accomplish the advertising function is to recruit the services of a variety of firms in particular specialties in creative work, media selection, production and advertising research. A full-service advertising agency performs at least four basic functions for the client it represents:

Creative Services: Copywriters, graphic designers and creative directors are responsible for developing advertising copy and campaigns to serve their clients interest. Media Services: This unit is charged with the task of selecting the best advertising media for researching the clients target market and achieving ad objectives within a budget. Research Services. Researchers are employed to study their clients customers buying habits, purchase preferences and responsiveness to advertising concepts and finished ads. Account Management. This facet of the agency provides the mechanism to link the agency with the client. Account managers act as liasisons so that the client does not need to interact directly with several different service departments and specialists.

In addition to these functions, advertising agencies may expand their offerings to include direct marketing, public relations and sales promotion services. With the growth in a range of more specialist marketing approaches such as Internet utilisation, direct marketing and mobile phone advertising; specialist agencies have been created. What this means to marketers is that they can access agencies that can undertake all of their communication requirements, some specialising in particular tools, others having more general knowledge.

Ad agencies are compensated for performing the functions described above. Twenty years ago, most agencies in Australia were remunerated on the basis of a commission and a fee for service. This was based on a 10% rebate for all media bookings and a 7.5% service fee that is 17.5%. Most agencies currently work on some form of monthly fee structure, and while media rebates are still part of the equation they are often rebated back to the client. Other agencies work on a job-byjob status and some work on head hours which is more transparent and fairer to both parties. Really what this means is that in Australia there is not one system most agencies work on a variety of systems based on client requirements. Some larger agencies link payment to the success of the campaign in other words, if sales go up so does an additional fee paid to the agency. Evaluating the Client-Agency Relationship by Teresa Todd What do music students from Juilliard, USC, Cal State Fullerton, UCLA and the San Francisco Conservatory, to name just a few, have in common besides an obvious love for music? A few find each other on Facebook and arrange to meet over their holiday break to present a world-class orchestra concert performance. David Jang, a 20-something-year-old triple-majoring in the arts, brought together 33 random music students from various schools and disciplines over the New Years weekend. The result: a concert of classical music that would rival any philharmonic orchestra. Besides the complete enjoyment of the music and proud parent moment of seeing a child on stage, I couldnt help but draw numerous marketing parallels to this ad hoc group of young professionals and, in particular, what they were able to create. Marketing your business should be more than placing a few ads and mingling at local business mixers throughout the year. Dont get me wrong advertising and networking are important components to any marketing plan with the operative word being plan. Equating this to the orchestra analogy, prior to any performance each musician tunes their instrument individually. The resulting sound can be less than pleasing to the ear as each instrument creates sound independent of one another. It is not until the first downbeat of the conductors baton that each instrument is played together in perfect pitch and synchronization according to the arrangement printed before them. Just as each instrument is capable of creating sound on its own, the full impact is not realized until they work together to create a unified sound. The same is true for marketing. While various components can stand alone advertising, public relations, online, direct mail, and more the effectiveness of any marketing campaign is dependent upon all components working together. A strategic marketing plan is similar to an orchestras arrangement. It should be a road map of the various elements of a businesss marketing strategy and guide the execution of each individual component. Agency Reviews

Whether your business has an in-house marketing team or hires an outside agency to handle advertising and public relations, January is an ideal month to evaluate last years performance and make decisions moving forward into the new year. Were established goals and objectives accomplished? Did the creative work represent your business the way it was intended? Were deadlines met and budgets adhered to? AdWeek, an industry trade publication, recently published the results of a new study conducted by Reardon Smith Whittaker consultancy entitled, A Clients View of Agency Performance. The company polled 184 client marketing and brand executives from major corporations to probe how clients view agencies. Topping the list, clients said having an understanding of their marketplace was the most important criteria for selecting an agency. Grasping the companys strategic direction as well as creative work presented tied for the second-most important factors cited, followed by offering something fresh and new. The study also explored why clients seek new agencies, what they are looking for and how satisfied they are with the results. The top-ranked reasons on a 1-10 scale respondents cited for launching reviews were unhappiness with their agencys thinking (46 percent), followed by dissatisfaction with creative work (40 percent) and not being proactive enough (38 percent). Simply popping out the monthly newsletter or the fun, quirky email blast isnt going to work anymore, said Mark Sneider, managing director at Reardon Smith Whittaker. Given the challenges clients are facing in light of the economy, they need agencies that can get up to speed quickly, add smart value-added thinking and are a trustworthy lot. Agencies face key challenges maintaining client relations after the initial win of the business. Many marketing clients surveyed felt their agencys performance simply did not match up with their expectations when first hired. The performance gap could be attributed to over-promising during the pitch phase or just general waning of enthusiasm on the part of the agency and marketer after the marriage, according to the survey. When asked about what growing areas of marketing communication most clients are interested in receiving from their agency, online marketing ranked highest (69 percent), followed by buzz marketing (58 percent), experiential efforts (53 percent), search engine marketing (52 percent), and mobile marketing (25 percent). Trailing the list were such tactics as interactive TV, product placement and advertiser funded programming. Selecting a New Agency When its time to recruit a new agency, advice or recommendations from marketing insiders or colleagues can be a good source for contacts and referrals. Local trade and business groups are another useful source. The Advertising Professionals Association (ADPROS), an affiliate member of the American Advertising Federation (AAF), has a website with valuable information and a membership directory, which includes local advertising, design, web, public relations, photographers and other creative professionals. The majority of ADPROS members listed on www.adprosla.com are located in the Santa Clarita Valley. Their work spans a multitude of projects for many high-profile local, regional and national accounts. Each year the organization participates in the ADDY Awards, the worlds largest competition for those involved in advertising, graphic design and related creative fields. Winners from this years competition will be announced during a dinner event on March 15, 2009. The local ADDY competition presents a good opportunity for prospective clients to see first-hand the quality of an agencys creative and to meet senior personnel. Businesses are encouraged to

attend. One last takeaway on the orchestra concert analogy, where 33 young musicians performed as well as any professional music organization many times their number: size is not an indicator of quality or ability. Likewise, dont judge an agency by size alone. Many small, boutique agencies can deliver as powerful a punch, if not sometimes better, than their larger counterparts and at a fraction of the cost.

Advertising ETHICS AND SOCIAL RESPONSIBILITIES MEANING:- The words "ethics" In Latin is called "ethic us" in Greek is called "ethikos" has come from the word ethos meaning characters or manners.

OF ADVERTISERS

- Ethics refers to the science of morals, a treatise on this moral principles recognized rules of conduct. - As per business firms, ethics is the study of good and evil, Right and wrong and just and unjust actions of businessmen. - Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, legal and business ethics - Business ethics is a form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole.. ADVERTISING ETHICS Advertising Ethics is part of basic ethics in action series. It is an applied philosophical analysis of the nature of advertising in specific ethical issues that arise in advertising. Includes case studies and refers to current professional codes and practices Advertising Industry and contemporary ethical theory. The values that govern the actions of and individual or group. Not all issues can be regulated. A marketing or promotion action may be legal but not considered Marketers must make decisions regarding the appropriateness of their Arguments for or against advertising Arguments favouring Advertising: Provides information.

general and of in the

ethical. actions.

 Encourages a higher standard of living. Creates jobs and helps new firms enter a market. Promotes competition in the marketplace. Arguments against Advertising:X Creates needs and wants among consumers. X Is more propaganda than information. X Promotes materialism, insecurity and greed. FEATURES OF ADVERTISING ETHICS A systematic and structured applied philosophical analysis of the nature of advertising. An identification and evaluation of specific ethical issues Provides students with a text that is theoretically sophisticated but practical at the same time. Comprehensive coverage of the ethics of advertising. Gives students knowledge of moral philosophy and professional and practical ethics as well as knowledge and experience of advertising practice. A rational and ethical decision-making model for identifying and evaluating ethical problems in advertising. Encourages more ethical advertising thinking and practice by giving students a better understanding of advertising ethics specifically, and ethics more generally.
ETHICAL AND MORAL PRINCIPLES

If the media are to be correctly employed, it is essential that all who use them know the principles of the moral order and apply them faithfully in this domain. The media of social communications have two options, and only two. Either they help human persons to grow in their understanding and practice of what is true and good, or they are destructive forces in conflict with human well being. That is entirely true of advertising. Those who commission, prepare or disseminate advertising are morally responsible for what they seek to move people to do; and this is a responsibility also shared by publishers, broadcasting executives, and others in the communications world. Those who give commercial or political endorsements, to the extent that they are involved in the advertising process. It is morally wrong to use manipulative, exploitative, corrupt and corrupting methods of persuasion and motivation. The techniques involved here include showing certain products or forms of behavior in superficially glamorous settings associated with superficially glamorous people; in extreme cases, it may even involve the use of subliminal messages. We can identify several moral principles that are particularly relevant to advertising. Truthfulness The dignity of the human person TRUTHFULNESS:-

Advertising has its own forms of expression, conventions and forms of stylization, and these must be taken into account when discussing truthfulness. People take for granted some rhetorical and symbolic exaggeration in advertising; within the limits of recognized and accepted practice, this can be allowable. The proper exercise of the right to information demands that the content of what is communicated be true and, within the limits set by justice and charity, should be complete. The obligation to avoid any manipulation of truth for any reason. THE DIGNITY OF THE HUMAN PERSON: Advertising can violate the dignity of the human person both through its content what is advertised, the manner in which it is advertised and through the impact it seeks to make upon its audience and all these advertisements appeals to lust, vanity, envy and greed, and of techniques that manipulate and exploit human weakness. This problem is especially acute where particularly vulnerable groups or classes of persons are concerned: children and young people, the elderly, the poor, the culturally disadvantaged. Advertising as untruthful Deceptive Advertising General Mistrust of Advertising and Among Consumers. Many Do Not Perceive Ads As Honest or Believable Abuses Involving Sales Promotions Such As Contests, Sweepstakes, Premium Offers Unethical And/or Deceptive Practices Involving Mail Order, Telemarketing and Other Forms of Direct Marketing Internet Scams and Abuses Advertising as Offensive or in Bad Taste Objections to Advertising Of Certain Products Use of Sexual Appeals And/or Nudity Use of Shock Ads Advertising and Children Children's TV Watching Behavior Children between ages 2-11 watch on average 21.5 hours of TV per week and may see 22,000 commercials per year Television is an important source of information for children about products
ADVERTISING AND SOCIAL RESPONSIBILITY Ecological issue: Advertising that fosters a lavish life style which wastes resources and despoils the environment, offends against important ecological concerns.

Authentic and Integral human development issue: Advertising that reduces human progress to acquiring material goods and cultivating a lavish life style expresses a false, destructive vision of the human person harmful to individuals and society alike.

 ADVERTISING AND SOCIAL RESPONSIBILITY

Role of Advertising in the Economy: Making Consumers Aware of Products and Services Providing Consumers With Information to Use to Make Purchase Decisions Encouraging Consumption and Fostering Economic Growth Economic Impact of Advertising: Effects on Consumer Choice Differentiation Brand Loyalty Effects on Competition Barriers to entry Economies of scale Effects on product costs and prices Advertising as an expense that increases the cost of products Increased differentiation
Benefits of Advertising Economic Benefits of Advertising: Advertising can play an important role in the process by which an economic system guided by moral norms and responsive to the common good contributes to human development. Provides and conforms the moral standards based upon integral human development and the common good. The most efficient instrument for utilizing resources and effectively responding to needs of a socio-economic kind. It is an useful tool for sustaining honest and ethically responsible competition that contributes to economic growth. It helps in informing people about the availability of rationally desirable new products and services and improvements in existing ones. It contribute to the creation of new jobs and higher incomes.

Political Benefits of Advertising: Political advertising can make a contribution to democracy analogous to its contribution to economic well being guided by moral norms. It helps to counteract tendencies toward the monopolization of power on the part of oligarchies and special interests. It can make its contribution by informing people about the ideas and policy proposals of parties and candidates. Cultural Benefits of Advertising: Advertising supports material of excellent intellectual, aesthetic and moral quality presented with the public interest. It contributes to the betterment of society by uplifting and inspiring people and motivating them. It can brighten lives simply by being witty, tasteful and entertaining.

Moral and Religious Benefits of Advertising: Social institutions use advertising to communicate their messages that educate and motivate people in a variety of beneficial ways. Advertising helps in spreading messages of faith, patriotism, tolerance, compassion and neighborly service, of charity toward the needy. Advertising helps in communicating messages concerning health and education to the people
Harms of Advertising

Economic Harms of Advertising: Advertising can betray its role as a source of information by misrepresentation and by withholding relevant facts. It is used not simply to inform but to persuade and motivate to convince people to act on the basis of irrational motives Consumer attitudes and life-styles can be created which are objectively improper and often damages the physical and spiritual health. They waste their resources and neglect their real needs, and genuine development falls behind. The dignity and welfare of society's poorer and weaker members are at stake. Harms of Political Advertising: Political advertising can support and assist the working of the democratic process, but it also can obstruct it. Political advertising seeks to distort the views and records of opponents and unjustly attacks their reputations. Advertising appeals more to people's emotions and base instincts like racial and ethnic prejudice Cultural Harms of Advertising: Advertising also can have a corrupting influence upon culture and cultural values their peoples by reflecting those prevalent traditional values. It helps to set aside high artistic and moral standards and lapse into superficiality, tawdriness and moral squalor. It ignores the educational and social needs of certain segments of the audience, who do not match the demographic patterns. The way advertising treats women and the exploitation of women, both in and by advertising, is a frequent and deplorable abuse. Moral and Religious Harms of Advertising: Advertising can be tasteful and in conformity with high moral standards, and occasionally even morally uplifting, but it also can be vulgar and morally degrading. The communications media have made pornography and violence accessible to a vastly expanded audience, including young people and even children.

 Commercial advertisers sometimes include religious themes or use religious images or personages to sell products which involve exploiting religion. Advertising is used to promote products and inculcate attitudes and forms of behavior contrary to moral norms. Conclusion Reputable companies and advertising agencies avoid telling lies. They realize the cost of being caught. A dent in trust can prove to be much costlier than the failure of an ad campaign or for that matter, even a brand. The challenge before advertisers and agencies is to ensure that ads reflect our values. We must endeavor to see that "advertising" does not remain a dirty word. Moreover, for the reasons and in the ways sketched here, we believe advertising can, and often does, play a constructive role in economic growth, in the exchange of information and ideas, and in the fostering of solidarity among individuals and groups. Yet it also can do, and often does, grave harm to individuals and to the common good.