Advertising and sales promotion

Industry: Health care

II Unit
Advertising agency
MEANING:
The advertising agency carry out the activity on behalf of their client against
remuneration called fees.
They conduct market research, consumer research, product research etc.
They advice the manufacturer on product design or package design, pricing of
product channels of distribution Besides, they advice on the market condition from
time to time.
Advertising agency conduct the production activities of visualization, layout,
illustration, headlines, copy etc.
They also help in the selection of proper media and the frequency at which the
advertisement should be presented.
Thus, the advertising agency relieves the burden of the trader or manufacturer of
the responsibility of advertising, production and distribution.
Definition:
The American Association of Advertising Agencies (AAAA) defines an
advertising agency as: An independent business organization, composed of
creative and business people, who develop, repair and place advertisements in
advertising media for sellers seeking to find customers for their goods and
services.

Department of advertising agency
Departments of an Advertising Agency
The organisation of an advertising agency may be divided in various
departments entrusted with a specialised function to be performed
under each departmental manager who is specialised in the task
allotted to him. The main departments of a large sized or reasonably
sized advertising agency are as follows:
Contact Department
Art Department
Media Department
Mechanical Production Department
Copy Department
Research Department
Radio and T.V. Production Department
Finance Department
Merchandising Department
Public Relation Department

contd
Contact Department: Contact department works under a
senior executive officer known as the departmental manager.
The main function of this department is to contact the new
clients on the one hand and maintain the existing clients on the
other hand. A number of contact men works under him.
Art Department: This department is headed by the art
manager who is assisted by artists, layout men and visualizes.
A visualise is a person who prepares the rough layout of the
advertisement which is later developed into a comprehensive
layout. The art department is responsible for the physical
appearance of the advertisement for preparing layouts,
illustrations, photos and for specifying the types to be used.
Media Department: This is a very important department
which Works under the supervision and control of a media
manager. This department is entrusted with the work of
selection of media for the Advertiser according to the needs,
directions and budget of the Client. He remains in constant
touch with different Medias.

contd
Mechanical Production Department: It is also a very
important department which works under the control of a
technical manager. The main function of this department is
to look after block-making, printing, proof-reading and such
other technical jobs.
Radio and T.V. Production Department: In case the
advertising agency provides advertisements on the radio and
television, it would have a separate department for this
purpose. This department works under the supervision and
control of a Manager who is duly assisted by a number of
assistants, musical consultants, script-writers etc.
Merchandising Department: In case of large sized
advertising agency, a separate merchandising department is
established under the supervision and control of a
merchandising manager which is specialist in displays,
exhibits and preparation of various advertising aids.

contd

Public Relation Department: The main function of this department is
to establish and maintain contact and mutual understanding between
the organisation and the public. It performs a liaison work between the
clients and the various sections of the public - customers, employees
and shareholders etc.

Research Department: The main function of this department is to
study markets, Medias and other subjects of interest to the advertising
agency. It helps better advertising for clients.

Finance Department: The main function of finance department is to
arrange and control finance. Thus this department is responsible for
maintaining proper accounts, billing and collection of dues from the
clients, verifying whether the advertisement in the different media
actually appeared on the days it was scheduled, if so whether correctly,
and whether the text was properly printed and also looking after all the
routine matters relating to accounting, recording etc.

Advertising budget
ADVERTISING BUDGET:
Advertising budget is an estimation of total expenses that are to
be incurred on advertising during a given period of time.
The advertising budget includes items of expenditure relating
to advertising programmes, cost of space, advertising material
(including advertising copy) production expenses, media
expenses, agency commission and advertising research etc.
In the most elementary form, it states the proposed advertising
expenditure and informs and suggests the company
management of the anticipated cost of executing the
advertising plan. It is the translation of advertising plan into
money.
The advertising budget must be realistic, flexible and adequate
for the advertising programmes.

CAMPAIN PLANNING
ADVERTISNG CAMPAIGN PLANNING:
The campaign planning is the joint effort of both the
advertiser and his ad Agency. The advertiser supplies
much information about the product, the channel of
distribution, competition the product, and the firm.
The agency may collect other information from the
market, in respect of target audience etc.
Advertising campaign planning concerns many people
in the advertising agency, but mainly concerns the
advertising manager (for the client), account
executive, marketing manager, creative director, media
planner, and PR manager. They design and plan
advertising campaign for the client.

Factors Influencing the Planning of Advertising
Campaign:

1. The Organisation its reputation, position in the market.
2. The product e.g. Consumer (Perishable, durable or
speciality) goods, or industrial goods etc.
3. The market the nature of customers, their income, their
buying behaviour, and their location.
4. The competition.
5. The absolute price of the product, Competitors price etc.
6. The channels of distribution.
7. The budget, the advertising theme, etc.
8. The media, the advertising schedule etc.
9. The Govt. regulations and controls, restriction on certain
Products, restriction on certain media to carry out certain ads.
Etc.


ORGANISATION STRUCTURE OF AN
ADVERTISING AGENCY

Meaning:
The organization structure differs from agency to agency depending upon functions
performed and size of the business. Because of the highly personalized nature of the
advertising agency business, it is difficult to say which type of organizational
structure would be suitable for it. Many agencies organized according to the
personal preferences of the management. Most large and medium sized agencies
followed one of the two systems, the group system and the departmental system and
some combine them.

1. Group System: Under this system the writers, artist, media planners, buyers and
other specialists are assigned to a group of accounts. All are under the general
direction of an account executive or group head.

2. Departmental System: Under the departmental system, same type of specialists
is grouped in the same department. For instance, all writers in the copy department,
all artists in the art department and so on.


ORGANIZATION OF
ADVERTISING DEPARTMENT
CENTRALIZED- BY PRODUCT, FUNCTION,
END-USER, MEDIA AND LOCATION
DECENTALIZED ORGANIZATION
GLOBAL STRUCTURE
Media Scheduling
Media Scheduling : Media scheduling could
be used depending upon the requirements of
the advertisers.
Media planning
Media planning in general should involve optimum benefits in the
long run.
There is no single best media strategy that is applicable in varied
situations or sometimes even in similar situations. Media strategies
also differ because of changing situations.
For example,
The state of the economy changes just as consumers tastes change.
Advertisements for luxurious cars would therefore not be effective
during times of economic depression. Similarly, advertisements
about blue jeans, when jeans are not in fashion, would not have
much impact.
To select the right media and to search the right target audience for a
desired response the advertiser or his advertising agency should go
for a systematic media planning.