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Organizination And Management Of Advertising
Agencies And Advertising Departments- DETERMINE THE TARGET MARKET: establish the main characteristics of people in
the target market. Such characteristics segments would be used in developing the copy or
message appeal which will also fit into the class of media selected. - ESTABLISH CAMPAIGN’S GEOGRAPHICAL COVERAGE: identify the geographical
extent of the product’s distribution. This will assist in selecting the appropriate media that
should cover the reach such as local, regional, national or selective plan. - DETERMINE AREA OF EMPHASIS: the area of emphasis should be determined for the
promotion campaign. Such areas include:
• THE REACH: it refers to the total number of people to whom the message should be delivered.
• FREQUENTCY: refers to number of times it is delivered within a given period, this is
usually figured on a weekly basis for ease in schedule planning.
• CONTINUITY: is the length of time a schedule runs. - ECIDE ON MESSAGE EXPOSURE TIMING: establish the best timing for copy exposure
to the target audience. A decision as to when to spend the money in advertising is one of
the key elements of media strategy. A few principal timing patterns for using media are:
• SEASONAL PROGRAMME: for product that has sales seasonality nature.
• STEADY PROGRAMME: is applicable when the sale of a product is uniform throughout
the year.
• PULSATION: is a technique of having comparatively short bursts of advertising in a
few markets at a time, rather than running a steady but weaker schedule of advertising
simultaneously in many markets. - MONITOR COMPETITOR’S EFFORTS: competitors’ activities must be effectively monitored,
particularly if their campaign expenditure is bigger than your plan. Competitor’s promotions
efforts can easily render your firm’s efforts ineffective. - EXAMINE ALL MERCHADISING PLANS: check for nay merchandising plans, such as
special inducements offered to the buyer, for example premiums, prize contests or special
price reductions. Competitors can use such to exert pressure on your plan. - FORMULATE THE MEDIA MIX: determine the best combination of media that will suit
the firm’s campaign plan, from the identified number of alternative available media.
METHODS OF AGENCY COMPENSATION
- Commission plan, which the agency collects from the media – such commissions are usually
fixed at 15% of the gross advertising expenditure. This is an internationally agreed standard
and it is the commonly used method. - Service charge plus media commission.
- Service charge plus commission credited.
- Service fees only, paid monthly or quarterly.
- Agency cost and a profit percentage margin. (Stanley,1977 and Kleppner, 1979)