Methods of rational use of possibilities of advertising agencies

 

Advertising can be developed for clients or the people who are not employees of agency, or clients. The space and time in mass media are usually got through the special companies by directly clients, and market research is carried out by the special research companies. So advertising agencies what for are necessary? Agencies are necessary for planning and carrying out in a life of advertising efforts of the client [29, with.127]. The world of advertising agencies is so wide that, most likely not any advertiser (especially beginning) knows what kinds of advertising agencies there are also what services they give. Therefore rational use of possibilities of advertising agencies acts on the foreground.

In advertising? Agency of a full cycle? Is the organisation which is carrying out four basic functions:

1) management of the account;

2) creative services;

3) planning and area acquisition in mass media;

4) researches. Such advertising agency usually has own service on conducting the account of the client, the department of movement performing work on internal tracing of realisation of projects, division for working out broadcasting both a printed matter and a staff department. As a rule, the contract between? Agency of a full cycle? And the client defines that the agency for commission fee or other co-ordinated fee makes the analysis of the data of the market, offers strategy, prepares recommendations, develops advertising, places it in in advance co-ordinated mass media, checks advertising on conformity to requirements of the customer, exposes the invoice to the client within the limits of the voted budget, receives money resources of the client into the accounts and pays services of mass-media and suppliers. Besides, the agency can incur the functions which are not included in the contract and not paid separately: it is work on public relations, research projects, direct marketing, marketing of actions and stimulation of sales. Some agencies offer specific services through the divisions or branches. Clients can use specialised agencies also.? Agencies of a full cycle? In Novosibirsk while is not present. It most likely is connected with that, for the effective organisation of works of such agency the big material inputs and coverage of great volume of manufacture and the information are required. Work of specialised agencies differs works of " agency of a full cycle". They specialise or in performance of certain functions, or in certain branches (public health services, computers, agriculture), or in a certain kind of works (for example, marketing researches, placing of advertising messages in mass-media, TV advertising placing, outdoor advertising placing and so on). Specialised agencies work in different areas of marketing: direct marketing, stimulation of sale, public relation, marketing through public and sports actions, design of packing, design of corporate symbolics and so on. Exist such business of agency which specialise in trading communications. Along with business? Such agencies are engaged in advertising in trade advancement, trading exhibitions and presentations. Such agencies in Novosibirsk the set and appears every day more and more. Specialised agencies need to be used in all cases when the enterprise has no possibility to take advantage of services of " agency of a full cycle" and independently spends an advertising campaign. In the present state of affairs services various specialised agencies will be necessary for it: for carrying out of marketing researches, for creation external, a print advertising, advertising on radio and TV. In our case of Open Company " Натали" addresses in specialised agencies (" Media the Software", " Agama", " Duet", " Region a press" ). But when there is a choice? To address in " agency of a full cycle" or in specialised agency, it is more rational to address in the last when the advertised goods or service demand the special approach, and " the agency of a full cycle" cannot provide such approach. In specialised agency it is necessary to address and when the enterprise cannot take advantage of services of " agency of a full cycle" owing to limitation of incomes. Virtual agencies? It is recently arisen phenomenon of the agency working like group of people of liberal professions. The tendency of occurrence of virtual agencies sees as well that there is no necessity for habitual office. Many managing directors of advertising agencies assert that from third to half of offices of any agency are empty, as experts work on a call of clients or are on office affairs. In virtual agency employees have no constant office, they work at home, in cars or offices of the clients. Modern computer technologies provide members of such command with all necessary for work out of office. Their meetings will be organised by a principle of videoconferences or by means of an exchange of e-mail. When it is necessary for members of team to gather at office, they can to include the computer in a suitable place.compact multipurpose racks with things necessary for work can be resulted on a current workplace. Within the limits of the virtual concept the space divided into parts, is replaced with free space for employees, computers, faxes, phones and all that members of team bring with themselves. Now virtual agencies are the most rational for using for carrying out of marketing researches, the analysis of the market, carrying out of interrogations, that is for reception of information services, and also for advertising placing in the Internet. Agencies take the incomes from two main sources? Commission fee and fees [29, с.163].commission system. Right at the beginning advertising agents operated more likely on behalf of mass-media, instead of in interests of the client. In the nineteenth century advertising agents represented itself as representatives of newspapers, magazines and printers of posters. If the agent brought advertising to the publisher, that paid to it commission fee which were defined, proceeding from volume of the work executed by the agent for the blessing of business of the publisher and by preparation of advertising to the publication. The agent could write the advertising text, think up a breadboard model, type the text and mark a place for drawings and the photos which were a part of advertising. These efforts of the agent saved to the publisher time and reduced volume of its basic work. In process of growth of the importance of advertising advertisers aspired to employ as less as possible people. In 1901 Klarens Kurtis from Curtis Publishing has established 15% of commission fee for advertising agencies? 10% for preparation of materials and 5% for maintenance of immediate payment [29, с.163]. Introduction of such practice has changed all advertising industry. Instead of granting one mass-media to many advertisers now the agent operated in interests of one client, placing its advertising in many mass-media. However the commission system remained hardly probable not the unique form of compensation.commission fee at a rate of 15% long time were considered as a certain absolute standard though the great number of exceptions of this practice is already observed.

The note: the sum of figures can be below 100 percent as answers of some advertisers do not get under one of these systems of compensation or answers have not been received. The rate is defined in the course of negotiations between the client and agency. As a result of these negotiations it is established, what work will be carried out by agency under the contractual rate of commission fee and that should be paid separately. The alternative form of commission fee is гонорарная the system. This system is equivalent that for which advertisers pay work of the lawyers. Clients of agency agree on the hourly fee or the tariff. This fee can change depending on employed divisions and level of wages in each division. The uniform hourly fee for all work, irrespective of level of actual earnings of executors is in certain cases co-ordinated. These payments also join expense accounts, payment of moving and all articles which are usually paid at commission system. Payment is made in the pure state without any extra charges or commission percent. Mass-media also expose accounts to clients in the pure state without increase at the size of commission fee. A solving element in гонорарной to system is the trust. The client should be assured that each employee of agency conducts the strict account of working hours and correctly distributes its expenses on concrete commodity marks or projects. Besides, the client should know that the hourly tariff of agency fairly reflects wages, an overhead charge and the established rate of return [29, with.169]. How the agency estimates the fee? It defines expenses on a wages, rent, telephone conversations, mail, internal operations, equipment rent, taxes and other costs, and then establishes, what hour tariff in a condition to cover all these costs, and also to provide to agency profit. Widespread practice is the fee establishment as private from division of the trebled mid-annual wages of the worker of agency into average quantity of working hours in a year [29, with.169]. In any case for the enterprise which spends an advertising campaign and addresses to advertising agency services, it is more rational to use commission system of payment. The matter is that at use of commission system, reducing expenses on advertising, the client really achieves economy, in whatever volume the advertising budget was reduced. In case of application гонорарной systems the same client will receive economy on reduction of schedules of an advertising campaign, but will continue to pay to agency the working hours connected with contact to mass-media, revision of plans of use of mass-media and alteration of exposed accounts? Invoices [29, с.170]. From the aforesaid the conclusion arises what easier to deal with the advertising agency using commission system of payment. As to an advertising agency kind the advertiser solves this question independently. Arguments in favour of this or that kind of advertising agency should develop depending on what amount of works should be executed to the agency, what advertising purposes are pursued by the advertiser, it has what volume of means. It is obvious that services of " agency of a full cycle" will manage to the client expensively. In our case we advertise the new goods, therefore it is more expedient to employ agency of a full cycle that it has carried out market research, has offered strategy, has executed advertising and has placed it in mass media. But, considering impossibility of use of that kind of agency (in the absence of them in the market of advertising services of Novosibirsk), it is necessary to address to services of specialised agency, is more true even to several. They are already listed: - " Media the Software" (for carrying out of marketing researches); - " Agama" (for outdoor advertising working out); - " Duet", " Region a press" (for print advertising working out). Thus, the given agencies have been chosen because " agencies of a full cycle" in Novosibirsk while are not present. Besides, advertised production of Open Company " Натали"? The goods-novelty, - demand the special approach at advertising campaign carrying out. As payment system the commission system of fee of agency as it is to more flexible and adequate results from an advertising campaign is chosen.

 

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