It is this uncertainty of business prospects every year, which often leads to quick turnover of staff, particularly at the account servicing level. Page 2.
The main functions of an advertising agency could be summed up as follows: study the product or service in relation to competition; analyze the present and the potential market; study distribution channels; evaluate the advertising media; develop an advertising plan; design, write and illustrate advertisements; prepare the necessary advertising material; arrange for placing the advertisements; check verify the appearance of the advertisements in the media; and handle the billing from and payment to the media owners.
Even the most effective advertisement is ineffective if it does not reach the right potential consumer.
Once the advertising campaign is finalized and has received the approval of the agency, it has to be presented to the client. The reason is obvious. At the same time the demands on the advertising agencies have also increased.
It is true that media rates have rocketed in recent years. It is clear that advertising agencies have been bearing the major burden of the expansion of advertising in India.It is in the creative department that a marketing concept is given flesh and blood in the process of converting it into a communication concept, powerful enough to induce a purchase. For instance, I can remember, how a very unstructured survey of a few bulk users of a bleaching chemical, popular with the textile industry, led to its introduction as a domestic whitener. Some agencies have developed such relations with their clients that the fees for these special services are negotiated and do not come under the usual services offered by the agency. Obviously the composition of the Review Board cannot be permanent. The main emphasis at this presentation is on the marketing communication approach and how it is to be worked out creatively and in terms of the media, in relation to the budget. By there were advertising agencies in India with a total turnover of Rs 3. This means that if an advertiser agrees to spend Rs 1 crore on newspapers and magazines and TV, the agency would earn Rs 15 lakh. In the following chapters we shall discuss in greater detail the responsibilities and qualifications of the personnel involved in each of these departments. The general pattern of advertising agency remuneration, the 15 per cent commission from the media, in practice in also extended both to the expanding in-house and outside services which the agency buys on behalf of the client.