ADVERTISING AND SALES PROMOTION

MANAGEMENT
Prepared by Dr. S. ANEEL AMRUTHA RAJU, Head of MBA Dept, SJCET
(G3)

UNIT-2 (ASPM)
ORGANIZING FOR ADVERTISING
TYPES OF ADVERTISING ORGANIZATION

1. Organisation according to ‘Sub- function’

Advertising manager

Creative Advertising research Media

Copy Art layout

2. Organisation according to ‘Media’

Advertising manager

Print media Broadcast media Other

News paper Magazine Mail TV Radio Net Outdoor Transit

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3. Organisation according to ‘Product’

Advertising manager

Product A Product B Product C

Brand A Brand B

4. Organization according to ‘End user’

Chief executive

Advertising manager

Consumer market Industrial market Institutional market

5. Organization according to ‘Geography’

Chief executive

Advertising manager

South zone East zone West zone North zone

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 ADVERTISING AGENCIES

Many companies use advertising agencies to assist them in preparing , developing and executing
their promotional programs.

Advertising agency is service organization specialized in planning and execution the promotional
programs for clients.

Now a day they have been acquiring:

❖ Good interactive communication skills,

❖ Good public relation,
❖ Direct marketing and sales promotion skills, so that they can offer ever bit of
marketing communication services.

ROLE OF THE ADVERTISING AGENCY

Most of the firms use outside agencies because:

 They provide the services of highly skilled individuals like , artists , writers , media
analysis , researcher etc., who are specialized in their field,

 They also provide objective view point of the market and its business.

Some of well known advertising agency in India –

 Mudra ad agency,

 JWT India,

 Madison communication,

 Pradhy solutions,

 Brand buzz

 Eye catch ,

 My4 media hub

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 FUNCTIONS / SERVICES/ TYPES /
OF ADVERTISING AGENCIES
Advertising agencies can range size from one or two persons operations to large organization
with over 1000 employees.

1. FULL SERVICES AGENCIES

Full services agencies, which offer its clients a full range of marketing, communication &
promotion services, including:

❖ Planning , creating , producing advertisement

❖ Performing research
❖ Selecting media

2. ACCOUNT SERVICES AGENCY

 Account service or account management is the link between client and advertising
agency.
 Depending on the size & advertising budget of client , one or more than one account
executive serves as liaison( Mediator).
 He is responsible for understanding client’s advertisement & promotional needs and
interpreting them to agency panel.

3. MARKETING SERVICES

Advertising program will be successful when advertising agencies have sufficient information of
large audience

1. (a) Most full service agencies maintain a research department – whose function is to
gather, analysis & interpret information that will be useful in developing
advertisement programs.
Here research can be done in two ways:
1. Primary research 2.secondary research
(b) It also conducts research to know the advertising effectiveness.

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 2. Media department will analyse, select and contract for ‘space’ or ‘time’ in the
media that will be used to deliver advertisement manage.

 It tries to communicate right audience and to be cost effective

 Client has to decided on how much budget should spend on – newspaper, magazine ,
TV, radio , net etc.,

4. CREATIVE SERVICES

The creative service department is responsible for creation and execution of advertisements.

1) The individuals, who conceive the idea for the advertisement, write the headlines, sub
heads, and body copy (the words constitution the manager) is known as ‘Copy writers’.
2) While the copy writers are responsible for what the message says, ‘Art department’ is
responsible for how the add looks.
❖ For Print media, art director and graphic designer prepare layout.
❖ For TV commercials, the layout is known as “Story board’ a sequence of frames.

3) Writers and artists, generally work under the direction of the agencies creative
director, who oversees all the advertisements produced by the organization.

4) Production department – they make finished product.

5) Traffic department – coordinates all the phases of production of ads & see that
advertisement are completed on time & sending those ads to media within time.

5. MANAGEMENT AND FINANCE

An advertising agency must be managed and perform basic operating & administrating functions
such as : accounting , finance , & human resources .

The agency must manage its personnel carefully and get maximum productivity from them.

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 AGENCY - CLIENT RELATIONSHIP

Agency and client should maintain good relationship and that should be long – lasting
relationship.

WHY AGENCIES LOOSE CLIENTS

1. Poor performance: Client may dissatisfy with the agency performance.

2. Poor communication: Both sides (client & agency) may fail to maintain communication

to sustain their relationship.

3. Unrealistic demands by clients.

4. Personality conflicts: Both sides may have ego problems.

5. Change in personnel: Persons may change (transfer to other department/ move to other

company) result in communication gap.

6. Change in size of client/agency: If the size of agency /company increases, it may feel to

maintain relationship with a new or big client.

7. Changes in corporate /marketing strategies: Change in strategies causes the

company/client may feel to opt for new agency.

8. Change in policies: Both sides’ policies may change causes communication gap.

9. Declining sales of company.

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HOW AGENCIES GAIN CLIENTS

(1) Referrals: Many good agencies gain new clients as a result of referrals from existing clients,
media representatives, outside parties.

So they have to maintain good working relationship referrals.

(2) Solicitation: One of the more common ways to gain clients is through direct solicitation.

❖ Agency people seek out & establishes contact with new client.
❖ They are responsible for writing solicitation letters, making calls and following upon
leads.

(3) Presentation: The basic goal of an agency is to receive invitation from the client to make a
presentation.

It has to explain its experience, knowledge, capabilities, personnel, procedures etc.,

(4) Publicity: Agencies also seek business through public relation / publicity. They often
participate in civic and social groups and working with charitable organization to earn
respect in the community.

(5) Image & Reputation: Most effective way to gain clients is through reputation. They
conduct campaigns, entering into award competition & advertising themselves.

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 VISUAL LAYOUT
Layout may be defined as the arrangement of the various elements of advertising such as
illustration, text matter, product and name of the company. A good advertisement is a
combination of both copy and art.

A copywriter is responsible for the words, that is, the copy, while the art director is responsible
for the illustrations and the layout. The copywriter and the art director must therefore work
closely, where the former visualizes the advertisement, the latter brings the visualization into
reality.

The layout must be prepared separately from the copy and must indicate the kind of type to be
used, the amount of space to be apportioned, the border to be used and the exact position of the
illustration, if any, to be included. The layout is a plan of an advertisement and makes the work
of the printer easier.

The first step in the preparation of the layout would be to indicate on a piece of paper the exact
size of the advertisement because the slightest mistake in size may necessitate decomposition.
Instructions should be carefully given and should be as complete as possible.

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 ART WORK
Advertising art work can be defined as the graphic design used to advertise and promote.
Advertising art can be in the form of photography, digital development, illustrations, and
more.

Illustrative work prepared for reproduction that may consist of drawings, hand lettering,
paintings, photographs anything that is not typeset as only text. The final artwork (called
camera-ready artwork) usually includes instructions for color registration and color matching.

The ultimate goal of advertising art is to persuade consumers and/ or convey a message. With
this in mind, advertising art is a form of visual rhetoric. Visual rhetoric refers to the framework
by which visual images are used to communicate a message, idea, or point of view.

The following image is an example of advertising art.

BMW effectively utilizes advertising art.