Pros and Cons Advertising Agency

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Contents

  • Introduction
  • The issue with the Idea
  • Solution
  • Recommendation
  • Rational to Recommendation
  • Reference
  • Appendix

Introduction

“I’ll run for you” is a support that Darla Domke strives to give to her family , friends and neighbors by making orders for them. Darla has been living in the same area for years, and as a result, she is familiar with the shop owners, the service providers and the shortest routes anywhere in the neighbourhood. The business model for the company is that the target market will employ Darla to conduct routine activities such as dry cleaning and grocery shopping or one-off shopping chores, such as getting shoes or watches repaired or dropping off library books. The idea is that if Darla performs these tasks, these people will be able to relax and spend more time with friends and family, and enjoy other leisure activities.

The Issue with the Idea

The main issue encountered for implementing this idea was to generate awareness about the service to the target people so that the concept could be appropriately applied. Besides this, reaching out to the target customers efficiently was also a significant issue faced by Darla and her errand service.

Solution

To tackle this problem, proper communication with the target market was essential and to actualise the same Darla had to spend a significant amount of money on advertising. Besides, she had to take a call whether she would go for in-house advertising or hire an agency to do the job.

The target market for “I’ll Run for You” comprised of a pretty large population in the area and mainly included the people who either led retired or busy lives. The older adults who were too old for errands, and the professionals who had to travel because of work, had no time to do the chores. Before deciding on the type of advertising that Darla should have considered, it is essential to analyse the pro and cons of both an in-house and advertising agency services.

In an in-house agency, the cost is relatively low, and with improved technology actions ranging from direct mails to the development of the website, can be successfully executed by a marketer. Consistency and transparency can also be easily maintained by an in-house agency (Powers, 2012). The most significant benefit of an in-house agency is that it has total control over the provider’s time, quality and activity. Most of the organisations try to maintain the core operation in-house, which would differentiate the business (Traxler, 2012). However the in-house agency has a relatively low buying power of media, there are hardly any current views, lacks specialised knowledge, and also the stress related to work is more (Smith & Taylor, 2004, p.168). In other words, in-house agencies are less experienced, less flexible and less objective (Belch, Belch & Purani, 2010, p. 102).

In the case of the advertising agency, the most significant benefit is the expert knowledge that the agency brings on board. The agencies work in groups, and so they are likely to pick the most innovative idea and act as per the requirements of the clients. Moreover, as the crucial part of advertising is handled by the agency, a lot of significant time gets saved for the organisation to involve in other related activities (Sharma, 2011). However, the advertising agency is a costly affair as they usually charge a high price for the variety of services, and sometimes the clients end up paying for pretty trivial reasons. The money involved is relatively higher as compared to an in-house agency. Besides this, less involvement with and understanding of overall marketing goals of the client, and longer response time taken by the external agencies also act as dampening factors of hiring an outside agency.

Recommendation 

Analysing the pros and cons of both in-house and outside advertising agency, it is recommended to “I’ll Work for you” to hire an outside agency which would help it in generating awareness among the target customers. Although outside advertising agency has many disadvantages, since the business is new, it will be beneficial for the service company to create awareness not just in the initial period of the market but also in the long run.

Rational to Recommendation 

An advertising agency can be classified by their range of services which they offer, geographic scope and type of business that they handle. The various types of agencies available include local agencies, regional or national agencies, international agencies, full-service agencies and specialised service agencies. From the information available from the case, it has been learnt that Dara had taken loans amounting to £10,000 for advertising expenses and it is assumed that it is the only amount available to her to spend either for an in-house agency or outside agency. In this case, it would also be necessary for Dara to vote for regional or national agencies. Local advertising agency prepares and also places the ads in a limited geographic area in a given country (Govoni, 2004, p.183). National or regional agencies either participate in 4As or WSAAA, which will benefit “I will run for you” in the long run. The service company should make use of an outside agency because it will provide him with the services of highly skilled individuals who are specialised in their fields. It will give the firm an objective viewpoint of the target market along with its business, which will not be subject to any internal policies of the company, limitation or biasness.

In the process of finding the most appropriate advertising agency Dara should consider some of the following criteria during selection:

Industry experience: Dara will choose an agency with experience working in the relevant industry (Clow, 2007, p. 177). Dara will benefit from the experience that they have ultimately acquired by working with other players in the same industry.

The Capability of the Agency: Dara must evaluate the ability of the agencies shortlisted, and it can be done by assessing the work samples of those agencies. Suppose possible Dara should visit every shortlisted agency and analyse the facilities, the resources, staffs and other things which the agency offers.

Planning Techniques: Dara should ensure that the advertising agency chosen by her should know how to plan an advertising campaign successfully. The agency should be able to provide her with a useful timeline, consider the available alternative strategies and follow it up with a contingency plan (Kenv, 2011).

Dara plans to operate the service business, which is at the introductory stage and requires proper nurturing along with efficient communication so that the message which is aimed to be delivered is successfully sent across to the target market. To do this, Dara should choose an agency which has relevant experience in the same business with a minimum of about 3-4 years of experience. Since the agency will have an idea of how to conduct and plan the campaign in the same business area, it will be highly beneficial and time saving for the firm.

Besides, some of the critical services which Dara should consider in the process of evaluating the agency’s future performance include evaluation of its records of customer satisfaction for both current and past clients, and the ratings the agency have been receiving from its clients. The knowledge about the quality and efficiency of the agency will help Dara in deciding either to proceed with the selected agency or re-evaluate a few more options.

References;
  • Belch, G. E. Belch, M. A. & Purani, K., 2010. Adverb & Promotion. NY: Tata McGraw-Hill Education.
  • Clow, K. E., 2007. Integrated Advertising Promotion, And Marketing Communication, 3/E. South Asia: Pearson Education, India.
  • Govoni, N. A. P., 2004. Dictionary of Marketing Communications. USA: SAGE.
  • Ken, 2011. Criteria for Choosing the Right Advertising Agency. [Online]. Available at: < http://articles.pubarticles.com/criteria-for-choosing-the-right-advertising-agency-1330452439,706367.html> [Accessed 18 Feb.13]
  • Powers, N., 2012. The Pros and Cons of In-House Marketing Mix Analysis. [Online]. Available at: < http://www.marketingprofs.com/articles/2012/7736/the-pros-and-cons-of-in-house-marketing-mix-analysis> [Accessed 13 Feb. 13]
  • Sharma, N. R., 2011. Advertising Agency – Pros and Cons. [Online]. Available at: < http://ezinearticles.com/?Advertising-Agency—Pros-and-Cons&id=5849547> [Accessed 13 Feb. 13]
  • Smith, P. R. & Taylor, J., 2004. Marketing Communications: An Integrated Approach. UK: Kogan Page Publishers.
  • Traxler, D., 2012. Outsourcing v. Hiring In-house: Pros and Cons. [Online]. Available at: < http://www.practicalecommerce.com/articles/3705-Outsourcing-v-Hiring-In-house-Pros-and-Cons> [Accessed 13 Feb. 13]
Appendix;

     Choice Options                                     Anticipated Consequences

Pros and Cons Advertising Agency

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