Advertising Process.docx

STUDYTONTADVERTISINGTPROCESS:TANTAGENCY'STPRESPECTIVE

DECLARATION

ITherebyTdeclareTthatTtheTdissertationTentitledT―STUDYTOFTADVERTISING PROCESS:TANTAGENCY'STPRESPECTIVETisTtheToutcomeTofTmy research..work.No partTofTthisTresearchThasTbeenTsubmittedTearlierTtoTanyTInstitutionTor UniversityTforTtheTawardTofTanyTotherTDiplomaTorTanyTotherTDegree,TnorTtheTdata T hasTbeenTderivedTfromTanyTthesisTofTanyTUniversity.T TheTsourcesTofTmaterial,TdataTusedTinTthisTstudyThaveTbeenTdulyTacknowledged.T

ACKNOWLEDGEMENTS

WeTwantTtoTacknowledgeTsomeTofTtheTpeopleTwhoThaveTbeenTaTpartTofTmakingT thisTthesisTpossibleTandTsupportedTusTalongTthisTproject.TFirstly,TweTwouldTlikeTtoT thankTourTtutorT__________whoThasTprovidedTvaluableTmentoringTduringTtheT writingTprocess.TSecondly,TweTwantTtoTacknowledgeTtheTmembersTtakingTpartTinT ourTinterviews,TenablingTusTtoTgatherTempiricalTdataTforTourTresearch.TFinally,Twe TwantTtoTshowTgratitudeTforTourToppositionTgroupTandTtheTrestTofTtheTseminarT groupTforTprovidingTvaluableTfeedbackTthroughoutTtheTprocess.

TableTofTContents

1. Introduction 1.1 Background 1.2 ProblemTDiscussion 1.3 Purpose 1.4 ResearchTQuestion

2. FrameTofTReference 2.1 IntroductionTtoTadvertising 2.2 TypesTofTadvertising

2.3 2.4 2.5 2.6 2.7 2.8 2.9

TheTfeaturesT&TsignificanceTofTadvertising RoleTofTadvertisingTinTBusiness Advertiser AdvertisingTagency RoleTofTadvertisingTagency FunctionsTofTanTadvertisingTagency RelationshipTbetweenTadvertiserT&TadvertisingTagency

3.0 ReviewTofTLiteratureT

ChapterT1 Introduction 1.1 BackgroundT AccordingTtheTAdvertisingTAge'sT2002TAgencyTReport,TtheTworld'sTsixTlargestTadver tisingTagenciesTaccountedTforToverT65TpercentTofT$39.28TbillionTspentTonTadvertisin gTworldwideTinT2001.TButTtheTadvertisingTindustryThasTsufferedTduringTtheTfirstTyea rsTofTtheT2000s.TTheTeconomyTdeclineTpriorTtoTandTexacerbatedTbyTtheTterroristTatt acksTofTSeptemberT11,T2001ThasTbeenTsustainedTbyTtheTongoingTconflictTwithTIraq. TAsTanTindicatorTofTtheTsoftenedTdemandTforTadvertisingTservices,TadvertisingTagenc yTemploymentTfellTtoTjustToverT180,000TinTDecemberT2002,TdownTfromTanTaverage TemploymentTofT194,400TinT2001TandT182,400TinT2002,TrepresentingTtheTlargestTde clineTsinceT1991.T AdvertisingTagenciesTareTprimarilyTresponsibleTforTtwoTfunctions.TTheTfirstTisTtheTpr oductionTofTadvertisingTmaterialsTinTtheTformTofTwrittenTcopy,Tart,Tgraphics,Taudio,T andTvideo.TTheTsecondTisTtheTstrategicTplacementTofTtheTfinishedTcreativeTproductTi nTvariousTmediaToutlets,TsuchTasTperiodicals,Tnewspapers,Tradio,TandTtelevision.T TheTlargerTagenciesTareTmoreTfrequentlyTmentionedTinTtheTmediaTandTinTtradeTpubli cations,TtheTindustryTisTactuallyTpredominatelyTcomprisedTofTsmallerTagencies,Tmany TwithTonlyToneTorTtwoTprincipals.TIndustryTobserversTcreditTlowerToverhead,Tdiversif iedTservices,TwillingnessTtoTaccommodateTchange,TandTanTentrepreneurialTattitudeTfor TtheTsuccessTofTsmaller,TboutiqueTagencies.T AsTmanyTclientsThaveTbegunTtoTfocusTonTaTvarietyTofTformsTofTmarketingTcommun ications,TadvertisingTagenciesThaveThadTtoTlookTbeyondTconventionalTmediaTbasedTa dvertising.TAdvertisingTbudgetsTreflectTthisTshift,TwithTadditionalTdollarsTbeingTearma rkedTforTpoint-ofsaleTpromotions,TpublicTrelations,TandTaTmajorTentryTintoTtheTmediaTmix— theTInternet.TSomeTindustryTleadersThaveTprojectedTthatTadvertisingTagenciesTwillTne edTtoTaugmentTtheirTprimaryTlineTofTworkTandTchangeTtheirTlongstandingTcompensat ionTsystemTbasedTonTcommissions.TRealizingTtheTneedTforT"integratedTmarketingTser vices,"TmanyTagenciesThaveTrespondedTbyTofferingTpublicTrelations,TdirectTmail,Tpro motional,TandTInternetTservices.

1.2 TProblemTDiscussion TheTGovernmentTpoliciesTofTliberalisations,Tprivatisations,Tdelicensing,TcoupledTwithTglobalisation,TrapidTchangesTinTtechnologyTandTexplosionTofT InformationTTechnologyThaveTdrasticallyTchangedTtheTmarketingTscenarioTinTtheTcoun try.TJointsTventures,Tacquisition,TmergersTetc.TareTnowThereTtoTstay.TTheTentryTofT MNC‘sTinTIndianTmarketThasTbroughtTinTconceptualTchangesTinTtheTobjectivesTofTa dvertising.TWithTgrowingTpublicTawareness,TformulationTofTconsumerTprotectionTactT( 1986),TvalueTforTmoneyT(VFM)TdemandTbyTconsumers,TgrowingTcompetitionTetc.Tha

veTnecessarilyTchangedTtheToutlookTofTAdvertisingTbusiness.TFurtherTtheT―EthicalT MarketingTconceptTgatheringTmomentum,TtheTtaskTofTanTadvertiserThasTbecomeTvery Tcomplex.T ItTis,Tthus,TveryTvitalTtoTstudyTtheTIndianTmarketingTenvironment,TtheTimplicationTo fTchangesTthatThaveTtakenTplace,TtoTstudyTtheTclientTrelationship,TandTtheTfutureTpe rspectiveTofTadvertisingTIndustry.T TheTproblemsTfacedTbyTtheTadvertisingTagenciesTareTnotTfew.TInTviewTofTtheTgloba lisations,Tliberalisations,TgrowthTofTinformationTtechnologyTetc,TtheTfuturisticTlineTofT approachTneedsTtoTbeTdefined.TTheTentryTofTinternationalTcompaniesTinTIndianTadver tisingTscenarioThaveTfurtherTcomplicatedTtheTmatters.TTheTincreasingTawarenessTofTth eTconsumerTofTtheirTrightsThasTdrasticallyTchangedTtheTstrategiesTadopted.TTheTgove rnmentTregulationsTe.g.TConsumerTprotectionTactT1986ThasTledTtheTagenciesTtoTrethi nkTtheTadTprocess. ATcriticalTanalysisTisTinevitableTtoTmitigateTtheTaboveTsaidTproblem.

1.3 Purpose TheTpurposeTofTthisTdissertationTisTtoTstudyTtheTdevelopmentTofTadvertisingTinTIndi a,TtoTunderstandTtheTpresentTstatusTofTadvertisingTagenciesTinTIndiaTandTtheTproble msTfacedTbyTthem.TToTstudyTagency’sToperations,TmannerTofTfunctioning,TtheirTups wingTandTtheirTdownfallTandTlastTbutTnotTtheTleastTtheirTpositionTinTtheTworldTofT advertisingTonTtheTbasisTofTtheTcontributionTtoTtheTadTworldTandTsocietyTatTlarge. ThisTdissertationTalsoTaimsTatTunderstandingTtheTfunctioningTofTadvertising,TitsTimpo rtanceTinTmodernTtimes,TdifferentTtypesTandTtheTrelationshipTbetweenTanTadvertiserT andTanTadvertisingTagency.

1.4 TResearchTQuestion WhatTareTtheTimplicationTofTchangesTinTtheTfieldTofTadvertisingTandTitsTimpactTonT theTrelationshipTbetweenTtheTadvertiserTandTtheTadvertisingTagency?

T

ChapterT2 FrameTofTReference 2.1TIntroductionTtoTadvertising AdvertisingTbeingToneTofTtheTfunctionsTofTmarketingTplaysTanTimportantTroleTinTma rketingTprocessTandTtoTachieveTmarketingTobjectives.TItTisTbasicallyTaTformTofTcom municationTwhichTpersuadesTaudience/customersTtoTmakeTpurchaseTorTtakeTsomeTacti onTuponTtheTproductsTorTservicesTadvertised.TAdvertisingTbeingTaTvastTtopicTinTitsel fTmainlyTfocusesTonTanalyzingTconsumerTbehaviorT&TplanningTactivitiesTtoTgainTma ximumTexposureTandTprofits.TItTisTaTmediumTofTcommunicatingTanyTideaTorTservice sTtoTtheTmassesTinTanTattemptTtoTconvinceTthemTtoTmakeTaTpurchase.T TheTtermT‘advertising’TisTderivedTfromTtheTLatinTwordT‘advertere’TwhichTmeansT‘to Tturn’TorTgrabTattentionTtoTsomething.TEveryTaspectTandTattemptTofTadvertisingTseek sTcustomerTattentionTtoTfulfillTitsTgoals.TTheTmostTwidelyTacceptedTdefinitionTofTad vertisingTisTtheToneTwhichTisTgivenTbyTtheTAmericanTMarketingTAssociation:T"anyT paidTformTofTnonpersonalTpresentationTandTpromotionTofTgoods,TservicesTandTideasTbyTanTidentifiedTs ponsors"T(KazmiTandTBatra,T2008).TATsurveyTconductedTonTadvertisingTandTmarketi ngTstatesTthatTthereTisTnoTuniversallyTacceptedTdefinitionTofTadvertising.TAdvertising ThasTexperiencedTsomeTmajorTmilestonesTandThasTconstantlyThadTtoTadaptTandTchan geTtoTsuitTnewTmediumsTandTchangingTtastesTandTneedsTofTconsumers.TTheThistory TofTadvertisingTgoesTlongTbackTandTisTconnectedTtoThumankindTevolutionTandTitsTt echnicalTprogress.TInvestigationsTstateTthatTtheTfirstTstepsTinTadvertisingTwereTinTAn cientTEmpires.TSinceTthen,TadvertisingThasTbeenTaTcoreTaspectTandThasTcontinuedTto TrevolutionizeTaccordingTtoTtheTchangingTneeds.TTheTbiggestTimpactTonTadvertisingT cameTwithTtheTWorldTWideTWeb.TTheTinternetThasTrevolutionizedTadvertisingTinTthe TmostTastoundingTway.TNotTonlyThasTitTchangedTtheTwayTadsTareTbroadcast,TbutT it’sTchangedTtheTwayTconsumersTactTtowardsTthem. AdvertisingTisTaTbasicTandTimportantTaspectTinTaTcompany’sTmarketingTmix.TTheT variousTfactors,Tmeaning,TnatureTandTscope,ThistoricalTperspectiveTandTfunctions,Tgive sTaTviewTofTwhatTadvertisingTis.T TheTthreeTmainTpurposeTofTadvertisingTconsistsTof:   

CreatingTbrandTawarenessTandTincreaseTtheTuseTofTproductsTorTservices. TargetingTnewTcustomers GainingTmaximumTexposureTandTprofitsTbyThelpingTpotentialTcustomersTmake TaTchoiceTamongTcompetingTbrands.

AdvertisingTtendsTtoTfulfilTspecificTgoalsTandTobjectivesTforTeveryTserviceTorTproduc tTforTeveryTorganization.TItTisTaTmechanismTwhichTfulfilsTallTitsTmajorTpurposes.TH avingTanTinformativeTnature,TadvertisingTdealsTwithTtheTcognitiveTcontextTofTtheTtar getTaudienceTinTwhichTtheyTgraspTtheTinformationTandTchannelizeTitTaccordingTtoTth eirTownTcomprehension.T

Secondly,TadvertisingTdealsTwithTtheTemotionalTdimensionTofTtheTtargetTaudienceTby TprovidingTthemTtoTengageTinTaction.TAdvertisingTprovidesTconstantTremaindersTand TreinforcementsTtoTgenerateTdesiredTresults.TThisTisTeffectiveTinTtheTlongTrunTasTre maindersTandTreinforcementsTregister’sTinTtheTconsumer’sTmind,TbecomingTtheTbaseT onTwhichTtheyTshapeTtheirTfutureTdecisions.T

2.2TTypesTofTadvertising PrintTAdvertisingT–TNewspapers,TMagazines,TBrochures,TFliersT TheTprintTmediaThaveTalwaysTbeenTaTpopularTadvertisingTmedium.TAdvertisingTprod uctsTviaTnewspapersTorTmagazinesTisTaTcommonTpractice.TInTadditionTtoTthis,TtheTp rintTmediaTalsoToffersToptionsTlikeTpromotionalTbrochuresTandTfliersTforTadvertisingT purposes.TOftenTtheTnewspapersTandTtheTmagazinesTsellTtheTadvertisingTspaceTaccord ingTtoTtheTareaToccupiedTbyTtheTadvertisement,TtheTpositionTofTtheTadvertisementT(f rontTpage/middleTpage),TasTwellTasTtheTreadershipTofTtheTpublications.TForTinstance, TanTadvertisementTinTaTrelativelyTnewTandTlessTpopularTnewspaperTwouldTcostTfarTl essTthanTplacingTanTadvertisementTinTaTpopularTnewspaperTwithTaThighTreadership.T TheTpriceTofTprintTadsTalsoTdependsTonTtheTsupplementTinTwhichTtheyTappear,TforT exampleTanTadvertisementTinTtheTglossyTsupplementTcostsTwayThigherTthanTthatTinTt heTnewspaperTsupplementTwhichTusesTaTmediocreTqualityTpaper. OutdoorTAdvertisingT–TBillboards,TKiosks,TTradeshowsTandTEventsT OutdoorTadvertisingTisTalsoTaTveryTpopularTformTofTadvertising,TwhichTmakesTuseTo fTseveralTtoolsTandTtechniquesTtoTattractTtheTcustomer’sToutdoors.TTheTmostTcommo nTexamplesTofToutdoorTadvertisingTareTbillboards,Tkiosks,TandTalsoTseveralTeventsTa ndTtradeshowsTorganizedTbyTtheTcompany.TTheTbillboardTadvertisingTisTveryTpopular ThoweverThasTtoTbeTreallyTterseTandTcatchyTinTorderTtoTgrabTtheTattentionTofTtheT passersby.TTheTkiosksTnotTonlyTprovideTanTeasyToutletTforTtheTcompanyTproductsTbutTalso TmakeTforTanTeffectiveTadvertisingTtoolTtoTpromoteTtheTcompany’sTproducts.TOrgani zingTseveralTeventsTorTsponsoringTthemTmakesTforTanTexcellentTadvertisingTopportun ity.TTheTcompanyTcanTorganizeTtradeTfairs,TorTevenTexhibitionsTforTadvertisingTtheir Tproducts.TIfTnotTthis,TtheTcompanyTcanTorganizeTseveralTeventsTthatTareTcloselyTas sociatedTwithTtheirTfield.TForTinstance,TaTcompanyTthatTmanufacturesTsportsTutilitiesT canTsponsorTaTsportsTtournamentTtoTadvertiseTitsTproducts. BroadcastTadvertisingT–TTelevision,TRadioTandTtheTInternetT BroadcastTadvertisingTisTaTveryTpopularTadvertisingTmediumTthatTconstitutesTofTsever alTbranchesTlikeTtelevision,TradioTorTtheTInternet.TTelevisionTadvertisementsThaveTbee nTveryTpopularTeverTsinceTtheyThaveTbeenTintroduced.TTheTcostTofTtelevisionTadvert isingToftenTdependsTonTtheTdurationTofTtheTadvertisement,TtheTtimeTofTbroadcastT(pr imeTtime/peakTtime),TandTofTcourseTtheTpopularityTofTtheTtelevisionTchannelTonTwhi chTtheTadvertisementTisTgoingTtoTbeTbroadcasted.TTheTradioTmightThaveTlostTitsTch armTowingTtoTtheTnewTageTmediaThoweverTtheTradioTremainsTtoTbeTtheTchoiceTofT small-

scaleTadvertisers.TTheTradioTjinglesThaveTbeenTveryTpopularTadvertisingTmediaTandT haveTaTlargeTimpactTonTtheTaudience,TwhichTisTevidentTinTtheTfactTthatTmanyTpeop leTstillTrememberTandTenjoyTtheTpopularTradioTjingles. CovertTAdvertisingT AdvertisingTinTMoviesTCovertTadvertisingTisTaTuniqueTkindTofTadvertisingTinTwhich TaTproductTorTaTparticularTbrandTisTincorporatedTinTsomeTentertainmentTandTmediaT channelsTlikeTmovies,TtelevisionTshowsTorTevenTsports.TThereTisTnoTcommercialTinTt heTentertainmentTbutTtheTbrandTorTtheTproductTisTsubtlyT(orTsometimesTevidently)Ts howcasedTinTtheTentertainmentTshow.TSomeTofTtheTfamousTexamplesTforTthisTsortTo fTadvertisingThaveTtoTbeTtheTappearanceTofTbrandTNokiaTwhichTisTdisplayedTonTTo mTCruise’sTphoneTinTtheTmovieTMinorityTReport,TorTtheTuseTofTCadillacTcarsTinTth eTmovieTMatrixTReloaded. SurrogateTAdvertisingT AdvertisingTIndirectlyTSurrogateTadvertisingTisTprominentlyTseenTinTcasesTwhereTadve rtisingTaTparticularTproductTisTbannedTbyTlaw.TAdvertisementTforTproductsTlikeTcigar ettesTorTalcoholTwhichTareTinjuriousTtoTheathTareTprohibitedTbyTlawTinTseveralTcou ntriesTandThenceTtheseTcompaniesThaveTtoTcomeTupTwithTseveralTotherTproductsTtha tTmightThaveTtheTsameTbrandTnameTandTindirectlyTremindTpeopleTofTtheTcigarettesT orTbeerTbottlesTofTtheTsameTbrand.TCommonTexamplesTincludeTFostersTandTKingfish erTbeerTbrands,TwhichTareToftenTseenTtoTpromoteTtheirTbrandTwithTtheThelpTofTsurr ogateTadvertising. PublicTServiceTAdvertisingT AdvertisingTforTSocialTCausesTPublicTserviceTadvertisingTisTaTtechniqueTthatTmakesT useTofTadvertisingTasTanTeffectiveTcommunicationTmediumTtoTconveyTsociallyTreleva ntTmessagedTaboutTimportantTmattersTandTsocialTwelfareTcausesTlikeTAIDS,TenergyT conservation,TpoliticalTintegrity,Tdeforestation,Tilliteracy,TpovertyTandTsoTon.TDavidTO gilvyTwhoTisTconsideredTtoTbeToneTofTtheTpioneersTofTadvertisingTandTmarketingTc onceptsThadTreportedlyTencouragedTtheTuseTofTadvertisingTfieldTforTaTsocialTcause.T OgilvyTonceTsaid,T"AdvertisingTjustifiesTitsTexistenceTwhenTusedTinTtheTpublicTintere stTTitTisTmuchTtooTpowerfulTaTtoolTtoTuseTsolelyTforTcommercialTpurposes.".TTodayTp ublicTserviceTadvertisingThasTbeenTincreasinglyTusedTinTaTnoncommercialTfashionTinTseveralTcountriesTacrossTtheTworldTinTorderTtoTpromoteTvario usTsocialTcauses.TInTUSA,TtheTradioTandTtelevisionTstationsTareTgrantedTonTtheTbasi sTofTaTfixedTamountTofTPublicTserviceTadvertisementsTairedTbyTtheTchannel. CelebrityTAdvertisingT AlthoughTtheTaudienceTisTgettingTsmarterTandTsmarterTandTtheTmodernTdayTconsume rTgettingTimmuneTtoTtheTexaggeratedTclaimsTmadeTinTaTmajorityTofTadvertisements, TthereTexistTaTsectionTofTadvertisersTthatTstillTbankTuponTcelebritiesTandTtheirTpopul arityTforTadvertisingTtheirTproducts.TUsingTcelebritiesTforTadvertisingTinvolvesTsigning TupTcelebritiesTforTadvertisingTcampaigns,TwhichTconsistTofTallTsortsTofTadvertisingT including,TtelevisionTadsTorTevenTprintTadvertisements.

2.3TFeaturesT&TsignificanceTofTadvertising TheTfeaturesTofTadvertising: 1.TTheTfactTthatTitTisT‘aTpaidTform’TofTpresentationTemphasis’sTthatTadvertisingTspa ceTorTtimeTmustTbeTpurchased. 2.TItsT“nonTpersonal”TnatureTemphasis’sTtheTfactTthatTitTisTnotTaTdirectTorTpersonali zedTpresentationTtoToneTindividualTbutTtoTtheTmassesT 3.T“Presentation”TsignifiesTtheTformatTinTwhichTadvertisementTcommunicateT 4.T“PromotionT“indicatesTtheTobjectiveTofTadvertisingT 5.TIdentifiedTsponsorTrefersTtoTtheTidentificationTofTtheTbrandTorTtheTadvertiserTthat TisTcommunicatingTTodayTadvertisingThasTbecomeTanTintegralTpartTofTourTsocialTan dTeconomicTstructure.TAnTincreasingTnumberTofTcompaniesTareTspendingTmillionsTof TdollarsTonTadvertisingTinTIndiaTeveryTyear.

SignificanceTofTadvertising: InTeveryTwalkTofTbusinessTandTindustrialTactivities,TthereTisTaTthroatcutTcompetition,TthereforeTnoTbusinessTcanTsurviveTwithoutTadvertisement.TAdvertise mentTisTusefulTnotTonlyTforTtheTbusinessTenterprisesTbutTforTtheTcommunityTasTaT whole.TTheTeconomicTutilityTofTadvertisementTcanTbroadlyTbeTdividedTintoTfiveTcate gories: 1)          

BenefitsTtoTManufacturers: HelpsTinTCreationTofTdemandTforTnewTproductsT HelpsTinTStabilizingTtheTdemandTforTtheTproductT HelpsTinTincreasingTtheTdemandTforTexistingTproductsT HelpsTinTintroductionTofTnewTproductsT RetailTpriceTmaintenanceT IncreaseTinTprofitsT CreatesTaTbrandTimageTinTtheTmindsTofTconsumersT ReducesTtheTcostTofTproductionT HelpfulTinTestablishingTaTdirectTcontactTbetweenTmanufacturersTandTconsumers T HelpfulTinTgettingTefficient,TexperiencedTandTeffectiveTmiddlemen

2)TBenefitsTtoTMiddlemenT     

IncreasesTtheTrateTofTturnoverTofTstock.T ConvenientTinTsellingT StabilityTinTsalesTandTprofitsT ReputationTcreatedTisTsharedTbyTtheTwholesalersTandTtheTretailersTalike.T EnsuresTmoreTeconomicalTsellingT

 

IncreaseTinTsalesT IncreaseTinTgoodwill

3)TBenefitsTtoTConsumers:T          

ProvidesTknowledgeTofTnewTproductsT ConvenientTinTpurchasing,Ti.e.,TwhereTandTwhenTtoTbuyT ProvidesTopportunitiesTtoTcompareTtheTmeritsTandTdemeritsTofTvariousTsubstitu teTproductsT SavingTofTtimeTandTlabourT NoTpossibilityTofTcheatingTbyTsellersT ModernTadvertisementsTareThighlyTinformative IncreaseTinTtheTstandardTofTlivingT EliminationTofTmiddlemenT StressesTqualityTandTveryToftenTpricesTthatTformsTanTindirectTguaranteeTtoTth eTconsumers.T ProvidesTknowledgeTofTalternativeTusesTofTproducts.

4)TBenefitsTtoTSalesmen    

MakesTtheTintroductionTofTnewTproductsTeasyT ReducesTsalesTeffortsT EstablishTgoodTandTpermanentTcontactTwithTtheTcustomersT HelpsTinTweighingTtheTeffectivenessTofTadvertising.

5)TBenefitsTtoTCommunity       

CreatesTmoreTemploymentTopportunitiesT IncreasesTstandardTofTlivingT EncouragesThealthyTcompetitionT EncouragesTresearchTandTdevelopmentT HelpfulTinTindustrialTprogressTandTprosperityT EncouragesTartTandTdesigningT Educative

2.4TRoleTofTadvertisingTisTbusiness SustainableTdevelopmentTisTmeetingTtheTneedsTofTtheTpresentTwithoutTcompromising TtheTabilityTofTfutureTgenerationsTtoTmeetTtheirTownTneeds.TWhileTthisTisTtheTclassi c,Tdefinition,TitThasTprovedThardTtoToperationalise,TandTdoesTnotTcommunicateTwellT toTtheTmanTinTtheTstreet.TPerhapsTmoreTdownTtoTearth,TandTmoreTaspirationalTdefin itionTisTthatTusedTbyTtheTUnitedTKingdomTGovernment:TsustainableTdevelopmentTisT aboutTensuringTaTbetterTqualityTofTlifeTforTeveryone,TnowTandTforTgenerationsTtoTc ome.TTheTfocusTonTimprovingTqualityTofTlifeTisTbecomingTmoreTwidelyTacceptedTb yTgovernments,Tcompanies,TcivilTsocietyTorganisationsTandTothers,TandTincludesTtheT conceptsTofTeconomicTdevelopment,TsocialTresponsibilityTandTenvironmentalTprotection .TIfTsustainableTdevelopmentTisTaboutTimprovingTqualityTofTlifeTforTeveryone,TnowT

andTforTgenerationsTtoTcome,TthenTadvertisingTcanTcontributeTtoTsustainableTdevelop mentTbothTthroughTwhatTadvertisingTdoes,TandTtheTwayTthatTitTdoesTit.

AdvertisingThelpsTconsumersTfacilitateTconsumerTchoice.TWorldTBusinessTCouncilTfor TSustainableTDevelopmentT(WBCSD)TlistedTsevenTkeysTtoTsuccessTneededTforTmarke tsTtoTmoveTinTtheTdirectionTofTsustainability.TTheTsevenTkeysTtoTsuccessT– TsustainabilityTthroughTtheTmarket:T 1.Tinnovate 2.TpracticeTeco-efficiencyT 3.TmoveTfromTstakeholderTdialoguesTtoTpartnershipsTforTprogress 4.TprovideTandTinformTconsumerTchoice 5.TimproveTmarketTframeworkTconditions 6.TestablishTtheTworthTofTEarth 7.TmakeTtheTmarketsTworkTforTeveryone Clearly,TadvertisingThasTaTvitalTroleTinTkeyT1T–ThelpingTinnovation,TandTkeyT4T– TprovidingTandTinformingTconsumerTchoice.TByTcommunicatingTmessagesTtoTaTwide TrangeTofTaudiencesTaboutTproducts,Tservices,TconsumerTbehaviour,Tcompanies,Tsocial Tprogrammers,TgovernmentTandTtheTprioritiesTandTsoTon,TadvertisingTcanThelpTimpro veTqualityTofTlife.TTheseTareTpositive,TbusinessTbuilding,TopportunityTareasTforTadver tising,TandTincludes:T PromotingTproductsTandTservicesTthatTcanTreallyTimproveTqualityTofTlifeT– TsuchTasThealthTproductsTandTservices.TThisTareaTisTparticularlyTrelevantTinTdevelopi ngTeconomies,TwhereTproductTcampaignsToftenTincludeThealthTeducationTandTawarene ssTraising ProvidingTsocialTorTenvironmentalTmessages,TthatTwhetherTasTpartTofTcorporateTorTp ublicTserviceTcampaignsT– TsuchTasTtheTUnitedTKingdomTAreTYouTDoingTyourTBit?Tcampaign,TwhichThasTfoc usedTonTenergyTsaving PromotingTproductsTwhichThaveTparticularTenvironmentalTorTsocialTbenefits PromotingTmoreTsustainableTuseTofTexistingTproductsTTsuchTasTtheTWashTRightTcampaignTtoTpromoteTmoreTefficientTuseTofTdetergents PromotingTsustainabilityTattributesT(environmental,TsocialTand/orTeconomic)TofTcompa nies.

2.5TAdvertiser InTsimpleTwords,TanTindividual,TassociationTorTorganizationTthatTputsTinTadvertiseme ntTinTrequestTtoTtargetTcustomersTisTcalledTanTadvertiser.TTheTadvertiserTisTtheTcore

TestablishmentTinTtheTfieldTofTadvertisingTmanagementTandTtheTtotalTexpenditureTby TallTtheTadvertisersTinTtheTcountryTprovideTtheTbasisTforTdeterminingTtheTsizeTofTth eTadvertisingTagency.TAdvertisersTcanTbeTclassifiedTasTlargeTorTsmallTonTtheTbasisT ofTtheTadvertisingTbudgets,TmediumsTetc.TAdvertisersTmayTagainTbeTclassifiedTonTth eTbasisTofTgoodT&TservicesTtheyTproduceTandTtheTmarketsTtheyTserve.T TheyTcanTbeTdividedTintoTthreeTcategories:   

ConsumerTadvertisers IndustrialTadvertisersT RetailTadvertisers

ConsumerTadvertisersT–TThoseTwhoTmanufactureTconsumableTgoodsT(durableTorTnondurable)TandTservicesTareTclassifiedTasTconsumerTadvertisers.TGenerallyTtheTmediums TusedTforTadvertisingTareTradio,TtelevisionTandTconsumerTgeneralTmagazines. IndustrialTadvertisersT– TManufacturersTpredominantlyTmanufacturingTproductsTforTindustrialTmarketsTisTknow nTasTindustrialTadvertisers.TTheTmediumsTusedTforTadvertisingTareTtradeTmagazines,T journals,TbusinessTpapers,TdirectTmailsTandTtradeTshows. RetailTadvertisersT–TRetailTadvertisersTadvertiseTlocallyTforTstoreTpatronage.T AllTadvertisersTuseTsomeTformTofTadvertisingTmedia.TSmallTadvertisers,TdueTtoTtheir TbudgetTlimitations,TcontactTtheTmediaTorTuseTtheTmediumTofTadvertisingTdirectly,Tb utTwhereTsignificantTmediaTexpendituresTareTinvolved,TtheTadvertiserTusesTtheTservic esTofTanTadvertisingTagency.

2.6TAdvertisingTAgency AnTadvertisingTagency,ToftenTreferredTtoTasTaTcreativeTagency,TisTaTbusinessTdevote dTtoTcreating,Tplanning,TandThandlingTadvertisingTandTsometimesTotherTformsTofTpro motionTandTmarketingTforTitsTclients.TAllTtheTcreativeTandTmediaTdecisionsTbetween TtheTadvertiserTandTtheTmediaTareTtakenTbyTtheTadvertisingTagency.TItTalsoToftenTs uppliesTsupportiveTmarketTresearchTandTisTevenTinvolvedTinTtheTtotalTmarketingTplan .TInTsomeTadvertiseragencyTrelationships,TtheTagencyTactsTquiteTautonomouslyTinTitsTareaTofTexpertise,Tw hereasTinTothers,TtheTadvertiserTremainsTinvolvedTinTtheTcreativeTandTmediaTdecision s,TasTtheTcampaignTprogresses.TInTtheTbeginning,TtheTagenciesTwereTserviceTagencies TandTofferedTnoTcreativeThelpTtoTadvertise.TTheirTmainTfunctionTwasTtoTselectTtheT mediaTforTtheTadvertiser.TTheTagenciesTgrew,TinTsizeTandTinfluenceTthroughTtheTyea rsTasTtheyTdemonstratedTanTabilityTtoTcreateTeffectiveTadvertising,TbecauseTtheyToffe redTaTnumberTofTservicesTinTcreativeTfieldTtoTtheirTadvertisers.T AlthoughTtheTnatureTofTanTadvertisingTagencyThasTchangedTconsiderably,TtheTmethod TofTcompensationTremainsTtheTsame,Ti.e.,TaTfixedTpercentageTofTadvertisingTbilling,T whichTtheyTreceiveTfromTtheTmediaTowners,TtheTpercentageTisT15TperTcentTonTbilli ngTbutTitTcanTbeTincreasedTifTextraTservicesTareTprovidedTbyTtheTagency.T ATmodernTadvertisingTagencyTemploysTthreeTdifferentTtypesTofTpeople,TinTadditionTt oTthoseThandlingTadministration.TTheTfirstTgroupTisT'creativeTservicesTgroup'TandTinc ludesTcopywriter,Tartists,TandTpeopleTconcernedTwithTadvertisingTproduction.TTheTmai

nTfunctionTofTthisTgroupTisTtoTdevelopTtheTadvertisingTcampaign,TprepareTtheTtheme sTandTcreateTtheTactualTadvertisement.TTheTsecondTgroupTisT'marketTservicesTgroup' TwhichTisTresponsibleTforTmediaTandTmarketTresearchTandTcontainsTtechnicalTspecial ists.TTheTthirdTgroupTis'TclientTservicesTgroup'TincludingTaccountTsupervisor.TThisTgr oupTisTresponsibleTforTtheTcontractTwithTtheTcustomerTandTsettleTtheTdealTforTtheTa gency.TAnTagencyTthatTprovidesTallTthoseTservicesTmayTbeTcalledTasTfullTserviceTag ency.TInTrecentTyears,TanTalternativeTofTfullTserviceTagencyThasTbeenTdevelopedTinT smallerTspecialisedTgroupTcarryingTonlyTspecialisedTservicesTinTcreativeTfield.

2.7TRoleTofTadvertisingTagency    

2.8

CreatingTanTadvertiseTonTtheTbasisTofTinformationTgatheredTaboutTproduct DoingTresearchTonTtheTcompanyTandTtheTproductTandTreactionsTofTtheTcusto mers. PlanningTforTtypeTofTmediaTtoTbeTused,TwhenTandTwhereTtoTbeTused,TandTf orThowTmuchTtimeTtoTbeTused. TakingTtheTfeedbacksTfromTtheTclientsTasTwellTasTtheTcustomersTandTthenTde cidingTtheTfurtherTlineTofTaction

TheTfunctionsTofTanTadvertisingTagency

TheTadvertisingTagencyTperformsTallTtheTmanagerialTfunctions.TSomeTofTtheseTare planning,TcreationTandTexecution,Tcoordination,Taccounting,Tmedia,TresearchTandTinternalTcontrol. Planning:TAllTtheTcampaignsTareTplannedTbyTtheTadvertisingTagencies.TThe managementTdelegatesTtheTresponsibilityTofTadvertisingTplanningTandTexecutionTtoTth eTagency.TTheTadvertisingTagencyTmustThaveTaTfairTknowledgeTofTtheTfirm’sTprodu cts,TitsThistory,TtheTpresentTmarketTconditions,TdistributionTmethods,TpriceTlevelTandT otherTfactors.TPlanningTiaTanTimportantTfunctionTofTanTadvertisingTcampaign. CreationTandTExecution:TCreationTofTcontent,Tlayout,TstructureTandTmechanismTare TpartTofTcreationTandTexecution. Co-Ordination:TTheTadvertisingTagencyTco-ordinatesTseveralTactivities.TItToften worksTwithTtheTclient’sTsalesTforceTandTdistributionTnetworkTtoTensureTtheTlongrunTsuccessTofTtheTadvertisingTprogramme.TTheTcombinedTeffortsTofTsalesTpersons,T distributorsTandTretailersTensureTmaximumTsales.TIdeas,Tmedia,TcopyTandTdecisionsTa reTco-ordinatedTproperlyTtoTprojectTandTimplementTtheTadvertisingTprogramme. Accounting:TTheTadvertisingTagencyTmaintainsTproperTaccountsTinTcooperationTwithTtheTclient.TTheTaccountTexecutivesTseeTtoTitTthatTtheTagencyTkeepsTt oTtheTstatedTplan.TTheTaccountantTisTinTchargeTofTtheTadministrationTofTtheTadverti sing programmeTonTtheTagencyTside.TATmisunderstandingTarisingTbetweenTtheTagency andTtheTclientTisTeliminatedTbyTtheTaccountant.TTheTamountTofTfeesTreceivedTfrom

theTclientTandTtheTpaymentTofTtaxes,TbillsTandTotherTchargesTareTaccountedTforTby theTaccountant. Media:TTheTadvertisingTagencyTselectsTtheTmediaTorTaTsetTofTsuitableTmediaTforTth eTclientTtoTreachTtheTrightTtypeTofTaudienceTwhichTisTanTimportantTfactorTinTmedia Tselection.TTheTrates,Tcirculation,Tpopulation,Taudience,TincomeTandTotherTimportantT informationTareTcollectedTforTtheTpurpose.TItThasTtoTseeTtoTthatTtheTmediaTplanTisT carriedToutTproperlyTwhichTisTdevisedTtoTimplementTtheTcampaign’sTcommunicationT objectives.TTheTmediaTexpertsTknowTallTaboutTtheTmediaTandTtheirTcoverage.TTheyT prepareTtheTscheduleTofTadvertising,Tpublication,TdataTonTprintingTandTtheTtimeTavail ableTfromTtelevisionTandTradio. Research:TResearchTisTaTkeyTfunctionTinTanTadvertisingTcampaign.TTheTdecisionsTo nTcreativityTandTmediaTselectionTareTtakenTonTtheTfindingsTuncoveredTforTresearch.T ResearchTmakesTeveryTdecisionTsystematicTandTlogical,TbasedTasTitTisTonTfactsTand Tfigures. 2.9TRelationshipTBetweenTAdvertiserT&TAgency TheTadvertiseradvertisingTagencyTrelationship,TasTaTbusinessTrelationship,TisTanTinstrumentalTrelatio nshipTwithTanTobjectiveTofTdevelopingTandTplacingTadvertisingTthatTachievesTsomeTs alesTorTcommunicationsTobjective.TWhenTaTclientTemploysTanTadvertisingTagencyTto TassistTinTundertakingTpromotionalTactivities,TaTnumberTofTfactorsTareTinvolvedTtoTe nsureTthatTtheTagency– clientTrelationshipTrunsTsmoothly.TSimilarTtoTaTpersonalTrelationship,TtheTclientagencyTrelationshipTisTaTtwowayTstreet.TBothTsidesTgiveTandTtakeTfromToneTanother,TbutTitTisTthroughTthisTexch angeTthatTtheirTsharedTgoalTofTexecutingTsuccessfulTcampaignsTcanTbeTachieved. DuringTtheTpastTfewTyearsTmostTcommunicationsTagenciesThaveTexperiencedTmassive TchangesTinTtheTservicesTtheyToffer,TtheTtalentTandTcapabilitiesTtheyTneedTtoTcompe te,TandTtheTtermsTandTdurationTofTtheirTclientTrelationships. TheTclientagencyTrelationshipTisTdifferentTthanTitTusedTtoTbe.TClientsTexpectTandTwantTagencie sTtoTdeliverTservicesTdifferently,TandTagenciesTareTworkingTwithTclientsTinTaTveryTd ifferentTmannerTfromTyearsTago.TUnderstandingTtheTmeritTofTdevelopingTandTmaintai ningTaTrelationshipTisTonlyTtheTfirstTstepTinTasTitThasTeffectsTonTadvertisingTproduc tion.THowever,TasTtheTrelationshipTdevelopsTthereTcanTbeTchangesTinTattitudesTtowar dTtheTagencyTclientTrelationship.TJustTasTadvertisingThasTlong-term,TbrandbuildingTbenefits,TtheTtimeTandTcostTspentTbyTadvertiserTandTagencyTinTdevelopingT aTrelationshipTbenefitsTcommunicationTandTunderstandingToverTtime,TandTultimatelyTt heTdevelopmentTofTtheTadvertisingTproduct.T AlthoughTitTisTdifficultTtoTdirectlyTassessTtheTinvestmentTclientsTmakeTinTadvertising TbecauseTofTtheTlargelyTintangibleTnatureTofTadvertising,TaTcaseTmustTbeTmadeTforT investmentTinTtheTadvertiseradvertisingTagencyTrelationship.TWhileTsalesTincreasesTareTaTdirectTshorttermToutcomeTofTadvertising,TitTisTmoreTdifficultTtoTgaugeTtheTlong-

termTinfluenceTofTtheTadvertisingTitself,TorTtheTbenefitsTofTusingTaTparticularTagency .T AsTadvertisingTrecommendationsTareTreviewedTandTapproved,Tmodified,TorTrejectedTb yTtheTclient,TandTtheTfinallyTacceptedTplansTareTsubsequentlyTimplemented,TaTcloseT workingTrelationshipTbetweenTclientTandTagencyTisTgenerallyTrequired.TDifferencesTin TagencyTandTclientTperceptionsTofTeachTother’sTexpectationsTmayThinderTtheirTrelatio nship. RelationshipsTareTterminatedTprimarilyTbecauseToneTofTtheTrelationshipTmembersTexpr essesTaTdissatisfactionTwithTtheTrelationship.TInTtheTadvertisingTmarket,TitTisTtheTadv ertiserTwhoTtypicallyTusesTtheTpowerTtoTterminateTaTrelationship.TAdvertisingTagenci esTworkTinTanTexceptionallyTfocusedTandTunpredictableTcondition.TDueTtoTtheTdigital TevolutionTandTfragmentationTofTmediaTconsumersThaveTbecomeTsophisticatedTandTd emandingTandTeverTharderTtoTreach.TItTisTnotTsurprisingTthatTwithinTthisTcomplexTl andscapeTagenciesTareTfindingTitTchallengingTtoTmanageTtheirTrelationshipsTwithTclie nts. TheTagency-clientTlifecycleTtheoryTisTaTprocessTorientedTapproach,TwhichTemphasizesTthatTcooperationTofT theTpartiesTandTdevelopmentTofTrelationshipsTareTaffectedTbyTnumerousTfactors.TInTa dditionTtoTobjectiveTcriteria,TaTnumberTofTsubjectiveTfactors,TsuchTasTtheTchangeTof TtheTcustomer ́sTperceptionTtoTrelationships,TcanTcauseTsignificantTchangesTinTtheTpro cessTofTcooperation.TToThaveTaTgoodTrelationshipTbetweenTclientTandTagenciesTisTv eryTimportant,TsoTthatTpromotionalTcampaignsTcanToperateTsmoothly.TEndTofTaTrelati onshipTmeansTconsiderableTtime,TmoneyTandTenergyTcosts.TATnewTcampaignTshould TbeTcreated,TandTitTisTtime-consumingTtoTfindTaTnewTagencyTandTbuildTtrust. ThisTpaperTanalysesThowTaTrelationshipToperates,ThowTproblemsTariseTwithinTtheTrel ationship,TandThowTtheyTmayTbeTpreventedTandTresolved.TATsurveyTstudyTwasTdone TtoTinvestigateTtheTchangingTdynamicsTofTtheTclientTagencyTrelationship.TTheTinform ationTwasTcollectedTagencyTrepresentativesTofTaTrelationship.TTheTresultsTofTtheTsurv eyTprovideTsomeTimplicationsTtoTassistTinTtheTunderstandingTofTagency– clientTrelationshipsTatTdifferentTtimesTofTtheTlifeTcycle.

ReviewTofTLiterature TheTnatureTofTtheTadvertisingTindustryThasTchangedToverTtheTlastTdecade,TalthoughT itsTroleTofTcommunicatingTwithTandTinfluencingTcustomersTremainsTunchanged.TAdve rtisingTagenciesTofferTsolutionsTtoTmarketingTproblemsTforTbusinesses,TnotTforTprofit TorganisationsTasTwellTasTgovernmentT(BeverlandTetTal.,T2007;TTurnbullTandTWheele r,T2015).TManyTlargerTagenciesThaveTpurchasedTboutiqueTorTspecialistTagencies,Tsuch TasTpublicTrelationsTagencies,TwebsiteTdevelopment,TdirectTmarketingTandTmarketingT researchTfirmsTtoTensureTthatTtheyTareTableTtoTprovideTaTrangeTofTservicesTthatTthe irTclientsTexpectTthroughTaTone-stop-shopT(Wilson,T2010).TClientsTareTtimepreciousTandTdoTnotTwantTtoTbeTbriefingTmultipleTserviceTprovidersTorTnegotiatingT howTtoTdivideTupTtheirTmarketingTexpenditureTbetweenTtheTagencies.THenceTtheyTpr eferTtoTuseToneTfullserviceTagency.TClientsTseekTsolutionsTtoTproblemsTbutTareToftenTnotTsureTwhereTth eTsolutionTliesTandTwhichTareTtheTmostTappropriateTchannels.TTheTtwentiethcenturyTagencyTwasTfocusedTonTcreativity,TbillingsTandTretainersTwhereasTinTtheTtwe nty-firstcenturyTagenciesTneedTtoTworkTdifferentlyTwithTtheirTclientsTinTorderTtoTremainTrele vantTandTaddTvalue. AccordingTtoTWilsonT(2010)ThavingTaTloyalTclientTbaseTisToneTofTtheTkeyTsuccessT factorsTforTadvertisingTagencies.TMarginsTinTtheTbusinessTareTunderTcontinualTpressur e,TandTitTisTmoreTprofitableTforTanTagencyTtoThaveTaThighTproportionTofTtheirTbusi nessTcomingTfromTexistingTclientsTwhichTminimisesTtheTcostsTofTsourcingTandTattrac tingTnewTbusiness.TSeveralTauthorsThaveTempiricallyTdemonstratedTthatTcustomerTloy altyTisTaTkeyTfactorTinTimprovingTaTcompany’sTeconomicTandTcompetitiveTposition. TCustomerTloyaltyTisTimportantTespeciallyTduringTtimesTofTeconomicTausterityTandTi ncreasingTcompetitionT(DickTandTBasu,T1994;TThaichonTetTal.,T2014;TWangTandTWu ,T2012).TThisTisToneTofTtheTfirstTstudiesTtoTcombineTserviceTqualityTandTrelationshi pTmarketingTliteratureTtoTdevelopTaTconceptualTmodelTtoTexploreTtheTdriversTofTloy alty. TAsTbusinessTdecisionsThaveTtoTbeTrational,TadvertisingTagenciesTlikeTotherTserviceT providersTneedTtoTdeliverTvalueTtoTtheirTclients.TPerceivedTvalueTdrivesTsatisfactionT (PattersonTandTSpreng,T1997)TandTinTturn,Tloyalty.TCustomersTchooseTtheTproductTor TserviceTthatToffersTtheTbestTrelativeTvalueTcomparedTtoTothersTinTtheirTconsideratio nTsetT(Neal,T1999).TOverallTsatisfactionTisTaTcumulativeTevaluationTbasedTonTtotalTp urchaseTandTconsumptionTexperienceTwithTaTgoodTorTserviceToverTtimeT(AndersonTe tTal.,T1994;TThaichonTandTQuach,T2015).TSatisfactionTaffectsTfutureTbuyingTdecisions ,TandTsatisfiedTcustomersTareTgenerallyTloyal,TwhichTincreasesTrevenueTandTlowersTo peratingTcosts.TTherefore,ThigherTsatisfactionTliftsTreturnTonTinvestments,TstockTprice TandTaddsTmarketvalueTforTserviceTprovidersT(AndersonTetTal.,T2009;TBayraktarTetTal.,T2012).T

BelchTetTal.T(2009)TclaimTthatTtheTkeyTreasonTclientsTuseTadvertisingTagenciesTrelat esTtoTtheTspecialistTknowledgeTandTtheTobjectiveTmarketTanalysisTtheyTareTableTtoT provide,TandTtheirTabilityTtoTdrawTonTexperiencesTgainedTwhilstTworkingTforTotherT clients.TThereTisTaTheightenedTneedTforTagenciesTtoTconsiderTtheTwholeTclientTexper ience,TfocusingTonTunderstandingTandTrespondingTtoTtheTclients’TneedsTwhilstTdispla yingTcreativity.TTheTrelationshipTbetweenTadvertisingTagenciesTandTtheirTclientsTisTba sedTonTemotionsTandTfeelingsTasTwellTasTeconomicToutcomes.TThereTareTagenciesT whichTareT-T8TTpreparedTtoTcutTcostsTandTprovideTdiscountsTtoTgetTtheTjobTdone,TbutTtheseTexcha ngesTfocusTonTshorttermTresultsTratherTthanTlongtermTinvestments.TTheTqualityTofTtheTrelationalTexchangeTbetweenTserviceTprovidersT suchTasTadvertisingTagenciesTandTtheirTclientsTisTanTimportantTdimensionTwhichTisTl ikelyTtoTinfluenceTloyalty.T Therefore,TtheTobjectivesTofTthisTresearchTstudyTareTtoTdevelopTandTtestTaTmodelTb asedTonTserviceTqualityTandTrelationshipTmarketingTliteratureTtoTinvestigateThowTadv ertisingTagencies’TcreativityTandTinterfirmTrelationshipsTinfluenceTtheirTclients’TvalueTperceptionsTandToverallTsatisfaction;T andTtoTexamineThowTvalueTperceptionsTandToverallTsatisfactionTinfluenceTtheTloyalty TofTclientsTtowardsTtheirTadvertisingTagencies.

LongTTermTValueTOfTTheTRelationship: ATstudyTbyTDhalla,T1978TstudiedTthatTtoTenhanceTtheTclientTagencyTrelationshipTitT requiresTmaximumTcommunication,TunderstandingTandTtrustTbyTbothTtheTparties.TItTr equiresTstrategicTinvestment.TAsTtheTadvertisingThasTlongTtermTbenefitsTforTtheTbran d,TtheTtimeTandTcostTspentTbyTtheTagencyTandTclientTultimatelyTleadsTtoTtheTdevelo pmentTofTtheTbrandToverTtime.THowever,TbothTagencyTandTclientTfaceTdifficultyTinT maintainingTtheTrelationshipTbecauseTofTtheTintangibleTnatureTofTtheirTbenefits.TTheT researchTstudiedTthatTthereTisTnoTcertaintyTaboutTtheTnatureTandTdurationTofTtheTbe nefitsTtheTbrandTacquiresTfromTtheTadvertising. TheTresearchTbyTNewsomeT(1980:T26)TstudiedTthatTtheTprocessTofTswitchingTandTde velopingTaTsuccessfulTpartnershipTtookTupTtoTtwoTyears.TAsTperTtheTresearchTtheTs witchingTprocessTinvolvesTtheTnewTagencyTselectionTprocess,TinductionTbriefings,Tand TtheTgradualTdevelopmentTofTrapportTandTtrustTwithTtheTnewTagency. InTtheTadvertisingTsense,TlongtermTrelationships,TwhenTcorrectlyThandled,TshouldTprovideTtheTenvironmentTinTwhic hTtheTbestTadvertisingTproductTisTdeveloped.TThroughTcontinuousTmonitoringTandTres olutionTofTareasTofTdissatisfaction,TbothTclientTandTagencyTcanTbenefitTfromTstrength eningTandTmaintainingTtheirTrelationship.T TheTauthorTJoeTGrimaldiT(2003)inThisTbookT(BookTname)TstatesTthatTtoTbringTaTbra ndTtoTlife,TanTagencyTmustTunderstandTtheTclientTinTeveryTaspect,TitsTcompany,Tpro ductsTorTservices,TandTitsTcustomers,Tpast,Tpresent,TandTfutures.TTheTagencyTmustTal soThaveTaTstrongTrapportTwithTitsTclient.

There’sTanToldTagencyTsayingTthatT“clientsTusuallyTgetTtheTadvertisingTtheyTdeserve, ”TmeaningTthatTclientsTwithTaTsolidTlongtermTviewTwillTgetTbetterTadvertisingTthanTtheTclientTthatTinsistsTonTshorttermTresultsTwithoutTbuildingTaTsolidTfoundation.TTheTbookTstudiedTthatTtheTadvertis ingTagencyThasTevolvedTeverTsince.TTheTfirstTandTforemostTevolutionTisTtheTthinkin gTbehindTtheTadvertising.TTheTconcernedTisTtakingTthatTthinkingTtoTaTnewTandTmor eTprovocativeTlevel. OnTtheTcreativeTside,Tit’sTaboutThowTyouTcreateTtheTmostTmeaningfulTmessagesTand ThowTyouTsendTthemToutTthroughTadvertising,TdirectTmarketing,TInternet,TandToneto-oneTsalesTengagements. InTtheTfuture,Tmarketers,Tcompanies,TandTclientsTareTgoingTtoTbeTcautiousTaboutTwh atTtheyTspend,TwhatTtheyTsay,TandTwhereTtheyTsayTit.T AsTperTtheTauthor,TgoodTadvertisingTshouldTbeTselfevident.TAgenciesTshouldTnotThaveTtoT“sell”TtheirTcampaignsTtoTtheirTclients.TWhen TanTagencyTdoesTitsTjobTonTbehalfTofTaTclient,TtheTclientTbringsTitTbackTtoTbusine ss. TheTresearchTbyTSarahTTurmballTstudiesTtheTassociationTbetweenTanTagencyTandTthe TclientThasTfrequentlyTbeenTalludedTtoTasTaT'marriage'TasTaTresultTofTitsTclosenessT andTlifeTspan,TitTisTcurrentlyTincreasinglyTpracticalTtoTanticipateTthatTconnectionsTsh ouldTlastTunderT3Tyears.TAsTseenTinTSarahTTurmball’sTstudyTtheTshorterTnatureTofT client/adTagencyTrelationshipsTreflectsTtheTchangingTnatureTofTtheTmarketingTcommun icationTenvironmentTandTtheTincreasingTfocusTonTreturn-oninvestmentTfromTcommunicationsTactivity. TheTstudyTstatesTthatTanTintriguingTthingThappenedTtoTourTindustryTinTtheTlateT’70s TorTearlyT’80s,TwhenTtheTmiddleTofTtheTagencyThierarchyT– TpeopleTlikeTaccountTsupervisors,TassociateTmediaTdirectorsTandTmediaTsupervisorsT– vanishedTinTlightTofTtheTfactTthatTtheTincomesTweren'tTthereTtoThelpTthem.TTheseTi ndividualsTresembledTsergeantsTinTtheTmilitary,TtheTonesTwhoTknewTeverythingTandT couldTeducateTnewTenlistsTinTaTforceful,TsubstantiveTway.TTheyTcouldTlikewiseTident ifyTwithTseniorTadministrationTandTgivenTanTapproachTtoTindividualsTcomingTintoTth eTbusinessTtoTlearnTitTwell.TItTarrangedTthemTtoTturnTintoTfutureTpioneersT– TtheTonesTwhoTwereTsufficient. ElizabethTCarmelaTLevinTinTherTresearchTnotedTthatTmanyTintervieweesTspokeTabout TtheTcommitmentTofTtheTagencyTtoTtheTclient,TratherTthanTtheTreverse.TTheTintervie weesTfeltTthatTtheTagencyTshouldTbeTcommittedTtoTtheTclientTandTgoTaboveTexpecta tionsTtoTsatisfyTtheTclient.TFewTintervieweesTstatedTthatTtheyTcontinuedTtoTuseTtheTs ervicesTofTtheirTagencyTasTtheTagencyTstaffTunderstoodTtheirTbusiness,TtheirTbrand,Tt heTbrandTimage,TtheTlook,TfeelTandTtonalityTofTtheirTpromotionalTmaterials.TSeveralT participantsTspokeTofTtheirTagenciesTinTtermsTofTpartnershipTratherTthanTpurelyTservi ceTprovision.TTheyTfeltTtheyTnotTonlyThadTaTprofessionalTconnectionTbutTalsoTanTe motionalTattachmentTwithTtheirTagenciesTandTagencyTpeopleTasTtheyThadTworkedTver yTcloselyTwithTthemToverTyears.

TheTresearchTdoneTbyTKatharinaTBodenT(2009)TstudiesTthatTtheTworthTofTkeepingTa TlongtermTrelationshipThasTincreasedTevenTthoughTresearchThasTshownTthatTtheTdurationsT ofTclientagencyTrelationshipsTtendTtoTdecrease.TInTtimesTofTtheTeconomicTcrisisTaTcontractTre newalTisTmoreTcomparedTtoTever.TTheTpaperTstudiesTthatTitTisTvitalTtoTofferTsuperi orTvalueTtoTtheTclientTtoTcreateTandTmaintainTaTlongTtermTrelationship.TItTalsoTstatesTthatTitTisTveryTimportantTtoTevaluateTtheTeffectTof TagencyTworkTandTthatTagainTraisesTpressure.T

ConstructsTofTAdvertising LoyaltyT LoyaltyTisTwidelyTrecognisedTasTbeingToneTofTtheTmostTimportantTconstructsTinTthe TmarketingTliteratureT(CaceresTandTPaparoidamis,T2007;TShirinTandTPuth,T2011;TWan gTandTWu,T2012).TTheTloyaltyTofTbuyersTpositivelyTaffectsTpersonalTandTnoneconomicTsatisfactionTthroughTongoingTsocialTexchangeTwithTaTvendor,TandTconseque ntly,TbuyersTfindTtheToverallTexperienceTwithTaTsellerTmoreTsatisfyingT(LamTetTal.,T 2004;TWangTandTWu,T2012).TManyTauthorsThaveTadoptedTtheTtwodimensionalTconstructTofTloyalty,TthatTis,TtheTinclusionTofTbothTbehaviouralTandTattit udinalTcomponents.TTheTbehaviouralTcomponentTrefersTtoTrepurchaseTbehaviourTwhils tTtheTattitudinalTdimensionTrelatesTtoTaTcommitmentTtoTtheTorganisationT(LaTetTal.T 2005).TInTthisTstudyTloyalty,TtheTprincipleTmeasureTofTcustomerTretentionTisTconcept ualisedTasTbeingTcomposedTofTreuseTandTadvocacy.T

PerceivedTvalueT ThereTareTmanyTreasonsTwhyTorganisationsTenterTandTmaintainTbusinessTrelationships ,TbutTitTisTunlikelyTthatTinTaTcompetitiveTmarketplace,TorganisationsTwouldTcontinue TtoTuseTtheTservicesTorTproductsTofTaTsupplierTifTtheyTdidTnotTreceiveTvalueTthrou ghTthisTrelationshipT(ShirinTandTPuth,T2011;TTam,T2012).TTheTvalueTinTtheTcurrentT studyTisTusedTtoTrepresentT‘clientTperceivedTvalue’.TPaulinTetTal.T(2000)TexplainTthat TmarketingTliteratureTregardsTcustomerTperceivedTvalueTas:TtheTfundamentalTbasisTfor TmarketingT(Tam,T2012),TaTkeyTstrategicTvariableTtoThelpTexplainTrepeatTpurchaseTb ehaviour,TbrandTloyaltyT(PattersonTandTSprengT1997)TandTrelationshipTcommitmentT( ThaichonTetTal.,T2014),TandTaTsourceTofTcompetitiveTadvantageT(Tam,T2012).TPercei vedTbenefitsTconsistTofTaTcombinationTofTtechnicalTsupport,TphysicalTandTserviceTatt ributesT(ThaichonTandTQuach,T2015).TCostsTorTsacrificesT-T9TTincludeTanythingTwhichTisTgivenTupTinTorderTtoTreceiveTtheTgoodTorTserviceTprovi dedTandTincorporatesTmonetaryTvalueTorTpriceT(DurvasulaTetTal.T2004;TTam,T2012). T SatisfactionT

TheTimportantTissueTofTcustomerTsatisfactionThasTbeenTstudiedTsinceTtheT1970sT(Den gTetTal.,T2010;TThaichonTandTQuach,T2015).TAccordingTtoTDurvasulaTetTal.T(2004:T 314)T‘CustomerTsatisfactionThasTbeenTregardedTasTtheTultimateTbusinessTgoal’.TSever alTresearchersTcontendTthatTinTtheTprofessionalTservicesTareaTofTbusiness,TclientsTten dTtoTremainTwithTtheTsameTproviderTifTcontinuallyTsatisfiedT(BayraktarTetTal.T2012). TOliverT(1999)TclaimsTthatTsatisfactionTisTaTconsumer’sTpostpurchaseTevaluationTandTincorporatesTanTaffectiveTresponseTtoTtheToverallTexperience. TDengTetTal.T(2010)TandTEggertTandTUlagaT(2002)TexpandTonTOliver’sTdefinitionTa ndTcontendTthatTcognitiveTprocessesTunderlieTtheTsatisfactionTconstruct,TwherebyTperc eivedTperformanceTisTcomparedTagainstTsomeTpreconceivedTcomparisonTstandard.TGeyskensTetTal.T(1999:T224)TdefineTcustomerTsatisfa ctionTinTtheTbusinesstobusinessT(B2B)TcontextTasT‘aTpositiveTaffectiveTstateTresultingTfromTtheTappraisalT ofTallTaspectsTofTaTfirm’sTworkingTrelationshipTwithTanotherTfirm’.T CreativityT CreativityTisTaTbroadTconstructT(LehnertTetTal.T2014;TMichell,T1986)TwithTnoTconsis tentTviewsTorTdefinition.TInTthisTstudy,TcreativityTcomesTinTmanyTformsTandTrelates TtoTtheTcontributionTofTcreativeTmanagers,TaccountTplanners,TandTmediaTbuyers.TCre ativityThasTbeenTconceptualisedTasTwellTconceivedTandTwellcraftedTideasTfromTallTfacetsTofTtheTagencyTtoTprovideTaTsolutionTtoTtheTproblemTa tThand.TTheTkeyTselectionTcriteriaTinTchoosingTanTadvertisingTagencyTareToftenTconc ernedTwithTperformanceTfactors,TsuchTasTcreativity,TtheTdevelopmentTofTfreshTideasT andTknowledge,TandTexperienceTwithinTtheTfirm’sTindustryT(TurnbullTandTWheeler,T2 014).TCaceresTandTPaparoidamisT(2007)TandTSimõesTandTMasonT(2012)TcategorisedT qualityTasTadvertisingTorTtechnicalTquality,TandTfunctionalTorTserviceTquality.TTheyTa rgueTthatTcreativeTaspectsTareTaTmoreTimportantTpredictorTofTsatisfactionTthanTfuncti onalTquality.TResearchTsuggestsTthatTcreativityTasTserviceTperformanceTcanTincreaseTs atisfactionT(BeverlandTetTal.,T2007;TVanTRensburg,T2010)TandTconfidenceTwithTtheTa gencyT(DaviesTandTPalihawadana,T2006).TAgenciesTwithTaThighTlevelTofTcreativityTa reTthoseTwhichThaveTmovedTfromTunderstandingTclients’TneedsTtoTshapingTthem,Tant icipatingTtheirTclients’TneedsTandTtakingTinitiative.TPattersonTandTSprengT(1997)Tteste dTtheTimpactTofTperformanceTonTperceptionsTofTperceivedTvalueTandTsatisfactionTinT aTB2BTcontextTandTfoundTstrongTlinkagesTbetweenTtheTconstructs.TVanTRensburgT(2 010)TfoundTthatTcoreTservices,TincorporatingTcreativityTandTproactivity,TofferedTbyTad vertisingTagenciesTtoTclientsTwereTstronglyTcorrelatedTtoTsatisfaction.TAccordingly,Tth eTfollowingThypothesesTareTpostulated:T H1a:TTheTcreativityTofTadvertisingTagenciesTisTpositivelyTrelatedTtoTtheirTclients’Tper ceivedTvalue.T H1b:TTheTcreativityTofTadvertisingTagenciesTisTpositivelyTrelatedTtoTtheirTclient’sTov erallTsatisfaction. TInter-firmTrelationshipsT RelationshipsTareTcriticalTtoTallTbusinesses.TThoughTthereTareTmanyTadvantagesTtoTd evelopingTandTsustainingTrelationshipsTbetweenTadvertisingTagenciesTandTtheirTclients,

TthereThasTbeenTscantTresearchTinvestigatingTsuccessfulTrelationshipsT(LaBahn andTKohli,T1997;TTurnbullTandTWheeler,T2014).TMuchTresearchTonTclientagencyTrelationshipsTisTfocusedTonTswitchingTbehaviourTandTtheTreasonsTforTterminat ionTofTrelationshipsT(Michell,T1986).TWhilstTgeneralTrelationshipTissuesTareTcitedTasT theTmostTimportantTareaTofTclientTconcernTduringTagencyTreviews,TmostTresearchTon TrelationshipsTfocusesTonTtheTsupplierTsideTratherTthanTtheTclientTsideT(KarantinouTa ndTHogg,T2009).TAsTthereTisTnoTconsistencyTtoTtheTconceptualisationTofTrelationship s,TtheTcurrentTstudyTfocusesTonTrelationalTorTemotionalTandTprofessionalTelementsTof TrelationshipsTbetweenTtheTserviceTproviderTandTclientTincludingTcivility,Tfriendliness TandTsociability,TasTwellTasTcompetence.TPaulinTetTal.T(2000)TcontendTthatTitTisTim portantTtoTdifferentiateTbetweenTexchangesTinTindustrialTorTcommercialTcontexts,Twhi chTareTlikelyTtoTbeTtransactionTbased,TandTthoseTthatToccurTthroughTtheTdeliveryTof TprofessionalTservices,TwhichTareTmoreTlikelyTtoTbeTrelationalTexchanges.TDifferentia tionTinTbusinessTrelationshipsTcanTbeTresearchedTfromTaTvaluebasedTperspectiveT(UlagaTandTEggert,T2006).TEffectiveTdifferentiationTmustTincreaseT customerTvalueTbyTeitherTofferingTmoreTbenefitsTorTdecreasingTcostsTforTtheTcustom er.TSuppliersTinTbusinessTrelationshipsToftenTconsiderTthatTaTwayTtoTdifferentiateTthe mselvesTisTthroughTimprovedTcustomerTinteractionsTwhichThaveTbecomeTessentialTinT securingTaTkeyTsupplierTpositionT(UlagaTandTEggert,T2006).TFromTaTserviceTprovider ’sTperspective,TthereTareTdistinctTadvantagesTtoTbuildingTrelationshipsTwithTcustomers TasTtheTkeyTsuccessTfactorTforTbusinessTperformanceTisTaTrelationalTexchangeT(Raja mmaTetTal.,T2011).TUlagaTandTEggertT(2006)TassertTthatTrelationshipTbenefitsTreprese ntTaTlargerTpotentialTforTdifferentiationTthanTdoTcostTconsiderationsTinTtermsTofTvalu eTinTB2BTcontext.TVanTRensburgT(2010)TfoundTthatTclientTsatisfactionTrelatesTtoTbo thTaTcombinationTofTserviceTandTrelationshipTquality.TThusTtheTfollowingThypotheses TareTpostulated:T H2a:TInterfirmTrelationshipsTareTpositivelyTrelatedTtoTadvertisingTagencies’Tclients’TperceivedTva lue.TH2b:TInterfirmTrelationshipsTareTpositivelyTrelatedTtoTadvertisingTagencies’Tclients’ToverallTsatis faction.T Satisfaction,TvalueTandTloyaltyT CustomerTsatisfactionTisTcoreTtoTtheTdevelopmentTandTmaintenanceTofTbusinessTrelati onshipsThenceTanTinvestigationTintoTtheTdeterminantsTofTclientTloyaltyTmustTincludeT assessmentTofTclientTsatisfactionT(GeyskensTetTal.,T1999;TLinTandTWang,T2006;TOliv er,T1999;TPattersonTandTSpreng,T1997).TCustomerTsatisfactionTdoesTnotTguaranteeTrel ationshipTcontinuityT(UlagaTandTEggert,T2006),TasTevenTsatisfiedTcustomersThaveTbee nTknownTtoTdefectTorTseekTalternativesT(NdubisiTetTal.,T2009).THowever,TsatisfiedTc ustomersThaveTpositiveTattitudesTtowardsTtheTserviceTproviderTwhichTmayTactTasTaT motivatorTtoTrecommendTtheTservicesTofTtheTprovider,TasTwellTasTtoTrepurchaseTfro mTtheTsupplierT(ChengTetTal.,T2008;TLamTetTal.,T2004).THenceTcustomerTsatisfaction TprecedesTfutureTpositiveTactionsTonTtheTpartTofTtheTpurchaser.TTherefore,TtheTfollo wingThaveTbeenThypothesised:T

H3:TAdvertisingTagencyTclients’TperceivedTvalueTisTpositivelyTrelatedTtoTtheirToverall Tsatisfaction.TH4a:TAdvertisingTagencyTclients’TperceivedTvalueTisTpositivelyTrelatedT toTtheirTloyalty.T H4b:TAdvertisingTagencyTclients’ToverallTsatisfactionTisTpositivelyTrelatedTtoTtheirTlo yalty.T PattersonTandTSprengT(1997)TwereTamongTtheTfirstTresearchersTtoTundertakeTempirica lTresearchTintoTbuyers’TperceptionTofTvalue,TandTcombineTthisTwithTassessmentsTofT perceivedTperformanceTandTsatisfactionTasTdriversTofTrepurchaseTintentions.THowever, TtheTconstructsTinTtheirTmodelTareTpredominantlyTcognitiveTwithTnoTrelationalTconstr ucts.TDurvasulaTetTal.T(2004)TusingTaTservicesTmarketingTapproachTmodelledTtheTant ecedentsTofTbehaviouralTandTattitudinalTloyaltyTincorporatingTtheTdimensionsTofTservi ceTquality,TvalueTandTsatisfaction,TusingTtwoTmodels,ToneTincorporatingTbothTdirectT andTindirectTrelationships,TwhilstTtheTsecondTwasTaTfullyTmediatedTmodel.TWhilstTth eirTmodelTincludesTseveralTevaluativeTconstructs,TrelationalTdimensionsThaveTbeenTtot allyTignored.TDurvasulaTetTal.’sT(2004)TmodelTisTsimilarTinTstructureTtoTtheToneTuse dTbyTPattersonTandTSprengT(1997)TwithTtheTkeyTdifferencesTbeingTtheTuseTofTtwoT dimensionsTtoTassessTloyalty,TasTwellTasTtheTdirectTpathsTfromTvalueTtoTtheTloyalty Tconstructs.TTheTconceptualTmodelTforTtheTstudyTwasTinformedTbyTserviceTqualityTa ndTrelationshipTmarketingTliteratureTtoTfillTtheTidentifiedTgaps.