Advertising Agency

11 Pages 2701 Words

despite the fact that the knowledge and creativity are often translated in tangible forms . e.g. written briefs, research reports, commercials and advertising videos etc. The outcomes of advertising and its effect on customers are often intangible as well. The final goal of advertising is usually to produce concrete economic benefits for the clients, but it is extremely difficult to assess these benefits.
People Intensity
Advertising services, in contrast to capital-intensive services are people-intensive. In organizations, the knowledge may be embedded in individuals, in the organization itself or in capital equipment. In the advertising business the core service is bound primarily to the individuals who provide it. The role of facilities and equipment is secondary in the provision of services. This means that the participation individuals significantly influence the perceived quality of the advertising service and the whole business relationship. It is said that if the client has a favourable personal relationships with the account service personnel, then they are most likely to be satisfied with the agency (Cagley, 1986).

The Interactive Nature of Service Processes
Advertising services are produced - and partly consumed - in an interaction between agency and client (Halinen, p.30). The client’s participation in the production process is crucial. The client commissions the assignment to the agency, negotiates the terms, provides the necessary information for the account management group and executes the acceptance of the plans and materials. The coordination between the agency and the client is needed in the relationship.

Customised Character
The degree of client participation is also connected with the degree of customisation or standardisation of the advertising agency. Advertising agency services are usually highly customised with respect to both the service options and the service process. It is important f...