the contribution of advertising agencies towards effective marketing of goods and
DESCRIPTION
A CASE STUDY OF INSIGHT COMMUNICATION ADVERTISING AGENCY IKEJA LAGOSTRANSCRIPT
TITLE PAGE
A STUDY OF THE CONTRIBUTION OF ADVERTISING AGENCIES
TOWARDS EFFECTIVE MARKETING OF GOODS AND
SERVICES
(A CASE STUDY OF INSIGHT COMMUNICATION ADVERTISING
AGENCY IKEJA LAGOS)
BY
MABE; PHILIP OBI
F P N/ SOI/ 2007/2008/ HMKT 582
A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF
MARKETING, SCHOOL OF BUSINESS STUDIES, FEDERAL
POLYTECNIC NASSARAWA,
NASARAWA STATE.
IN PARTINAL FUFILMENT OF THE REQUIREMENT FOR THE AWARD
OF HIGHER NATIONAL DIPLOMA IN MARKETING
AUGUST, 2009
i
APPROVAL PAGE
This research work has been read through approved by my humble
supervisor: Mr. Roland Ezenwugo. After being satisfied for meeting up
with the requirement for the award of Higher National Diploma to
Marketing
_______________ ____________________
MR EZENWUGO ROWLAND SIGN/ DATE
PROJECT SUPERVISOR
___________________ ____________________
MR J.T SOLOMON SIGN/ DATE
PROJECT CO-ORDINATOR
___________________ ____________________
MR J T SOLOMON SIGN/ DATE
HEAD OF DEPARTMENT
___________________ ____________________
MR S.S YARO SIGN/ DATE
COURSE COORDINATOR
_____________________ ____________________
A.O ALEJE SIGN/DATE
EXTERNAL EXAMINER
ii
CERTIFICATION
This is to certify that this research work was conducted by Mgbe, Philip
Obi and submitted to meet the requirement and regulations governing the
award of Higher National Diploma of the Department of marketing,
Federal polytechnic Nassarawa.
___________________ ____________________
MR. E.C. ROWLAND
PROJECT SUPERVISOR SIGN/DATE
iii
DECLARATION
I Mr. Mgbe, Philip Obi do declare that this project was solely undertaken
by me and supervised by my humble supervisor. Mr. E.C Rowland of the
Department of Marketing Federal Polytechnic Nasarawa.
This work is neither copied from some ones work nor conducted by some
one for me.
___________________
___________________
SIGNATURE
___________________
DATE
iv
MGBE PHILIP OBI
LETTER OR TRANSMITAL
Department of Marketing
Federal Polytechnic,
P.M.B 001 Nasarawa,
Nasarawa State
The Head of Department,
Department of Marketing,
Federal polytechnic,
Nasarawa.
Dear Sir,
SUBMISSION OF HIGHER NATIONAL DIPLOMA PROJECT WORK
In compliance with the policy of the department, and established authority
of federal polytechnic Nasarawa, that students should at the completion of
their course of study, undertake a project work and sub sequently make a
detailed report on it.
I here by submit with honor and pleasure, a detailed work in the project
work titled “A study of the contribution of advertising agencies toward the
marketing of good and services” A case study of insight communication
advertising agency Ikeja Lagos.
Yours Faithfully,
Mgbe, Philip Obi.
v
DEDICATION
This research work is dedicated to the Almighty God, who is his infinite
mercy has made the completion of this program a very successful one for
me. And in memory my beloved sister (LATE MARY MGBE N. ABANG)
whose words of encouragement has been of great help to me.
vi
ACKNOWLEDGMENT
My most profound gratitude goes to God Almighty for His unending grace
and mercy through out my programme Also for the wisdom, knowledge
and understanding that guided me through out this project work.
I am particularly grateful to my humble and most friendly supervisor. Mr.
E. C Rowland for lots of his time that I have taken in so many ways, He
has been so patience enough, despite lots of his commitments, to take his
time to read through the whole manuscript of this work.
May I also express my worm and hearty appreciation to my H.O.D in
person of Mr. J.T Solomon, my Lecturers Mallam Ibrahim Abubakar,
Mallam Suleiman Yero, Mallam Mohammed Yero, Mr. Kufreh Inyang, Mr.
Iliya Bawa and Mrs. Rowland Monica for the knowledge they impacted on
me through out my study in the polytechnic. I am in debted to the
following persons whose love and affection I will never for get. My friends
Amadi Bob, Paul Ogonyi, my causins Nyen E. Abang, Cecilia E. Abanag
and Ekobosowor Abanag. My twice brothers Amba and Manyo Mgbe Neji.
I also owe immense thinks and appreciation to both academic and non
academic staff at the institution.
I am particularly debted and equally grateful to my beloved guidance who
are as well my parents and mentor, Sir and lady Patrick Enya Abang (K S
m) for bearing my financial responsibility throughout my stay in the
vii
institution. I can not thank you enough and I have not yet find a word I will
describe who god creator has made in you, its only god that will bless
you, I wish to express my gratitude to all those who in one way or the
other contributed to the success of this research work: I say BRAVO to
you all.
viii
ABSTRACT
Efforts have been made to diagonize various Authors view opinions on this research work so as to compare these views with the organizational activities to determine if there are in line with the existing knowledge. This proposal describes the study of contribution of advertising agencies towards effective marketing of good and services. The project is sort to point out how different people in the house department members, agencies people client are involved in the production of advertising and how the different roles played can lead to effective marketing of good and services. Data on this work was collected through descriptive and survey method of research. A sample size of fifty (50) management staff was collected. The data after being collected was analyzed by means of a table and single percentage method to determine the result. Also a test of hypothesis was conducted which Ho: suggest that the roles played by advertising agencies helps in marketing of good and services. Hi: suggest that roles played by advertising agencies does not affect marketing of good and services positively. The study was divided in to five man chapter as thus: In chapter one, an introduction and background of the study was discussed in chapter two in view of related literature was carried out in chapter three a look into method of data collection, sources of data collection, research population etc. were distributed and collected chapter four focuses on presentation and analysis of data, The actual presentation of data collected was done using table. Finally chapter five summarizes concludes and makes recommendation on the entire work. A bibliography and appendix was shown.
ix
TABLE OF CONTENTS
Title Page- - - - - - - - - - i
Approval Page- - - - - - - - - - ii
Certification- - - - - - - - - - iii
Declaration- - - - - - - - - - iv
Letter of Transmittal- - - - - - - - - v
Dedication- - - - - - - - - - vi
Acknowledgement- - - - - - - - - vii-viii
Abstract- - - - - - - - - - - ix
Table of Content- - - - - - - - - x
CHAPTER ONE
INTRODUCTION
1.0 Background of study- - - - - - - - 1
1.1 Historical Background of the case Study- - - - 2
1.2 Statement of the Problem- - - - - - - 3-4
1.3 Statement of Objective- - - - - - - 5
1.4 Statement of Hypothesis- - - - - - - 5
1.5 Significance of the Study- - - - - - - 6
1.6 Scope of the Study- - - - - - - - 7
1.7 Limitation of the Study - - - - - - - 7
1.8 Definition of Terms- - - - - - - - 8-9
End Notes - - - - - - - - - 10
x
CHAPER TWO
LITERATURE REVIEW
2.0 Introduction- - - - - - - - - 11
2.1 Structure of Advertising Agency- - - - - - 12-13
2.2 Functions of the Board Members- - - - - - 14
2.3 Creative Departments- - - - - - - 15
2.4 Roles of Advertising Agencies - - - - - - 16
2.5 Functions of Advertising Agencies - - - - - 17
2.6 Clients Contribution to Efficient Performance - - - - 18
2.7 Method of Remunerating Ad. Agency - - - - - 19
2.8 How Agency gain their Client- - - - - - 20-22
End Notes- - - - - - - - - - 23
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction- - - - - - - - - 24
3.1 Source of data Collection- - - - - - - 24
3.2 Research Instrument- - - - - - - - 25
3.3 Population-- - - - - - - - - 25
3.4 Sample Size- - - - - - - - - 25
3.5 Questionnaire Design- - - - - - - - 26
3.6 Questionnaire distribution and collection- - - - 26
xi
CHAPTER FOUR
PRESENTATION AND DATA ANALYSIS
4.0 Introduction- - - - - - - - - 27-36
4.1 Test of hypothesis: Chi-Square Method- - - - - 37-41
4.2 Research Findings- - - - - - - - 41-42
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation- - - - 43
5.1 Summary- - - - - - - - - - 43
5.2 Conclusion- - - - - - - - - 44
5.3 Recommendation - - - - - - - 45
Bibliography 46
Appendix I 47
Appendix ii 48-51
xii
CHAPTER ONE
BACKGROUND OF THE STUDY
1.0 INTRODUCTION
To both the potential employee and the potential client, the
advertising agency often seems to represent the most glamorous
part of advertising business. Presumably this is because the people
with big national advertising campaigns associate the agency. But
important though it is, the agency is by no means the beginning and
the end of advertising. If any thing it is the meddler delicately poised
between advertiser and the medium.
Ideally, the advertising agency should be a team of expects
which augment the work of the advertising manager on the one
hand and that of the media owner on the other, legally the agency
acts as principle and is responsible for the space or time he books,
even though this is ostensibly booked on behalf of a client at all.
Historically speaking, agencies were once brokers used by
the publishers and paid a commission in the space which they sold.
Even today an agency is not paid commission by the publisher
unless approved or reorganized by the trade association of the
news paper owners.
To break the explanation in simple term Advertising agencies
are in depending organization of creation, and business men who
specialized in the development and other promotional tools.
1
1.1 HISTORICAL BACKGROUND OF THE CASE STUDY
Insight communication is the Nigeria leading integrated
advertising communication agencies and is wholly owned by one of
Nigerian most respected and successful companies. The
THOYKER group. Insight communication was incorporated in 1979
and began operation in 1980.
Insight is in member of grey EMEA group and a member of
WPP Group with it’s headquarter in Ikeja Lagos situated along
17/19 Oduduwa street G.R.A Ikeja.
Insight communication agency like every other advertising
agency has its own mission which she is set to carry out. Some of it
were to provide insightful thinking, that producing inciting creativity
which inspires consumes to support their clients brand on a never
ending basis.
In the past years in height has recorded to achieve the greater
success, insight change the advertising landscape in Nigeria
pioneered to era of second generation advertising agencies with a
total marketing approach.
Grey EMEA group which insight is made a member of it has
also recorded much success it’s said to be the largest advertising
agency in the world with offices in over 83 countries. It has one
overriding focus and this is to produce truly greater creative work to
2
produce work that soars make them proud and fosters the brand
relationship with consumers, work that helps the client prosper.
Grey worldwide provide highly creative services including brand
ideas and strategies, brand planning, creative development and
production. This agency is organized into four geographical units:
North America, Europe, Middle East and Africa (EMEA) Asia
practice and Latin America. Insight communication which is made
up of 62 Staffs who have put their heads together has helped on
enabling environment for effective marketing of good and service
that has been the dream of every organization.
1.2 STATEMENT OF THE PROBLEM.
This project focus on the contribution of adverting agency for
effective marketing of good and services with special reference to
insight communication agency Lagos. Advertising Agency remain
the specialized impendent organization, used by companies for the
development and promotion tool which will in turn result to the
increase in sale and profit of such companies or organization for
those persons who uphold the view that activities of advertising
agencies to a company or their services rendered to any company
or is incurring extra expenses to such companies. I say such view
are at best figment of their own imagination, because for any
company or organization or business parastatal that known what
3
her aim is all about must go at extra length, to make sure she keeps
her organization at a maturity stage even is it means incurring cost
provided her objectives are met. With the great contribution of
advertising agency toward uplifting the standard of an organization
as we have seen from the mission set by the insight communicating
agency.
Most organization in Nigeria today has fold up because of lack
of efficient advertising and lack of skilled personal to do those
advertisement for the companies and these infract has lead to
unemployment and poor standard of living for every organization to
survive, it has to make her prospective customer to know about her
existence and she can’t do it if she doesn’t employ the help of the
advertise agencies who are specialized such field.
And finally the client relationship with the adverting agencies
in terms of been of communication should be a very good one.
Here client should by able to understand the agency and the
agency should do same because only then can her work be a
successful one, so firm negligence on essential matters as this
prompted me to undertake the research or the study of advertising
agencies on the effective marketing of goods and services.
4
1.3 STATEMENT OF OBJECTIVES
i. The project attempts to point out the major role of advertising
agencies to effective marketing efforts on goods and services.
ii. The project also attempts to point out the various contribution
made by the advertising agencies to total marketing efforts on
goods and services
iii. The project as well attempts to point out the intricacies involved
in carrying out these roles.
iv. The project attempts to point out the indispensability of these
roles carried out by the advertising agencies towards achieving
their set objectives.
1.4 STATEMENT OF HYPOTHESIS
The hypothesis that could be tested for the was states thus.
Ho: Advertising agencies and this roles played does not increase
the sales of firms goods and services.
Hi: Advertising agencies and their roles played does increase the
sales of firms, goods and services
Ho: Advertising agencies contribution made is not relevant in firm
development and growth
Hi: Advertising agencies contribution made is relevant to form
development and growth
5
1.5 SIGNIFICANCE OF THE STUDY
The benefit to be derived by the organization and its
consumers from this study are immeasurable. The study that is the
contribution of advertising agencies on the effective marketing of
goods and services. A case study Insight communication agencies it
shows how much the agencies activities improve the sale level of
her product.
1. TO the business organization; the advertising agencies has a
greater bearing on the volume of sales of any organization during
the period depending on the time period of its activities.
2. Relevance to academics: a sound knowledge of agencies activities
is also relevance to academicians that the students, scholars and
other profession are in position to better appreciate agencies effort
on the development and sales of goods and services
3. Relevance to students and scholars. The research work will be
relevant to academic because it will serve as a reference material to
those who may develop interest in writing on the similar or related
topic in the future.
4. to the public enterprise and other organization; having identified the
problem facing the business, the knowledge of these topic will assist
the management to know how best to implement in term of
developing and increasing her sale ratio.
6
1.6 SCOPE OF THE STUDY
The research works is intended to covers or consider the
contribution of advertising agencies on marketing of goods and
services with a particular reference to insight communication
agencies Ikeja, Lagos.
The research limits itself to how advertising agencies is
practiced in insight communication agencies the area covered
among other in this research work which the various types of
advertising agencies, the roles played by the advertising agencies
to make sure that her goals and that of the organization is achieved.
1.7 LIMITATION OF THE STUDY
In the course of study the researcher was faced with a lot of
difficulties which are:-
1. Time constraint, the time allowed for the project work was short as
other courses of the study are to be carried along side.
2. Poor financial resources at may depose also limited the number of
research tool employed thereby limiting the case study to the limited
staff of the company.
3. The attitude of the staff of the organization was discouraging, as
they were rigid in releasing the needed information.
7
4. Some respondent never completed the questionnaires as they
continuous postponing attention to them, and even those completed
were misplaced.
1.8 DEFINITION OF TERMS
1. Advertisement A message composed by or approved by a person,
firm or other organization which is presented to people at the
expense of advertiser to persuade who ever receives it to accept an
idea, buy a product or take some other action desired by the
advertiser.
2. advertising:- This simply means to describe a product on or
services publicly in other to persuade people to buy or to use it.
It can also refer to as a public notice offering of asking for goods
and services
3. Advertising agencies: - A firm which design advert for clients who
wish to advertise and arrange for the advertisement to be carried by
media. Agencies receive fees for the work from their clients.
4. Market refers to a regular gathering were people buy or sell goods
and service or the state of trade in a particular type of goods in
other words. Market is about selling, market research and
advertising.
5. Tools: Any thing that helps one to do ones job, research tools like
questionnaires.
8
6. Organization: - This simply means that activity of organization, the
condition or state of being organized.
7. Product: A product is both what a seller has to sell and what a buyer
has to buy. Any enterprise that has something to sell tangible goods
or not, It’s called product.
8. Management: this is defined as the act of good planning,
organizing, directing and controlling of workers and materials In a
manner as to achieve a set objectives of an organization.
9. Objective: - This referred to purpose, mission, goods, or target
where any given firm is set to achieve; it’s the profitable growth of a
business.
9
END NOTES
Philip Kotter (2003). Marketing management 11th Edition
(New Jersey: Prentice Hell INC). Page 90 – 106.
Clurdift W. Edward (1999) Fundamentals of modern
marketing. 4th Edition. (Prentice Hall of India, Private Limited). Page 420 –
435
Philip Kotter. (2001). Principle of marketing 9th Edition.
(London: Prentice Hall INC). Page 200
William J. Stanton. (1995) Fundamental of marketing.
(New York: MAC – grew hill Book Company). Page 105 – 109
10
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
The advertising agencies are independent organization as
stated earlier and they require qualified personal to carry out the
management functions:-
Many opportunities for employment exist in advertising
agencies required the possession of a Bachelor Degree with
emphasis in marketing, advertising or any other related area.
The position include those of Advertising manager, public Relation,
specialist, copy-writer for retail advertising and artists for retail
advertising agencies other opportunities include product manager,
market researches product specialist, house organ editors and
writer and audio visual managers market assistance and marketing
in directors, technical writers, technical illustrators and sales
manager, but another is not the area of our interest for the purpose
of this study we are looking at the importance of Advertising
Agencies and their contribution to the marketing of goods and
services limiting the case study to insight communication agency
Ikega Lagos State different authors have contributed their ideas in
other to come out with a clear meaning of advertising agencies and
what advertising agency is all about.
11
Frank Jerkins (1984) sees advertising agencies as a body that
seems to represent the most glamorous part of the advertising
business. That the agencies is associated by many people with the
big national campaign or because the agencies is very often the
fountain of creative advertising. There are term of experts which
argument the work of the managers or advertising manager on the
other hand and that of the media owner on the other. George E.
Belch (1998) also postulated that advertising agencies are service
organization that specialize in planning and executing advertising
programme for its clients, that many major companies use and
advertising agency to assist them developing, preparing and
executing their promotional programme.
David Jobber (2004) reasoned that agencies is an
organization that specializes in providing services such as media
selection, creating work production and campaign planning on
clients.
2.1 STRUCTURE OF AN ADVERTSING AGENCY
Both David shelly Nicholl (1979) and David Nylen (1980) have
identified different but identical version of the structure of an
advertising agency. They both agreed that an advertising agency is
very much like other business organization. According to Nicholl an
12
agency has chairmen, mid level manager the clerks etc. and its
operations are more formally than bureaucracy.
An agency can be described as a media communication merchant.
Agencies like other business known have to file all the financial and
income reports required by the ministry of trade.
GIVEN BELOW IS A CLEAR STRUCTURE OF ADVERTISING AGENCY
SOURCE: INSIGHT COMMUNICATION JOURNAL, 2002
Account
management
Managing
Director
Planning
Production
and traffic
Media
Creative
Account
management
Researchers
Strategist
Traffic managers
ProductionManagers
Buyers
Planners
Lay out
Art Director
Copy writers
Commission, conduct &
interprete marketing
research for use in
campaign plan
Make the ads and get
the right ad to the right
time
Decide upon media and
negotiate price
Develop concept and
create copy and
artwork
Account Directors
Account Executives
ManagerAccount
13
2.2 FUNCTIONS OF THE BOARD MEMBERS
The advertising agencies is made up of the board directors charged
with the responsibility of decision making in any organization there
are stated below
i. The Board of Governors: Ordinarily like other organization, the
agency has a board of governors to oversea the affairs of the
agency
ii. The Chairman: This is the head of the agency and he is
followed by the managing director.
iii. The Account Director: This director is usually of the board rank
and overseas the handling of a group of account. Also, he settles
fees and budgets with clients and is the link between the client.
iv. The Account Executive: This is the deputy of the account
director. He carries out the decisions of the account director,
organizes market research, briefs copywriters and designers. He
sells his agency to clients and is the link between the clients and
agency.
v. Media Director or Media Executive: This officer specializes in
media e.g. what media will get, what advertising in what size,
shape, frequency etc. posters purchase of time and space in media,
etc. booking of space often to person in through the space buyers.
14
According to Leo Bogart (1967) that there are some specific
functions performed by the media directors, media executives all
have changed by higher caliber of staff and non-sophistication for
the following reasons
i. The internal complexity of advertising business has grown to vast
properties, thus, media practices and innovations can how be
handled only by the agency’s best brains
ii. Since war, research was given rise to least reservoir of
knowledge about product, consumers, communication and audience.
These require specialized, know-how, skills and training
iii. The computer as a new tool for decision making has not
changed decision-making but has compelled a new disciplined in
decision makers including new technical expertise and training.
2.3 CREATIVE DEPARTMENT
In the creative department, these are personal responsible for the
creation of output and they include;
1. Creative director: He is not usually of board member status. He is
responsible for all the creative output of the agency. He can be
called the creative supervisors, and he liaises between accounts
executive, the writers and the artists.
15
2. Copy chief: The copy chief hires and fires all writers and overseas
their work, often during the writing possible to the creative direction
but the post can be joined into one
3. Art director or art supervisor: Is in charge of the artist, he can
also combine with the post creative director / copy chief.
4. Production Manager: The production manager is in charge of all
actual providing and produce of the agency’s assorted skills e.g.
posters, brochures, net air, heavy breathing etc.
5. Part Buyer (Like Space Buyer): Operates under the production
manager i.e. he is responsible to the production manger and directly
works under the production manager.
2.4 ROLES OF ADVERTISING AGENCY
Advertising agency is the course to carry out the duty performs
some vital roles there are as follows: -
i. They develop and prepare advertising plan
ii. Arrange and contract for purchase of broadcast time and
magazines and newspaper space etc.
iii. Agencies tries to find customers for the goods and services of
many sellers;
iv. Study clients product to determine the advantage and
disadvantages and relates these to competitors.
16
v. The agency analyse the present and potential market for which
the product is adopted;
vi. Co-operation with clients people to ensure greatest effect from
advertising
vii. Formulation of advertising plans and execution of the plan to
clients
viii. There study all the media available to ensure which can be used
profitably to promote products.
2.5 FUNCTIONS OF ADVERTISING AGENCIES
In as much as there perform some vital role the advertising
agencies carry out some functions too
i. The advertising agency provides an outside objective view about
its clients product and services. This is because the agency is an
independent organization
ii. The advertising agencies are well equipped to create more
effective advertisement and select more media than if their client
were to undertakes advertising on there own. This is because the
agency is a combination of specialists such a copy writers, artists,
market analyst, media analyst, research people and advertising
specialists of all sorts who apply their skills and talents to make their
client advertisement successful.
17
iii. The agency maintains day to day contact with outside specialists
and suppliers who illustrates advertisements, this day to day
contacts enable the agency to know the latest advances in
technology, the most recent changes in production quality. This
knowledge is of immense benefit to their clients
iv. The agency saves money for their clients’ this is because most
media organization allow the agency to keep 15% of money paid for
use of their media. Thus 15% paid by their agency reduces the
amount of money their clients would pay
v. The agency bags a moral ethical finance and legal obligation to
their client. They are therefore expected to give their clients the best
work and expert objectives counseling and creative skills
2.6 CLIENTS CONTRIBUTION TO EFFICIENT PERFORMANCE OF
THE AGENCY AND VISE VERSA
There are some roles which can be played by client that will be of
help for agency to carry its work effectively:
a. Clients should openly share marketing objective with agencies.
b. Client should make the agency fill responsible
c. Client should always honour periodic meetings with agency
d. Promote adequate information relating to it product market
situations
e. Clients should allow agency official access to appropriate books
18
f. Avoid interfering with agencies media relationship.
The agency on the other hand should play its own part by
a. Keeping clients information secret
b. Showing high sense of honesty
c. Make its job detail aware to clients
d. Work closely with clients executives
e. Agency should not go in cure further expenses without clients
approval.
2.7 METHOD OF REMUNERATION ADVERTISING AGENCY
This method can also be a source of income to the advertising
agencies. According to Bouee and Area (1992), agencies derived
their income from the following services
i. Media Commission: Usually agencies are paid 15% of space
and time acquired from media
ii. Mark – Up: Agencies often buy, types, photographs, illustrating
etc. for magazines advertisement and since the 15% commission
is not applicable here, agencies often charge or add mark-up, to
17.5% to cost of the services.
iii. Fees and Retailers: If clients are too small and the 15%
commission cannot cover cost of serving, the agencies are
allowed to charge fees for the services
19
iv. Fees Commission Combination: Some agencies collect
commission and skill charge fees to cover their cost
2.8 TYPES OF ADVERTISING AGENCY
Advertising agencies are classified according to the type of
business they handle or the range of services they provide, thus;
a. General Consumer Agencies: Handles wide range of
services but mostly specializes in consumer products and works for
consumers goods manufactured.
b. Export Agencies: These agencies specialized in creating
advertisements for companies in the export business involved in
different language groups.
c. Foreign Agencies: specializes n the co-ordination of the
activities of selected foreign agencies in particular market.
d. Full services agencies: Engage in advertising, and
advertising functions
e. Industrial Agencies: Specialize in industrial goods
advertising and the advertisements are often trade journals
f. Creative Specialist Agencies: Specialize in the creative
segments of advertising
g. Fees Commission Combination: Some agencies collect
commission and skills charge fees to cover their cost.
20
2.9 HOW AGENCIES GAIN THEIR CLIENTS
Competition for account in the agency business is intense. Since
most companies have already such services each year while small
agencies may be writing to work with a new company & grow along
with it, larger agencies often do not become interested in these
firms until they are to spend at least the 1 million per year on
advertising. Many of the top 15 agencies won’t accept an account
that spends less than the 5 million per year. Once that expenditure
level is reached, competition for the account intensified.
In large agencies, most new business results from clients that
already have an agency but decides to change their relationship
thus agencies must constantly search and compete for new clients.
a. Referrals: Many goods agencies obtain new clients as a
result of referrals from existing clients, media representative and
even other agencies. These agencies good working relationship
with their clients, the media and out side parties that might provide
business to them.
b. Solicitations: One of the more common ways to gain new
business is through direct solicitation in smaller agencies, the
president may solicit new accounts. In most large agencies, a new
business development group seeks one and establishes contact
21
with new clients. The group is responsible for writing solicitation
letters, making cold walls and follow up on lead.
c. Presentation: A basic goal of the new business development
group is to receive an invitation from a company to make a
presentation, this quit the agency the opportunity to sell itself to
describe its experience, personnel, capabilities and operating
procedures, as well as to demonstrate it previous work. The agency
may be asked to make a speculative presentation in which it
examines the clients marketing situations and propose a tentative
communications campaign.
d. Public Relation: Agencies also seeks business through
publicity / public relations efforts. They often participate in civic and
social groups and work with charitable organization at cost without
pay to earn respect in community.
e. Image and Reputation: Perhaps the most effective way on
agency can gain new business is through its reputation. Agency that
consistently develop excellence campaign are often approaches by
clients.
22
END NOTES
P. Kotler (1988), Marketing Management (Eglewood Cliff; Prentice
Hall inc.), Page 50 – 55
O. Hudson, (1978) Strategic Marketing Management 1st Edition,
(Davidson and Fred Publisher). Page 45 – 50
David Stokes (1999) Discovering marketing activities learning
Approach (London DP publication Aldine Wiz Saw).
Hamza Ibrahim, (2000) Introduction to Marketing (Ibadan, University
press Publishers), Page 30 – 34.
Jefkins Frank, (1984) Advertising today 3rd Edition, (High Holborn,
Bell ad Bain ltd), Page 30 – 62.
Jobbes David, (2004) Principal of Marketing 4th Edition, (New York,
McGraw Hill companies) Page 441 – 443.
23
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
It’s been defined by Longman dictionary (2003) as “the set of
methods and principles that are used when studying a particular
kind of work”. It is usually done through the very method applied in
the course of research.
The purpose in this chapter is to know the sources of data used in
carrying out this research work. The research instrument used
shows how questionnaire was designed and administered.
3.1 SOURCE OF DATA COLLECTION
Information on data for this research work were collected from two
basic sources namely:
i. Primary source and
ii. Secondary source
PRIMARY SOURCE: The research gathered data through personal
contacts and interview and serving of questionnaire to
members/employees of the company.
SECONDARY SOURCE: In this case information relevant to the
research topic is gotten from manuals made available as a result of co-
operation enjoyed from the company, brochure, speeches presented at
seminars, library, business journals, and business newspaper were all
consulted. 24
3.2 RESEARCH INSTRUMENT
The data for this project work were collected with the aid of the
following instruments.
1. Open-ended questions (personal opinion needed).
2. Close-ended question were also used
a. Dycotomous Choice: The respondent is allowed to answer positive
or negative
b. Multiple Choice: The respondent is quiet the opportunity to tick one
out of several answers.
3.3 POPULATION
Population size refers to the total numbers of people that the
researches intend to focus, to the course of the study. The
population of this research comprises of the staff of insight
communication Lagos and Clients.
3.4 SAMPLE SIZE
Sampling involves taking part of the population to study is order to
draw conclusion on the entire population. Among the chosen were
the staffs of Insight Communication Lagos. The sample chose was
reached through random sampling the size of the sample to 50
members of the population chosen.
25
3.5 QUESTIONNAIRE DESIGN
A questionnaire is a document used in survey. It contains series of
questions comprehensive required data or information.
A questionnaire is defined by Christiana (1981, pg. 205) “is a
method of obtaining specific information about a defined problem so
that the data after analysis and interprete result in a better
appreciation of the problem.
In designing the questionnaire, for this research work, the
researcher used closed ended question and it provided a list of
possible answers from which respondents are required to tick the
responses they feel is right.
The researcher decided to use this approach so that respondents
will have no difficulties in tackling the question and to make the
analysis of data, obtained less cumbersome as well as reducing or
eliminating the occurrence of the errors as much as possible.
3.6 QUESTIONNAIRE DISTRIBUTION AND COLLECTION
The questionnaires were distributed by hand personally from all the
members of the sample.
A period of 10days was used for this distribution and collection.
A total of 50 questionnaires were distributed and 30 were filled and
returned.
26
CHAPTER FOUR
PRESENTATION AND DATA ANALYSIS
4.0 INTRODUCTION
To get the required formation, the researcher used
questionnaire to obtain relevant information. The major goal of this
exercise is to obtain information on the topic “study of contribution of
advertising agencies for effective marketing of goods and services
using insight communication agency Ikeja Lagos.
For this purpose, the researcher administered fifty (50)
questionnaires aim at all the research work, out of the number given
only (30) were dully completed and returned while twenty (20) were
not returned.
The responses which from the raw data of the research is presented
in the table below along with the interpretation.
For the analysis of data, the researcher used the percentage
method.
Table 1
Responses in respect of sex
Sex Respondent Percentage %
Male 21 60
Female 9 40
Total 30 100 %
SOURCE: SURVEY DATA 2009
27
Analysis: 60% of the respondents, falls on the Males and the
lowest percentage of the respondent which 40% percentage falls on
the female.
Table 2
Age distribution of Respondents
Variables Responses Percentage %
20 – 25 3 10
25 – 30 5 17
30 – 35 2 7
35 – 40 20 66
Total 30 100%
SOURCE: SURVEY DATA 2009
Analysis: 10% of the respondents falls within the age of 20 –
25years, 17% of the respondent falls with the range of 25 – 30years
while 7% also falls within 30 - 35 years. The greater percentage of
the respondent which is 66% fall within 35 – 40years
Table 3
Marital Status:
Marital Status Respondent Percentage %
Single 8 35
Married 22 65
Total 30 100 %
SOURCE: SURVEY DATA, 2009
28
Analysis: 35% of the respondent falls within the single staff while
the greater of the percentage which is 65% falls within the married
respondents.
Table 4
Qualification of staff in the organization
Variables Responses Percentage %
M.sc / MBA 5 17
B.sc / HND 10 33
ND / NCE 7 23
WAEC / SSCE 8 27
Total 30 100%
Analysis: 17% of the staff falls within M.sc/MBA while the greater
percentage of staff which is 33% fall with B.sc/HND.
Table 5
Position held in the organization
Variables Responses Percentage %
Senior Staff 16 53
Junior staff 14 47
Total 30 100 %
SOURCE: SURVEY DATA 2009
SOURCE: SURVEY DATA 2009
29
Analysis: This implies that the 53% goes to the senior staff in the
position held in the organization while the lower percentage of 47%
goes to the Junior Staff.
Table 6
Respondents’ response to whether roles played by advertising
agencies affect organization positively, in terms of increase sales of
goods and services.
Variables Responses Percentage %
Positive 18 67
Negative 12 33
Total 30 100 %
SOURCE: SURVEY DATA 2009
Analysis: 67% of the respondent are of view that roles played by ad
agency affect the organization positively while 33% are of the
opinion that the ad-agency roles does not affect the organization is
a positive way.
Table 7
Respondent response to whether ad-agency contribution made are
relevant to organization growth and development.
Variables Responses Percentage %
Positive 17 70
Negative 13 30
Total 30 100 %
SOURCE: SURVEY DATA 2009
30
Analysis: 70% of the respondents are on the view that contributions
of agency are relevant to organizational growth and development
while the percentage of respondent in the negative side fall within
30% and been the lowest percentage shows that those respondent
disagree on the view that the contribution made by advertising
agency does not or is not relevant in organization growth and
development.
Table 8
Respondent response whether client do always employ the
advertising agencies assistance
Variables Responses Percentage %
Positive 19 65
Negative 11 35
Total 30 100 %
SOURCE: SURVEY DATA 2009
Analysis: 65% percent of respondent agrees that client always
employ their help as an advertising agency while the lower side of
the respondent falls within 35% do not accept that client always
employ their service.
31
Table 9
Respondent response whether the advertising agency has been encountered any form of
disagreement with client
Variables Responses Percentage %
Positive 30 100
Negative 0 0
Total 30 100 %
SOURCE: SURVEY DATA 2009
Analysis: From the above table, 30% of the respondent agreed that
their company that is the agency has never had any form of
disagreement with their client while no percentage are on the view
that they do have disagreement with client. Its therefore concluded
that the agency has been in very good relationship with their client
Table 10
Respondent response as to what advertising media does the
agency adopt marketing the product of their client known to the public
Variable Responses Percentage %
Radio 15 70
Television 5 10
Newspaper 5 10
Magazine 5 10
Total 30 100
SOURCE: SURVEY DATA 2009
32
Analysis: From the above table majority of 70% of the respondents
agreed that the agency used the Radio as source of its advertising
media while the remaining 30% percent goes to the respondent with
view that the agency uses the Television, Newspaper and Magazine
respectively for the advertisement of client product.
I therefore conclude that the agency used the radio mostly for
advertising client product as this is the only source that can take or
make information get to the remote areas.
Table 11
Respondent respond on what motivate client to seek the assistance of advertising
agencies.
Variables Responses Percentage %
Increase in volume of sales 15 45
Gaining Market share 7 4
Create awareness of her product 9 8
Create Market for product 14 43
Total 30 100%
SOURCE: SURVEY DATA 2009
Analysis: From the above table, majority of 45% percent respondent
agrees that increase in volume of sales motivate client to seek the
assistance of advertising agencies, therefore I conclude that
increase in sales volume of client product motivate client to seek the
help of the ad-agencies to that the company can increase the sales
of her product.
33
Table 12
Respondent response, on the present stage of the ad-agency last
client in the product life circle.
Variables Responses Percentage %
Introductory stage 0 0
Maturity stage 15 50
Growth stage 15 50
Decline stage 0 0
Total 30 100%
SOURCE: SURVEY DATA 2009
Analysis: From the above table 50% of the respondent agrees that
this last client is in the majority stage and also 50% percent of the
Respondent agrees that their clients are in response. On whether
their clients are in introductory and decline stage. I therefore
conclude that the present stage in the product life cycle of the client
on the majority and the growth stage because this one has the
highest percentage of responses.
Table 13
Respondent response as to what has been the recommendation of
clients towards the advertising agencies
34
Variables Responses Percentage %
Good 30 100
Poor 0 0
Fair 0 0
Total 30 100%
SOURCE: SURVEY DATA 2009
Analysis: From the table above majority of 100% of the respondent
agreed that the client recommendation towards the ad-agency is a
good one and there are no responses on whether fair or poor. I
therefore conclude that the ad-agencies are organization that are
very much recommended by client for their services given.
Table 14
Respondent response to whether client always makes the
advertising agency feel responsible to carrying out their duties.
Variables Responses Percentage %
Positive 25 70
Negative 5 30
Total 30 100%
SOURCE: SURVEY DATA 2009
35
Analysis: From the table above, majority 70% of the respondent
agreed that client make them feel very responsible while 30%
agreed that client makes them fell irresponsible in discharging their
duties. I therefore conclude that client makes the advertising agency
feel responsible and that makes them carry out their duties
successfully.
Table 15
Respondent response as to whether information released by client
is of help to the advertising agencies
Variables Responses Percentage %
Positive 30 100
negative 0 0
Total 30 100%
SOURCE: SURVEY DATA 2009
Analysis: From the above table 100% of the respondent agreed that
information given to them by client are always been of help to them
in carrying out their duties while no respondent agreed that the
information given by respondent has no use for them. I therefore
conclude that all information given by the client is been of help to
the advertising agency to accomplish his work.
36
4.1 TEST OF HYPOTHESIS
Base on the statement of hypothesis in chapter 1, the table size
shall be reproduced.
The responses whether roles played by advertising agencies affect organization
positively in terms of increasing sales of goods and services.
Opinion Manager Senior staff Junior staff Total
Positive 7 5 6 18
Negative 3 3 6 12
Total 10 8 12 30
SOURCE: SURVEY DATA 2009
Using chi-square
X2 = (O – E) 2
Row total x Column total
POSITIVE NEGATIVE
Manager 18 x 10 12 X 10
Senior Staff 18 x 8 12 x 8
Junior Staff 18 x 12 12 x 12
CONTINGENCY TABLE
Opinion Manager Senior staff Junior staff
E
Grand total
30 30= 6 = 4
30 30= 4.8 = 3.2
30 30= 7.2 = 4.8
37
Positive O7E (6) O5E (4.8) O6E (7.2)
Negative 3 (4) 3 (3.2) 6 (4.8)
Chi – square
X2 = (O – E) 2
X2 = (7 – 6) 2
X2 = (5 – 4.8) 2
X2 = (6 – 7.2) 2
X2 = (3 – 4) 2
X2 = (3 – 3.2) 2
X2 = (6 – 4.8) 2
X2 = 0.16 + 0.008 + 0.2 + 0.25 + 0.013 + 0.3 = 0.931
Determining the degree of freedom
D.F (R – 1) (K – 1) = (2 – 1) (3 – 1)
1 x 2 = 2
Let our level of significance be 5% is equal 5.99
DECISION RULE
We reject Ho: Since the calculated figure is greater than the table
value so the roles played by advertising agencies affect the
E
= 0.166
= 0.0084.8
= 0.27.2
= 0.254
= 0.163.2
= 0.34.8
38
organization positively in term of increasing the sales of goods and
services.
The second test of hypothesis table seven shall be reproduced.
Responses to whether advertising agencies contribution made are
in any way relevant to organization growth and development
Opinion Manager Senior staff Junior staff Total
Positive 10 4 3 17
Negative 3 6 4 13
Total 13 10 7 30
SOURCE: SURVEY DATA
Using the chi-square method
X2 = (O – E) 2
Row total x Column total
POSITIVE NEGATIVE
Manager 17 x 13 13 X 13
Senior Staff 17 x 10 13x 10
Junior Staff 17 x 7 13 x 7
E
Grand total
30 30= 7.3 = 5.6
30 30= 5.6 = 4.3
30 30= 3.9 = 3.03
39
CONTINGENCY TABLE
Opinion Manager Senior staff Junior staff
Positive O10E (7.3) O4E (5.6) O3E (3.9)
Negative 3 (5.6) 6 (4.3) 4 (3.0)
Chi-square
X2 = (O – E) 2
X2 = (10 – 7.3) 2
X2 = (4 – 5.6) 2
X2 = (3 – 3.9) 2
X2 = (3 – 5.6) 2
X2 = (6 – 4.3) 2
X2 = (4 – 3.0) 2
X2 = 0.99 + 0.45 + 0.2 + 1.20 + 0.67 + 0.33 = 3.84
Determining the degree of freedom
D.F (R – 1) (K – 1) = (2 – 1) (3 – 1)
1 x 2 = 2
Let our level of significance be 5% is equal 5.99
E
= 0.997.3
= 0.455.6
= 0.23.9
= 1.205.6
= 0.674.3
= 0.333.0
40
DECISION RULE
We reject Ho: Since the calculated figure is greater than the table
value, so the contribution made by the advertising agency is very
relevant to organization growth and development.
4.2 RESEARCH FINDINGS
The following findings were obtained from both the data analysed
and the oral interview and questionnaire already administered that;
a. That the roles played by advertising agencies has contributed alot in
the marketing of good and services of different organizations.
b. That due to the changes made in sales of good and services client
recommends the services of advertising agencies very much.
c. That client contribution of the advertising agencies has really the
development and growth of client product
d. That the advertising agency never encountered any disagreement
with client shows the trust, and the agency can be related upon at
anytime.
e. That client employing the services of the advertising agencies
regularly is as the result of their many achievement in the past.
41
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY
In summary the study of contribution of the advertising agency to
the effective marketing of good and services can not be over
emphasized. Advertising agency as we have seen from the
definition. We say firm which design advert for client who wish to
42
advertise and arrange for the advertisement to be carried by media,
despite the roles and contribution made by the ad-agencies, client
may still not experience changes if the ad-agencies do not use a
strategies means so to achieve their objective.
After the introduction of this topic, its objectives and general
problems stated, assumption hypothesis were put forward to guide
the researcher.
Under the chapter two which is the literature review, the researcher
have re-introduced what other authors have written in advertising
agencies, as it can be seen in the preceding chapter the researcher
discussed the target population of the study, sample size, source of
data gathered and how the collected data was analyzed.
By so doing the researcher discovered that insight communication
advertising agencies really made its efforts to see that her client
meet up with the marketing of her product. How this client product
would have been in low sales and they would have been no
development and growth it client had no knowledge of the
advertising agencies who has help in promoting their product.
5.2 CONCLUSION
Based on the findings of this study the following conclusion can be
rightly made that the roles and contribution of the advertising
43
agencies has positive effect in the marketing of goods and services
of their clients.
From the responses drawn from the respondents, the study of
general function roles and contribution of an advertising agency was
done base on the result of this research and analysis of data, the
readers of this project can easily draw out conclusion that;
i. Advertising agency play a vital roles toward the marketing of
good and services
ii. Advertising agency contributions leads to the growth and
development of firms which lead to the survival of an
organization.
The roles of advertising agency when carrying out their duties, is
said to be indispensable because there try as much as possible to
protect the image of their clients.
5.3 RECOMMENDATION
On the basis of the findings and conclusion from this research, the
following recommendations were made;
Recommendation to clients or organization: Organization should
stop viewing advertising agency as means of procurement of
wasting of fund there should realize the importance of an
advertising agency to an organization or firm.
44
The attitude of ignoring the services of an advertising agency will
not take an organization any where. New industries or firms are
been established everyday and as a result there is competition
among industries. So this companies need the assistance of the
advertising agency to put the companies in a competitive shape as
it will help notify the prospective customers and thereby increase in
good and services of the company
BIBLIOGRAPHY
Cundiff W. Edward, (1998), Fundamental of Modern Marketing, 4th Edition
(prentice hall of India, Private limited) page
420 – 435
Hamza Ibrahim, (2000), Introduction to Marketing (Ibadan, University
press Publishers), page 31 – 34
Insight communication agency, Journal, (2006)
45
Jobbes David, (2004) Principal of Marketing 4th Edition, (New York,
McGraw hill companies), page 441 – 443
Jefkins Frank, (1984) Advertising today 3rd Edition, (High Holborn; Bell
and Bain Ltd), page 30 – 62
Online information www.advertisingagency.com
O. Hudson, (1978), Strategic Marketing Management, 1st Edition,
(Davidson and Fred Publishers), page 45 -
50
P. Kotler, (1988), Marketing Management, (Eglewood Cliff; Prentice hall
Inc) page 50 – 55
Philip Kotler (2001), Principles of Marketing, 9th Edition,
(London; Prentice hall), page 200
William J. Stanton (1995), Fundamental of Marketing, (New York;
MacGraw hill Book Company) page 105 –
109
APPENDIX I
School of Business Studies
Department of Marketing,
Federal Polytechnic Nasarawa,
P.M.B 001, Nasarawa,
Nasarawa State.
8th August, 2009.
Dear Sir/Madam
46
I am a graduating student of the above mentioned department in Federal
Polytechnic Nasarawa, concluding a research work on the topic, “The
study of Advertising agencies on the effective Marketing of good and
services” in partial fulfillment of the requirements for the award of Higher
National Diploma in Marketing.
In this regard, you are expected to please provide accurate answers to
the question, your response will assist the researcher in no small way to
arrive at good findings and recommendations.
All responses should be treated as highly confidential and not be used for
any other purpose rather than this project work.
Yours faithfully,
Mgbe Philip Obi
APPENDIX II
1. Sex:
Male ( ) Female ( )
2. Age:
a. 20 – 25
b. 25 – 30
c. 30 – 35
d. 35 – 40
47
3. Marital Status:
a. Single ( )
b. Married ( )
4. Qualification:
a. M. Sc / MBA
b. B. Sc / HND
c. ND / NCE
d. WAEC / SSCE
5. Position held:
a. Senior Staff
b. Junior Staff
6. Do you think the roles played by advertising agencies effect
organizations positively, in terms of increasing the sales of their
goods and services
a. Positive ( )
b. Negative ( )
7. Do you those the advertising agencies contribution made to an
organization relevant in the firm development and growth
48
a. Positive ( )
b. Negative ( )
8. Do client always employ the assistance of your company as an
advertising agency
a. Positive ( )
b. Negative ( )
9. Has your company encountered any disagreement with clients?
a. Positive ( )
b. Negative ( )
49
10. What advertising media does your company adopt to make the
product of clients known to the public?
a. Radio
b. Television
c. Newspaper
d. Magazine.
11. What do you think motivate client to seek the assistance of
advertising agencies
a. Increase in volume of sales
b. Gaining market share
c. Create awareness of his product
d. To create market for his product
12. What is the present stage of your last clients in its product life
circle?
a. Introductory Stage
b. Growth Stage
c. Maturity Stage
d. Decline Stage
50
13. What are the recommendations of clients towards the
advertising agencies?
a. Good
b. Poor
c. Fair
14. Do clients always make you the agency responsible when carry
out your work.
a. Positive ( )
b. Negative ( )
15. Information released by client has the advertising agency
making proper use of this information to achieve her client
objectives.
a. Positive ( )
b. Negative ( )
51