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P3 – Explain the role of advertising agencies in the development of a successful promotion campaign

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P3 – Explain the role of advertising agencies in the development of a successful promotion campaign - Unit 9 Creative Product Promotion

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The roles of advertising agencies

Advertising agencies can be defined as organisation or business whose sole purpose is to help other
businesses or companies create, plan and handle advertising for their business.

The Promotional campaign for Nestlé Shreddies to create brand awareness was called the
‘Shreddies Knitting Nanas’ campaign

Steps in planning advertising

Set advertising objectives:

Advertising objectives can be defined as the aim that a business wants to accomplish or get out of
carrying out their advertisement. Advertising agencies will first set advertising objectives; such
objectives help the agency to meet their goal properly and ensure that all members of the team know
what their role is and what they need to complete by a certain time. This also makes the agency more
efficient because everyone is set objectives by the agency so if there are confused with what they
should be doing they could always ask the agency. Nestlé Shreddies also used advertising objectives
to help them when they were making their promotional campaign for their products such as the
Shreddies cereal or a new product that they were wanting to unveil. There are many objectives that
Nestlé may have wanted to accomplish from the advertisement; one advertising objective that they
may have set themselves is to create brand awareness so they could increase their revenue.

Decide on in-house advertising or agency:

In-house advertising can be defined as when a business chooses to plan and carryout their
advertisement themselves. Agency advertising can be defined as when a business chooses to allow an
external business or company to plan and carry out their campaign on their behalf. At this step the
business or company will have to decide whether they want to do in-house advertising which means
a department or people within their organisation plan and create the promotional campaign or if they
would like agency advertising which will mean another external business will do the promotional
campaign for them. There are both advantages and disadvantages of both in house and agency
advertising. One advantage of in house advertising is that it will be cheaper compared to paying an
external business to do the campaign thus the business will save a lot of money however, the quality
of the promotional campaign may not be high as one produced by the agency who are qualified and
specialise in advertising unlike people or departments within the business itself. An advantage of
agency advertising is the quality of the promotional campaign will be high as it’s what they do on a
daily basis so they have all the necessary experience of making a campaign however, agency
advertising is very costly and can be very expensive. Nestlé Shreddies used in-house advertising as
they are a multinational company who had the funds to do the promotional campaign within their
company without having to pay an agency. It also meant that Nestlé can make adjustments to their
campaign whenever they wanted as it was done within the business and not externally.

Establish a tentative advertising budget:

Advertising budget can be defined as the amount of money or expenses the business has put aside to
use on an advertising campaign. At this step the business will have to set an advertising budget that
will cover the costs of planning and creating the promotional campaign to create brand awareness for
their Shreddies cereal. If the business choose to have agency advertising then this will mean that their
advertising budget will be high as agency advertising is very expensive. However, if the business chose
to do to in house advertising then this will bring the budget down because it would be cheaper as the
business wouldn’t have to pay another agency instead will only have to pay for the wages of staff

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