How to get the Best from Your Advertising Agency

Sen Gupta Subroto

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: This paper deals with the advertiser-advertising agency relationship which has been described as the “critical partnership” for companies where the marketing function is of substantial importance. There are numerous structural problems in the relationship between the advertiser and the advertising agency in India. These problems stem from such factors as the nature of the financial relationship between advertiser and agency based on the 15% commission; they stem from the acute degree of competition, sometimes bordering on unhealthy competition, in the agency world. Most of them stem from the fact that many advertisers in India are only now emerging into a buyers’ market and have not gained enough maturity in the marketing function to develop productive relationships with their advertising agency. The writer gives numerous real life illustrations to emphasize his arguments about the nature of a productive relationship between advertiser and agency. He puts forward 8 basic requirements for such a relationship. The entire problem has acquired a greater degree of topicality because of recent MRTP inquiries questioning the financial basis of the agency system.

Date: 1977-11-01
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