Doing or not doing advertising

Doing business without advertising is like trying to make yourself noticed to a girl in the dark. You know what you are doing, but nobody else does. (Steuart Henderson Britt).

The first condition for a product to be sold is that people know it, and who can get this idea better, if not advertising. According to statistics, we spend a year and a half of our lifes watching commercials … and the rest eating what we see in commercials.

About all customers have smaller budgets announced in 2009, at least until they figure out how the things are going. It’s more a precaution than a direct effect of the so-called crisis. With this picture in the foreground, we have thought to inquire how it works among advertising consumers – companies in Galati and Braila and we structured a questionnaire which was applied through a telephone survey between July 15 – August 15, 2009.

The research lot included 204 companies (located in Galati and Braila, with activity such as trade, hotels and restaurants, financial, banking and insurance, real estate and other services, public administration, etc.), of which 51 were accepted to answer questions, which would indicate a response rate of 25%. The statistical processing of data analysis was used to program SPSS.

According to the results, 29.4% of companies prefer to deal with staff to promote, without resorting to specialized agencies, while 70.6% hire advertising agencies.

Among the reasons for not turning to agencies, respondents cited: increased aggression advertisers to promote specific offers, high costs of the proposed campaign, the results below expectations in relation to the amounts invested in advertising, achieved notoriety that would not justify the additional costs advertising, focusing on direct sales, customer identification and promotion of products / services through our own sales force.

Among the advantages that companies would have, if they use the services of an advertising agency, would include advertising agencies have specialists who can perform specific activities (eg research, creative work) in better conditions than the company staff. The agency can come with a objective point of view about solving a business problem, and with experience gained from working with various clients who have been in different situations, have a purchasing power of advertising space greater than that of a firms. They also receive a significant discount, making and business expenses to be less, the customer can opt to quit his agency’s services. It can be argued that an agency will make every effort to do a good job and lead the client to resort to it.

But entrusting advertising agency specialized function but also has some disadvantages: loss of control over your activity, reducing flexibility pubicitatii, conflicts when they impume agency working methods, customer inability to exercise control or coordination much on advertising.

In terms of advertising the products or services required by companies in Galati and Braila, the situation is as follows: 35.5% of companies prefer to invest in advertising in print media (newspaper advertisements), 19.7% of companies invest their financial resources for promoting in the print (brochures, catalogs, brochures and other presentation materials) and 15.8% of production companies focused on advertising (banners, street advertising, billboards, light boxes, etc.).

Regarding the relationship with advertising agencies, few companies have a constant relationship with one agency, the selection criteria is price offered by them. The agencies mentioned were: Viata Libera (a degree of recognition of 40%), followed by Besign Concept (a degree of recognition of 15%). The other mentioned were: Publiserv, ProTV, Raid, Zile si Nopti, Yellow Pages, ROMPRINT and Extreme Design.

Noteworthy is the confusion created between instruments of promotion (newspaper, magazine, etc) and the advertising companies.

Among the difficulties encountered by consumers of advertising Galati and Braila were highlighted: failure on the deadlines for the works, the price further increased from what was agreed initially, questionable quality of work, design inconsistencies between the proposed and final work.

In the analysis we can say that: agencies have not clearly outlined the services they offer (there confusion between communication channels and advertising agencies that manage them), customers are not inclined to develop a long term relationship with a agency relationship that would help create a distinct image in the market, offers promotion agency is aggressively, which sometimes irritates consumer advertising companies, the degree of notoriety that a company can make it reach to believe that the promotion was not is needed locally, disappointed by the dubious benefits of advertising agencies, clients have decided to run their business on their own promotion company.
In conclusion, we know that the link between advertising products or services and people. But to be effective, it must correspond to products and be relevant to people in expressing and sustaining a competitive advantage.


Posted on September 14, 2009 in Editorials

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