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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

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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

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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

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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.

___________________
MGBE PHILIP OBI

___________________

SIGNATURE

___________________

DATE

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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.

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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.

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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

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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.

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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.

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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
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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

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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

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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.

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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

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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


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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.

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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

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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.

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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.

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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.

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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.

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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

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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.

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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

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agency has chairmen, mid level manager the clerks etc. and its

operations are more formally than bureaucracy. Account


management
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

Commission, conduct &


Researchers interprete marketing
research for use in
Planning Strategist
campaign plan

Production Traffic
managers
and traffic Make the ads and get
Production the right ad to the right
Managers
Media time
Buyers
Managing
Director Planners Decide upon media and
negotiate price
Lay out
Creative
Develop concept and
Art Director
create copy and

Copy writers artwork

Account
Account Account Manager
management Directors Executives Account

SOURCE: INSIGHT COMMUNICATION JOURNAL, 2002

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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.

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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.

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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.

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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.

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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

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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

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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.

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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

Analysis: 35% of the respondent falls within the single staff while

the greater of the percentage which is 65% falls within the married

respondents.

28
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%
SOURCE: SURVEY DATA 2009

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

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

29
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

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

30
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.

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

31
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

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
32
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.

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.

33
Table 13

Respondent response as to what has been the recommendation of

clients towards the advertising agencies

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

Analysis: From the table above, majority 70% of the respondent

agreed that client make them feel very responsible while 30%
34
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.

4.1 TEST OF HYPOTHESIS

Base on the statement of hypothesis in chapter 1, the table size

shall be reproduced.

35
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
E

Row total x Column total


Grand total

POSITIVE NEGATIVE

Manager 18 x 10 = 6 12 X 10 = 4
30 30

Senior Staff 18 x 8 = 4.8 12 x 8 = 3.2


30 30

Junior Staff 18 x 12 = 7.2 12 x 12 = 4.8


30 30
CONTINGENCY TABLE

Opinion Manager Senior staff Junior staff


O E O E O E
Positive 7 (6) 5 (4.8) 6 (7.2)
Negative 3 (4) 3 (3.2) 6 (4.8)

Chi – square

X2 = (O – E) 2
E 36
X2 = (7 – 6) 2= 0.16
6

X2 = (5 – 4.8)=2 0.008
4.8

X2 = (6 – 7.2)=2 0.2
7.2
X2 = (3 – 4) 2= 0.25
4

X2 = (3 – 3.2)=2 0.16
3.2

X2 = (6 – 4.8)=2 0.3
4.8
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)

1x2=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

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

37
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
E

Row total x Column total


Grand total

POSITIVE NEGATIVE

Manager 17 x 13 = 7.3 13 X 13 = 5.6


30 30

Senior Staff 17 x 10= 5.6 13x 10 = 4.3


30 30

Junior Staff 17 x 7 = 3.9 13 x 7 = 3.03


30 30

CONTINGENCY TABLE

Opinion Manager Senior staff Junior staff


O
Positive 10E (7.3) O E
4 (5.6) O E
3 (3.9)
Negative 3 (5.6) 6 (4.3) 4 (3.0)

Chi-square

X2 = (O – E) 2
E

38
X2 = (10 – 7.3)=2 0.99
7.3

X2 = (4 – 5.6)=2 0.45
5.6
X2 = (3 – 3.9)=2 0.2
3.9

X2 = (3 – 5.6)=2 1.20
5.6

X2 = (6 – 4.3)=2 0.67
4.3

X2 = (4 – 3.0)=2 0.33
3.0

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)

1x2=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 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;


39
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.

40
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

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

41
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

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

42
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.

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

43
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)

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

44
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

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.

45
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

3. Marital Status:

a. Single ( )

b. Married ( )

4. Qualification:
46
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

a. Positive ( )

b. Negative ( )

8. Do client always employ the assistance of your company as an

advertising agency

a. Positive ( )

47
b. Negative ( )

9. Has your company encountered any disagreement with clients?

a. Positive ( )

b. Negative ( )

48
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

49
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 ( )

50