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 PROJECT SUPERVISOR ___________________ MR J.T SOLOMON PROJECT CO-ORDINATOR ___________________ MR J T SOLOMON HEAD OF DEPARTMENT

____________________ SIGN/ DATE

____________________ SIGN/ DATE

____________________ SIGN/ DATE

___________________ MR S.S YARO COURSE COORDINATOR _____________________ A.O ALEJE EXTERNAL EXAMINER

____________________ SIGN/ DATE

____________________ SIGN/DATE

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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 Pagei ii iii iv v vi

Approval Page- CertificationDeclaration-

Letter of TransmittalDedication-

AcknowledgementAbstract-

- vii-viii ix x

Table of Content-

CHAPTER ONE INTRODUCTION 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Background of study- 1 2 3-4 5 5 6 7 7 8-9 10

Historical Background of the case StudyStatement of the ProblemStatement of ObjectiveStatement of HypothesisSignificance of the StudyScope of the Studyx

-

-

Limitation of the Study Definition of TermsEnd Notes -

CHAPER TWO LITERATURE REVIEW
2.0

Introduction-

-

-

-

-

-

-

-

-

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2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8

Structure of Advertising Agency-

- 12-13 14 15 16 17 18 19

Functions of the Board Members- Creative Departments-

Roles of Advertising Agencies -

Functions of Advertising Agencies -

Clients Contribution to Efficient Performance - Method of Remunerating Ad. Agency - How Agency gain their ClientEnd Notes- -

- 20-22 23

CHAPTER THREE RESEARCH METHODOLOGY
3.0

Introduction-

-

-

-

-

-

-

-

-

24 24 25 25 25 26 26

3.1 3.2 3.3 3.4 3.5 3.6

Source of data CollectionResearch Instrument- Population-Sample Size-

Questionnaire Design- -

Questionnaire distribution and collectionxi

CHAPTER FOUR PRESENTATION AND DATA ANALYSIS
4.0

Introduction-

-

-

-

-

-

-

-

- 27-36 - 37-41 - 41-42

4.1 4.2

Test of hypothesis: Chi-Square Method- Research Findings-

CHAPTER FIVE
5.0

Summary, Conclusion and Recommendation- Summary- Conclusion-

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-

43 43 44 45 46 47 48-51

5.1 5.2 5.3

Recommendation Bibliography Appendix I Appendix ii

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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 i.

STATEMENT OF OBJECTIVES 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 Planning Production and traffic Media Managing Director Creative Strategist Traffic managers Production Managers Buyers Planners Lay out Art Director Copy writers Account management Account Directors Develop concept and create copy and artwork Decide upon media and negotiate price interprete marketing research for use in campaign plan Make the ads and get the right ad to the right time

Account Executives

Manager 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 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

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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
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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.

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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.

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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. ii. Primary source and 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 cooperation enjoyed from the company, brochure, speeches presented at seminars, library, business journals, and business newspaper were all consulted.
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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.

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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.

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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

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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.
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Table 4 Qualification of staff in the organization Variables M.sc / MBA B.sc / HND ND / NCE WAEC / SSCE Total Responses 5 10 7 8 30 Percentage % 17 33 23 27 100%

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 Positive Responses 18
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Percentage % 67

Negative 12 Total 30 SOURCE: SURVEY DATA 2009

33 100 %

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

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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
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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 Increase in volume of sales Gaining Market share Create awareness of her product Create Market for product
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Responses 15 7 9 14

Percentage % 45 4 8 43

Total SOURCE: SURVEY DATA 2009

30

100%

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.

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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%
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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.

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The responses whether roles played by advertising agencies affect organization positively in terms of increasing sales of goods and services. Opinion Manager Senior staff Positive 7 5 Negative 3 3 Total 10 8 SOURCE: SURVEY DATA 2009 Using chi-square X2 = (O – E) 2 E Junior staff 6 6 12 Total 18 12 30

Row total x Column total Grand total POSITIVE Manager 18 x 10 = 6 30 NEGATIVE 12 X 10 = 4 30

Senior Staff 18 x 8 = 4.8 30

12 x 8 30

= 3.2

Junior Staff 18 x 12 = 7.2 30 CONTINGENCY TABLE Opinion Positive Negative Manager O E 7 (6) 3 (4) Senior staff O E 5 (4.8) 3 (3.2)

12 x 12 = 4.8 30

Junior staff O E 6 (7.2) 6 (4.8)

Chi – square X2 = (O – E) 2 E
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X2 = (7 – 6) 2= 0.16 6
2 X2 = (5 – 4.8)= 0.008 4.8 2 X2 = (6 – 7.2)= 0.2 7.2 X2 = (3 – 4) 2= 0.25 4 2 X2 = (3 – 3.2)= 0.16 3.2 2 X2 = (6 – 4.8)= 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
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Opinion Manager Senior staff Positive 10 4 Negative 3 6 Total 13 10 SOURCE: SURVEY DATA Using the chi-square method X2 = (O – E) 2 E

Junior staff 3 4 7

Total 17 13 30

Row total x Column total Grand total POSITIVE Manager 17 x 13 = 7.3 30 NEGATIVE 13 X 13 = 5.6 30

Senior Staff 17 x 10= 5.6 30

13x 10 = 4.3 30

Junior Staff 17 x 7 = 3.9 30

13 x 7 30

= 3.03

CONTINGENCY TABLE Opinion Positive Negative Manager O 10E (7.3) 3 (5.6) Senior staff O E 4 (5.6) 6 (4.3) Junior staff O E 3 (3.9) 4 (3.0)

Chi-square X2 = (O – E) 2 E
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2 X2 = (10 – 7.3)= 0.99 7.3 2 X2 = (4 – 5.6)= 0.45 5.6 2 X2 = (3 – 3.9)= 0.2 3.9 2 X2 = (3 – 5.6)= 1.20 5.6 2 X2 = (6 – 4.3)= 0.67 4.3 2 X2 = (4 – 3.0)= 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;
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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.

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CHAPTER FIVE 5.0 5.1 SUMMARY, CONCLUSION AND RECOMMENDATION 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
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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

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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

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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
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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.

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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 2. Age: a. 20 – 25 b. 25 – 30 c. 30 – 35 d. 35 – 40 ( ) Female ( )

3. Marital Status: a. Single b. Married ( ( ) )

4. Qualification:
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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 ( )
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b. Negative

(

)

9. Has your company encountered any disagreement with clients? a. Positive b. Negative ( ( ) )

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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

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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 ( ( ) )

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