unit 9 p3 m2 RESUB

UNIT 9 P3

POWERPOINT

UNIT 9 M2

Explain the advantages and disadvantages of using professional agencies in ensuring promotional success

Proffesional advertising agencies are businesses who produce different successful campaigns for businesses. They will be making a campaign for Nike because they have previously worked for Nike before and have had successful campaigns made. Nike will ensure the advertising agency on what the aim of their campaign is going to be along with the basic aspects they want to feature within the campaign. The agency will then draw up ideas and storyboards of what they would like the campaign to look like and Nike will filter through these and decide on the idea they prefer the most. Although, it is mainly up to the advertising agency to create and produce a successful, well-run campaign for Nike that is going to exceedingly increase there sales and expand their reputation.

Advantages

There are a lot of advantages for using professional agencies to make promotional advertisement materials. One reason is because they save the firm time by doing it for you as the business doesn’t have to do any work and this means that the business can focus on other important things in the business such as; emailing their customers back or improving their products. Therefore by this happening profits can be maximised because there will be more focus on the business as they have more time to focus on the more important things. Secondly, using professional agencies provides a specialist service that some businesses may not be able to produce such as market research, design production, design campaigns and make storyboards. This will allow the business to spend time on other important things and will lead the business to make more profit because they can juggle other stuff in the business whilst their advertisement is getting made. 

Also it costs a lot of money to make advertisements, therefore this will mean other aspects won’t be looked at. Furthermore, using professional agencies mean that they have experience in creating successful campaigns which is why people use these agencies. This is important for Nike because it means they will have a successful campaign produced from a victorious business. This means the business can pay the agency to have a successful campaign because they have done loads of campaigns previously that other businesses have used them for so they are popular agencies. An example of a successful campaign is the new Apple campaign or Nike’s new campaign ‘Just Do It’. 

Another advantage is that this allows the business to get more sales and profit because everyone will want to use that agency as they are a acknowledged and popular and know what they are doing as the agency have done adverts for other well-known businesses and brands. Established advertising agencies have a lot of inside knowledge into the advertising sector as that is their profession and they have a lot of industry contacts and relationships which help them to gain popularity. This helps a business because the more well-know people who see it will get it spread quicker.

Disadvantages

On the other hand, there are equal disadvantages of using advertising agencies. One of these is that they charge high prices for more popular brands such as Nike. This may be an issue for the business because they may not be willing to spend this amount of money or they may not have that money to spend on advertisements especially if they are a newly set up business. Also, they could spend money on other things in the business rather than on advertising. Therefore, this will reduce Nike's profit if they use advertising agencies and they charge high prices for it because this will decrease their sales and overall profit.

Additionally, leaking information is a problem businesses may have when using advertising agencies to produce their advertisements because people internally may leak information about the advert and make it public therefore this may be an issue because the business may not want it to leak because people will have already seen the advert and won’t be that interested in looking at it when it comes out because they would have already seen it which would make them loos profit and may lose its impact. Also it may lose customers because if people see it before it comes out no one would want to spend money on buying or seeing it or going to the cinema etc. High costs affect Nike because this means they will lose a lot of money and may not have enough money for other aspects of the business.

Furthermore, if you use an advertising agency to produce your campaigns, this could be a trouble because they may not have the passion for your business, where as someone who works within Nike has for it. This could lead to the advertising agencies not necessarily putting enough effort into the campaign. The advertising agency may not put as much effort into it because they think they are getting paid no matter what they produce so they don't have to be extremely enthusiastic. If the agency do not have passion for the campaign, this could be an issue because they won't produce the campaign to be as successful as it can be, which means Nike won't get their aim out of the campaign.

Using an agency could be quite unreliable because they may not be done in time for when you need or want them to be and they may not be quick, easy and accessible to get hold of which is a big problem for massive business as they need to find out information on their advertisements because they cannot bring out their new products until the advertisement is ready for it. This is an issue because it could slow down the whole process which could delay Nike making sales and taking profit from customers.