In the highly competitive business environment, companies require external expertise for achieving competitive edge over other companies in the industry. The increase in the difficulty level is because of the changes in technological development and facilitated global access that affect markets. In this paper, we will be discussing the relationship of advertising agencies and their clients in terms of B2B relations that are based on daily interactions and meetings between agencies and their clients. Also, we will be analyzing that how companies plan and manage marketing services for their clients and how can it be done through better strategies. Also, the paper is aimed at analyzing different themes or clues that the advertising agency personnel may use in terms of different national cultures.
B2B Relations between Advertising Agencies and Their Clients
Considering the business relationships between advertising agencies and their clients, it is completely dependent on various factors. It has been claimed in several studies that the relationship is not standard because each of the relationship depends on the content and consequences that varies from case to case. It is because of content and consequences that the partners can vary in their significance to each other, they might consider various factors and expect from each other with different experiences with others and with each other. In addition to that, the market of B2B is not random, where everyone can conduct business with everyone else at any point of time, if prices and products are right (Brown, Gilbert, Churchill & Peter 1993: pp. 127-139). As an alternative, B2B markets are the result of organizations by those involved in the network of business relationships.
The following are the internal and external factors that influence the B2B relationships (Brady & Joseph 2001: pp. 34).
Various products or services
Exchange of information
Social interaction, relationships,
Balance, power and dependency
Experience and history
Partners that are alternate
Dynamics of the industry
Role in the business system
Opportunity for changing activities within the business system
The most important is that the relationship between Agents and Users is always stable. In fact, only 20% of surveyed companies (1,300 companies located throughout the country) operate through the Agency for less than a year. This figure was 38% in the recent years. Also, advertising agencies invest a significant proportion of their resources developing speculative presentations for new accounts but only a fraction of resources for speculating the strength of existing relationships. From the discussion, it appears as if many companies and agencies may not be spending an adequate time during the pitch process to successfully evaluate whether or not a particular partnership has long-term potential.
As Carman (1990) suggested, companies are spending a significant amount ...