Answer to Question 1
An in-house agency provides greater coordination and control throughout the advertising process. An in-house agency has greater knowledge and control over marketing activities. Plus, a firm can keep any media commissions that would have gone to an outside agency. However, in-house agencies suffer from a lack of objectivity. In addition, it's hard to match the breadth and depth of experience offered by an external agency.
Answer to Question 2
(1) A public relations department handles the needs of organizations regarding relationships with the local community, competitors, industry associations, and government organizations. The goal of public relations efforts is to communicate information about a firm, its products, and its employees so as to achieve public awareness, understanding, and good will. (2) A sales promotion department designs and operates contests, sweepstakes, special displays, or couponing campaigns for advertisers. (3) A direct-marketing department maintains large databases of mailing lists as one of its services. It can also design direct-marketing campaigns either through the mail or by telemarketing. (4) Event-marketing departments help clients identify whether and how to sponsor major events and local community events. (5) Interactive media departments can help advertisers prepare communications for new media like the Internet, interactive kiosks, and interactive television.
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