Answer to Question 1
Most large corporations employ an advertising agency to develop advertising campaigns. When an organization uses an advertising agency, the firm and the agency usually develop the advertising campaign jointly. How much each participates in the campaign's total development depends on the working relationship between the firm and the agency. Ordinarily, a firm relies on the agency for copywriting, artwork, technical production, and formulation of the media plan.
Advertising agencies assist businesses in several ways. An agency, especially a large one, can supply the services of highly skilled specialists-not only copywriters, artists, and production coordinators but also media experts, researchers, and legal advisers. Agency personnel often have broad advertising experience and are usually more objective than a firm's employees about the organization's products.
Because an agency traditionally receives most of its compensation from a 15 commission paid by the media from which it makes purchases, firms can obtain some agency services at low or moderate costs.
Answer to Question 2
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