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[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Factors to be considered in selecting an Ad Agency:-
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On Departmental basis On Group basis
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Advertising Agency General Manager Board of Directors Manager planning department Manager marketing services department Manager Ad-placement execution department Manager Ad-preparation department ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
COMMISSION SYSTEM FEES SYSTEM SERVICE CHARGES
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Media bills agency Agency bills advertiser Cost of full page magazine Ad Less 15% Commission  Less 2% cash Discount Agency pays Media Rs. 50,000 (-) 7500 Rs.42,500 Rs. 850 Rs. 41,650 Cost of full page magazine Ad Less 2% Cash Discount on Rs. 42,500(passed on to client) Agency charges from Advertiser Rs.  50,000 Rs. 850 Rs. 49,150
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Advertising Organization 1

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  • 9. On Departmental basis On Group basis
  • 10.
  • 11.
  • 12.
  • 13. COMMISSION SYSTEM FEES SYSTEM SERVICE CHARGES
  • 14.
  • 15.
  • 16. Media bills agency Agency bills advertiser Cost of full page magazine Ad Less 15% Commission Less 2% cash Discount Agency pays Media Rs. 50,000 (-) 7500 Rs.42,500 Rs. 850 Rs. 41,650 Cost of full page magazine Ad Less 2% Cash Discount on Rs. 42,500(passed on to client) Agency charges from Advertiser Rs. 50,000 Rs. 850 Rs. 49,150
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.