ADVERTISING AGENCY
Advertising agency is an independent company set up to render specialized services in advertising in particular and marketing in general. Many producers use an advertising agency to do some or all of the advertising.
FUNCTIONS OF ADVERTISING AGENCY
I. Creating the advertisement.
They use information provided by advertiser about the nature of the products, strength and weakness in the markets at which its aimed.
II. Placing the advertisement.
The agent find out which advertising media are to be used in the company. The agency books advertising time on TV or space in the press in advance, its requirements and then place its advertisements.
III.Producing the advertisement.
The agency’s production departments then put the ideas of the copyright into practices. Artists produce drafts of posters and the film departments produces films in the agent’s own studio on location.
IV.Market research advertising.
Provide information about the products marketing research is carried out before the creation of advertisement company to enable the agents to know that advertisement aimed at research, can be conducted by researchers employed by company or they may use advertising agency.
V. Advice..
The success or failure of a new product depends upon the way it is presented to the public. The advertising agency should be consulted in the early stages of product life cycle. Agencies can offer useful advice about the name of a new product, the packaging, colour etc. the agent advices about the best media for advertising the product.
SERVICES OFFERED BY ADVERTISING AGENCIES
i. They offer expert advise on the media to be used.
ii. Arranger for publication or broadcasting of aids at very short notes and competitive price, because they have contacts with news papers, magazines, radios and TVs companies.
iii. They have their art section that designs the advertising materials. They design news paper advertisements, pamphlets, categories’ etc.
iv. They have contract with printing press and arrange for printing of posters, leaflets.
v. They design and make cinema and TV slides.
E- COMMERCE / ECOMMERCE
This refers to business activities that takes place electronically using network and internet. It is process of buying and selling of commodities and pass information via computers networks. Its also termed as ” revolution in merchandise”
IMPORTANCE OF E-COMMERCE
The fundamental benefit of electronic commerce is enhanced communication which allows for simplicity, flexibility and new approaches of doing business. The benefits of E-commerce is as follows
TO ORGANIZATIONS
Electronic procurements system is made cheaper. The use of e-commerce reduces cost of negotiating, ordering, searching and delivering of goods between companies.
Reduces inventories. The electronic transactions help in reducing inventories and overhead costs.
Expansions of market . with e-commerce, traditional geographical and time limitations are no longer presents.
Lower telecommunication costs. The use of internet in business transactions is very fast ad much cheaper, reducing telecommunication costs.
Increase in productivity and efficiency. E-commerce allows to improve services to customers and increases the production of quality goods.
TO CONSUMERS
The main benefits of e-commerce are as follows
i. Larger choices. the e-commerce provides costumers with wide choices in selections of goods and services at competitive rate.
Quick information. The customers through internets, can get the full information in a very short period are about availability of commodities in international markets.
iii. Twenty four hours services. E commerce makes it possible for the consumers to transact business 24 hours a day all over the world and through out the year.
Interaction between seller and buyers. E-commerce enable the customers and producers to interact each other in business dealing.
TO SOCIETY/ PUBLIC
Sales of goods at lower prices due to stiff competitions in the electronic markets, which forces the producers to sale at lower prices.
ii. Access to education. E- commerce enable people leaving in distant areas to get professional educations and earn college degrees.
Saves customers from the burden of visiting shop to shop during purchases of commodities.
LIMITATIONS OF E- COMMERCE
– Insufficient telecommunication facilities in most of LDC,s like Tanzania.
– No ability to touch and see the product and online images are sometimes exaggerated.
– High cost of installation and maintenance of internet net works.
– Many customers do not trust an unknown faceless sellers, paperless transactions of electronic money.
– With the use of e-commerce , there is break down of personal contact between buyers and sellers.
TYPES OF E-COMMERCE
- B2B(Business-to-Business)
Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. - B2C(Business-to-Consumer)
Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to e-commerce as a whole.
Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent e-commerce, all three things can be purchased literally in minutes without human interaction. Oh how far we’ve come! - C2B(Consumer-to-Business)
A consumer posts his project with a set budget online and within hours companies review the consumer’s requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions. - C2C(Consumer-to-Consumer)
There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay’s auction service is a great example of where person-to-person transactions take place everyday since 1995.
edu.uptymez.com
Likewise, if we consider Government to be separate entity, as also Citizens, we can come up with many more types of ecommerce: B2G (Business to Government), G2B ( Government to Business ), G2E (Government to Employee), G2G (Government to Government), G2C (Government to Citizen), C2G (Citizen to Government)..
