Ad Agency Team

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A MARKETING RESEARCH STUDY TO DETERMINE THE DEMAND FOR A

NEW FULL-SERVICE AD AGENCY IN CHESHIRE COUNTY

Prepared for

Dr. Jason Little

Prepared by

Kristen Bartini

Jennifer Bulcao

Matt Naffah

Justen Nagle

Sheila Nagle

Marketing Research Course

Franklin Pierce College

Rindge, New Hampshire

December 2004


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Full-Service Ad Agency 2

Contents

Section Title Page

Introduction 4

Nature of the Problem 4Purpose of the Project 4Problem Statement 4Research Objectives 4Definition of Terms 4

Literature Review 6The Full-Service Advertising Agency 6Market Trends 8Small Business Trends 12Payment by Results 14

Methodology and Procedures 17Problem Identification 17Development of Survey 17Definition of Population 17Sample Size 17Data Collection Method 18Assumptions 18

Results 19Question One 19Question Two 19Question Three 19Question Four 19Question Five 19Question Six 19Question Seven 20Question Eight 20Question Nine 20Question Ten 20Cross-Tabulation One 20Cross-Tabulation Two 20

Limitations 22Sample Size 22Human Power 22Money 22Transportation for One Group Member 22Unwillingness of Businesses to Attempt/Complete Surveys Accurately 22


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Discussion 23

Conclusions 25

Recommendations 26

References 27

Appendix A 28

Appendix B 29

Appendix C 30

Appendix D 31

Appendix E 32

Appendix F 33

Appendix G 34

Appendix H 35

Appendix I 36

Appendix J 37

Appendix K 38

Appendix L 39

Appendix M 40


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Introduction

Nature of the Problem

Despite the fact that there are 24 cities and towns found in the Cheshire County,

there are only two full-service ad agencies. A mere two ad agencies exist to meet the

needs of the hundreds of businesses that reside in this county. With a need to service a

total population of 73,825, at least one more ad agency is necessary to meet the demand

of these people and their hundreds of local businesses (U.S. Census Bureau, 2000).

Purpose of the Project

The purpose of this marketing research project is to identify an opportunity. The

opportunity relates to Franklin Pierce College students who are interested in

entrepreneurship. It is possible that as these students approach graduation, this

prospective business idea will be taken into serious consideration.

Problem Statement

Research is necessary to determine if there is a demand for a new full-service ad

agency in Cheshire County. The results may be used in aiding Franklin Pierce College

graduate entrepreneurs with respect to opening such a business in the near future.

Research Objectives

The research objectives include:

1. To identify advertising services that perspective clients would find useful

2. To identify service deficiencies of existing ad agencies in Cheshire County

3. To determine the appropriate target market

Definition of Terms


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Advertising Agency. Falling under North American Industry Classification

System (NAICS) code 541810, the U.S. Census Bureau defines advertising agencies as

an industry comprised of, establishments primarily engaged in creating advertising

campaigns and placing such advertising in periodicals, newspapers, radio and television,

or other media. These establishments are organized to provide a full range of services,

for example through in-house capabilities or subcontracting, including advice, creative

services, account management, production of advertising material, media planning, and

buying (U.S. Census Bureau, 2000).

Cheshire County. According to the U.S. Census Bureau, Cheshire County is

defined as Alstead, Chesterfield, Dublin, Fitzwilliam, Gilsum, Harrisville, Hinsdale,

Jaffrey, Keene, Marlborough, Marlow, Nelson, Richmond, Rindge, Roxbury, Stoddard,

Sullivan, Surry, Swanzey, Troy, Walpole, West Swanzey, Westmoreland and Winchester

(2000). Census 2000 came to the conclusion that Cheshire County included 73,825

people, 28,299 households, and 18,790 families, with a median income of $51,043 for a

family (U.S. Census Bureau, 2000).


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Review of the Literature

The Full-Service Advertising Agency

According the to the Census Bureau, the NAICS code for a full service

advertising agency is 541810 and is defined as an establishment primarily engaged in

creating advertising campaigns and placing such advertising in periodicals, newspapers,

radio and television, or other media. These establishments are organized to provide a full

range of services (i.e., through in-house capabilities or subcontracting), including advice,

creative services, account management, production of advertising material, media

planning, and buying (i.e., placing advertising) (2004).

Along with that, there are four intricate components that make up a competitive

and strong full service agency. These components are diagnosing the marketing and

brand problem, positioning the product in relation to the target consumer,

communication, and evaluation. With out these components, and agency would not be

able to survive and adapt to the ever changing industry.

Diagnosing the marketing and brand problem. The first component of a full-

service advertising agency is diagnosing the marketing and brand problem. This

component is research based- looking at everything from competitors, brands, product

category and consumers. From there, the brand core is defined: Who are the brands prime

prospects? Where are they? What are their demographics and psychographic

characteristics? How does the product fit into their life style? How do they regard this

type of product; this particular brand; competitive products? What one-benefit do

consumers seek form this product; this particular brand? In what distinctive way can the

product solve the prime prospects? What media will best reach your market?


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This component is really important because it not only helps define your brand

core but also is a great selling point for a full-service advertising agency. Some agencies

sell their research capabilities to their clients in hope to win a bid over competitors.

Having strong research is what will define your agency and make you stand out from

everyone else.

Position the product in relation to the target consumer. Using the answers from

the research conducted, a strong strategy is formed that allows the agency to position the

product in relation to the target consumer and emphasizes the appeal of the product

toward the target consumer. Within this component, you also define goals, how to

intensify brand imagery and recapturing prior users, and plan how to carry everything

out. According to R.D. Smith, Organizations are successful to the extent they enjoy a

strong reputation, which results from neither accident nor luck. Strategic planning can

identify and evaluate an organization's visibility and reputation. No organization can

afford to be a "best-kept secret" among a relatively small number of supporters;

continuing effectiveness requires the development and maintenance of a strong and

positive reputation (2002).

Communication. After a complete strategy is created and all copy and rough

layouts have been decided on and prepared, it is time to decide on what communication

the agency wants to use. First the agency puts together a media plan, which is a complete

analysis and execution of the media component of a campaign. Next, the agency creates a

total plan, which is when roughs of the copy, layouts, and production costs, along with

the media schedule and costs are presented. This eventually is calculated and creates the

total cost.


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Evaluation. Finally, an evaluation plan is created. The evaluation step in the

process is both the end and the beginning (Russell & Lane, 2002). It is the moment of

reckoning for the creative work, based on the objectives set in the beginning, and

provides the evidence needed to refine and advance future efforts. As such, it is an

accountable system (Russell & Lane, 2002).

Market Trends

The marketing science that our company is intending to develop is embarking on

a field that is in constant transition. With the continuing innovation of new technology, it

is important to stay up to date and yet grounded to reality. With more options, it is

important to make informed decisions at to what is needed for each client individually.

The extent of a marketing research plan should stay proportional to the size of the client

and within their financial boundaries. Regardless of how technology develops, we will

have more choices, more fragmentation, greater ability to target and segment, and far

greater complexity (Gotlieb, 2004).

Evolving and ever adapting technology holds a strong impact on an agencies

success. With new resources come new responsibilities. Irwin Gotlieb conveyed the

urgency of adapting to his colleagues, We have a responsibility to our clients to learn,

explore, understand and innovate (2004). To properly service a client, agencies must

balance creativity, innovation and finances while trying to brand a client.

Potentially, these innovations could help a marketing division to be able to

segment the market to an extreme precisian. The wealth of knowledge that is now being

processed efficiently can be of great service to clients. Gotlieb notes how the change in

marketing research will also impact the creative industry; Okay, so we fast forward 3-5


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years and the media agency is able to segment and refine targeting. We may even be able

to do addressable advertising on a large scale. What about the creative execution? All this

targeting and segmentation is for naught if you run the same creative across the board.

Whats the point of addressability if you are addressing everybody the same way? In fact,

every segment and target would need its own strategy, its own creative brief and its own

execution (2004). Progressive stride in the marketing field will force the creative

counterparts to follow suit. Information is useless if you do not know how to apply it.

Other industry wide quandaries have been discussed at the 4As Media

Conference in Orlando, Florida. Hot topics included lack of return on investment, TVs

inability to reach the public and discussion on creative output measurements. (McClellan

2004) TiVo and other media options are allowing consumers to avoid advertising while at

home. Advertisers must cope with this cut back and try to rebound by working their way

back into the consumers attention. McClellan summarized Jim Stengels reaction to this

situation, The reason? Todays marketing model is broken. Too often, it offends,

harasses, and turns off the consumer, he said. Bottom line, Marketing tactics just arent in

touch with the public (2004).

In response to low returns from television advertising, P&G clients have shifted

their budgets. Many of their brands reserved 90% of their advertising funds for television.

But 2003 changed the ground rules (McClellan 2004). Prilosec, launched by P&G used

only 25% of its ad spending on television.

Not knowing a commercials audience is troubling and expensive for major

marketers. As stated by Scott Berg, [worldwide media director, global branding and

communications of Hewlett-Packard], If I know who is watching my TV ads, why


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would I pay for anybody who isnt? If I can track that I got a million people who was my

TV commercialvs, the 15 million who tuned into the showmaybe thats how I

should start paying for my media. Although Berg argues that Nelson ratings are not

going to help, efforts have been initiated to increase knowledge about commercial

viewership.

The Association of National Advertisers and 4As (American Association of

Advertising Agencies) are struggling with Nelson Media Research currently on behalf of

advertisers and their agencies. Without competent knowledge about commercial

audiences, billions of dollars are currently being spent blindly. According to Advertising

Age, The 4A's media-research committee has asked Nielsen to provide detailed audience

data from last April and October in 30-second increments so it can analyze commercial

ratings trends. Nielsen's data currently focuses on program ratings. (2004) Advertisers

are looking for the same in-depth data related to commercial viewing that is produced for

program viewing.

Nelson Media Researchs current Npower system can provide information

minutely, but the calculating the data would require extensive resources that are not

currently available. It's difficult to crunch the vast amounts of data that would enable

them to extrapolate trends and variance between program viewing and commercial

viewing. Npower technology was designed to help TV programming executives track

information such as how well a program retains its lead-in audience, but the data is not

gathered in a way that makes it easy to figure out commercial ratings(Advertising Age,

2004). ANA and 4As will be meeting with Nelson to further discuss the issue.


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Speaking on behalf of the field, Bob Schmetterer discusses The Rise of

Advertising, Creative thinking has always been the core of our industry. But what it

means and what it demands of us is changing on a massive scale. Transformative

thinking, revolutionary thinking; thinking that goes beyond media, beyond

communications entirely. This is the new creativity (2003). Scmetterer also referenced a

recent study that found 90% of surveyed CEOs agree that creativity is and essential part

of a successful business yet less than 10% feel that they their business is meeting that

creative need (2003). The significant gap comes from a Fear of Change. To further

explain, Schnetterer notes, A major barrier is a company culture that does not encourage

creativity or worse cuts it off at the pass with risk-averse, fearful thinking. And

underlying this is one of the most ubiquitous of human fears: fear of failure. Because the

risk of failure is inherent in any bold, new idea. Because you cannot achieve great

success without risking failure (2003).

An advertising agencies strongest selling point is its creativity. To balance

between a clients desires for creativity versus strategic logic, advertisers have to dance

carefully as to not come on too strong yet offer the full extent of service that the client

desires. Continuing to express how importance creativity even during difficult times

Schnetterer exclaims, When people are afraid of taking risks, of making any mistake at

all, then they cannot make the bold leaps necessary for creative, nonlinear thinking. It's

human nature. In difficult times, we tend to hunker down. Yet in difficult times, history

shows that the businesses that are creative, those that go on the offensive, those that adapt

and are flexible, those are the businesses that succeed while others fail (2003).


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Agencies, in the near future will also have to restructure their billing process. We may

be one of the few remaining businesses in the world where the idea, the creative concept,

the strategy, the deal structure, and the deal itself belong fully to the client and are

transportable from one agency to another (Gotlieb, 2004). Intellectual property is difficult

to differentiate, so as the industry continues to expand with new technology, and thus

need for new creatives, revamping the old billing systems will be essential to financial

survival.

Currently agencies spend a huge budget to develop a proposal for a prospective

client. Eating the cost is industry standard. Furthermore, the rights to the ideas and

concepts that are generated in these proposals and during campaigns are for the client to

control. Advertisers are constantly subject to lose of money and accreditation when the

intellectual property rights are given to clients.

Small Business Trends

Within an advertising spectrum, there is much dependence on the target market,

or to who is being directly targeted. In our case, we are targeting small businesses, and in

order to know whom our target market will be and how to market to them we need to

know small business marketing trends. The hottest market trends for fiscal year 2003-

2004 are described below; this information will provide our team with the necessary

information on what some small businesses will be looking for to market.

The youth market is dominating for much of the advertising market, considering

that the teen age group spends the most money on consumer products. This can be

observed by looking at simple television commercials, and magazines. Many adult

magazines have simply shrunken in thickness. Opposed to teen orientated magazines,


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which have grown increasingly in size; for example Cosmopolitan and Mens Fitness.

The advertisers have targeted the teens through ads in every possible way (Small

Business Trends, 2004, 3). Another popular trend for the growing teenage market is

that of aftermarket car parts and accessories. This trend has been growing since 2001 and

is projected to continue growing for the next few years. The smaller businesses that sell

only necessity car parts are now starting to stock aftermarket performance parts due to the

high demand of them (Small Business Trends, 2004, 4).

The quality of life trend has always stayed strong ever since the early 1980s.

People, especially the baby-boomers, are very interested in keeping their youthful selves

in good condition. This has sparked the starting of many local gyms and fitness clubs

such as Curves. In addition, the supply for home fitness equipment is on the rise and

many people have seen infomercials and small advertisements for them. This is a perfect

opportunity and almost a sure investment if set up right. In turn, advertising needs to

prepare to efficiently attract people to specific types of wellness activities (Small

Business Trends, 2004, 7).

Along with the youth markets, it is also imperative that small businesses look at

the largest group of consumers, the baby boomers. This group of consumers is constantly

demanding the trendiest items on the market. Their buying is impulsive and strongly

depends on the hottest consumer trends. Small businesses need to be up to date on their

trends of they plan to receive business from these consumers. In addition, many of the

baby boomers shop with bargains in mind. They will spend time to search for the best

priced product for their dollar. A small business may have to adjust prices but if they can


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maintain business from this target group of consumers, it will show to be profitable

(Baby Boomers, 2001, 5).

When planning to advertise for small businesses it is important to know the trends

that some of the small businesses will follow. Also knowing what to research can help

smaller advertising firms concentrate on one central service as opposed to attempting to

specialize in all services.

Payment by Results

A major issue in new or even old advertising agencies is how to properly calculate

the appropriate remuneration. This can be done in whatever fashion that the particular

agency would like to do but there is a suggested way, which has a bit of a background

also.

For a bit of background, many advertisers and ad agencies consider their methods

of remuneration for many different reasons, such as agencies want to make sure that they

are remaining profitable in order to make sure they can still stay in service for their

customers. The Association of National Advertisers and the European Association of

Advertising Agencies decided that the average profit in percentage of 15% - 25%

operating profit would be considered good or fair. This percentage is taken from the

gross revenue of the company (Guidelines, 2004, 8).

There are four basic guidelines for agencies to effectively profit from their

advertising. The first guideline is to define and identify the area and amount of work

before deciding the amount of profit they will be obtaining from the deal. This is to

ensure that they are not loosing money for lots of service, and so that they do not over

charge the customer. Secondly, the agency needs to decide on a profit margin that fits


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their specific needs. If the agency has three people working on the project using a large

amount of company resources than they need to make sure that the appropriate money is

being made in return for the service in order to positively fund the project. The third

guideline is to make sure that the remuneration is beneficial to both parties of the

business deal. This allows for both the customer and the agency to walk away feeling

good about the deal, also it give the opportunity for the project to be discussed in an open

environment, therefore allowing for the appropriate changes to be made with both parties

understanding the final agreement. The fourth guideline is to allow for constant review

of all areas of the remuneration, this will allow for the company and customer to see how

the percentage is being broken down. This allows for better understanding of what the

project has done for the company and if changes may need to be made in the future

(Guidelines, 2004, 10).

There are two basic methods for remuneration that agencies use today; they are

the commission system and the fee system. The commission system is when the agency

will receive a certain percentage from the product or service. For example, if an agency

charges a company $10,000 for a radio commercial, and they charge the average of %15,

they would be profiting $1,500 from the deal. This method is beneficial because it is

very easy to set up and operate, and it allows the customer to get a service at a locked

price. The disadvantages to this method are that the agency may only make a certain

locked percentage for both small amounts of work and for lots of work. There is also no

individual pricing on specific services, so the customer may benefit too much

(Guidelines, 2004, 12, 13). The second method for calculating remuneration is the fee

system; the fee system is when a company charges the customer a specific fee based upon


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variable in the company. The variable consist of the peoples salaries working on the

project, equipment rentals, rent of the office space, travel costs, etc. These costs are

calculated and the agency will figure out how much to charge the customer so that they

will remain profitable form the situation. Some of the benefits are that the agency can

accurately forecast their financial situation; also, the customer only will pay for their

desired services (Guidelines, 2004, 15, 16). A few disadvantages of the fee system are

that it is hard to accurately depict the workload to be placed on the workers of the agency.

In addition, the customer is very skittish about involving the agency because they may

fear running up a giant bill (Guidelines, 2004 17).

There is no one way to calculate the remuneration for an advertising agency but it

is important that the company make their decision based on the situation at hand but it is

imperative that they follow these five rules of thumb; first they must provide adequate

and accurate professional service to the customer. Second, the agency must be

adequately compensated for their work. Third, the remuneration must provide incentive

to the agency and customer. Fourth, the method of remuneration must be simple to

operate and monitor. Fifth, the method must be reviewed consistently, in case it may

need to be altered in any way (Guidelines, 2004, 28).


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Methodology and Procedure

Problem Identification

As a team, we identified our problem based on our knowledge of full service

advertising agencies, located in Cheshire County. As a team, we also spoke with Dr. Little,

and he informed us that he is only aware of a several as well. Finally, we checked online and

viewed yellow pages to confirm this observation.

Development of Survey

After multiple drafts, we reviewed our survey both with Dr. Little and our

marketing research class and made the necessary revisions. The purpose of the survey is

to determine businesses opinions, attitudes and need for another full service advertising

agency in Cheshire County. The questions were created based on the research objectives

we set forth at the beginning of our research. We felt our questions would effectively

ascertain the information we are looking to collect for our research. (See Appendix )

Definition of Population

The population used in this research was based on businesses located in Cheshire

County. These businesses are broken down into small (1-10 employees), medium (11-50),

and large (51+). Cheshire county businesses were used because our main goal was to

determine if there is a need for a new full service advertising agency in Cheshire County.

We obtained a broken down list of businesses located within Cheshire County. This list gave

us the name, address, and phone numbers for each company. As a team, we used this list as

our sample frame to begin determining whom we would survey and in which town each team

member would be in charge of collecting data.

Sample Size


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After the total population was determined, it was decided to use an arbitrary

method to determine our sample size. Due to our lack of funds and human power, we had

chosen arbitrarily to survey 100 businesses.

Data Collection Method

The survey was divided between each of the five group members and each person

was responsible for attaining 20 completed surveys within their determined town. We used a

non-probability convenience sampling method to attain the survey total. The businesses that

agreed to take our survey where simply given the survey, and it took approximately 3

minutes to fill out. Our group surveyed at least one business in each town within Cheshire

County. Though our method of sampling was a non-probability convenience sampling

method, our team made an effort to sample at least 50% small businesses, 30% medium

businesses, and 20% large businesses. The reason we decided to use these percentages was to

assure we have a proper and accurate sample and that each business is represented

throughout our research just as it is represented in Cheshire County.

Assumptions

It is our teams assumption that all respondents answered truthfully. We entered

professional businesses and hoped to receive truthful answers. It is also our assumption that

team surveyors have been honest in their attempt to collect random surveys. Finally, we also

feel the validity of our survey has helped meet our research objectives because the questions

we asked were based around the objectives.


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Results

Question One

With a mean of 6.81, the results of question 1 showed that 25 percent of our

respondents scaled the importance of advertising to the success of their company as a 7 (on a

scale of 1 to 10, 10 being most vital). In addition, 19 percent scaled the importance as an 8.

On the other hand, 8 percent scaled the importance as 1 (see Appendix B).

Question Two

53.7 percent of respondents stated that they would not consider using an advertising

agency. Consequently 46.7 percent of respondents would consider utilizing an advertising

agency (see Appendix C).

Question Three

Clearly in our results marketing research was the service most needed by business

in Cheshire County, closely followed by web site design. Those that are listed missing

include the businesses that did not answer correctly or did not answer at all (see Appendix

D).

Question Four

According to the results of question 4, those who answered the question correctly

were most interested in utilizing print (see Appendix E).

Question Five

A clear majority of the businesses surveyed utilized internal resources for their

advertising needs. This statistic could potentially represent new clientele for a new

advertising agency in Cheshire County (see Appendix F).

Question Six


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Those businesses that use an advertising agency, according to our results, were

overall satisfied with the agencys performance. The mean satisfaction rating level was 7.59

(see Appendix G).

Question Seven

Out of the businesses surveyed, 41.3 percent feel that there is no need for a new

advertising agency in Cheshire County. Unfortunately, 20.0 percent of those surveyed chose

not to respond, many noting that they did not feel qualified to answer the question (see

Appendix H).

Question Eight

Out of the businesses surveyed, 61.3 percent target the general public. Only 6.7

percent target other businesses, while 32.0 percent focus on both (see Appendix I).

Question Nine

The results of question nine on the survey indicate that 49.0 percent of the businesses

are classified as retail, while 41.0 percent were service-based companies (see Appendix J).

Question Ten

Closely parallel to out decided methodology, 56.0 percent of respondents were

business with no more than 10 employees. Thirty-six percent of the business had a range of

11 to 50, while the remaining 8 percent over fifty employees (see Appendix K).

Cross-Tabulation One

Surprisingly, the cross-tabulation showed that 39 respondents rate the importance of

advertising to their company as a 7 or above, but only use internal resources for such

advertising (see Appendix L).

Cross-Tabulation Two


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According to the second cross-tabulation, 23 respondents who were interested in

using an agency to fulfill their advertising and marketing needs were most interested in

utilizing either print or internet. This is significant because a prospective agency might

consider focusing their services around these results (see Appendix M).


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Limitations

Sample Size

The reader should note our sample size would end up being our biggest limitation.

Due to the one semester time constraint, we were unable obtain a larger sample.

Human Power

With only five surveyors and 24 towns to cover, the surveys were taken in towns

which were most convenient for our surveyors to reach within a limited time constraint. In

addition, if larger quantity of surveyors were available more towns could have been

represented in our research.

Money

Money is considered a limitation for our research. With funding as an option we

could have developed an appropriate budget in order to hire surveyors and provide adequate

transportation.

Transportation for One Group Member

One student member did not have access to a motor vehicle in order to conduct

surveys within the designated area. In addition, the student had to conduct surveys by means

of telephone, which proved to be less productive for data collection.

Unwillingness of Businesses to Attempt/Complete Surveys Accurately

When reviewing the data we found that some businesses did not follow instructions

on the survey. For example, some questions were marked with multiple answers and some

questions were not answered at all. Corresponding with the misinterpretation of the survey,

businesses would also fail to attempt the surveys in general.


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Discussion

According to the overall results of our study, we have determined that before

opening a full-service advertising agency, a perspective entrepreneur should develop a

preemptive business plan. Results of our current research suggest that local businesses

may be more timid to consider utilizing an outside resource for advertising and marketing

needs. While completing surveys, some respondents offered interesting perspective about

the traditional business tactics of local companies. For instance, many small town

businesses only advertise in the yellow pages. They also rely heavily on word of mouth

recommendations.

We believe the success of a new full-service advertising agency would be

dependant on preliminary efforts made on behalf of the potential advertising agency.

Such efforts could include a workshop for local small business owners. This workshop

would discuss the importance of advertising and how marketing can improve profits.

Attendants would learn simple tactics while being introduced to the new agency.

State of the art technology can expand the distance between our perspective

agency and its clientele. Subsequently, the potential clients of a new agency do not have

to be limited to Cheshire County. This new perspective opens the potential of success.

Businesses within the surround area, for instance Manchester, may have interest in

utilizing a new resource for fulfilling their advertising and marketing needs. Further

clients could be pulled in over the internet.

Overall, we emphasize the need to recognize the specific interest of the

perspective client. Any new business would have to respect local culture and trends.


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While understanding that local tradition lies within word of mouth promotion, a new

agency should be prepared to respect this practice while pushing beyond it.


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Conclusion

In direct correlation between our research objectives and survey results, we have

come to the conclusion that most businesses in Cheshire County are interested in utilizing

marketing research and website design. Although we began with the suggestion of a full-

service advertising agency, we conclude that concentration should primarily be on these

two services. Besides these services, this potential advertising agency should also

specialize in different types of print media.

Unfortunately we were not able identify service deficiencies of existing ad

agencies within Cheshire County. Since our research showed that the majority of

businesses that use an advertising agency are satisfied, we should in turn focus on

businesses that do not currently use an advertising agency. The results showed that 47.6

percent of respondents would consider using an advertising agency, but only 14.7 percent

are actually; this leaves approximately one third (32.0 percent) of willing potential

clientele. From this crucial conclusion, we need to determine how many clients the

potential advertising agency would need in order to be successful.

Our final research objective was to determine the appropriate target market of the

potential advertising agency, meaning the type of business that would need the agencys

services. The businesses that would need the services of the advertising agency were

determined by the group of respondents that are presumably interested in an advertising

agency but do not currently advertise. To go into depth further according to the results of

this survey, the concentration needs to be on small businesses in Cheshire County.


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Recommendations

In the event of further research in the future, we suggest alterations in the procedure.

Our research team found that businesses were less likely to comply over the phone than they

were in person. When attempting to contact businesses over the phone, many businesses

made excuses before considering the value of the survey. Many people were quick to dismiss

our phone calls as if we were pesky solicitors.

With approximately 1,200 businesses in Cheshire County, according to freeNH.com

(2004), 75 surveys is not an adequate sample size. We would suggest increasing the sample

size to reflect the population. Due to time and financial restrictions, we were only able to

collect 75 surveys.

Rewording the survey to indicate that respondents should choose one instead of

using the phrase most interested in; this could help to clarify the instructions. Some of the

respondents selected multiple answers although we intended for one response per question.


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References

Caudron, C. (2001). Baby boomers new leaf means new business strategies. Retrieved(October 15, 2004) from Http://www.businessfinancemag.com/magazine/archives-/article.html?articleid=13779&p.

Gotlieb, I. (2004). How agencies (creative & media) need to change to deal with theevolving digital landscape. Retrieved (October 14, 2004) from Http://www.-aaaa.org/transcripts/transcripts.html.

Institute of Communications and Advertising. Guidelines for effectiveadvertiser/agency remuneration. Retrieved (October 15, 2004) from

Http://www.icaad.com/remuneration/sub_main.html.

New Hampshires Free Search Engine. Retrieved (November 9, 2004) fromHttp://www.freenh.com.

Russell, J.T. & Lane, W (2002). Kleppners Advertising Procedure. Upper SaddleRiver, NJ: Prentice Hall.

Schmetterer, B. (2003). The rise of advertising. Retrieved (October 11, 2004) from Http://www.aaaa.org/transcripts/transcripts.html.

Www.sbinformation.about.com. Small business trends. Retrieved (October 15, 2004)from http://sbinformation.about.com-/cs/bestpractices/a/aa122202a.htm.

U.S. Census Bureau. NAICS 541810: Advertising agencies. Retrieved (October 13,2004) fromHttp://www.census-.gov/epcd/ec97/def/541810.htm.
http://www.businessfinancemag.com/magazine/archives-/article.html?articleid=13779&phttp://www.businessfinancemag.com/magazine/archives-/article.html?articleid=13779&phttp://www.-aaaa.org/transcripts/transcripts.htmlhttp://www.-aaaa.org/transcripts/transcripts.htmlhttp://www.icaad.com/remuneration/sub_main.htmlhttp://www.aaaa.org/transcripts/transcripts.htmlhttp://www.sbinformation.about.com/http://sbinformation.about.com-/cs/bestpractices/a/aa122202a.htmhttp://www.census-.gov/epcd/ec97/def/541810.htmhttp://www.census-.gov/epcd/ec97/def/541810.htmhttp://www.census-.gov/epcd/ec97/def/541810.htmhttp://sbinformation.about.com-/cs/bestpractices/a/aa122202a.htmhttp://www.sbinformation.about.com/http://www.aaaa.org/transcripts/transcripts.htmlhttp://www.icaad.com/remuneration/sub_main.htmlhttp://www.-aaaa.org/transcripts/transcripts.htmlhttp://www.-aaaa.org/transcripts/transcripts.htmlhttp://www.businessfinancemag.com/magazine/archives-/article.html?articleid=13779&phttp://www.businessfinancemag.com/magazine/archives-/article.html?articleid=13779&p


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Appendix A


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Appendix B

Descriptive Statistics

75 9 1 10 6.81 2.551

75

N Range Minimum Maximum Mean Std. DeviationHow important do you

consider advertising

to the success of your

company?

Valid N (listwise)

8%3% 3%

4%4%

9%

25%

19%

12%

13%

1 2 3 4 5 6 7 8 9 10


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Appendix C

Statistics

Would you consider using an agency to

fulfill you advertising and marketing needs?75

0

1.53

2.00

2

.502

1

Valid

Missing

N

Mean

Median

Mode

Std. Deviation

Range

46.7

53.7

42

44

46

48

50

52

54

Yes No


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Appendix D

Which advertising agency services would you be most interested in utilizing?

24 32.0 32.0 32.0

22 29.3 29.3 61.3

1 1.3 1.3 62.7

2 2.7 2.7 65.3

15 20.0 20.0 85.3

3 4.0 4.0 89.3

8 10.7 10.7 100.0

75 100.0 100.0

marketing research

branding

campaign development

website design

consulting

other

Total

Valid

Frequency Percent Valid Percent

Cumulative

Percent

Marketing Research

29.3

Branding

1.3

Campaign

Development 2.7

Website Design 20.0

Consulting 10.7

Other 10.7

0

5

10

15

20

25

30


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Appendix E

What medias would you be most interested in utilizing?

20 26.7 26.7 26.7

26 34.7 34.7 61.3

9 12.0 12.0 73.3

3 4.0 4.0 77.3

9 12.0 12.0 89.3

1 1.3 1.3 90.7

7 9.3 9.3 100.0

75 100.0 100.0

print

radio

television

internet

oudoor advertising

other

Total

ValidFrequency Percent Valid Percent

Cumulative

Percent

34.7

12

12

1.3

9.3

4

0 10 20 30 40

Print

Radio

Television

Internet

Outdoor Advertising

Other


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Appendix F

Statistics

How do you currently advertise?

73

2

2.01

2.00

2

.565

2

Valid

Missing

N

Mean

Median

Mode

Std. Deviation

Range

14.7

66.7

16

0 20 40 60 80

Outside Agency

Internal

Resources

Do Not

Advertise


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Appendix G

Descriptive Statistics

17 8 2 10 7.59 2.093

17

If you do use anadvertising agency,

please scale your

satisfaction with

your agency?

Valid N (listwise)

N Range Minimum Maximum Mean Std. Deviation

1.3%

2.7%

5.3% 5.3%

4% 4%

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9 10


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Appendix H

Do you think there is a need for a new full-service advertising agency in

Cheshire County?

29 38.7 48.3 48.3

31 41.3 51.7 100.0

60 80.0 100.0

15 20.0

75 100.0

yes

no

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

38.7 41.3

20

0

5

1015

20

25

30

35

40

45

Yes No Missing


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Appendix I

Statistics

Who is your target market?

75

0

2.25

2.00

2

.572

2

Valid

Missing

N

Mean

Median

Mode

Std. Deviation

Range

61.3%

6.7%

32.0%

Other Businesses General Public Both, Businesses and Public


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Appendix J

What category would your business best fit?

3 4.0 4.0 4.0

1 1.3 1.3 5.3

3 4.0 4.0 9.3

36 48.0 48.0 57.3

31 41.3 41.3 98.7

1 1.3 1.3 100.0

75 100.0 100.0

non-profit

industrial

retail

service

other

Total

ValidFrequency Percent Valid Percent

Cumulative

Percent

1% 4%

49%41%

1% 4%

Non-Profit Industrial Retail

Services Other Not Answered


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Appendix K

Statistics

Identify the number of employees in your company?

75

0

1.55

1.00

1

.722

3

Valid

Missing

N

Mean

Median

Mode

Std. Deviation

Range

56%

36%

5% 3%

1-10 11-50 51-100 101+


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Appendix L

Case Processing Summary

73 97.3% 2 2.7% 75 100.0%

How important do you

consider advertising to

the success of your

company? * How do you

currently advertise?

N Percent N Percent N Percent

Valid Missing Total

Cases

How important do you consider advertising to the success of your

company? * How do you currently advertise? Crosstabulation

Count

6 6

2 2

2 2

3 3

1 1 1 31 5 1 7

17 17

2 11 1 14

3 6 9

4 5 1 10

11 50 12 73

1

2

3

4

56

7

8

9

10

How important

do you

consider

advertising to

the success of

your company?

Total

outside

agency

internal

resources

we do not

currently

advertise

How do you currently advertise?

Total


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Appendix M

Case Processing Summary

75 100.0% 0 .0% 75 100.0%

Would you consider using

an agency to fulfill you

advertising and marketing

needs? * What medias

would you be most

interested in utilizing?

N Percent N Percent N PercentValid Missing Total

Cases

Would you consider using an agency to fulfill you advertising and marketing needs? * What medias would you be most interested in

utilizing? Crosstabulation

Count

14 5 1 9 1 5 35

12 4 2 7 15 40

26 9 3 9 1 7 20 75

yes

no

Would you consider

using an agency to

fulfill you advertising

and marketing needs?

Total

print radio television internet

oudoor

advertising other

What medias would you be most interested in utilizing?

Total

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