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Abstract:

Purpose – This paper aims to focus on the advertising agency-firm relationship and aims at understanding and analysing its dynamics. In particular, it digs deep into the reasons behind success and failure of the relationship and attempts to unveil their determinants. This investigation is deemed important because a breaking of the advertising agency-firm relationship is costly for both parties.

Design/methodology/approach – An exploratory study is conducted among partners of the relationship in a Tunisian small to medium-sized business context. In-depth interviews were conducted among key executives from the ad agency industry and from clients. Content analysis made it possible to extract factors related to ad agency performance, others related to client management, and still others related to interactive processes involved in the relationship.

Findings – Results led to the development of a theoretical framework summarising the three components of the relationship. These are performance of the ad agency, internal policy of the firm, and interpersonal factors. This framework is deemed relevant for both ad agencies and firms in understanding the dynamics of the relationship and in managing eventual conflicts.

Originality/value – The originality of the research lies in the fact that it focuses on the interactive aspects of the relationship and takes into account not only the role of the advertising agency but also that of the client in developing and maintaining such a relationship. This approach allows one to unveil areas of convergence and areas of divergence between both parties' roles perceptions.

Keywords:

Advertising agencies, Business performance, Interface management, Professional services, Relationship marketing

Article Type:

Research paper

Article URL:

http://www.emeraldinsight.com/10.1108/13522750710720378

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