A Lubricant Company’s Advertising Agency Selection

Abstract

Advertising is necessary for lubricant companies, as the industry turnover is around USD 164 billion worldwide. However, previous studies have not examined the choice of advertising agencies. Therefore, the study aims to identify the factors affecting lubricant companies' selection of advertising agencies in Bangladesh. A qualitative research strategy, including interviews and thematic analysis, was employed.

Empirical findings indicate that the factors for advertising agency selection are knowledge, experience, quality, price, and organizational compatibility. A lubricant company applies strategy considering its marketing objectives and the agency's expertise, track record, financial budgeting, operational settings, and alignment with the lubricant company's long-term goals and culture. However, strategic evaluation depends on the track record of successful partnerships with respectable companies, the agency's performance and the efficacy of its communications, the organization's changing requirements and long-term goals, outcome-oriented assessment, quality control, standard campaigns, and ethical practices. This illustrates that RBV should consider cost minimization in resource allocation in the lubricant industry.

The study suggests that lubricant companies should focus on the advertising agency's market experience, knowledge, pricing, and organizational compatibility. It also recommends that lubricant companies select advertising agencies based on their internal goals and external conditions, such as market and competition.