ABSTRACT
Market investigation, or research work, as it is called in some quarters, is a primary function of the adver tising agency. As a primary function it comprehends only such endeavor as is necessary for the formulation of sound advertising plans. Compensation for such work is covered by the commission paid the agency. All cash outlays, such as traveling expenses, are charge able against the client. When market investigation work is desired by a client, independent of any adver tising campaign, an agreement should be reached on the matter of compensation before such work is started. Investigation work done in competition for an account should also be charged for at an agreed-upon fee. The report rendered by an agency under such conditions, if the account is not given to the agency, should be come the property of the agency. This is sound prac tice.
