A marketing agreement is a contract signed between two or more parties with reference to marketing services, where one party takes the responsibility of marketing a particular product or service in a particular territory. In order to promote those products, the company needs to take responsibility of advertising, public relations, interacting with the press and holding product launches and press conferences, buying media for ad space, sales promotion etc.
The marketing agreement, besides mentioning details of the marketing process and the deliverable, must also include the compensation details of how will the marketing firm be paid. These payments may be paid monthly or as a lump sum amount either according to industry rates or more if the client is a big company. The duration of the marketing agreement must also be mentioned, usually it is one-two years, after which the agreement can be extended or the contract wil be given to another firm who will take responsibility of marketing the products and services.
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