Even though the firm has its own ideas about strategies, the agency should be able to demonstrate that they are able to contribute to these as well, thus showing they have sufficient expertise to make a genuinely valuable contribution to the program. If the firm is entering a new overseas market, finding an advertising partner with local knowledge, and who can apply that local knowledge specifically to the firm's product or service is critical. No matter how much research is done prior to entering the foreign market, the firm may have made errors in their analysis due to certain biases that can only be corrected by someone with local marketing knowledge.

It is critical for the advertising agency to understand your company's market strategy because ultimately the job of the agency is to translate that strategy into results. No matter how wonderful the creative is, if it is not focused towards the right strategy and the right targets, the company's objectives will not be met.

Their role should ideally include more than just the ability to design and place ads. It is not sufficient for an agency to merely do what they are told - they need to be able to contribute to the process, even if that means pointing out faults in the company's strategy. The agency should act as a strategic partner, rather than merely a contractor. They are an objective voice, and should be viewed as a feedback resource rather than merely a supplier of services.
Bibliography

Young, Murray & Steilen, Charles. (1996). Strategy-Based Advertising Agency Selection: An Alternative to Spec Presentations. Business Horizons. Retrieved June 19, 2008 at http://findarticles.com/p/articles/mi_m1038/is_n6_v39/ai_19125130

No author. (2008). Working with an Advertising Agency. Gaebler Ventures. Retrieved June 19, 2008 at http://www.gaebler.com/Advertising-Agencies.htm