Chapter 2

Question 1

Crowd-sourcing

Answer 1

The online distribution of certain tasks to groups (crowds) of experts, enthusiasts, or even consumers.

Question 2

Advertisers/clients

Answer 2

Business, not-for-profit, and government organizations that use advertising and other promotional techniques to communicate with target markets and to stimulate awareness and demand for their brand.

Question 3

Advertising agency

Answer 3

An organization of professionals who provide creative and business services to clients in planning, preparing, and placing advertisements.

Question 4

Full-service agency

Answer 4

An array of advertising professionals to meet all the promotional needs of clients.

Question 5

Creative boutique

Answer 5

Creative concept development, copywriting, and artistic services to clients.

Question 6

Media specialists

Answer 6

Organizations that specialize in buying media time and space and offer media strategy consulting to advertising agencies and advertisers.

Question 7

Direct marketing agencies and data agencies

Answer 7

These agencies help advertisers construct databases of target consumers, merge databases, develop promotional materials, and then execute the campaign.

Question 8

Infomercial

Answer 8

A television program that promotes a product in an informative and supposedly objective way.

Question 9

Interruptive engagement

Answer 9

♣ Telemarketing

♣ Email spam

Question 10

5 trends influencing the IBP industry

Answer 10

1. Consumer control (more control of the info they receive)
2. Media ownership (consolidation)
3. More media options (fragmentation and more IBP tactics)
4. Crowdsourcing
5. Mobile marketing (reach consumers everywhere)

Question 11

Advertisers must be prepared to work with agencies through (6 steps)

Answer 11

1. Value - should understand their brand’s key value(s)
2. Competition - should understand their brand’s market position
3. Objectives - should understand their brand’s short- and long-term objectives
4. Audience - should understand their brand’s target audience(s)
5. Logistics - should understand how they get their product to the audience
6. Marketing - should understand how ADV and IBP fit into the bigger picture

Question 12

Promotion Agency

Answer 12

an organization of professionals who provide creative and business services to clients in
preparing, planning, and placing IBP tactics.

Question 13

Goodness of fit

Answer 13

the extent to which observed data match the values expected by theory.

Question 14

Advertising Agencies (5 types)

Answer 14

♣ Full-service - can meet all the promotional needs of a client
♣ Creative boutiques - creative concept development and services – idea factories.
♣ Digital/Interactive - specialize in web-based marketing
♣ In-house - ADV and IBP done from within a company (ex. Revlon).
♣ Media specialists - specialize in media strategy and buying

Question 15

Promotion Agencies (5 types)

Answer 15

♣ Direct Marketing - maintain and manage databases of mailing lists.
♣ Sales Promotion - design and implement sales promotions (coupons, sweepstakes, sampling, rebates, etc.)
♣ Event Planning - organize, implement, and promote events
♣ Design - specialize in design and graphics (logos, packaging, etc.)
♣ PR - manage relationship with a brand’s publics

Question 16

How agency’s get paid

Answer 16

♣ Commissions
♣ Markup Charges
♣ Fee System
♣ Pay-for-Results

Question 17

External Facilitators

Answer 17

Provide specialized services to advertisers and agencies

Question 18

External Facilitators (4 Types)

Answer 18

Research - provide, collect, and analyze relevant data
Consultants - specialize in different aspects of IBP – media, creative, etc.
Production - broadcast, camera, lighting, songwriting, facilities, etc.
Software - provide specialized software to gather and analyze data.

Question 19

Crowdsourcing ad campaign creation (benefits)

Answer 19

‣ New ideas
‣ Cheap ideas 
‣ Unconventional ideas
‣ Connecting with new talent
‣ Empowering new talent via professional development and money

Question 20

Crowdsourcing ad campaign creation (risks)

Answer 20

‣ Exploiting labor
‣ Driving prices down
‣ Eroding connections with agencies that are invested in your brand
‣ Losing site of the bigger picture (the brand image)
‣ Message inconsistency

Question 21

Crowdsourcing product innovation (benefits)

Answer 21

‣ Demonstrates listening
‣ Enables meaningful engagement 
‣ Builds trust
‣ Builds customer satisfaction
‣ Boosts customer brand investment
‣ Improves word-of-mouth

Question 22

Crowdsourcing product innovation (risks)

Answer 22

‣ Lack of message control
‣ Brand bashing
‣ Legal problems?

Question 23

Account services definition

Answer 23

Identifying the benefits a brand offers, its target audiences, and the best competitive positioning, and then developing a complete plan.

Question 24

Account planner definition

Answer 24

Assigned to clients to ensure that research input is included at each stage of development of campaign materials.

Question 25

Creative services group tasks

Answer 25

Develops the message that will be delivered through advertising, sales promotion, direct marketing, social networks, mobile marketing, event sponsorship, or public relations.

Question 26

Media planners and buyers tasks

Answer 26

Examine an enormous number of options to put together an effective media plan within the clients budget

Question 27

Commission payment system

Answer 27

Commission is a sum of money that is paid to an employee upon completion of a task, usually selling a certain amount of goods or services. It can be paid as a percentage of the sale or as a flat dollar amount based on sales volume. Employers often use sales commissions as incentives to increase worker productivity.

Question 28

Markup charges definition

Answer 28

Markup is the difference between the cost of a good or service and its selling price. A markup is added onto the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.