Chapter 3 Flashcards
specializes in creation, production, and/or placement of communications messages
Advertising Agency
provide information, entertainment, or environment for firm’s marketing communications message
Media Organizations
support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms
Collateral Services Organizations
advertising agency that is set up, owned, and operated by the advertiser
In-House Agencies
client cell, works well if working with only few products and brands
Centralized System
lots of brands needed
Decentralized System
service organization that specializes in planning and executing advertising programs for its clients
Ad Agency
large agencies that merged with or acquired other agencies and support organizations
Super agencies
understands advertiser’s marketing and promotion needs and interprets them to agency personnel
Account Services
all agency functions are set up as a separate department
Departmental System
individuals from each department work together in groups to service particular accounts (PR, direct marketer, etc. work together)
Group System
small ad agencies that provide only creative services
Creative Boutiques
specialize in buying media
Media Specialist Companies
wide range of technologies that automate the buying, placement, and optimization of advertising media
Programmatic Buying
receiving specified commission from media on any advertising time or space purchased for the client
Commission System
based on a sliding scale that becomes lower as clients’ media expenditures increase
Negotiated Commission System
basic monthly fee charged for services provided and media commissions earned are given to client
Fixed-Fee Method
media commissions received are credited against the fee
Fee-Commission Combination
agency pays a fee based on costs of its work plus some agreed-on profit margin
Cost-Plus System
agencies compensated about their basic costs, if they achieve or exceed results as measured by agreed-upon metrics
Incentive-Based Compensation
develop and manage sales promotion programs
Sales Promotion Agencies
develops and implements programs to manage organizations publicity, image, and affairs with consumers
Public Relations Firms
development and strategic use of various digital marketing
Digital Agencies
