Chapter 3

Question 1

classified advertising

Answer 1

locate and recruit new employees, offer services or sell/lease new and used merchandise

Question 2

co op advertising

Answer 2

build manufacturer’s brand image and help distributors, dealers or retailers increase sales

Question 3

decentralized system

Answer 3

establishment of advertising depts. by products or brands or in various divisions, subdiaries, countries, regions, or other categories that suit the firm’s needs, which operate often independently

Question 4

full service advertising agency

Answer 4

serves all its clients in all areas of comm and promotion

services: planning, creating, producing, ads as well as performing research and media selection services

non ads services: producing sales, promotion materials, publicity articles, annual reports, trade show exhibits, sales training materials

Question 5

general consumer agency

Answer 5

represents widest variety of accounts, concentrates on companies that make goods purchased chiefly by consumers

Question 6

interactive agency

Answer 6

creates ads for digital interactive medium

Question 7

media planning

Answer 7

process that directs advertising messages to the right people in the right place and the right time

Question 8

production dpts

Answer 8

managing the steps that transform creative concepts into finished ads and materials

Question 9

traffic depts

Answer 9

coordinates all phases of production makes sure completed by deadline

Question 10

sales promotion depts

Answer 10

staff to produce dealer ads, window posters, point of purchase display, dealer sales material

Question 11

retainer method

Answer 11

method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost + fixed fees formula

agency estimates amount of personnel time required by client, determines cost of that personnel and multiplies by some factor