Chapter 3

Question 1

advertiser/client role in IMC

Answer 1

have products to be marketed
funds for promotions
develop MKT program

Question 2

advertising agency role in IMC

Answer 2

create/produce/place COM message

facilitates IMC process

Question 3

media organization role in IMC

Answer 3

provide info, entertainment or enviornment for firms MKT COM message

Question 4

specialized marketing communication services organizations

Answer 4

direct marketing agencies
sales promotion agencies
digital/interactive agencies
PR firms

Question 5

collateral services

Answer 5

support functions used by advertisers, agencies, media organizations, and specialized marketing communication firms

Question 6

centralized system of advertising

Answer 6

marketing activities divided along functional lines (Marketing is big: branches are research, advertising, sales, product planning)

Question 7

advertising manager responsibilities

Answer 7

plan and budget
administration and execution
coordination with other departments
coordination with outside agencies and services

Question 8

decentralized brand management system

Answer 8

used by firms with multiple divisions and many different products (crazy picture)

Question 9

brand manager

Answer 9

each brand is assigned to a brand manager.

responsible for total management of brand including planning, budgeting, sales and profit performance

Question 10

category management system

Answer 10

additional layer of management above the brand managers

Question 11

in house agencies

Answer 11

advertising agency that is set up, owned, and operated by the advertiser

Question 12

advantages of centralized advertising

Answer 12

• facilitated communications
• fewer personnel
• continuity in staff
• more top-management involvement

Question 13

disadvantages of centralized advertising

Answer 13

• less involvement/understanding of marketing goals
• longer response time
• inability to handle multiple product lines

Question 14

advantages of decentrilized advertising

Answer 14

• managerial attention
• rapid response to problems and opportunities
• flexibility

Question 15

disadvantages of decentralized advertising

Answer 15

• ineffective decision making
• internal conflict
• misallocation of funds
  lack of authority
• internal rather than external focus

Question 16

advantages of in house agencies

Answer 16

• cost savings
• more control
• increased coordination
• stability
• access to top management

Question 17

disadvantages of in house agencies

Answer 17

• less experience
• less objectivity
• less flexibility
• less access to top creative talent

Question 18

superagencies

Answer 18

large agencies that merged with or aquired other agencies and support organizations

Question 19

5 top ad companies

Answer 19

• omnicomGroup
• WPP
• Publicis Groupe
• IPG
• dentsu

Question 20

why to use ad agency?

Answer 20

• skilled specialists
• specialize in particular industry
• objective viewpoint of market
• broad range of experience

Question 21

account services

Answer 21

link between ad agency and its clients

Question 22

account executive

Answer 22

understands the advertisers marketing and promotion needs and interprets them to agency personnel

Question 23

account planners

Answer 23

gather information that is relevant to the clients product or service

Question 24

research department

Answer 24

gathers, analyzes and interprets useful infomration

Question 25

media department

Answer 25

analyzes, selects and contracts for space/time in the media

Question 26

copwriters

Answer 26

conceive ideas for the ads and write headlines, subheads, and body copy

Question 27

traffic department

Answer 27

coordinates all phases of production

Question 28

departmental system

Answer 28

all agency functions are set up as a separate department

Question 29

group system

Answer 29

individuals from each department work together in groups to service particular accounts

Question 30

creative boutiques

Answer 30

small ad agencies

provide only creative services

Question 31

media specialist companies

Answer 31

specialize in buying media; sometimes in bulk

Question 32

commission

Answer 32

commission from media on any ad time or space purchased form a client

Question 33

negotiated commission system

Answer 33

sliding scale that becomes lower as clients’ media spending increases

Question 34

3 agency compensation methods

Answer 34

commissions from media
fee/cost/incentive-based
percentage charges

Question 35

fixed-fee method

Answer 35

monthly fee charged for services/media commissions earned given to a client

Question 36

fee-commission combination

Answer 36

media commissions received are credited against the fee

Question 37

percentage charges

Answer 37

adding markup of percentage charges to various services purchased from outside providers (research, art, photos)

Question 38

how agencies gain clients

Answer 38

solicitations
referrals
presentations
PR
image/reputation

Question 39

direct marketing agencies

Answer 39

variety of services like

• analytics
• research
• creative
• direct mail

Question 40

sales promotion agency

Answer 40

develop and manage sales promotion programs
- promo planning
- creative research
- catalog production
etc.

Question 41

digital/interactive agencies

Answer 41

use of digital marketing tools like websites, banners, search engines, etc.