Chapter 4 Flashcards
Clearance advertising
a type of local advertising design to make room for new product lines or new models or to get rid of slow-moving product lines, etc.
Fee-commission combination
a pricing system in which an advertising agency charges the client a basic monthly fee for its services and also retains any media commissions earned
Full-service advertising agency
an agency equipped to serve its clients in all areas of communication and promotion
General consumer agency
an agency that represents the widest variety of accounts, but it concentrates on companies that makes goods purchased chiefly by consumers
Group system
system in which an ad agency is divided in a number of little agencies or groups
Horizontal cooperative advertising
joint advertising effort of related businesses to create traffic for their type of business
Incentive system
a form of compensation in which the agency shares in the client’s success when a campaign attains specific, agreed-upon goals
Maintenance stage
in the client-agency relationship, the day-to-day interaction that, when successful, may go on for years
Markup
a source of agency income gained by adding some amount to a supplier’s bill, usually 17.65%
Point
in retailing, the place of business
Regular price-line advertising
a type of retail advertising design to inform consumers about the services available or the wide selection and quality of merchandise offered at regular prices
Speculative presentation
an agency’s presentation of the advertisement it proposes using in the event it is hired. It is usually made at the request of a prospective client and if often not paid for by the client
Straight-fee (retainer) method
a method of compensation for ad agency services in which a straight fee, or retainer, is based on a cost-plus-fixed-fees formula. Under this system, the agency estimates the amount of personnel time required by the client, determines the cost of that personnel, and multiplies by some factor
