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Exam 3: Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing

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Question 31

Multiple Choice

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CL Ads, an ad agency, provides media services for its clients.It prepares and places ads in local and national magazines at a specified cost.However, the agency bills its clients a flat 15 percent of the ad cost as revenue.In this scenario, the agency is using a(n) _____ system.

A) incentive-based
B) flexible revenue
C) cost-plus
D) commission
E) fixed-fee

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verified

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Question 32

Multiple Choice

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With respect to the major participants in the advertising and promotions process, which of the following participants include sales promotion agencies, digital/interactive agencies, and public relations firms?

A) advertising agencies
B) media organizations
C) collateral service agencies
D) specialized marketing communications services agencies
E) bait-and-switch marketing service agencies

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Question 33

Multiple Choice

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Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Pluto Inc.is a small agency that employs writers, artists, and other innovative personnel.It is a specialized agency and does not deal with research, account planning, or television and radio space buying.In this scenario, Pluto Inc.is an example of a(n)

According to marketing executives, the biggest obstacle to implementing integrated marketing communications (IMC) is the lack of people with the broad perspective and skills to make it work.

Momentum Automobiles, an automobile manufacturer, hires Dreams Inc.to cater to its advertising needs.Momentum is only required to provide the necessary finances and does not take part in any decision making.In the given scenario, Momentum Automobiles would be classified as a(n)

Negotiated commission rates for advertising agencies

Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?

Independent companies that exclusively help in the purchase of radio and television time are known as

Thirty-seven percent of companies surveyed in an ANA study used a combination of fees and commissions to compensate agencies, which is a _____ compensation system.

Which of the following refers to the amount of client money that agencies spend on media purchases and other equivalent activities?

Which of the following departments of a full-service agency analyzes, selects, and contracts for space or time to publish or broadcast the client's advertising message?

A decentralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise.

In a centralized organizational structure, the _____ department is responsible for developing promotional plans that will be approved by management and recommending a promotions program based on the overall marketing plan, objectives, and budget.

A company often uses a decentralized organizational system when

From the perspective of a promotional planner, the primary purpose of media is to

Jim, an employee of CL Inc., is responsible for planning, marketing, budgeting, sales, and profit performance of a specific brand.He has two assistants who help in planning, implementing, and controlling the marketing program.In this scenario, Jim is an example of a(n)

Within the creative services department of a full-service agency, once the copy, layout, illustrations, and mechanical specifications of the ad have been completed and approved, the ad is turned over to the _____ department.

The creative services department of an agency analyzes, selects, and contracts for space or time in the media that will be used to deliver the client's advertising message.

The agency evaluation is often done on a subjective, informal basis, particularly in smaller companies where ad budgets are low.