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

A) collateral service agency
B) buzz marketing agency
C) in-house agency
D) Centralized agency
E) creative boutique

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A) Typically, external ad agencies do not use media analysts and researchers.
B) External agencies are often preferred for their greater skill and expertise levels.
C) Generally, most external ad agencies do not offer creative services.
D) External ad agencies are generally cheaper than in-house agencies.
E) Unlike in-house agencies, outside agencies can be used to portray a singular global image.

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A) administration and execution.
B) coordination with other departments.
C) preparing materials for the sales force.
D) managing the sales force.
E) coordination with outside agencies and services.

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A) audit
B) personnel
C) media
D) account management
E) research

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A) The top management's day-to-day responsibilities usually include decision making and operations of advertising and promotion.
B) The top management does not provide input in the advertising and promotion process.
C) The top management is usually interested in how the advertising program represents the organization.
D) The top management is only interested in the amount of money that must be allocated to advertising and promotion.
E) The top management is more interested in tactical planning than strategic planning.

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A) sales promotion agencies.
B) public relations firms.
C) creative boutiques.
D) interactive agencies.
E) direct-response agencies.

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A) it facilitates organizations in reducing the number of effective communication channels.
B) it enables organizations with a centralized management to reduce costs.
C) it provides greater value to the final consumer.
D) it provides the creative team with more insight into consumers.
E) it has replaced brand management as the primary marketing function.

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A) Their brief is primarily creative.
B) They lack the ability or the authority to negotiate prices.
C) They review information on demographics and radio listenership.
D) They are in charge of creating the clients' advertising message.
E) They are generally headed by an account planner.

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A) it completely avoids the usage of a commission system to compensate ad agencies.
B) it gives employees the opportunity to develop expertise in servicing a variety of accounts.
C) it converts a full-function advertising agency into a creative boutique.
D) it avoids the involvement of the top management in the decision-making processes.
E) it allows the creative team and the media team to work together as a group.

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A) In a centralized organization, the advertising manager is responsible for all promotions activities including sales, whereas in a decentralized organization, the advertising manager is responsible for all promotions activities except sales.
B) A centralized organizational system is used in large companies with more than 1,000 employees, whereas a decentralized organizational system is used only in smaller companies with no more than 500 employees.
C) In a centralized organization, an advertising manager controls the entire promotions operation for all the products of a company, whereas in a decentralized organization, each product is assigned to a different brand manager.
D) A centralized organizational structure includes a category management system, whereas a decentralized organizational structure does not include one.
E) In a centralized organization, the efforts of all the brand managers are coordinated by the category managers, whereas in a

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A) storyboard.
B) logo.
C) art infusion.
D) packshot.
E) creative brief.

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A) commission systems
B) programmatic buying
C) cost-plus systems
D) incentive-based systems
E) objective-and-task systems

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A) IMC often results in greater economies of scale.
B) Since each communication discipline has the same cost structure, the concept of IMC itself becomes invalid.
C) IMC is only compatible with smaller organizations and surveys have witnessed compatibility issues when the process is scaled up.
D) The implementation of IMC is most likely to result in interdepartmental budget allocations problems.
E) The lack of people with the requisite broad perspective and skills to implement IMC presents the biggest obstacle.

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A) because advertisers were disenchanted with large agencies.
B) because advertisers wanted agencies to be more flexible and responsive than traditional agencies.
C) to save money for clients.
D) so that agencies could provide their clients with integrated marketing communications services worldwide.
E) to lessen the need for competitive pricing.

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A) finance.
B) sales.
C) product development.
D) marketing services.
E) research and development.

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A) they are increasingly concentrating on a mass-media strategy as it is relatively cheaper.
B) they are reducing their reliance on mass-media advertising, which is leading to changes in the way they compensate their agencies.
C) they are likely to move completely to cost-plus compensation systems.
D) incentive systems are becoming less important in compensating agencies.
E) fee agreements and cost-plus systems are generally being avoided in favor of the traditional compensation method.

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