MKT ADV CHAPTER 4

Which amount would be a typical large annual budget for a local advertiser?

$100,000

Which activities are local agencies particularly suited for?

analyzing the local advertiser's business or products devising and implementing an integrated communications plan evaluating advertisers' competitive position

The fit of the verbal and visual symbols is decided by graphic designers called _____.

art directors

Local merchants focus on _____ because they often carry hundreds of different brands or numerous models of an exclusive brand.

attracting customers to their particular place of business

The forfeiture of media commissions to the client after charging the client for agency services occurs in the

straight-fee method

Separate ad departments are set up for different divisions, subsidiaries, regions, brands, or other groups when a company uses a system

decentralized

When transnational companies enter joint ventures or invest in foreign facilities, they typically use a(n) _____ structure.

decentralized international

Separate departments are used to organize an agency's various functions in a(an)

departmental system

Which type of media allows small advertisers to create highly concentrated and efficient campaigns?

digital media such as Facebook and Google

Providing advertising and nonadvertising services across the spectrum of communications and promotion is the defining feature of a _____.

full-service advertising agency

Which type of agency uses traditional media such as TV, magazines, and radio to advertise everyday goods such as toiletries and cars?

general consumer agency

Advertising agencies are usually categorized by ______.

geographic scope range of services offered type of business handled

How are the names of regional and national advertisers arranged in the Standard Directory of Advertising Agencies so that they are easy to find?

geographically

An agency is divided into a number of "little" agencies or groups in a(n)

group system

Local advertisers and agencies

have to assume many roles.

Firms in the same business or in the same part of town advertise jointly using _____.

horizontal cooperative advertising

Meeting or exceeding agreed-upon marketing objectives causes an agency to earn more, while the opposite causes the agency to earn less in the system.

incentive

Unlike national advertisers, local advertisers deal with _____.

individual customers

Positive long-term perceptions of an entire business, and not just of a particular product or service, can be obtained through _____.

institutional advertising

Firms that specialize in designing web pages and creating fun, involving, information-rich, online advertising are called _____.

interactive agencies

The birth of the _____ can be credited to the increased interest in integrated marketing communications and rapid Internet growth.

interactive agency

Which type of agency has offices or affiliates in major communication centers around the world?

international

According to the American Association of Advertising Agencies (AAAA) Service Standards, an advertising agency's purpose is to _____.

interpret a legally marketed product or service to the public

The traditional "schlock" approach to local advertising is characterized by

items crowded to fit into the space. heavy, bold type. loud headlines.

A decentralized organization is more practical than a centralized organization when _____.

large companies establish divisions in different countries

International agencies are often formed by which type of agency?

large national agencies

When it comes to making the sale and dealing with customers, where do most relationships start and develop?

local advertising

Which type of advertising is sometimes called retail advertising because retail stores account for so much of it?

local advertising

Since the advertisers, the media, or the suppliers do not own advertising agencies, advertising agencies _____.

provide unbiased viewpoints of advertisers' businesses

Arrange the steps involved in interpreting information of a product to the public in the correct order, from the first step (at the top) to the last step (at the bottom).

studying analyzing formulating writing

Banks, insurance brokers, restaurants, and music stores are examples of _____.

specialty businesses and services

Which of the following statements about local advertisers are true?

-They are good at integrating different aspects of marketing communications. -They engage in personal selling and face-to-face interactions with customers. -They fulfill many roles beyond and in addition to marketing.

Identify the accurate statement about advertising.

A wide variety of people with various skills are employed in advertising.

_____ employ the majority of people in advertising.

Advertisers

What are the advantages of a decentralized system of advertising?

Campaigns and media schedules can be adjusted faster. New approaches and creative ideas can be introduced more easily. Sales results can be measured independently of other divisions.

Advertising agencies are usually categorized by the types of media they specialize in, the demographics they tend to target, and the tone of their ads.

False

What is the main disadvantage of a decentralized system of advertising?

It encourages departments to place their own wellbeing over that of the company.

Why do local advertisers use ad agencies less often than national advertisers?

Local advertisers' budgets are often too low to hire an agency.

_____ are an example of government or nonprofit organizations.

Municipalities

_____ are companies that sell in several regions or throughout a country.

National advertisers

_____ is used to stimulate sales of particular merchandise or increase store traffic by placing items on sale and offering two-for-one specials or other deals.

Sale advertising

Global advertising can be doomed if which of the following are true?

The product is used for different purposes in different countries. A need has yet to be clearly created for the product in some countries. The market in each country has developed differently.

What is the primary disadvantage of creative boutiques?

They only focus on being creative and do not provide research, sales expertise, or customer service.

What is the role of the media in the advertising industry?

To sell advertisers time and space to promote their products and services

Local entrepreneurs need to know more about every facet of marketing communications than national advertisers.

True

Media planning is crucial because

a medium must be used for advertisers to communicate

Maggie is a photographer. She takes photographs for a local advertising agency to use to help their clients create sales campaigns. Maggie would be classified as

a supplier.

The agency and the client communicate through _____.

account executives

The responsibility for representing the client's views to the agency and utilizing the agency's resources to create plans that properly serve the needs and visions of the client lies with _____.

account executives

The creative team's ideas are turned into successful campaigns based on the analysis of consumer demands by _____.

account planners

The breach between account management and creative personnel is narrowed through research by a hybrid discipline known as

account planning

Planning, creating, and producing ads; performing research; and selecting media refer to the services of a full-service advertising agency.

advertising

According to the American Association of Advertising Agencies (AAAA), creative people and businesspeople specializing in developing and preparing advertising plans, advertisements, and other promotional tools are a part of independent organizations called _____.

advertising agencies

The administration of the advertising operations of a small business is executed by a(n) _____.

advertising manager

When local advertisers need to make room for new product lines or new models and get rid of slow-moving lines, they should use _____.

clearance advertising

When corporations choose a standardized global approach to their advertising, they

believe that their product is used everywhere to meet the same universal need.

Identify the media services provided by ad agencies to clients.

buying negotiating research

The concept of a 15 percent media commission ______.

buys many services for large accounts is changing quickly began with newspapers decades ago

Identify the ways in which companies organize their centralized advertising departments.

by media by product or brand by end user

Arrange the different job roles in an overseas division of a transnational company in the order of their hierarchy, with the highest ranking at the top.

category manager marketing brand brand group

The advertising department is utilized by companies that focus on cost efficiency and continuity in their communications programs.

centralized

An advertising manager usually reports to a marketing vice president in a ___________________.

centralized advertising department

Locating and recruiting new employees, offering services, or selling or leasing merchandise is frequently done through newspapers with _____.

classified advertising

In vertical cooperative advertising, the _____.

complete ad is provided by the manufacturer

A company that wants its centralized advertising department to be organized by end user should categorize its department by _____.

consumer advertising and trade advertising

An advertisement's headline and message is created by people called

copywriters

Which type of agency is made up of talented designers and copywriters who focus exclusively on developing exciting and distinctive concepts for advertisers?

creative boutiques

Which type of agency is a smaller, more responsive version of the general consumer agency?

entrepreneurial agency

Traffic management departments

focus on meeting deadlines. check product completion. are the destination for entry-level graduates.

A _____ usually oversees the functions of a department head or an advertising manager of a chain store.

marketing manager

In order to pay for items they purchased from other suppliers, agencies increase the client's bill with a 17.65 percent

markup.

The space and time that advertising agencies purchase on behalf of their clients is subject to a 15 percent charge. This charge is known as a _____.

media commission

Which characteristic of advertising agencies is most responsible for saving clients time and money?

media expertise

When it comes to cooperative advertising, budgets today favor which types of media?

mobile media digital media social media

Which type of company strives for full, integrated participation in world markets?

multinational corporations

Ford, General Motors, and Chrysler are all examples of _____.

national advertisers

Which types of agencies would be most likely to participate in trade groups such as the Western States Advertising Agency Association?

national agencies regional agencies

The advertising of _____ tends to focus on the competitive features of one brand over another, especially in conquest sales situations, because the companies are concerned about building their brands.

national companies

Advertising agencies' media expertise allows them to perform which activities more efficiently than advertisers?

negotiating advertising contracts arranging advertising schedules researching media spaces

In which form of media is the schlock approach most likely to be used?

newspaper

Which of the following groups are likely to refer an agency to an advertiser?

other agencies clients review consultants

What do media-buying services sell to agencies or advertisers?

packages of television or radio time

An agency's production department buys components such as type, photos, and illustrations, and collaborates with suppliers such as printers and engravers to create

print advertisements

An agency's _____ is entrusted with an ad after it is designed, written, and approved by a client.

print production manager

Advertising that stimulates short-term action with regard to a product or service while building awareness of the business is called _____.

product advertising

A state lottery or a grocery store that operates in a three state area are both examples of _____.

regional advertisers

Companies that market exclusively within an area, such as one part of the country, are called _____.

regional advertisers

When advertising notifies consumers about services or merchandise that are offered at normal prices, it is called _____.

regular price-line advertising

One of the major differences between national and local advertisers is in the _____.

relationship with the customer

Deal-of-the day sites, such as Groupon, allow local advertisers to engage in which type of advertising?

sale advertising in email

What do business-to-business agencies use to cover the cost of their overhead?

service fees commissions

In the context of time orientation, unlike local advertisers, national companies _____.

think and plan long-term

What are the key purposes of cooperative (co-op) advertising?

to help distributors, dealers, or retailer make more sales to build the manufacturer's brand image

One of the expectations of advertisers with in-house agencies is

to save money through reduced overhead

Where are business-to-business agencies most likely to place advertisements?

trade magazines

All phases of production are coordinated and ensured of completion before client or media deadlines by the _____.

traffic department

Among the top 25 multinational corporations in the United States, what share of their profits come from overseas?

two-thirds

Which activities does a media-buying service perform after it sells a media package to an advertiser?

verifying performances ensuring "make goods" for any missed spots ordering spots

Unlike national advertisers, local advertisers think and plan their advertising strategies in terms of _____.

weeks