Chapter 4

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

$100,000

Which of the following are true concerning presentations agencies give to advertisers?

-It gives them a chance to familiarize themselves with each other before doing business together. -Speculative presentations allow advertisers to see what agencies will do before they hire them. -Larger clients generally receive larger presentations.

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

_____ employ the majority of people in advertising.

Advertisers

_____ are the service providers of an advertising agency.

Suppliers

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

copywriters

Before an agency and client officially do business, the ____ stage occurs.

prerelationship

Direct-response advertising

seeks an instant response.

Relatively new advertising media include

-business presentations recorded on CDs or DVDs. -computer delivered telephone messages. -computers that play sales messages while customers are on hold.

International media

-were limited to newspapers and magazines in the past. -use the same content in multiple countries. -now includes television.

_________ advertising includes advertisements on buses, taxis, and subways.

Transit

What is the primary motivator for audience consumption on social media sites?

audience-created content

The four major forces: communication, conduct, chemistry and changes influence the

client/agency relationship.

Web design houses employ specialists who can

design ads.

Advertising on billboards is known as _____.

outdoor advertising

"USA Today" and "The New York Times" are both examples of _____.

print media

Any commercially published, printed medium that sells advertising space to advertisers is referred to as _____.

print media

Highly trained specialists who prepare artwork for reproduction, operate digital scanning machines, presses and collating machines, and run binderies are contracted by _____.

printers

Independent research companies and consultants are normally used for _______________.

research

The need to monitor the viewing habits of audiences has led to _____.

research being closely allied to advertising

Websites where audience-created content is the prime motivation for audience consumption are referred to as _____.

social media

A variety of new advertising media has been initiated by _____.

technology

The maintenance stage of a client-agency relationship

includes daily interactions. typically lasts only a few years. can last for a long time.

Unlike small agencies that work with local TV stations to produce commercials, large agencies normally work with _____.

independent production houses

_____ are an example of government or nonprofit organizations.

Municipalities

_____ 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

Identify the accurate statement about the development stage of the client-agency relationship.

The agency and the client are highly optimistic.

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

True

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

Advertisers plan, create, and prepare ad campaigns and other promotional materials with help from _____.

advertising agencies

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

advertising manager

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

Identify the media services provided by ad agencies to clients. [Check all that apply]

buying research negotiating

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

by end user by media by product or brand

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

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

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

The _____ begins when a company appoints an agency to create an IMC campaign.

development stage

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

digital media mobile media social media

The retention of media commissions and billing of clients on a monthly basis by agencies occur within the _____ pricing method.

fee-commission combination

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

Local advertisers and agencies

have to assume many roles.

Which community relations technique used by agencies is considered controversial in some areas?

helping local politicians

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

horizontal cooperative advertising

Tasks that are usually performed by an independent full-service agency can also be taken care of within the company by a(n) _____.

in-house agency

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

Reaching specific, agreed-upon goals leads to greater compensation for an agency in the _____.

incentive system

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

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 placed by local businesses in a particular city or county targeting customers in their geographic area?

local advertising

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

local advertising

Where are most consumer sales made (or lost)?

locally

The _____ refers to the day-to-day working relationship of a client and an agency.

maintenance stage

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

marketing manager

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

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

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

other agencies review consultants clients

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

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

provide unbiased viewpoints of advertisers' businesses

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

regular price-line advertising

Art studios and Web design houses, printers, engravers, film and video production houses, and research companies are all examples of _____.

suppliers

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

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

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

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

Advertisers are companies that _______.

sponsor campaigns to promote their own services and products

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

think and plan long-term

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

National advertisers

What is the primary disadvantage of creative boutiques?

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

Media planning is crucial because _____.

a medium must be used for advertisers to communicate

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

Identify the major forces that influence the client-agency relationship.

chemistry communication changes

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

commissions service fees

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

decentralized

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

entrepreneurial agency

Because an agency is selling and a client is buying, the agency tries to give the best impression it can during the _____ process.

presentation

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

product advertising

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

art directors

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

specialty businesses and services

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

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

The agency and the client communicate through _____.

account executives

What initiates most important account shuffles on Madison Avenue?

referrals from agency review consultants

Rather than making speculative presentations, most agencies prefer focusing their presentations on _____.

the work they've already done

Identify the accurate statement about advertising.

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

The number of distinct stages in the life cycle of the agency-client relationship is _____.

four

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

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

group system

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.

The concept of a 15 percent media commission ______.

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

Digital interactive and social media

-force advertisers to find new creative methods. -provide small companies access to a --large customer base. -allow immediate participation.

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

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

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

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

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.

1. Category Manager 2. Marketing Manager 3. Brand Manager 4. Brand Group

Which types of advertising materials are produced by printers?

brochures point-of-purchase displays business cards

Audiences are allowed to participate actively and immediately in all _____.

digital interactive media

Avoiding the use of a commercial media form and instead advertising directly to customers is called _____.

direct-mail advertising

Radio and television, earlier called broadcast media, are now referred to as _________ media.

electronic

The development of cable TV has led to the transmission of TV programs _____ through wires rather than broadcast through the air.

electronically

True or false: Most agencies have in-house TV production capabilities.

fALSE

Media which serve several countries, usually without any change in content, are referred to as _____.

international media

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

straight-fee method

Why do some agencies provide free services or sponsor events in their community?

to gain visibility and respect

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

regional agencies national agencies

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

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

two-thirds

Specialists who design effective, cost-efficient advertisements and web pages are employed by _____.

web design houses

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

weeks