MKTG 3740 CHAPTER 3

Advertisers, advertising agencies, suppliers, and the media

1. Advertisers - Companies that sponsor advertising for themselves and their products 2. Advertising agencies - Independent organizations of specialists who help advertisers plan, create, and prepare IMC campaigns 3. Suppliers - People and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production 4. The media - Communications vehicles such as radio and television networks who are paid to present an advertisement to their target audience

Identify ways in which lesser-known agencies solicit new business. (Check all that apply.)

1. by advertising and writing letters 2. by following up leads from sources in the business

local agencies, regional agencies, national agencies, international agencies

1. local agencies - Advertising agencies that specialize in creating advertising for businesses of a particular limited area 2. regional agencies - Advertising agencies that focus on the production and placement of advertising suitable for a certain part of the country 3. national agencies - Advertising agencies that produce and place the quality of advertising suitable for country-wide campaigns 4. international agencies - Advertising agencies that have offices or affiliates in major communication centers around the world and can help their clients market globally

Identify examples of suppliers from the following list. (Check all that apply.)

1. printers and film and video production houses 2. research companies 3. art studios and web designers

Identify types of specialists who may be employed by large agencies depending on the nature and needs of the agency's clients. (Check all that apply.)

1. social media experts or package designers 2. public relations people and direct marketing specialists 3. digital designers

Identify typical examples of regional advertisers from the following list. (Check all that apply.)

1. state lotteries 2. regional grocery and department store chains 3. statewide or multistate banks

______ supply agencies with artwork and illustrations for advertisements.

Art studios

Identify a similarity between art studios and Web design houses.

Both are suppliers that hire specialists.

4 C's

Chemistry - This is the most critical factor because effective working relationships require trust. Communication - A problem in this can lead to misunderstandings Conduct - This is the most commonly cited reason for agency switches in every country. Changes - This may include the loss of key staff people or the arrival of new management.

Identify a true statement about the international media.

International magazines are a good place for advertising high-end, brand-name products.

_____ refers to radio and television networks, stations that have news reporters, and publications that carry news and advertising.

Media

Identify an accurate statement about the functions of in-house agencies.

They help the company save money and tighten control over their advertising.

Identify a true statement about research companies.

They study the reading and viewing habits of their audiences.

The gap between account management and creative direction is bridged through research by a hybrid discipline called _____.

account planning

The job of an account executive is to ______.

act as a liaison between the agency and the client

Most people involved in advertising are employed by _____.

advertisers

Media planning is extremely important because _____.

advertisers can only communicate through some medium

The four basic groups of the advertising business are _____.

advertisers, advertising agencies, suppliers, and the media

Buying advertising space and time in various media in order to find customers for their clients' products, is the responsibility of ______.

advertising agencies

An independent organization of creative people and businesspeople who specialize in developing and preparing advertising plans, advertisements, and other promotional tools for advertisers is known as a(n) _____.

advertising agency

In lesser-known agencies the responsibility for seeking new business is usually handled by a(n) _____.

agency principal

People from the production department use an approved script or storyboard for a _____.

broadcast commercial

Printers help in the production of _____.

brochures, stationery, and business cards

The factors that influence the client-agency relationship are _____.

chemistry, communication, conduct, and changes

The words that make up the headline and message of an advertisement or commercial are called _____.

copy

True or false: In an advertising agency, account supervisors report to account executives.

false

True or false: Small advertising agencies normally work with independent production houses that specialize in film or video production or both.

false

True or false: The advertising industry does not include people who work for suppliers and the media.

false

Multinational corporations invest directly in many countries because _____.

foreign sales often grow faster than the domestic sales

An agency that is wholly owned by an advertiser and set up and staffed to do all the work of an independent full-service agency is known as a(n) _____ agency.

in-house

Globalization and the growing interest in IMC have led to _____.

industry consolidation

The media that operate in more than one country that generally do not make changes in content are called _____ media.

international

Advertising by businesses within a city or county directed toward customers within the same geographic area is referred to as ______ advertising.

local

The price for a half-page newspaper ad is $20,000. The newspaper bills the agency, and the agency in turn bills the client for the $20,000. The client pays that amount to the agency, and the agency sends $17,000 to the newspaper, keeping 15% ($3,000) for itself. This 15% that the agency keeps is called the agency's _____.

media commission

When an agency collects a fee from a client to pay for media placement, that media company pays the agency a ______ in compensation for handling collections from the client.

media commission

The strategic identification and selection of media vehicles for a client's advertising messages is referred to as _____.

media planning

Communications vehicles that are paid to present an advertisement to their target audience are referred to as the ____________________.

medium

Corporations operating and investing throughout many countries and making decisions based on availabilities worldwide are known as ______ corporations.

multinational

Businesses that work with specialists who ready artwork for reproduction, operate digital scanning machines to make color separations and plates, operate presses and collating machines, and run binderies are called _____.

printers

The division of an agency with the responsibility for purchasing photos, illustrations, and other relevant components and working with printers, engravers, and other suppliers for print ads is known as the _____.

production department

Companies that specialize in film or video production are called _____.

production houses

Most good advertising agencies get clients from existing clients, friends, review consultants, or even other agencies. This process is known as a _____.

referral

Having good personal relationships with a network of top executives is helpful for obtaining new clients using _____.

referrals

Companies that operate and market exclusively within an area, such as one part of the country, are called ______ advertisers.

regional

Companies that conduct and analyze marketing studies are called _____.

research suppliers

Account planning involves _____.

researching consumer needs and desires and helping the creative team translate the findings into successful campaigns

Fill in the blank question. Local advertising is also referred to as

retail advertising

In larger agencies, dealer ads, window posters, point-of-purchase displays, and dealer sales material are produced by the _____ department.

sales promotion

Rather than making speculative presentations, most agencies prefer giving presentations that _____.

showcase work that they have already done

When an agency gives a presentation to a potential client by showing what the agency might do for that client, the agency is giving a(n) ______ presentation.

speculative

People and organizations that assist both advertisers and agencies in the preparation of advertising materials, such as photography, illustration, printing, and production are known as _____.

suppliers

One of the current trends seen in the ad agency business is ______.

the emergence of consultancies

Identify an accurate statement about the purpose of an advertising agency.

to share relevant and persuasive information about a product or service to a desired audience

The department in an advertising agency that coordinates all phases of production and ensures deadlines are met is known as the _____ department.

traffic

True or false: Many entry-level college graduates hired by advertising agencies start in the agency's traffic department.

true

An ad agency organizes its functions, operations, and personnel based on the _____.

types of accounts it serves, its size, and its geographic scope