Management of Promotion Exam 1 Quiz Chapter 3

A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Account executive.

A(n) _____ is an individual who specializes in helping clients choose their advertising agencies.

Ad agency review consultant.

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.

Advertising.

In the ad agency industry, clients refer to

An advertiser or organization that has the product, service, or cause that needs to be marketed.

Which of the following describes a limitation associated with the decentralized organizational structure for advertising?

Brand managers often end up competing for management attention, marketing budgets, and other resources.

Package design firms, market research companies, photographers, and printers are examples of?

Collateral service providers.

Which of the following differentiates a centralized organization from a decentralized organization?

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.

A company often uses a centralized organizational system when?

It does not have many product lines or brands to advertise.

Which of the following is true of the role of an advertising manager, under a centralized management system?

It includes budgeting and planning media schedule.

Which of the following statements is true about account services?

It is the link between the advertising agency and its clients.

Under a decentralized system, the advertising department is generally a part of?

Marketing services.

_____ is a system whereby the commissions average from 8 to 10 percent or are based on a sliding scale that becomes lower as the clients' media expenditures increase.

Negotiated commission system.

A major reason why some companies choose to use an in-house agency is to?

Reduce advertising and promotions costs.

Pluto Inc., a new ad agency, primarily obtains clients through cold calls, promotional letters, and following up on known leads. The company maintains a separate department which is responsible for bringing in new accounts. In this scenario, the company is obtaining clients through?

Solicitation.

As more companies adopt the integrated marketing communications approach to their advertising and promotions?

They are reducing their reliance on mass-media advertising, which is leading to changes in the way they compensate their agencies.

Which of the following statements is true of media departments?

They review information on demographics and radio listenership.

Which of the following statements is true about creative boutiques?

They tend to provide quicker innovative services due to less bureaucracy.

Which of the following is the reason why companies are increasingly choosing to opt for an incentive-based system?

To demand more accountability and pay the agencies based on their performance

The _____ department coordinates all phases of production to see that the ads are completed on time and that all deadlines for submitting the ads to the media are met.

Traffic.

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

provide an environment for the firm's marketing communications message.