Marketing Ad Ch. 3
advertising agency
A firm that specializes in the creation, production, and placement of advertising messages and may provide other services that facilitate the marketing communications process.
incentive-based system
A form of compensation whereby an advertising agency's compensation level depends on how well it meets predetermined performance goals such as sales or market share.
fixed-fee method
A method of agency compensation whereby the agency and client agree on the work to be done and the amount of money the agency will be paid for its services.
cost-plus system
A method of compensating advertising agencies whereby the agency receives a fee based on the cost of the work it performs plus an agreed-on amount for profit.
fee-commission combination
A type of compensation system whereby an advertising agency establishes a fixed monthly fee for its services to a client and media commissions received by the agency are credited against the fee.
collateral services
Agencies that provide companies with specialized services such as package design, advertising production, and marketing research.
in house agency
An advertising agency set up, owned, and operated by an advertiser that is responsible for planning and executing the company's advertising program. advantage: cost savings, more control disadvantage: less experience, less access to top creative talent
full-service agency
An advertising agency that offers clients a full range of marketing and communications services, including the planning, creating, producing, and placing of advertising messages and other forms of promotion.' Account, marketing, creative, management and finance,
creative boutiques
An advertising agency that specializes in and provides only services related to the creative aspects of advertising.
centralized system
An organizational system whereby advertising along with other marketing activities such as sales, marketing research, and planning are divided along functional lines and are run from one central marketing department. advantage: facilitated communications, fewer personnel required disadvantage: less involvement with understanding of overall marketing goals, longer response time
decentralized system
An organizational system whereby planning and decision-making responsibility for marketing, advertising, and promotion lies with a product/brand manager or management team rather than a centralized department. advantage: rapid response to opportunities and problems, increased flexibility disadvantage: misallocation of funds, internal conflicts
media specialist companies
Companies that specialize in the buying of advertising media time and space, particularly for television and digital advertising
media organizationg
One of the four major participants in the integrated marketing communications process whose function is to provide information or entertainment to subscribers, viewers, or readers while offering marketers an environment for reaching audiences with print and broadcast messages.
specialized marketing communications services
Organizations that provide marketing communication services in their areas of expertise including direct marketing, public relations, and sales promotion firms.
clients
The organizations with the products, services, or causes to be marketed and for which advertising agencies and other marketing promotional firms provide services.
