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Advertisers are companies that _______.
sponsor campaigns to promote their own services and products
 
Identify the accurate statement about advertising.
A wide variety of people with various skills are employed in advertising.
 
Which type of advertising is placed by local businesses in a particular city or county targeting customers in their geographic area?
local advertising
 
When it comes to making the sale and dealing with customers, where do most relationships start and develop?
local advertising
 
Banks, insurance brokers, restaurants, and music stores are examples of _____.
specialty businesses and services
 
Advertisers plan, create, and prepare ad campaigns and other promotional materials with help from _____.
advertising agencies
 
A _____ usually oversees the functions of a department head or an advertising manager of a chain store.
marketing manager
 
_____ employ the majority of people in advertising.
Advertisers
 
Which type of advertising is sometimes called retail advertising because retail stores account for so much of it?
local advertising
 
When advertising notifies consumers about services or merchandise that are offered at normal prices, it is called _____.
regular price-line advertising
 
Where are most consumer sales made (or lost)?
locally
 
_____ 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
 
_____ are an example of government or nonprofit organizations.
Municipalities
 
The administration of the advertising operations of a small business is executed by a(n) _____.
advertising manager
 
Locating and recruiting new employees, offering services, or selling or leasing merchandise is frequently done through newspapers with _____.
classified advertising
 
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.
 
Advertising that stimulates short-term action with regard to a product or service while building awareness of the business is called _____.
product advertising
 
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
 
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
 
Firms in the same business or in the same part of town advertise jointly using _____.
horizontal cooperative advertising
 
Positive long-term perceptions of an entire business, and not just of a particular product or service, can be obtained through _____.
institutional advertising
 
A state lottery or a grocery store that operates in a three state area are both examples of _____.
regional advertisers
 
Local advertisers and agencies:
have to assume many roles.
 
_____ are companies that sell in several regions or throughout a country.
National advertisers
 
When it comes to cooperative advertising, budgets today favor which types of media?
digital media
mobile media
social media
 
In vertical cooperative advertising, the _____.
complete ad is provided by the manufacturer
 
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
 
Companies that market exclusively within an area, such as one part of the country, are called _____.
regional advertisers
 
Unlike national advertisers, local advertisers think and plan their advertising strategies in terms of _____.
weeks
 
Ford, General Motors, and Chrysler are all examples of _____.
national advertisers
 
True or false: Local entrepreneurs need to know more about every facet of marketing communications than national advertisers.
True
 
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
 
The _____________ advertising department is utilized by companies that focus on cost efficiency and continuity in their communications programs.
centralized
 
In the context of time orientation, unlike local advertisers, national companies _____.
think and plan long-term
 
A company that wants its centralized advertising department to be organized by end user should categorize its department by _____.
consumer advertising and trade advertising
 
Separate ad departments are set up for different divisions, subsidiaries, regions, brands, or other groups when a company uses a _____________ system.
decentralized
 
Which amount would be a typical large annual budget for a local advertiser?
$100,000
 
When transnational companies enter joint ventures or invest in foreign facilities, they typically use a(n) _____ structure.
decentralized international
 
An advertising manager usually reports to a marketing vice president in a ___________________.
centralized advertising department
 
Among the top 25 multinational corporations in the United States, what share of their profits come from overseas?
two-thirds
 
Identify the ways in which companies organize their centralized advertising departments.
by end user
by media
by product or brand
 
A decentralized organization is more practical than a centralized organization when _____.
large companies establish divisions in different countries
 
Since the advertisers, the media, or the suppliers do not own advertising agencies, advertising agencies _____.
provide unbiased viewpoints of advertisers' businesses
 
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
 
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 type of company strives for full, integrated participation in world markets?
multinational corporations
 
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
 
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
 
Which type of agency has offices or affiliates in major communication centers around the world?
international
 
Planning, creating, and producing ads; performing research; and selecting media refer to the _________ services of a full-service advertising agency.
advertising
 
Why do local advertisers use ad agencies less often than national
advertisers?
Local advertisers' budgets are often too low to hire an agency.
 
Which type of agency is a smaller, more responsive version of the general consumer agency?
entrepreneurial agency
 
What do business-to-business agencies use to cover the cost of their overhead?
commissions
service fees
 
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
 
International agencies are often formed by which type of agency?
large national agencies
 
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
 
Where are business-to-business agencies most likely to place advertisements?
trade magazines
 
What is the primary disadvantage of creative boutiques?
They only focus on being creative and do not provide research, sales expertise, or customer service.
 
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 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
 
Firms that specialize in designing web pages and creating fun, involving, information-rich, online advertising are called _____.
interactive agencies
 
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 agency and the client communicate through _____.
account executives
 
What do media-buying services sell to agencies or advertisers?
packages of television or radio time
 
The birth of the _____ can be credited to the increased interest in integrated marketing communications and rapid Internet growth.
interactive agency
 
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 breach between account management and creative personnel is narrowed through research by a hybrid discipline known as ________.
account planning
 
An advertisement's headline and message is created by people called _____.
copywriters
 
An agency's _____ is entrusted with an ad after it is designed, written, and approved by a client.
print production manager
 
The creative team's ideas are turned into successful campaigns based on the analysis of consumer demands by _____.
account planners
 
The fit of the verbal and visual symbols is decided by graphic designers called _____.
art directors
 
Media planning is crucial because _____.
a medium must be used for advertisers to communicate
 
An agency is divided into a number of "little" agencies or groups in a(n) _____.
group system
 
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
 
Identify the media services provided by ad agencies to clients. [Check all that apply]
buying
research
negotiating
 
Separate departments are used to organize an agency's various functions in a(an) _____.
departmental system
 
The concept of a 15 percent media commission ______.
buys many services for large accounts
began with newspapers decades ago
is changing quickly
 
The retention of media commissions and billing of clients on a monthly basis by agencies occur within the _____ pricing method.
fee-commission combination
 
Reaching specific, agreed-upon goals leads to greater compensation for an agency in the _____.
incentive system
 
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
 
The forfeiture of media commissions to the client after charging the client for agency services occurs in the _____.
straight-fee method
 
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
 
What initiates most important account shuffles on Madison Avenue?
referrals from agency review consultants
 
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.
 
One of the expectations of advertisers with in-house agencies is _____.
to save money through reduced overhead
 
Which of the following groups are likely to refer an agency to an advertiser?
other agencies
review consultants
clients
 
Which community relations technique used by agencies is considered controversial in some areas?
helping local politicians
 
Rather than making speculative presentations, most agencies prefer focusing their presentations on _____.
the work they've already done
 
Why do some agencies provide free services or sponsor events in their community?
to gain visibility and respect
 
Because an agency is selling and a client is buying, the agency tries to give the best impression it can during the _____ process.
presentation
 
The number of distinct stages in the life cycle of the agency-client relationship is _____.
four
 
Identify the accurate statement about the development stage of the client-agency relationship.
The agency and the client are highly optimistic.
 
The _____ refers to the day-to-day working relationship of a client and an agency.
maintenance stage
 
Before an agency and client officially do business, the ____ stage occurs.
prerelationship
 
Identify the major forces that influence the client-agency relationship.
chemistry
communication
changes
 
The _____ begins when a company appoints an agency to create an IMC campaign.
development stage
 
Art studios and Web design houses, printers, engravers, film and video production houses, and research companies are all examples of _____.
suppliers
 
Specialists who design effective, cost-efficient advertisements and web pages are employed by _____.
web design houses