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IMC Ch 3
Question | Answer |
---|---|
Centralized ad dept. system | Advertising Manager in charge of all activities except sales. Usually a company that doesn't have alot of different product lines. |
Decentralized ad dept. system | Use a Brand Manager to be responsible for the entire brand. Used in multiproduct firms. |
Category management system | includes category managers as well as brand managers to oversee an entire product category. |
Ways Ad agencies are compensated | commissions (old way), fee arrangement, or percentage charges |
Fixed-fee compensation | Ad agency charges a basic monthly fee for all of its services and credits to the client any media commissions earned |
Fee-commission combination | media commissions earned by the ad agency are credited agains the fee it charges the client |
Cost-Plus compensation | client agrees to pay the agency for the costs of the work plus a % of profit margin. |
Incentive-Based compensation | compensation for the agency based on a performance criteria |
Percentage charges compensation | adding a markup percentage to the services an agency purchases from outside providers. |
Financial Audit | audit for an ad agency's costs & expenses |
Qualitative Audit | audit for an ad agency's planning, developing, implementing client's ad programs, and the results acheived |
direct marketing or direct-response agency | specialize in direct mail but also do ad production and database mgmt. three departments: account mgmt, create, and media |