Exam 2: The Promotion Industry

Scenario 2-4 Advertising is a $300-billion-per-year business in the United States. Understandably, competition for clients is fierce among advertising agencies. There are many different reasons why a client may choose to move its business to a new agency, but there is one constant. The agency that wins the business is celebrated by the press; the agency that loses the business, however, is typically forgotten fairly soon. -(Scenario 2-4) A client has grown dissatisfied with its ad campaign. What is the best way the agency can respond?

Scenario 2-6 SC Johnson & Son produces a wide variety of very popular consumer products such as Shout , Windex , Mr. Muscle , Ziploc , Edge , Glade , Vanish , Raid , OFF! , Pledge , Scrubbing Bubbles Bathroom Cleaner. These products are in highly competitive markets and require substantial investments in consumer promotion to maintain market share. -(Scenario 2-6) SC Johnson is not interested in doing any of the duties associated with advertising research, creative development, or media placement. Which of the following types of organizations would likely be the best match for their needs?

Calvin Klein, and Revlon have developed their own in-house agencies because of economic reasons, and the fact that their in house agencies have brand specific control over and knowledge of their own marketing activities.

Scenario 2-4 Advertising is a $300-billion-per-year business in the United States. Understandably, competition for clients is fierce among advertising agencies. There are many different reasons why a client may choose to move its business to a new agency, but there is one constant. The agency that wins the business is celebrated by the press; the agency that loses the business, however, is typically forgotten fairly soon. -(Scenario 2-4) A client is unhappy because the work that its agency is turning out is constantly behind schedule and over budget. This client is likely to look for a new agency with

Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major state university. Brush Strokes gets a majority of its business from the student population. It has used the services of a local full-service advertising agency in the past. A great majority of its marketing budget has gone toward running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the university's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching the student population, they have not come to any conclusions about the best way to accomplish this. -(Scenario 2-2) As a small business, Brush Strokes is always looking for ways to trim its expenses. Which one of the following would be an effective strategy?

Cramer-Kasselt advertising is a mid-sized advertising agency that has a select list of relatively smaller budget clients including Air-Tran and Bombardier ATVs. The company is nevertheless considered a "full service" agency because it provides a wide array of promotional services.

The person in an advertising agency who will work with the client in translating cultural and consumer values into advertising messages is the

Direct marketing agencies and database agencies (sometimes also called direct response agencies) provide a variety of direct marketing services and maintain and manage large websites as one of their services.

The lifting of federal "cross-ownership" restrictions has caused a consolidation of media options.

Which of the following is considered to be an element of interactive media?

A fee system is much like that used by consultants or attorneys, whereby the advertiser and the agency agree on a fixed percentage of the media spending amount.

Scenario 2-1 Golf America is a small, national golf company that owns and operates two dozen golf courses in sunbelt cities in the Southwest, Texas, Florida and North Carolina. The company prides itself on buying older courses and investing in them to increase membership, outside play, and update the facility. Members of existing clubs see tremendous changes in grounds, landscaping, food service and golf amenities when Golf America assumes ownership and management responsibilities. In each market in which it owned and operates, Golf America engages a marketing group or agency to assist with communications and promotions. -(Scenario 2-1) Golf America just purchased a new golf course in Palm Springs. The course has long been the home of a "celebrity" golf tournament that in recent years has not been well attended. In order to spur interest in the tournament, Golf America decides to hire Golf Events & Tournaments, Inc. Which type of agency has Golf America hired for this project?

Media clutter, once a major problem of the mass media, has intensified as a barrier to quality advertising messages because of the introduction of new technologies and their contribution to an increased number of messages.

Scenario 2-1 Golf America is a small, national golf company that owns and operates two dozen golf courses in sunbelt cities in the Southwest, Texas, Florida and North Carolina. The company prides itself on buying older courses and investing in them to increase membership, outside play, and update the facility. Members of existing clubs see tremendous changes in grounds, landscaping, food service and golf amenities when Golf America assumes ownership and management responsibilities. In each market in which it owned and operates, Golf America engages a marketing group or agency to assist with communications and promotions. -(Scenario 2-1) Golf America enters a new market in which the new course they have purchased has a fifty-year history in the community. It is important to the new owners to enhance the reputation of the course, continue the relationship with existing members, yet at the same time invite new members to join and sponsor promotions to entice outside play to fill in the unused tee times and maximize course revenues. Most likely, Golf America would engage the following type of agency to manage its relationships:

Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major state university. Brush Strokes gets a majority of its business from the student population. It has used the services of a local full-service advertising agency in the past. A great majority of its marketing budget has gone toward running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the university's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching the student population, they have not come to any conclusions about the best way to accomplish this. -(Scenario 2-2) The owners of Brush Strokes have called a meeting with their agency to determine how Brush Strokes can benefit best from its advertising. The one agency department that must be represented at this meeting is

Scenario 2-3 ABC television network notified the Miss America Organization that it would not pick up the show for broadcast in 2005, leaving the pageant without a major broadcast outlet for the first time in 50 years. The news cannot have come as a shock to the Miss America Organization. A little more than a decade ago, the competition that started as an Atlantic City publicity stunt had grown to about 27 million viewers; in 2004, it drew a record-low 9.8 million, with the median age of the Miss America audience at 51. ABC paid $5.6 million for broadcast rights to the pageant in 2003. ABC, which took over the pageant after 30-year sponsor NBC bowed out, was not doing Miss America any favors airing it on Saturdays -- a low-viewership night. ("No More Miss America Pageantry for ABC," Washington Post.com, Lisa de Moraes, October 21, 2004) -(Scenario 2-3) The pageant's board of directors has come to the realization that the one night event is the only aspect that the general public equates to the Miss America contest. In reality, the event lasts year round with pageants in all fifty states during the year leading up to the nationally televised event. The board has selected a new full-service agency to tie all the events together in a cohesive marketing program including an interactive component. To do this, the agency will focus on:

Recently, advertising agencies have developed compensation programs that are based upon achievement of specific objectives for the client. These programs are known as ____ compensation.

There are many types of external facilitators in the advertising community. ____ help advertisers help advertisers prepare communications for new media.

Scenario 2-5 Thomas Motors is an independent auto dealer in a metropolitan market dominated by a number of national franchise dealerships including General Motors, Ford, Daimler/Chrysler, and foreign imports Honda, Toyota and more. In order to maintain their share of market, Thomas must do significant advertising in a number of different media. They carry several different popular makes of automobiles, both foreign and domestic, and maintain a high level of inventory on their lot at all times. -(Scenario 2-5) Thomas Motors wants to better understand the media consumption behaviors of consumers in their target markets. As a result, they wish to conduct a marketing research project to learn more about this issue. Which of the following types of firms are they most likely to commission to do such work?

Scenario 2-2 Brush Strokes is an art supply store located in a town with a population of about 100,000 people. The town is also home to a major state university. Brush Strokes gets a majority of its business from the student population. It has used the services of a local full-service advertising agency in the past. A great majority of its marketing budget has gone toward running small advertisements in the local and school newspapers at the beginning of each term. The advertising agency is now recommending that Brush Strokes devote a majority of its budget to running television spots during broadcasts of the university's football and basketball games. While the owners of Brush Strokes agree that they could be doing a better job of reaching the student population, they have not come to any conclusions about the best way to accomplish this. -(Scenario 2-2) The agency has informed Brush Strokes that if Brush Strokes agrees to its recommendation, the agency will have to rely heavily on outside sources. In all likelihood, the area the agency will seek the most help in will be