Exam 5: The Advertising Agency, Media Services, and Other Services

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Which of the following is an inherent reality that mega-agencies seem to forget when they decide to create an agency to serve a single account?

(Multiple Choice)
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Which of the following may NOT typically be the responsibility of the vice president for marketing services in a traditional advertising agency?

(Multiple Choice)
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Which of the following advantages does a talent and production agency bring to some clients?

(Multiple Choice)
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Which of the following pertains to international agency networks?

(Multiple Choice)
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Which of the following is NOT a separate department in the traditional organizational structure of an agency?

(Multiple Choice)
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Types of work for which an agency can negotiate a fixed fee include:

(Multiple Choice)
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The concept for mega-agency holding companies, such as WWP, is a relatively new idea envisioned by the Saatchi brothers in 1986.

(True/False)
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The first ad salesman to work for a commission was:

(Multiple Choice)
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One of the main responsibilities for the research director in a typical traditional advertising agency is to help define marketing and copy goals.

(True/False)
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Assuming you charged the standard agency commission rate for placement of a newspaper ad that cost $10,000, what costs are you NOT allowed to bill the client for?

(Multiple Choice)
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Since the Colonial era, advertising has gone through a no-rebate age, the age of negotiation, and the reengineering age to find itself in the media and digital age.

(True/False)
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Kang & Lee, Uniworld and Diesti are specialty agencies that that focus on:

(Multiple Choice)
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There is no universal model for the operational structure of a full-service agency.

(True/False)
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George Rowell might be considered in advertising as the father of:

(Multiple Choice)
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Ogilvy & Mather's effective global advertising stems from creating advertising locally that follows the worldwide strategic plan to maintain the desired brand image.

(True/False)
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Compare and contrast the advantages and disadvantages that a mega-agency holding company provides its clients.

(Essay)
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In 1956, a(n)________ resulted from the U.S. Department of Justice investigating no-rebating provisions between media associations and agencies, which opened the door to review of the total compensation an agency received for its services.

(Short Answer)
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Match of the following
It is the accountable phase in a strategic plan.
LexisNexis Red Book of Advertising
Plans, creates, produces, places, and evaluates advertising for clients and may handle other aspects in the promotion phase of the marketing mix if asked by the client.
New York and Tokyo
A publishing company would pay commissions to agencies only if they agreed to collect the full price of media placement from advertisers; later adopted by Magazine Publishers of America.
emotions
Correct Answer:
Verified
Premises:
Responses:
It is the accountable phase in a strategic plan.
LexisNexis Red Book of Advertising
Plans, creates, produces, places, and evaluates advertising for clients and may handle other aspects in the promotion phase of the marketing mix if asked by the client.
New York and Tokyo
A publishing company would pay commissions to agencies only if they agreed to collect the full price of media placement from advertisers; later adopted by Magazine Publishers of America.
emotions
Remarkably similar around the world, they can cut through cultural differences.
Marion Harper
In 1986, started the modern version of the mega-agency holding company that Harper modeled in the '60s.
Scopes trial
A main event of 1925, which elevated the importance of radio as a vehicle for news and gave advertising a vital new medium for almost 30 years thereafter.
multiple office agencies
In 1960, he recognized that once an agency reached a particular size, there was a need for a holding company that could better coordinate services and research numerous competing accounts to better serve clients' needs.
evaluation
Common replacement for traditional compensation system of media commissions for agencies.
pro bono
First strategic operation that focuses on collection of all that can be learned about a product category, the brand, and its competitors.
Omnicom
Under this organizational structure, each office functions as an autonomous agency that serves different clients and draws on the talents and services of the other offices.
marketing services
Leading international advertising centers in terms of local billings.
Curtis No-Rebating rule
In a traditional structure, this person's main contribution involves anticipating client needs and ensuring the agency produces works to the client's satisfaction.
performance fees
Quaker Oats pressured this mega-agency holding company to create what became known as Element 79 to serve Quaker's brands in its merger with Pepsico.
account service
It lists over 5,000 profiles on a variety of agencies, media-buying services, sales promotion agencies and public relations firms.
Saatchi & Saatchi
In a typical agency, this department includes media planning and buying, research and sales promotion functions.
research
(Matching)
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Francis Ayer pioneered the relationship of advertisers as clients rather than as customers who would direct their business to various salespeople.

(True/False)
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In bartering, the one item that neither an agency nor an advertiser offers media is ________.

(Multiple Choice)
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