1. Evaluate the decision by BMW and its advertising agency, Fallon Worldwide,to develop short-films that can be viewed at the BMWFilms.com website. Do you think more companies will be using the "advertainment" concept to promote their products?
2. Identify the various organizations that participate in the integrated marketing communications process and briefly discuss their roles and responsibilities.
3. What are some of the specific responsibilities and duties of an advertising manager under a centralized advertising department keting,and financial and management services); the other two specialize in creative services and media buying, respectively. Agencies are compensated through commission systems, percentage charges,and fee- and cost-based systems. Recently, the emphasis on agency accountability has increased. Agencies are being evaluated on both financial and qualitative aspects, and some clients are using incentive-based compensation systems that tie agency compensation to performance measures such as sales and market share.
In addition to using ad agencies, marketers use the services of other marketing communication specialists, including structure? Why is an advertising manager needed if a company uses an outside agency?
4. Discuss the pros and cons of using an in-house advertising agency. What are some of the reasons why companies might change from using an in-house agency and hire an outside agency?
5. Discuss some of the reasons why traditional advertising agencies have been developing more integrated marketing communication capabilities. What changes might traditional agencies have to make to improve their IMC capabilities?
direct-marketing agencies, sales promotion agencies, public relations firms, and interactive agencies. A marketer must decide whether to use a different specialist for each promotional function or have all of its integrated marketing communications done by an advertising agency that offers all of these services under one roof.
Recent studies have found that most marketers believe it is their responsibility, not the ad agency's, to set strategy for and coordinate IMC campaigns. The lack of a broad perspective and specialized skills in nonadvertising areas is seen as the major barrier to agencies' increased involvement in integrated marketing communications.
percentage charges,88 financial audit, 88 qualitative audit, 88 direct-response agency, 94
sales promotion agency, 94
public relations firm, 95 interactive agencies, 95
6. Why might a company choose to use a creative boutique rather than a larger, full-service agency? Find an example of a company that uses a creative boutique and discuss why the decision to use a smaller agency may be appropriate for this firm.
7. Discuss the various methods by which advertising agencies are compensated. What factors will determine the type of compensation arrangement a company uses with an agency?
8. Why are many companies moving away from the traditional commission system and using clients, 69
advertising agency, 69 media organizations,70 specialized marketing communications services, 70 collateral services, 70 advertising manager, 71 centralized system, 71 decentralized system, 72 brand manager, 72
category management system, 73 in-house agency, 75 billings, 77 superagencies, 77 full-service agency, 79 account executive, 79 copywriters, 82 departmental system, 82 group system,82 creative boutique, 83
media buying services, 83
commission system,85 negotiated commission, 86
fixed-fee method, 87 fee-commission combination,87 cost-plus system,87 incentive-based system, 87
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