Chapter 3 Flashcards
(12 cards)
What are specialized marketing communications services?
Direct-marketing agencies, sales promotion agencies, interactive agencies, and PR firms
What is a full-service agency?
Offers its clients a full range of marketing, communications and promotion services
What does an account executive do?
Understand the advertisers marketing and promotions needs and interpreting them to agency personnel
What is a creative boutique?
An agency that provides only creative services
What are the 3 ways that agencies are typically compensated?
- Commissions
- Fee Arrangement
- Percentage Charges
What is the fixed-fee method?
A basic monthly fee an agency charges for all of its services
What is a fee-commission combination?
Media commissions received by the agency are credited against the fee
What is a cost-plus system?
The client agrees to pay the agency a fee based on the costs of its work plus some agreed-on profit margin
What is an incentive-based system?
The agency’s ultimate compensation level will depend on how well it meets predetermined performance goals
Why do agencies lose clients?
- Poor performance
- Poor communication
- Unrealistic demands by client
- Personality conflicts
- Personnel changes
- Conflicts of interest
What does a direct-response agency do?
Provides services including database management, direct mail, research
What is the usual commission for an ad agency?
15 per cent
