Van Poolen and Associates has been a successful mid-sized, full-service advertising agency for more than two decades. In an attempt to serve its clients more efficiently in a competitive marketplace, the agency has changed its compensation package to include payment based on results. If the client agrees, what results must Van Poolen and Associates not agree to?
a. Increasing brand awareness
b. Generating sales increases versus previous year
c. Changing target consumer attitude toward brand
d. Flex-pay following in-market performance measures
Question 2Recently, advertising agencies have developed compensation programs that are based upon achievement of specific objectives for the client. These programs are known as ____ compensation.
a. fee-based c. commission
b. pay-for-results d. markup
Question 3Dooley, Fishback and Waller advertising agency sets an hourly rate for its services. The rate is based on the average salary of all the members of a particular department. This is an example of
a. the fee system. c. the markup charge system.
b. the fixed-fee system. d. the commission system.
Question 4When an ad agency uses a compensation system much like that used by consultants or attorneys to bill clients, it is using
a. a commission system. c. a fee system.
b. markup charges. d. a media commission system.
Question 5One method of agency compensation has been accused of encouraging advertising agencies to recommend the most costly media vehicles available. This method is
a. the fee system. c. the retainer system.
b. the markup charge system. d. the commission system.
Question 6____ is responsible for coming up with the concepts that express the benefits of a brand to a target audience.
a. The research department c. Account services
b. Creative and production services d. The direct-marketing department
Question 7The person in an advertising agency who will work with the client in translating cultural and consumer values into advertising messages is the
a. account executive. c. media services director.
b. director of production. d. administrative executive.
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