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Author Question: Which criterion cannot be measured objectively but involves a subjective assessment of whether a ... (Read 58 times)

anjilletteb

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on: Jun 28, 2018
Which criterion cannot be measured objectively but involves a subjective assessment of whether a promotion has enhanced a brand's image or possibly detracted from it?
 a. expense
  b. efficiency
  c. execution ease
  d. equity enhancement
  e. effectiveness enhancement

Question 2

Describe the various forms of advertising agency compensation.


zenzy

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Reply #1 on: Jun 28, 2018
Answer to Question 1

d

Answer to Question 2

There are three basic methods by which clients compensate agencies for services rendered:
1 . Commissions from media. Historically, U.S. advertising agencies charged a standard commission of 15 percent of the gross amount of billings. The 15 percent compensation system has been a matter of some controversy, and today only a fraction of advertisers still pay a 15 percent commission. Rather, a reduced commission system has experienced increased usage.
2 . Labor-based fee system. With this method, agencies monitor their time and bill clients an hourly fee based on time commitment.
3 . Outcome- or performance-based programs. These represent the most common approach to agency compensation and are based on covering costs and incentive payments that are tied to a brand's performance goals. This system encourages, indeed demands, agencies to use whatever IMC programs are needed to build brand sales.


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