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Which of the following statements explain why an organization would want to use an external advertising agency?

A. It reduces advertising and promotional costs for the client.
B. It enables the client to gain more control of the promotional activities.
C. It allows more access to the top management of the client firm.
D. It helps provide a consistent and integrated global brand image.
E. It provides the client with the services of highly skilled individuals.

1 Answer

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Final answer:

An external advertising agency can provide a consistent global brand image and expertise through highly skilled individuals. They may not reduce costs but can offer greater efficiency, though they don't necessarily enable more client control or access to management.

Step-by-step explanation:

An organization may want to use an external advertising agency for a multitude of reasons. One of the main advantages is that it helps provide a consistent and integrated global brand image, which is particularly important for firms looking to maintain a uniform presence across diverse markets. Furthermore, external agencies often employ highly skilled individuals who specialize in various aspects of advertising and marketing, thus bringing expertise that the client may not have in-house. Contrary to enabling more control of promotional activities for the client, using an external agency could potentially result in less direct control, yet this is balanced by the agency's proficiency in crafting and executing effective advertising strategies.

While hiring an advertising agency might not always reduce advertising and promotional costs, the investment could lead to greater efficiency and a higher return on advertising expenditure due to the agency's strategic planning and buying power. Lastly, while unlikely to facilitate more access to top management of the client firm, partnering with an external firm does allow the client's management to focus on core business activities, trusting in the agency to handle the complex tasks related to advertising.

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