Question

As more companies adopt the integrated marketing communications approach to their advertising and promotions:

A) they are increasingly concentrating on a mass media strategy as it is relatively cheaper.
B) they are reducing their reliance on mass media advertising that is leading to changes in the way they compensate their agencies.
C) they are likely to move totally to cost-plus compensation systems.
D) incentive systems are becoming less important in compensating agencies.
E) fee agreements and cost-plus systems are generally being avoided in favor of the traditional compensation method

Answer 1

As more companies adopt the integrated marketing communications (IMC) approach to advertising and promotions, they are reducing their reliance on mass media advertising and embracing a mix of different communication tools to deliver a consistent and effective message to target audiences. The correct option is B) they are reducing their reliance on mass media advertising which is leading to changes in the way they compensate their agencies.

Step-by-step explanation:

The integrated marketing communications (IMC) approach to advertising and promotions involves the coordination and integration of various marketing communication tools and channels to deliver a consistent and effective message to target audiences.

As more companies adopt this approach, they are reducing their reliance on mass media advertising and instead embracing a mix of different communication tools, such as social media, digital marketing, public relations, and direct marketing.

They are also leveraging digital marketing techniques, such as search engine optimization and content marketing, to improve their online visibility and reach a wider audience.

This shift in advertising strategy is not motivated solely by cost considerations but rather by the changing media landscape and evolving consumer behavior.

With the rise of ad-blocking technologies, DVRs, and streaming services, traditional mass media advertising is becoming less effective in reaching and engaging consumers.

The correct option is B) they are reducing their reliance on mass media advertising which is leading to changes in the way they compensate their agencies.