Question 1

Which of the following statements explains why an organization would want to use an outside advertising agency?

Accepted Answer

A)  An outside advertising agency saves money for the client.
B)  An outside advertising agency helps the client gain more prestige and a better image.
C)  An outside advertising agency has media experts.
D)  An outside advertising agency provides research expertise.
E)  An outside advertising agency provides the client with the services of highly skilled individuals who are experts in a number of areas including creative,media,and research.

Question 2

Which of the following statements about changes in the way advertising agencies are being compensated is true?

Accepted Answer

A)  Most clients do not pay full commissions to their agencies because they prefer to use some type of fee or incentive-based system.
B)  With the move toward integrated marketing services,it is likely that there will be a return to the commission system of compensation.
C)  From the viewpoints of both the client and the agency,the traditional commission system is much superior to negotiated commissions.
D)  Since most clients want their agencies to be in total charge of the integrated marketing communications process,they are willing to compensate them based on media commissions.
E)  All of the above statements about changes in the way ad agencies are being compensated are true.

Question 3

If a client thinks they need to use several ad agencies in order to achieve multiple advertising objectives,they may leave their currency due to:

Accepted Answer

A)  conflict of interests
B)  conflicting compensation philosophies
C)  personality conflicts
D)  lack of integrated marketing capabilities
E)  disagreement over creative strategies

Question 4

Creative boutiques are agencies that:

Accepted Answer

A)  limit their client service to creative planning and execution
B)  have resulted from advertisers wanting to save money in buying media space
C)  can perform the same functions as full-service agencies for their clients,but charge more
D)  are used only when advertising is not important to the marketing success of the company that hired them
E)  are accurately described by all of the above

Question 5

_____ are agencies that specialize in offering services,such as database management,and the ability to create,produce,and disseminate direct mail and other types of communications that go straight to target customers.

Accepted Answer

A)  Full function ad agencies
B)  Sales promotion agencies
C)  Direct-response agencies
D)  Public relations firms
E)  Creative boutiques

Question 6

The role of the advertising department in a company using a decentralized product management system is to:

Accepted Answer

A)  plan and coordinate the advertising campaign
B)  provide advertising and promotion related support for the brand managers
C)  conduct marketing research
D)  develop sales programs
E)  do none of the above

Question 7

Which of the following statements about the role of ad agency media departments is true?

Accepted Answer

A)  Many large advertisers use media departments in a variety of different agencies to purchase media time and space.
B)  A media department's ability to negotiate prices and make effective use of the vast array of media options has become very important.
C)  The media department of an ad agency reviews information on demographics,magazine and newspaper readership,radio listenership,and consumers' television viewing habits.
D)  Many large advertisers are consolidating their media buying with one or a few agencies' media departments to save money and improve media efficiency.
E)  All of the above statements about the role of ad agency media departments are true.

Question 8

The _____ is an outside firm that specializes in the creation,production and/or placement of the communications message and that may provide other marketing and promotions related services.

Accepted Answer

A)  media organization
B)  sales promotion firm
C)  research organization
D)  advertising agency
E)  creative boutique

Question 9

The ______ primary function is to provide information or entertainment to an audience.

Accepted Answer

A)  client's
B)  advertising agency's
C)  media's
D)  customer's
E)  advertiser's

Question 10

A typical direct-response agency is divided into three main departments.They are:

Accepted Answer

A)  customer relations,production,and traffic
B)  media,customer relations,and sales
C)  sales,account management,and production
D)  account management,creative,and media
E)  creative,traffic,and financial

Question 11

Which of the following statements describes an argument used by either the opponents or the proponents of the use of a single agency to provide all integrated marketing communication services for a client?

Accepted Answer

A)  Proponents of this approach argue that using one agency allows for greater control of and more synergy among each of the communication elements.
B)  Opponents of this approach argue it is an attempt by ad agencies to retain business that might otherwise be lost to other communication service companies.
C)  Opponents argue that the approach does not work well due to internal conflicts within the various departments of these agencies.
D)  Proponents of the system argue the one-stop shop makes it more convenient for the client to coordinate all of its marketing efforts.
E)  All of the above statements reflect arguments for and against using a single agency to provide all integrated marketing communication services for clients.

Question 12

The function of gathering,analyzing and interpreting information that will be useful in developing advertising is the responsibility of the agency's _____ department.

Accepted Answer

A)  production
B)  traffic
C)  media
D)  account management
E)  research

Question 13

The communications link between the ad agency and its clients is:

Accepted Answer

A)  account services
B)  marketing services
C)  the media
D)  creative services
E)  the sales promotions department

Question 14

National Fruit Company makes White House brand apple juice. Market research determined that the company needed to mold its bottle so as to make it easier to grasp. Its market research would have been conducted by a(n)  _____, and its packaging changes would have been done by a(n)  _____.

Accepted Answer

A)  specialized service;interactive agency
B)  interactive agency;collateral service
C)  collateral service;specialized service
D)  interactive service;creative boutique
E)  collateral service;collateral service

Question 15

What form of compensation is used to pay the advertising agency when the client's advertising program does not involve a large amount of media billings?

Accepted Answer

A)  a 15 percent commission
B)  a negotiated fee
C)  a rebate from the media
D)  a share of the profits
E)  a 17.65 percent mark up on costs

Question 16

Opponents of the agency commission system argue this system is not effective because:

Accepted Answer

A)  a commission keeps the emphasis on creative skills not the bottom-line
B)  a commission is simple to administer
C)  the agency time spent on an account may not be proportional to the compensation received for it
D)  a commission encourages agencies to limit their client's advertising expenditures
E)  a commission does not tie agency compensation to media costs

Question 17

The _____ is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards.

Accepted Answer

A)  account executive
B)  copywriter
C)  product management department
D)  research department
E)  art department

Question 18

Which of the following would be a valid reason for a company to switch advertising agencies?

Accepted Answer

A)  dissatisfaction over the quality of the advertising produced by the agency
B)  conflicts over compensation policies
C)  a change in the company's marketing strategy
D)  a stagnation or decline in sales of the product
E)  all of the above

Question 19

_____ structure.

Accepted Answer

A)  group system
B)  departmental system
C)  creative boutique
D)  in-house
E)  decentralized

Question 20

To implement BMW's new branding campaign, the decision was made to use short digital films and to create a Web site where consumers could view the films. The video production house that made and edited the films is an example of a(n) :

Accepted Answer

A)  collateral service
B)  support agency
C)  interactive agency
D)  sales promotion agency
E)  creative boutique

Exam 3: Organizing for Advertising and Promotion: The Role of Ad Agencies and Other Marketing Communication Organizations

The _____ is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards.

Correct AnswerverifiedShow Answer

The _____ is an outside firm that specializes in the creation,production and/or placement of the communications message and that may provide other marketing and promotions related services.

Correct AnswerverifiedShow Answer

National Fruit Company makes White House brand apple juice. Market research determined that the company needed to mold its bottle so as to make it easier to grasp. Its market research would have been conducted by a(n) _____, and its packaging changes would have been done by a(n) _____.

Correct AnswerverifiedShow Answer

What form of compensation is used to pay the advertising agency when the client's advertising program does not involve a large amount of media billings?

Correct AnswerverifiedShow Answer

Which of the following statements about changes in the way advertising agencies are being compensated is true?

Correct AnswerverifiedShow Answer

Which of the following would be a valid reason for a company to switch advertising agencies?

Correct AnswerverifiedShow Answer

Which of the following statements describes an argument used by either the opponents or the proponents of the use of a single agency to provide all integrated marketing communication services for a client?

Correct AnswerverifiedShow Answer

Opponents of the agency commission system argue this system is not effective because:

Correct AnswerverifiedShow Answer

Creative boutiques are agencies that:

Correct AnswerverifiedShow Answer

The ______ primary function is to provide information or entertainment to an audience.

Correct AnswerverifiedShow Answer

If a client thinks they need to use several ad agencies in order to achieve multiple advertising objectives,they may leave their currency due to:

Correct AnswerverifiedShow Answer

Which of the following statements about the role of ad agency media departments is true?

Correct AnswerverifiedShow Answer

_____ structure.

Correct AnswerverifiedShow Answer

The communications link between the ad agency and its clients is:

Correct AnswerverifiedShow Answer

To implement BMW's new branding campaign, the decision was made to use short digital films and to create a Web site where consumers could view the films. The video production house that made and edited the films is an example of a(n) :

Correct AnswerverifiedShow Answer

Which of the following statements explains why an organization would want to use an outside advertising agency?

Correct AnswerverifiedShow Answer

The role of the advertising department in a company using a decentralized product management system is to:

Correct AnswerverifiedShow Answer

The function of gathering,analyzing and interpreting information that will be useful in developing advertising is the responsibility of the agency's _____ department.

Correct AnswerverifiedShow Answer

_____ are agencies that specialize in offering services,such as database management,and the ability to create,produce,and disseminate direct mail and other types of communications that go straight to target customers.

Correct AnswerverifiedShow Answer

A typical direct-response agency is divided into three main departments.They are:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

National Fruit Company makes White House brand apple juice. Market research determined that the company needed to mold its bottle so as to make it easier to grasp. Its market research would have been conducted by a(n) _, and its packaging changes would have been done by a(n) _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified