Question 1

The _____ department coordinates all phases of production to ensure the proper progression of the advertisement.

Accepted Answer

A)  research
B)  production
C)  art
D)  traffic
E)  media

Question 2

Which of the following statements about the U.S.advertising agency business is true?

Accepted Answer

A)  Most U.S.ad agencies are large businesses with billings exceeding $100 million per year.
B)  Most U.S.ad agencies are individually owned small businesses employing fewer than five people.
C)  Nearly all of the U.S.domestic billings are handled by the top 100 agencies.
D)  Most of the top U.S.ad agencies are headquartered in Chicago.
E)  There are approximately 1,000 agencies listed in the Standard Directory of Advertising Agencies.

Question 3

A major argument put forth by defenders of the commission system is that a commission:

Accepted Answer

A)  keeps the agencies from placing advertising in expensive media.
B)  ties agency compensation to the inflation in media costs.
C)  is very complex to administer.
D)  is simple and keeps the emphasis in agency compensation on non-price factors.
E)  encourages agencies to use noncommissionable media such as direct mail.

Question 4

Which of the following is the amount of client money that agencies spend on media purchases and other equivalent activities?

Accepted Answer

A)  Billings
B)  Media commissions
C)  Retainers
D)  Activity fees
E)  Traffic compensation

Question 5

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

Accepted Answer

A)  It saves money for the client.
B)  It helps the client 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 brand image worldwide and reduces the number of marketing partners for the client firm.
E)  It provides the client with the services of highly skilled individuals.

Question 6

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. C

Question 7

Which type of ad agency is most likely to assist the client in areas such as marketing strategy and research,campaign planning and execution,and media planning and buying?

Accepted Answer

A)  A creative boutique
B)  A full-service agency
C)  A media buying service
D)  A collateral agency
E)  A full time agency

Question 8

_____ are the major participants in the integrated marketing communications process.

Accepted Answer

A)  Advertising agencies and new product development firms
B)  Advertisers and media organizations
C)  Media organizations and marketing information systems
D)  Travel agencies and public relations firms
E)  New-product development firms and public relation firms

Question 9

Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

Accepted Answer

A)  Media department
B)  Art department
C)  Copywriters
D)  Traffic department
E)  Production department

Question 10

The traditional method of compensating ad agencies is through:

Accepted Answer

A)  a commission system.
B)  hourly billings.
C)  a fee system.
D)  a straight salary method.
E)  an objective-and-task compensation system.

Question 11

Which type of specialized service would have most likely coordinated a program to allow consumers to mail in UPC codes from three Reynolds products to receive a free Blockbuster movie rental?

Accepted Answer

A)  Sales promotion agency
B)  Public relations firm
C)  Creative boutique
D)  Interactive agency
E)  Direct-response agency A

Question 12

Jackson & Morris is an advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts.The agency is using a _____ organizational system.

Accepted Answer

A)  departmental
B)  group
C)  matrix
D)  boutique
E)  dedicated B

Question 13

Company A used to rely on outside advertising agencies for its advertising needs but since it is a global company,it is now worried that using external agencies may lead to non-consistency of its brand image.The years on experience with outside agencies has made it realize that it results in wastage of both time and money.It also wants to maintain tighter control over its advertising and promotion activities.Which of the following advertising agencies should it adopt?

Accepted Answer

A)  Collateral service agency
B)  Full service agency
C)  In-house agency
D)  Democratic agency
E)  Creative boutique

Question 14

Company A is a major participant in the advertising and promotion process.It attracts various others companies who buy space and time with them which they can provide at discounted rates.Company A helps these companies reach the target market effectively with the message.Company A is a(n) :

Accepted Answer

A)  advertiser.
B)  advertising agency.
C)  media organization.
D)  full service agency.
E)  consultancy.

Question 15

Direct-marketing agencies,sales promotion agencies and public relations firms are examples of:

Accepted Answer

A)  different types of advertising agencies.
B)  media organizations.
C)  collateral services.
D)  specialized marketing communication services.
E)  in-house agencies.

Question 16

Which of the following is true about the functions of the advertising manager in a centralized system?

Accepted Answer

A)  Advertising manager is responsible for all sales and sales management activities.
B)  Advertising manager,usually,takes the final decision about allocating funds towards the promotional budget.
C)  The advertising manager may not review and approve the promotional plans which are made by the agency.
D)  The specific role of the advertising manager depends on the size of the firm.
E)  Advertising manager deals only with the advertising department in the organization.

Question 17

Superagencies were formed:

Accepted Answer

A)  because advertisers were disenchanted with large agencies.
B)  because advertisers wanted agencies to be more flexible and responsive than traditional agencies.
C)  to save money for clients.
D)  so agencies could provide their clients with integrated marketing communications services worldwide.
E)  to lessen the need for competitive pricing.

Question 18

Which of the following describes a limitation associated with the decentralized organizational structure for advertising?

Accepted Answer

A)  Brand managers are often overqualified and want too much input into advertising.
B)  Brand managers are typically highly experienced in advertising and understand exactly what advertising can do for a brand.
C)  Brand managers do not devote enough attention to short-term planning and administrative tasks.
D)  Brand managers often end up competing for management attention,marketing budgets,and other resources.
E)  With their reliance on intuition,brand managers often jeopardize the creative activities of the advertising agency.

Question 19

A major reason why some companies choose to use an in-house agency is to:

Accepted Answer

A)  maintain creative freshness.
B)  reduce advertising and promotions costs.
C)  compete with external advertising agencies.
D)  win advertising awards that will enhance the image of their brands.
E)  disseminate control to outside agencies.

Question 20

Negotiated commission rates for advertising agencies:

Accepted Answer

A)  are becoming more commonplace.
B)  are becoming less common.
C)  set a 15 percent minimum commission rate for all agency work.
D)  are rarely used by consumer-products advertisers.
E)  are designed primarily to benefit agencies.

Exam 1: Organizing for Advertising and Promotion: the Role of AD Agencies and Other Marketing Communication Organizations

The _____ department coordinates all phases of production to ensure the proper progression of the advertisement.

Correct Answer
verified

Which of the following statements about the U.S.advertising agency business is true?

Correct Answer
verified

A major argument put forth by defenders of the commission system is that a commission:

Correct Answer
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Which of the following is the amount of client money that agencies spend on media purchases and other equivalent activities?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
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C

Which type of ad agency is most likely to assist the client in areas such as marketing strategy and research,campaign planning and execution,and media planning and buying?

Correct Answer
verified

_____ are the major participants in the integrated marketing communications process.

Correct Answer
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Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

Correct Answer
verified

The traditional method of compensating ad agencies is through:

Correct Answer
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Which type of specialized service would have most likely coordinated a program to allow consumers to mail in UPC codes from three Reynolds products to receive a free Blockbuster movie rental?

Correct Answer
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A

Jackson & Morris is an advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts.The agency is using a _____ organizational system.

Correct Answer
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B

Correct Answer
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Company A is a major participant in the advertising and promotion process.It attracts various others companies who buy space and time with them which they can provide at discounted rates.Company A helps these companies reach the target market effectively with the message.Company A is a(n) :

Correct Answer
verified

Direct-marketing agencies,sales promotion agencies and public relations firms are examples of:

Correct Answer
verified

Which of the following is true about the functions of the advertising manager in a centralized system?

Correct Answer
verified

Superagencies were formed:

Correct Answer
verified

Which of the following describes a limitation associated with the decentralized organizational structure for advertising?

Correct Answer
verified

A major reason why some companies choose to use an in-house agency is to:

Correct Answer
verified

Negotiated commission rates for advertising agencies:

Correct Answer
verified

Exam 1: Organizing for Advertising and Promotion: the Role of AD Agencies and Other Marketing Communication Organizations

The _____ department coordinates all phases of production to ensure the proper progression of the advertisement.

Correct AnswerverifiedShow Answer

Which of the following statements about the U.S.advertising agency business is true?

Correct AnswerverifiedShow Answer

A major argument put forth by defenders of the commission system is that a commission:

Correct AnswerverifiedShow Answer

Which of the following is the amount of client money that agencies spend on media purchases and other equivalent activities?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

Which type of ad agency is most likely to assist the client in areas such as marketing strategy and research,campaign planning and execution,and media planning and buying?

Correct AnswerverifiedShow Answer

_____ are the major participants in the integrated marketing communications process.

Correct AnswerverifiedShow Answer

Which department within an advertising agency supervises the casting of people to appear in the ad and the setting for the scenes?

Correct AnswerverifiedShow Answer

The traditional method of compensating ad agencies is through:

Correct AnswerverifiedShow Answer

Which type of specialized service would have most likely coordinated a program to allow consumers to mail in UPC codes from three Reynolds products to receive a free Blockbuster movie rental?

Correct AnswerverifiedA

Jackson & Morris is an advertising agency that handles each of its clients by assigning individuals from various departments to work together as a team on their accounts.The agency is using a _____ organizational system.

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

Company A is a major participant in the advertising and promotion process.It attracts various others companies who buy space and time with them which they can provide at discounted rates.Company A helps these companies reach the target market effectively with the message.Company A is a(n) :

Correct AnswerverifiedShow Answer

Direct-marketing agencies,sales promotion agencies and public relations firms are examples of:

Correct AnswerverifiedShow Answer

Which of the following is true about the functions of the advertising manager in a centralized system?

Correct AnswerverifiedShow Answer

Superagencies were formed:

Correct AnswerverifiedShow Answer

Which of the following describes a limitation associated with the decentralized organizational structure for advertising?

Correct AnswerverifiedShow Answer

A major reason why some companies choose to use an in-house agency is to:

Correct AnswerverifiedShow Answer

Negotiated commission rates for advertising agencies:

Correct AnswerverifiedShow Answer

Correct Answer
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C

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A

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B

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