Question 1

In advertising, a retainer is:

Accepted Answer

A)   the same as a straight fee.
B)   a commission that is paid on a monthly rate.
C)   a form of markup paid by nonprofit organizations.
D)   the cost for reserving TV and radio time.
E)   a commission paid to media-buying services.F) C) and E)
G) D) and E)

Question 2

Tex-Oil runs commercials asking consumers how they would improve and preserve the natural environment. After each individual's responses, an announcer explains how Tex-Oil protects the environment. These commercials are examples of _____ advertising.

Accepted Answer

A)   organizational
B)   generic
C)   product
D)   institutional
E)   agencyF) B) and C)
G) C) and D)

Question 3

One of the advantages that a company has when it uses a decentralized advertising department is:

Accepted Answer

A)   a highly compact structure.
B)   consolidated expenditures.
C)   exceptional communication.
D)   increased divisional flexibility.
E)   a narrower span of management.F) B) and D)
G) A) and B)

Question 4

Explain how the account planner acts as a "surrogate for the consumer."

Accepted Answer

The account planner represents the consu...

Question 5

Pathmark Stores Inc. operates 142 supermarkets in the New York-New Jersey and Philadelphia metropolitan areas. Pathmark Stores only advertises in those states where it has stores. The form of advertising that best describes Pathmark's approach to advertising is:

Accepted Answer

A)   institutional.
B)   adjacency.
C)   regional.
D)   national.
E)   local.F) C) and D)
G) B) and D)

Question 6

What is the most likely advantage of using an independent advertising agency instead of an in-house agency?

Accepted Answer

A)   Reduced overhead
B)   Organizational vision
C)   Distribution control
D)   Greater experience
E)   Lower commissionsF) A) and B)
G) A) and C)

Question 7

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Accepted Answer

A)   entrepreneurial
B)   institutional
C)   organizational
D)   full-service
E)   multi-taskingF) A) and B)
G) C) and D)

Question 8

One of the primary purposes of co-op advertising is to build the manufacturer's brand image.

Accepted Answer

A) True 
 B)False

Question 9

Most agencies prefer giving a speculative presentation to potential clients than highlighting past accomplishments because speculative presentations are quick and inexpensive.

Accepted Answer

A) True 
 B)False

Question 10

International media that serve several countries are limited to newspapers and magazines.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is most likely true about account planning?

Accepted Answer

A)   It is a method used to benchmark competitors' promotions.
B)   It bridges the gap between management and creatives.
C)   It rarely involves conducting consumer research.
D)   It restructures an advertiser to improve its image.
E)   It is a service provided by B2B creative boutiques.F) A) and B)
G) B) and E)

Question 12

What is integrated marketing communications (IMC)?

Accepted Answer

The process of building and reinforcing ...

Question 13

If the Tomlinson Inc., an ad agency, were to buy an ad in Western Horseman magazine for the manufacturer of Reins saddles, the ad would cost $3,000. How much money would the advertising agency bill the saddle manufacturer?

Accepted Answer

A)   $2,250
B)   $2,850
C)   $3,000
D)   $3,150
E)   $3,750F) C) and D)
G) A) and C)

Question 14

Some of the nonadvertising services performed by full-service agencies are performing research, selecting media, designing packages and producing sales promotions.

Accepted Answer

A) True 
 B)False

Question 15

Interactive agencies:

Accepted Answer

A)   use customer relationship marketing to work with customers.
B)   create ads for nontraditional media like shopping carts.
C)   design Web pages and ads for the Internet.
D)   purchase media time and space in bulk.
E)   facilitate refunds and rebate offers.F) A) and B)
G) C) and D)

Question 16

An agency that earns a _____ charges a basic monthly fee for all of its services to the client and retains any media commissions earned.

Accepted Answer

A)   retainer
B)   salary-plus-commission
C)   media markup
D)   fee-commission combination
E)   negotiated feeF) None of the above
G) B) and D)

Question 17

Dissatisfaction with agency conduct is the most commonly cited reason for agency switches.

Accepted Answer

A) True 
 B)False

Question 18

What is the function of creative boutiques?

Accepted Answer

They work for advertisers and ...

Question 19

An advertising agency that earns more money if an ad campaign attains specific, agreed-upon goals is most likely being compensated through an incentive system.

Accepted Answer

A) True 
 B)False

Question 20

DDB Needham, one of the world's largest ad agencies, formed a company with director Spike Lee called Spike DDB. The purpose of the new company was to develop ways to tap into urban trends and to increase minorities' use of its client's brands. The company relied on the creative abilities of director Spike Lee to produce fresh, distinctive advertising messages. Spike DDB would be categorized as a(n) :

Accepted Answer

A)   promotional facilitator.
B)   interactive agency.
C)   entrepreneurial agency.
D)   creative boutique.
E)   IMC agency.F) D) and E)
G) A) and B)

Exam 3: The Business of Advertising

If the Tomlinson Inc., an ad agency, were to buy an ad in Western Horseman magazine for the manufacturer of Reins saddles, the ad would cost $3,000. How much money would the advertising agency bill the saddle manufacturer?

Correct Answer
verified

What is the function of creative boutiques?

Correct Answer
verified
They work for advertisers and ...
View Answer

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Correct Answer
verified

An agency that earns a _____ charges a basic monthly fee for all of its services to the client and retains any media commissions earned.

Correct Answer
verified

What is integrated marketing communications (IMC)?

Correct Answer
verified
The process of building and reinforcing ...
View Answer

An advertising agency that earns more money if an ad campaign attains specific, agreed-upon goals is most likely being compensated through an incentive system.

Correct Answer
verified

Pathmark Stores Inc. operates 142 supermarkets in the New York-New Jersey and Philadelphia metropolitan areas. Pathmark Stores only advertises in those states where it has stores. The form of advertising that best describes Pathmark's approach to advertising is:

Correct Answer
verified

Tex-Oil runs commercials asking consumers how they would improve and preserve the natural environment. After each individual's responses, an announcer explains how Tex-Oil protects the environment. These commercials are examples of _____ advertising.

Correct Answer
verified

Dissatisfaction with agency conduct is the most commonly cited reason for agency switches.

Correct Answer
verified

Interactive agencies:

Correct Answer
verified

Most agencies prefer giving a speculative presentation to potential clients than highlighting past accomplishments because speculative presentations are quick and inexpensive.

Correct Answer
verified

In advertising, a retainer is:

Correct Answer
verified

International media that serve several countries are limited to newspapers and magazines.

Correct Answer
verified

Correct Answer
verified

Which of the following statements is most likely true about account planning?

Correct Answer
verified

Explain how the account planner acts as a "surrogate for the consumer."

Correct Answer
verified
The account planner represents the consu...
View Answer

One of the primary purposes of co-op advertising is to build the manufacturer's brand image.

Correct Answer
verified

Some of the nonadvertising services performed by full-service agencies are performing research, selecting media, designing packages and producing sales promotions.

Correct Answer
verified

What is the most likely advantage of using an independent advertising agency instead of an in-house agency?

Correct Answer
verified

One of the advantages that a company has when it uses a decentralized advertising department is:

Correct Answer
verified

Exam 3: The Business of Advertising

If the Tomlinson Inc., an ad agency, were to buy an ad in Western Horseman magazine for the manufacturer of Reins saddles, the ad would cost $3,000. How much money would the advertising agency bill the saddle manufacturer?

Correct AnswerverifiedShow Answer

What is the function of creative boutiques?

Correct AnswerverifiedThey work for advertisers and ...View AnswerShow Answer

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

Correct AnswerverifiedShow Answer

An agency that earns a _____ charges a basic monthly fee for all of its services to the client and retains any media commissions earned.

Correct AnswerverifiedShow Answer

What is integrated marketing communications (IMC)?

Correct AnswerverifiedThe process of building and reinforcing ...View AnswerShow Answer

An advertising agency that earns more money if an ad campaign attains specific, agreed-upon goals is most likely being compensated through an incentive system.

Correct AnswerverifiedShow Answer

Pathmark Stores Inc. operates 142 supermarkets in the New York-New Jersey and Philadelphia metropolitan areas. Pathmark Stores only advertises in those states where it has stores. The form of advertising that best describes Pathmark's approach to advertising is:

Correct AnswerverifiedShow Answer

Tex-Oil runs commercials asking consumers how they would improve and preserve the natural environment. After each individual's responses, an announcer explains how Tex-Oil protects the environment. These commercials are examples of _____ advertising.

Correct AnswerverifiedShow Answer

Dissatisfaction with agency conduct is the most commonly cited reason for agency switches.

Correct AnswerverifiedShow Answer

Interactive agencies:

Correct AnswerverifiedShow Answer

Most agencies prefer giving a speculative presentation to potential clients than highlighting past accomplishments because speculative presentations are quick and inexpensive.

Correct AnswerverifiedShow Answer

In advertising, a retainer is:

Correct AnswerverifiedShow Answer

International media that serve several countries are limited to newspapers and magazines.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is most likely true about account planning?

Correct AnswerverifiedShow Answer

Explain how the account planner acts as a "surrogate for the consumer."

Correct AnswerverifiedThe account planner represents the consu...View AnswerShow Answer

One of the primary purposes of co-op advertising is to build the manufacturer's brand image.

Correct AnswerverifiedShow Answer

Some of the nonadvertising services performed by full-service agencies are performing research, selecting media, designing packages and producing sales promotions.

Correct AnswerverifiedShow Answer

What is the most likely advantage of using an independent advertising agency instead of an in-house agency?

Correct AnswerverifiedShow Answer

One of the advantages that a company has when it uses a decentralized advertising department is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
They work for advertisers and ...
View Answer

Correct Answer
verified

Correct Answer
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The process of building and reinforcing ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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The account planner represents the consu...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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