Question 1

A________ is an agency organizational structure in which each functional area is set up as a separate department. This structure is called on as needed to perform its specialty and serve all of the agency's clients.

Accepted Answer

A)   group system
B)   departmental system
C)   matrix system
D)   creative boutique

Question 2

Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers, engravers, photographers, or other vendors to turn a layout into a finished product?

Accepted Answer

A)   traffic department
B)   production department
C)   media department
D)   art department

Question 3

Agencies that are reluctant to let clients see their internal cost figures are less likely to accept a(n) :

Accepted Answer

A)   cost-plus agreement
B)   fixed-fee arrangement
C)   commission-based arrangement
D)   incentive-based compensation agreement

Question 4

Joe Fresh moved its creativity in-house from an agency in order to:

Accepted Answer

A)   provide full service at a lower cost
B)   better understand how advertising works
C)   employ creatives from Target, who might have expertise in the U.S. market
D)   encourage its staff to think about the brand

Question 5

A(n)  ________ is the type of firm an organization would hire to develop and implement programs to manage the organization's publicity, image, and affairs with consumers and other relevant publics.

Accepted Answer

A)   advertising agency
B)   direct-response agency
C)   media mix organization
D)   public relations firm

Question 6

The brand manager for Carnation Evaporated Milk wishes to run a holiday cookie contest to find consumers' best recipes. The creator of the best recipe will win a trip to
Paris, France. Most likely, Carnation will hire a(n)  campaign.____________ to plan and execute the

Accepted Answer

A)   sales promotion agency
B)   contest house
C)   public relations firm
D)   advertising agency

Question 7

Which of the following best describes an Agency-of-Record (AOR) ?

Accepted Answer

A)   the previous agency who did work for a particular client
B)   the primary agency whose foremost interest is in building the client's brand
C)   an agency that performs work on a project-by-project basis
D)   an agency that is subcontracted by the client directly for a particular assignment

Question 8

An agency books television media space at a cost of $1,000,000. If cash discounts do not apply, what price does the agency pay to the media company?

Accepted Answer

A)   $1,150,000
B)   $985,000
C)   $850,000
D)   $1,000,000 and the client pays the agency commission

Question 9

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

Accepted Answer

A)   creative, media, and production
B)   account management, media, and research
C)   account management, creative, and media
D)   creative, media, and research

Question 10

Which of the following would NOT be a valid reason for switching advertising agencies?

Accepted Answer

A)   a stagnation or decline in sales of the product
B)   conflicts over compensation policies
C)   dissatisfaction over the quality of the advertising produced by the agency
D)   a change in research methodology

Question 11

Independent companies that specialize in the purchase of radio and television time are known as:

Accepted Answer

A)   full-service agencies
B)   media measurement bureaus
C)   mid-sized agencies
D)   media buying services

Question 12

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

Accepted Answer

A)   An outside advertising agency has more knowledge of the brand's identity and its previous promotional activities.
B)   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.
C)   An outside advertising agency saves money for the client.
D)   An outside advertising agency helps the client gain more prestige and a better image.

Question 13

An ad agency that offers its clients a complete range of marketing, communication, and promotion services is known as a(n) :

Accepted Answer

A)   comprehensive marketing organization
B)   media buying service
C)   full-service agency
D)   in-house agency

Question 14

The __________is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Accepted Answer

A)   marketing specialist
B)   account executive
C)   media specialist
D)   copywriter

Question 15

Since most of the client's ad budget is spent on media time and/or space, it is important that the media department:

Accepted Answer

A)   coordinates with the creative department to ensure that concepts are not too complex
B)   develops a plan that communicates to the right audience in a cost-efficient manner
C)   focuses on purchasing commercial time on the most popular shows
D)   creates a plan that utilizes the least expensive media vehicles B

Question 16

The department in an advertising agency that is responsible for analyzing, selecting, and contracting for ad space or time that will be used to deliver its client's advertising message is the department ___________.

Accepted Answer

A)   public relations
B)   media
C)   marketing research
D)   account services B

Question 17

Which of the following is NOT a valid criticism of the commission compensation system for an ad agency?

Accepted Answer

A)   There is an incentive to avoid non-commissionable media.
B)   Media costs do not relate directly to effort or expertise expended by agencies.
C)   In periods of media cost inflation, the agency is disproportionately rewarded.
D)   It is difficult to administer.

Question 18

The __________growth of the Internet as a media vehicle has led to the need for all of the following, EXCEPT:

Accepted Answer

A)   the coordination of digital and mass media advertising components
B)   a renewed focus on traditional media
C)   the purchase of interactive firms by full-service agencies
D)   a digital creative services department

Question 19

Under the__________ , the client agrees to pay the agency a fee based on the cost of its work plus some agreed-on profit margin.

Accepted Answer

A)   incentive-based system
B)   fee-combination arrangement
C)   media commission system
D)   cost-plus arrangement

Question 20

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

Accepted Answer

A)   creative services
B)   media
C)   account services
D)   marketing services C

Exam 2: Organizing for Imc: Role of Agencies

A________ is an agency organizational structure in which each functional area is set up as a separate department. This structure is called on as needed to perform its specialty and serve all of the agency's clients.

Correct AnswerverifiedShow Answer

Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers, engravers, photographers, or other vendors to turn a layout into a finished product?

Correct AnswerverifiedShow Answer

Agencies that are reluctant to let clients see their internal cost figures are less likely to accept a(n) :

Correct AnswerverifiedShow Answer

Joe Fresh moved its creativity in-house from an agency in order to:

Correct AnswerverifiedShow Answer

A(n) ________ is the type of firm an organization would hire to develop and implement programs to manage the organization's publicity, image, and affairs with consumers and other relevant publics.

Correct AnswerverifiedShow Answer

The brand manager for Carnation Evaporated Milk wishes to run a holiday cookie contest to find consumers' best recipes. The creator of the best recipe will win a trip to Paris, France. Most likely, Carnation will hire a(n) campaign.____________ to plan and execute the

Correct AnswerverifiedShow Answer

Which of the following best describes an Agency-of-Record (AOR) ?

Correct AnswerverifiedShow Answer

An agency books television media space at a cost of $1,000,000. If cash discounts do not apply, what price does the agency pay to the media company?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following would NOT be a valid reason for switching advertising agencies?

Correct AnswerverifiedShow Answer

Independent companies that specialize in the purchase of radio and television time are known as:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An ad agency that offers its clients a complete range of marketing, communication, and promotion services is known as a(n) :

Correct AnswerverifiedShow Answer

The __________is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Correct AnswerverifiedShow Answer

Since most of the client's ad budget is spent on media time and/or space, it is important that the media department:

Correct AnswerverifiedB

The department in an advertising agency that is responsible for analyzing, selecting, and contracting for ad space or time that will be used to deliver its client's advertising message is the department ___________.

Correct AnswerverifiedB

Which of the following is NOT a valid criticism of the commission compensation system for an ad agency?

Correct AnswerverifiedShow Answer

The __________growth of the Internet as a media vehicle has led to the need for all of the following, EXCEPT:

Correct AnswerverifiedShow Answer

Under the__________ , the client agrees to pay the agency a fee based on the cost of its work plus some agreed-on profit margin.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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B

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B

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C