Question 1

In a centralized organizational arrangement,the _____ department is responsible for developing promotional plans that will be approved by management and recommending a promotions program based on the overall marketing plan,objectives,and budget.

Accepted Answer

A)  production
B)  marketing
C)  sales
D)  advertising
E)  product planning

Question 2

National Fruit Company makes "WhiteHouse" 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 3

Which of the following statements about creative boutiques is true?

Accepted Answer

A)  Creative boutiques are more successful today than ever before.
B)  The demand for IMC services has had little influence on how creative boutiques do business.
C)  Creative boutiques use an aggregated business model instead of niche marketing.
D)  Creative boutiques today are having trouble because clients often want a range of services.
E)  Consolidation has led to the demise of creative boutiques.

Question 4

The agency person who is the focal point of the agency-client relationship is the:

Accepted Answer

A)  media buyer.
B)  account planner.
C)  copywriter.
D)  brand manager.
E)  account executive.

Question 5

Which of the following is true about integrated services?

Accepted Answer

A)  Companies prefer separate agencies for sales promotion,direct marketing,interactive marketing etc.as they are easier to coordinate.
B)  An agency with integrated marketing capabilities can create a single image for the product or service.
C)  Not many advertisers and agencies feel that integrated marketing is important to their organizations' success.
D)  Most advertisers want their ad agencies to set strategy for and coordinate the integrated marketing communications program for them.
E)  Most of the large marketers feel that the agency executives are capable of handling the various elements of an integrated campaign.

Question 6

Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Accepted Answer

A)  Commission system
B)  Fee arrangement system
C)  Cost-plus system
D)  Incentive-based compensation system
E)  Objective-and-task compensation system

Question 7

When a _____ is used,most of a company's advertising and promotional activities will be the responsibility of the advertising manager.

Accepted Answer

A)  brand manager system
B)  decentralized marketing system
C)  centralized system
D)  media buying service
E)  creative boutique

Question 8

If an advertiser wants a very detailed accounting of how its advertising and promotional monies are being spent and what it is being charged by its ad agency,it is likely to use a(n) _____ compensation system.

Accepted Answer

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

Question 9

Which of the following is an advantage associated with an in-house advertising agency?

Accepted Answer

A)  Lower advertising costs
B)  More highly skilled specialists
C)  More varied perspective on advertising problems
D)  Greater flexibility
E)  Disseminate control to outside agencies.

Question 10

During a merger or acquisition of the agency by some other larger agency,the main reason for the discontinuation of the agency-client relationship is:

Accepted Answer

A)  conflict of interest.
B)  poor performance.
C)  poor communication.
D)  changes in client's corporate strategy.
E)  declining sales.

Question 11

A _____ audit of an agency focuses on factors such as costs,expenses and payments to outside suppliers while a _____ audit focuses on factors such as the agency's efforts in planning,development and implementing the advertising program.

Accepted Answer

A)  financial;qualitative
B)  qualitative;financial
C)  financial;creative
D)  qualitative;quantitative
E)  fixed costs;variable costs

Question 12

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

Accepted Answer

A)  Large advertisers do not use media departments to purchase media time and space.
B)  Media departments do not have the ability or the authority to negotiate prices.
C)  It reviews information on demographics,and consumers' television viewing habits.
D)  Consolidating media buying is not cost effective and may reduce media efficiency.
E)  The media buyer implements the media plan by selling the actual time and space.

Question 13

Direct-response agencies:

Accepted Answer

A)  manage premium and incentive offers.
B)  specialize in the development of Web sites.
C)  engage in crisis management.
D)  manage clients' databases.
E)  respond directly to the client's customers.

Question 14

Why would General Motors switch to an incentive-based compensation system with several of its agencies?

Accepted Answer

A)  To encourage its agencies to use more mass media advertising.
B)  To encourage its agencies to stop using network TV advertising.
C)  To reduce control.
D)  To demand more accountability and pay the agencies based on their performance.
E)  To accomplish all of the above objectives.

Question 15

A study by the Corporate Executive Board's Advertising and Marketing Roundtable found:

Accepted Answer

A)  consumers are more interested in integrated marketing communications.
B)  clients prefer full service agencies over brokered advertising services.
C)  situational factors are creating a promotional overlay effectively synthesizing.
D)  integrated marketing communications in most organizations.
E)  marketers are using numerous partners to access the special talents and expertise as needed.

Question 16

A _____ is an agency organizational structure in which each functional area is set up as a separate department.The parts of this structure are called on as needed to perform their particular specialty and serve all of the agency's clients.

Accepted Answer

A)  departmental system
B)  group system
C)  creative boutique
D)  matrix system
E)  media buying service system

Question 17

Probably the most effective way for an agency to acquire new business is through:

Accepted Answer

A)  its image and reputation.
B)  its public relations effort.
C)  solicitations.
D)  referrals.
E)  its pricing strategy.Perhaps the most effective way an agency can gain new business is through its reputation for doing excellent work for the clients it serves.Word travels fast through the advertising and marketing industry regarding the agencies that are doing outstanding creative work in advertising as well as in other areas of IMC.

Question 18

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 to the brand managers.
C)  conduct marketing research based on the problems identified during segmentation.
D)  develop sales programs that would be effective against the target market.
E)  check manufacturing of the products according to the demand in the market.

Question 19

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

Accepted Answer

A)  creative boutique.
B)  media buying service.
C)  in-house agency.
D)  full-service agency.
E)  integrated marketing organization.

Question 20

Organizations that specialize in the creation of interactive media such as CD-ROMs,kiosks,and web sites are known as:

Accepted Answer

A)  sales promotion agencies.
B)  public relations firms.
C)  creative boutiques.
D)  interactive agencies.
E)  direct-response agencies.

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

Organizations that specialize in the creation of interactive media such as CD-ROMs,kiosks,and web sites are known as:

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In a centralized organizational arrangement,the _____ department is responsible for developing promotional plans that will be approved by management and recommending a promotions program based on the overall marketing plan,objectives,and budget.

Correct AnswerverifiedShow Answer

Direct-response agencies:

Correct AnswerverifiedShow Answer

Under which type of compensation system might an agency be more inclined to recommend expensive media such as network television and national magazines to its clients?

Correct AnswerverifiedShow Answer

A _____ audit of an agency focuses on factors such as costs,expenses and payments to outside suppliers while a _____ audit focuses on factors such as the agency's efforts in planning,development and implementing the advertising program.

Correct AnswerverifiedShow Answer

The agency person who is the focal point of the agency-client relationship is the:

Correct AnswerverifiedShow Answer

Which of the following statements about creative boutiques is true?

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

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

Correct AnswerverifiedShow Answer

A _____ is an agency organizational structure in which each functional area is set up as a separate department.The parts of this structure are called on as needed to perform their particular specialty and serve all of the agency's clients.

Correct AnswerverifiedShow Answer

Which of the following is true about integrated services?

Correct AnswerverifiedShow Answer

Probably the most effective way for an agency to acquire new business is through:

Correct AnswerverifiedShow Answer

National Fruit Company makes "WhiteHouse" 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

During a merger or acquisition of the agency by some other larger agency,the main reason for the discontinuation of the agency-client relationship is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a _____ is used,most of a company's advertising and promotional activities will be the responsibility of the advertising manager.

Correct AnswerverifiedShow Answer

A study by the Corporate Executive Board's Advertising and Marketing Roundtable found:

Correct AnswerverifiedShow Answer

Which of the following is an advantage associated with an in-house advertising agency?

Correct AnswerverifiedShow Answer

Why would General Motors switch to an incentive-based compensation system with several of its agencies?

Correct AnswerverifiedShow Answer

If an advertiser wants a very detailed accounting of how its advertising and promotional monies are being spent and what it is being charged by its ad agency,it is likely to use a(n) _____ compensation system.

Correct AnswerverifiedShow Answer

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A _ audit of an agency focuses on factors such as costs,expenses and payments to outside suppliers while a _ audit focuses on factors such as the agency's efforts in planning,development and implementing the advertising program.

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National Fruit Company makes "WhiteHouse" 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) _.

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