Question 1

Which of the following is true of the problems associated with the centralized organizational structure?

Accepted Answer

A)  It does not enable a transfer of functions and responsibilities associated with advertising and promotions to the brand manager.
B)  It does not facilitate coordination with external advertising agencies.
C)  It makes it difficult for the advertising department to understand the overall marketing strategy of the brand.
D)  It makes it difficult for the brand manager to coordinate with the various departments within the organization.
E)  It facilitates disassociation of advertising managers from the category management system.

Question 2

Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from

Accepted Answer

A)  a decentralized marketing system.
B)  an in-house agency.
C)  the use of full-service advertising agencies.
D)  a centralized marketing system.
E)  the use of creative boutiques.

Question 3

The _____ is a document that the agency's creative department uses to guide the development of advertising ideas and concepts.

Accepted Answer

A)  tagline brief
B)  product data sheet
C)  creative brief
D)  copywriter collateral
E)  marketing plan

Question 4

Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following departments in a full-service agency is responsible for the development and execution of advertisements?

Accepted Answer

A)  traffic department
B)  account services department
C)  media planning department
D)  creative services department
E)  production department

Question 6

Account planners work with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists.

Accepted Answer

A) True 
 B)False

Question 7

A(n)  _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

Accepted Answer

A)  financial
B)  operational
C)  departmental
D)  qualitative
E)  grant and contract

Question 8

A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account.

Accepted Answer

A) True 
 B)False

Question 9

J&J 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.With respect to the organizational structures employed by a full-function advertising agency, J&J is using a _____ organizational system.

Accepted Answer

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

Question 10

The qualitative audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a disadvantage of using an in-house advertising agency?

Accepted Answer

A)  external focus rather than internal
B)  limited access to top-level talent
C)  reduced cost savings
D)  less stability
E)  decreased coordination

Question 12

WriteOn Stationery is new in the market.They have hired a specialized agency to promote their products in the market.Which type of specialized service would help them coordinate a program to allow consumers to mail in Universal Product Codes from three WriteOn products to receive a free Redbox movie rental?

Accepted Answer

A)  sales promotion agency
B)  collateral agency
C)  creative boutique
D)  interactive agency
E)  direct-response agency

Question 13

A(n)  _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Accepted Answer

A)  account executive
B)  database manager
C)  media specialist
D)  copywriter
E)  art director

Question 14

With respect to the types of organizational structures, many advertising agencies prefer the group system because

Accepted Answer

A)  it completely avoids the usage of the incentive-based compensation system.
B)  it leads to continuity in client servicing.
C)  it avoids the involvement of the top management in the decision-making processes.
D)  it converts a full-service agency into a media specialist agency.
E)  it keeps the departments within an organization independent of each other.

Question 15

While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm.

Accepted Answer

A) True 
 B)False

Question 16

_____ specialize in the development and management of sweepstakes, refund and rebate offers, and incentive programs.

Accepted Answer

A)  Sales promotion agencies
B)  Direct-response agencies
C)  Creative boutiques
D)  Interactive agencies
E)  Collateral agencies

Question 17

A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency in order to

Accepted Answer

A)  obtain greater control over the advertising process.
B)  reduce costs.
C)  obtain greater objectivity.
D)  make coordination of the advertising and promotional process easier.
E)  save media commissions.

Question 18

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)  account service agency.
D)  full-service agency.
E)  buzz marketing agency.

Question 19

_____ are the major participants in the integrated marketing communications process who pay for advertising campaigns and promotions.

Accepted Answer

A)  Collateral service providers
B)  Clients
C)  Advertising agencies
D)  Media organizations
E)  Special service organizations

Question 20

Fixed-fee method of compensation is also called

Accepted Answer

A)  objective-and-task method.
B)  value-based compensation.
C)  incentive-based compensation.
D)  cost-plus fee method.
E)  straight-fee method.

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

The qualitative audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers.

Correct Answer
verified

_____ specialize in the development and management of sweepstakes, refund and rebate offers, and incentive programs.

Correct Answer
verified

Which of the following is a disadvantage of using an in-house advertising agency?

Correct Answer
verified

Correct Answer
verified

A(n) _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

Correct Answer
verified

Account planners work with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is true of the problems associated with the centralized organizational structure?

Correct Answer
verified

Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space.

Correct Answer
verified

A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account.

Correct Answer
verified

_____ are the major participants in the integrated marketing communications process who pay for advertising campaigns and promotions.

Correct Answer
verified

A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency in order to

Correct Answer
verified

Fixed-fee method of compensation is also called

Correct Answer
verified

The _____ is a document that the agency's creative department uses to guide the development of advertising ideas and concepts.

Correct Answer
verified

With respect to the types of organizational structures, many advertising agencies prefer the group system because

Correct Answer
verified

Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from

Correct Answer
verified

J&J 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.With respect to the organizational structures employed by a full-function advertising agency, J&J is using a _____ organizational system.

Correct Answer
verified

While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm.

Correct Answer
verified

Which of the following departments in a full-service agency is responsible for the development and execution of advertisements?

Correct Answer
verified

A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Correct Answer
verified

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

The qualitative audit focuses on how the agency conducts its business. It is designed to verify costs and expenses, the number of personnel hours charged to an account, and payments to media and outside suppliers.

Correct AnswerverifiedShow Answer

_____ specialize in the development and management of sweepstakes, refund and rebate offers, and incentive programs.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of using an in-house advertising agency?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A(n) _____ audit of an agency is designed to verify costs, expenses, and payments to outside suppliers.

Correct AnswerverifiedShow Answer

Account planners work with the client as well as other agency personnel, including the account executives, creative team members, research department personnel, and media specialists.

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 is true of the problems associated with the centralized organizational structure?

Correct AnswerverifiedShow Answer

Media buying services have found a niche by specializing in the analysis and purchase of advertising time and space.

Correct AnswerverifiedShow Answer

A cost-plus system requires that the agency keep detailed records of the costs it incurs in working on a client's account.

Correct AnswerverifiedShow Answer

_____ are the major participants in the integrated marketing communications process who pay for advertising campaigns and promotions.

Correct AnswerverifiedShow Answer

A company that uses an in-house agency might turn its advertising and promotion tasks over to an outside agency in order to

Correct AnswerverifiedShow Answer

Fixed-fee method of compensation is also called

Correct AnswerverifiedShow Answer

The _____ is a document that the agency's creative department uses to guide the development of advertising ideas and concepts.

Correct AnswerverifiedShow Answer

With respect to the types of organizational structures, many advertising agencies prefer the group system because

Correct AnswerverifiedShow Answer

Lack of long-term objectivity, flexibility, and creativity are a few of the reasons why a company might move away from

Correct AnswerverifiedShow Answer

J&J 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.With respect to the organizational structures employed by a full-function advertising agency, J&J is using a _____ organizational system.

Correct AnswerverifiedShow Answer

While many people both inside and outside the organization have some input into the advertising and promotion process, direct responsibility for administering the program must be assumed by someone within the firm.

Correct AnswerverifiedShow Answer

Which of the following departments in a full-service agency is responsible for the development and execution of advertisements?

Correct AnswerverifiedShow Answer

A(n) _____ is responsible for understanding the advertiser's marketing and promotional needs and interpreting them to agency personnel.

Correct AnswerverifiedShow Answer

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