Question 1

An advertising agency might use a group system organizational structure to:

Accepted Answer

A)  allow agency personnel to become very knowledgeable about a particular client's market and business
B)  ensure continuity in servicing a particular account
C)  provide better service to a key account
D)  create a long-term relationship with its clients
E)  do all of the above

Question 2

In the mid-1990s,a number of mid-sized ad agencies formed alliances with larger agencies:

Accepted Answer

A)  to save money
B)  to offer greater media buying capabilities
C)  because clients want agencies with integrated marketing communications capabilities worldwide
D)  so they can specialize in a particular area of integrated marketing communications
E)  all of the above

Question 3

Which of the following is NOT a valid criticism of the commission compensation system as it is currently used to compensate ad agencies?

Accepted Answer

A)  It is difficult to administer.
B)  Media costs have risen more rapidly than inflation.
C)  There is an incentive to avoid noncommissionable media.
D)  Media costs do not relate directly to effort or expertise expended by agencies.
E)  It keeps the emphasis in agency competition on nonprice factors.

Question 4

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

Accepted Answer

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

Question 5

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 6

______ is the functional area or department in an organization most likely to be involved in the promotional planning process.

Accepted Answer

A)  Accounting
B)  Media relations
C)  Corporate affairs
D)  Finance
E)  Marketing

Question 7

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 8

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 9

A full-service agency offers its clients:

Accepted Answer

A)  account services
B)  research
C)  creative development
D)  public relations expertise
E)  all of the above

Question 10

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)  all of the above

Question 11

Most of an advertising agency's expenses are in the area of:

Accepted Answer

A)  media costs
B)  salaries and benefits for employees
C)  personal selling
D)  production facilities
E)  commissions

Question 12

A public relations firm:

Accepted Answer

A)  generates publicity
B)  develops programs to maintain the client's image
C)  analyzes the relationship between the client and its publics
D)  prepares news releases
E)  does all of the above

Question 13

A _____ advertising organizational system has the advantages of concentrated managerial attention,rapid response to problems,and increased flexibility.

Accepted Answer

A)  centralized
B)  decentralized
C)  democratic
D)  collateral system
E)  functionally-incorporated

Question 14

The term client,in the ad agency industry,refers to the:

Accepted Answer

A)  advertiser or organization that has the product,service or cause that needs to be marketed
B)  media
C)  purchaser of the consumer product advertised
D)  market for consumer products
E)  advertising agency

Question 15

The opening vignette "Nike Wants More than Great Ads" shows

Accepted Answer

A)  compelling ads are the key to marketing success
B)  marketers are using less traditional and more digital advertising
C)  efforts to maximize television advertising reach offers increased full service consumer satisfaction
D)  celebrity spokespeople are critical to institutional success
E)  integrated marketing communications is being replaced by Internet marketing communications See opening vignette.

Question 16

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 mangers 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 17

Under a centralized organizational system,the responsibility for planning and controlling the advertising and promotional function lies with the:

Accepted Answer

A)  brand manager
B)  advertising manager
C)  product manager
D)  in-house agency
E)  vice president of marketing

Question 18

To implement BMW's new branding campaign,the decision was made to use short digital films and to create a Web site where consumers could view the films.Which specialized service would have most likely been involved in this campaign?

Accepted Answer

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

Question 19

_____ 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)  Public relations firms

Question 20

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

Accepted Answer

A)  get more control over the advertising process
B)  save money
C)  get an objective,fresh look at its advertising situation by someone outside the company who can come up with different creative ideas
D)  make coordination of the advertising and promotional process easier
E)  do all of the above

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

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

To implement BMW's new branding campaign,the decision was made to use short digital films and to create a Web site where consumers could view the films.Which specialized service would have most likely been involved in this campaign?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The opening vignette "Nike Wants More than Great Ads" shows

Correct AnswerverifiedShow Answer

In the mid-1990s,a number of mid-sized ad agencies formed alliances with larger agencies:

Correct AnswerverifiedShow Answer

Most of an advertising agency's expenses are in the area of:

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

______ is the functional area or department in an organization most likely to be involved in the promotional planning process.

Correct AnswerverifiedShow Answer

Under a centralized organizational system,the responsibility for planning and controlling the advertising and promotional function lies with the:

Correct AnswerverifiedShow Answer

Which of the following is NOT a valid criticism of the commission compensation system as it is currently used to compensate ad agencies?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A full-service agency offers its clients:

Correct AnswerverifiedShow Answer

The term client,in the ad agency industry,refers to the:

Correct AnswerverifiedShow Answer

A public relations firm:

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

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

Correct AnswerverifiedShow Answer

A _____ advertising organizational system has the advantages of concentrated managerial attention,rapid response to problems,and increased flexibility.

Correct AnswerverifiedShow Answer

An advertising agency might use a group system organizational structure to:

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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