Question 1

Which of the following is a disadvantage of using a centralized organizational system?

Accepted Answer

A)  Longer response time
B)  Allows for very little top-management involvement
C)  Involvement of a huge number of people in making program decisions
D)  Prohibits communications
E)  Discontinuity in staff

Question 2

An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice.

Accepted Answer

A) True 
 B)False

Question 3

In the ad agency industry, clients refer to:

Accepted Answer

A)  an advertiser or organization that has the product, service, or cause that needs to be marketed.
B)  any media, which plays a crucial role in the process of marketing communication.
C)  a purchaser of the consumer product advertised.
D)  a market for business or consumer products.
E)  an advertising agency that specializes in the creation of the communications messagE.The advertisers, or clients, are the key participants in the integrated marketing communications process.They have the products, services, or causes to be marketed, and they provide the funds that pay for advertising and promotions.

Question 4

In companies which follow a centralized organizational system, who among the following is likely to be given the title "marketing communications manager"?

Accepted Answer

A)  Art director
B)  Brand manager
C)  Advertising manager
D)  Product manager
E)  Copywriter

Question 5

The role of account representatives is likely to disappear as agencies and their clients are beginning to liaise directly with each other.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A company often uses a centralized organizational system when:

Accepted Answer

A)  it has many different divisions within the company.
B)  it does not want to involve the top management in the decision making process.
C)  it does not have many product lines or brands to advertise.
D)  it wants to involve a large number of people in making program decisions.
E)  it wants to have a category management system in placE.A centralized organizational system is often used when companies do not have many different divisions, product or service lines, or brands to advertise.Many companies prefer a centralized advertising department because developing and coordinating advertising programs from one central location facilitates communication regarding the promotions program, making it easier for top management to participate in decision making.

Question 8

Creative Networks is a major participant in the advertising and promotion process. It attracts various companies to buy space and time with them by providing the same at discounted rates. Creative Networks helps these companies reach their target market effectively by communicating their message. In this scenario, Creative Networks is a(n) :

Accepted Answer

A)  advertiser.
B)  collateral service provider.
C)  media organization.
D)  creative boutique.
E)  sales promotion agency.

Question 9

Which of the following is true of the role of an account executive?

Accepted Answer

A)  It is primarily considered as a research function.
B)  It is used only by centralized organizations.
C)  It is generally considered as a subsidiary function.
D)  It includes an extensive creative aspect.
E)  It is the focal point of agency-client relationships.

Question 10

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 11

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 12

Which of the following is an advantage of a decentralized organizational system?

Accepted Answer

A)  Effective decision making
B)  Rapid response to problems and opportunities
C)  Lack of internal conflicts
D)  Enhanced authority
E)  External rather than internal focus

Question 13

_____ are the individuals in the creative services department of an ad agency who conceive the ideas for the ads and compose the advertising message.

Accepted Answer

A)  Copywriters
B)  Art directors
C)  Account planners
D)  Account executives
E)  Media planners

Question 14

From the perspective of a promotional planner, the primary purpose of media is to:

Accepted Answer

A)  represent the company's senior management in negotiations with an ad agency.
B)  provide the company with strategic recommendations and analysis.
C)  provide an environment for the firm's marketing communications message.
D)  help conduct a SWOT analysis.
E)  provide appropriate funding for all marketing activities.

Question 15

Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?

Accepted Answer

A)  A creative boutique
B)  A full-service agency
C)  A media buying service
D)  A collateral agency
E)  A switch marketing agency

Question 16

Momentum Automobiles, an automobile manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum is only required to provide the necessary finances and does not take part in any decision making. In the given scenario, Momentum Automobiles would be classified as a(n) :

Accepted Answer

A)  client.
B)  illustrator.
C)  full service agency.
D)  advertising agency.
E)  media organization.

Question 17

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

Accepted Answer

A)  brand manager.
B)  marketing communications manager.
C)  product manager.
D)  art director.
E)  account planning supervisor.

Question 18

Which of the following statements is true about creative boutiques?

Accepted Answer

A)  They generally have media, research, and account planning capabilities.
B)  They are large ad agencies that provide all types of advertising and promotion services.
C)  They often subcontract work to full service agencies.
D)  They tend to provide quicker innovative services due to less bureaucracy.
E)  They are generally characterized by extensive internal politics.

Question 19

Dynamic Inc., an advertising agency in Manhattan, receives compensation from its clients based on Dynamic's sales and market share performance. This is an example of a(n)  _____ compensation system.

Accepted Answer

A)  fixed-fee
B)  straight-fee
C)  value-based
D)  cost-plus
E)  objective-and-task

Question 20

A _____ audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved.

Accepted Answer

A)  quantitative
B)  social
C)  financial
D)  qualitative
E)  contract-grant

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

Correct Answer
verified

Which of the following is a disadvantage of using a centralized organizational system?

Correct Answer
verified

In the ad agency industry, clients refer to:

Correct Answer
verified

Dynamic Inc., an advertising agency in Manhattan, receives compensation from its clients based on Dynamic's sales and market share performance. This is an example of a(n) _____ compensation system.

Correct Answer
verified

Momentum Automobiles, an automobile manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum is only required to provide the necessary finances and does not take part in any decision making. In the given scenario, Momentum Automobiles would be classified as a(n) :

Correct Answer
verified

From the perspective of a promotional planner, the primary purpose of media is to:

Correct Answer
verified

A _____ audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved.

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 is true of the role of an account executive?

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

The role of account representatives is likely to disappear as agencies and their clients are beginning to liaise directly with each other.

Correct Answer
verified

Which of the following statements is true about creative boutiques?

Correct Answer
verified

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

Correct Answer
verified

_____ are the individuals in the creative services department of an ad agency who conceive the ideas for the ads and compose the advertising message.

Correct Answer
verified

Which of the following is an advantage of a decentralized organizational system?

Correct Answer
verified

An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice.

Correct Answer
verified

Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?

Correct Answer
verified

In companies which follow a centralized organizational system, who among the following is likely to be given the title "marketing communications manager"?

Correct Answer
verified

A company often uses a centralized organizational system when:

Correct Answer
verified

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

Correct Answer
verified

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

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of using a centralized organizational system?

Correct AnswerverifiedShow Answer

In the ad agency industry, clients refer to:

Correct AnswerverifiedShow Answer

Dynamic Inc., an advertising agency in Manhattan, receives compensation from its clients based on Dynamic's sales and market share performance. This is an example of a(n) _____ compensation system.

Correct AnswerverifiedShow Answer

Momentum Automobiles, an automobile manufacturer, hires Dreams Inc. to cater to its advertising needs. Momentum is only required to provide the necessary finances and does not take part in any decision making. In the given scenario, Momentum Automobiles would be classified as a(n) :

Correct AnswerverifiedShow Answer

From the perspective of a promotional planner, the primary purpose of media is to:

Correct AnswerverifiedShow Answer

A _____ audit focuses on the agency's efforts in planning, developing, and implementing the client's advertising programs and considers the results achieved.

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 is true of the role of an account executive?

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

The role of account representatives is likely to disappear as agencies and their clients are beginning to liaise directly with each other.

Correct AnswerverifiedShow Answer

Which of the following statements is true about creative boutiques?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____ are the individuals in the creative services department of an ad agency who conceive the ideas for the ads and compose the advertising message.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a decentralized organizational system?

Correct AnswerverifiedShow Answer

An agency with integrated marketing capabilities can create a single image for the product or service and address everyone, from wholesalers to consumers, with one voice.

Correct AnswerverifiedShow Answer

Which type of ad agency is most likely to offer its clients an extensive range of marketing, communications, and promotions services, including planning, creating, and producing the advertising; performing research; and selecting media?

Correct AnswerverifiedShow Answer

In companies which follow a centralized organizational system, who among the following is likely to be given the title "marketing communications manager"?

Correct AnswerverifiedShow Answer

A company often uses a centralized organizational system when:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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