Question 1

Many agencies are moving toward offering more integrated marketing communication (IMC) services:

Accepted Answer

A)   because they want to maintain control of the entire promotional process because it leads to more synergy among the various communication elements
B)   even though it is less convenient for a client to coordinate all of its promotional efforts with one agency
C)   because an agency with integrated marketing communication capabilities can create a number of different images of the product to appeal to all relevant publics
D)   although effecting economies of scale and synergy is difficult, especially on large budget campaigns

Question 2

Superagencies were formed:

Accepted Answer

A)   because advertisers were disenchanted with large agencies
B)   because advertisers wanted agencies who were flexible and responsive
C)   to save money for clients and lessen the need for competitive pricing
D)   so that agencies could provide their clients with integrated marketing communications services worldwide

Question 3

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

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

What form of compensation is used to pay the advertising agency when the client's advertising program does not involve a large amount of media billings?

Accepted Answer

A)   a share of the profits
B)   a negotiated fee
C)   a rebate from the media
D)   a 17.65 percent mark up on costs

Question 6

Which of the following statements about the development of interactive media is NOT true?

Accepted Answer

A)   Traditional advertising agencies tend not to develop interactive media capabilities.
B)   Many marketers are using specialized interactive agencies to develop their interactive media.
C)   Interactive agencies range from smaller companies that specialize in website design and creation to full-service interactive agencies.
D)   Full-service interactive agencies provide various services including strategic consulting regarding the use of the Internet and online branding, technical knowledge, systems integration, and the development of e-commerce capabilities.

Question 7

Personality conflicts,unrealistic demands by clients,and personnel changes are all reasons why:

Accepted Answer

A)   it is difficult to measure the effectiveness of advertising campaigns
B)   ad agencies lose clients
C)   clients need to use more than one agency
D)   planning and budgeting communication initiatives is difficult

Question 8

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, experienced outside look at its advertising situation
D)   make coordination of the advertising and promotional process easier

Question 9

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

Question 10

Jenna sees a commercial for a new brand of toothpaste.She decides to consider it the next time she goes to the drug store.This is an example of which behavioural objective?

Accepted Answer

A)   retrial
B)   sampling
C)   brand awareness
D)   intent to purchase

Question 11

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) ________ to plan and execute the campaign.

Accepted Answer

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

Question 12

The ________ are the individuals who conceive the ideas for the ads and write the advertising message.

Accepted Answer

A)   copywriters
B)   art directors
C)   traffic coordinators
D)   account executives

Question 13

Which of the following statements about agency commissions is true?

Accepted Answer

A)   Some leading agencies now receive average commissions of 8 to 10 percent.
B)   Nearly all of the leading agencies still earn a 15 percent commission.
C)   Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion.
D)   Most agencies are unwilling to negotiate their commission rates.

Question 14

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

Question 15

Why are negotiated commission structures becoming more common?

Accepted Answer

A)   to ensure that agencies do not make too much money
B)   to consider the needs of clients as well as the amount of time and effort the agency spends on an account
C)   to encourage agencies to cut back on buying network TV advertising for their clients
D)   to support the creation of a transactional relationship between agency and client

Question 16

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

Question 17

A ________ is a type of compensation arrangement where an agency charges a client a fixed monthly amount of money for all of its services and credits media commissions against this monthly rate.

Accepted Answer

A)   fixed fee agreement
B)   negotiated commission
C)   cost-plus agreement
D)   fee-commission combination

Question 18

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

Accepted Answer

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

Question 19

An advertising agency that is set up,owned,and operated by the advertiser is called a(n) :

Accepted Answer

A)   client management firm
B)   in-house agency
C)   centralized system
D)   full-service agency

Question 20

The traditional method of compensating ad agencies is with:

Accepted Answer

A)   the commission system
B)   the hourly billings
C)   the fee system
D)   the straight salary method

Exam 2: Organizing for IMC: Role of Agencies

Jenna sees a commercial for a new brand of toothpaste.She decides to consider it the next time she goes to the drug store.This is an example of which behavioural objective?

Correct AnswerverifiedShow Answer

The ________ are the individuals who conceive the ideas for the ads and write the advertising message.

Correct AnswerverifiedShow Answer

A ________ is a type of compensation arrangement where an agency charges a client a fixed monthly amount of money for all of its services and credits media commissions against this monthly rate.

Correct AnswerverifiedShow Answer

Why are negotiated commission structures becoming more common?

Correct AnswerverifiedShow Answer

Personality conflicts,unrealistic demands by clients,and personnel changes are all reasons why:

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

Which of the following statements about the development of interactive media is NOT true?

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

What form of compensation is used to pay the advertising agency when the client's advertising program does not involve a large amount of media billings?

Correct AnswerverifiedShow Answer

Many agencies are moving toward offering more integrated marketing communication (IMC) services:

Correct AnswerverifiedShow Answer

Superagencies were formed:

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) ________ to plan and execute the campaign.

Correct AnswerverifiedShow Answer

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

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

An advertising agency that is set up,owned,and operated by the advertiser is called a(n) :

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

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

Correct AnswerverifiedShow Answer

Which of the following statements about agency commissions is true?

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

The traditional method of compensating ad agencies is with:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified