Question 1

Negotiated commission rates for advertising agencies:

Accepted Answer

A)  are rarely used by consumer-products advertisers 
B)  are becoming less common 
C)  are designed primarily to benefit agencies 
D)  are becoming more commonplace 
A)  are rarely used by consumer-products advertisers 
B)  are becoming less common 
C)  are designed primarily to benefit agencies 
D)  are becoming more commonplace

Question 2

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

Accepted Answer

A)  Many marketers are using specialized interactive agencies to develop their interactive media. 
B)  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. 
C)  Traditional advertising agencies tend not to develop interactive media capabilities. 
D)  Interactive agencies range from smaller companies that specialize in website design and creation to full-service interactive agencies. 
A)  Many marketers are using specialized interactive agencies to develop their interactive media. 
B)  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. 
C)  Traditional advertising agencies tend not to develop interactive media capabilities. 
D)  Interactive agencies range from smaller companies that specialize in website design and creation to full-service interactive agencies.

Question 3

When a client works for many years with a primary agency whose focus is on building the client's brand, it is known as a(n):

Accepted Answer

A)  full-service relationship 
B)  agency-of-record (AOR) 
C)  principle agency 
D)  primary service provider 
A)  full-service relationship 
B)  agency-of-record (AOR) 
C)  principle agency 
D)  primary service provider

Question 4

specialize in offering services, such as database management, direct mail and creative and production capabilities.

Accepted Answer

A)  Public relations firms 
B)  Direct-response agencies 
C)  Creative boutiques 
D)  Sales promotion agencies 
A)  Public relations firms 
B)  Direct-response agencies 
C)  Creative boutiques 
D)  Sales promotion agencies

Question 5

Which of the following compensation methods should an advertiser adopt if its primary goal is to achieve efficiency and accountability?

Accepted Answer

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

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

Question 7

Which of the following should a client's evaluation of its advertising agency's performance NOT take into account?

Accepted Answer

A)  performance of account representatives 
B)  financial status of the agency 
C)  qualitative considerations, such as the quality of the agency's efforts in creative, media, etc. 
D)  market performance measures, such as sales and market share 
A)  performance of account representatives 
B)  financial status of the agency 
C)  qualitative considerations, such as the quality of the agency's efforts in creative, media, etc. 
D)  market performance measures, such as sales and market share

Question 8

The Red River Valley advertising agency receives compensation from its clients based on how well it meets predetermined performance goals. Indicate the compensation method that best corresponds to this situation.

Accepted Answer

A)  incentive-based 
B)  fee-commission 
C)  fixed-fee 
D)  cost-plus system 
A)  incentive-based 
B)  fee-commission 
C)  fixed-fee 
D)  cost-plus system

Question 9

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 17.65 percent markup on costs 
B)  a negotiated commission 
C)  a rebate from the media 
D)  a share of the profits 
A)  a 17.65 percent markup on costs 
B)  a negotiated commission 
C)  a rebate from the media 
D)  a share of the profits

Question 10

Advertising ideas and concepts are derived from the creative brief, which includes information about consumers, competitors, and the market. This is the responsibility of the:

Accepted Answer

A)  account planner 
B)  creative director 
C)  media director 
D)  account executive 
A)  account planner 
B)  creative director 
C)  media director 
D)  account executive

Question 11

A full-service agency offers its clients all of the following EXCEPT:

Accepted Answer

A)  full range of marketing, communication, and promotion services 
B)  human resources management 
C)  public relations expertise 
D)  research and creative development 
A)  full range of marketing, communication, and promotion services 
B)  human resources management 
C)  public relations expertise 
D)  research and creative development

Question 12

Agency compensation under the commission system is based on:

Accepted Answer

A)  a specified percentage of any advertising time or space the agency purchases for its client 
B)  a percentage of a client's marketing budget 
C)  a percentage of advertising production costs 
D)  the total number of hours worked 
A)  a specified percentage of any advertising time or space the agency purchases for its client 
B)  a percentage of a client's marketing budget 
C)  a percentage of advertising production costs 
D)  the total number of hours worked

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 unwilling to negotiate their commission rates. 
D)  Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion. 
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 unwilling to negotiate their commission rates. 
D)  Most agencies are earning more of their income from fixed commissions as clients expand their IMC programs to include other forms of promotion.

Question 14

Marketers willing to increase message credibility and save media costs are more likely to use the services of a(n):

Accepted Answer

A)  direct-response agency 
B)  advertising agency 
C)  sales promotion agency 
D)  public relations firm 
A)  direct-response agency 
B)  advertising agency 
C)  sales promotion agency 
D)  public relations firm

Question 15

Cheerios has a sweepstakes on their boxes where consumers can win a family trip to Disney World. They hired a_________ to develop the creative, negotiate the trip costs, and administer the prizes.

Accepted Answer

A)  direct-response agency 
B)  mid-range agency 
C)  sales promotion agency 
D)  creative boutique 
A)  direct-response agency 
B)  mid-range agency 
C)  sales promotion agency 
D)  creative boutique

Question 16

Major agencies that offer an ever-broadening range of IMC services would be more appropriately called:

Accepted Answer

A)  full-service partners 
B)  advertising agencies 
C)  multinational creative boutiques 
D)  marketing communication agencies 
A)  full-service partners 
B)  advertising agencies 
C)  multinational creative boutiques 
D)  marketing communication agencies

Question 17

Which of the following is NOT a benefit of integrated IMC services?

Accepted Answer

A)  Clients maintain control of the entire promotional process, and achieve greater synergy among each of the program elements. 
B)  It is more convenient to coordinate all of its marketing efforts through one agency. 
C)  Agency personnel have expertise in particular aspects of the process and therefore are inclined to consider all variables in the planning decision. 
D)  An integrated approach creates one single image and voice to address all audiences. 
A)  Clients maintain control of the entire promotional process, and achieve greater synergy among each of the program elements. 
B)  It is more convenient to coordinate all of its marketing efforts through one agency. 
C)  Agency personnel have expertise in particular aspects of the process and therefore are inclined to consider all variables in the planning decision. 
D)  An integrated approach creates one single image and voice to address all audiences.

Question 18

Which of the following might NOT be a reason why an advertising agency would use a group system organizational structure? It would:

Accepted Answer

A)  allow agency personnel to become very knowledgeable about a particular client's market and business 
B)  provide superior service for its accounts 
C)  provide better pricing to a key client 
D)  ensure continuity in servicing a particular account 
A)  allow agency personnel to become very knowledgeable about a particular client's market and business 
B)  provide superior service for its accounts 
C)  provide better pricing to a key client 
D)  ensure continuity in servicing a particular account

Question 19

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

Accepted Answer

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

Question 20

Which of the following is NOT true about creative boutiques?

Accepted Answer

A)  Creative boutiques work directly with clients. 
B)  Members of creative departments of larger firms sometimes leave to create smaller creative boutiques. 
C)  Creative boutiques are subcontracted by full-service agencies. 
D)  Clients do not directly hire creative boutiques, but work with them through their Agency-of-Record. 
A)  Creative boutiques work directly with clients. 
B)  Members of creative departments of larger firms sometimes leave to create smaller creative boutiques. 
C)  Creative boutiques are subcontracted by full-service agencies. 
D)  Clients do not directly hire creative boutiques, but work with them through their Agency-of-Record.

Negotiated commission rates for advertising agencies:

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

When a client works for many years with a primary agency whose focus is on building the client's brand, it is known as a(n):

specialize in offering services, such as database management, direct mail and creative and production capabilities.

Which of the following compensation methods should an advertiser adopt if its primary goal is to achieve efficiency and accountability?

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?

Which of the following should a client's evaluation of its advertising agency's performance NOT take into account?

The Red River Valley advertising agency receives compensation from its clients based on how well it meets predetermined performance goals. Indicate the compensation method that best corresponds to this situation.

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?

Advertising ideas and concepts are derived from the creative brief, which includes information about consumers, competitors, and the market. This is the responsibility of the:

A full-service agency offers its clients all of the following EXCEPT:

Agency compensation under the commission system is based on:

Which of the following statements about agency commissions is true?

Marketers willing to increase message credibility and save media costs are more likely to use the services of a(n):

Cheerios has a sweepstakes on their boxes where consumers can win a family trip to Disney World. They hired a_________ to develop the creative, negotiate the trip costs, and administer the prizes.

Major agencies that offer an ever-broadening range of IMC services would be more appropriately called:

Which of the following is NOT a benefit of integrated IMC services?

Which of the following might NOT be a reason why an advertising agency would use a group system organizational structure? It would:

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

Which of the following is NOT true about creative boutiques?

Integrated Marketing Communications

Consumer Behaviour and Target Audience Decisions

Communication Response Models

Objectives for the Imc Plan

Brand Positioning Strategy Decisions

Creative Strategy Decisions

Creative Tactics Decisions

Measuring the Effectiveness of the Promotional Message

Media Planning and Budgeting for IMC

Broadcast Media

Print Media

Out-Of-Home and Support Media

Sales Promotion

Public Relations

Direct Marketing

Internet Media

Regulatory, Ethical, Social, and Economic Issues for IMC

Filters

Exam 2: Organizing for Imc: Role of Agencies

Negotiated commission rates for advertising agencies:

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

When a client works for many years with a primary agency whose focus is on building the client's brand, it is known as a(n):

specialize in offering services, such as database management, direct mail and creative and production capabilities.

Which of the following compensation methods should an advertiser adopt if its primary goal is to achieve efficiency and accountability?

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?

Which of the following should a client's evaluation of its advertising agency's performance NOT take into account?

The Red River Valley advertising agency receives compensation from its clients based on how well it meets predetermined performance goals. Indicate the compensation method that best corresponds to this situation.

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?

Advertising ideas and concepts are derived from the creative brief, which includes information about consumers, competitors, and the market. This is the responsibility of the:

A full-service agency offers its clients all of the following EXCEPT:

Agency compensation under the commission system is based on:

Which of the following statements about agency commissions is true?

Marketers willing to increase message credibility and save media costs are more likely to use the services of a(n):

Cheerios has a sweepstakes on their boxes where consumers can win a family trip to Disney World. They hired a_________ to develop the creative, negotiate the trip costs, and administer the prizes.

Major agencies that offer an ever-broadening range of IMC services would be more appropriately called:

Which of the following is NOT a benefit of integrated IMC services?

Which of the following might NOT be a reason why an advertising agency would use a group system organizational structure? It would:

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

Which of the following is NOT true about creative boutiques?

Integrated Marketing Communications

Consumer Behaviour and Target Audience Decisions

Communication Response Models

Objectives for the Imc Plan

Brand Positioning Strategy Decisions

Creative Strategy Decisions

Creative Tactics Decisions

Measuring the Effectiveness of the Promotional Message

Media Planning and Budgeting for IMC

Broadcast Media

Print Media

Out-Of-Home and Support Media

Sales Promotion

Public Relations

Direct Marketing

Internet Media

Regulatory, Ethical, Social, and Economic Issues for IMC

Filters