Question 1

Because____________purchase such large amounts of time and space, they receive large discounts.

Accepted Answer

A)  full-service agencies 
B)  in-house agencies 
C)  creative boutiques 
D)  media buying services 
A)  full-service agencies 
B)  in-house agencies 
C)  creative boutiques 
D)  media buying services

Question 2

Target's internal creative department handles the design of each of these elements EXCEPT:

Accepted Answer

A)  branding initiatives 
B)  direct-mail pieces 
C)  in-store displays 
D)  weekly circulars 
A)  branding initiatives 
B)  direct-mail pieces 
C)  in-store displays 
D)  weekly circulars

Question 3

The four behavioural objectives that are measures of marketing communication effectiveness are intent to purchase, trial, repeat purchase, and __________.

Accepted Answer

A)  viral media 
B)  brand loyalty 
C)  brand understanding 
D)  positioning 
A)  viral media 
B)  brand loyalty 
C)  brand understanding 
D)  positioning

Question 4

Companies who use a combination of in-house and outside agencies tend to use the external firms mostly for:

Accepted Answer

A)  sales presentations 
B)  creative and media services 
C)  weekly circulars 
D)  direct mail pieces 
A)  sales presentations 
B)  creative and media services 
C)  weekly circulars 
D)  direct mail pieces

Question 5

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

Accepted Answer

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

Question 6

Which of the following is NOT a measure of marketing communication effectiveness?

Accepted Answer

A)  brand awareness 
B)  brand image ratings 
C)  retail sales results 
D)  advertising likeability 
A)  brand awareness 
B)  brand image ratings 
C)  retail sales results 
D)  advertising likeability

Question 7

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

Accepted Answer

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

Question 8

The ____________department coordinates all phases of production to see that the ads are completed on time.

Accepted Answer

A)  production 
B)  art 
C)  media 
D)  traffic 
A)  production 
B)  art 
C)  media 
D)  traffic

Question 9

Which of the following statements about changes in the way advertising agencies are being compensated is true?

Accepted Answer

A)  Since most clients want their agencies to be in total charge of the integrated marketing communications process, they are willing to compensate them based on media commissions. 
B)  From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. 
C)  With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation. 
D)  Many agencies and their clients have developed some type of fee arrangement or cost-plus agreement for agency compensation. 
A)  Since most clients want their agencies to be in total charge of the integrated marketing communications process, they are willing to compensate them based on media commissions. 
B)  From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. 
C)  With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation. 
D)  Many agencies and their clients have developed some type of fee arrangement or cost-plus agreement for agency compensation.

Question 10

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

Question 11

Which of the following functions is NOT performed by the agency's research department?

Accepted Answer

A)  planning the creative and media strategies for the advertising campaign 
B)  interpreting information to assist in advertising decision-making 
C)  designing, executing, and interpreting primary research studies 
D)  disseminating information to agency account planners 
A)  planning the creative and media strategies for the advertising campaign 
B)  interpreting information to assist in advertising decision-making 
C)  designing, executing, and interpreting primary research studies 
D)  disseminating information to agency account planners

Question 12

Under the cost-plus compensation method, all of the following costs might be included in the calculation, EXCEPT:

Accepted Answer

A)  out-of-pocket expenses 
B)  media costs 
C)  agency self-promotion costs 
D)  profit margin 
A)  out-of-pocket expenses 
B)  media costs 
C)  agency self-promotion costs 
D)  profit margin

Question 13

The traditional method of compensating ad agencies is with:

Accepted Answer

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

Question 14

The standard agency commission is:

Accepted Answer

A)  added on to the agency's media costs and personnel time 
B)  15% of media time and space costs 
C)  15% added on to media time and space costs 
D)  a complex formula based on the type of media purchased 
A)  added on to the agency's media costs and personnel time 
B)  15% of media time and space costs 
C)  15% added on to media time and space costs 
D)  a complex formula based on the type of media purchased

Question 15

The Bright Ideas advertising agency handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. The agency is using which organizational structure?

Accepted Answer

A)  group system 
B)  dedicated system 
C)  departmental system 
D)  matrix system 
A)  group system 
B)  dedicated system 
C)  departmental system 
D)  matrix system

Question 16

A major reason why some companies choose to use an in-house agency is to:

Accepted Answer

A)  reduce advertising and promotions costs 
B)  better understand how advertising works 
C)  maintain creative freshness 
D)  win advertising awards that will enhance the image of their brands 
A)  reduce advertising and promotions costs 
B)  better understand how advertising works 
C)  maintain creative freshness 
D)  win advertising awards that will enhance the image of their brands

Question 17

The __________is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards.

Accepted Answer

A)  product management department 
B)  account executive 
C)  copywriter 
D)  art director, graphic designer, or studio artist 
A)  product management department 
B)  account executive 
C)  copywriter 
D)  art director, graphic designer, or studio artist

Question 18

Which of the following results were found in a U.S. survey on agency-client relationships?

Accepted Answer

A)  Agencies and clients tend not to trust one another, as profits seem to guide promotional planning. 
B)  Clients should not be overly focused on creative strength when making an agency selection. 
C)  Stronger results were more often delivered in dynamic, short-term situations than in long-term relationships. 
D)  Results would be improved through better briefings from clients and a more thorough agency understanding of the client's business and situation. 
A)  Agencies and clients tend not to trust one another, as profits seem to guide promotional planning. 
B)  Clients should not be overly focused on creative strength when making an agency selection. 
C)  Stronger results were more often delivered in dynamic, short-term situations than in long-term relationships. 
D)  Results would be improved through better briefings from clients and a more thorough agency understanding of the client's business and situation.

Question 19

Why would General Motors switch to an incentive-based compensation system with several of its agencies?

Accepted Answer

A)  to encourage their agencies to use more mass media advertising 
B)  to save money on advertising and divert it to other business departments 
C)  to encourage its agencies to look beyond traditional mass media advertising and develop other ways of reaching consumers 
D)  to encourage their agencies to stop using network TV advertising 
A)  to encourage their agencies to use more mass media advertising 
B)  to save money on advertising and divert it to other business departments 
C)  to encourage its agencies to look beyond traditional mass media advertising and develop other ways of reaching consumers 
D)  to encourage their agencies to stop using network TV advertising

Question 20

A major argument put forth by defenders of the commission system is that a commission:

Accepted Answer

A)  keeps emphasis when choosing agencies on non-price factors like advertising quality 
B)  encourages agencies to use non-commissionable media such as direct mail 
C)  ties agency compensation to the inflation in media costs 
D)  keeps the agencies from placing advertising in expensive media 
A)  keeps emphasis when choosing agencies on non-price factors like advertising quality 
B)  encourages agencies to use non-commissionable media such as direct mail 
C)  ties agency compensation to the inflation in media costs 
D)  keeps the agencies from placing advertising in expensive media

Because____________purchase such large amounts of time and space, they receive large discounts.

Target's internal creative department handles the design of each of these elements EXCEPT:

The four behavioural objectives that are measures of marketing communication effectiveness are intent to purchase, trial, repeat purchase, and __________.

Companies who use a combination of in-house and outside agencies tend to use the external firms mostly for:

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

Which of the following is NOT a measure of marketing communication effectiveness?

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

The ____________department coordinates all phases of production to see that the ads are completed on time.

Which of the following statements about changes in the way advertising agencies are being compensated is true?

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.

Which of the following functions is NOT performed by the agency's research department?

Under the cost-plus compensation method, all of the following costs might be included in the calculation, EXCEPT:

The traditional method of compensating ad agencies is with:

The standard agency commission is:

The Bright Ideas advertising agency handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. The agency is using which organizational structure?

A major reason why some companies choose to use an in-house agency is to:

The __________is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards.

Which of the following results were found in a U.S. survey on agency-client relationships?

Why would General Motors switch to an incentive-based compensation system with several of its agencies?

A major argument put forth by defenders of the commission system is that a commission:

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

Because____________purchase such large amounts of time and space, they receive large discounts.

Target's internal creative department handles the design of each of these elements EXCEPT:

The four behavioural objectives that are measures of marketing communication effectiveness are intent to purchase, trial, repeat purchase, and __________.

Companies who use a combination of in-house and outside agencies tend to use the external firms mostly for:

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

Which of the following is NOT a measure of marketing communication effectiveness?

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

The ____________department coordinates all phases of production to see that the ads are completed on time.

Which of the following statements about changes in the way advertising agencies are being compensated is true?

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.

Which of the following functions is NOT performed by the agency's research department?

Under the cost-plus compensation method, all of the following costs might be included in the calculation, EXCEPT:

The traditional method of compensating ad agencies is with:

The standard agency commission is:

The Bright Ideas advertising agency handles each of its clients by assigning individuals from various departments to work together as a team on their accounts. The agency is using which organizational structure?

A major reason why some companies choose to use an in-house agency is to:

The __________is responsible for creating the visual portion of an ad such as layouts and the commercial storyboards.

Which of the following results were found in a U.S. survey on agency-client relationships?

Why would General Motors switch to an incentive-based compensation system with several of its agencies?

A major argument put forth by defenders of the commission system is that a commission:

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