Question 1

Account management provides the mechanism to link the agency with the client.

Accepted Answer

A) True 
 B)False  True

Question 2

The difference between advertising and public relations is that,for advertising,media exposure is paid for by the advertiser,and for public relations it is not.

Accepted Answer

A) True 
 B)False  True

Question 3

In finance terms,by making a brand more valuable,advertising generates incremental ______.

Accepted Answer

A)  elasticity 
B)  equity 
C)  discounted cash flow 
D)  primary demand 
E)  secondary demand 
A)  elasticity 
B)  equity 
C)  discounted cash flow 
D)  primary demand 
E)  secondary demand C

Question 4

Which of the following is consistent with the advertising = information approach to advertising's role in the economy?

Accepted Answer

A)  Consumers perceive fewer substitutes for advertised brands. 
B)  Advertising affects consumer preferences and tastes. 
C)  Advertising changes product attributes. 
D)  Firms are insulated from potential rivals. 
E)  Advertising makes entry possible for new brands by communicating product attributes to consumers. 
A)  Consumers perceive fewer substitutes for advertised brands. 
B)  Advertising affects consumer preferences and tastes. 
C)  Advertising changes product attributes. 
D)  Firms are insulated from potential rivals. 
E)  Advertising makes entry possible for new brands by communicating product attributes to consumers.

Question 5

One function of advertising is to increase brand salience,which means enriching the memory trace for a brand such that the brand comes to mind in relevant choice situations.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a form of advertising agency compensation?

Accepted Answer

A)  commissions from media 
B)  labor-based fee system 
C)  outcome-based programs 
D)  a and b only 
E)  a, b, and c 
A)  commissions from media 
B)  labor-based fee system 
C)  outcome-based programs 
D)  a and b only 
E)  a, b, and c

Question 7

Advertising that teaches new uses for existing brands is known as _____.

Accepted Answer

A)  elaboration advertising 
B)  top-of-mind awareness advertising 
C)  primary demand advertising 
D)  usage expansion advertising 
E)  alternative use advertising 
A)  elaboration advertising 
B)  top-of-mind awareness advertising 
C)  primary demand advertising 
D)  usage expansion advertising 
E)  alternative use advertising

Question 8

The case for investing in advertising is based on the belief that it can increase profitability and thus increase revenue beyond the incremental advertising expense by _____.

Accepted Answer

A)  increasing sales volume 
B)  enabling higher selling prices 
C)  reducing promotion costs 
D)  a and b only 
E)  a, b, and c 
A)  increasing sales volume 
B)  enabling higher selling prices 
C)  reducing promotion costs 
D)  a and b only 
E)  a, b, and c

Question 9

____ are responsible for developing overall media strategy.

Accepted Answer

A)  Account executives 
B)  Account planners 
C)  Media planners 
D)  Media buyers 
E)  Media directors 
A)  Account executives 
B)  Account planners 
C)  Media planners 
D)  Media buyers 
E)  Media directors

Question 10

Elasticity is a measure of how responsive quantity demanded is to changes in marketing variables such as price and advertising.

Accepted Answer

A) True 
 B)False

Question 11

Addilson is responsible for developing the overall media strategy for his agency's clients.Addilson is a(n)____.

Accepted Answer

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

Question 12

Which of the following is an example of an advertisement that was designed to create primary demand?

Accepted Answer

A)  "Weekends were made for Michelob." 
B)  "Orange juice isn't just for breakfast anymore." 
C)  "Like a good neighbor, State Farm is there." 
D)  "You're in good hands with Allstate." 
E)  "Gillette: the best a man can get." 
A)  "Weekends were made for Michelob." 
B)  "Orange juice isn't just for breakfast anymore." 
C)  "Like a good neighbor, State Farm is there." 
D)  "You're in good hands with Allstate." 
E)  "Gillette: the best a man can get."

Question 13

Advertising has not been demonstrated to influence brand switching.

Accepted Answer

A) True 
 B)False

Question 14

Most successful companies are aware that consistent investment spending is the key factor underlying successful advertising.

Accepted Answer

A) True 
 B)False

Question 15

The _____ says that sales volume,or quantity,typically increases when prices are reduced,and vice versa.

Accepted Answer

A)  elasticity model 
B)  sales-price curve 
C)  law of inverse demand 
D)  converse sales law 
E)  sales demand equation 
A)  elasticity model 
B)  sales-price curve 
C)  law of inverse demand 
D)  converse sales law 
E)  sales demand equation

Question 16

Sam works for a full-service advertising agency.His job includes studying the buying habits of clients' customers,their purchase preferences,and their responsiveness to advertising concepts and finished ads.Sam most likely works in _____.

Accepted Answer

A)  account management 
B)  media services 
C)  research services 
D)  the creative department 
E)  sponsorship management 
A)  account management 
B)  media services 
C)  research services 
D)  the creative department 
E)  sponsorship management

Question 17

____ procure specific vehicles within particular media that have been selected for an agency's clients.

Accepted Answer

A)  Account executives 
B)  Account planners 
C)  Media planners 
D)  Media buyers 
E)  Media directors 
A)  Account executives 
B)  Account planners 
C)  Media planners 
D)  Media buyers 
E)  Media directors

Question 18

Research specialists in full-service advertising agencies are sometimes referred to as ______.

Accepted Answer

A)  media buyers 
B)  account executives 
C)  media planers 
D)  account managers 
E)  account planners 
A)  media buyers 
B)  account executives 
C)  media planers 
D)  account managers 
E)  account planners

Question 19

A price elasticity coefficient of 0.15 indicates that a one percent increase in ad expenditures increases volume by 15 percent.

Accepted Answer

A) True 
 B)False

Question 20

A full-service advertising agency _____.

Accepted Answer

A)  necessitates employing an advertising staff and absorbing the overhead required to maintain the staff's operations 
B)  is unprofitable unless a company does a large and continuous amount of advertising 
C)  has the advantage of complete control over the advertising function 
D)  performs all the basic functions of advertising for a client 
E)  does not perform other marcom functions, such as sales promotion and publicity 
A)  necessitates employing an advertising staff and absorbing the overhead required to maintain the staff's operations 
B)  is unprofitable unless a company does a large and continuous amount of advertising 
C)  has the advantage of complete control over the advertising function 
D)  performs all the basic functions of advertising for a client 
E)  does not perform other marcom functions, such as sales promotion and publicity

Exam 9: An Overview of Advertising Management

Account management provides the mechanism to link the agency with the client.

The difference between advertising and public relations is that,for advertising,media exposure is paid for by the advertiser,and for public relations it is not.

In finance terms,by making a brand more valuable,advertising generates incremental ______.

Which of the following is consistent with the advertising = information approach to advertising's role in the economy?

One function of advertising is to increase brand salience,which means enriching the memory trace for a brand such that the brand comes to mind in relevant choice situations.

Which of the following is a form of advertising agency compensation?

Advertising that teaches new uses for existing brands is known as _____.

The case for investing in advertising is based on the belief that it can increase profitability and thus increase revenue beyond the incremental advertising expense by _____.

____ are responsible for developing overall media strategy.

Elasticity is a measure of how responsive quantity demanded is to changes in marketing variables such as price and advertising.

Addilson is responsible for developing the overall media strategy for his agency's clients.Addilson is a(n)____.

Which of the following is an example of an advertisement that was designed to create primary demand?

Advertising has not been demonstrated to influence brand switching.

Most successful companies are aware that consistent investment spending is the key factor underlying successful advertising.

The _____ says that sales volume,or quantity,typically increases when prices are reduced,and vice versa.

Sam works for a full-service advertising agency.His job includes studying the buying habits of clients' customers,their purchase preferences,and their responsiveness to advertising concepts and finished ads.Sam most likely works in _____.

____ procure specific vehicles within particular media that have been selected for an agency's clients.

Research specialists in full-service advertising agencies are sometimes referred to as ______.

A price elasticity coefficient of 0.15 indicates that a one percent increase in ad expenditures increases volume by 15 percent.

A full-service advertising agency _____.

An Overview of Integrated Marketing Communications

Enhancing Brand Equity and Accountability

Brand Adoption, Brand Naming and Intellectual Property Issues

Environmental, Regulatory and Ethical Issues

Segmentation, Targeting, and Positioning

The Communications Process and Consumer Behavior

The Role of Persuasion in IMC

Imc Objective Setting and Budgeting

Effective and Creative Ad Messages

Endorsers and Message Appeals in Advertising

Traditional Ad Media

Digital Media: Online, Mobile and App Advertising

Social Media

Direct Marketing, CRM, and Other Media

Media Planning and Analysis

Measuring Ad Message Effectiveness

Sales Promotion Overview and the Role of Trade Promotion

Consumer Sales Promotion: Sampling and Couponing

Consumer Sales Promotion: Premiums and Other Promotions

Public Relations, Content Marketing, Viral Marketing, and Sponsorships

Packaging, Pop Communications, and Signage

Personal Selling

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