Question 1

Opponents of the agency commission system would argue that this system is not effective because a commission:

Accepted Answer

A)  keeps the emphasis on creative skills not the bottom-line. 
B)  encourages agencies to recommend high media expenditures to increase their commission level. 
C)  encourages agencies to limit their client's advertising expenditures. 
D)  does not tie agency compensation to media costs. 
A)  keeps the emphasis on creative skills not the bottom-line. 
B)  encourages agencies to recommend high media expenditures to increase their commission level. 
C)  encourages agencies to limit their client's advertising expenditures. 
D)  does not tie agency compensation to media costs. B

Question 2

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

Accepted Answer

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

Question 3

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

Accepted Answer

A)  Many agencies and their clients have developed some type of fee arrangement or cost-plus agreement for agency compensation. 
B)  With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation. 
C)  From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. 
D)  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. 
A)  Many agencies and their clients have developed some type of fee arrangement or cost-plus agreement for agency compensation. 
B)  With the move toward integrated marketing services, it is likely that there will be a return to the commission system of compensation. 
C)  From the viewpoints of both the client and the agency, the traditional commission system is much superior to negotiated commissions. 
D)  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. A

Question 4

The standard agency commission is:

Accepted Answer

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

Question 5

Which of the following is assigned to Target's outside agencies?

Accepted Answer

A)  weekly circulars and in-store displays 
B)  branding and image-oriented communication 
C)  direct-mail pieces 
D)  promotions 
A)  weekly circulars and in-store displays 
B)  branding and image-oriented communication 
C)  direct-mail pieces 
D)  promotions

Question 6

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

Question 7

Many full-service agencies include sales promotion,merchandising,direct marketing,PR and/or other _______.

Accepted Answer

A)  specialized services 
B)  niche opportunities 
C)  consumer needs 
D)  organizational structures 
A)  specialized services 
B)  niche opportunities 
C)  consumer needs 
D)  organizational structures

Question 8

One area where Canadian agencies have worked with creative boutiques is the development of messages targeted to _______.

Accepted Answer

A)  affluent markets 
B)  innovators 
C)  ethnic markets 
D)  difficult customers 
A)  affluent markets 
B)  innovators 
C)  ethnic markets 
D)  difficult customers

Question 9

Critics argue that the use of ________ ties agency compensation to media costs.

Accepted Answer

A)  the objective-and-task compensation system 
B)  the fixed fee arrangement 
C)  the cost-plus agreement 
D)  the commission system 
A)  the objective-and-task compensation system 
B)  the fixed fee arrangement 
C)  the cost-plus agreement 
D)  the commission system

Question 10

Agency compensation under the commission system is based on:

Accepted Answer

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

Question 11

The agency person who is the focal point of the agency-client relationship is the:

Accepted Answer

A)  media buyer 
B)  product manager 
C)  account executive 
D)  brand manager 
A)  media buyer 
B)  product manager 
C)  account executive 
D)  brand manager

Question 12

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

Question 13

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

Accepted Answer

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

Question 14

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

Question 15

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

Accepted Answer

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

Question 16

Which of the following results were found in a series of interviews on agency-client relationships with executives from major Canadian marketers?

Accepted Answer

A)  The agency and client should maintain an arm's length separation so as not to influence the creative process. 
B)  Marketers believe they can help agencies in the relationship by being better clients through clear decision-making and solid marketing research. 
C)  Clients should not share sensitive and confidential information with the agency in case the relationship sours. 
D)  Stronger results were more often delivered by full-service agencies than by smaller boutique firms. 
A)  The agency and client should maintain an arm's length separation so as not to influence the creative process. 
B)  Marketers believe they can help agencies in the relationship by being better clients through clear decision-making and solid marketing research. 
C)  Clients should not share sensitive and confidential information with the agency in case the relationship sours. 
D)  Stronger results were more often delivered by full-service agencies than by smaller boutique firms.

Question 17

Which of the following is NOT a reason why an advertising agency might 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)  ensure continuity in servicing a particular account 
C)  provide better pricing to a key client 
D)  to provide superior service for its accounts 
A)  allow agency personnel to become very knowledgeable about a particular client's market and business 
B)  ensure continuity in servicing a particular account 
C)  provide better pricing to a key client 
D)  to provide superior service for its accounts

Question 18

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

Accepted Answer

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

Question 19

Since most of the client's ad budget is spent on media time and/or space,it is important that the media department:

Accepted Answer

A)  coordinates with the creative department to ensure that concepts are not too complex 
B)  focuses on purchasing commercial time on the most popular shows 
C)  develops a plan that communicates to the right audience in a cost-efficient manner 
D)  creates a plan that utilizes the least expensive media vehicles 
A)  coordinates with the creative department to ensure that concepts are not too complex 
B)  focuses on purchasing commercial time on the most popular shows 
C)  develops a plan that communicates to the right audience in a cost-efficient manner 
D)  creates a plan that utilizes the least expensive media vehicles

Question 20

Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers,engravers,photographers,or other vendors to turn a layout into a finished product?

Accepted Answer

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

Opponents of the agency commission system would argue that this system is not effective because a commission:

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

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

The standard agency commission is:

Which of the following is assigned to Target's outside agencies?

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

Many full-service agencies include sales promotion,merchandising,direct marketing,PR and/or other _______.

One area where Canadian agencies have worked with creative boutiques is the development of messages targeted to _______.

Critics argue that the use of ________ ties agency compensation to media costs.

Agency compensation under the commission system is based on:

The agency person who is the focal point of the agency-client relationship is the:

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

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

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

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

Which of the following results were found in a series of interviews on agency-client relationships with executives from major Canadian marketers?

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

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

Since most of the client's ad budget is spent on media time and/or space,it is important that the media department:

Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers,engravers,photographers,or other vendors to turn a layout into a finished product?

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

Opponents of the agency commission system would argue that this system is not effective because a commission:

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

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

The standard agency commission is:

Which of the following is assigned to Target's outside agencies?

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

Many full-service agencies include sales promotion,merchandising,direct marketing,PR and/or other _______.

One area where Canadian agencies have worked with creative boutiques is the development of messages targeted to _______.

Critics argue that the use of ________ ties agency compensation to media costs.

Agency compensation under the commission system is based on:

The agency person who is the focal point of the agency-client relationship is the:

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

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

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

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

Which of the following results were found in a series of interviews on agency-client relationships with executives from major Canadian marketers?

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

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

Since most of the client's ad budget is spent on media time and/or space,it is important that the media department:

Which department within an advertising agency would assume the responsibility for hiring outside persons such as printers,engravers,photographers,or other vendors to turn a layout into a finished product?

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