Deck 4: The Scope of Advertising

Question 1

A chain store may maintain a completely staffed advertising department consisting of artists,copywriters,and production specialists to handle production,media placement,and marketing support services.

Answer 1

True

Question 2

Advertisers are the companies that sponsor advertising for themselves and their products.

Answer 2

True

Question 3

Due to similarities in their focus and perspective,national and local advertisers use similar time orientation.

Answer 3

False

Question 4

One of the distinct groups in the advertising business is the suppliers who assist the advertiser to plan,create,and prepare ad campaigns.

Question 5

Nonprofit organizations like charities and arts organizations are types of local advertisers.

Question 6

The duty of the traffic department is to make sure that all members of the product's distribution channel maintain product/brand image.

Question 7

Local advertising is sometimes called retail advertising.

Question 8

The account planner defends the consumer's point of view and the creative strategy in the debate between the agency's creative team and the client.

Question 9

The three types of local advertising are clearance,product,and classified.

Question 10

The basic principles of advertising are the same in both local and national advertising.

Question 11

One of the primary differences between national and local advertisers is that local advertisers plan strategically,and national advertisers think tactically.

Question 12

Local newspapers typically allow all advertisers a commission.

Question 13

In a decentralized advertising system,the company sets up separate ad departments for different divisions,subsidiaries,regions,brands,or other categories that suit the company's needs.

Question 14

Multinational companies that use a customized approach to marketing and advertising in all countries are considered global marketers.

Question 15

Copywriters must condense all that can be said about a product into a few pertinent,succinct points.

Question 16

Creative boutiques work for advertisers and occasionally subcontract to ad agencies.

Question 17

Some of the nonadvertising services performed by full-service agencies are performing research,selecting media,designing packages,and producing sales promotions.

Question 18

Advertising agencies work for the media.

Question 19

One of the primary purposes of co-op advertising is to improve consumer perception of retailing.

Question 20

One of the ways to organize a centralized advertising department is by the type of advertising it will need to create to support the advertiser's mission.

Question 21

Which of the following is NOT a type of local advertiser?

A) Dealers or local franchisees of national companies that specialize in one main product line or service.
B) Stores that sell a variety of branded merchandise like department stores.
C) National companies that design their strategies and campaigns to appeal to various demographic or psychographic groups.
D) Specialty businesses and services such as banks.
E) Governmental, quasi-governmental, and nonprofit organizations such as utility companies and charities.

Question 22

Advertisers use _____ advertising in the newspaper to locate and recruit new employees,to offer services,or to sell or lease new and used merchandise.

A) classified
B) product
C) regular price-line
D) institutional
E) clearance

Question 23

In the latter half of 2005,a petroleum company ran a series of commercials in which they asked consumers how they could improve and preserve the natural environment.After each individual's responses,an announcer explained how the company was doing more than its share to protect the environment.These commercials were examples of _____ advertising.

A) interactive
B) generic
C) product
D) organizational
E) institutional

Question 24

A speculative presentation allows an advertiser to see what the agency can do for it before signing any contractual agreement.

Question 25

Retailers use television,catalogs,the Internet,and magazines to transmit their advertising message to consumers.In terms of the four distinct groups around which advertising is organized,retailers use:

A) nonpersuasive method.
B) media.
C) message handlers.
D) personal selling.
E) advertisers.

Question 26

The biggest problem for in-house agencies is that they do not usually perform all the tasks of independent full-service agencies.

Question 27

Advertising is organized around four distinct groups.The _____ group includes the photographers,the illustrators,video production houses,and digital service bureaus.

A) encoders
B) support staff
C) account personnel
D) suppliers
E) creators

Question 28

Which of the following statements about local advertising is true?

A) Local advertising and retail advertising are synonymous.
B) Franchisees of national companies do not engage in local advertising.
C) Local advertising is critically important because most consumer sales are made or lost locally.
D) There are only two categories of local advertisers.
E) Ninety percent of the money advertisers spend each year is spent on local advertising.

Question 29

Which of the following groups sell time and space to carry the advertiser's message to the target audience?

A) Advertisers
B) Agencies
C) Suppliers
D) Media
E) Art studios

Question 30

The three primary types of ads placed in local media are product,classified,and:

A) service.
B) retail.
C) governmental.
D) specialized.
E) institutional.

Question 31

The four distinct stages of the life cycle of the agency/client relationship are prerelationship,development,maintenance,and termination.

Question 32

A hardware store mails an advertising flyer to all the residents in the its community.This is an example of _____ advertising.

A) local
B) institutional
C) interactive
D) interregional
E) dealer

Question 33

The advertising business has evolved into four distinct groups.Which of the following is NOT one of these groups?

A) Media
B) Customers
C) Advertising agencies
D) Suppliers
E) Advertisers

Question 34

Most firms do not maintain a fully staffed research department.Instead,they use independent research companies or consultants.

Question 35

_____ advertising attempts to create a favorable long-term perception of the business as a whole,not just of a particular good or service.

A) Institutional
B) Interactive
C) Organizational
D) Product
E) Relationship

Question 36

Advertising is organized into four distinct groups.One of these groups is the advertisers.This group is often referred to as the:

A) senders.
B) encoders.
C) clients.
D) customers.
E) suppliers.

Question 37

The straight-fee method of pricing the services of an ad agency is also called the retainer method.

Question 38

Which of the following is an example of product advertising?

A) An ad for an electronics company explaining how to help the environment by recycling printer cartridges.
B) An ad for a credit card explaining how important small businesses are to national economic health.
C) An ad describing why you should buy certain cake mixes.
D) An ad announcing a store providing appliances for homes built by a nonprofit.
E) An ad for cosmetics announcing that it will donate $100,000 to charity.

Question 39

_____ advertising promotes a specific good or service and stimulates short-term action while building awareness of the business.

A) Interactive
B) For-profit
C) Product
D) Institutional
E) Agency

Question 40

During the first week of November,local pharmacies ran ads to announce they were selling all of their Halloween candy and decorations at half their original prices.How should you classify this ad?

A) As a regular price-line ad
B) As a classified ad
C) As an institutional ad
D) As a clearance ad
E) As a product ad

Question 41

As defined by the American Association of Advertising Agencies,a(n)_____ is an independent organization of creative people and businesspeople that specialize in developing and preparing advertising plans,advertising,and other promotional tools.

A) creative boutique
B) promotional facilitator
C) facilitating intermediary
D) advertising agency
E) advertising supplier

Question 42

According to the text,local advertisers and national advertisers differ in terms of:

A) credibility, autonomy, and sources.
B) ad penetration, focus, and resources.
C) focus, time orientation, and resources.
D) focus, promotional themes, and advertising vehicles.
E) credibility, relationships, and focus.

Question 43

A pool company,owned by Jill and Joel Hudson,sells and installs above-ground swimming pools and hot tubs.The manufacturer of the hot tub has sent the Hudson's a letter in which it offers to pay 60 percent of the advertising cost if the Hudson's will run a newspaper ad featuring the hot tubs.What type of advertising is the hot tub manufacturer suggesting to the Hudson's?

A) Vertical cooperative advertising
B) Professional advertising
C) Relationship advertising
D) Horizontal advertising
E) Institutional advertising

Question 44

Assume that a clothing company sends a ready-made advertisement to a regional magazine published in Alabama,and the magazine publisher inserts the name,address,and phone number of a local department store chain that carries the bed linens,glassware,and dinnerware into the ad.The clothing company pays 75 percent of the cost of running the ad.The department store pays the other 25 percent.This is an example of:

A) cooperative advertising.
B) horizontal advertising.
C) trade advertising.
D) clearance advertising.
E) product advertising.

Question 45

What advantage is associated with the use of an independent advertising agency?

A) Saving money by cutting overhead and keeping the media commission.
B) Better involvement of management especially in "single-business" companies.
C) More complete control over all channels of distribution.
D) An outside, objective viewpoint to the advertiser's business.
E) Reduced variable expenses.

Question 46

Until recently,a French cosmetics manufacturer,has used uniform international advertising campaigns that were all controlled by the company's advertising department in France.The company's concern with cost efficiency and continuity in their communications programs indicate that the company used a _____ organization.

A) territorial
B) decentralized
C) transnational
D) matrix
E) centralized

Question 47

Jane Dunn operates a photography studio in Polk County.She is faced with many promotion and advertising decisions on a daily basis.For example,should she offer a family photo discount during November? Dunn's advertising focus is on _____ because of its short-term nature.

A) strategy
B) tactics
C) narrowcasting
D) broadcasting
E) relationships

Question 48

Possibly,the greatest difference between national and local advertisers is how they:

A) focus on sales.
B) use cooperative advertising.
C) act proactively.
D) emphasize feedback.
E) relate to their customers.

Question 49

One of the disadvantages for a company that uses a decentralized advertising department is:

A) a focus on what is good for the department rather than what is good for the entire organization.
B) the absence of flexibility.
C) an inability to respond quickly to changes in the department's external environment.
D) an inability to accurately measure the impact of advertising on sales.
E) the difficulty in introducing new approaches and creative ideas.

Question 50

Organizations that use a standardized approach to marketing and advertising in all countries in which they do business are called:

A) foreign marketers.
B) national corporations.
C) global marketers.
D) international exporters.
E) transnational corporations.

Question 51

General consumer agencies:

A) provide advertising for products that are used in the manufacture of consumer products.
B) concentrate on institutional advertising accounts.
C) concentrate on consumer accounts.
D) derive much of their income from nonadvertising functions.
E) do not operate internationally.

Question 52

An advertising agency in Mexico City that represents a wide-range of consumer accounts.It distinguishes itself from other agencies because it depicts real Mexicans enjoying everyday life.It does not advertise in trade publications.From this information,you can surmise that the agency is a _____ agency.

A) business-to-business
B) specialized
C) general consumer
D) high-tech
E) creative boutique

Question 53

Centralized organizations may organize the centralized advertising department in all of the following ways EXCEPT:

A) by the method of fee payment.
B) by sub-functions of advertising.
C) by the end user.
D) by the media.
E) by the product or brand.

Question 54

As of January 2005,a super market chain operated 142 supermarkets in the New York-New Jersey and Philadelphia metropolitan areas.The chain only advertises in those states where it has stores.The form of advertising that best describes the chain's approach to advertising is:

A) institutional.
B) adjacency.
C) regional.
D) national.
E) local.

Question 55

A national manufacturer assisting a distributor in product promotion by providing direct mail flyers is an example of _____ advertising.

A) cooperative
B) regional
C) horizontal
D) subliminal
E) interactive

Question 56

Which of the following types of local advertising is most likely to be used by a franchise of a food chain store to recruit new employees?

A) Classified
B) Product
C) Sale
D) Institutional
E) Clearance

Question 57

The modern _____ advertising agency supplies both advertising and nonadvertising services in all areas of communications and promotion for its clients.

A) entrepreneurial
B) institutional
C) organizational
D) full-service
E) multi-tasking

Question 58

An advertising agency in Mexico City represents a wide-range of accounts.It depicts real Mexicans enjoying everyday life.The agency does not offer assistance to clients who want to reach international markets.From this information,you can surmise that the agency is a(n)_____ agency.

A) business-to-business
B) transnational
C) regional
D) in-house
E) creative boutique

Question 59

One of the advantages that a company has when it uses a decentralized advertising department is:

A) exceptionally good organizational communications flow.
B) lack of measurable responses.
C) less rivalry among brand managers.
D) increased divisional flexibility.
E) increased uniformity of ads.

Question 60

In a(an)_____,a company sets up separate ad departments for different divisions,subsidiaries,regions,brands,or other categories that suit the company's needs.

A) matrix system
B) pyramid system
C) organizational development scheme
D) decentralized system
E) managerial hierarchy

Question 61

Under the _____ method of agency compensation,the media channel may allow an ad agency to retain a 15 percent of the bill amount on the time and space purchased for clients.

A) fee
B) media commission
C) markup
D) incentive
E) depreciation

Question 62

Relationship marketing is defined in most marketing texts as the creation of customer loyalty through the establishment of a long-term win-win relationship between the buyer and seller.Which of the following terms MOST closely relates to relationship marketing?

A) Horizontal cooperative advertising
B) Account planning
C) Vertical cooperative advertising
D) Integrated promotions
E) Decentralized advertising

Question 63

If an agency were to buy an ad in a magazine for a company that sells customized fabric,the ad would cost $5,000.How much money would the agency send to the publication?

A) $4,850
B) $4,250
C) $5,000
D) $5,150
E) $5,750

Question 64

The words in an ad explained why a golfer should buy a certain brand of golf balls.These words are called the ad's:

A) copy.
B) media.
C) layout.
D) coding.
E) feedback.

Question 65

Which of the following is NOT true of creative boutiques?

A) Usually, the founders of a creative boutique are graphic designers and/or copywriters.
B) They occasionally subcontract to ad agencies.
C) Usually, they are independently owned and are relatively small in size.
D) They provide the same research, marketing, sales expertise, and deep customer service that full-services agencies offer.
E) They focus on developing exciting creative concepts.

Question 66

_____ must have the skill to condense all that can be said about a product into a few salient and pertinent points.

A) Account directors
B) Advertising supervisors
C) Copywriters
D) Communication specialists
E) Advertising planners

Question 67

All of the following are the examples of specialized service agencies EXCEPT:

A) media agency.
B) direct-response agency.
C) telemarketing agency.
D) creative boutique.
E) direct mail.

Question 68

Business-to-business advertising agencies charge their clients service fees because:

A) the standard agency commission does not cover agency costs.
B) business-to-business advertising is regulated by the Federal Trade Commission.
C) a fee system has a long historical pedigree.
D) the commission rate on industrial media is only 5 percent.
E) unlike a commission system, a fee system involves no negotiations at all.

Question 69

When an advertising agency purchased several hours of television time for its customers' commercials from a television station,the agency received 15 percent of the gross amount charged by the station.The 15 percent:

A) is a form of payment called a spiff.
B) is an amount paid to the advertiser as a negotiated fee.
C) is an incentive.
D) is called a slotting allowance.
E) is called a media commission.

Question 70

A(n)_____ is formed by talented artists who work for advertisers and occasionally subcontract to advertising agencies.Their mission is to develop exciting creative concepts and to produce fresh,distinctive advertising messages.

A) promotional facilitator
B) interactive agency
C) entrepreneurial agency
D) creative boutique
E) IMC agency

Question 71

An ad agency's _____ coordinates all phases of production and makes sure everything is completed before the client and/or media deadlines.

A) media department
B) coordination specialist
C) traffic department
D) communications manager
E) art director

Question 72

The _____ is in charge of the nonverbal communication portion of an ad.

A) account executive
B) advertising planner
C) media specialist
D) art director
E) communication specialist

Question 73

A media company buys unsold television and radio media and resells the time and space to advertisers and agencies.This company is an example of a(n):

A) entrepreneurial agency.
B) promotional facilitator.
C) creative boutique.
D) media-buying service.
E) promotional broker.

Question 74

Account executives are:

A) brokers of advertising services to small companies that have limited advertising budgets.
B) the liaisons between the agency and the client.
C) typically employed by non-profit organizations as fund raisers.
D) agents that handle multiple small noncompeting advertising accounts.
E) the sole media buyers at most large agencies.

Question 75

A company manufactures rivets used on heavily loaded conveyor belts which carry ore in underground and surface mining operations.This company would most likely hire a(n)_____ agency to create the company's advertising.

A) general consumer
B) intermediary
C) institutional
D) non-commissioned
E) business-to-business

Question 76

In the creative process,the _____ determines how the ad's verbal and visual symbols will fit together.

A) account executive
B) advertising planner
C) media specialist
D) art director
E) copywriter

Question 77

Account planning:

A) is a method used to benchmark competitors.
B) is a hybrid discipline that bridges the gap between the traditional agency research, account management, and creative departments.
C) does not include any consumer research.
D) is the reorganization of an advertiser for the purpose of improving its image.
E) is a service provided by creative boutiques, which allows the advertiser to choose generic ads that can be customized.

Question 78

A small Georgia agency buys a quarter-page ad in a golfing magazine for a travel agency that specializes in preparing all-inclusive,hassle-free golf travel packages,on a 15 percent commission basis.The ad cost them $300.How much money would the Georgia agency send to the publication?

A) $255
B) $285
C) $300
D) $315
E) $345

Question 79

A design company is a(n)_____ that designs Web pages and creates fun,involving,and informational online advertising.

A) interactive agency
B) entrepreneurial agency
C) creative boutique
D) promotional facilitator
E) public relation agency

Question 80

Medium and large advertising agencies are usually structured according to the:

A) account manager.
B) group or departmental system.
C) media availability.
D) designers and illustrators.
E) suppliers.