Question 1

Which of the following is not true of creative boutiques?

Accepted Answer

A) Usually, the founders of a creative boutique are graphic designers and/or copywriters. 
B) They occasionally subcontract to ad agencies. 
C) They tend to be limited to the role of creative suppliers. 
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 2

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

Accepted Answer

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

Question 3

Which of the following statements about local advertising is true?

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

Local advertising is also referred to as retail advertising.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

In the advertising agency business, _____ are people and organizations that provide specialized services.

Accepted Answer

A) ad distributors 
B) media agencies 
C) advertising brokers 
D) suppliers 
E) ad intermediaries

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Medium and large advertising agencies are usually structured according to:

Accepted Answer

A) production and traffic units. 
B) group or departmental systems. 
C) media availability. 
D) designers and illustrators. 
E) advertisement suppliers.

Question 12

A petroleum company ran a series of commercials in which they asked consumers how they could improve and preserve the natural environment. After consumers responded to the ad, a spokesperson explained how the company was doing more than its share to protect the environment. These commercials are examples of _____ advertising.

Accepted Answer

A) subliminal 
B) generic 
C) product 
D) clearance 
E) institutional

Question 13

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 are using:

Accepted Answer

A) the suppliers. 
B) the media. 
C) message handlers. 
D) personal selling. 
E) the advertisers.

Question 14

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

Accepted Answer

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

List the three basic ways that national advertising differs from local advertising.

Accepted Answer

The answer of List the three basic ways that national...

Question 17

Which of the following statements implies that national and local advertisers have different time orientation?

Accepted Answer

A) National advertisers think in terms of large groups of people, whereas local advertisers deal with individual customers every day. 
B) National advertisers get occasional feedback, whereas local advertisers get feedback everyday. 
C) National advertisers focus on gross sales, whereas local advertisers primarily focus on market share. 
D) National advertisers typically focus on media with high point of contact, whereas local advertisers are more concerned with high frequency media. 
E) National advertisers develop five-year strategic plans, whereas local advertisers worry about weekly ads and its performances.

Question 18

In an ad, the words that make up the headline and message is known as the:

Accepted Answer

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

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) matrix system 
B) pyramid system 
C) centralized system 
D) decentralized system 
E) hierarchical system

Exam 4: The Scope of Advertising: From Local to Global Part Two: Crafting Marketing and Advertising Strategies

Which of the following is not true of creative boutiques?

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

Which of the following statements about local advertising is true?

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

Local advertising is also referred to as retail advertising.

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

In the advertising agency business, _____ are people and organizations that provide specialized services.

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

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

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

Medium and large advertising agencies are usually structured according to:

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 are using:

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

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

List the three basic ways that national advertising differs from local advertising.

Which of the following statements implies that national and local advertisers have different time orientation?

In an ad, the words that make up the headline and message is known as the:

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

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