Question 1

During the _____ stage,the agency and the client are at the peak of their optimism and eager to develop a mutually profitable relationship.

Accepted Answer

A)  prerelationship 
B)  development 
C)  maintenance 
D)  termination 
E)  postrelationship

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Local advertising is also referred to as retail advertising.

Accepted Answer

A) True 
 B)False

Question 4

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 5

The _____ stage occurs before an agency and client officially do business.

Accepted Answer

A)  prerelationship 
B)  development 
C)  maintenance 
D)  termination 
E)  transitional

Question 6

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 7

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 8

Some media allow a commission on the higher rates they charge national advertisers but not on the lower rates they charge local advertisers.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

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

Question 11

The relationship with the customer is the greatest difference between national and local advertisers.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  a spiff. 
B)  a cooperative allowance. 
C)  an advertiser incentive. 
D)  a slotting allowance. 
E)  a media commission.

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

What is the greatest disadvantage associated with in-house ad agencies?

Accepted Answer

A)  Loss of revenues 
B)  Adherence to the organizational mission 
C)  Reluctant acknowledgement by the mass media 
D)  Loss of objectivity 
E)  Poor staff-line relationships

Question 19

Explain how the account planner acts as a "surrogate for the consumer."

Accepted Answer

The answer of Explain how the account planner acts as...

Question 20

Which of the following statements is true about account planning?

Accepted Answer

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

Exam 4: The Scope of Advertising: From Local to Global

During the _____ stage,the agency and the client are at the peak of their optimism and eager to develop a mutually profitable relationship.

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

Local advertising is also referred to as retail advertising.

Which of the following is not true of creative boutiques?

The _____ stage occurs before an agency and client officially do business.

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

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:

Some media allow a commission on the higher rates they charge national advertisers but not on the lower rates they charge local advertisers.

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

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.

The relationship with the customer is the greatest difference between national and local advertisers.

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

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

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

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

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

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

What is the greatest disadvantage associated with in-house ad agencies?

Explain how the account planner acts as a "surrogate for the consumer."

Which of the following statements is true about account planning?