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Briefly describe the three most successful tools that agencies use to develop new business.

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The three most successful ways to develo...

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The year-in,year-out,day-to-day working relationship is called the _____ stage.


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

F) None of the above
G) B) and E)

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In the advertising business,the suppliers assist the advertisers to plan,create,and prepare ad campaigns.

A) True
B) False

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Which are the two basic management structures that large advertisers tend to use?

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Most large advertisers tend to use the mix of two basic management structures: centralized and decentralized.

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

F) D) and E)
G) A) and E)

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Which of the following statements is true about general consumer agencies?


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

F) D) and E)
G) None of the above

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


A) Creative boutiques
B) Agencies
C) Suppliers
D) Media
E) Art studios

F) A) and C)
G) A) and B)

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Which of the following statements about local advertising is true?


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.

F) D) and E)
G) B) and C)

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C

Under the _____ method of agency compensation,the media channel allows an ad agency to retain 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

F) B) and D)
G) A) and C)

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The American Association of Advertising Agencies (AAAA) defines a(n) _____ as an independent organization of creative people and businesspeople who specialize in developing and preparing marketing and advertising plans,advertisements,and other promotional tools.


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

F) B) and E)
G) C) and D)

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The primary reason some advertisers set up a wholly owned in-house ad agency is to:


A) increase their overhead.
B) tighten control over their advertising.
C) stimulate external creative efforts on the part of the marketing staff.
D) meet the challenge of ad agencies and mass media with respect to creative incentives.
E) increase the percentage of the markup they earn.

F) B) and C)
G) A) and B)

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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.

A) True
B) False

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_____ 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

F) C) and D)
G) A) and E)

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

A) True
B) False

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What is the function of creative boutiques?

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Some talented artists-such as graphic de...

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The _____ media used to be known as the broadcast media.


A) electronic
B) digital interactive
C) social
D) print
E) out-of-home

F) None of the above
G) All of the above

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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

F) None of the above
G) A) and B)

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B

An ad agency may need to purchase photographs and illustrations from an outside supplier for its client.The agency pays the outside supplier a fee and adds a(n) _____,usually 17.65 percent,to the client's bill.


A) commission
B) markup
C) service charge
D) incentive
E) profit

F) B) and C)
G) B) and D)

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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.


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

F) C) and E)
G) D) and E)

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Advertising agencies work for the media.

A) True
B) False

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